Dynamic Power Global Balanced Class
Annual Management Report of Fund Performance
For the year ended June 30, 2020
This annual management report of fund performance contains unforeseeable. Accordingly, current assumptions concerning
financial highlights but does not contain the complete annual future economic and other factors may prove to be incorrect at a
financial statements of the investment fund. You can get a copy future date.
of the annual financial statements at your request, and at no
Forward-looking statements are not guarantees of future
cost, by calling toll-free 1-800-268-8186, by writing to us at
performance and actual results or events could differ materially
1832 Asset Management L.P., Dynamic Funds Tower, 1 Adelaide
from those expressed or implied in any forward-looking
Street East, 28th Floor, Toronto, ON, M5C 2V9 or by visiting our
statements made by the Fund. Any number of important factors
website at www.dynamic.ca or SEDAR at www.sedar.com.
could contribute to these digressions, including, but not limited
Securityholders may also contact us using one of these methods to, general economic, political and market factors in North
to request a copy of the investment fund’s interim financial America and internationally, such as interest and foreign
statements, proxy voting policies and procedures, proxy voting exchange rates, global equity and capital markets, business
disclosure record or quarterly portfolio disclosure. competition, technological change, changes in government relations, unexpected judicial or regulatory proceedings and
1832 Asset Management L.P. is the manager (the ‘‘Manager’’) of
catastrophic events. We stress that the above mentioned list of
the fund. In this document, ‘‘we’’, ‘‘us’’, ‘‘our’’ and the ‘‘Manager’’
important factors is not exhaustive. Some of these risks,
refer to 1832 Asset Management L.P. and the ‘‘Fund’’ refers to
uncertainties and other factors are described in the Fund’s
Dynamic Power Global Balanced Class.
simplified prospectus, under the heading ‘‘Risk Factors’’.
The term ‘‘net asset value’’ or ‘‘net asset value per share’’ in this
We encourage you to consider these and other factors carefully
document refers to the net asset value determined in accordance
before making any investment decisions. Forward-looking
with Part 14 of National Instrument 81-106 – Investment Fund
statements should not be unduly relied upon. Further, you
Continuous Disclosure (‘‘National Instrument 81-106’’); while the
should be aware of the fact that the Fund has no specific
term ‘‘net assets’’ or ‘‘net assets per share’’ refers to total equity or
intention of updating any forward-looking statements whether
net assets attributable to shareholders of the Fund as determined
as a result of new information, future events or otherwise, prior
in accordance with International Financial Reporting Standards
to the release of the next management report of fund
(‘‘IFRS’’).
performance, and that the forward-looking statements speak only to the date of this management report of fund performance. Caution Regarding Forward-Looking Statements
Certain portions of this report, including, but not limited to, Investment Objective and Strategies ‘‘Recent Developments’’, may contain forward-looking statements
The Fund seeks to achieve long-term capital growth by investing
about the Fund and the underlying funds, as applicable,
primarily in global equity and fixed income securities.
including statements with respect to strategies, risks, expected
performance events and conditions. Forward-looking statements This Fund represents an actively traded portfolio of global equity include statements that are predictive in nature, that depend and fixed income securities. This approach seeks to identify upon or refer to future events or conditions, or that include companies demonstrating better than average current or words such as ‘‘expects’’, ‘‘anticipates’’, ‘‘intends’’, ‘‘plans’’, prospective earnings growth relative to the overall market and ‘‘believes’’, ‘‘estimates’’, ‘‘projects’’ and similar forward-looking relative to their peer group. The fixed income component is expressions or negative versions thereof. invested primarily in global government bonds and is actively
traded in response to movements in the level of bond yields and
In addition, any statement that may be made concerning future
the shape of the yield curve.
performance, strategies or prospects and possible future action
by the Fund is also a forward-looking statement. Forward- All of the Fund’s objectives and strategies are further described looking statements are based on current expectations and in the simplified prospectus of the Fund.
