Annual Financial Statements for the financial year ended August 31, 2017 Statements of Financial Position (in 000s, ecept per unit amounts) As at August 31, 2017 and 2016 (note 1) Assets August 31, 2017 August 31, 2016 Current assets Investments (non-derivative financial assets) (notes 2 and 3) $ 39,984 $ 45,178 Cash including foreign currency holdings, at fair value 87 542 Margin 38 38 Cash collateral received for securities on loan (note 2j) 632 Interest receivable 76 89 Dividends receivable 85 63 Receivable for portfolio securities sold 439 622 Receivable for units issued 36 121 Derivative assets 174 1 Total Assets 40,919 47,286 Liabilities Current liabilities Obligation to repay cash collateral under securities lending (note 2j) 632 Payable for portfolio securities purchased 456 853 Payable for units redeemed 225 183 Distributions payable to holders of redeemable units 37 39 Derivative liabilities 7 25 Total Liabilities 725 1,732 Net Assets Attributable to Holders of Redeemable Units (note 5) $ 40,194 $ 45,554 Net Assets Attributable to Holders of Redeemable Units per A $ 36,990 $ 43,478 F $ 3,204 $ 2,076 O $ $ Net Assets Attributable to Holders of Redeemable Units per Unit (note 5) A $ 981 $ 1007 F $ 867 $ 875 O $ 838 $ 859 Organization of the Fund (note 1) The Fund was established on November 8, 2002 (Date Established) Inception Date A February 4, 2003 F October 14, 2005 O July 13, 2005 Securities Lending The tables that follow indicate the Fund had assets involved in securities lending transactions outstanding as at August 31, 2017 and 2016: Aggregate Value of Securities on Loan Aggregate Value of Collateral for Loan August 31, 2017 1,100 1,158 August 31, 2016 2,283 2,385 Collateral Type* i ii iii iv August 31, 2017 1,158 August 31, 2016 632 1,753 * See note 2j for Collateral Type definitions The accompanying notes are an integral part of these financial statements 1
Statements of Comprehensive Income (in 000s, ecept per unit amounts) For the periods ended August 31, 2017 and 2016 (note 1) August 31, 2017 August 31, 2016 Net Gain (Loss) on Financial Instruments Interest for distribution purposes $ 378 $ 406 Dividend revenue 932 1,115 Other changes in fair value of investments and derivatives Net realized gain (loss) on sale of investments and derivatives 5,708 2,171 Net realized gain (loss) on foreign currency (notes 2f and g) (16) (49) Net change in unrealized appreciation (depreciation) of investments and derivatives (4,474) 338 Net Gain (Loss) on Financial Instruments ± 2,528 3,981 Other Income Foreign echange gain (loss) on cash 1 Securities lending revenue ±± 8 3 9 3 Epenses (note 6) Management fees ±±± 889 1,006 Audit fees 14 13 Custodial fees 60 56 Independent review committee fees 1 Legal fees 1 1 Regulatory fees 24 22 Transaction costs ±±±± 62 30 Unitholder reporting costs 114 133 Withholding taes (note 7) 6 5 Other epenses 2 2 1,172 1,269 Epenses waived/absorbed by the Manager (206) (219) 966 1,050 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units (ecluding distributions) 1,571 2,934 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units per (ecluding distributions) A $ 1,457 $ 2,796 F $ 114 $ 138 O $ $ Average Number of Units Outstanding for the Period per A 4,044 4,536 F 324 224 O Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units per Unit (ecluding distributions) A $ 036 $ 061 F $ 036 $ 063 O $ 027 $ 043 ±±± Maimum Chargeable Management Fee Rates (note 6) A 190% F 090% O 000% ±±±± Brokerage Commissions and Fees (notes 8 and 9) 2017 2016 Brokerage commissions and other fees Total Paid 60 30 Paid to CIBC World Markets Inc 5 3 Paid to CIBC World Markets Corp Soft dollars Total Paid 37 19 Paid to CIBC World Markets Inc and CIBC World Markets Corp 3 2 Administrative and Other Fund Operating Epenses (note 9) 2017 2016 49 59 Service Provider (note 9) The amounts paid by the Fund (including all applicable taes) to CIBC Mellon Trust Company for custodialfees, and to CIBC Mellon GlobalSecuritiesServicesCompany (CIBC GSS) for securities lending, fund accounting and reporting, and portfolio valuation (all net of absorptions) for the periods ended August 31, 2017 and 2016 were as follows: 2017 2016 33 29 ± Net gain (loss) on Financial Instruments Net Gain (Loss) Category August 31, 2017 August 31, 2016 Financial assets at FVTPL: Held for Trading $ 153 $ (26) Designated at Inception 2,375 4,007 Total financial assets at FVTPL $ 2,528 $ 3,981 ±± Securities Lending Revenue (note 2j) (in 000s) August 31, 2017 August 31, 2016 %ofgross securities lending revenue (in 000s) %ofgross securities lending revenue Gross securities lending revenue $ 11 1000 $ 8 1000 Interest paid on collateral 4 500 Withholding taes Agent fees - Bank of New York Mellon Corp (The) 3 273 1 125 Securities lending revenue $ 8 727 $ 3 375 2 The accompanying notes are an integral part of these financial statements
Statements of Changes in Net Assets Attributable to Holders of Redeemable Units (in 000s) For the periods ended August 31, 2017 and 2016 (note 1) A Units F Units O Units August 31, 2017 August 31, 2016 August 31, 2017 August 31, 2016 August 31, 2017 August 31, 2016 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units (ecluding distributions) $ 1,457 $ 2,796 $ 114 $ 138 $ $ Distributions Paid or Payable to Holders of Redeemable Units From net investment income (1,659) (1,860) (127) (82) Return of capital (751) (844) (30) (26) (2,410) (2,704) (157) (108) Redeemable Unit Transactions Amount received from the issuance of units 5,025 5,648 1,795 586 Amount received from reinvestment of distributions 1,970 2,192 139 103 Amount paid on redemptions of units (12,530) (12,854) (763) (637) (5,535) (5,014) 1,171 52 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units (6,488) (4,922) 1,128 82 Net Assets Attributable to Holders of Redeemable Units at Beginning of Period 43,478 48,400 2,076 1,994 Net Assets Attributable to Holders of Redeemable Units at End of Period $ 36,990 $ 43,478 $ 3,204 $ 2,076 $ $ Redeemable Units Issued and Outstanding (note 5) As at August 31, 2017 and 2016 Balance - beginning of period 4,319 4,829 237 233 Redeemable units issued 496 573 203 68 Redeemable units issued on reinvestments 195 222 16 12 5,010 5,624 456 313 Redeemable units redeemed (1,239) (1,305) (86) (76) Balance - end of period 3,771 4,319 370 237 Net Capital and Non-Capital Losses (note 7) As at December 2016, the Fund had non-capital and capital losses (in $000s) for income ta purposes available to be carried forward as follows: Total Net Capital Losses Total Non-Capital Losses that Epire in: 2026 to 2036 9,192 The accompanying notes are an integral part of these financial statements 3
