Investors Global Science & Technology Fund Annual Management Report of Fund Performance FOR THE PERIOD ENDED MARCH 31, 15 CAUTION REGARDING FORWARD-LOOKING STATEMENTS This report may contain forward-looking statements about the Fund, including its strategy, expected performance and condition. 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 expects, anticipates, intends, plans, believes, estimates or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Fund action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Fund and economic factors. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied in any forward-looking statements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. We stress that the above mentioned list of important factors is not exhaustive. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Further, you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise, prior to the release of the next Management Report of Fund Performance. This annual Management Report of Fund Performance contains financial highlights, but does not contain the complete audited annual financial statements of the investment fund. If the audited annual financial statements of your investment fund did not accompany the mailing of this report, you may receive a copy of them, at your request, and at no cost, by calling 1-888-746-6344 (1-8-661-4578 if you live in Québec) or by writing to us at 447 Portage Avenue, Winnipeg, Manitoba, R3B 3H5 (1, boulevard Robert-Bourassa, bureau, Montréal (Québec), H3A 2A6 if you live in Québec), or by visiting our website at www.investorsgroup.com or SEDAR at www.sedar.com. Securityholders may also use 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. Every effort has been made to ensure that the information contained in this Report is accurate as of March 31, 15 (except when stated otherwise), however, the Fund cannot guarantee the accuracy or the completeness of this material. Please refer to the Fund s Prospectus and audited annual financial statements for more information. References to Consultant or Consultants mean Representative or Representatives in Québec. For current net asset values per security for the Fund and for more recent information on general market events, please visit our website at www.investorsgroup.com. CAUTION REGARDING FUTURE PERFORMANCE Sales commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Fund s offering documents before investing. The indicated rates of return are the historical annual compounded total returns including changes in security value and reinvestment of all distributions (except for fee rebates) and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any investor that would have reduced returns. Mutual funds are not guaranteed. Their values change frequently and past performance may not be repeated. Copyright Investors Group Inc. 15 Trademarks owned by IGM Financial Inc. and licensed to its subsidiary corporations.
Management Discussion of Fund Performance This management discussion of Fund performance presents views of the portfolio management team about the significant factors and developments during the past year that have affected the Fund s performance and outlook. Please read the caution regarding forward-looking statements located on the first page of this document. Investment Objective and Strategies The Fund aims to provide long-term capital growth by investing primarily in the shares of companies around the world that develop or use science and/or technology. To achieve the Fund s investment objective, the Fund selects primarily the common shares of companies using a growth oriented approach that: compares the company s share price to its earnings and its cash flow; looks at who is part of the company s management team; evaluates the company s growth potential; and considers whether the company operates in large, high-growth markets. The Fund may invest in companies involved in science and/or technology in sectors such as: internet software and services; communications equipment; computers and peripherals; electronic equipment and instruments; and semiconductors and semiconductor equipment. Risk The overall level of risk of investing in the Fund remains as discussed in the Prospectus, and is not expected to have significantly increased or decreased as a result of operations during the period. Accordingly, the Fund also remains suitable for the same investors as discussed in the Prospectus. Results of Operations CHANGES IN NET ASSETS The Fund s net assets increased by 9.5% during the period to $89.7 million. This change was comprised primarily of gains of $17.9 million from investment operations and a decrease of $1.1 million due to net securityholder redemptions. FEES AND EXPENSES The management expense ratios (MERs) for all series are generally similar to the MERs for the 12-month period ended March 31, 14. Total expenses paid vary period to period mainly as a result of changes in average assets in each series. Average net assets of the Fund for the period were $82.5 million, an increase of 2.