Annual Management Report of Fund Performance For the Year Ended March 31, This Annual Management Report of Fund Performance contains financial highlights but does not contain the complete annual financial statements of the investment fund. You may obtain a copy of the annual financial statements, at no cost, by contacting us using one of the methods noted under Fund Formation and Series Information or by visiting the SEDAR website at www.sedar.com. Securityholders may also contact us using one of these methods to request a copy of the investment fund s interim financial report, proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure. Every effort has been made to ensure that the information contained in this report is accurate as of the dates indicated in the report; however, the Fund cannot guarantee the accuracy or the completeness of this material. For more information, please refer to the Fund s Simplified Prospectus, Annual Information Form and Fund Facts, which may also be obtained, at no cost, using any of the methods outlined above. For the Fund s current net asset values per security and for more recent information on general market events, please visit our website. A NOTE ON FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements that reflect our current expectations or forecasts of future events. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as expects, anticipates, intends, plans, believes, estimates, preliminary, typical and other similar expressions. In addition, these statements may relate to future corporate actions, future financial performance of a fund or a security and their future investment strategies and prospects. Forward-looking statements are inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual events, results, performance or prospects to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, the volatility of global equity and capital markets, business competition, technological change, changes in government regulations, changes in securities laws and regulations, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events and the ability of Mackenzie to attract or retain key employees. The foregoing list of important risks, uncertainties and assumptions is not exhaustive. Please consider these and other factors carefully and do not place undue reliance on forward-looking statements. The forward-looking information contained in this report is current only as of the date of this report. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.
Management Discussion of Fund Performance June 7, This Management Discussion of Fund Performance presents the portfolio management team s view on the significant factors and developments during the period ended March 31,, that have affected the Fund s performance and outlook. If the Fund was established during the period, period represents the period from inception to the end of the fiscal period. For information on the Fund s longer-term performance, as applicable, please refer to the Past Performance section of the report. In this report, Mackenzie refers to Mackenzie Financial Corporation, the manager of the Fund. In addition, net asset value ( NAV ) refers to the value of the Fund as calculated for transaction purposes, on which the discussion of Fund performance is based. Investment Objective and Strategies The Fund seeks long-term capital growth by investing mainly in Canadian equities. The Fund uses a value style of investing and may hold up to 30% of its assets in foreign investments. Risk The risks of the Fund remain as discussed in the Fund s Simplified Prospectus. The Fund is suitable for medium- to long-term investors looking for a Canadian equity fund to hold as part of their portfolio, who can handle the volatility of stock markets and who have a medium tolerance for risk. Results of Operations Investment Performance The performance of the Fund s Quadrus Series securities is discussed below. The performance of all series is shown in the Past Performance section of the report. Where series returns differ, it is primarily because different levels of fees and expenses were charged to each series, or because securities of a series were not issued and outstanding for the entire reporting period. Please refer to the Fund Formation and Series Information section of this report for the varying management and administration fees payable by each series. During the year, the Fund s Quadrus Series securities returned 1.9% (after deducting fees and expenses paid by the series). This compares with the S&P/TSX Composite Index return of 1.7%. All index and series returns are calculated on a total return basis in Canadian dollar terms. Investors cannot invest in the index without incurring fees, expenses and commissions, which are not reflected in the index returns. Canadian equity markets were up slightly despite continued weak economic growth as measured by gross domestic product. Challenges included concerns about the renegotiation of the North American Free Trade Agreement and uncertainty regarding future policy rate increases by the Bank of Canada, which raised rates three times during the year. Although the West Texas Intermediate crude oil price ended the year higher, overall sentiment toward energy equities remained poor and their prices declined. Within the S&P/TSX Composite Index, health care, information technology and consumer discretionary were the strongest sectors, while energy, materials and utilities were the weakest. The Fund performed in line with the index. An underweight position and stock selection in the materials sector contributed to performance, as did an overweight position and stock selection in the consumer discretionary sector. Conversely, stock selection in the information technology and utilities sectors detracted, as did an underweight position in industrials and lack of exposure to health care. Over the year, portfolio activity and market effect resulted in increased exposure to Canada and the elimination of exposure to the United States. At the sector level, exposure to information technology increased. Net Assets The Fund s NAV increased by 1.8% to $250.3 million at March 31,, from $245.8 million at March 31,. This change was composed primarily of $8.9 million in net income (including dividend and interest income) from investment performance, after deducting fees and expenses, $2.7 million in net redemptions, and $1.8 million in cash distributions. See Other Related Party Transactions for the percentage of the Fund s NAV owned by affiliates of Mackenzie and funds managed by Mackenzie. As a result of these investments, the Fund is subject to large transaction risk as discussed in the Prospectus. Mackenzie manages this risk to reduce the possibility of any adverse effect on the Fund or on its investors. Fees and Expenses The management expense ratio ( MER ) for Quadrus Series of 2.57% during the year ended March 31,, was slightly lower than the MER of 2.58% for the year ended March 31,. The MERs (before and after waivers or absorptions, if any) for each series are presented in the Financial Highlights section of this report. Recent Developments Despite perceptions that real estate, utilities, pipelines and telecommunication services are defensive areas of the market, the portfolio management team believes these areas have proven otherwise. For example, certain pipeline companies have lost material value due to high debt levels and the negative impact of U.S. tax reform on their U.S. assets. The Fund therefore has underweight positions in these areas. The team looks for attractively valued, high-quality companies with sustainable earnings, good balance sheets and growing dividends. In the team s opinion, the Fund s holdings may outperform over the longer term with respect to earnings growth, free cash flow generation and capital allocation.
