December 31, 2018 Annual Management Report of Fund Performance This annual management report of fund performance contains financial highlights but does not contain the complete financial statements of the investment fund. If you have not received a copy of the annual financial statements with this report, you can get a copy of the annual financial statements at your request, and at no cost, by calling 1.800.387.0830, by writing to us at 5000 Yonge Street, Suite 900, Toronto ON M2N 0A7, or by visiting our website at www.franklintempleton.ca or SEDAR at www.sedar.com. Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure.
Co-Lead Portfolio Manager (Underlying Fund) Peter Langerman, CFA, MBA Franklin Mutual Advisers, LLC (Sub-Advisor) Industry Experience: 33 years Location: Short Hills, NJ Co-Lead Portfolio Manager (Underlying Fund) Timothy Rankin, CFA Franklin Mutual Advisers, LLC (Sub-Advisor) Industry Experience: 27 years Location: Short Hills, NJ Co-Lead Portfolio Manager (Underlying Fund) Christian Correa Franklin Mutual Advisers, LLC (Sub-Advisor) Industry Experience: 16 years Location: Short Hills, NJ INVESTMENT OBJECTIVE AND STRATEGIES Franklin Mutual Global Discovery Corporate Class (the Fund ) aims to grow investors capital over the long term by investing substantially all of its assets in units of Franklin Mutual Global Discovery Fund (the Underlying Fund ). The Underlying Fund aims to grow investors capital over the long term by investing primarily in equity and debt securities of issuers around the world. The Underlying Fund s portfolio sub-advisor (the portfolio manager ) is dedicated to a unique style of deep-value investing, searching aggressively for opportunities among undervalued stocks. The portfolio manager is committed to a distinct, three-pronged approach that seeks (a) fundamentally strong companies with robust balance sheets, high-quality assets and shareholder-oriented management teams, (b) carefully selected opportunities in distressed or bankrupt companies, and (c) risk arbitrage situations, specifically, announced takeover deals. The Underlying Fund may hold equities, debt or money market securities in any proportion, provided that in normal market conditions not less than 65% of its assets (not including cash and cash equivalents and direct or indirect US government obligations) are invested in common stock, preferred stock and debt securities convertible to common or preferred stock. Debt securities can be rated or unrated. The Underlying Fund may invest up to 10 of its assets in non-us equity and debt securities, which may involve participation in sovereign debt and foreign government debt issues. The Underlying Fund may purchase debt obligations from banks where the debt purchased represents the indebtedness of a company to the bank. Such debt instruments will usually be in default or at substantial risk of default. Debt instruments issued by companies recently emerging from or facing financial restructuring may also be purchased. The Underlying Fund may also invest in companies involved in mergers, consolidations, liquidations and reorganizations. RISK The risks of investing in the Fund remain as stated in the prospectus. The Fund is suitable for investors willing to accept low to medium investment risk, planning to hold their investment for the medium to long term and seeking a fund investing in undervalued securities from around the world. The investment strategy of the Fund involves the possibility that some investments, specifically investments in troubled companies, may face substantial loss as a result of the creditworthiness of the troubled company. The portfolio manager attempts to select only those securities that, based on proper analysis of actual risk compared to the risk perceived by the market, appear to have strong potential for gain. RESULTS OF OPERATIONS As at December 31, 2018, total net asset value of the Fund was $186.6 million, a decrease of 28.4% from December 31, 2017. This was primarily driven by $48.1 million in net redemptions and a decrease of $25.1 million in net assets from operations. The Fund paid or made payable $620,000 in cash distributions to shareholders. During the past 12 months, the Fund s Series A shares generated total returns of -12.7%. Over the same time period, the Fund s benchmark, the MSCI World Index (the Index ), returned 0.1%. The performance of the Fund s other series is similar to that of its Series A shares, except for differences in expense structure. For the return of the Fund s other series (if applicable), please refer to the Past Performance section. Index performance comparison information is provided for reference only. It is important to note that the Fund s return reflects the effect of fees and expenses for professional management, while an index does not have such costs. The Fund invests substantially all of its assets in units of Franklin Mutual Global Discovery Fund, and accordingly the discussion that follows pertains to this Underlying Fund. Over the period under review, approximately 85-95% of the Fund s non-canadian dollar exposure was hedged to the Canadian dollar, and close to half of the fund s equity investment exposure was to US securities. Movements in exchange rates can be an important determinant of returns in Canadian-dollar terms, and the Fund s policy of generally hedging currencies is different than its benchmark. During the period, the Fund s currency hedge largely offset the impact of a depreciation in the Canadian dollar against other major currencies. As a result, the currency hedge detracted -5.52% from Fund s return during the period. In addition to the impact of the currency hedge, the Fund trailed the Index during the reporting period due to stock selection and an overweighting in the Financials sector, as well as stock selection in the Consumer Staples and Information Technology sectors. Conversely, stock selection and an overweighting in the Health Care sector aided performance.