% compared to the period ended March 31, 14. For the returns of all series and for longer-term performance of the Fund, see the Past Performance section of this report. Performance will vary by series primarily because fees and expenses may differ between series, or because securities of a series were not issued and outstanding for the entire reporting period. See Series Information for the annual expense rates for each series. For the year ended March 31, 15, the Series A securities returned 23.8% (after deducting fees and expenses paid by the Fund). In comparison, the MSCI World Index (Net) $ CAD returned 21.5%. Global stocks moved higher over the period. Stocks were driven by a growing U.S. economy, accommodative central bank policies and expansion of valuations relative to earnings. U.S. equity markets set fresh highs and broad European indices reached their best levels in seven years. Japan s major stock market index reached a 15-year peak and China s key index moved to a seven-year high in March. India s record-setting equity rally continued. Some emerging markets ran into turbulence because of political developments, commodities price volatility, a strengthening U.S. dollar and economic concerns. Concerns about rising U.S. interest rates and geopolitical developments led to bouts of volatility for stock markets. Because the Fund focuses on information technology, its sector allocation differs considerably from that of the index. The global information technology sector significantly outperformed the index over the period. It was the second-best performing sector in the index. Although the Fund outperformed the overall market index, Fund investments in the information technology sector underperformed index representation in the sector. Performance was driven by strong performance of U.S. holdings, which constituted about 8% of Fund investments during the period, considerably higher than the index allocation. Below-index allocation to European holdings and stock selection in the region contributed positively to relative returns as European technology stocks failed to keep pace with the index. Canadian holdings significantly underperformed. Recent Developments (BASED ON INFORMATION AS AT APRIL 24, 15) The portfolio management team expects economic conditions to continue to improve, which will drive capital expenditure and employment. These two factors in turn are expected to support spending on technology on a global basis. Encouraging signs of recovery in Europe and an accommodative central bank will provide another leg of growth for the technology sector. However, a strong U.S. dollar versus the Euro is impacting the profitability pattern of many U.S.-based multinational companies while benefiting Europeanbased corporations. The Fund will continue to invest in both growth trends and undervalued franchises in the sector as the sector continues to experience a shift in business models, challenging legacy vendors to adapt to new emerging competitors. Spending patterns will also continue to be distorted by inventory corrections that are inherent to the technology sector. A pronounced correction in equity markets could negatively affect the performance of the Fund given the high sensitivity of technology stocks to capital market directions. INVESTMENT PERFORMANCE In accordance with National Instrument 81-16, the following comparison to a broad-based index has been included to help you understand the Fund s performance relative to the general performance of the markets, but the portfolio management team cautions that the Fund s mandate may be different from the index shown. For a description of the index, see Annual Compound Returns. Also, investors cannot invest in an index without incurring fees and expenses, which are not reflected in the index returns.
Other Developments INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) Effective April 1, 14, the Fund adopted IFRS as its basis of accounting as required by the Canadian Accounting Standards Board (AcSB). Previously, the Fund prepared its financial statements in accordance with Canadian generally accepted accounting principles as defined in Part V of the Chartered Professional Accountant (CPA) Handbook (Canadian GAAP). The financial statements for the period ended March 31, 15, including comparative information, are the first annual financial statements prepared on an IFRS basis. The impact of the change from Canadian GAAP to IFRS has been applied retrospectively and is disclosed in the notes to the financial statements. Key changes to the financial statements as a result of the implementation of IFRS are: Statement of Financial Position replaces the Statement of Net Assets: - For financial reporting purposes, generally the Fund now values its exchange-traded investments at closing price, which is determined to be the price within the bid/ask range that represents the best estimate of fair value. This eliminates the difference under Canadian GAAP between net assets and net asset value as at the financial statement reporting dates. - The Fund s issued and redeemable securities have been classified as a financial liability. Statement of Comprehensive Income replaces the Statement of Operations. Statement of Changes in Financial Position replaces the Statement of Changes in Net Assets. The Fund now presents a Statement of Cash Flows. Other notable changes to the financial statements include reclassification of certain balances, changes to the format of the financial statements, and additional or enhanced information in the notes to the financial statements, including a detailed note and reconciliation on the Fund s transition from Canadian GAAP to IFRS.