Related Party Transactions The following arrangements result in fees paid by the Fund to Mackenzie or to companies affiliated with the Fund. Management and Administration Services For each applicable series, the Fund paid management fees and administration fees to Mackenzie at the annual rates specified under Fund Formation and Series Information in this report and as more fully described in the Prospectus. In return for the administration fees, Mackenzie pays all costs and expenses (other than certain specified fund costs) required to operate the Fund that are not otherwise included in management fees. See also Management Fees. Other Related Party Transactions Mackenzie is wholly owned by IGM Financial Inc. ( IGM ). IGM is a subsidiary of Power Financial Corp., which in turn is a subsidiary of Power Corp. of Canada. Companies related to Power Financial Corp. are therefore considered affiliates of Mackenzie. At March 31,, the Fund held the following investment(s) in companies affiliated with Mackenzie: $6.2 million invested in securities issued by Power Corp. of Canada and $6.6 million invested in securities issued by Great-West Lifeco Inc. The investment(s) represented 5.1% of the Fund s NAV. In making the investment(s), Mackenzie relied on the approval of the Mackenzie Funds Independent Review Committee. The Independent Review Committee issued the approval on the basis that the investment(s) would be made in compliance with Mackenzie s policies. Mackenzie s policies are designed to ensure that the related party transaction (i) is made free from any influence by an entity related to Mackenzie and without taking into account any considerations relevant to an entity related to Mackenzie; (ii) represents the business judgment of Mackenzie, uninfluenced by considerations other than the best interests of the Fund; and (iii) achieves a fair and reasonable result for the Fund. Investment funds managed by Mackenzie invest in Series R securities of the Fund on a prospectus-exempt basis in accordance with the investment objectives of those funds. At March 31,, funds managed by Mackenzie owned 32.1% of the Fund s NAV. All related party transactions are based on the NAV per security on each transaction day. At March 31,, London Life Insurance Company, an affiliate of Mackenzie, had an investment of $5,732 in the Fund (less than 0.1% of the Fund s NAV). Past Performance The Fund s past performance information is presented in the following charts and table. It assumes all distributions made by the Fund in the periods presented are reinvested in additional securities of the relevant series of the Fund. The charts and table do not take into account sales, redemption, distribution or optional charges, or income taxes payable by any investor that would have reduced returns. The past performance of the Fund is not necessarily an indication of how it will perform in the future. If you hold this Fund outside of a registered plan, income and capital gains distributions paid to you increase your income for tax purposes whether paid to you in cash or reinvested in additional securities of the Fund. The amount of reinvested taxable distributions is added to the adjusted cost base of the securities that you own. This would decrease your capital gain or increase your capital loss when you later redeem from the Fund, thereby ensuring that you are not taxed on this amount again. Please consult your tax adviser regarding your personal tax situation. Year-by-Year Returns The following bar charts present the performance of each series of the Fund for each of the fiscal periods shown. The charts show, in percentage terms, how much an investment made on the first day of each fiscal period, or on the series inception or reinstatement date, as applicable, would have increased or decreased by the last day of the fiscal period presented. Series inception or reinstatement dates can be found under Fund Formation and Series Information.