Merger-arbitrage and distressed investment allocations were small over the period and impacted returns to a lesser degree than the Fund s currency hedge and deep-value equity investments. One of the Fund s most significant detractors was British American Tobacco p.l.c. Shares of British American Tobacco and industry peers dropped when the US Food and Drug Administration (FDA) issued an Advance Notice of Proposed Rulemaking, which started the process of examining the possibility of regulating nicotine levels in combustible cigarettes. The FDA also revisited the possibility of banning menthol as a flavour in cigarettes. The high growth rate and product popularity with young consumers of next-generation products further weighed on tobacco stocks. Conversely, a key contributor to Fund performance was Eli Lilly & Co., boosted in large part by a series of strong quarterly results during 2018. Attractive corporate fundamentals and less investor concern regarding the direct impact on the pharmaceutical industry from the Trump administration s efforts to lower prescription drug prices helped push the stock higher. The portfolio manager believes Eli Lilly & Co., continues to have a strong product growth story and room for further margin expansion, in addition to having solid research and development capabilities. Average net assets of the series of the Fund that bear expenses have decreased for the year ended December 31, 2018. This has resulted in a corresponding decrease in expenses. Income received from investments held, excluding net realized and/or unrealized gain (loss) on investments and derivatives, as applicable, decreased due to the results of the Fund s investment activities, including, but not limited to, those previously discussed for the period in review. RECENT DEVELOPMENTS The 2019 consensus view is for slower but still positive global economic growth led by the United States, with modest growth in corporate earnings. In addition, downside risks to the global outlook appear to have risen, investor sentiment has turned more cautious, and the general level of financial market volatility has been on the rise. In the portfolio manager s view, 2019 may favour prudent stock pickers with a disciplined approach. Policy events are likely to have considerable influence, for better or worse, on economic growth, financial market performance and investor sentiment. At period end, market valuations had returned to more attractive levels. The portfolio manager used the period of turbulence during the latter stages of the year to seek out stocks with strong corporate fundamentals and valuations whose risk/reward profiles turned more favourable as they became caught up in the broad selloff. Recently, the portfolio manager has been finding these more within economically sensitive industries. FORWARD-LOOKING STATEMENTS Investors should take note that certain statements in this report about a fund, including its strategy and expected future performance, are forward-looking. Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as may, will, should, could, expect, anticipate, intend, plan, believe, or estimate or other similar expressions. Any statement that is made concerning future strategies or performance is also a forward-looking statement. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the forward-looking statements. The forward-looking statements are by their nature based on numerous assumptions, which include, amongst other things, that (i) the Fund can attract and maintain investors and has sufficient capital under management to effect its investment strategies, (ii) the investment strategies will produce the results intended by the portfolio manager, and (iii) the markets will react and perform in a manner consistent with the investment strategies. Although the forward-looking statements contained herein are based upon what the portfolio manager believes to be reasonable assumptions, the portfolio manager cannot assure that actual results will be consistent with these forward-looking statements. Forward-looking statements are not guarantees of future performance. Any number of factors could contribute to differing results, including, among other things, general economic, political and market factors, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings and catastrophic events. This list of factors is not exhaustive. Investors should not place undue reliance on forward-looking information and should be aware that the Fund may not update any forward-looking statements, whether as a result of new information, future events or otherwise. RELATED PARTY TRANSACTIONS The Manager is an indirect wholly-owned subsidiary of Franklin Resources, Inc., a global investment management organization known as. The Manager is the manager, registrar and transfer agent and a principal distributor of the Fund. The Manager provides or arranges for the provision of these services for day-to-day Fund operations, including the marketing, promotion and distribution of the Fund and portfolio advisory services. In consideration of these management and portfolio advisory services, the Fund pays the Manager a monthly management fee plus applicable taxes, based on the average net asset value of each series of the Fund (except Series O and OT, as applicable), calculated daily, as set out under Management Fees below. During the year ended December 31, 2018, the Fund paid management fees of $2.9 million (2017 $3.5 million), after management fee waivers of $13,000 (2017 $14,000). Franklin Templeton Services, LLC (FTS) provides the Manager with fund accounting and portfolio valuation services in connection with the Fund, and provides certain back office administration services to the Manager. The Administration Fee, as discussed below, covers the cost of the services provided by FTS.
