Renaissance Global Small-Cap Fund Annual Management Report of Fund Performance for the financial year ended August 31, 2017 All figures are reported in Canadian dollars unless otherwise noted This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the investment fund If you have not received a copy of the annual financial statements with this annual management report of fund performance, you can get a copy of the annual financial statements at your request, and at no cost, by calling us toll-free at 1-888-888-FUND (3863), by writing to us at Renaissance Investments, 1500 Robert-Bourassa Boulevard, Suite 800, Montreal, QC, H3A 3S6, by visiting the SEDAR website at sedarcom, or by visiting renaissanceinvestmentsca Unitholders may also contact us using one of these methods to request a copy of the investment fund s proy voting policies and procedures, proy voting disclosure record, or quarterly portfolio disclosure Management Discussion of Fund Performance Investment Objective and Strategies Investment Objective: Renaissance Global Small-Cap Fund (the Fund) seeks to achieve long-term growth through capital appreciation, consistent with preservation of capital, through investment primarily in the common shares of smaller, less-established companies in developed markets around the world The Fund may also invest in smaller, less-established companies in less-developed markets around the world, and may invest in companies that are suppliers or clients of smaller companies Investment Strategies: The Fund invests based on a bottom-up approach, with an emphasis on both growth and special situations The portfolio sub-advisor looks for companies with well-articulated business plans, eperienced management, a sustainable competitive advantage, and strong financial characteristics when selecting investments for the Fund The portfolio sub-advisor will also apply valuation analysis to identify those companies with attractive fundamental, growth, and valuation characteristics Risk The Fund is a global small/mid-cap equity fund that is suitable for long-term investors who can tolerate medium to high investment risk Effective September 11, 2017, the Fund's risk rating was changed from "medium to high" to "medium" This risk rating change is not a result of changes to the investment objectives, investment strategies or management of the Fund, but is due to the adoption of the new investment risk classification methodology under NI 81-102 Investment Funds, which is described in the Fund s simplified prospectus The Manager will review the risk rating of the Fund at least annually, or whenever the Manager determines the risk rating is no longer appropriate Although the risk rating changed, the overall level of risk remains as discussed in the simplified prospectus Results of Operations The portfolio sub-advisor of the Fund is Wasatch Advisors, Inc (the sub-advisor) The commentary that follows provides a summary of the results of operations for the period ended August 31, 2017 All dollar figures are epressed in thousands, unless otherwise indicated The Fund's net asset value increased by 2% during the period, from $12,653 as at August 31, 2016 to $12,865 as at August 31, 2017 Positive investment performance was partially offset by net redemptions of $860, resulting in an overall increase in net asset value Class A units of the Fund posted a return of 77% for the period The Fund s benchmark, the MSCI World Small Cap Inde (the benchmark), returned 122% for the same period The Fund s return is after the deduction of fees and epenses, unlike the benchmark's return See Past Performance for the returns of other classes of units offered by the Fund Global stock markets rose during the period in response to encouraging corporate earnings, positive political developments in Europe and epectations of higher policy rates following years of quantitative easing (monetary policy used by central banks to increase money supply) The outcome of the US presidential election in November 2016 contributed to the global equity market rebound and a decline in longer-term credit markets Heightened tensions concerning North Korea dominated news headlines toward the end of the period, but had little effect on global equity markets In terms of currencies, however, the uncertainties of negotiations for the UK to eit the European Union and tensions with North Korea weighed on the British pound and the US dollar, while the euro strengthened Following the US presidential election, investors appeared to be optimistic about the prospects of value-oriented, cyclical companies, which outperformed in late 2016 This shifted in early 2017 and throughout August as investors turned away from investment areas susceptible to political issues, such as health care and financials, and increased their focus on the potential of individual companies