Annual Compound Returns The following table compares the historical annual compound total returns for each series of the Fund with the relevant index or indices shown below for each of the periods ended March 31,. Investors cannot invest in an index without incurring fees, expenses and commissions, which are not reflected in these performance figures. All index returns are calculated in Canadian dollars on a total return basis, meaning that all distributions are reinvested. Percentage Return: 1 1 Yr 3 Yr 5 Yr 10 Yr Since Inception 2 Quadrus Series 1.9 3.8 5.5 3.7 n/a H Series 3.0 5.0 6.7 4.9 n/a H5 Series 3.1 n/a n/a n/a 17.5 H8 Series 3.1 5.0 n/a n/a 6.7 L Series 2.2 4.2 5.8 n/a 6.4 L5 Series 2.2 4.2 5.9 n/a 5.9 L8 Series 2.2 n/a n/a n/a 7.9 N Series 4.5 6.5 8.2 n/a 9.6 N5 Series 4.5 6.5 8.2 n/a 8.6 N8 Series 4.5 6.5 8.2 n/a 9.1 D5 Series 1.8 3.7 5.4 n/a 4.0 D8 Series 1.8 3.8 5.4 n/a 4.0 QF Series 3.0 n/a n/a n/a 9.9 QF5 Series 3.0 n/a n/a n/a 9.9 Series R 4.5 6.5 8.2 6.4 n/a S&P/TSX Composite Index 1.7 4.1 6.9 4.5 Note 3 The S&P/TSX Composite Index is a capitalization weighted index that represents some of the largest float adjusted stocks trading on the Toronto Stock Exchange. (1) The percentage return differs for each series because the management fee rate and expenses differ for each series. (2) The return since inception for each series will differ when the inception date differs and is only provided when a series has been active for a period of less than 10 years. (3) The return of the S&P/TSX Composite Index since inception for each applicable series is as follows: H5 Series 14.9%, H8 Series 7.2%, L Series 6.9%, L5 Series 6.7%, L8 Series 6.1%, N Series 7.6%, N5 Series 6.8%, N8 Series 7.4%, D5 Series 4.8%, D8 Series 4.7%, QF Series 6.5%, QF5 Series 6.5%.
Summary of Investment Portfolio at March 31, Portfolio Allocation % of NAV Equities 99.1 Cash and short-term investments 0.5 Other assets (liabilities) 0.4 Regional Allocation % of NAV Canada 99.1 Cash and short-term investments 0.5 Other assets (liabilities) 0.4 Sector Allocation % of NAV Financials 41.9 Energy 24.8 Consumer discretionary 9.0 Materials 7.4 Information technology 4.8 Industrials 4.0 Telecommunication services 3.3 Utilities 2.5 Consumer staples 1.4 Cash and short-term investments 0.5 Other assets (liabilities) 0.4 Top 25 Holdings Issuer % of NAV Royal Bank of Canada 7.6 The Bank of Nova Scotia 7.6 Suncor Energy Inc. 6.1 Canadian Natural Resources Ltd. 6.1 The Toronto-Dominion Bank 5.5 Husky Energy Inc. 4.5 Nutrien Ltd. 4.4 Imperial Oil Ltd. 4.3 Magna International Inc. 3.9 Canadian Imperial Bank of Commerce 3.9 Manulife Financial Corp. 3.8 Rogers Communications Inc. 3.3 Canadian Tire Corp. Ltd. 2.8 Open Text Corp. 2.6 Great-West Lifeco Inc. (1) 2.6 Power Corp. of Canada (1) 2.5 ATCO Ltd. 2.5 Industrial Alliance Insurance and Financial Services Inc. 2.4 Fairfax Financial Holdings Ltd. 2.4 CI Financial Corp. 2.4 CGI Group Inc. 2.2 Canfor Corp. 2.2 SNC-Lavalin Group Inc. 2.0 Shaw Communications Inc. 2.0 Finning International Inc. 1.9 Top long positions as a percentage of total net asset value 91.5 (1) The issuer of this security is related to Mackenzie Financial Corporation. The Fund held no short positions at the end of the period. The investments and percentages may have changed since March 31,, due to the ongoing portfolio transactions of the Fund. Quarterly updates of holdings are available within 60 days of the end of each quarter except for March 31, the Fund s fiscal year-end, when they are available within 90 days.
Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund s financial performance for each of the fiscal periods presented below. If during the period a fund or series was established or reinstated, period represents the period from inception or reinstatement to the end of that fiscal period. Series inception or reinstatement dates can be found under Fund Formation and Series Information. THE FUND S NET ASSETS PER SECURITY ($) 1 Quadrus Series Net assets, beginning of period 12.66 10.71 11.74 11.56 10.29 Total revenue 0.36 0.36 0.33 0.32 0.31 Total expenses (0.33) (0.31) (0.29) (0.31) (0.28) Realized gains (losses) for the period 0.18 0.39 0.12 0.53 0.04 Unrealized gains (losses) for the period 0.03 1.61 (1.42) (0.10) 1.19 operations 2 0.24 2.05 (1.26) 0.44 1.26 From dividends (0.02) (0.11) (0.09) (0.26) From capital gains Return of capital Total annual distributions 3 (0.02) (0.11) (0.09) (0.26) Net assets, end of period 12.87 12.66 10.71 11.74 11.56 H Series Net assets, beginning of period 13.76 11.60 12.62 12.43 10.94 Total revenue 0.40 0.39 0.35 0.34 0.33 Total expenses (0.20) (0.19) (0.17) (0.19) (0.17) Realized gains (losses) for the period 0.20 0.41 0.42 0.61 (0.03) Unrealized gains (losses) for the period 0.04 1.75 (1.52) (0.11) 1.28 operations 2 0.44 2.36 (0.92) 0.65 1.41 From dividends (0.17) (0.21) (0.14) (0.43) From capital gains (0.01) Return of capital Total annual distributions 3 (0.17) (0.22) (0.14) (0.43) Net assets, end of period 14.00 13.76 11.60 12.62 12.43 H5 Series Net assets, beginning of period 18.94 16.71 15.00 n/a n/a Total revenue 0.53 0.57 0.10 n/a n/a Total expenses (0.26) (0.26) (0.05) n/a n/a Realized gains (losses) for the period 0.69 (1.42) 2.57 n/a n/a Unrealized gains (losses) for the period 0.05 2.53 (0.45) n/a n/a operations 2 1.01 1.42 2.17 n/a n/a (excluding dividends) n/a n/a From dividends (0.23) (0.29) (0.28) n/a n/a From capital gains (0.05) n/a n/a Return of capital (0.97) (0.80) (0.19) n/a n/a Total annual distributions 3 (1.20) (1.14) (0.47) n/a n/a Net assets, end of period 18.31 18.94 16.71 n/a n/a H8 Series Net assets, beginning of period 13.80 12.55 14.92 15.71 15.00 Total revenue 0.38 0.41 0.40 0.41 0.36 Total expenses (0.19) (0.19) (0.20) (0.24) (0.20) Realized gains (losses) for the period 0.18 0.46 0.21 0.65 0.25 Unrealized gains (losses) for the period 0.03 1.82 (1.74) (0.13) 1.41 operations 2 0.40 2.50 (1.33) 0.69 1.82 From dividends (0.17) (0.22) (0.15) (0.34) From capital gains (0.01) Return of capital (1.12) (1.03) (1.16) (1.22) (1.11) Total annual distributions 3 (1.29) (1.26) (1.31) (1.56) (1.11) Net assets, end of period 12.91 13.80 12.55 14.92 15.71 (1) These calculations are prescribed by securities regulations and are not intended to be a reconciliation between opening and closing net assets per security. This information is derived from the Fund s audited annual financial statements. The net assets per security presented in the financial statements may differ from the net asset value per security calculated for fund pricing purposes. An explanation of these differences can be found in the Notes to Financial Statements. (2) Net assets and distributions are based on the actual number of securities outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of securities outstanding over the fiscal period. (3) Distributions were paid in cash/reinvested in additional securities of the Fund, or both.
THE FUND S NET ASSETS PER SECURITY ($) 1 (cont d) L Series Net assets, beginning of period 13.94 11.78 12.88 12.62 11.20 Total revenue 0.40 0.40 0.35 0.35 0.33 Total expenses (0.32) (0.29) (0.26) (0.29) (0.27) Realized gains (losses) for the period 0.20 0.43 1.71 0.57 0.17 Unrealized gains (losses) for the period 0.04 1.77 (1.53) (0.11) 1.30 operations 2 0.32 2.31 0.27 0.52 1.53 From dividends (0.07) (0.15) (0.12) (0.28) From capital gains Return of capital Total annual distributions 3 (0.07) (0.15) (0.12) (0.28) Net assets, end of period 14.18 13.94 11.78 12.88 12.62 L5 Series Net assets, beginning of period 15.29 13.54 15.63 16.12 15.03 Total revenue 0.43 0.45 0.42 0.43 0.44 Total expenses (0.33) (0.33) (0.30) (0.35) (0.35) Realized gains (losses) for the period 0.57 0.46 2.15 0.75 0.05 Unrealized gains (losses) for the period 0.04 1.99 (1.80) (0.14) 1.71 operations 2 0.71 2.57 0.47 0.69 1.85 