The Manager pays the operating expenses of the Fund, other than certain fund costs which include, but are not limited to, the cost of compliance with new governmental and regulatory requirements, fees and expenses of the Fund s Independent Review Committee (IRC), borrowing and interest costs and investor meeting costs (as permitted by Canadian securities regulation) in exchange for the payment by the Fund of an annual fixed-rate administration fee of 0.33% plus applicable taxes, applied against the average daily net assets of the Fund ( Administration Fee ), except for Series PF, which has an annual Administration Fee of 0.15%, and Series O and OT, which have no annual Administration Fee. The Manager will pay all operating expenses of Series O and OT, as applicable, as part of its agreement with each investor. The Manager may, at its discretion, waive a portion of a series Administration Fee or absorb certain fund costs. During the year ended December 31, 2018, the Fund paid Administration Fees of $528,000 (2017 $624,000). During the year ended December 31, 2018, the Manager waived fund costs of $1,000 (2017 $1,000). Portfolio Advisor (Underlying Fund) Franklin Mutual Advisers, LLC (the Sub-Advisor ), an affiliate of the Manager, provides investment analysis and recommendations and executes or arranges for brokers to execute portfolio transactions. A portion of the management fee paid to the Manager is payable to the Sub-Advisor with respect to portfolio sub-advisory services. Principal Distributor As a principal distributor of the Fund, the Manager markets the Fund and arranges for the sale of the Fund through dealers across Canada. The Manager may retain companies to assist in the sale of certain series of shares of the Fund. The Manager s affiliate, FTC Investor Services Inc. ( FTC ISI ), also acts as a principal distributor for Series F, O, OT, FT, PF and PF (Hedged) shares of the Fund, as applicable. For acting as a principal distributor of the applicable series, FTC ISI receives an inter-company service fee of 0.2 of the assets under management of the applicable series from the Manager with respect to those series of shares. recommendation, depending on the nature of the conflict of interest matter. Additional information about the IRC is available in the prospectus. MANAGEMENT FEES A portion of the management fee paid by the Fund to the Manager is for trail fees and sales commissions the Manager pays to dealers ( Dealer Compensation ). The trail fees are a percentage of the daily average net asset value of each series of the Fund, which is held by the dealer s clients. The remaining portion of the management fee is used to pay for portfolio advisory and administrative services related to the provision of portfolio advisory services. The following table outlines the Fund s annual management fee, as well as the portion of the management fee used to pay for Dealer Compensation and for portfolio advisory services as an approximate percentage of the management fee for each series: Series Management Fee (%) Dealer Compensation (%)* A 2.00 56.27 43.73 F** 1.00 100.00 I** 1.35 55.54 44.46 PF 0.80 100.00 T** 2.00 60.11 39.89 T-USD** 2.00 61.10 38.90 Investment management, investment management expenses, and other (%) *Dealer compensation may include other fees related to distribution, which are not payable directly to dealers. ** Management Fee waiver is applied to the following series at the specified rates Series F 0.03%; Series I 0.04%; Series T 0.02%; Series T-USD 0.12%; The management and administration fees for Series O are paid for by the shareholder directly to the Manager as follows: First C$200,000 to under $2.5 million 0.95% Next C$2.5 million to under $5 million 0.8 C$5 million and over 