Renaissance Global Small-Cap Fund Stocks in Europe benefited from economic growth and the European Central Bank s commitment to monetary accommodation France was one of the best-performing developed markets after the election of a president focused on economic growth, which includes a stimulus plan to increase spending on health care UK stocks declined as the country continued negotiations to eit the European Union Japan posted strong returns as earnings eceeded epectations as a result of improved capital spending and continued strength in eports In November 2016, the Indian government s surprise decision to demonetize large-denomination bank notes weighed on Indian stocks However, Indian stocks advanced in 2017 on positive economic news and the government s implementation of a nationwide goods-and-services ta and identity card system Eposure to Germany was the most significant detractor from performance as a result of the Fund s holdings in Patrizia Immobilien AG Stock selection, and a slight overweight eposure to Australia, also detracted from performance In terms of sectors, a significant overweight allocation to the information technology sector was the most significant detractor from performance, as stock-specific factors had a negative impact on the sector s performance Significant individual detractors included Domino s Pizza Enterprises Ltd, Patrizia and Cornerstone OnDemand Inc Domino s share price declined following a disappointing earnings report released late in the period The company s annual profits missed epectations as a result of slow sales in Japan and France, and management forecasted that earnings growth would be slower The company has taken steps to rectify the issues in France, and the sub-advisor believes that its long-term growth potential remains intact Patrizia s guidance regarding performance-based fees created uncertainty among investors There was also a significant increase in investments to epand marketing operations outside of Europe, which led to lower profit forecasts for the coming year Cornerstone recently missed epectations on earnings, but reported stronger sales The sub-advisor is concerned about new contracts, which are larger on a per-contract basis than is ideal for broad-based growth Stock selection in the US was the most significant contributor to performance, particularly in the health care and consumer discretionary sectors In terms of sectors, a significant overweight allocation to the health care sector was the most significant contributor to performance From an individual security perspective, French pharmaceutical company Ipsen SA was the most significant contributor The company has transitioned into a global supplier of oncology products and is using its global sales force to sell an increasing number of products Other significant individual contributors included Seria Co Ltd and Frutarom Industries Ltd Seria has a best-in-class inventory management system, and has been able to continually grow store count, sales and net income Frutarom Industries Ltd announced its sith acquisition this year The company has eperienced strong margin epansion, its pipeline for future business appears strong and it is well positioned in the health- and natural-foods industry The sub-advisor added three new Japanese holdings to the Fund Nihon M&A Center Inc, which specializes in the purchase and sale of businesses, is benefiting from the country s business consolidation trend in a number of industries Demographics are also supportive, as many business owners are approaching retirement and may wish to sell GMO Payment Gateway Inc is the market leader in Japan in payment-processing services for credit card transactions The trend toward online transactions should support its long-term growth Yume No Machi Souzou Iinkai Co Ltd is set to benefit from the trend toward online food ordering The Fund s eisting holdings in Medy-To Inc and Makemytrip Ltd were increased Medyto is a Korean manufacturer of neurotoins for cosmetic applications and the treatment of muscular disorders The company s share price declined last year amid capacity constraints The sub-advisor took the opportunity to add to the holding for its long-term prospects MakeMyTrip is an online travel agency in India focused on hotel bookings and customized holiday packages Its merger with ibibo Group leaves it well positioned to benefit from increased online travel planning The sub-advisor eliminated Cornerstone after the company missed its earnings estimates The Fund s holding in Rightmove PLC was trimmed given uncertainties surrounding the UK s eit from the European Union and the company s ties to the UK housing market The Fund s lower portfolio turnover rate for the period reflects the Fund s epected level of activity The higher portfolio turnover rate for the previous period was due to a sub-advisor change Recent Developments Effective April 27, 2017, the composition of the Independent Review Committee (IRC) changed Tim Kennish and William Thornhill resigned as members of the IRC and Susan Silma and Bryan Houston were appointed as members of the IRC Effective September 1, 2017, the annual management fee payable was reduced from 225% to 200% in respect of Class A units of the Fund, and from 125% to 100% in respect of Class F units of the Fund Related Party Transactions CIBC and its affiliates have the following roles and responsibilities with respect to the Fund, and receive the fees described below in connection with their roles and responsibilities Manager, Trustee, and Portfolio Advisor of the Fund CAMI, a wholly-owned subsidiary of CIBC, is the Fund's Manager, Trustee, and Portfolio Advisor CAMI receives management fees with respect to the Fund's day-to-day business and operations, calculated based on the net asset value of each respective class of units of the Fund as described in Management Fees As Trustee, CAMI holds title to the Fund's property (cash and securities) on behalf of its unitholders As Portfolio Advisor, CAMI provides, or arranges to provide, investment advice and portfolio management services to the 2