From dividends (0.07) (0.17) (0.14) (0.39) From capital gains Return of capital (0.78) (0.69) (0.75) (0.78) (0.76) Total annual distributions 3 (0.85) (0.86) (0.89) (1.17) (0.76) Net assets, end of period 14.77 15.29 13.54 15.63 16.12 L8 Series Net assets, beginning of period 15.32 13.98 15.00 n/a n/a Total revenue 0.43 0.45 0.27 n/a n/a Total expenses (0.34) (0.34) (0.20) n/a n/a Realized gains (losses) for the period 0.19 0.59 1.71 n/a n/a Unrealized gains (losses) for the period 0.04 2.03 (1.17) n/a n/a operations 2 0.32 2.73 0.61 n/a n/a (excluding dividends) n/a n/a From dividends (0.06) (0.17) (0.19) n/a n/a From capital gains n/a n/a Return of capital (1.25) (1.13) (0.78) n/a n/a Total annual distributions 3 (1.31) (1.30) (0.97) n/a n/a Net assets, end of period 14.33 15.32 13.98 n/a n/a N Series Net assets, beginning of period 15.89 13.38 14.42 14.10 12.23 Total revenue 0.46 0.46 0.41 0.39 0.37 Total expenses (0.01) (0.01) (0.01) Realized gains (losses) for the period 0.24 0.47 0.67 0.60 0.26 Unrealized gains (losses) for the period 0.04 2.03 (1.75) (0.13) 1.43 operations 2 0.74 2.96 (0.68) 0.85 2.05 From dividends (0.43) (0.33) (0.23) (0.59) From capital gains (0.15) Return of capital Total annual distributions 3 (0.43) (0.48) (0.23) (0.59) Net assets, end of period 16.17 15.89 13.38 14.42 14.10
THE FUND S NET ASSETS PER SECURITY ($) 1 (cont d) N5 Series Net assets, beginning of period 16.96 14.97 17.02 17.22 15.67 Total revenue 0.48 0.50 0.46 0.47 0.46 Total expenses (0.01) (0.01) (0.01) (0.01) Realized gains (losses) for the period 0.31 0.54 4.44 1.93 0.08 Unrealized gains (losses) for the period 0.04 2.22 (1.99) (0.15) 1.80 operations 2 0.83 3.25 2.90 2.24 2.33 From dividends (0.43) (0.36) (0.25) (0.48) From capital gains (0.01) (0.16) Return of capital (0.87) (0.76) (0.83) (0.83) (0.77) Total annual distributions 3 (1.31) (1.28) (1.08) (1.31) (0.77) Net assets, end of period 16.38 16.96 14.97 17.02 17.22 N8 Series Net assets, beginning of period 14.98 13.62 16.02 16.73 15.69 Total revenue 0.42 0.45 0.43 0.44 0.46 Total expenses (0.01) (0.01) (0.01) Realized gains (losses) for the period 0.02 0.45 (0.35) (0.03) 0.10 Unrealized gains (losses) for the period 0.04 2.00 (1.87) (0.14) 1.77 operations 2 0.48 2.90 (1.80) 0.26 2.32 From dividends (0.37) (0.32) (0.23) (0.48) From capital gains (0.14) Return of capital (1.24) (1.11) (1.25) (1.30) (1.23) Total annual distributions 3 (1.61) (1.57) (1.48) (1.78) (1.23) Net assets, end of period 14.01 14.98 13.62 16.02 16.73 D5 Series Net assets, beginning of period 13.41 11.90 13.77 14.19 13.27 Total revenue 0.38 0.39 0.38 0.38 0.39 Total expenses (0.35) (0.34) (0.34) (0.38) (0.36) Realized gains (losses) for the period 0.26 0.52 0.13 0.61 0.03 Unrealized gains (losses) for the period 0.03 1.74 (1.62) (0.12) 1.51 operations 2 0.32 2.31 (1.45) 0.49 1.57 From dividends (0.01) (0.12) (0.10) (0.27) From capital gains Return of capital (0.68) (0.60) (0.66) (0.69) (0.65) Total annual distributions 3 (0.69) (0.72) (0.76) (0.96) (0.65) Net assets, end of period 12.95 13.41 11.90 13.77 14.19 D8 Series Net assets, beginning of period 10.18 9.30 11.14 11.84 11.41 Total revenue 0.28 0.30 0.30 0.31 0.33 Total expenses (0.26) (0.26) (0.27) (0.31) (0.30) Realized gains (losses) for the period 0.20 0.36 (0.43) 0.51 0.02 Unrealized gains (losses) for the period 0.02 1.34 (1.31) (0.10) 1.28 operations 2 0.24 1.74 (1.71) 0.41 1.33 From dividends (0.01) (0.09) (0.08) (0.23) From capital gains Return of capital (0.83) (0.76) (0.86) (0.92) (0.90) Total annual distributions 3 (0.84) (0.85) (0.94) (1.15) (0.90) Net assets, end of period 9.52 10.18 9.30 11.14 11.84
THE FUND S NET ASSETS PER SECURITY ($) 1 (cont d) QF Series Net assets, beginning of period 11.17 10.00 n/a n/a n/a Total revenue 0.32 0.23 n/a n/a n/a Total expenses (0.16) (0.11) n/a n/a n/a Realized gains (losses) for the period 0.13 0.05 n/a n/a n/a Unrealized gains (losses) for the period 0.03 1.04 n/a n/a n/a operations 2 0.32 1.21 n/a n/a n/a (excluding dividends) n/a n/a n/a From dividends (0.14) (0.20) n/a n/a n/a From capital gains (0.05) n/a n/a n/a Return of capital n/a n/a n/a Total annual distributions 3 (0.14) (0.25) n/a n/a n/a Net assets, end of period 11.36 11.17 n/a n/a n/a Series R Net assets, beginning of period 15.43 13.00 14.01 13.69 11.88 