Statements of Cash Flows (in 000s) For the periods ended August 31, 2017 and 2016 (note 1) Cash Flows from Operating Activities August 31, 2017 August 31, 2016 Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units fromoperations (ecluding distributions) $ 1,571 $ 2,934 Adjustments for: Foreign echange loss (gain) on cash (1) Net realized (gain) loss on sale of investments and derivatives (5,708) (2,171) Net change in unrealized (appreciation) depreciation of investments and derivatives 4,474 (338) Purchase of investments (38,926) (27,108) Proceeds from the sale of investments 44,949 35,023 Interest receivable 13 (1) Dividends receivable (22) 14 6,350 8,353 Cash Flows from Financing Activities Amount received from the issuance of units 6,905 6,123 Amount paid on redemptions of units (13,251) (13,440) Distributions paid to unitholders (460) (524) (6,806) (7,841) Increase (Decrease) in Cash during the Period (456) 512 Foreign Echange Loss (Gain) on Cash 1 Cash (Bank Overdraft) at Beginning of Period 542 30 Cash (Bank Overdraft) at End of Period $ 87 $ 542 Interest received $ 391 $ 405 Dividends received, net of withholding taes $ 904 $ 1,124 4 The accompanying notes are an integral part of these financial statements
Schedule of Investment Portfolio As at August 31, 2017 Number Security of Shares CANADIAN EQUITIES Consumer Discretionary Cineple Inc 9,280 335 356 Gildan Activewear Inc 10,140 378 397 Quebecor Inc, 'B' 11,746 464 561 Shaw Communications Inc, 'B' 20,630 564 575 1,741 1,889 47% Consumer Staples Alimentation Couche-Tard Inc, 'B' 8,289 301 494 Loblaw Cos Ltd 8,560 625 580 Saputo Inc 9,810 413 414 1,339 1,488 37% Energy ARC Resources Ltd 31,067 709 510 Bonavista Energy Corp 131,040 346 360 Canadian Natural Resources Ltd 20,000 694 769 Enbridge Inc 19,220 989 960 Ensign Energy Services Inc 46,980 324 296 Inter Pipeline Ltd 24,454 614 559 Keyera Corp 37 2 1 Pembina Pipeline Corp 24,160 1,028 972 Suncor Energy Inc 24,420 898 956 Tourmaline Oil Corp 16,080 426 392 TransCanada Corp 6,590 333 418 6,363 6,193 154% Financials Bank of Nova Scotia 22,787 1,295 1,770 Brookfield Asset Management Inc, 'A' 32,613 1,158 1,611 Canadian Imperial Bank of Commerce 11,800 1,013 1,238 Fairfa Financial Holdings Ltd 1,290 720 837 Genworth MI Canada Inc 3,878 141 140 Great-West Lifeco Inc 32,180 1,171 1,113 Industrial Alliance Insurance and Financial Services Inc 9,730 535 522 Laurentian Bank of Canada 3,530 191 198 Royal Bank of Canada 13,200 734 1,223 Thomson Reuters Corp 10,988 673 627 Toronto-Dominion Bank (The) 14,309 672 960 Trisura Group Ltd 134 3 3 8,306 10,242 255% Industrials Canadian National Railway Co 8,835 681 894 Toromont Industries Ltd 13,430 636 722 Waste Connections Inc 5,491 416 458 WSP Global Inc 7,880 342 408 2,075 2,482 62% Information Technology Open Tet Corp 12,040 499 484 499 484 12% Materials Agnico Eagle Mines Ltd 6,820 317 437 Chemtrade Logistics Income Fund 28,248 513 528 Franco-Nevada Corp 4,320 334 441 Goldcorp Inc 25,470 415 437 Winpak Ltd 6,782 391 361 1,970 2,204 55% Real Estate Boardwalk REIT 6,390 365 258 365 258 06% Telecommunication Services Rogers Communications Inc, 'B' 8,115 453 529 TELUS Corp 11,430 510 517 963 1,046 26% Utilities Fortis Inc 11,296 402 516 TransAlta Corp 52,950 366 406 768 922 23% TOTAL CANADIAN EQUITIES 24,389 27,208 677% INTERNATIONAL EQUITIES 2 Netherlands (note 10) Unilever NV 6,690 499 497 499 497 13% 1 Switzerland (note 10) Novartis AG, Registered 4,560 500 480 500 480 12% Average Cost Fair Value %of Net Assets The accompanying notes are an integral part of these financial statements 5
Schedule of Investment Portfolio As at August 31, 2017 (cont'd) Number Security of Shares 3 United Kingdom (note 10) Burberry Group PLC 16,850 504 489 504 489 12% 4 United States (note 10) Brookfield Property Partners LP 10,150 306 297 Johnson & Johnson 2,780 500 460 Microsoft Corp 5,320 418 497 Oracle Corp 8,110 501 509 United Parcel Service Inc, 'B' 7,360 1,071 1,051 2,796 2,814 70% TOTAL INTERNATIONAL EQUITIES 4,299 4,280 107% TOTAL EQUITIES 28,688 31,488 784% Security Coupon Rate (%) Maturity Date Additional Details Par Value CANADIAN BONDS Government of Canada & Guaranteed Canada Housing Trust No 1 175% 2022/06/15 5,000 5 5 Canada Housing Trust No 1 190% 2026/09/15 Series '73' 40,000 39 39 Canada Housing Trust No 1 235% 2027/06/15 10,000 10 10 Government of Canada 050% 2022/03/01 25,000 24 24 Government of Canada 275% 2022/06/01 15,000 16 16 Government of Canada 150% 2023/06/01 20,000 20 20 Government of Canada 250% 2024/06/01 55,000 58 58 Government of Canada 150% 2044/12/01 5,000 7 7 Government of Canada 350% 2045/12/01 110,000 141 138 Government of Canada 125% 2047/12/01 10,000 13 12 Government of Canada 275% 2048/12/01 20,000 22 22 355 351 09% Provincial Government & Guaranteed New Brunswick F-M Project Co Inc 647% 2027/11/30 3,084 4 4 Province of British Columbia 495% 2040/06/18 235,000 289 309 Province of New Brunswick 285% 2023/06/02 110,000 114 114 Province of New Brunswick 550% 2034/01/27 Series 'GJ' 5,000 5 6 Province of Ontario 350% 2024/06/02 5,000 6 5 Province of Ontario 650% 2029/03/08 10,000 14 14 Province of Ontario 460% 2039/06/02 135,000 162 168 Province of Quebec 250% 2026/09/01 235,000 238 235 Province of Quebec 625% 2032/06/01 60,000 84 84 Province of Saskatchewan 255% 2026/06/02 105,000 107 105 Province of Saskatchewan 580% 2033/09/05 70,000 98 95 Province of Saskatchewan 340% 2042/02/03 140,000 143 145 Province of Saskatchewan 390% 2045/06/02 215,000 248 244 1,512 1,528 38% Municipal Government & Guaranteed Municipal Finance Authority of British Columbia 488% 2019/06/03 50,000 56 53 Municipal Finance Authority of British Columbia 445% 2020/06/01 150,000 158 161 Municipal Finance Authority of British Columbia 375% 2023/09/26 135,000 148 146 Municipal Finance Authority of British Columbia 250% 2026/04/19 25,000 25 