0.75% Certain institutional investors may negotiate the management and administration fees by written agreement with Franklin Templeton Investments. Registrar and Transfer Agent In addition to management and portfolio advisory services, the Manager acts as the registrar and transfer agent of the Fund. These services are in the normal course of operations and are covered by the Administration Fee paid by the Fund to the Manager. Independent Review Committee As required by National Instrument 81-107- Independent Review Committee for Investment Funds ( NI 81-107 ), the Manager has established the IRC to review all conflict of interest matters identified and referred to the IRC by the Manager and to give its approval or
Summary of Investment Portfolio (AS AT DECEMBER 31, 2018) REGIONAL WEIGHTINGS (%)* North America 54.51 Europe 34.44 Asia 6.45 Middle East & Africa 1.76 INDUSTRY WEIGHTINGS (%)* Banks 11.69 Oil, Gas & Consumable Fuels 10.41 Insurance 10.09 Pharmaceuticals 9.89 Health Care Equipment & Supplies 4.40 Technology Hardware, Storage & Peripherals 3.86 Software 3.51 Media 3.40 Automobiles 3.06 Tobacco 2.82 Communications Equipment 2.82 Entertainment 2.72 Diversified Telecommunication Services 2.62 Electric Utilities 2.49 Hotels, Restaurants & Leisure 2.32 Consumer Finance 1.71 IT Services 1.44 Capital Markets 1.43 Health Care Providers & Services 1.31 Chemicals 1.29 Building Products 1.28 Food & Staples Retailing 1.27 Energy Equipment & Services 1.06 Construction Materials 0.99 Containers & Packaging 0.95 Diversified Financial Services 0.94 Industrial Conglomerates 0.87 Machinery 0.81 Aerospace & Defense 0.81 Specialty Retail 0.74 Semiconductors & Semiconductor Equipment 0.73 Independent Power and Renewable Electricity Producers 0.57 Auto Components 0.42 Metals & Mining 0.41 Real Estate Management & Development 0.04 ASSET CLASS WEIGHTINGS (%) Common Stocks 93.26 Bonds 1.99 Preferred Stocks 1.91 Short-term securities and all other assets, net 2.84 TOP 25 HOLDINGS (%) Cash and cash equivalents** 3.61 Medtronic PLC 3.39 Novartis AG, American Depositary Receipt 3.38 The Walt Disney Co. 2.72 GlaxoSmithKline PLC 2.39 NN Group NV 2.29 Eli Lilly & Co. 2.17 Enel SpA 2.13 Samsung Electronics Co. Ltd. 2.01 Merck & Co. Inc. 1.95 Volkswagen AG, Preferred 1.91 Citizens Financial Group Inc. 1.83 Check Point Software Technologies Ltd. 1.76 Wells Fargo & Co. 1.74 Koninklijke KPN NV 1.73 Kinder Morgan Inc. 1.72 Chubb Ltd. 1.70 The Hartford Financial Services Group Inc. 1.69 Citigroup Inc. 1.64 Charter Communications Inc., A 1.57 Accor SA 1.55 American International Group Inc. 1.49 Cisco Systems Inc. 1.49 British American Tobacco PLC 1.49 Cognizant Technology Solutions Corp., A 1.45 TOTAL NET ASSET VALUE: $186,560,000 * Excluding short-term securities and all other assets, net. ** Cash and cash equivalents may include bonds that have a remaining term to maturity of 365 days or less that are issued by certain governments, supranational agencies or financial institutions and have a designated rating (as defined in Canadian securities law). The Fund invests substantially all of its assets in units of Franklin Mutual Global Discovery Fund. Above is an outline of the investments held in Franklin Mutual Global Discovery Fund as a percentage of its net assets. Due to ongoing portfolio transactions, the investments and percentages may have changed by the time you purchase shares of the Fund. The top 25 holdings are made available quarterly, 60 days after the quarter-end. To obtain a copy, please contact a member of our client services team at 1.800.387.0830 or visit www.franklintempleton.ca. The simplified prospectus and other information about the Underlying Fund are available at www.franklintempleton.ca or at www.sedar.com.