Total revenue 0.45 0.44 0.39 0.38 0.36 Total expenses (0.01) (0.01) (0.01) Realized gains (losses) for the period 0.29 0.51 0.73 0.65 0.22 Unrealized gains (losses) for the period 0.04 1.97 (1.70) (0.12) 1.39 operations 2 0.78 2.92 (0.59) 0.90 1.96 From dividends (0.42) (0.32) (0.22) (0.57) From capital gains (0.14) Return of capital Total annual distributions 3 (0.42) (0.46) (0.22) (0.57) Net assets, end of period 15.71 15.43 13.00 14.01 13.69 QF5 Series Net assets, beginning of period 16.15 15.00 n/a n/a n/a Total revenue 0.45 0.34 n/a n/a n/a Total expenses (0.23) (0.17) n/a n/a n/a Realized gains (losses) for the period 0.59 0.42 n/a n/a n/a Unrealized gains (losses) for the period 0.04 1.51 n/a n/a n/a operations 2 0.85 2.10 n/a n/a n/a (excluding dividends) n/a n/a n/a From dividends (0.19) (0.28) n/a n/a n/a From capital gains (0.08) n/a n/a n/a Return of capital (0.83) (0.58) n/a n/a n/a Total annual distributions 3 (1.02) (0.94) n/a n/a n/a Net assets, end of period 15.59 16.15 n/a n/a n/a
RATIOS AND SUPPLEMENTAL DATA Quadrus Series Total net asset value ($000) 1 67,743 72,712 68,716 112,793 119,805 Securities outstanding (000) 1 5,263 5,746 6,414 9,605 10,367 Management expense ratio (%) 2 2.57 2.58 2.58 2.60 2.59 waivers or absorptions (%) 2 2.57 2.58 2.58 2.60 2.59 Net asset value per security ($) 12.87 12.66 10.71 11.74 11.56 H Series Total net asset value ($000) 1 6,925 7,820 6,764 8,171 8,859 Securities outstanding (000) 1 495 568 583 648 713 Management expense ratio (%) 2 1.42 1.41 1.41 1.45 1.48 waivers or absorptions (%) 2 1.42 1.42 1.41 1.45 1.48 Net asset value per security ($) 14.00 13.76 11.60 12.62 12.43 H5 Series Total net asset value ($000) 1 72 31 1 n/a n/a Securities outstanding (000) 1 4 2 n/a n/a Management expense ratio (%) 2 1.39 1.35 1.43 n/a n/a waivers or absorptions (%) 2 1.39 1.36 1.43 n/a n/a Trading expense ratio (%) 3 0.01 0.03 0.09 n/a n/a Portfolio turnover rate (%) 4 11.90 13.54 59.23 n/a n/a Net asset value per security ($) 18.31 18.94 16.71 n/a n/a H8 Series Total net asset value ($000) 1 30 32 29 45 29 Securities outstanding (000) 1 2 2 2 3 2 Management expense ratio (%) 2 1.36 1.36 1.44 1.51 1.56 waivers or absorptions (%) 2 1.36 1.37 1.44 1.51 1.56 Net asset value per security ($) 12.91 13.80 12.55 14.92 15.71 L Series Total net asset value ($000) 1 40,658 40,211 34,353 6,567 5,444 Securities outstanding (000) 1 2,868 2,885 2,916 510 431 Management expense ratio (%) 2 2.22 2.22 2.19 2.22 2.26 waivers or absorptions (%) 2 2.22 2.23 2.19 2.22 2.26 Net asset value per security ($) 14.18 13.94 11.78 12.88 12.62 L5 Series Total net asset value ($000) 1 211 229 195 30 30 Securities outstanding (000) 1 14 15 14 2 2 Management expense ratio (%) 2 2.20 2.22 2.15 2.14 2.23 waivers or absorptions (%) 2 2.20 2.23 2.15 2.14 2.23 Net asset value per security ($) 14.77 15.29 13.54 15.63 16.12 L8 Series Total net asset value ($000) 1 404 440 413 n/a n/a Securities outstanding (000) 1 28 29 30 n/a n/a Management expense ratio (%) 2 2.24 2.27 2.23 n/a n/a waivers or absorptions (%) 2 2.24 2.28 2.23 n/a n/a Trading expense ratio (%) 3 0.01 0.03 0.09 n/a n/a Portfolio turnover rate (%) 4 11.90 13.54 59.23 n/a n/a Net asset value per security ($) 14.33 15.32 13.98 n/a n/a (1) This information is provided as at the end of the fiscal period shown. (2) Management expense ratio is based on total expenses (excluding commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized percentage of daily average net asset value during the period. If in the period a series was established or reinstated, the management expense ratio is annualized from the date of inception or reinstatement. Mackenzie and Quadrus may waive or absorb operating expenses at their discretion and stop waiving or absorbing such expenses at any time without notice. (3) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period. (4) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher a fund s portfolio turnover rate in a period, the greater the trading costs payable by the fund in the period, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. The portfolio turnover rate is not provided when the Fund is less than one year old. The value of any trades to realign the Fund s portfolio after a fund merger, if any, is excluded from the portfolio turnover rate.