25 Vancouver International Airport Authority 743% 2026/12/07 Series 'B', Step Rate, Callable 30,000 41 42 428 427 10% Mortgage-Backed Securities Genesis Trust II 243% 2019/05/15 'A', Series '2014-1' 15,000 15 15 Genesis Trust II 170% 2020/04/15 Series '15-1' 30,000 30 30 Institutional Mortgage Securities Canada Inc 194% 2024/09/12 'A1', Series '2015-6', Restricted, Callable 26,986 27 26 72 71 02% Corporate 407 International Inc 243% 2027/05/04 Callable 15,000 15 15 407 International Inc 343% 2033/06/01 Callable 10,000 10 10 407 International Inc 575% 2036/02/14 Series '06D1' 118,000 148 151 Alectra Inc 249% 2027/05/17 Series 'A', Callable 25,000 25 24 Alimentation Couche-Tard Inc 390% 2022/11/01 Series '3', Callable 35,000 35 37 Alimentation Couche-Tard Inc 360% 2025/06/02 Series '5', Restricted, Callable 25,000 25 26 AltaGas Ltd 440% 2024/03/15 Callable 35,000 37 38 Bank of Montreal 210% 2020/10/06 Callable 5,000 5 5 Bank of Montreal 161% 2021/10/28 65,000 65 64 Bank of Montreal 227% 2022/07/11 25,000 25 25 Bank of Montreal 617% 2023/03/28 Series 'F', Variable Rate, Callable 220,000 241 226 Bank of Montreal 334% 2025/12/08 Variable Rate, Callable 40,000 42 41 Bank of Montreal 332% 2026/06/01 Variable Rate, Callable 105,000 106 108 Bank of Montreal 270% 2026/12/09 30,000 30 30 Bank of Montreal 257% 2027/06/01 Variable Rate, Callable 35,000 35 35 Bank of Nova Scotia 227% 2020/01/13 20,000 20 20 Bank of Nova Scotia 190% 2021/12/02 60,000 60 59 Bank of Nova Scotia 183% 2022/04/27 55,000 55 54 Bank of Nova Scotia 229% 2024/06/28 65,000 65 64 Average Cost Average Cost Fair Value Fair Value %of Net Assets %of Net Assets 6 The accompanying notes are an integral part of these financial statements
Schedule of Investment Portfolio As at August 31, 2017 (cont'd) Security Coupon Rate (%) Maturity Date Additional Details Par Value Bell Canada 335% 2023/03/22 Series 'M-26', Callable 10,000 10 10 Bell Canada 270% 2024/02/27 Callable 30,000 30 30 Bell Canada 435% 2045/12/18 Callable 20,000 20 20 Blackbird Infrastructure 407 General Partnership 171% 2021/10/08 Series 'B', Variable Rate, Callable 25,000 25 25 British Columbia Ferry Services Inc 470% 2043/10/23 Series '13-1', Restricted, Callable 25,000 25 30 British Columbia Ferry Services Inc 429% 2044/04/28 Series '14-1', Callable 5,000 5 6 Brookfield Asset Management Inc 595% 2035/06/14 25,000 23 29 BRP Finance ULC 514% 2020/10/13 Series '7', Callable 55,000 55 60 BRP Finance ULC 479% 2022/02/07 Callable 5,000 5 5 Bruce Power LP 284% 2021/06/23 Restricted 25,000 25 25 Bruce Power LP 300% 2024/06/21 Series '2017-1', Restricted, Callable 15,000 15 15 Bruce Power LP 401% 2029/06/21 Series '17-2', Callable 15,000 15 16 Canadian Natural Resources Ltd 260% 2019/12/03 Callable 95,000 95 96 Canadian Natural Resources Ltd 331% 2022/02/11 50,000 50 51 Canadian Western Bank 274% 2022/06/16 15,000 15 15 Chartwell Retirement Residences 379% 2023/12/11 Callable 15,000 15 15 Choice Properties REIT 230% 2020/09/14 Series 'E', Callable 30,000 30 30 CT REIT 285% 2022/06/09 Series 'A', Callable 15,000 15 15 CU Inc 409% 2044/09/02 Callable 40,000 40 43 Daimler Canada Finance Inc 178% 2019/08/19 10,000 10 10 Daimler Canada Finance Inc 180% 2019/12/16 25,000 25 25 Dollarama Inc 234% 2021/07/22 Restricted 30,000 30 30 Dream Office REIT 342% 2018/06/13 Series 'A', Callable 55,000 55 55 Enbridge Inc 319% 2022/12/05 20,000 21 20 Enbridge Inc 424% 2042/08/27 Callable 30,000 30 28 Enbridge Income Fund (The) 487% 2044/11/21 Callable 10,000 10 10 Enbridge Pipelines Inc 533% 2040/04/06 Callable 25,000 27 30 Federated Co-Operatives Ltd 392% 2025/06/17 Restricted, Callable 50,000 50 50 Ford Credit Canada Co 245% 2020/05/07 40,000 40 40 Fortis Inc 285% 2023/12/12 Callable 10,000 10 10 Glacier Credit Card Trust 205% 2022/09/20 25,000 25 25 Great-West Lifeco Inc 465% 2020/08/13 Callable 45,000 45 48 HCN Canadian Holdings-1 LP 335% 2020/11/25 10,000 10 10 Hospital Infrastructure Partners (NOH) Partnership 544% 2045/01/31 Series 'A', Sinkable, Callable 43,631 46 51 HSBC Bank Canada 217% 2022/06/29 15,000 15 15 Husky Energy Inc 500% 2020/03/12 Callable 5,000 5 5 Husky Energy Inc 355% 2025/03/12 Callable 35,000 35 36 Husky Energy Inc 360% 2027/03/10 Callable 40,000 40 40 Hydro One Inc 459% 2043/10/09 Callable 15,000 15 17 Intact Financial Corp 377% 2026/03/02 Callable 20,000 20 21 Intact Financial Corp 285% 2027/06/07 Callable 10,000 10 10 Loblaw Cos Ltd 486% 2023/09/12 Callable 45,000 45 50 Magna International Inc 310% 2022/12/15 Callable 5,000 5 5 Manufacturers Life Insurance Co (The) 318% 2027/11/22 Variable Rate, Callable 65,000 65 67 Manulife Financial Capital Trust II 741% 2019/12/31 Series '1', Variable Rate, Callable 50,000 57 56 Manulife Financial Corp 777% 2019/04/08 Callable 130,000 154 141 Master Credit Card Trust II 272% 2018/11/21 Series '13-4' 20,000 21 20 Metro Inc 320% 2021/12/01 Series 'C', Restricted, Callable 15,000 15 15 National Bank of Canada 211% 2022/03/18 25,000 25 25 National Bank of Canada 196% 2022/06/30 35,000 35 34 NBC Asset Trust 745% 2020/06/30 Series '2', Variable Rate, Perpetual 5,000 6 6 North West Redwater Partnership / NWR Financing Co Ltd 280% 2027/06/01 Series 'J', Restricted, Callable 30,000 30 29 North West Redwater Partnership / NWR Financing Co Ltd 415% 2033/06/01 Series 'H', Restricted, Callable 25,000 25 27 Original Wempi Inc 406% 2024/02/13 Series 'B2', Sinkable, Callable 26,867 27 28 Pembina Pipeline Corp 299% 2024/01/22 Callable 10,000 10 10 Pembina Pipeline Corp 371% 2026/08/11 Series '7', Callable 25,000 25 25 Pembina Pipeline Corp 474% 2047/01/21 Callable 30,000 30 30 Plenary Health Care Partnerships Humber LP 482% 2044/11/30 Callable 50,000 51 57 Plenary Properties LTAP LP 629% 2044/01/31 Sinkable, Callable 81,747 106 108 RBC Capital Trust 682% 2018/06/30 Series '2018', Variable Rate, Perpetual 40,000 46 42 RioCan REIT 219% 2021/04/09 Series 'Z' 25,000 25 25 Rogers Communications Inc 400% 2022/06/06 Callable 5,000 5 5 Rogers Communications Inc 611% 2040/08/25 80,000 93 100 Royal Bank of Canada 192% 2020/07/17 60,000 60 60 Royal Bank of Canada 286% 2021/03/04 15,000 15 15 Royal Bank of Canada 203% 2021/03/15 90,000 90 90 Royal Bank of Canada 165% 2021/07/15 65,000 65 64 Royal Bank of Canada 158% 2021/09/13 50,000 50 49 Royal Bank of Canada 197% 2022/03/02 15,000 15 15 Royal Bank of Canada 200% 2022/03/21 50,000 50 49 Royal Bank of Canada 233% 2023/12/05 60,000 60 60 Scotiabank Tier I Trust 780% 2019/06/30 Variable Rate, Callable 25,000 28 27 SGTP Highway Bypass LP 411% 2045/01/31 Series 'A', Sinkable, Callable 30,000 30 31 Smart REIT 405% 2020/07/27 Callable 10,000 11 10 Smart REIT 375% 2021/02/11 Series 'L' 30,000 30 31 Smart REIT 399% 2023/05/30 Series 'I', Callable 50,000 50 52 SNC-Lavalin Group Inc 619% 2019/07/03 Callable 60,000 68 64 SNC-Lavalin Innisfree McGill Finance Inc 663% 2044/06/30 Callable 14,513 18 19 Sobeys Inc 352% 2018/08/08 15,000 15 15 Sobeys Inc 470% 2023/08/08 Callable 45,000 45 47 The accompanying notes are an integral part of these financial statements Average Cost Fair Value %of Net Assets 7
