This semiannual management report of fund performance contains financial highlights but does not contain the complete semiannual or annual financial statements of the investment fund. You can get a copy of the semiannual or annual financial statements at your request, and at no cost, by calling 18886644784, by writing to us at United Financial, 2 Queen Street East, Twentieth Floor, Toronto, ON, M5C 3G7 or by visiting our website at www.assante.com 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. RESULTS OF OPERATIONS The Fund s net assets increased by 17.4 million to 521.1 million from December 31, 2016 to June 30, 2017. The Fund had net sales of.9 million for the period. The portfolio s performance increased assets by 6.5 million. The Fund s sixmonth return for Class A units was 0.3%, Class E units was 0.6%, Class OF units was 0.7%, Class I units was 1.8% and Class W units was 1.7%, compared to the return of the benchmark of 0.7% for the same period. The benchmark is the S&P/TSX Composite Total Return Index. Following a strong 2016, the S&P/TSX Composite Index finished the period roughly flat. Energy was the worst performing sector as crude oil supply outpaced demand growth, resulting in a weakening oil price. Most cyclical sectors fared well as fears that the U.S. government would modify NAFTA and introduce a Border Tax Adjustment (both potential negatives for Canadian companies) receded postelection. The Canadian economy is on a stronger footing relative to the last few years. The probability of a nearterm interest rate increase continues to move higher; this would be the first sign of tightening from the Bank of Canada in nearly seven years. A rising interest rate environment is generally a positive for equities, particularly banks and insurance companies; two industries where we still see value opportunities. Industrials and financials led Canadian market performance over the first six months of 2017 with energy and materials the only two benchmark sectors with negative returns during the period. Strong stock selection in the materials, industrials and consumer staples sectors drove the Fund s outperformance during the period. Stock selection within financials also contributed positively to the Fund s performance. The Fund s only negative sector contribution was energy. The Fund had a higher than average cash balance during the period which had a slightly negative impact on performance. The largest individual contributors to performance were CCL Industries Inc., Premium Brands Holdings Corp. and Air Canada. The largest individual detractors from performance were Vermilion Energy Inc., Precision Drilling Corp. and Tourmaline Oil Corp. Investments in MacDonald Dettwiler & Associates Ltd., Hydro One Ltd. and Parkland Fuel Corp. were made during the reporting period. The Fund initiated a position in MacDonald Dettwiler & Associates (MDA), a global leader in satellite technology, after it announced its intention to merge with DigitalGlobe Inc., the leader in highresolution earth imagery. MDA has an attractive combination of favourable longterm fundamentals and an inexpensive valuation stemming from a cyclical downturn in satellite sales and uncertainty around the merger. The market appears to be overlooking a number of positives. One is the rise of UltraHighDefinition video, which requires substantially higher data transmission capacity positive for satellite demand than prior technologies. Another is MDA s opportunity to grow its share of business from NASA and the U.S. military, where it is currently underrepresented. We believe that earnings growth will accelerate and the valuation will expand once the merger is complete. The Fund initiated a position in Hydro One, a pureplay electric utility company with operations in Ontario. The shares traded at an attractive valuation as a result of a bought deal where the Province of Ontario divested approximately 20% of its position. The deal price implied a higher relative dividend yield than competitors which seemed unwarranted given the monopolistic positioning of the company and high visibility on dividend growth. Hydro One is also a natural consolidator of local distribution companies in Ontario which could drive higher earnings growth. The Fund sold out of investments in Tourmaline Oil Corp., Quebecor Inc., Magna International Inc., Shaw Communications Inc., CIBC, Detour Gold Corp., H&R REIT, WestJet Airlines Ltd. and Savanna Energy Services Corp. WestJet was sold due to a lack of conviction in management s growth strategy. The Fund concentrated its Canadian airline exposure with Air Canada which has a much stronger fundamental