Renaissance Global Small-Cap Fund Fund CAMI also compensates dealers in connection with their marketing activities regarding the Fund From time to time, CAMI may provide seed capital to the Fund Distributor Dealers and other firms sell units of the Fund to investors These dealers and other firms include CIBC s related dealers such as the CIBC Investor s Edge discount brokerage division of CIBC Investor Services Inc (CIBC ISI), the CIBC Imperial Service division of CIBC ISI, and the CIBC Wood Gundy division of CIBC World Markets Inc (CIBC WM) CIBC ISI and CIBC WM are wholly-owned subsidiaries of CIBC CAMI may pay sales commissions and trailing commissions to these dealers and firms in connection with the sale of units of the Fund These dealers and other firms may pay a portion of these sales commissions and trailing commissions to their advisors who sell units of the Fund to investors Brokerage Arrangements and Soft Dollars The Portfolio Advisor makes decisions, including the selection of markets and dealers and the negotiation of commissions, with respect to the purchase and sale of portfolio securities, and the eecution of portfolio transactions Brokerage business may be allocated by the Portfolio Advisor to CIBC WM and CIBC World Markets Corp, each a subsidiary of CIBC CIBC WM and CIBC World Markets Corp may also earn spreads on the sale of fied income securities and other securities to the Fund A spread is the difference between the bid and ask prices for a security in the applicable marketplace, with respect to the eecution of portfolio transactions The spread will differ based upon various factors such as the nature and liquidity of the security Dealers, including CIBC WM and CIBC World Markets Corp, may furnish goods and services, other than order eecution, when CAMI processes trades through them (referred to in the industry as soft-dollar arrangements) These goods and services are paid for with a portion of brokerage commissions and assist CAMI with investment decision-making services for the Fund or relate directly to the eecution of portfolio transactions on behalf of the Fund The fees and spreads for services of the Custodian directly related to the eecution of portfolio transactions by the Fund are paid by CAMI and/or dealer(s) directed by CAMI, up to the amount of the credits generated under soft dollar arrangements from trading on behalf of the Fund during that month In addition, the Manager may enter into commission recapture arrangements with certain dealers with respect to the Fund Any commission recaptured will be paid to the Fund During the period, the Fund did not pay any brokerage commissions or other fees to CIBC WM or CIBC World Markets Corp Spreads associated with fied income and other securities are not ascertainable and, for that reason, cannot be included when determining these amounts Fund Transactions The Fund may enter into one or more of the following transactions (the Related Party Transactions) in reliance on the standing instructions issued by the Independent Review Committee (IRC): l l l l l invest in or hold equity securities of CIBC or issuers related to a portfolio sub-advisor; invest in or hold non-echange-traded debt securities of CIBC or an issuer related to CIBC in a primary offering and in the secondary market; make an investment in the securities of an issuer for which CIBC WM, CIBC World Markets Corp, or any affiliate of CIBC (a Related Dealer) acts as an underwriter during the offering of the securities at any time during the 60-day period following the completion of the offering of such securities (in the case of a private placement offering, in accordance with the eemptive relief order granted by the Canadian securities regulatory authorities and in accordance with the policies and procedures relating to such investment); purchase equity or debt securities from or sell them to a Related Dealer, where it is acting as principal; and purchase securities from or sell securities to another investment fund or a managed account managed by the Manager or an affiliate of the Manager At least annually, the IRC reviews the Related Party Transactions for which they have issued standing instructions The IRC is required to advise the Canadian securities regulatory authorities, after a matter has been referred to or reported to it by the Manager, if it determines that an investment decision was not made in accordance with conditions imposed by securities legislation or the IRC in any Related Party Transactions requiring its approval Custodian CIBC Mellon Trust Company is the custodian of the Fund (the Custodian) The Custodian holds all cash and securities for the Fund and ensures that those assets are kept separate from any other cash or