Schedule of Investment Portfolio As at August 31, 2017 (cont'd) Security Coupon Rate (%) Maturity Date Additional Details Par Value Sun Life Financial Inc 277% 2024/05/13 Series '14-1', Variable Rate, Callable 40,000 40 40 Sun Life Financial Inc 260% 2025/09/25 Variable Rate, Callable 10,000 10 10 Sun Life Financial Inc 310% 2026/02/19 Variable Rate, Callable 25,000 25 26 Sun Life Financial Inc 305% 2028/09/19 Variable Rate, Callable 60,000 60 61 Suncor Energy Inc 300% 2026/09/14 Series '5', Callable 30,000 30 30 Suncor Energy Inc 539% 2037/03/26 Callable 70,000 75 81 Suncor Energy Inc 434% 2046/09/13 Series '5', Callable 35,000 35 36 TD Capital Trust IV 663% 2021/06/30 Variable Rate, Callable 110,000 124 125 TELUS Corp 505% 2020/07/23 Series 'CH', Callable 60,000 60 65 TELUS Corp 235% 2022/03/28 Callable 35,000 35 35 TELUS Corp 335% 2023/03/15 Series 'CJ', Callable 50,000 50 52 TELUS Corp 375% 2025/01/17 Callable 35,000 36 37 TELUS Corp 440% 2043/04/01 Callable 150,000 139 148 TELUS Corp 470% 2048/03/06 Series 'CW', Callable 25,000 25 26 Teranet Holdings LP 481% 2020/12/16 Callable 20,000 20 21 Teranet Holdings LP 575% 2040/12/17 Callable 80,000 87 85 Thomson Reuters Corp 331% 2021/11/12 Callable 20,000 20 21 Toronto Dominion Bank (The) 322% 2029/07/25 Variable Rate, Callable 10,000 10 10 Toronto-Dominion Bank (The) 205% 2021/03/08 20,000 20 20 Toronto-Dominion Bank (The) 168% 2021/06/08 Series 'CBL14' 30,000 30 30 Toronto-Dominion Bank (The) 199% 2022/03/23 145,000 146 144 Toronto-Dominion Bank (The) 191% 2023/07/18 45,000 45 44 Toronto-Dominion Bank (The) 486% 2031/03/04 Variable Rate, Callable 105,000 111 117 Toyota Credit Canada Inc 175% 2021/07/21 55,000 55 54 Toyota Credit Canada Inc 202% 2022/02/28 Restricted 26,000 26 26 TransCanada PipeLines Ltd 369% 2023/07/19 Callable 10,000 11 11 TransCanada PipeLines Ltd 435% 2046/06/06 Callable 20,000 20 21 Union Gas Ltd 520% 2040/07/23 Callable 5,000 6 6 Wells Fargo Financial Canada Corp 294% 2019/07/25 45,000 45 46 Wells Fargo Financial Canada Corp 304% 2021/01/29 115,000 117 118 Westcoast Energy Inc 457% 2020/07/02 Callable 10,000 10 11 Westcoast Energy Inc 885% 2025/07/21 85,000 118 116 5,373 5,430 135% TOTAL CANADIAN BONDS 7,740 7,807 194% INTERNATIONAL BONDS Australia Commonwealth Bank of Australia 515% 2020/04/09 5,000 5 5 5 5 00% 3 United Kingdom (note 10) Aviva PLC 450% 2021/05/10 Restricted 25,000 26 27 26 27 01% 4 United States (note 10) Anheuser-Busch InBev Finance Inc 260% 2024/05/15 Restricted, Callable 30,000 30 29 Anheuser-Busch InBev Finance Inc 432% 2047/05/15 Callable 20,000 20 20 Molson Coors International LP 284% 2023/07/15 Callable 60,000 60 60 PepsiCo Inc 215% 2024/05/06 Restricted, Callable 20,000 20 20 Wells Fargo & Co 251% 2023/10/27 20,000 20 20 Wells Fargo & Co 387% 2025/05/21 Series 'O', Restricted 35,000 35 36 185 185 04% TOTAL INTERNATIONAL BONDS 216 217 05% SUPRANATIONAL BONDS Asian Development Bank 465% 2027/02/16 170,000 200 198 Inter-American Development Bank 440% 2026/01/26 65,000 75 74 275 272 07% TOTAL SUPRANATIONAL BONDS 275 272 07% TOTAL BONDS 8,231 8,296 206% TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 36,919 39,784 990% SHORT-TERM INVESTMENTS Government of Canada 074% 2017/11/16 Treasury Bill 200,000 200 200 TOTAL SHORT-TERM INVESTMENTS 200 200 05% Less: Transaction costs included in average cost (36) TOTAL INVESTMENTS 37,083 39,984 995% Margin 38 01% Derivative assets 174 04% Derivative liabilities (7) 00% Other Assets, less Liabilities 5 00% TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS 40,194 1000% 1-4 Hedging reference number Refers to a corresponding number on the Schedule of Derivative Assets and Liabilities - Forward Foreign Currency Contracts Average Cost Fair Value %of Net Assets 8 The accompanying notes are an integral part of these financial statements
Schedule of Derivative Assets and Liabilities - Forward Foreign Currency Contracts (note 10) Hedging Ref No** Counterparty Credit Rating for Counterparty* Settlement Date Currency Buys Par Value Currency Sells Par Value Forward Rate Current Rate Unrealized Gain (Loss) 1 State Street Trust Co Canada A-1+ 2017/11/30 CAD 472,172 CHF 360,000 0762 0764 1 2 Goldman Sachs & Co, New York A-1 2017/10/10 CAD 471,448 EUR 320,000 0679 0672 (5) 3 State Street Trust Co Canada A-1+ 2017/11/30 CAD 431,048 GBP 267,500 0621 0618 (2) 4 Bank of Montreal A-1 2017/09/13 CAD 1,105,183 USD 819,500 0742 0801 82 4 State Street Trust Co Canada A-1+ 2017/09/13 CAD 1,470,495 USD 1,105,000 0751 0801 91 Derivative Assets and Liabilities - Forwards 167 * The credit rating of each counterparty (as rated by S&P Global Ratings, a division of S&P Global) of the forward foreign currency contracts held by the Fund meets or eceeds the minimum designated credit rating ** See corresponding reference number on the Schedule of Investment Portfolio The accompanying notes are an integral part of these financial statements 9