Series A (AS AT DECEMBER 31, 2018) performance for the fiscal periods ended December 31. Net assets beginning of period $23.99 $22.65 $21.47 $21.91 $20.68 Total revenue 0.30 0.28 0.23 0.48 0.22 Total expenses (0.62) (0.62) (0.54) (0.59) (0.56) Realized gains (losses) for the period 1.91 1.27 1.41 1.14 0.50 Unrealized gains (losses) for the period (4.41) 0.48 0.39 (1.27) 1.08 Total increase (decrease) from operations (2) (2.82) 1.41 1.49 (0.24) 1.24 From dividends (0.01) From capital gains (0.06) (0.64) (0.08) Returns of capital Total annual distributions (3) (0.06) (0.65) (0.08) Net assets end of period $20.89 $23.99 $22.65 $21.47 $21.91 Total net asset value ( 000 s) (1) $68,705 $96,081 $114,309 $144,916 $173,017 Number of shares outstanding 3,289,418 4,005,119 5,046,886 6,748,831 7,896,573 Management expense ratio (2) 2.61% 2.61% 2.61% 2.61% 2.61% Management expense ratio before waivers or absorptions 2.61% 2.61% 2.61% 2.61% 2.61% Net asset value per share $20.89 $23.99 $22.65 $21.47 $21.91 3 15% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 13.9% 8. -3.3% 12.7% 27.6% 6. -1.7% 9.1% 5.9% -12.7% Series A Shares -12.7% 0.3% 1. 6. 5.3% MSCI World Index 0.1% 6.3% 10.6% 11.4% 7.9% -15% -3
Series F (AS AT DECEMBER 31, 2018) performance for the fiscal periods ended December 31. Net assets beginning of period $28.42 $26.53 $24.86 $25.08 $23.40 Total revenue 0.37 0.39 0.11 0.54 0.22 Total expenses (0.41) (0.41) (0.35) (0.38) (0.36) Realized gains (losses) for the period 2.28 1.55 1.63 1.31 0.58 Unrealized gains (losses) for the period (5.40) 0.33 0.28 (1.40) 1.19 Total increase (decrease) from operations (2) (3.16) 1.86 1.67 0.07 1.63 From dividends (0.01) (0.02) From capital gains (0.07) (0.74) (0.09) Returns of capital Total annual distributions (3) (0.07) (0.01) (0.76) (0.09) Net assets end of period $25.03 $28.42 $26.53 $24.86 $25.08 Total net asset value ( 000 s) (1) $7,719 $10,133 $8,903 $25,679 $33,262 Number of shares outstanding 308,384 356,530 335,605 1,032,764 1,326,227 Management expense ratio (2) 1.47% 1.47% 1.46% 1.47% 1.47% Management expense ratio before waivers or absorptions 1.47% 1.47% 1.46% 1.47% 1.47% Net asset value per share $25.03 $28.42 $26.53 $24.86 $25.08 3 15% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 15.2% 9.2% -2.2% 14. 29.1% 7.2% -0.5% 10.4% 7.1% -11.7% Series F Shares -11.7% 1.5% 2.2% 7.3% 6.5% MSCI World Index 0.1% 6.3% 10.6% 11.4% 7.9% -15% -3
Series I (AS AT DECEMBER 31, 2018) performance for the fiscal periods ended December 31. Net assets beginning of period $16.50 $15.46 $14.54 $14.72 $13.79 Total revenue 0.21 0.19 0.17 0.36 0.17 Total expenses (0.30) (0.30) (0.26) (0.28) (0.26) Realized gains (losses) for the period 1.32 0.87 0.96 0.75 0.33 Unrealized gains (losses) for the period (3.09) 0.32 0.44 (1.11) 0.72 Total increase (decrease) from operations (2) (1.86) 1.08 1.31 (0.28) 0.96 From dividends (0.01) From capital gains (0.04) (0.43) (0.05) Returns of capital Total annual distributions (3) (0.04) (0.44) (0.05) Net assets end of period $14.48 $16.50 $15.46 $14.54 $14.72 Total net asset value ( 000 s) (1) $10,787 $14,533 $16,876 $16,278 $13,206 Number of shares outstanding 744,982 880,740 1,091,659 1,119,352 897,056 Management expense ratio (2) 1.83% 1.83% 1.84% 1.83% 1.85% Management expense ratio before waivers or absorptions 1.83% 1.83% 1.84% 1.83% 1.85% Net asset value per share $14.48 $16.50 $15.46 $14.54 $14.72 3 15% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 14.9% 8.9% -2.4% 13.4% 28.6% 6.8% -0.9% 10. 6.8% -12. Series I Shares -12. 1.1% 1.8% 6.9% 3.9% MSCI World Index 0.1% 6.3% 10.6% 11.4% 7.9% -15% -3