Related Party Transactions I.G. Investment Management, Ltd. is the Manager and Trustee of the Fund. I.G. Investment Management, Ltd. and I.G. International Management Limited are the Portfolio Advisors of the Fund. The Fund is offered through the Consultants of Investors Group Financial Services Inc. and Investors Group Securities Inc., together referred to as the Distributors. The Manager, Portfolio Advisors, Distributors and Trustee are, indirectly, wholly owned subsidiaries of IGM Financial Inc. The following sub-advisor has been retained to provide investment services to the Fund: I.G. Investment Management (Hong Kong) Limited. I.G. Investment Management (Hong Kong) Limited is, indirectly, a wholly owned subsidiary of IGM Financial Inc. The Fund paid a management fee to the Manager and Portfolio Advisors for management and portfolio advisory services (see Management Fees). The Fund also paid the Manager an administration fee and in exchange the Manager paid the operating costs and expenses of the Fund, except for certain specified costs. The Fund paid the Distributors a service fee as compensation for providing or arranging for the provision of services to the Fund, including the issue or allotment of securities. A portion of the service fee for Series C is rebated by the Distributors to the Fund quarterly as outlined in the Prospectus. The Trustee is responsible for the overall direction and management of the affairs of the Fund. The Fund paid the Trustee a fee for its services. See Series Information for the annual rates paid by each series (as a percent of average net assets) for these fees. Securityholders in Series U also pay an advisory fee directly to Investors Group. This fee is not included in the Fund s expenses. Management Fees The Fund pays Investors Group a management fee. The management fee paid by each series is calculated as a percentage of the net asset value of the series, as of the close of business on each business day (see Series Information for rates payable by each series). Management fees were used in part to pay costs incurred in providing investment advisory and management services, and distribution-related services including the cost of financial planning services, Consultant commissions and bonuses, marketing and other Fund promotional activities and educational conferences. For the 12-month period ended March 31, 15, on average approximately 45% of the total management fee revenue received from all Investors Group funds was attributable to investment advisory and management services. The balance of these fees was used to fund the payment of distribution-related services. For this Fund, investment advisory and management services represented approximately 56%, and distribution-related services represented approximately 44%, of the management fees paid (excluding fees paid by non-retail series if issued) for the period ended March 31, 15. This may vary by series depending upon the assets invested in each series.
Summary of Investment Portfolio AT MARCH 31, 15 The largest holdings of the Fund (up to 25) at the end of the period, and the major asset classes in which the Fund was invested, are indicated below. The Fund held no short positions at the end of the period. This summary of investment portfolio may change due to ongoing portfolio transactions. The Fund s summary of investment portfolio will be updated as at the end of the next quarter. Please see the front page for information about how it can be obtained. Summary of Top 25 Holdings % of net asset value Apple Inc. 16.7 Microsoft Corp. 7.1 International Business Machines Corp. 5.7 Facebook Inc. 3.5 Oracle Corp. 3.5 Cisco Systems Inc. 3.4 Google Inc. Class A 2.8 Visa Inc. Class A 2.6 Hewlett-Packard Co. 2.5 EMC Corp. 2.2 SAP SE ADR 2. MasterCard Inc. Class A 2. ViXS Systems Inc. 1.9 F5 Networks Inc. 1.9 Amphenol Corp. Class A 1.7 Juniper Networks Inc. 1.6 Dassault Systèmes SA 1.6 Trimble Navigation Ltd. 1.5 Intel Corp. 1.5 ebay Inc. 1.5 Telefonaktiebolaget LM Ericsson B ADR 1.5 ARM Holdings PLC 1.4 ServiceNow Inc. 1.4 VMware Inc. Class A 1.4 Canon Inc. 1.3 74.2 Summary of Composition of the Portfolio BY ASSET TYPE % of net asset value Equities 99.1 Cash and cash equivalents.3 Other net assets (liabilities).6 Total 1. BY REGION United States 78.3 Europe ex U.K. 7.9 Japan 5.6 Canada 5.3 United Kingdom 1.4 Pacific ex Japan.6 99.1 BY SECTOR Information Technology 98.3 Financials.8 99.1 Series Information AT MARCH 31, 15 Inception Management Service Administration Trustee Series date 1 fee (%) fee (%) fee (%) fee (%) Series A n/a 2..3.18.5 Series B n/a 2...18.5 Series C n/a 2. up to.5 2.18.5 Series Jdsc 7/13/12 1.75.3.18.5 Series Jnl 7/13/12 1.75..18.5 Series U 7/12/13 1. -.18.5 1 Inception dates of the series are shown if within the Financial years detailed in Past Performance. 2 Eligible clients are entitled to a rebate of the service fee based on their asset levels held in the Fund and in other Investors Group funds as outlined in the Fund s Prospectus.