Supplemental Schedule to Schedule of Investment Portfolio Offsetting Arrangements (note 2d) The Fund may enter into various master netting arrangements or other similar agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or the termination of the contracts The following table reconciles the net amount of Over-The-Counter derivatives presented in the Statements of Financial Position, as at August 31, 2017 and 2016, to: l The gross amount before offsetting required under IFRS; and l The net amount after offsetting under the terms of master netting arrangements or other similar arrangements, but which do not meet the criteria for offsetting under IFRS Financial Assets and Liabilities Amounts Offset Amounts Not Offset Net Gross Assets (Liabilities) Amounts Offset Under IFRS Net Amounts Presented on Statements of Financial Position Master Netting Arrangements Cash Collateral Received As at August 31, 2017 OTC Derivative Assets $ 174 $ $ 174 $ (2) $ $ 172 OTC Derivative Liabilities (7) (7) 2 (5) Total 167 167 167 As at August 31, 2016 OTC Derivative Assets $ 1 $ $ 1 $ (1) $ $ OTC Derivative Liabilities (25) (25) 1 (24) Total (24) (24) (24) Interest in Underlying Funds (note 4) As at August 31, 2017 and 2016, the Fund had no investments in Underlying Funds where the ownership eceeded 20% of each Underlying Fund 10 The accompanying notes are an integral part of these financial statements
Financial Instrument Risks Investment Objective: (the Fund) seeks to generate a high level of current cash flow by investing primarily in income-producing securities, including income trusts, preferred shares, common shares, and fied income securities Investment Strategies: The Fund invests using a bottom-up, value oriented approach to provide a consistent, long-term income stream, and capital growth Significant risks that are relevant to the Fund are discussed here General information on risk management and specific discussion on concentration, credit, currency, interest rate, liquidity, and other price/market risk can be found in note 2 of the financial statements In the following risktables, NetAssetsisdefined asmeaning Netassetsattributable to holders of redeemable units" Concentration Risk as at August 31, 2017 and 2016 The Schedule of Investment Portfolio presents the securities held by the Fund as at August 31, 2017 The following table presents the investment sectors held by the Fund as at August 31, 2016, and groups the securities by asset type, industry sector, geographic region, or currency eposure: As at August 31, 2016 %of Portfolio Breakdown Net Assets Canadian Equities Consumer Discretionary 54 Consumer Staples 27 Energy 144 Financials 277 Industrials 59 Information Technology 27 Materials 75 Telecommunication Services 44 Utilities 21 International Equities United States 38 Canadian Bonds Government of Canada & Guaranteed 07 Provincial Government & Guaranteed 37 Municipal Government & Guaranteed 10 Mortgage-Backed Securities 02 Corporate 145 International Bonds United Kingdom 01 United States 04 Supranational Bonds 06 Short-Term Investments 14 Margin 01 Derivative Assets (Liabilities) (01) Other Assets, less Liabilities 08 Total 1000 Credit Risk Credit ratings represent a consolidation of the ratings provided by various outside service providers and are subject to change, which could be material See the Schedule of Investment Portfolio for counterparties related to over-the-counter derivative contracts, where applicable As at August 31, 2017 and 2016, the Fund invested in debt securities with the following credit ratings: % of Net Assets Debt Securities by Credit Rating (note 2b) August 31, 2017 August 31, 2016 'AAA' 41 54 'AA' 45 35 'A' 53 57 'BBB' 70 80 Below 'BBB' 02 Total 211 226 Currency Risk The tables that follow indicate the currencies to which the Fund had significant eposure as at August 31, 2017 and 2016, based on the market value of the Fund's financial instruments (including cash and cash equivalents) and the underlying principal amounts of forward foreign currency contracts, as applicable As at August 31, 2017 Currency (note 2m) Total Currency Eposure* %of Net Assets USD 149 04 GBP 56 01 EUR 24 01 CHF 9 * Amounts reflect the carrying value of monetary and non-monetary items (including the notional amount of forward foreign currency contracts, if any) As at August 31, 2016 Currency (note 2m) Total Currency Eposure* %of Net Assets USD 882 19 * Amounts reflect the carrying value of monetary and non-monetary items (including the notional amount of forward foreign currency contracts, if any) The table that follows indicates how net assets as at August 31, 2017 and 2016 would have decreased or increased had the Canadian dollar strengthened or weakened by 1% in relation to all foreign currencies This analysis assumes that all other variables remain unchanged In practice, the actual results may differ from this analysis and the difference could be material August 31, 2017 August 31, 2016 Impact on Net Assets 2 9 Interest Rate Risk The Fund s short-term assets and liabilities were not subject to significant amounts of risk due to fluctuations in the prevailing level of market interest rates The table that follows indicates the Fund s eposure to fied income securities by remaining term-to-maturity August 31, 2017 August 31, 2016 Remaining Term-to-Maturity Less than 1 year 112 174 1-3 years 1,014 928 3-5 years 1,572 2,324 >5years 5,598 6,215 Total 8,296 9,641 The table that follows indicates how net assets as at August 31, 2017 and 2016 would have increased or decreased had the interest rate decreased or increased by 25 basis points and assuming a parallel shift in the yield curve This change is estimated using the weighted average duration of the fied income portfolio This analysis assumes that all other variables remain unchanged In practice, actual results may differ from this analysis and the difference could be material August 31, 2017 August 31, 2016 Impact on Net Assets 175 213 Liquidity Risk Liquidity risk is the risk that the Fund will encounter difficulty in meeting obligations associated with financial liabilities The Fund is eposed to daily cash redemptions of redeemable units The Fund maintains sufficient cash on hand to fund anticipated redemptions With the eception of derivative contracts, where applicable, all of the Fund s financial liabilities are short-term liabilities maturing within 90 days after the period end For funds that hold derivative contracts with a term-to-maturity that eceeds 90 days from the period end, further information related to those contracts can be referenced in the derivative schedules following the Schedule of Investment Portfolio The accompanying notes are an integral part of these financial statements 11