outlook and a clearly defined growth strategy with a recent history of strong execution by management. The Fund s position in Magna International, one of the world s largest automotive parts manufacturers, was exited due to concerns over peak North American auto sales and valuation reaching the higher end of its historical range. H&R REIT was sold from the Fund to concentrate exposure into higher conviction REIT holding Killam Apartment. H&R exhibited bondlike characteristics due to the lowgrowth nature of the REIT s portfolio, a potential headwind in a rising rate environment. RECENT DEVELOPMENTS Elevated equity valuations are making it challenging to find new investments that we believe offer compelling value. Valuations have expanded and we have taken advantage of the strength in the market to exit, or partially sell, some of the Fund s holdings and will continue doing so as prices approach our valuation targets. As a result, the cash balance in the Fund is higher than normal, though still in the singledigit percent range. Effective January 3, 2017, James Werry became a member of the Independent Review Committee of the Fund. Effective March 13, 2017, units initially issued as Class F units were renamed as Class OF units. CIG 9606
Effective July 15, 2017, CI Investments Inc. replaced Tetrem Capital Management Ltd. as the portfolio advisor to the Fund. RELATED PARTY TRANSACTIONS Manager, Trustee and Portfolio Advisor CI Investments Inc. is the Manager, Trustee and Portfolio Advisor of the Fund. CI Investments Inc. is a subsidiary of CI Financial Corp. The Manager, in consideration of management fees, provided management services required in the daytoday operations of the Fund. The Manager bears all of the operating expenses of the Fund (other than taxes, borrowing costs and new governmental fees) in return for a fixed administration fee. Management fee and fixed administration fee rates as at June 30, 2017, for each of the classes are shown below: Annual management fee rate (%) Annual fixed administration fee rate (%) Class A 2.50 0.20 Class E 1.90 0.20 Class E3 1.88 0.19 Class E4 1.80 0.15 Class E5 1.72 0. Class F 0.90 0.20 Class F3 0.88 0.19 Class F4 0.80 0.15 Class F5 0.72 0. Independent Review Committee The Fund received standing instructions from the Board of Governors ( BoG ) in its capacity as the Independent Review Committee ( IRC ) with respect to the following Related Party Transactions: a) trades in securities of CI Financial Corp.; b) purchases or sales of securities of an issuer from or to another investment fund managed by the Manager (referred to as InterFund Trades ); c) purchases or sales of other investment funds managed by the Manager or their affiliates; and d) mergers of funds with another fund that is subject to National Instrument 812 ( Fund Mergers ). The applicable standing instructions require that Related Party Transactions be conducted in accordance with the Manager s policies and procedures. The Manager is required to advise the IRC of any material breach of a condition of the standing instructions. The standing instructions require, among other things, that the investment decisions in respect to Related Party Transactions (a) are made by the Manager free from any influence by any entities related to the Manager and without taking into account any consideration to any affiliate of the Manager; (b) represent the business judgment of the Manager uninfluenced by considerations other than the best interests of the Fund; and (c) are made in compliance with the Manager s policies and procedures. Transactions made by the Manager under the standing instructions are subsequently reviewed by the IRC on a quarterly basis to monitor compliance. The Fund relied on the IRC s standing instructions regarding Related Party Transactions during this reporting period. Class I Paid directly by investor Class OF 1.50 0.20 Class W Paid directly by investor 0.20 The Manager received 1.9 million in management fees and 0.3 million in fixed administration fees for the period. Management Fees Approximately 21% of total management fees were used to pay for sales and trailing commissions and other services required. The remaining 79% of management fees were used to pay for investment management and other general administration. Principal Distributor The Manager has the exclusive right to arrange for the distribution of units of the Fund. Pursuant to a series of agreements, the right to distribute such units has been granted, on a collective basis, to the following dealers, each of which is an affiliate of the Manager. Assante Capital Management Ltd. Assante Financial Management Ltd.
