INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE For the period ended June 0, 07 Global Equity Funds NBI Global Equity Fund (formerly National Bank Global Equity Fund) Notes on forward-looking statements This report may contain forward-looking statements concerning the Fund, its future performance, its strategies or prospects or about future events or circumstances. Such forward-looking statements include, among others, statements with respect to our beliefs, plans, expectations, estimates and intentions. The use of the expressions "foresee", "intend", "anticipate", "estimate", "assume", "believe" and "expect" and other similar terms and expressions indicate forward-looking statements. By their very nature, forward-looking statements imply the use of assumptions and necessarily involve inherent risks and uncertainties. Consequently, there is a significant risk that the explicit or implicit forecasts contained in these forward-looking statements might not materialize or that they may not prove to be accurate in the future. A number of factors could cause future results, conditions or events to differ materially from the objectives, expectations, estimates or intentions expressed in such forward-looking statements. Such differences might be caused by several factors, including changes in Canadian and worldwide economic and financial conditions (in particular interest and exchange rates and the prices of other financial instruments), market trends, new regulatory provisions, competition, changes in technology and the potential impact of conflicts and other international events. The foregoing list of factors is not exhaustive. Before making any investment decision, investors and others relying on our forward-looking statements should carefully consider the foregoing factors and other factors. We caution readers not to rely unduly on these forward-looking statements. We assume no obligation to update forward-looking statements in the light of new information, future events or other circumstances unless applicable legislation so provides. This interim management report of fund performance contains financial highlights, but does not contain the complete interim financial statements of the investment fund. You can get a copy of the interim financial statements at your request, and at no cost, by calling -888-70-9 or 5-87-08, by writing to us at National Bank Investments Advisory Service, 500, Place d Armes, th floor, Montreal, Quebec, HY W, by visiting our website at www.nbc.ca/financial_reports, by visiting SEDAR s website at www.sedar.com, or by contacting your advisor. You 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.
Management Discussion of Fund Performance Results of Operations For the six-month period ended June 0, 07, the NBI Global Equity Fund s Investor Series units returned.6% compared to 7.6% for the Fund s benchmark, the MSCI World Index (CAD). Unlike the benchmark, the Fund s performance is calculated after fees and expenses. Please see the Past Performance section for the returns of all of the Fund s series, which may vary mainly because of fees and expenses. The Fund's net asset value rose by 5% over the period, from $77.5 million as at December, 06 to $,09. million as at June 0, 07. The increase stemmed mainly from investments in the Fund by other NBI Funds and market fluctuations. International equities performed very well in the first half of the year, surpassing Canadian and U.S. markets. In Europe, there were periods of rising and falling political risk, with three major elections taking place in the Netherlands, France and the United Kingdom. In the first two countries, the center-right parties defeated the Eurosceptic parties of Geert Wilders and Marine Le Pen, which seems to demonstrate a slowing in the rise of populist parties on the old continent, and was well received by investors. As for the United Kingdom, the Conservative Party led by Theresa May remained in power, but lost its majority in parliament. This should affect the course of the negotiations on the exit of the United Kingdom from the European Union since Ms. May had called the elections precisely to strengthen her legitimacy to conclude these negotiations. At the economic level, forward-looking indicators were largely positive and were very well received by the market. Only damper was inflation, which declined steadily over the period, even though investors expect a withdrawal of stimuli from the European Central Bank (ECB) in the near term, but President Draghi has commented that the threat of deflation is gone. European equities performed very well in the first six months of the year. Similarly, in Japan, stocks benefited from positive surprises in corporate earnings during the two earnings seasons, as well as companies' optimism for the economy. However, the gains of the Japanese market were limited by the escalation of tensions with North Korea. Given this context, the MSCI World Index posted a return of 7.6% in Canadian dollars. Nine of the eleven sectors ended the period in