projections about future general economic, political and
relevant market factors, such as interest rates, foreign exchange Risk rates, equity and capital markets, and the general business
The risks associated with investing in the Fund are as described
environment, in each case assuming no changes to applicable
in the simplified prospectus. There were no material changes to
tax or other laws or government regulation. Expectations and
the Fund over its last completed financial year that affected the
projections about future events are inherently subject to, among
overall level of risk of the Fund.
to inject money and jumpstart the economy. As well, governments
Results of Operations
did their part by delivering massive stimulus relief programs to For the year ended at June 30, 2020 (the ‘‘period’’), the Series A
provide financial support to their citizens. shares of the Fund generated a total return of 27.6%. Fund
The U.S. Federal Reserve (Fed) announced a ‘‘whatever it takes’’ returns are reported net of all management fees and expenses for
strategy of not only buying unlimited amounts of U.S. Treasuries all series, unlike the returns of the Fund’s benchmark, which is
and mortgage-backed securities, but also begin buying corporate based on the performance of an index that does not pay fees or
bonds and corporate bond exchange-traded funds (ETFs), which incur expenses. Returns for other series of the Fund will be
is unprecedented. The Fed and other central banks with a QE similar to Series A with any difference in performance being
program are effectively becoming the lender of last resort. primarily due to different management fees, operating expenses
and other expenses that are applicable to that particular series.
The European Central Bank (ECB) also announced a QE Please see the ‘‘Past Performance’’ section for the performance of
program. However, in early June the ECB scaled up its the Fund’s other series.
bond-buying program that put the stimulus effort in line with that of the Fed.
The Fund’s broad-based benchmarks, the MSCI World Index (C$) and the J.P. Morgan Global Government Bond Index (C$),
Seven of the 11 GICS sectors posted positive returns over the returned 7.0% and 9.7%, respectively, during the same period. In
12-month time period. The best performing sectors in the region accordance with National Instrument 81-106, we have included a
were Information Technology (+38.6%), Consumer Discretionary comparison to broad-based indices to help you understand the
(+13.3%) and Communication Services (+12.2%). The worst Fund’s performance relative to the general performance of the
performing sectors were Energy (–33.0%), Financials (–12.0%) market, but caution that the Fund’s mandate may be significantly
and Real Estate (–5.3%). different from the indices shown.
The Canadian bond market, as represented by the FTSE Canada The Fund’s blended benchmark, 50% MSCI World Index (C$) and
Universe Bond Index, rose 7.9% for the 1-year period ending 50% J.P. Morgan Global Government Bond Index (C$), returned
June 30, 2020. After a brief yield curve inversion in August, 9.0% during the same period. We have included this comparison,
longer-term yields went on to rise to year-end. Yields dropped which more closely reflects the market sectors and/or asset
from January onwards and hit a low of 0.49% in May, after classes in which the Fund invests, to provide a more useful
extraordinary measures were implemented by the Bank of comparative to the performance of the Fund.
Canada in response to growing fears over COVID-19. Investment grade and high yield credit spreads, as measured by ICE BofAML To achieve its long term asset allocation mandate, the Fund
Canadian and U.S. credit indices OAS, rose in both February and invested directly in fund(s) managed by the Manager or by third
March amidst the rising COVID-19 pandemic concerns. In late party investment managers (‘‘Underlying Fund(s)’’). As a result
March, following the implementation of fiscal stimulus programs the following commentary on investment portfolio activity relates
by governments across the globe, risk premiums and associated to the Underlying Fund(s). Commentary on income, expenses
market liquidity began to normalize. By the end of the period, the and unitholder activity relate to the Fund.