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 the past six periods, as applicable. Net Assets per Unit () (1) (2) (8) * Class A Commencement of operations December 28, 2006 Six Months Ended r Ended r Ended r Ended r Ended r Ended 31, 2016 31, 2015 31, 2014 31, 2013 31, 2012^ 12.91 11.29 12.27 11.64 9.21 8.68 0.14 0.29 0.31 0.27 0.26 0.22 (0.19) (0.34) (0.35) (0.36) (0.30) (0.27) 0.56 0.26 0.30 0.64 0.43 0.19 (0.46) 1.33 (1.17) 0.19 2.01 0.40 0.05 1.54 (0.91) 0.74 2.40 0.54 12.95 12.91 11.29 12.27 11.64 9.19 12,124 13,494 15,700 20,595 26,327 30,628 936 1,045 1,390 1,678 2,262 3,327 53.16 34.72 38.83 28.27 27.60 0.11 0.09 0.11 0.09 2.70 2.70 2.70 2.70 2.70 2.70 0.22 0.22 0.23 0.24 0.26 0.27 2.92 2.92 2.93 2.94 2.96 2.97 8.09 8.27 8.48 8.82 9.45 9.86 Class E Commencement of operations September, 2008 Six Months Ended r Ended r Ended r Ended r Ended r Ended 31, 2016 31, 2015 31, 2014 31, 2013 31, 2012^ 15.31 13.31 14.37 13.54.65 9.98 0.17 0.34 0.37 0.32 0.30 0.26 (0.18) (0.32) (0.33) (0.34) (0.28) (0.24) 0.67 0.47 0.26 0.70 0.54 0.21 (0.54) 1.63 (1.38) 0.13 2.37 0.42 0.12 2.12 (1.08) 0.81 2.93 0.65 15.40 15.31 13.31 14.37 13.54.63 156,976 180,913 144,770 127,928 5,361 64,119,196 11,820,878 8,902 7,780 6,022 53.16 34.72 38.83 28.27 27.60 0.11 0.09 0.11 0.09 2. 2. 2. 2. 2. 2. 0.23 0.23 0.23 0.23 0.23 0.21 2.33 2.33 2.33 2.33 2.33 2.31 11.17 11.07 11.05.94 11.16.11 ^Historical figures are based on Canadian GAAP, for more details refer to footnote 7.
Net Assets per Unit () (1) (2) (8) * Class E3 0.04 (0.04) 0.20 (0.35) (0.15) 9.93 25,587 2,576 2.07 0.27 2.34 Class E4 0.04 (0.04) 0.17 (0.34) (0.17) 9.94 2,270 228 1.95 0.25 2.20 4
Net Assets per Unit () (1) (2) (8) * Class E5 0.05 (0.03) 0.11 (0.34) (0.21) 9.94 1,113 112 1.82 0.24 2.06 Class F 0.05 (0.02) 0.14 (0.29) (0.12) 9.96 486 49 1. 0.14 1.24 5
Net Assets per Unit () (1) (2) (8) * Class F3 0.04 (0.02) 0.11 (0.22) (0.09) 9.95 270 27 1.07 0.14 1.21 Class F4 0.04 (0.02) 0.30 (0.37) (0.05) 9.95 29 3 0.95 0.14 1.09 6
Net Assets per Unit () (1) (2) (8) * Class F5 0.04 (0.02) 0.30 (0.37) (0.05) 9.96 1 0.82 0.11 0.93 Class I Commencement of operations September 18, 2008 Six Months Ended r Ended r Ended r Ended r Ended r Ended 31, 2016 31, 2015 31, 2014 31, 2013 31, 2012^ 19.17 16.29 17.18 15.82 12.15 11.13 0.21 0.43 0.44 0.37 0.35 0.28 0.86 0.54 0.31 0.83 0.60 0.24 (0.74) 1.99 (1.69) 0.16 2.72 0.50 0.33 2.96 (0.94) 1.36 3.67 1.02 19.51 19.17 16.29 17.18 15.82 12.14 212,823 193,651 164,309 143,237 123,415 97,577,908,0,088 8,336 7,800 8,030 53.16 34.72 38.83 28.27 27.60 0.11 0.09 0.11 0.09 ^Historical figures are based on Canadian GAAP, for more details refer to footnote 7. 7
Net Assets per Unit () (1) (2) (8) * Class OF Commencement of operations October 5, 2007 Six Months Ended r Ended r Ended r Ended r Ended r Ended 31, 2016 31, 2015 31, 2014 31, 2013 31, 2012^ 13.35 11.55 12.42 11.65 9.12 8.52 0.15 0.30 0.32 0.27 0.27 0.22 (0.13) (0.23) (0.23) (0.23) (0.20) (0.17) 0.58 0.38 0.24 0.51 0.51 0.19 (0.47) 1.39 (1.25) (0.40) 1.73 0.35 0.13 1.84 (0.92) 0.15 2.31 0.59 13.45 13.35 11.55 12.42 11.65 9.11 1,984 2,346 1,997 1,941 714 198 147 176 173 156 61 22 53.16 34.72 38.83 28.27 27.60 0.11 0.09 0.11 0.09 1.70 1.70 1.70 1.70 1.70 1.70 0.21 0.18 0.16 0.19 0.21 0.19 1.91 1.88 1.86 1.89 1.91 1.89 12.13.65 9.49 11.19 12.36 11.44 Class W Commencement of operations November 15, 1961 Six Months Ended r Ended r Ended r Ended r Ended r Ended 31, 2016 31, 2015 31, 2014 31, 2013 31, 2012^ 77.57 66.05 69.83 64.44 49.60 45.52 0.86 1.71 1.79 1.51 1.40 1.16 (0.09) (0.15) (0.15) (0.15) (0.12) (0.11) 3.42 1.62 1.57 3.49 2.41 1.03 (2.88) 7.86 (6.70) 1.04 11.00 2.14 1.31 11.04 (3.49) 5.89 14.69 4.22 78.85 77.57 66.05 69.83 64.44 49.53 7,4 113,312 126,162 140,964 157,903 157,416 1,362 1,461 1,9 2,019 2,451 3,174 53.16 34.72 38.83 28.27 27.60 0.11 0.09 0.11 0.09 0.20 0.20 0.20 0.20 0.20 0.20 0.02 0.02 0.02 0.02 0.02 0.02 0.22 0.22 0.22 0.22 0.22 0.22.06 9.97 9.78 9.76 9.95 9.65 ^Historical figures are based on Canadian GAAP, for more details refer to footnote 7. 8