Series O (AS AT DECEMBER 31, 2018) performance for the fiscal periods ended December 31. Net assets beginning of period $35.53 $32.68 $30.19 $30.01 $27.59 Total revenue 0.40 0.44 0.34 0.73 0.32 Total expenses Realized gains (losses) for the period 2.86 1.90 2.02 1.54 0.68 Unrealized gains (losses) for the period (6.19) 0.53 0.52 (1.71) 1.41 Total increase (decrease) from operations (2) (2.93) 2.87 2.88 0.56 2.41 From dividends (0.01) (0.02) From capital gains (0.09) (0.90) (0.11) Returns of capital Total annual distributions (3) (0.09) (0.01) (0.92) (0.11) Net assets end of period $31.76 $35.53 $32.68 $30.19 $30.01 Total net asset value ( 000 s) (1) $43,361 $71,297 $66,826 $76,371 $84,051 Number of shares outstanding 1,365,364 2,006,387 2,044,557 2,529,930 2,801,111 Management expense ratio (2) Management expense ratio before waivers or absorptions Net asset value per share $31.76 $35.53 $32.68 $30.19 $30.01 4 2 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 16.9% 11. -0.7% 15.6% 31. 8.8% 1. 12. 8.7% -10.4% Series O Shares -10.4% 2.9% 3.7% 8.9% 8.1% MSCI World Index 0.1% 6.3% 10.6% 11.4% 7.9% -2-4
Series PF (AS AT DECEMBER 31, 2018) performance for the fiscal periods ended December 31. Net assets beginning of period $11.52 $10.71 $10.01 $10.08 $10.00 Total revenue 0.16 0.14 0.16 0.27 0.19 Total expenses (0.12) (0.12) (0.12) (0.13) (0.06) Realized gains (losses) for the period 0.92 0.61 0.67 0.51 0.08 Unrealized gains (losses) for the period (2.23) 0.18 0.38 (0.86) 0.14 Total increase (decrease) from operations (2) (1.27) 0.81 1.09 (0.21) 0.35 From dividends (0.01) From capital gains (0.03) (0.30) (0.04) Returns of capital Total annual distributions (3) (0.03) (0.31) (0.04) Net assets end of period $10.19 $11.52 $10.71 $10.01 $10.08 Total net asset value ( 000 s) (1) $48,705 $58,554 $58,453 $39,494 $27,376 Number of shares outstanding 4,781,310 5,082,073 5,456,390 3,944,343 2,716,598 Management expense ratio (2) 1.08% 1.08% 1.21% 1.23% 1.22% Management expense ratio before waivers or absorptions 1.08% 1.08% 1.21% 1.23% 1.22% Net asset value per share $10.19 $11.52 $10.71 $10.01 $10.08 4 2 2009 2010 2011 2012 2013 2014* 2015 2016 2017 2018 0.8% -0.3% 10.7% 7.6% -11.3% Series PF Shares -11.3% 1.8% N/A N/A 1.3% MSCI World Index 0.1% 6.3% N/A N/A 10. -2-4 *2014 Series PF return: July 7 to December 31
Series T (AS AT DECEMBER 31, 2018) performance for the fiscal periods ended December 31. Net assets beginning of period $9.12 $9.32 $9.63 $10.65 $10.89 Total revenue 0.11 0.12 0.09 0.22 0.11 Total expenses (0.22) (0.24) (0.23) (0.27) (0.28) Realized gains (losses) for the period 0.70 0.51 0.61 0.53 0.26 Unrealized gains (losses) for the period (1.63) 0.15 0.06 (0.58) 0.54 Total increase (decrease) from operations (2) (1.04) 0.54 0.53 (0.10) 0.63 From dividends (0.01) From capital gains (0.02) (0.29) (0.04) Returns of capital (0.73) (0.75) (0.77) (0.85) (0.87) Total annual distributions (3) (0.75) (0.75) (1.07) (0.89) (0.87) Net assets end of period $7.29 $9.12 $9.32 $9.63 $10.65 Total net asset value ( 000 s) (1) $6,106 $8,182 $7,855 $11,594 $14,146 Number of shares outstanding 837,650 897,290 842,887 1,203,732 1,327,795 Management expense ratio (2) 2.57% 2.56% 2.54% 2.55% 2.57% Management expense ratio before waivers or absorptions 2.57% 2.56% 2.54% 2.55% 2.57% Net asset value per share $7.29 $9.12 $9.32 $9.63 $10.65 3 15% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 14.1% 8.1% -3.1% 12.5% 27.8% 6. -1.6% 9.2% 6. -12.7% Series T Shares -12.7% 0.3% 1.1% 6.1% 2.5% MSCI World Index 0.1% 6.3% 10.6% 11.4% 6.9% -15% -3
Series T-USD (AS AT DECEMBER 31, 2018) performance for the fiscal periods ended December 31. The information presented below is presented in CAD, the functional currency of the Fund. The USD equivalent NAV is shown below, denoted by an asterisk (*). Net assets beginning of period $11.49 $11.68 $12.01 $13.39 $13.70 Total revenue 0.14 0.13 0.13 0.30 0.16 Total expenses (0.26) (0.28) (0.26) (0.31) (0.32) Realized gains (losses) for the period 0.88 0.64 0.76 0.67 0.32 Unrealized gains (losses) for the period (2.07) 0.24 0.32 (0.77) 0.63 Total increase (decrease) from operations (2) (1.31) 0.73 0.95 (0.11) 0.79 From dividends (0.01) From capital gains (0.03) (0.36) (0.05) Returns of capital (0.95) (0.90) (0.92) (1.19) (1.14) Total annual distributions (3) (0.98) (0.90) (1.29) (1.24) (1.14) Net assets end of period $9.18 $11.49 $11.68 $12.01 $13.39 Total net asset value ( 000 s) (1) $1,177 $1,601 $2,098 $2,206 $2,585 Number of shares outstanding 128,218 139,337 179,499 183,722 193,181 Management expense ratio (2) 2.35% 2.37% 2.36% 2.36% 2.36% Management expense ratio before waivers or absorptions 2.35% 2.37% 2.36% 2.36% 2.36% Net asset value per share (USD)* $6.73 $9.14 $8.70 $8.68 $11.53 4 2 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 14.1% 8.4% -3. 