North American investment grade markets retraced over half of The Fund outperformed its blended benchmark primarily as a
the value lost from the market lows. result of stock selection and an overweight position in the
At the end of the period, the equity portion of the Fund was Information Technology sector along with stock selection in the
comprised of companies from the Information Technology, Consumer Discretionary sector. From a geographic standpoint,
Consumer Discretionary, Health Care and Communication holdings from the U.S. and Canada were the biggest contributors
Services sectors. Information Technology continued to be the for Fund performance.
largest weighted sector at 55%. Information Technology was also Global equities ended the 12-month period in positive territory as
the highest weighted sector of the MSCI World Index with a the MSCI World Index (C$) returned 7.0%. After a strong run in
weighting of approximately 21% and was by far the best 2019, the markets continued to rally in the first six weeks of
performing sector for the index; thus, the Fund’s overweight 2020. That changed in late February when it became evident that
exposure to the sector was a positive for relative performance. COVID-19 was quickly spreading across the globe.
Seven of the top ten stock contributors to Fund performance were from the Information Technology sector. While all but one Following COVID-19 being declared a pandemic, there was a near
of those stocks was held by the benchmark, the Fund held larger total shutdown of the global economy that drove equity markets
positions in those stocks which allowed them to make a greater into bear market territory (a decline of 20% or more) within
impact on Fund performance than benchmark performance. The three weeks starting in late February.
Fund’s collective Information Technology holdings outperformed Central banks and governments around the world proactively
those of the benchmark by more than 7%. Consumer stepped in to provide liquidity and a backstop to the economy.
Discretionary was the second highest weighted sector for the Central banks cut interest rates to historical levels and some
Fund and the fourth highest weighted sector for the benchmark. implemented a Quantitative Easing (QE) program. QE is a bond
It was the third best contributing sector to both the Fund and buying program whereby central banks purchase bonds in order
Athletica Inc., the Fund’s Consumer Discretionary holdings Recent Developments
outperformed those of the benchmark by more than 20%. The
COVID-19
Fund held numerous stocks from the United States that
contributed significantly to Fund performance both on an The spread of the COVID-19 virus began in late 2019 and led to a absolute and relative basis. As Shopify Inc. had such strong subsequent and dramatic global shutdown by March 2020 of all performance during the period, Canada was one of the top but the most essential activities. Many businesses and schools contributors behind the U.S., to both the absolute and relative were closed along with borders as mobility restrictions were put performance of the Fund. in place around the world. This generated significant headwinds
for corporate and consumer income which led to an increase in In the fixed income portion of the Fund, duration was managed
financial market volatility. In late March, markets began to see a tactically during the period. Starting below the benchmark, once
dramatic reversal with investors encouraged by the amount of the U.S. 10yr moved up past 1.80% duration was increased in the
stimulus being introduced into the financial system by global portfolio and finished the year at 7.7 years. Duration was kept
policy makers. Trillions of dollars of supplementary income, tax short in early 2020 though this was actively covered during
relief, and lending backstops were put into place. This was joined March, moving to a more market-neutral position. International
by equally aggressive interest rate reductions, asset purchase positions in the portfolio were sold off in late September when
programs, and the installation of liquidity facilities by central Canadian opportunities grew more attractive. We added some
banks. While 2020 is likely to encompass one of the deepest U.S. exposure in April, given attractive valuations, and then
global recessions in history, the incoming data indicates that it lowered this again in May, expecting USD weakness. As credit
might also be among the shortest in duration. Much depends on valuations were not cheap, the Fund maintained a defensive bias
the evolution of a vaccine and the efficacy of delivering it to and a risk-adjusted underweight relative to the benchmark in
everyone around the world. For now, we continue to monitor the credit. There were no material changes to the sector allocation of
situation and the effects on the Fund. the fixed income.
Notable change to the Fund’s equity sector allocation during the Related Party Transactions
past twelve months included a decrease in the Information
The Manager is a wholly-owned subsidiary of The Bank of Nova Technology sector and an increase in the Health Care sector.