securities that the custodian might be holding The Custodian also provides other services to the Fund including record-keeping and processing of foreign echange transactions The fees and spreads for services of the Custodian directly related to the eecution of portfolio transactions by the Fund are paid by CAMI and/or dealer(s) directed by CAMI, up to the amount of the credits generated under soft dollar arrangements from trading on behalf of the Fund during that month All other fees and spreads for the services of the Custodian are paid by the Manager and charged to the Fund on a recoverable basis CIBC owns a 50% interest in the Custodian Service Provider CIBC Mellon Global Securities Services Company (CIBC GSS) provides certain services to the Fund, including securities lending, fund accounting and reporting, and portfolio valuation Such servicing fees are paid by the Manager and charged to the Fund on a recoverable basis CIBC indirectly owns a 50% interest in CIBC GSS 3
Renaissance Global Small-Cap Fund 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 period ended August 31 The Fund's Net Assets per Unit¹ - Class A Units Net Assets, beginning of period $ 1797 $ 1790 $ 1547 $ 1254 $ 954 Increase (decrease) from operations: Total revenue $ 009 $ 036 $ 032 $ 031 $ 025 Total epenses (055) (063) (059) (052) (034) Realized gains (losses) for the period 025 200 225 250 110 Unrealized gains (losses) for the period 160 (177) 039 049 198 Total increase (decrease) from operations 2 $ 139 $ (004) $ 237 $ 278 $ 299 Distributions: From income (ecluding dividends) $ $ $ $ $ From dividends From capital gains Return of capital Total Distributions 3 $ $ $ $ $ Net Assets, end of period $ 1935 $ 1797 $ 1790 $ 1547 $ 1253 1 This information is derived from the Fund's audited annual financial statements The Fund adopted IFRS on September 1, 2014 Previously, the Fund prepared its financial statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Fund measured fair values of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for long positions and ask prices for short positions As such, the net assets per unit figure presented in the financial statements may differ from the net asset value calculated for fund pricing purposes An eplanation of these differences can be found in the notes to the financial statements issued prior to September 1, 2014 Upon adoption of IFRS, the Fund measures the fair value of its investments by using the close market prices, where the close market price falls within the bid-ask spread As such, the Fund's accounting policies for measuring the fair value of investments in the financial statements are consistent with those used in measuring the net asset value for transactions with unitholders Accordingly, the opening net asset figure as at September 1, 2013 reflects the adjusted amount in accordance with IFRS All figures presented for periods prior to September 1, 2013 were prepared in accordance with Canadian GAAP 2 Net assets and distributions are based on the actual number of units outstanding at the relevant time The total increase (decrease) from operations is based on the weighted average number of units outstanding during the period 3 Distributions were paid in cash, reinvested in additional units of the Fund, or both Ratios and Supplemental Data - Class A Units Total Net Asset Value (000s) 4 $ 8,111 $ 8,480 $ 11,254 $ 10,446 $ 6,424 Number of Units Outstanding 4 419,251 472,009 628,569 675,076 512,378 Management Epense Ratio 5 280% 311% 310% 309% 307% Management Epense Ratio before waivers or absorptions 6 387% 446% 431% 467% 545% Trading Epense Ratio 7 007% 023% 020% 020% 026% Portfolio Turnover Rate 8 2532% 12387% 7208% 7195% 8965% Net Asset Value per Unit $ 1935 $ 1797 $ 1790 $ 1547 $ 1254 4 This information is presented as at August 31 of the period(s) shown 5 Management epense ratio is based on the total epenses of the fund (ecluding commissions and other portfolio transaction costs), incurred by or allocated to a class of units for the period shown, epressed as an annualized percentage of the daily average net asset value of that class during the period 6 The decision to waive and/or absorb management fees and operating epenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating epenses may continue indefinitely or may be terminated at any time without notice to unitholders 7 The trading epense ratio represents total commissions and other portfolio transaction costs before income taes epressed as an annualized percentage of the daily average net asset value during the period Spreads associated with fied income securities trading are not ascertainable and, for that reason, are not included in the trading epense ratio calculation The trading epense ratio includes the fees attributable to echange-traded funds 8 The portfolio turnover rate indicates how actively the portfolio advisor and/or portfolio sub-advisor manages the portfolio investmentsa portfolio turnover rate of 100% is equivalent to a fund buying and selling all of the securities in its portfolio once in the course of the period The higher a portfolio turnover rate in a period, the greater the trading costs payable by a fund in the period, and the greater the chance of an investor receiving taable capital gains in the year There is not necessarily a relationship between a high turnover rate and the performance of a fund 4