RATIOS AND SUPPLEMENTAL DATA (cont d) N Series Total net asset value ($000) 1 48,520 39,921 27,805 25,274 19,528 Securities outstanding (000) 1 3,000 2,512 2,078 1,752 1,385 Management expense ratio (%) 2 0.01 0.01 waivers or absorptions (%) 2 0.01 0.01 0.01 Net asset value per security ($) 16.17 15.89 13.38 14.42 14.10 N5 Series Total net asset value ($000) 1 1,215 1,222 1,071 284 1,394 Securities outstanding (000) 1 74 72 72 17 81 Management expense ratio (%) 2 0.01 0.01 waivers or absorptions (%) 2 0.01 0.01 0.01 Net asset value per security ($) 16.38 16.96 14.97 17.02 17.22 N8 Series Total net asset value ($000) 1 857 870 665 1,565 624 Securities outstanding (000) 1 61 58 49 98 37 Management expense ratio (%) 2 0.01 0.01 waivers or absorptions (%) 2 0.01 0.01 0.01 Net asset value per security ($) 14.01 14.98 13.62 16.02 16.73 D5 Series Total net asset value ($000) 1 389 412 321 490 492 Securities outstanding (000) 1 30 31 27 36 35 Management expense ratio (%) 2 2.62 2.62 2.61 2.61 2.62 waivers or absorptions (%) 2 2.62 2.62 2.61 2.61 2.62 Net asset value per security ($) 12.95 13.41 11.90 13.77 14.19 D8 Series Total net asset value ($000) 1 337 279 234 734 531 Securities outstanding (000) 1 35 27 25 66 45 Management expense ratio (%) 2 2.61 2.58 2.59 2.60 2.58 waivers or absorptions (%) 2 2.61 2.58 2.59 2.60 2.58 Net asset value per security ($) 9.52 10.18 9.30 11.14 11.84 QF Series Total net asset value ($000) 1 2,603 999 n/a n/a n/a Securities outstanding (000) 1 229 89 n/a n/a n/a Management expense ratio (%) 2 1.43 1.43 n/a n/a n/a waivers or absorptions (%) 2 1.43 1.43 n/a n/a n/a Trading expense ratio (%) 3 0.01 0.03 n/a n/a n/a Portfolio turnover rate (%) 4 11.90 13.54 n/a n/a n/a Net asset value per security ($) 11.36 11.17 n/a n/a n/a QF5 Series Total net asset value ($000) 1 16 12 n/a n/a n/a Securities outstanding (000) 1 1 1 n/a n/a n/a Management expense ratio (%) 2 1.41 1.41 n/a n/a n/a waivers or absorptions (%) 2 1.41 1.41 n/a n/a n/a Trading expense ratio (%) 3 0.01 0.03 n/a n/a n/a Portfolio turnover rate (%) 4 11.90 13.54 n/a n/a n/a Net asset value per security ($) 15.60 16.15 n/a n/a n/a Series R Total net asset value ($000) 1 80,295 80,614 74,150 66,011 55,806 Securities outstanding (000) 1 5,112 5,223 5,704 4,712 4,075 Management expense ratio (%) 2 0.01 0.01 waivers or absorptions (%) 2 0.01 0.01 0.01 Net asset value per security ($) 15.71 15.43 13.00 14.01 13.70
Management Fees The management fee for each applicable series is calculated and accrued daily as a percentage of its NAV. The Fund s management fees were used by Mackenzie to pay for the costs of managing the investment portfolio of the Fund and/or the underlying fund(s), as applicable, including providing investment analysis and recommendations, making investment decisions and making brokerage arrangements for the purchase and sale of the investment portfolio. Quadrus Investment Services Ltd. ( Quadrus ), an affiliate of Mackenzie, is the principal distributor for the Fund and receives a portion of the management fees that the Fund pays to Mackenzie. Under this arrangement, Quadrus was entitled to approximately 79% of the total management fees that Mackenzie received from the Quadrus Group of Funds during the year. As the Fund s principal distributor, Quadrus is responsible for paying certain administrative costs and all sales commissions, trailing commissions and any other compensation (collectively, distributionrelated payments ) to registered dealers whose clients invest in the Fund. Mackenzie used approximately 43% of the total management fee revenues received from all Mackenzie funds during the year to fund distributionrelated payments to registered dealers and brokers. In comparison, such distribution-related payments for the Fund represented on average 39% of the management fees paid by all applicable series of the Fund during the year. The actual percentage for each series may be higher or lower than the average depending on the level of trailing commissions and sales commissions paid for that series.