positive territory, with the other two reducing gains. Information Technology and Health Care were the standout sectors while Energy and Telecommunications Services suffered losses. Under these circumstances, the Fund outperformed its benchmark on a relative basis as well as on an absolute basis. Relative outperformance was mainly driven by the Fund s stock selection in the Financials, Industrials, Consumer Staples and Information Technology sectors. The top contributors to the Fund were Moody s, Keyence, Unilever and Mettler-Toledo. Some of the detractors came in the way of stock selection within the Consumer Discretionary sector with both Tractor Supply and AutoZone declining % year-to-date. Offsetting those two stocks, the Fund s lack of exposure to Energy helped overall relative performance. Recent Developments During the first half of the year, the portfolio manager eliminated the Fund s position in ANZ Bank and Rotork while initiating a position in CME Group. While rising interest rates will be positive for ANZ Bank s net interest margins, the portfolio manager is also mindful of the impact of a potential housing slowdown in the overheated Australian market. On the same token, UK-based valve actuator manufacturer Rotork was sold after the stock rebounded from its lows following the CAPEX slowdown in the Oil & Gas sector. The portfolio manager ultimately decided to consolidate the Fund s positions in its other Industrial companies. In terms of the new addition, CME Group operates the largest Futures Exchange in the world, including the Chicago Mercantile Exchange, NYMEX, COMEX and CBOT exchanges. The company currently boasts a 0% net profit margin and a clean balance sheet. CME has proven to be a great portfolio diversifier and risk-reducer given that futures volumes soar when market volatility spikes. In sum, CME has a very strong track record of execution and capital return to shareholders from its dominant position in a growing industry. As the portfolio manager enters the second half of 07, he remains underweight the euro zone, the United States and Japan, as opportunities in other parts of the world appear more attractive (particularly in Switzerland and emerging markets). In terms of sectors, the portfolio manager is overweight Industrials, Health Care and Consumer Staples while underweight Energy, Utilities and Real Estate. The portfolio manager expects increased volatility in 07, especially with the current U.S. Presidential administration and views on international relations and trade. As a bottom-up stock picker, the portfolio manager remains focused on owning the highest quality stocks at reasonable valuations. Given his quality-focused approach, the portfolio manager would expect to lag the market in a low quality rally or excessively exuberant market where valuations are ignored. Over the years, the Fund has maintained low exposure to commodities, as well as European and Japanese banks and the Eurozone (which could impact performance going forward). On the other hand, the Fund has had a tendency of maintaining an overweight position in Swiss multi-nationals and some exposure to emerging markets. In addition, the Fund s U.K. holdings tend to be export reliant and as such, may benefit from the lower U.K. pound following the Brexit vote. Since March 6, 07, the fund s name changed and is now called the NBI Global Equity Fund. On May 0 07, National Bank Investments Inc. ( NBI ) had announced the results of the proposals voted upon at the special meetings of securityholders of certain NBI Funds held on that day. The proposed fund mergers were part of a series of initiatives that seek to ensure a more streamlined NBI Fund line-up to provide investors with a comprehensive, more clearly defined range of investment products. National Bank Health Sciences Fund had merged with the NBI Global Equity Fund on May, 07. Moreover, the NBI Westwood Global Dividend Fund, the NBI Westwood Global Equity Fund, the NBI European Equity Fund, the NBI Asia Pacific Fund and the NBI Global Small Cap Fund have merged with the NBI Global Equity Fund on May 9, 07. As for the Investor-, Advisor- and F- Series, they were launched on May 9, 07, and are generally not available for new purchases. Related Party Transactions National Bank of Canada ( the Bank ) and its affiliated companies roles and responsibilities related to the Fund are as follows: Trustee, Custodian, and Registrar Natcan Trust Company ( NTC ), a direct or indirect wholly-owned subsidiary of the Bank, is the Fund s trustee. In this capacity, it is the legal owner of the Fund s investments. NTC acts as registrar for the Fund s securities and the names of securityholders. NTC also acts as the Fund s custodian. The fees for NTC s custodial services are based on the standard rates in effect at NTC. Agent for securities lending transactions NTC acts as the agent for securities lending transactions acts on behalf of the Fund in administering securities lending transactions entered into by the Fund. NTC is an affiliate of the Manager.