Renaissance Global Small-Cap Fund The Fund's Net Assets per Unit¹ - Class F Units Net Assets, beginning of period $ 1585 $ 1562 $ 1334 $ 1069 $ 804 Increase (decrease) from operations: Total revenue $ 008 $ 032 $ 028 $ 027 $ 017 Total epenses (035) (037) (034) (030) (020) Realized gains (losses) for the period 023 189 197 216 128 Unrealized gains (losses) for the period 138 (154) 050 048 092 Total increase (decrease) from operations 2 $ 134 $ 030 $ 241 $ 261 $ 217 Distributions: From income (ecluding dividends) $ $ $ $ $ From dividends From capital gains Return of capital Total Distributions 3 $ $ $ $ $ Net Assets, end of period $ 1722 $ 1585 $ 1562 $ 1334 $ 1069 1 This information is derived from the Fund's audited annual financial statements The Fund adopted IFRS on September 1, 2014 Previously, the Fund prepared its financial statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Fund measured fair values of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for long positions and ask prices for short positions As such, the net assets per unit figure presented in the financial statements may differ from the net asset value calculated for fund pricing purposes An eplanation of these differences can be found in the notes to the financial statements issued prior to September 1, 2014 Upon adoption of IFRS, the Fund measures the fair value of its investments by using the close market prices, where the close market price falls within the bid-ask spread As such, the Fund's accounting policies for measuring the fair value of investments in the financial statements are consistent with those used in measuring the net asset value for transactions with unitholders Accordingly, the opening net asset figure as at September 1, 2013 reflects the adjusted amount in accordance with IFRS All figures presented for periods prior to September 1, 2013 were prepared in accordance with Canadian GAAP 2 Net assets and distributions are based on the actual number of units outstanding at the relevant time The total increase (decrease) from operations is based on the weighted average number of units outstanding during the period 3 Distributions were paid in cash, reinvested in additional units of the Fund, or both Ratios and Supplemental Data - Class F Units Total Net Asset Value (000s) 4 $ 759 $ 574 $ 333 $ 240 $ 190 Number of Units Outstanding 4 44,100 36,194 21,352 17,999 17,785 Management Epense Ratio 5 196% 196% 195% 196% 197% Management Epense Ratio before waivers or absorptions 6 254% 281% 261% 295% 328% Trading Epense Ratio 7 007% 023% 020% 020% 026% Portfolio Turnover Rate 8 2532% 12387% 7208% 7195% 8965% Net Asset Value per Unit $ 1722 $ 1585 $ 1562 $ 1334 $ 1069 4 This information is presented as at August 31 of the period(s) shown 5 Management epense ratio is based on the total epenses of the fund (ecluding commissions and other portfolio transaction costs), incurred by or allocated to a class of units for the period shown, epressed as an annualized percentage of the daily average net asset value of that class during the period 6 The decision to waive and/or absorb management fees and operating epenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating epenses may continue indefinitely or may be terminated at any time without notice to unitholders 7 The trading epense ratio represents total commissions and other portfolio transaction costs before income taes epressed as an annualized percentage of the daily average net asset value during the period Spreads associated with fied income securities trading are not ascertainable and, for that reason, are not included in the trading epense ratio calculation The trading epense ratio includes the fees attributable to echange-traded funds 8 The portfolio turnover rate indicates how actively the portfolio advisor and/or portfolio sub-advisor manages the portfolio investmentsa portfolio turnover rate of 100% is equivalent to a fund buying and selling all of the securities in its portfolio once in the course of the period The higher a portfolio turnover rate in a period, the greater the trading costs payable by a fund in the period, and the greater the chance of an investor receiving taable capital gains in the year There is not necessarily a relationship between a high turnover rate and the performance of a fund 5