Past Performance It is important to remember that past performance doesn t necessarily indicate future performance. The returns presented below: assume that all distributions, except for fee rebates, are reinvested into the Fund; do not include sales charges, income taxes, optional expenses or advisory fees payable directly by securityholders in certain series, that reduce returns; show performance based on Canadian dollar returns; and show performance for each of the past 1 financial years, or since the series started. Financial years are as follows: - 6 to 8 nths ended September 3-9 six months ended March 31-1 to 15 nths ended March 31 Inception dates of the series within these periods are shown in Series Information. Performance during these periods may have been impacted by the following events: In October 7, the Fund began to pay an administration fee. In exchange, the Manager began to pay certain operating costs and expenses which previously had been paid by the Fund. Effective July 1, 1, the administration fees for Series A and B decreased by.2% to.18%. Effective June 3, 12, the annual service fee rate for Series B decreased by.5% to.%. Year-by-Year Returns These bar charts show how much an investment in securities made on the first day of each financial year would have increased or decreased by the end of the respective period. For the first year of a series, the percentage shown will be the actual return of the series from its inception date. The charts illustrate how the Fund s performance has changed over time. SERIES A - - % (2.2) 21.8 (3.) (5.6) 28.6 (6.) 2. (1.3) 25. 23.8. SERIES B - - % (2.3) 21.6 (3.1) (5.7) 28.4 (6.2) 1.8 (1.4) 24.9 23.7. SERIES C - - % (2.3) 21.6 (3.1) (5.7) 28.4 (6.2) 1.8 (1.5) 24.7 23.6. SERIES Jdsc - - % 5.1 25.3 24.2. SERIES Jnl - - % 5. 25.1 24..
SERIES U - - % 18.6 25.6. Annual Compound Returns The following table compares the historical annual compound returns for each series with the index (or indices) shown below, for the periods shown ending March 31, 15. For a discussion of the Fund s recent performance relative to the index (or indices), see Results of Operations. Since (%) 1 yr 3 yrs 5 yrs 1 yrs inception Series A 23.8 11.6 5.9 2.8 n/a Series B 23.7 11.5 5.8 2.6 n/a Series C 23.6 11.3 5.7 2.6 n/a Series Jdsc 24.2 n/a n/a n/a 19.9 Series Jnl 24. n/a n/a n/a 19.7 Series U 25.6 n/a n/a n/a 26.1 MSCI World Index (Net) $ CAD 21.5 21.5 15. 6.9 26. 1 1 The annual compound return since inception for the index presented in the table corresponds to Series Jdsc and Jnl. The comparative annual compound return since inception for the index for Series U is 24.7%. The MSCI World Total Return Index (Net) $ CAD is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of 23 developed markets.
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 up to the past five financial years. Footnotes are presented after Ratios and Supplemental Data. Net Assets per Security 1 SERIES A SERIES B (in $) 15 14 13 12 11 2, beginning of period 8.39 6.72 7.49 7.35 7.82 (in $) 15 14 13 12 11 2, beginning of period 8.51 6.81 7.58 7.44 7.9 Total revenue.13.12.8.4.4 3 Total expenses (.26) (.22) (.19) (.) (.21) for the period 1.28.83.8 (.34).38 for the period.88.97 (.74).64 (.67) operations 2.3 1.7 (.77).14 (.46) (excluding dividends) - - - - - From dividends - - - - - From capital gains - - - - - Return of capital - - - - - distributions - - - - - at period end 1.54 8.51 6.8 7.58 7.44 Total revenue.13.12.8.4.4 3 Total expenses (.27) (.23) (.19) (.) (.21) for the period 1.26.82.8 (.34).38 for the period.87.96 (.73).63 (.66) operations 1.99 1.67 (.76).13 (.45) (excluding dividends) - - - - - From dividends - - - - - From capital gains - - - - - Return of capital - - - - - distributions - - - - - at period end 1.38 8.39 6.71 7.49 7.35 SERIES C SERIES Jdsc JDSC (in $) 15 14 13 12 11 2, beginning of