Fund Manager The Fund is managed by National Bank Investments Inc. ( NBII ), which is a wholly-owned subsidiary of the Bank. Therefore, NBII provides or ensures the provision of all general management and administrative services required by the Fund s current operations, including investment consulting, the arrangement of brokerage contracts for the purchase and sale of the investment portfolio, bookkeeping and other administrative services required by the Fund. The Manager pays the operating expenses of the Fund other than its Fund costs (defined below) (the variable operating expenses ), in exchange for the Fund s payment to the Manager of annual fixed-rate administration fees with respect to each series of the Fund. The administration fees are equal to a specified percentage of the net asset value of each series of the Fund, calculated and paid in the same manner as the Fund s management fees. The variable operating expenses payable by the Manager include, but are not limited to: transfer agency and recordkeeping costs; custodial costs; accounting and valuation fees; audit fees and legal fees; costs of preparing and distributing financial reports, simplified prospectuses, annual information forms, Fund Facts, continuous disclosure material and other securityholder communications; and costs of trustee services relating to registered tax plans, as applicable. In addition to administration fees, the Fund shall also pay certain Fund costs, namely: taxes (including, but not limited to, GST/HST and income taxes); costs of compliance with any changes to existing governmental or regulatory requirements introduced after August, 0; costs of compliance with any new governmental or regulatory requirements, including any new fees introduced after August, 0; interest and borrowing costs; costs related to external services that were not commonly charged in the Canadian mutual fund industry as at August, 0; Independent Review Committee costs, including compensation paid to IRC members, travel expenses, insurance premiums and costs associated with their continuing education; and variable operating expenses incurred outside of the normal course of business of the Fund. The Manager may, from time to time and at its sole discretion, decide to absorb a portion of a series management fees, administration fees or Fund costs. As described under the heading Management Fees, the Fund pays annual management fees to NBII as consideration for its services. Distribution and Dealer Compensation NBII acts as principal distributor for the Fund. In this capacity, NBII buys, sells and swaps securities through Bank branches and the National Bank Investments Advisory Service in Canadian provinces and territories, and through external registered representatives. Fund securities are also offered by National Bank Direct Brokerage Inc., CABN Investments Inc., National Bank Financial Inc., and other affiliated entities. Brokers may receive, depending on the distributed series, a monthly commission representing a percentage of the average daily value of the securities held by their clients. Brokerage Fees The Fund may pay broker s commissions at market rates to a corporation affiliated with NBII. The brokerage fees paid by the Fund for the period are as follows: Period ended June 0, 07 Total brokerage fees $6,8.08 Brokerage fees paid to National Bank Financial - Holdings As at June 0, 07, National Bank of Canada held 09,.85 Fund securities for a value of $,0,0.0, which represented close to 0.966% of the net asset value of the Fund at that date. Transactions between National Bank of Canada and the Fund were carried out in the normal course of business and at the Fund s net asset value as at the transaction date. As at June 0, 07, National Bank Investments Inc. held 80.0 Fund securities for a value of $8,70.0, which represented close to 0.0008% of the net asset value of the Fund at that date. Transactions between National Bank Investments Inc. and the Fund were carried out in the normal course of business and at the Fund s net asset value as at the transaction date. Registered Plan Trust Services NTC receives a fixed amount per registered account for services provided as trustee for registered plans. Administrative and Operating Services The provision of certain services was delegated by the Fund Manager, NBII, to National Bank Trust Inc. ("NBT"), a wholly-owned indirect subsidiary of the Bank. These include accounting, reporting and portfolio valuation services. The fees incurred for these services are paid to NBT by the Fund manager. Management Fees The Fund pays annual management fees to the Fund manager for its management services. The fees are calculated based on a percentage of the Fund s daily net asset value before applicable taxes and are paid on a monthly basis. A portion of the management fees paid by the Fund covers maximum annual trailer fees and sales commissions paid to brokers. The remainder of the management fees primarily covers investment management and general administration services. The breakdown of major services provided in consideration of the management fees, expressed as an approximate percentage of the management fees is as follows: Series Management Fees Distribution Others Investor Series.5% 55.56%.% Investor- Series.00% 6.50% 7.50% Advisor Series and Series T5* Front-end load.5% 55.56%.% Back-end load - to 6 years.5%.% 77.78% Back-end load - 7 years and more.5% 55.56%.% Low load - to years.5%.% 77.78% Low load - years and more.5%.% 55.56% Advisor- Series* Front-end load.00% 6.50% 7.50% Back-end load - to 6 years.00% 5.00% 75.00% Back-end load - 7 years and more.00% 6.50% 7.50% Low load - to years.00% 5.00% 75.00% Low load - years and more.00% 50.00% 50.00% Series F and Series F5 0.95% 00.00% Series F- 0.75% 00.00% Series O N/A** 00.00% ( ) Includes all costs related to management, investment advisory services, general administration and profit. (*) Excluding sales commissions paid on the Advisor Series, Advisor- Series and Series T5 with low sales charges option and deferred sales charge option, which are not paid for out of the management fees. (**) There are no management fees paid by the Fund with respect to the Series O. Instead, Series O securityholders pay a negociated administration fee directly to National Bank Investments.