Scotia (‘‘Scotiabank’’). Scotiabank also owns, directly or Also, at the end of the period, the Fund did not own any
indirectly, 100% of Scotia Securities Inc., a mutual fund dealer, companies from the Financials sector. From a geographic
and Scotia Capital Inc. (which includes ScotiaMcLeod and Scotia standpoint, notable changes included an increase to the
iTRADE), an investment dealer. weighting of the U.S. and exiting positions in Japan, Netherlands
and Luxembourg. Sector and geographic weights in our portfolio The Manager, on behalf of the Fund, may enter into transactions are derived strictly from our bottom-up stock selection process. or arrangements with other members of Scotiabank or certain
other companies that are related or connected to the Manager The Fund’s net asset value increased to $358.1 million at June 30,
(each a ‘‘related party’’). All transactions between the Fund and 2020, from $253.4 million at June 30, 2019. This change was
the related parties are in the normal course of business and are composed of investment performance of $68.7 million, net sales
carried out at arm’s length terms. of $36.3 million and cash distributions of $0.3 million. The
investment performance of the Fund includes income and The purpose of this section is to provide a brief description of expenses which vary year over year. The Fund’s income and any transaction involving the Fund and a related party. expenses changed compared to the previous year mainly as a
result of fluctuations in average net assets, portfolio activity and Management Fees
changes in the Fund’s income earning investments.
The Manager is responsible for the day-to-day management and Certain series of the Fund, as applicable, may make distributions operations of the Fund. Certain series of the Fund pay the at a rate determined by the Manager from time to time. If the Manager a management fee for its services as described in the aggregate amount of distributions in such series exceeds the ‘‘Management Fee’’ section later in this document. The portion of net income and net realized capital gains allocated to management fee is an annualized rate based on the net asset such series, the excess will constitute a return of capital. The value of each series of the Fund, accrued daily and calculated Manager does not believe that the return of capital distributions and paid monthly.
made by such series of the Fund have a meaningful impact on
Fixed Administration Fees and Fund Costs
the Fund’s ability to implement its investment strategy or to
fulfill its investment objective. The Manager pays the operating expenses of the Fund, other than Fund Costs, in exchange for the payment by the Fund of a fixed rate administration fee (the ‘‘Fixed Administration Fee’’) to the Manager with respect to each series of the Fund. The expenses charged to the Fund in respect of the Fixed Administration Fee are disclosed in the Fund’s financial
statements. The Fixed Administration Fee is equal to a specified certain circumstances, securityholder approval may be required percentage of the net asset value of a series, calculated and paid to approve certain mergers.
in the same manner as the management fees for the Fund.
The IRC has five members, Carol S. Perry (Chair), Stephen J. Further details about the Fixed Administration Fee can be found
Griggs, Simon Hitzig, Heather A. T. Hunter and Jennifer L. in the Fund’s most recent simplified prospectus.
Witterick, each of whom is independent of the Manager. In addition, each series of the Fund is responsible for its
The IRC prepares and files a report to the securityholders each proportionate share of certain operating expenses (‘‘Fund
fiscal year that describes the IRC and its activities for Costs’’). Further details about Fund Costs can be found in the
securityholders as well as contains a complete list of the standing Fund’s most recent simplified prospectus.
instructions. These standing instructions enable the Manager to The Manager, at its sole discretion, may waive or absorb a portion act in a particular conflict of interest matter on a continuing of a series’ expenses. These waivers or absorptions may be basis provided the Manager complies with its policies and terminated at any time without notice. procedures established to address that conflict of interest matter
and reports periodically to the IRC on the matter. This report to
Performance Fees the securityholders is available on the Manager’s website or, at no
cost, by contacting the Manager. The Manager is entitled to an annual performance fee based on
the performance of the Fund as compared to the performance of The compensation and other reasonable expenses of the IRC will a benchmark, as described in the Fund’s simplified prospectus. be paid out of the assets of the Fund as well as out of the assets Performance fees are calculated on a calendar year basis. of the other investment funds for which the IRC may act as the
independent review committee. The main components of
Distribution Services compensation are an annual retainer and a fee for each
committee meeting attended. The chair of the IRC is entitled to Certain registered dealers through which shares of the Fund are
an additional fee. Expenses of the IRC may include premiums for distributed are related parties to the Fund and the Manager. The
insurance coverage, travel expenses and reasonable out-of-pocket Manager may pay a trailing commission, which is negotiated with
expenses. dealers, to dealers for their financial advisors in respect of the
assets of their clients invested in securities of the Fund. The The Manager, in respect of the Fund, received the following Manager may also pay trailing commissions to dealers for standing instructions from the IRC with respect to related party securities purchased or held through discount brokerage transactions:
accounts.