12.8% 27.2% 6.3% -1.4% 9.3% 6.2% -12.5% Series T-USD Shares -12.5% 0.5% 1.2% 6.3% 3.8% MSCI World Index 0.1% 6.3% 10.6% 11.4% 8.6% -2-4
EXPLANATORY NOTES TO NOTES TO Net Assets per Share: (1) This information is derived from the Fund s audited annual financial statements. In the period a fund or series is established, the financial information is provided from the date of inception to the end of the period. In cases where the net assets per share presented in the financial statements differ from the net asset value calculated for Fund pricing purposes, an explanation of these differences can be found in the notes to the financial statements. (2) Net assets and distributions are based on the actual number of shares outstanding at the relevant time. The increase/(decrease) in net assets from operations is based on the weighted average number of shares outstanding over the fiscal period. This table is not intended to be a reconciliation of opening and closing net assets per share. (3) Dividends were paid in cash or reinvested in additional shares of the Fund or both, and exclude distributions of management fee reductions to shareholders. OTHER FUND INFORMATION Reported year-by-year returns for past years may be revised, based on the results of recalculations, audits and/or other historical review processes. Such revisions are considered immaterial to performance disclosure unless otherwise stated. Series I and V, as applicable, are presently capped (closed to new investors). Investors who currently own shares of Series I and Series V may continue to purchase additional shares in those series. These series may become available for purchase by new investors at the discretion of the Manager. BENCHMARK(S) INFORMATION MSCI World Index measures the total return (dividends are reinvested) of equity securities available in developed markets globally. The Index comprises approximately 1,335 companies, which represent 23 countries. Index returns are shown in Canadian dollars. Ratios and Supplemental Data: (1) This information is provided as at the period-end of the year shown. (2) Management expense ratio is based on total expenses for the stated period and is expressed as an annualized percentage of daily average net asset value during the period. (3) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of net asset value during the period. For funds that invest in multiple Underlying Funds, the trading expense ratio represents the Fund s proportionate share of total commissions and other portfolio costs of the Underlying Fund as an annualized percentage of its daily average net assets during the period. For funds that invest substantially all of its assets in an Underlying Fund, the trading expense ratio shown is that of the Underlying Fund. (4) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio manager manages its portfolio investments. A portfolio turnover rate of 10 is equivalent to the Fund buying and selling each security in its portfolio once in the course of the relevant period. The higher the portfolio turnover rate in the period, the greater the trading costs payable by the Fund 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 the Fund. Where a fund has invested substantially all its assets in an Underlying Fund for the entire period, the portfolio turnover rate is zero. CFA and Chartered Financial Analyst are trademarks owned by CFA Institute.