Past Performance The performance of each series of the Fund is presented below and calculated as at December of each year. It assumes that all distributions made in the periods shown were reinvested in additional securities and does not take into account sales, redemption charges, distributions, or optional charges that would have reduced returns. Past performance of a series of a Fund does not necessarily indicate how it will perform in the future. Annual Returns The bar charts indicate the performance for each the Fund's series in existence greater than one year during the years shown, and illustrate how the performance has changed from year to year. They show, in percentage terms, how much an investment made on January (or made commencing from the start of the series) would have grown or decreased by December of that year, or by June 0, as applicable.* *Please note that financial years prior to 009 are from October to September 0. 60% 0% 0% 0% -0% -0% 8. -.8-7.9.88 007 008 009 00 0 Investor Series -5.0. 0.57 0.8 8.08 0.00 0 05 06.6 07 60% 0% 0% 0% -0% -0% 5% 0% 5% 0% 5% 0% 0.98 -.8 -.57 5.65 Series O -.8 007 008 009 00 0 7. 0 Series T5 7. 0 6.58.0.88 0 8.89 0 05 8.0 05 06 0.0 06 Returns for the 5-month period from October, 008 to December, 009. Returns for the period from December, 0 (commencement of operations) to December, 0. Returns for the period from May, 0 (commencement of operations) to December, 0 Returns for the period from January, 07 to June 0, 07..5 07.67 07 60% 0% Advisor Series.57 0% 0% -0% -0% 8. -7.9 -.8 007 008 009.88 00-5.0 0. 0 0 0.00 0 05 06.6 07 5% 0% 5% Series F.9 9.85.9 0% 5% 0%.0 0 0 05.58 06 07 5% 0% Series F5 9.7 5% 0% 9.90.9 5% 0% 0 05.57 06 07
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 accounting periods shown. Investor / Advisor Series Net Assets per Unit () Accounting Period Ended 07 06 05 0 0 0 June 0 December December December December December $ $ $ $ $ $ Net Assets, Beginning of Accounting Period Shown ().. 0.5 9.6 6.9 6.08 Total revenue 0. 0.8 0. 0.9 0.5 0. Total expenses (0.0) (0.5) (0.) (0.8) (0.) (0.8) Realized gains (losses).9 0. 0.86 0.5 0.5 0.95 Unrealized gains (losses) (.8) (0.7).6.0.95 (0.0) Total ().57 (0.0).00.0. 0.86 From net investment income (excluding dividends) 0.0 From dividends From capital gains Return of capital Total Annual () 0.0 Net Assets, End of Accounting Period Shown ().96.. 0.5 9.6 6.9 units outstanding over the accounting period. The detailed calculation of the total as at December, 05 has been adjusted to reflect the proper allocation between the following items: Total revenue, Total expenses, Realized gain (losses) and/or Unrealized gain (losses). It is a non-material correction related to a programming error in the ratio calculation. The net assets value at the end of the 0 accounting period may differ from the value at the beginning of the 0 accounting period. Since January, 0, the net assets are calculated in accordance with IFRS. Previously, it was the accounting principles as set out in Part V of the CPA Canada Handbook - Accounting ( Canadian GAAP ). Accounting Period Ended 07 06 05 0 0 0 June 0 December December December December December Total net asset value (000's of $) () 7, 689,85 7,8 65,06 5,997 5,588 Number of units outstanding () 5,85,98 55,59,0 57,6,667 6,70,05 57,60,896 65,6,965 Management expense ratio (%) ().85.85.85.8.80.6.85.85.85.8.8.6 Trading expense ratio (%) () 0.05 0.0 0.0 0.05 0.0 0. Portfolio turnover rate (%) ().59.9 0.69.50 0.7 5.9 Net asset value per unit ($).97.. 0.5 9.7 6.9 accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation 8-06. Since calculating an average daily allocation of the trading expenses would take considerable effort, an average monthly allocation has been used instead for the accounting periods prior to 06. The trading expense ratio history has been adjusted to include the trading expenses from its underlying funds. The calculation method described above has been used. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund
Investor- Series Net Assets per Unit () Accounting Period Ended 07 June 0 ( days) $ Net Assets, Beginning of Accounting Period Shown () 0.00 Total revenue 0.0 Total expenses (0.0) Realized gains (losses) Unrealized gains (losses) (0.) Total () (0.) From net investment income (excluding dividends) From dividends From capital gains Return of capital Total Annual () Net Assets, End of Accounting Period Shown () 9.75 units outstanding over the accounting period. The net assets are calculated in accordance with IFRS. Accounting Period Ended 07 June 0 ( days) Total net asset value (000's of $) () 79,0 Number of units outstanding () 8,6,77 Management expense ratio (%) ().55.55 Trading expense ratio (%) () 0.05 Portfolio turnover rate (%) ().59 Net asset value per unit ($) 9.76 accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation 8-06. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund
Advisor- Series Net Assets per Unit () Accounting Period Ended 07 June 0 ( days) $ Net Assets, Beginning of Accounting Period Shown () 0.00 Total revenue 0.0 Total expenses (0.0) Realized gains (losses) Unrealized gains (losses) (0.) Total () (0.) From net investment income (excluding dividends) From dividends From capital gains Return of capital Total Annual () Net Assets, End of Accounting Period Shown () 9.75 units outstanding over the accounting period. The net assets are calculated in accordance with IFRS. Accounting Period Ended 07 June 0 ( days) Total net asset value (000's of $) () 6,06 Number of units outstanding (),6, Management expense ratio (%) ().55.56 Trading expense ratio (%) () 0.05 Portfolio turnover rate (%) ().59 Net asset value per unit ($) 9.76 accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation 8-06. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund
Series F Net Assets per Unit () Accounting Period Ended 07 06 05 0 0 June 0 December December December December (7 days) $ $ $ $ $ Net Assets, Beginning of Accounting Period Shown ().8.99.67 0. 0.00 Total revenue 0. 0. 0.5 0.0 0.0 Total expenses (0.) (0.8) (0.8) (0.6) Realized gains (losses) 5.9 0.5 0.8 0. 0.0 Unrealized gains (losses) (5.89) (0.7) 0.9.0 0.07 Total () 0.6 0..80.56 0. From net investment income (excluding dividends) 0.0 From dividends From capital gains Return of capital Total Annual () 0.0 Net Assets, End of Accounting Period Shown () 6.06.8.99.67 0. units outstanding over the accounting period. The detailed calculation of the total as at December, 05 has been adjusted to reflect the proper allocation between the following items: Total revenue, Total expenses, Realized gain (losses) and/or Unrealized gain (losses). It is a non-material correction related to a programming error in the ratio calculation. The net assets are calculated in accordance with IFRS. Accounting Period Ended 07 06 05 0 0 June 0 December December December December (7 days) Total net asset value (000's of $) (),66,0,7 69 Number of units outstanding () 87,98,9 6,05 59,57 00 Management expense ratio (%) ().5...0...6..0 7,.5 Trading expense ratio (%) () 0.05 0.0 0.0 0.05 0.0 Portfolio turnover rate (%) ().59.9 0.69.50 0.7 Net asset value per unit ($) 6.07.7.95.6 0. accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation 8-06. Since calculating an average daily allocation of the trading expenses would take considerable effort, an average monthly allocation has been used instead for the accounting periods prior to 06. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund
Series F- Net Assets per Unit () Accounting Period Ended 07 June 0 ( days) $ Net Assets, Beginning of Accounting Period Shown () 0.00 Total revenue 0.0 Total expenses (0.0) Realized gains (losses) Unrealized gains (losses) (0.0) Total () (0.9) From net investment income (excluding dividends) From dividends From capital gains Return of capital Total Annual () Net Assets, End of Accounting Period Shown () 9.77 units outstanding over the accounting period. The net assets are calculated in accordance with IFRS. Accounting Period Ended 07 June 0 ( days) Total net asset value (000's of $) () 9,9 Number of units outstanding (),07,50 Management expense ratio (%) ().. Trading expense ratio (%) () 0.05 Portfolio turnover rate (%) ().59 Net asset value per unit ($) 9.77 accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation 8-06. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund
Series F5 Net Assets per Unit () Accounting Period Ended 07 06 05 0 June 0 December December December ( days) $ $ $ $ Net Assets, Beginning of Accounting Period Shown ().79.6 0.7 0.00 Total revenue 0.9 0.7 0. 0.0 Total expenses (0.09) (0.6) (0.7) (0.08) Realized gains (losses).86 0. 0.8 0.0 Unrealized gains (losses) (.0) (0.7).8 0.69 Total ().56 0.6.07.0 From net investment income (excluding dividends) 0.06 0.09 From dividends From capital gains Return of capital 0.8 0.5 0.5 0.9 Total Annual () 0. 0.6 0.5 0.9 Net Assets, End of Accounting Period Shown ().0.79.6 0.7 units outstanding over the accounting period. The net assets are calculated in accordance with IFRS. Accounting Period Ended 07 06 05 0 June 0 December December December ( days) Total net asset value (000's of $) () Number of units outstanding () 6 08 0 Management expense ratio (%) ().8.5...0..7.9 Trading expense ratio (%) () 0.05 0.0 0.0 0.05 Portfolio turnover rate (%) ().59.9 0.69.50 Net asset value per unit ($).0.78. 0.68 accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation 8-06. Since calculating an average daily allocation of the trading expenses would take considerable effort, an average monthly allocation has been used instead for the accounting periods prior to 06. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund
Series O Net Assets per Unit () Accounting Period Ended 07 06 05 0 0 0 June 0 December December December December December $ $ $ $ $ $ Net Assets, Beginning of Accounting Period Shown () 0.05 9.5 6.07.7 9.98 8.5 Total revenue 0. 0. 0.5 0.9 0. 0.9 Total expenses (0.0) (0.0) (0.0) (0.0) (0.0) Realized gains (losses).98 0.57.0 0.5 0.66.7 Unrealized gains (losses) (.67) (0.5).90.6.86 Total ().6 0.9.5..7. From net investment income (excluding dividends) 0.0 From dividends From capital gains Return of capital Total Annual () 0.0 Net Assets, End of Accounting Period Shown ().8 0.05 9.5 6.07.7 9.98 units outstanding over the accounting period. The detailed calculation of the total as at December, 05 has been adjusted to reflect the proper allocation between the following items: Total revenue, Total expenses, Realized gain (losses) and/or Unrealized gain (losses). It is a non-material correction related to a programming error in the ratio calculation. The net assets value at the end of the 0 accounting period may differ from the value at the beginning of the 0 accounting period. Since January, 0, the net assets are calculated in accordance with IFRS. Previously, it was the accounting principles as set out in Part V of the CPA Canada Handbook - Accounting ( Canadian GAAP ). Accounting Period Ended 07 06 05 0 0 0 June 0 December December December December December Total net asset value (000's of $) () 95,58 79,7 57, 5,78,0 9,569 Number of units outstanding () 8,50,,98,75,96,0,8,850,,55,950,755 Management expense ratio (%) () 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.06 0.07 Trading expense ratio (%) () 0.05 0.0 0.0 0.05 0.0 0. Portfolio turnover rate (%) ().59.9 0.69.50 0.7 5.9 Net asset value per unit ($).85 0.0 9.6 6.0.75 0.0 accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation 8-06. Since calculating an average daily allocation of the trading expenses would take considerable effort, an average monthly allocation has been used instead for the accounting periods prior to 06. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund
Series T5 Net Assets per Unit () Accounting Period Ended 07 06 05 0 June 0 December December December ( days) $ $ $ $ Net Assets, Beginning of Accounting Period Shown ()..96 0.6 0.00 Total revenue 0.9 0.5 0. 0.09 Total expenses (0.7) (0.) (0.) (0.) Realized gains (losses).7 0.5 0.5 0. Unrealized gains (losses) (.) (0.) 0.57 (0.06) Total (). 0.06 0.90 0. From net investment income (excluding dividends) 0.0 0.0 From dividends From capital gains Return of capital 0. 0.59 0.5 0.9 Total Annual () 0. 0.60 0.5 0.9 Net Assets, End of Accounting Period Shown ()...96 0.6 units outstanding over the accounting period. The detailed calculation of the total as at December, 05 has been adjusted to reflect the proper allocation between the following items: Total revenue, Total expenses, Realized gain (losses) and/or Unrealized gain (losses). It is a non-material correction related to a programming error in the ratio calculation. The net assets are calculated in accordance with IFRS. Accounting Period Ended 07 06 05 0 June 0 December December December ( days) Total net asset value (000's of $) () 906 85 56 50 Number of units outstanding () 7,960 75,75 7,5,768 Management expense ratio (%) ().80.8.86.05.8.85.88.05 Trading expense ratio (%) () 0.05 0.0 0.0 0.05 Portfolio turnover rate (%) ().59.9 0.69.50 Net asset value per unit ($)...9 0.58 accounting period. The trading expense ratio includes, if necessary, the trading expenses from its underlying funds, as described in Article 5. of Regulation 8-06. Since calculating an average daily allocation of the trading expenses would take considerable effort, an average monthly allocation has been used instead for the accounting periods prior to 06. The Fund's portfolio turnover rate indicates how actively the Fund portfolio's manager manages its portfolio investments. A portfolio turnover rate of 00% is equivalent to the Fund
Summary of Investment Portfolio As of June 0, 07 Portfolio Top Holdings % of Net Asset Value Moody's Corp. 5.0 Keyence Corp..5 Johnson & Johnson. Becton Dickinson and Co..8 MasterCard Inc., Class A.8 Nestlé SA. Unilever NV, GDR. M Co.. US Bancorp. Diageo PLC.0 Oracle Corp..0 Sherwin-Williams Co./The.0 Intertek Group PLC.8 MSCI Inc..7 Schindler Holding AG.7 Svenska Handelsbanken AB, Class A.6 TJX Companies Inc..6 InterContinental Hotels Group PLC.5 PepsiCo Inc..5 United Technologies Corp..5 Mettler-Toledo International Inc.. Roche Holding AG. Colgate-Palmolive Co.. Taiwan Semiconductor Manufacturing Co. Ltd., ADR. Cash, Money Market and Other Net Assets 0.7 7. Regional Allocation % of Net Asset Value United States 57. Switzerland.8 United Kingdom 9.9 Japan 6. Netherlands. India.6 Sweden.6 Taiwan. China 0. Cash, Money Market and Other Net Assets 0.7 Sector Allocation % of Net Asset Value Industrials. Financials 7.5 Information Technology 6.0 Consumer Discretionary 5.6 Consumer Staples.7 Health Care. Cash, Money Market and Other Net Assets 0.7 Net asset value $,09,6,07 The above table shows the top 5 positions held by the Fund. In the case of a Fund with fewer than 5 positions, all positions are indicated. The Summary of Investment Portfolio may change due to ongoing portfolio transactions of the investment Fund. A quarterly update is available. Please consult our Web site at www.nbc.ca/financial_reports.