Renaissance Global Small-Cap Fund The Fund's Net Assets per Unit¹ - Class O Units Net Assets, beginning of period $ 2878 $ 2780 $ 2329 $ 1830 $ 1350 Increase (decrease) from operations: Total revenue $ 015 $ 057 $ 049 $ 047 $ 037 Total epenses (004) (013) (010) (009) Realized gains (losses) for the period 040 325 344 372 155 Unrealized gains (losses) for the period 268 (261) 069 083 284 Total increase (decrease) from operations 2 $ 319 $ 108 $ 452 $ 493 $ 476 Distributions: From income (ecluding dividends) $ $ $ $ $ From dividends From capital gains Return of capital Total Distributions 3 $ $ $ $ $ Net Assets, end of period $ 3187 $ 2878 $ 2780 $ 2329 $ 1829 1 This information is derived from the Fund's audited annual financial statements The Fund adopted IFRS on September 1, 2014 Previously, the Fund prepared its financial statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP) as defined in Part V of the CPA Canada Handbook Under Canadian GAAP, the Fund measured fair values of its investments in accordance with CICA Handbook Section 3855 which required the use of bid prices for long positions and ask prices for short positions As such, the net assets per unit figure presented in the financial statements may differ from the net asset value calculated for fund pricing purposes An eplanation of these differences can be found in the notes to the financial statements issued prior to September 1, 2014 Upon adoption of IFRS, the Fund measures the fair value of its investments by using the close market prices, where the close market price falls within the bid-ask spread As such, the Fund's accounting policies for measuring the fair value of investments in the financial statements are consistent with those used in measuring the net asset value for transactions with unitholders Accordingly, the opening net asset figure as at September 1, 2013 reflects the adjusted amount in accordance with IFRS All figures presented for periods prior to September 1, 2013 were prepared in accordance with Canadian GAAP 2 Net assets and distributions are based on the actual number of units outstanding at the relevant time The total increase (decrease) from operations is based on the weighted average number of units outstanding during the period 3 Distributions were paid in cash, reinvested in additional units of the Fund, or both Ratios and Supplemental Data - Class O Units Total Net Asset Value (000s) 4 $ 3,995 $ 3,599 $ 3,709 $ 3,161 $ 2,237 Number of Units Outstanding 4 125,353 125,057 133,423 135,681 122,213 Management Epense Ratio 5 000% 001% 000% 000% 000% Management Epense Ratio before waivers or absorptions 6 014% 015% 014% 030% 049% Trading Epense Ratio 7 007% 023% 020% 020% 026% Portfolio Turnover Rate 8 2532% 12387% 7208% 7195% 8965% Net Asset Value per Unit $ 3187 $ 2878 $ 2780 $ 2329 $ 1830 4 This information is presented as at August 31 of the period(s) shown 5 Management epense ratio is based on the total epenses of the fund (ecluding commissions and other portfolio transaction costs), incurred by or allocated to a class of units for the period shown, epressed as an annualized percentage of the daily average net asset value of that class during the period 6 The decision to waive and/or absorb management fees and operating epenses is at the discretion of the Manager The practice of waiving and/or absorbing management fees and operating epenses may continue indefinitely or may be terminated at any time without notice to unitholders 7 The trading epense ratio represents total commissions and other portfolio transaction costs before income taes epressed as an annualized percentage of the daily average net asset value during the period Spreads associated with fied income securities trading are not ascertainable and, for that reason, are not included in the trading epense ratio calculation The trading epense ratio includes the fees attributable to echange-traded funds 8 The portfolio turnover rate indicates how actively the portfolio advisor and/or portfolio sub-advisor manages the portfolio investmentsa portfolio turnover rate of 100% is equivalent to a fund buying and selling all of the securities in its portfolio once in the course of the period The higher a portfolio turnover rate in a period, the greater the trading costs payable by a fund in the period, and the greater the chance of an investor receiving taable capital gains in the year There is not necessarily a relationship between a high turnover rate and the performance of a fund 6
Renaissance Global Small-Cap Fund Management Fees The Fund pays CAMI an annual management fee to cover the costs of managing the Fund Management fees are based on the net asset value of the Fund and are calculated daily and paid monthly Management fees are paid to CAMI in consideration for providing, or arranging for the provision of, management, distribution, and portfolio advisory services Advertising and promotional epenses, office overhead epenses, and trailing commissions are paid by CAMI out of the management fees received from the Fund The Fund is required to pay applicable taes on the management fees paid to CAMI Refer to the simplified prospectus for the annual management fee rate for each class of units For Class O units, the management fee is negotiated with and paid by, or as directed by, unitholders or dealers and discretionary managers on behalf of unitholders Such Class O management fee will not eceed the Class A unit management fee rate The following table shows a breakdown of the services received in consideration of the management fees, as a percentage of the management fees collected from the Fund for the period ended August 31, 2017 These amounts do not include waived fees or absorbed epenses ClassAUnits ClassFUnits Sales and trailing commissions paid to dealers 3194% 000% General administration, investment advice, and profit 6806% 10000% Past Performance The performance data provided assumes reinvestment of distributions only and does not take into account