(1) This information is derived from the Fund s semiannual and annual financial statements. (2) Net assets per unit and distributions per unit are based on the actual number of units outstanding for the relevant class at the relevant time. The increase (decrease) in net assets from operations per unit is based on the weighted average number of units outstanding for the relevant class over the fiscal period. (3) Distributions are automatically reinvested in additional units of the Fund. (4) Management expense ratio is calculated based on expenses charged to the Fund (excluding commissions and other portfolio transaction costs) and is expressed as an annualized percentage of daily average net assets for the period. The Effective HST tax rate is calculated using the attribution percentage for each province based on unitholder residency and can be different from 13%. (5) The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 0% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the fiscal 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 period. There is not necessarily a relationship between a higher turnover rate and the performance of a Fund. Portfolio turnover rate is calculated by dividing the lesser of the cost of purchases and the proceeds of sales of portfolio securities for the period, and excluding cash and shortterm investments maturing in less than one year, and before assets acquired from a merger, if applicable, by the average of the monthly fair value of investments during the period. (6) The trading expense ratio represents total commissions and other portfolio transaction costs disclosed in the statements of comprehensive income expressed as an annualized percentage of daily average net assets of the Fund during the period. (7) For financial years beginning on or after January 1, 2013 the financial highlights are derived from the financial statements prepared in accordance with International Financial Reporting Standards (IFRS). IFRS allows net assets to be calculated based on the last traded market price for financial assets and financial liabilities where the last traded price falls within the day s bidask spread. There are no differences between the net assets calculated for purpose of processing unitholders transactions and the net assets attributable to holders of redeemable units used for financial statement reporting purposes. For financial years before April 1, 2013, the financial highlights are derived from the financial statements prepared in accordance with Canadian GAAP. Under Canadian GAAP net assets for financial statement purposes were calculated based on bid/ask price while for purpose of processing unitholder transactions net assets were calculated based on the closing market price. (8) This information is provided for the period ended June 30, 2017 and the years ended December 31. 9
PAST PERFORMANCE This section describes how the Fund has performed in the past. Remember, past returns do not indicate how the Fund will perform in the future. The information shown assumes that distributions made by the Fund in the periods shown were reinvested in additional units of the relevant classes of the Fund. In addition, the information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance. rbyr Returns The following charts show the Fund s semiannual and annual performance for each of the periods shown and illustrate how the Fund s performance has changed from period to period. In percentage terms, the charts show how much an investment made on the first day of each financial period would have grown or decreased by the last day of each financial period, except where noted. Class A Class E Class I Class OF 40 30 20 0 20 30 40 3.2 2007 33.7 2008 29.2 2009 13.1 20 13.1 2011 6.0 2012 26.4 2013 5.8 2014 8.3 2015 14.3 2016 Jun. 2017 0.3 40 30 20 0 20 30 40 22.9 2 2008 30.1 2009 13.8 20 12.4 2011 6.6 2012 27.1 2013 6.5 2014 7.7 2015 15.0 2016 Jun. 2017 0.6 40 30 20 0 20 30 40 19.6 3 2008 32.8 2009 16.4 20.4 2011 9.1 2012 30.2 2013 9.0 2014 5.5 2015 17.7 2016 Jun. 2017 1.8 40 30 20 0 20 30 40 3.0 1 2007 33.0 2008 30.6 2009 14.3 20 12.1 2011 6.9 2012 27.7 2013 7.0 2014 7.3 2015 15.6 2016 Jun. 2017 0.7 Class W 40 30 20 0 20 30 40 6.0 2007 31.9 2008 32.6 2009 16.2 20.6 2011 8.9 2012 29.9 2013 8.7 2014 5.7 2015 2016 17.4 Jun. 2017 1.7 1 For the period from October 5, 2007 to December 31, 2007. 2 For the period from September, 2008 to December 31, 2008. 3 For the period from September 18, 2008 to December 31, 2008.