period 13.17 1.51 1. n/a n/a (in $) 15 14 13 12 11 2, beginning of period 8.34 6.68 7.46 7.33 7.8 Total revenue.12.12.8.4.4 3 Total expenses (.24) (.21) (.18) (.18) (.19) for the period 1.25.82.7 (.33).37 for the period.86.95 (.73).63 (.66) operations 1.99 1.68 (.76).16 (.44) (excluding dividends) - - - - - From dividends - - - - - From capital gains - - - - - Return of capital - - - - - distributions - - - - - at period end 1.31 8.34 6.68 7.46 7.33 Total revenue..19.1 n/a n/a 3 Total expenses (.36) (.31) (.18) n/a n/a for the period 1.98 1.29.28 n/a n/a for the period 1.37 1.5.31 n/a n/a operations 3.19 2.67.51 n/a n/a (excluding dividends) - - - n/a n/a From dividends - - - n/a n/a From capital gains - - - n/a n/a Return of capital - - - n/a n/a distributions - - - n/a n/a at period end 16.36 13.17 1.5 n/a n/a
Net Assets per Security 1 (CONTINUED) SERIES Jnl JNL (in $) 15 14 13 12 11 2, beginning of period 13.13 1.5 1. n/a n/a Total revenue..19.1 n/a n/a 3 Total expenses (.38) (.33) (.19) n/a n/a for the period 1.97 1.28.28 n/a n/a for the period 1.36 1.51.31 n/a n/a operations 3.15 2.65.5 n/a n/a (excluding dividends) - - - n/a n/a From dividends - - - n/a n/a From capital gains - - - n/a n/a Return of capital - - - n/a n/a distributions - - - n/a n/a at period end 16.29 13.13 1.49 n/a n/a SERIES U (in $) 15 14 13 12 11 2, beginning of period 11.86 1. n/a n/a n/a Total revenue.18.13 n/a n/a n/a 3 Total expenses (.18) (.12) n/a n/a n/a for the period 1.78 1.2 n/a n/a n/a for the period 1.24.82 n/a n/a n/a operations 3.2 1.85 n/a n/a n/a (excluding dividends) - - n/a n/a n/a From dividends - - n/a n/a n/a From capital gains - - n/a n/a n/a Return of capital - - n/a n/a n/a distributions - - n/a n/a n/a at period end 14.9 11.86 n/a n/a n/a Ratios and Supplemental Data SERIES A 15 14 13 12 11 (pricing NAV) ($ s) 14,48 13,187 12,843 16,97 18,261 outstanding ( s) 1,333 1,55 1,886 2,235 2,453 expense ratio (%) 2.78 2.78 2.76 2.76 2.73 or absorptions (%) 2.78 2.78 2.76 2.76 2.73 ratio (%).6.13.11.11.18 rate (%) 23.35 38.89 37.9 44.55 59.3 (pricing NAV) ($) 1.54 8.51 6.81 7.59 7.45 SERIES B 15 14 13 12 11 (pricing NAV) ($ s) 1,614 1,5 1,429 1,716 1,671 outstanding ( s) 156 168 213 229 227 expense ratio (%) 2.86 2.86 2.86 2.9 2.87 or absorptions (%) 2.86 2.86 2.86 2.9 2.87 ratio (%).6.13.11.11.18 rate (%) 23.35 38.89 37.9 44.55 59.3 (pricing NAV) ($) 1.38 8.39 6.72 7.5 7.36 SERIES C 15 14 13 12 11 (pricing NAV) ($ s) 6,761 61,574 61,436 86,162 1,819 outstanding ( s) 5,895 7,384 9,193 11,5 13,742 expense ratio (%) 2.96 2.97 2.96 2.95 2.92 or absorptions (%) 2.96 2.97 2.96 2.95 2.92 ratio (%).6.13.11.11.18 rate (%) 23.35 38.89 37.9 44.55 59.3 (pricing NAV) ($) 1.31 8.34 6.68 7.47 7.34
Ratios and Supplemental Data (CONTINUED) SERIES JDSC Jdsc 15 14 13 12 11 (pricing NAV) ($ s) 11,752 5,9 2,933 n/a n/a outstanding ( s) 718 411 279 n/a n/a expense ratio (%) 2.49 2.5 2.49 n/a n/a or absorptions (%) 2.49 2.5 2.49 n/a n/a ratio (%).6.13.11 n/a n/a rate (%) 23.35 38.89 37.9 n/a n/a (pricing NAV) ($) 16.36 13.17 1.51 n/a n/a SERIES JNL Jnl 15 14 13 12 11 (pricing NAV) ($ s) 262 144 73 n/a n/a outstanding ( s) 16 11 7 n/a n/a expense ratio (%) 2.62 2.66 2.59 n/a n/a or absorptions (%) 2.62 2.66 2.59 n/a n/a ratio (%).6.13.11 n/a n/a rate (%) 23.35 38.89 37.9 n/a n/a (pricing NAV) ($) 16.29 13.13 1.5 n/a n/a 1 These calculations are prescribed by securities regulations and are not intended to be a reconciliation between opening and closing net assets per security. This information is derived from the Fund s audited annual financial statements. The financial information presented for the periods ended March 31, 15 and 14 is determined in accordance with IFRS. Information for periods prior to April 1, 13 is derived from financial statements prepared in accordance with Canadian GAAP. 2 Prior to April 1, 13, the net assets per