sales, redemption, distribution, or other optional charges payable by any unitholder that would have reduced returns Past performance does not necessarily indicate how a fund will perform in the future The Fund s returns are after the deduction of fees and epenses, and the difference in returns between classes of units is primarily due to differences in the management epense ratio See Financial Highlights for the management epense ratio Year-by-Year Returns These bar charts show the annual performance of each class of units of the Fund for each of the periods shown, and illustrate how the performance has changed from period to period These bar charts show, in percentage terms, how an investment made on September 1 would have increased or decreased by August 31, unless otherwise indicated Class A Units 60% 30% 0% -30% -162% -152% -28% 70% 50% 313% 234% 157% 04% 77% -60% 08 09 10 11 12 13 14 15 16 17 7
Renaissance Global Small-Cap Fund Class F Units 60% 30% 0% -30% -153% -143% -17% 82% 61% 328% 248% 170% 15% 86% -60% 08 09 10 11 12 13 14 15 16 17 Class O Units 60% 30% 0% 01% 103% 82% 354% 273% 193% 35% 107% -30% -138% -127% -60% 08 09 10 11 12 13 14 15 16 17 Annual Compound Returns This table shows the annual compound return of each class of units of the Fund for each indicated period ended on August 31, 2017 The annual compound return is also compared to the Fund s benchmark The Fund's benchmark is the MSCI World Small-Cap Inde 1 Year 3 Years 5 Years 10 Years* or Since Inception* Inception Date Class A units 77% 77% 152% 46% February 2, 1998 MSCI World Small-Cap Inde 122% 127% 188% 87% Class F units 86% 89% 164% 58% January 31, 2001 MSCI World Small-Cap Inde 122% 127% 188% 87% Class O units 107% 110% 187% 78% January 2, 2001 MSCI World Small-Cap Inde 122% 127% 188% 87% * If a class of units has been outstanding for less than 10 years, the annual compound return since inception is shown MSCI World Small-Cap Inde captures small-cap representation across 23 Developed Markets (DM) countries DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US A discussion of the Fund's relative performance compared to its benchmark can be found in Results of Operations 8
Renaissance Global Small-Cap Fund Summary of Investment Portfolio (as at August 31, 2017) The summary of investment portfolio may change due to ongoing portfolio transactions of the investment fund A quarterly update is available by visiting renaissanceinvestmentsca The Top Positions table shows a fund s 25 largest positions For funds with fewer than 25 positions in total, all positions are shown % of Net Asset Portfolio Breakdown Value United States 467 Other Equities 132 Japan 124 United Kingdom 71 Israel 37 France 33 India 31 South Korea 30 Cash 27 Germany 23 Australia 20 Other Assets, less Liabilities 05 % of Net Asset Top Positions Value Frutarom Industries Ltd 32 Makemytrip Ltd 31 Ultimate Software Group Inc (The) 29 Cavium Inc 27 Cash 27 Envestnet Inc 27 Seria Co Ltd 24 Copart Inc 24 Ensign Group Inc (The) 23 Ipsen SA 22 Knight Transportation Inc 22 Tre Co Inc 21 Metro Bank PLC 20 Ollie's Bargain Outlet Holdings Inc 20 Cimpress NV 20 HealthEquity Inc 19 Abcam PLC 19 MercadoLibre Inc 19 Signature Bank 18 Medy-To Inc 18 Nihon M&A Center Inc 18 HubSpot Inc 15 LGI Homes Inc 15 MISUMI Group Inc 14 Callidus Software Inc 14 9
A note on Forward-looking Statements The management report of fund performance may contain forward-looking statements Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as epects, anticipates, intends, plans, believes, estimates, or other similar wording In addition, any statements that may be made concerning future performance, strategies, or prospects and possible future actions taken by the fund, are also forward-looking statements Forward-looking statements are not guarantees of future performance These statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results and achievements of the fund to differ materially from those epressed or implied by such statements Such factors include, but are not limited to: general economic, market, and business conditions; fluctuations in securities prices, interest rates, and foreign currency echange rates; changes in government regulations; and catastrophic events The above list of important factors that may affect future results is not ehaustive Before making any investment decisions, we encourage you to consider these and other factors carefully CIBC Asset Management Inc does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments, or otherwise prior to the release of the net management report of fund performance
Renaissance Investments 1500 Robert-Bourassa Boulevard, Suite 800 Montreal, Quebec H3A 3S6 1-888-888-FUND (3863) Website renaissanceinvestmentsca CIBC Asset Management Inc, the manager and trustee of the Renaissance Investments family of funds, is a wholly-owned subsidiary of Canadian Imperial Bank of Commerce Please read the Renaissance Investments family of funds and Aiom Portfolios simplified prospectus before investing To obtain a copy of the simplified prospectus, call 1-888-888-FUND (3863), email us at info@renaissanceinvestmentsca, or ask your advisor Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc 02401E (201708)