Other Price/Market Risk The table that follows indicates how net assets as at August 31, 2017 and 2016 would have increased or decreased had the value of the Fund s benchmark(s) increased or decreased by 1% This change is estimated based on the historical correlation between the return of A units of the Fund as compared to the return of the Fund s benchmark(s), using 36 monthly data points, as available, based on the monthly net returns of the Fund This analysis assumes that all other variables remain unchanged The historical correlation may not be representative of the future correlation and, accordingly, the impact on net assets could be materially different Impact on Net Assets Benchmark August 31, 2017 August 31, 2016 S&P/TSX Composite Dividend Inde 287 347 80% S&P/TSX Composite Dividend Inde 359 431 20% FTSE TMX Canada Universe Bond Inde Fair Value Measurement of Financial Instruments The following is a summary of the inputs used as at August 31, 2017 and 2016 in valuing the Fund s financialassets and financialliabilities, carried at fair value: As at August 31, 2017 Level 1 (i) Level 2 (ii) Level 3 (iii) Total ification Financial Assets Fied Income Securities 8,296 8,296 Short-Term Investments 200 200 Equities 31,488 31,488 Derivative assets 3,950 3,950 Total Financial Assets 31,488 12,446 43,934 Financial Liabilities Derivative liabilities (3,783) (3,783) Total Financial Liabilities (3,783) (3,783) Total Financial Assets and Liabilities 31,488 8,663 40,151 (i) Quoted prices in active markets for identical assets (ii) Significant other observable inputs (iii) Significant unobservable inputs As at August 31, 2016 Level 1 (i) Level 2 (ii) Level 3 (iii) Total ification Financial Assets Fied Income Securities 9,641 9,641 Short-Term Investments 624 624 Equities 34,913 34,913 Derivative assets 1,010 1,010 Total Financial Assets 34,913 11,275 46,188 Financial Liabilities Derivative liabilities (1,034) (1,034) Total Financial Liabilities (1,034) (1,034) Total Financial Assets and Liabilities 34,913 10,241 45,154 (i) Quoted prices in active markets for identical assets (ii) Significant other observable inputs (iii) Significant unobservable inputs Transfer of assets between Level 1 and Level 2 Financial assets and liabilities transferred from Level 1 to Level 2 are the result of securities no longer being traded in an active market For the periods ended August 31, 2017 and 2016, there were no transfers of financial assets and liabilities from Level 1 to Level 2 Financial assets and liabilities transferred from Level 2 to Level 1 are the result of securities now being traded in an active market For the periods ended August 31, 2017 and 2016, there were no transfers of financial assets and liabilities from Level 2 to Level 1 Reconciliation of financial asset and liability movement Level 3 The Fund did not hold any significant positions of Level 3 investments at the beginning of, during, or at the end of either reporting period 12 The accompanying notes are an integral part of these financial statements
Notes to Financial Statements As at and for the periods as disclosed in the financial statements (see note 1) 1 Renaissance Investments - Organization of the Funds and Financial Reporting Periods Each ofthe fundsin the Renaissance Investmentsfamilyoffunds (individually, a Fund, and collectively, the Funds) isa mutualfund trust (eceptforrenaissance US DollarCorporate Bond Fund, Renaissance Global FocusCurrencyNeutralFund, Renaissance OptimalGlobalEquityCurrencyNeutralPortfolio, and Renaissance GlobalRealEstate CurrencyNeutralFund, which are unittrusts) The Fundsare organized underthe laws of Ontario and governed by a declaration of trust (Declaration of Trust) The address of the Funds registered office is 18 York Street, Suite 1300, Toronto, Ontario The managerofthe FundsisCIBC AssetManagementInc (the Manager) The Managerisalso the trustee, registrar, portfolio advisor, and transfer agentofthe Funds Each Fund may issue an unlimited number of classes of units and an unlimited number of units of each class In the future, the offering of any classes of a Fund may be terminated or additional classes may be offered The following table indicates the classes of units offered for sale for each of the Funds however, the Manager closed certain classes of units to all purchases on July 21, 2017 and others on September 1, 2017 Please refer to the net tables for the effected classes: Funds A T6 T8 F Premium F-Premium O Renaissance Money Market Fund ü ü ü Renaissance Canadian T-Bill Fund ü ü Renaissance US Money Market Fund ü ü Renaissance Short-Term Income Fund ü ü ü ü ü Renaissance Canadian Bond Fund ü ü ü ü ü Renaissance Real Return Bond Fund ü ü ü ü ü Renaissance Corporate Bond Fund ü ü ü ü ü Renaissance US Dollar Corporate Bond Fund ü ü ü ü ü Renaissance High-Yield Bond Fund ü ü ü ü ü Renaissance Floating Rate Income Fund (also offers H, H-Premium, FH, FH-Premium, and OH units) ü ü ü ü ü Renaissance Fleible Yield Fund (also offers H, H-Premium, FH, FH-Premium, and OH units) ü ü ü ü ü Renaissance Global Bond Fund ü ü ü ü ü Renaissance Canadian Balanced Fund ü ü ü Renaissance US Dollar Diversified Income Fund ü ü ü ü ü Renaissance Optimal Conservative Income Portfolio (also offers T4, Select, Select-T4, Select-T6, Elite, Elite-T4, and Elite-T6 units) ü ü ü ü Renaissance Optimal Income Portfolio (also offers Select, Select-T6, Select-T8, Elite, Elite-T6, and Elite-T8 units) ü ü ü ü ü Renaissance Optimal Growth & Income Portfolio (also offers T4, Select, Select-T4, Select-T6, Select-T8, Elite, Elite-T4, Elite-T6 and Elite-T8 units) ü ü ü ü ü Renaissance Canadian Dividend Fund ü ü ü Renaissance Canadian Monthly Income Fund ü ü ü ü ü ü Renaissance High Income Fund ü ü ü Renaissance Canadian Core Value Fund ü ü ü Renaissance Canadian Growth Fund ü ü ü Renaissance Canadian All-Cap Equity Fund ü ü ü Renaissance Canadian Small-Cap Fund ü ü ü Renaissance US Equity Income Fund (also offers H, FH, FH-Premium, and OH units) ü ü ü ü Renaissance US Equity Value Fund ü ü ü Renaissance US Equity Growth Fund ü ü ü Renaissance US Equity Growth Currency Neutral Fund ü ü ü Renaissance US Equity Fund ü ü ü Renaissance International Dividend Fund ü ü ü Renaissance International Equity Fund ü ü ü Renaissance International Equity Currency Neutral Fund ü ü ü Renaissance Global Markets Fund ü ü ü Renaissance Optimal Global Equity Portfolio (also offers T4, Select, Select-T4, Select-T6, Select-T8, Elite, Elite-T4, Elite-T6, and Elite-T8 units) ü ü ü ü ü Renaissance Optimal Global Equity Currency Neutral Portfolio (also offers T4, Select, Select-T4, Select-T6, Select-T8, Elite, Elite-T4, Elite-T6, and Elite-T8 units) ü ü ü ü ü Renaissance Global Value Fund ü ü ü 13