security presented in the financial statements may be different from the net asset value calculated for Fund pricing purposes. This difference was due to the requirements of Canadian GAAP which may have resulted in a different valuation of investments held by the Fund in accordance with Canadian GAAP than the market value used to determine net asset value of the Fund for the purchase and redemption of the Fund s securities (pricing NAV). The pricing NAV per security at the end of the period is disclosed in Ratios and Supplemental Data. 3 Effective April 1, 13, commissions and other portfolio transaction costs are included in total expenses. Prior to April 1, 13, these costs were reported within realized and unrealized gains (losses) for the period for the purposes of these tables. 4 Net asset value and distributions are based on the actual number of securities outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of securities outstanding over the financial period. In the period a series is established, the financial information is provided from the date of inception to the end of the period. 5 Distributions were paid in cash, reinvested in additional securities of the Fund, or both. 6 ratio (MER) is based on total expenses, excluding commissions and other portfolio transaction costs, for the stated period and is expressed as an annualized percentage of daily average net assets during the period, except as noted. In the period a series is established, the MER is annualized from the date of inception to the end of the period. Where a Fund directly or indirectly via derivative contract invests in securities of an Underlying Fund, the MERs presented for the Fund include the portion of MERs of the Underlying Fund(s) attributable to this investment. Correspondingly, the MERs presented for the Fund exclude any management or other fees that are waived as a result of its investment in the Underlying Fund(s). Certain expenses that are non-recurring and/or otherwise uncertain as to their future timing and amount have not been annualized. For Series C, the service fees are divided by the assets attributable to Series C on the days on which the fee is charged. The MERs presented for Series C represent the maximum MER applicable to an account because service fee rebates have not been offset against service fees. Eligible clients in Series C are entitled to a rebate of service fees based on their asset levels held in the Fund and in other Investors Group funds as outlined in the Fund s Prospectus. The rebate is distributed as a return of capital distribution to eligible securityholders and is required to be reinvested in additional Series C securities. 7 The trading expense ratio (TER) represents total commissions and other portfolio transaction costs incurred as an annualized percentage of daily average net assets during the period. Where a Fund invests in securities of an Underlying Fund, the TERs presented for the Fund include the portion of TERs of the Underlying Fund(s) attributable to this investment. 8 The Fund s portfolio turnover rate indicates how actively the Fund s Portfolio Advisor manages its portfolio investments. A portfolio turnover rate of 1% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. Generally, the higher a Fund s portfolio turnover rate in a period, the greater the trading costs payable by the Fund in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate and the performance of a Fund. Transactions incurred to realign the Fund s portfolio after a fund merger, if any, are excluded from the portfolio turnover rate. SERIES U 15 14 13 12 11 (pricing NAV) ($ s) 1,263 17 n/a n/a n/a outstanding ( s) 85 14 n/a n/a n/a expense ratio (%) 1.35 1.35 n/a n/a n/a or absorptions (%) 1.35 1.35 n/a n/a n/a ratio (%).6.13 n/a n/a n/a rate (%) 23.35 38.89 n/a n/a n/a (pricing NAV) ($) 14.9 11.86 n/a n/a n/a