Summary of Investment Portfolio as at June 30, 2017 Portfolio Breakdown Percentage of Portfolio Breakdown (cont d) Percentage of Top 25 Holdings Percentage of Category Net Assets (%) Category Net Assets (%) Security Name Net Assets (%) Country allocation Canada... 62.4 U.S.A.... 20.9 Cash & Equivalents... 14.9 Netherlands Antilles... 0.9 Ireland... 0.5 Other Net Assets (Liabilities)... 0.2 Foreign Currency Forward Contracts... 0.2 Sector allocation Financials... 25.1 Energy... 18.9 Cash & Equivalents... 14.9 Industrials... 12.5 Information Technology... 6.1 Consumer Discretionary... 6.0 Materials... 5.5 Health Care... 3.1 Real Estate... 2.7 Consumer Staples... 2.3 Utilities... 2.2 Private Placements... 0.3 Other Net Assets (Liabilities)... 0.2 Foreign Currency Forward Contracts... 0.2 Cash & Equivalents... 14.9 Royal Bank of Canada... 6.3 The Bank of Nova Scotia... 4.8 TorontoDominion Bank... 4.2 Manulife Financial Corp.... 3.0 Canadian National Railway Co.... 3.0 Enbridge Inc.... 2.9 CCL Industries Inc., Class B... 2.9 Suncor Energy Inc.... 2.8 Keyera Corp.... 2.6 Canadian Natural Resources Ltd.... 2.6 CGI Group Inc.... 2.3 Air Canada... 2.3 Killam Apartment Real Estate Investment Trust... 2.2 Hydro One Ltd.... 2.2 Artizia Inc.... 2.1 Vermilion Energy Inc.... 2.0 Agrium Inc.... 1.8 Premium Brands Holdings Corp.... 1.7 MacDonald Dettwiler & Associates Ltd.... 1.5 Intact Financial Corp.... 1.4 Microsoft Corp.... 1.3 Alphabet Inc., Class C... 1.3 Exchange Income Corp.... 1.1 CI Financial Corp.... 1.1 Total Net Assets (in 000 s) 521,082 The summary of investment portfolio may change due to ongoing portfolio transactions of the Fund and updates will be available on a quarterly basis. A NOTE ON FORWARDLOOKING STATEMENTS This report may contain forwardlooking statements about the Fund, its future performance, strategies or prospects, and possible future Fund action. The words may, could, should, would, suspect, outlook, believe, plan, anticipate, estimate, expect, intend, forecast, objective, and similar expressions are intended to identify forwardlooking statements. Forwardlooking statements are not guarantees of future performance. Forwardlooking statements involve inherent risks and uncertainties, both about the Fund and general economic factors, so it is possible that predictions, forecasts, projections and other forwardlooking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forwardlooking statement made by the Fund. These factors include, but are not limited to, general economic, political and market factors in Canada, the United States and internationally, interest and foreign exchanges rates, global equity and capital markets, business competition, technological changes, changes in laws and regulations, judicial or regulatory judgments, legal proceedings and catastrophic events. The above list of important factors that may affect future results is not exhaustive. Before making any investment decisions, we encourage you to consider these and other factors carefully. All opinions contained in forwardlooking statements are subject to change without notice and are provided in good faith but without legal responsibility.