p/2 Notes to Financial Statements Funds A T6 T8 F Premium F-Premium O Renaissance Global Growth Fund ü ü ü Renaissance Global Growth Currency Neutral Fund ü ü ü Renaissance Global Focus Fund ü ü ü Renaissance Global Focus Currency Neutral Fund ü ü ü Renaissance Global Small-Cap Fund ü ü ü Renaissance China Plus Fund ü ü ü Renaissance Emerging Markets Fund ü ü ü Renaissance Optimal Inflation Opportunities Portfolio (also offers Select and Elite units) ü ü ü Renaissance Global Infrastructure Fund ü ü ü Renaissance Global Infrastructure Currency Neutral Fund ü ü ü Renaissance Global Real Estate Fund ü ü ü Renaissance Global Real Estate Currency Neutral Fund ü ü ü Renaissance Global Health Care Fund ü ü ü Renaissance Global Resource Fund ü ü ü Renaissance Global Science & Technology Fund ü ü ü Each class of units may charge a different management fee and operating epenses can either be common or class-specific -specific epenses are allocated on a class-by-class basis As a result, a separate net asset value per unit is calculated for each class of units A, T4, T6, and T8 units are available to all investors on a load basis Investors may pay a sales commission when purchasing A, T4, T6, and T8 units of the Funds or may pay a deferred sales charge if they redeem their A, T4, T6, and T8 units They may have to pay a short-term trading fee, if applicable Select, Select-T4, Select-T6, and Select-T8 units are available to all investors on a load basis Investors may pay a sales commission when purchasing Select, Select-T4, Select-T6, and Select-T8 units of the Funds or may pay a deferred sales charge if they redeem their Select, Select-T4, Select-T6, and Select-T8 units They may have to pay a short-term trading fee, if applicable Select, Select-T4, Select-T6, and Select-T8 units have a lower management epense ratio than A, T4, T6, and T8 units Select, Select-T4, Select-T6, and Select-T8 units have a minimum investment requirement of $250,000 Elite, Elite-T4, Elite-T6, and Elite-T8 units are available to all investors on a load basis Investors may pay a sales commission when purchasing Elite, Elite-T4, Elite-T6, and Elite-T8 units of the Funds or may pay a deferred sales charge if they redeem their Elite, Elite-T4, Elite-T6, and Elite-T8 units They may have to pay a short-term trading fee, if applicable Elite, Elite-T4, Elite-T6, and Elite-T8 units have a lower management epense ratio than A, T4, T6, T8, Select, Select-T4, Select-T6, and Select-T8 units Elite, Elite-T4, Elite-T6, and Elite-T8 units have a minimum investment requirement of $500,000 T4, T6, and T8 units have the same characteristics as A units, ecept that they each intend to pay a unique maimum fied distribution amount per unit, which also results in a separate net asset value per unit Select-T4, Select-T6, and Select-T8 units are the same as Select units ecept that they each intend to pay a unique maimum fied distribution amount per unit Elite-T4, Elite-T6, and Elite-T8 units are the same as Elite units, ecept that they each intend to pay a unique maimum fied distribution amount per unit F and F-Premium units are available to investors participating in programs that do not require the payment of sales charges by investors and do not require the payment of service fees or trailing commissions to dealers For these investors, the Manager unbundles the typical distribution costs and charges a lower management fee Potential investors include clients of fee-for-service investment advisors, dealer-sponsored wrap accounts, and others who pay an annualfee to their dealer instead of transactionalsales charges and where the dealer does not receive service fees or trailing commissions from the Manager Premium units of Renaissance Money Market Fund are available to investors with a minimum initial investment of $25,000 on a load basis Premium units of Renaissance Short-Term Income Fund, Renaissance Canadian Bond Fund, Renaissance Real Return Bond Fund, Renaissance Corporate Bond Fund, Renaissance US Dollar Corporate Bond Fund, Renaissance High-Yield Bond Fund, Renaissance Floating Rate Income Fund, Renaissance Fleible Yield Fund, Renaissance Global Bond Fund, and Renaissance US Dollar Diversified Income Fund are available to investors with a minimum initial investment of $100,000 on a load basis Investors pay a sales commission when purchasing Premium units of the Funds and may pay a deferred sales charge if they redeem their Premium units They may have to pay a short-term trading fee, if applicable O and OH units are only available to select investors who have been approved by and have entered into a O or OH unit account agreement with the Manager or whose dealer or discretionary manager offers separately managed accounts or similar programs and has entered into a O or OH unit account agreement with the Manager These investors are typically financial services companies, including the Manager, that use Oor OHunitsof a Fund to facilitate offering other productsto investors No management feesor operating epensesare charged to a Fund in respect of Oand OH units; instead, a negotiated management fee is charged by the Manager directly to, or as directed by, O and OH unitholders H, FH, FH-Premium, H-Premium, and OH units (individually a Hedge ) have the same characteristics of A, F, F-Premium, Premium, and O units, respectively, ecept that they each use derivative instruments such as forward foreign currency contracts to hedge foreign currency eposure of the Hedge On July 21, 2017, the Manager announced the closing to all purchases of certain classes of units of the Funds that will subsequently be terminated on or about October 13, 2017 and the closing to all purchases of certain classes of units of the Funds effective September 1, 2017 The effected classes and the respective effective dates of the changes are as follows; Effective September 1, 2017, the following classes of units of the Funds were closed to purchases: Fund Renaissance Money Market Fund T8 Premium H-Premium F-Premium FH-Premium Elite Elite-T4 Elite-T6 Elite-T8 Select Select-T4 Select-T6 Select-T8 ü Renaissance Short Term Income Fund ü ü Renaissance Canadian Bond Fund ü ü Renaissance Real Return Bond Fund ü Renaissance Corporate Bond Fund ü ü Renaissance US Dollar Corporate Bond Fund ü ü Renaissance High Yield Bond Fund ü Renaissance Floating Rate Income Fund ü ü ü 14