• Paying brokerage commissions and spreads to a related party for effecting security transactions on an agency and principal
Other Fees
basis on behalf of the Fund; The Manager, or its affiliates, may earn fees and spreads in
• Purchases or sales of securities of an issuer from or to another connection with various services provided to, or transactions
investment fund managed by the Manager; with, the Fund, such as banking, brokerage, foreign exchange or
derivatives transactions. The Manager, or its affiliates, may earn • Investments in the securities of issuers for which a related a foreign exchange spread when shareholders switch between underwriter acted as an underwriter during the distribution of series of funds denominated in different currencies. such securities and the 60-day period following the completion
of such distribution;
Independent Review Committee
• Executing foreign exchange transactions with a related party The Manager has established an independent review committee on behalf of the Fund;
(the ‘‘IRC’’) in accordance with National Instrument 81-107 –
• Purchases of securities of a related party; Independent Review Committee for Investment Funds
(‘‘NI 81-107’’) with a mandate to review and provide • Entering into over-the-counter derivatives on behalf of the recommendations or approval, as required, on conflict of interest Fund with a related party;
matters referred to it by the Manager on behalf of the Fund. The
• Outsourcing products and services to related parties which IRC is responsible for overseeing the Manager’s decisions in
can be charged to the Fund; situations where the Manager is faced with any present or
perceived conflicts of interest, all in accordance with NI 81-107. • Acquisition of prohibited securities as defined by securities regulations;
The IRC may also approve certain mergers between the Fund and
other funds, and any change of the auditor of the Fund. Subject • Trading in mortgages with a related party. to any corporate and securities law requirements, no
The Manager is required to advise the IRC of any breach of a securityholder approval will be obtained in such circumstances,
condition of the standing instructions. The standing instructions but you will be sent a written notice at least 60 days before the
require, among other things, that the investment decision in effective date of any such transaction or change of auditor. In
respect to a related party transaction: (a) is made by the standing instructions are subsequently reviewed by the IRC to Manager free from any influence by an entity related to the monitor compliance.
Manager and without taking into account any consideration to
The Manager, in respect of the Fund, did not rely on IRC standing any associate or affiliate of the Manager; (b) represents the
instructions regarding related party transactions during business judgment of the Manager uninfluenced by
the period. considerations other than the best interests of the Fund; and
(c) is made in compliance with the Manager’s written policies and procedures. Transactions made by the Manager under the
Financial Highlights
The following tables show selected key financial information about each series of the Fund and are intended to help you understand the Fund’s financial performance for the periods indicated. The information on the following tables is based on prescribed regulations and as a result, is not expected to add across due to the increase (decrease) in net assets from operations being based on average shares outstanding during the period and all other numbers being based on actual shares outstanding at the relevant point in time. Footnotes for the tables are found at the end of the Financial Highlights section.