Fund Formation and Series Information The Fund may have undergone a number of changes such as a reorganization or a change in manager, mandate or name. A history of the major changes affecting the Fund in the last 10 years can be found in the Fund s Annual Information Form. Date of Formation June 29, 2007 The Fund may issue an unlimited number of securities of each series. The number of issued and outstanding securities of each series is disclosed in Financial Highlights. Series Distributed by Quadrus Investment Services Ltd. (255 Dufferin Ave., London, Ontario, N6A 4K1; 1-888-532-3322; www.quadrusgroupoffunds.com) Quadrus Investment Services Ltd. ( Quadrus ) is the principal distributor of the series of securities listed below: Quadrus Series, D5 Series and D8 Series securities are offered to investors investing a minimum of $500. Investors in D5 Series and D8 Series securities also want to receive a regular monthly cash flow of 5% or 8% per year, respectively. H Series, H5 Series and H8 Series securities are offered to investors investing a minimum of $500, who are enrolled in a Quadrus-sponsored fee-for-service or wrap program and who are subject to an asset-based fee. Investors in H5 Series and H8 Series securities also want to receive a monthly cash flow of 5% or 8% per year, respectively. L Series, L5 Series and L8 Series securities are offered to investors investing a minimum of $100,000 and who have eligible minimum total holdings of $500,000. Investors in L5 Series and L8 Series securities also want to receive a regular monthly cash flow of 5% or 8% per year, respectively. N Series, N5 Series and N8 Series securities are offered to investors investing a minimum of $100,000, who have eligible minimum total holdings of $500,000, and who have entered into an N type series account agreement with Mackenzie and Quadrus. Investors in N5 Series and N8 Series securities also want to receive a regular monthly cash flow of 5% or 8% per year, respectively. QF Series and QF5 Series securities are offered to retail investors investing a minimum of $500. Investors are required to negotiate their advisor service fee, which cannot exceed 1.25%, with their financial advisor. Investors in QF5 Series securities also want to receive a monthly cash flow of 5% per year. Series R securities are offered only to other affiliated funds and certain institutional investors in connection with fund-of-fund arrangements. An investor in the Fund may choose among different purchase options that are available under each series. These purchase options are a sales charge purchase option, a redemption charge purchase option, a low-load purchase option and a no-load purchase option. The charges under the sales charge purchase option are negotiated by investors with their dealers. The charges under the redemption charge and low-load purchase options are paid to Mackenzie if an investor redeems securities of the Fund during specific periods. Not all purchase options are available under each series of the Fund, and the charges for each purchase option may vary among the different series. For further details on these purchase options, please refer to the Fund s Simplified Prospectus and Fund Facts. Series Inception/ Reinstatement Date Management Fees Administration Fees Net Asset Value per Security ($),, Quadrus Series July 9, 2007 2.10% 0.24% 12.87 12.66 H Series July 9, 2007 1.10% 0.19% 14.00 13.76 H5 Series January 15, 1.10% 0.19% 18.31 18.94 H8 Series May 23, 2013 (2) 1.10% 0.19% 12.91 13.80 L Series November 16, 2011 1.85% 0.15% 14.18 13.94 L5 Series January 30, 2013 1.85% 0.15% 14.77 15.29 L8 Series August 13, 1.85% 0.15% 14.33 15.32 N Series September 28, 2011 (1) (1) 16.17 15.89 N5 Series March 22, 2012 (1) (1) 16.38 16.96 N8 Series September 25, 2012 (1) (1) 14.01 14.98 D5 Series August 19, 2008 2.10% 0.24% 12.95 13.41 D8 Series August 12, 2008 2.10% 0.24% 9.52 10.18 QF Series July 12, 1.10% 0.24% 11.36 11.17 QF5 Series July 12, 1.10% 0.24% 15.60 16.15 Series R July 9, 2007 * * 15.71 15.43 * Not applicable. (1) This fee is negotiable and payable directly to Mackenzie by investors in this series. (2) The series original start date was January 27, 2012. All securities in the series were redeemed on October 24, 2012. The series was reinstated at the price of $15.00 per security on May 23, 2013.