Notes to Financial Statements p/3 Premium H-Premium F-Premium FH-Premium Fund T8 Renaissance Fleible Yield Fund ü ü ü Renaissance Global Bond Fund ü ü Renaissance US Dollar Diversified Income Fund ü ü Renaissance Optimal Conservative Income Portfolio ü ü ü Elite Elite-T4 Elite-T6 Elite-T8 Select Select-T4 Select-T6 Renaissance Optimal Income Portfolio ü ü ü ü ü ü ü Renaissance Optimal Growth & Income Portfolio ü ü ü ü ü ü ü Renaissance US Equity Income Fund ü ü Renaissance Optimal Global Equity Portfolio Effective on July 21, 2017, the following classes of units of the Funds were closed to purchases and were subsequently terminated on October 13, 2017: Fund Renaissance Real Return Bond Fund Renaissance High Yield Bond Fund T8 F-Premium ü ü Elite ü Elite-T4 Elite-T6 Elite-T8 Select Select-T4 Renaissance Optimal Conservative Income Portfolio ü ü ü Select-T6 Renaissance Optimal Growth & Income Portfolio ü ü Renaissance Optimal Global Equity Portfolio ü ü ü ü ü ü ü ü Renaissance Optimal Global Equity Curr Neut Portfolio ü ü ü ü ü ü ü ü ü Renaissance Optimal Inflation Opportunities Portfolio ü ü Select-T8 Select-T8 The date upon which each Fund was established by Declaration of Trust (Date Established) and the date upon which each class of units of each Fund was first sold to the public (Inception Date) are reported in footnote Organization of the Fund on the Statements of Financial Position The Schedule of Investment Portfolio of each of the Funds is as at August 31, 2017 The Statements of Financial Position are as at August 31, 2017 and August 31, 2016 The Statements of Comprehensive Income, Statements of Changes in Net Assets Attributable to Holders of Redeemable Units and the Statements of Cash Flows are for the years ended August 31, 2017 and August 31, 2016, ecept for Funds or classes established during either period, in which case the information presented is from the Date Established or the Inception Date to August 31, 2017 or August 31, 2016 These financial statements were approved for issuance by the Manager on November 2, 2017 2 Summary of Significant Accounting Policies These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB) The financialstatements have been prepared on a going concern basis using the historical-cost convention However, each Fund is an investment entity and primarily allfinancialassets and financialliabilities are measured at fair value in accordance with IFRS Accordingly, the Funds accounting policies for measuring the fair value of investments and derivatives are consistent with those used in measuring the Net Asset Value fortransactionswith unitholders In applying IFRS, these financialstatementsinclude estimatesand assumptionsmade bymanagementthataffectthe reported amountsofassets, liabilities, income, and epenses during the reporting periods However, eisting circumstances and assumptions may change due to market changes or circumstances arising beyond the control of the Funds Such changes are reflected in the assumptions when they occur These financial statements have been presented in Canadian dollars, which is the Funds functional currency (unless otherwise noted) a) Financial Instruments ification and recognition of financial instruments In accordance with IAS 39 Financial Instruments: Recognition and Measurement, financial assets and financial liabilities are classified at initial recognition into the following categories: Financialassets and liabilities at fair value through profit or loss (FVTPL) This category is sub-divided into: l Financial instruments classified as Held For Trading: Financial assets and liabilities are classified as Held For Trading if they are acquired for the purpose of selling and/or repurchasing in the near term, and are acquired principally for the purpose of generating a profit from short-term fluctuations in price Derivatives and securities sold short held by the Funds are classified as Held For Trading and do not meet the definition of effective hedging instruments as defined by IAS 39 l Financial instruments designated as FVTPL through inception: All investments held by the Funds, ecluding those classified as Held For Trading (discussed above), are designated as fair value through profit or loss upon initial recognition These financial assets are designated upon initial recognition on the basis that they are part of a group of financial assets that are managed and have their performance evaluated on a fair value basis, in accordance with risk management and investment strategies of the Funds, as set out in the Funds prospectus Loans and receivables The Funds include in this category, receivable balances relating to portfolio investments and other short-term receivables such as receivable for units issued Other financial liabilities This category includes allfinancialliabilities, other than those classified as fair value through profit or loss The Funds include in this category, amounts relating to payablesfor portfolio securities purchased and other accrued liabilities such as payable for units redeemed and distributions payable to holders of redeemable units AllFunds have contractualobligations to distribute cash to the unitholders As a result, the Funds obligation for net assets attributable to holders of redeemable unitsrepresents a financialliability and is presented at the redemption amount b) Risk Management The Funds overall risk management approach includes formal guidelines that govern the etent of eposure to various types of risk, including diversification within asset classes and limits on the eposure to individual investments and counterparties In addition, derivative financial instruments may be used to manage certain risk eposures The Manager also has various internal controls to oversee the Funds investment activities, 15