The Fund’s Net Assets per Share ($)(1)
Increase (decrease) from operations Distributions
Realized Unrealized Total From net
Net gains gains increase investment Net
Assets, (losses) (losses) (decrease) income From Return Assets,
beginning Total Total for the for the from (excluding From capital of Total end of
For the period ended of period revenue expenses period period operations(2) dividends) dividends gains capital distributions(3) period(1)
Series A June 30, 2020 19.19 0.06 (0.87) 0.81 5.27 5.27 (0.06) – – – (0.06) 24.39 June 30, 2019 19.11 0.21 (0.43) 0.14 (0.02) (0.10) – – – – – 19.19 June 30, 2018 16.75 0.39 (0.61) 2.22 0.24 2.24 – (0.45) – – (0.45) 19.11 June 30, 2017 14.41 0.08 (0.39) 0.33 2.19 2.21 – – – – – 16.75 June 30, 2016 15.62 0.22 (0.38) 1.44 (1.72) (0.44) – – (0.89) – (0.89) 14.41 Series F June 30, 2020 21.70 (0.04) (0.83) 0.98 6.86 6.97 – – (0.27) – (0.27) 27.64 June 30, 2019 21.39 0.24 (0.26) 0.16 (0.05) 0.09 – – (0.02) – (0.02) 21.70 June 30, 2018 18.45 (0.42) (0.42) 2.94 (0.12) 1.98 – (0.32) – – (0.32) 21.39 June 30, 2017 15.68 0.04 (0.23) 0.40 2.37 2.58 – – – – – 18.45 June 30, 2016 16.75 (0.08) (0.24) 1.80 (1.66) (0.18) – – (0.89) – (0.89) 15.68 Series IP June 30, 2020 20.36 0.09 (0.37) 0.84 5.16 5.72 – – (0.48) – (0.48) 26.00 June 30, 2019 19.85 0.20 0.02 0.15 0.24 0.61 – – (0.06) – (0.06) 20.36 June 30, 2018 17.16 1.21 (0.20) 1.73 0.61 3.35 – (0.69) – – (0.69) 19.85 June 30, 2017 14.53 0.06 (0.18) 0.36 2.97 3.21 – – – – – 17.16 June 30, 2016 15.65 0.36 0.06 1.33 (1.63) 0.12 – – (1.24) – (1.24) 14.53 Series T June 30, 2020 11.73 0.04 (0.52) 0.48 3.12 3.12 – – – (0.57) (0.57) 14.26 June 30, 2019 12.28 0.13 (0.27) 0.09 0.11 0.06 – – (0.16) (0.40) (0.56) 11.73 June 30, 2018 11.26 0.42 (0.40) 1.33 0.22 1.57 – – – (0.87) (0.87) 12.28 June 30, 2017 10.19 0.07 (0.27) 0.22 1.58 1.60 – – (0.31) (0.22) (0.53) 11.26 June 30, 2016 11.62 0.31 (0.28) 0.96 (1.30) (0.31) – – (0.67) (0.51) (1.18) 10.19
(1) This information is derived from the Fund’s audited annual financial statements. The net assets per share presented in the financial statements may differ from the net asset value per share. An explanation of these differences can be found in note 2 of the Fund’s financial statements. The net asset value per share at the end of the period is disclosed in Ratios and Supplemental Data.
(2) Net assets per share and distributions per share are based on the actual number of shares outstanding for the relevant series at the relevant time. The increase (decrease) in net assets from operations per share is based on the weighted average number of shares outstanding for the relevant series over the period.
Ratios and Supplemental Data
Management MER before Trading
Total net asset Number of shares expense ratio waivers or expense ratio Portfolio turnover Net asset value
As at value (in $000s)(1) outstanding(1) (‘‘MER’’) (%)(2) absorptions (%)(2) (‘‘TER’’) (%)(3) rate (%)(4) per share ($)
Series A June 30, 2020 249,089 10,211,786 4.44 4.44 0.23 38.74 24.39 June 30, 2019 187,510 9,772,817 2.47^ 2.47^ 0.33 11.73 19.19 June 30, 2018 225,702 11,808,590 3.31 3.31 0.29 15.74 19.11 June 30, 2017 114,620 6,844,278 2.64 2.64 0.31 19.26 16.75 June 30, 2016 112,613 7,815,848 2.65 2.69 0.26 22.03 14.41 Series F June 30, 2020 93,229 3,372,970 3.72 3.75 0.23 38.74 27.64 June 30, 2019 54,707 2,521,180 1.34^ 1.34^ 0.33 11.73 21.70 June 30, 2018 86,737 4,054,196 2.07 2.12 0.29 15.74 21.39 June 30, 2017 23,200 1,257,571 1.44 1.44 0.31 19.26 18.45 June 30, 2016 16,983 1,082,861 1.57 1.57 0.26 22.03 15.68 Series IP June 30, 2020 785 30,179 1.84 1.84 0.23 38.74 26.00 June 30, 2019 730 35,848 0.00^ 0.00^ 0.33 11.73 20.36 June 30, 2018 694 34,967 1.14 1.15 0.29 15.74 19.85 June 30, 2017 623 36,308 1.26 1.26 0.31 19.26 17.16 June 30, 2016 499 34,359 (0.29) (0.29) 0.26 22.03 14.53 Series T June 30, 2020 15,016 1,053,090 4.42 4.43 0.23 38.74 14.26 June 30, 2019 10,464 891,828 2.46^ 2.46^ 0.33 11.73 11.73 June 30, 2018 10,694 870,671 3.30 3.30 0.29 15.74 12.28 June 30, 2017 6,091 540,830 2.63 2.63 0.31 19.26 11.26 June 30, 2016 6,937 680,863 2.67 2.67 0.26 22.03 10.19
^ The MER includes the reversal of performance fees which were accrued in the NAV of the series in the prior fiscal period. Performance fees are accrued daily and paid on a calendar year basis, however the Fund’s fiscal year is from July 1st to June 30th. As such, any performance fees accrued during the first half of the calendar year (January 1st to June 30th) will be included in the June 30th fiscal year end MER. If during the second half of the calendar year (July 1st to December 31st) the Fund’s performance decreases or underperforms the benchmark, the performance fees may be reversed and will appear as a reversal of an expense in the Statements of Comprehensive Income, and will reduce the total expenses of the Fund or series, potentially resulting in a negative MER.
(1) This information is provided as at the period end of the years shown.
(2) The management expense ratio is based on the total expenses (including sales tax, and excluding commissions and other portfolio transaction costs) of each series of the Fund and a proportional share of underlying funds’ expenses (mutual funds, ETFs and closed-end funds), where applicable, for the stated period and is expressed as an annualized percentage of daily average net asset value during the period.
(3) The trading expense ratio represents total commissions and other portfolio transaction costs, short borrowing costs and interest on leverage of the Fund and the underlying funds, where applicable, expressed as an annualized percentage of daily average net asset value of the Fund during the period.
(4) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher a fund’s portfolio turnover rate in a period, the greater the trading costs payable by the fund in the period, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund.
Management Dealer
Management Fee
fees compensation Other†
(%) (%) (%)
The management fee is an annualized rate based on the net asset
Series A 2.00 46.6 53.4
value of each series of the Fund, accrued daily and calculated
Series F 1.00 – 100.0
and paid monthly. The management fees cover the costs of Series IP* – – –
Series T 2.00 42.5 57.5
managing the Fund, arranging for investment analysis,
* The management fee for this series is negotiated and paid directly by these
recommendations and investment decision making for the Fund,
shareholders and not by the Fund.
arranging for distribution of the Fund, marketing and promotion † Relates to all services provided by the Manager described above except dealer of the Fund and providing or arranging for other services. compensation.
The breakdown of services received in consideration of
Past Performance
management fees for each series, as a percentage of the
management fees, are as follows: The following shows the past performance for each series and will not necessarily indicate how the Fund will perform in the future. The information shown assumes that all distributions made by each series of the Fund in the periods shown were reinvested in additional shares of the relevant series. In addition, the information does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance.
Year-by-Year Returns benchmark is usually an index or a composite of more than one index. Fund returns are reported net of all management fees and The following charts show the performance for each series of the
expenses for all series, unlike the return of benchmarks which Fund and illustrate how performance has varied from year to
are based on the performance of an index that does not pay fees year. The charts show, in percentage terms, how much an
or incur expenses. investment held on the first day of each fiscal year would have
One Three Five Ten Since increased or decreased by the last day of each fiscal year for
Year Years Years Years Inception that series.
Series A Shares % 27.6 14.4 11.2 11.7 –
Blended Benchmark* % 9.0 7.5 7.5 9.2 – (for fiscal years ended June 30)
MSCI World Index (C$) % 7.0 8.4 8.8 12.7 – J.P. Morgan Global Series A Shares % 40 Government Bond Index (C$) % 9.7 5.9 5.6 5.1 – 30 Series F Shares % 29.0 15.5 12.4 12.9 – 20 Blended Benchmark* % 9.0 7.5 7.5 9.2 –
MSCI World Index (C$) % 7.0 8.4 8.8 12.7 –
10 J.P. Morgan Global Government 0 Bond Index (C$) % 9.7 5.9 5.6 5.1 – Series IP Shares % 30.6 17.2 13.8 – 13.0 -10 Blended Benchmark* % 9.0 7.5 7.5 – 8.6
-20 MSCI World Index (C$) % 7.0 8.4 8.8 – 11.3
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 J.P. Morgan Global Government Bond Index (C$) % 9.7 5.9 5.6 – 5.4 Series F Shares % 40 Series T Shares % 27.6 14.5 11.2 11.7 – Blended Benchmark* % 9.0 7.5 7.5 9.2 – 30
MSCI World Index (C$) % 7.0 8.4 8.8 12.7 –
20 J.P. Morgan Global
Government
10 Bond Index (C$) % 9.7 5.9 5.6 5.1 –
* The Blended Benchmark is composed of 50% MSCI World Index (C$) and 50%
0 J.P. Morgan Global Government Bond Index (C$).
-10
Index Descriptions
-20
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
J.P. Morgan Global Government Bond Index (C$) – This index measures total principal and interest returns in each market and Series IP Shares
%
40 includes only traded issues available to international investors.
30
MSCI World Index (C$) – This is a free float-adjusted market
20 capitalization index that is designed to measure global developed
10 market equity performance.
0 A discussion of the performance of the Fund as compared to its
benchmarks is found in the Results of Operations section of
-10
this report.
-20
2012 2013 2014 2015 2016 2017 2018 2019 2020
Summary of Investment Portfolio
Series T Shares
%
40 The Summary of Investment Portfolio may change due to ongoing
30 portfolio transactions. A quarterly portfolio update is available to
the investor at no cost by calling 1-800-268-8186, or by visiting
20
www.dynamic.ca, 60 days after quarter end, except for June 30,
10 which is the fiscal year end, when they are available after
0 90 days.
Percentage of
-10
By Asset Type net asset value
-20 Underlying Funds 100.7
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Other Net Assets (Liabilities) –1.1 Cash and Short Term Instruments (Bank Overdraft) 0.4
Annual Compound Returns
The annual compound returns table below compares each series of the Fund’s performance to one or more benchmarks. A
25.2% -7.5% 7.9% 17.9% 20.7% -2.2% 16.3% 16.8% 0.4% 27.6% 26.8% -6.5% 9.0% 19.2% 22.0% -1.2% 17.7% 17.7% 1.5% 29.0% -5.2% 10.6% 20.5% 23.2% 0.6% 18.1% 19.8% 2.9% 30.6% 25.0% -7.6% 7.9% 17.8% 20.6% -2.3% 16.2% 17.0% 0.4% 27.6%
Percentage of By Country / Region(1) net asset value
Canada 100.7
Cash and Short Term Instruments (Bank Overdraft) 0.4
Percentage of
By Industry(1)(2) net asset value
Foreign Equity Funds 72.7
Fixed Income Funds 28.0
Cash and Short Term Instruments (Bank Overdraft) 0.4
Percentage of
Top Holdings* net asset value
Dynamic Power Global Growth Fund, Series ‘‘O’’ 72.7 Dynamic Tactical Bond Private Pool, Series ‘‘O’’ 15.6 Dynamic Total Return Bond Fund, Series ‘‘O’’ 12.4 Cash and Short Term Instruments (Bank Overdraft) 0.4
(1) Excludes other net assets (liabilities). (2) Excludes bonds and debentures.
* Securities legislation requires the top 25 holdings of the Fund to be presented; however, the Fund currently has less than 25 holdings.
