3.1 Financial Highlights
(1) Provide selected financial highlights for the investment fund under the heading “Financial Highlights” in the form of the following tables, appropriately completed, and introduced using the following words:
“The following tables show selected key financial information about the Fund and are intended to help you understand the Fund’s financial performance for the past [insert number] years.
The Fund’s Net Assets per [Unit/Share]
| [insert year] | [insert year] | [insert year] | [insert year] | [insert year] | |
| Net Assets, beginning of year | $ | $ | $ | $ | $ |
| Increase (decrease) from operations: | |||||
| Toal revenue | $ | $ | $ | $ | $ |
| total expenses [excluding distribution] | $ | $ | $ | $ | $ |
| Realized gains (losses) for the period | $ | $ | $ | $ | $ |
| unrealized gains (losses) for the period | $ | $ | $ | $ | $ |
| Total increase (decrease) from operations (2) | $ | $ | $ | $ | $ |
| Distributions: | |||||
| From net investment income (excluding dividends) | $ | $ | $ | $ | $ |
| From dividends | $ | $ | $ | $ | $ |
| From capital gains | $ | $ | $ | $ | $ |
| Return of capital | $ | $ | $ | $ | $ |
| Total Annual Distribution (3) | $ | $ | $ | $ | $ |
| Net assists at [insert last day of financial year] of year shown | $ | $ | $ | $ | $ |
(1) This information is derived from the Fund’s audited annual financial statements. The net assets per security presented in the financial statements differs from the net asset value calculated for fund pricing purposes. [An explanation of these differences can be found in the notes to the financial statements. This difference is due to [explain].]
(2) Net assets and distributions are based on the actual number of [units/shares] outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of [units/shares] outstanding over the financial period.
(3) Distributions were [paid in cash/reinvested in additional [units/shares] of the Fund, or both]
Ratios and Supplemental Data
| [insert year] | [insert year] | [insert year] | [insert year] | [insert year] | |
| Total net asset value (000’s)(1) | $ | $ | $ | $ | $ |
| Number of [units/shares] outstanding(1) | |||||
| Management expense ratio(2) | % | % | % | % | % |
| Management expense ratio before waivers of absorption | % | % | % | % | % |
| Trading expense ratio(3) | % | % | % | % | % |
| Portfolio turnover rate(4) | % | % | % | % | % |
| Net asset value per[unit/share] | $ | $ | $ | $ | $ |
| Closing market price [if applicable] | $ | $ | $ | $ | $ |
(1) This information is provided as at [insert date of end of financial year] of the year shown.
(2) Management expense ratio is based on total expenses (excluding [distributions], commissions and other portfolio transaction costs) 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 expressed as an annualized percentage of daily average net asset value during the period.
(4) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio adviser 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 year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, 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.
(2) [Repealed]
(3) Modify the table appropriately for corporate investment funds.
(4) Show the financial highlights individually for each class or series, if a multi-class fund.
(5) Provide per unit or per share amounts to the nearest cent, and provide percentage amounts to two decimal places.
(6) Except for net assets, net asset value and distributions, calculate per unit/share values on the basis of the weighted average number of unit/shares outstanding over the financial period.
(7) Provide the selected financial information required by this Item in chronological order for each of the five most recently completed financial years of the investment fund for which audited financial statements have been filed, with the information for the most recent financial year in the first column on the left of the table.
(7.1) (a) For financial years beginning before January 1, 2014, the financial highlights may be derived from the investment fund’s financial statements prepared in accordance with subsection 2.6(1) of the Instrument.
(b) For financial periods beginning on or after January 1, 2014, derive the financial highlights from the investment fund’s financial statements prepared in accordance with subsection 2.6(2) of the Instrument.
(c) Despite paragraph (a), in an annual MRFP for a financial year beginning on or after January 1, 2014, derive the financial highlights for the immediately preceding financial year from financial statements prepared in accordance with subsection 2.6(2) of the Instrument.
(d) If the financial highlights relate to financial periods beginning both before and on or after January 1, 2014, disclose, in a note to the table, the accounting principles applicable to each period.
(8) If the investment fund has merged with another investment fund, include in the table only the financial information of the continuing investment fund.
(9) Calculate the management expense ratio of the investment fund as required by Part 15 of the Instrument. Include a brief description of the method of calculating the management expense ratio in a note to the table.
(10) If the investment fund,
(a) changed, or proposes to change, the basis of the calculation of the management fees or of the other fees, charges or expenses that are charged to the investment fund; or
(b) introduces or proposes to introduce a new fee,
and if the change would have had an effect on the management expense ratio for the last completed financial year of the investment fund if the change had been in effect throughout that financial year, disclose the effect of the change on the management expense ratio in a note to the “Ratios and Supplemental Data” table.
(11) Do not include disclosure concerning portfolio turnover rate for a money market fund.
(12) (a) Calculate the trading expense ratio by dividing
(i) the total commissions and other portfolio transaction costs disclosed in the statement of operations, by
(ii) the same denominator used to calculate the management expense ratio.
(b) If an investment fund invests in securities of other investment funds, calculate the trading expense ratio using the methodology required for the calculation of the management expense ratio in section 15.2 of the Instrument, making reasonable assumptions or estimates when necessary.
(13) Provide the closing market price only if the investment fund is traded on an exchange.
INSTRUCTIONS:
(1) Calculate the investment fund’s portfolio turnover rate by dividing the lesser of the amounts of the cost of purchases and proceeds of sales of portfolio securities for the financial year by the average of the value of the portfolio securities owned by the investment fund in the financial year. Calculate the monthly average by totalling the values of portfolio securities as at the beginning and end of the first month of the financial year and as at the end of each of the succeeding 11 months and dividing the sum by 13. Exclude from both numerator and denominator amounts relating to all portfolio securities having a remaining term to maturity on the date of acquisition by the investment fund of one year or less.
(2) Further to instruction (1), include:
(a) proceeds from a short sale in the value of the portfolio securities sold during the period;
(b) the cost of covering a short sale in the value of portfolio securities purchased during the period;
(c) premiums paid to purchase options in the value of portfolio securities purchased during the period; and
(d) premiums received from the sale of options in the value of the portfolio securities sold during the period.
(3) If the investment fund acquired the assets of another investment fund in exchange for its own shares during the financial year in a purchase-of-assets transaction, exclude from the calculation of portfolio turnover rate the value of securities acquired and sold to realign the fund’s portfolio. Adjust the denominator of the portfolio turnover computation to reflect these excluded purchases and sales and disclose them in a footnote.
3.2 Scholarship Plans
An investment fund that is a scholarship plan must comply with Item 3.1, except that the following table must replace “The Fund’s Net Assets per [Unit/Share]” table and the “Ratios and Supplemental Data” table.
Financial & Operating Highlights (with comparative figures)
| [insert year] | [insert year] | [insert year] | [insert year] | [insert year] | |
| Statement of Financial Position | |||||
| Total Assets | $ | $ | $ | $ | $ |
| Net Assets | $ | $ | $ | $ | $ |
| % changes Net Assets | % | % | % | % | % |
| Statement of Comprehensive Income | |||||
| Scholarship Awards | $ | $ | $ | $ | $ |
| Canadian Education Savings Grant | $ | $ | $ | $ | $ |
| Net investment income | $ | $ | $ | $ | $ |
| Other | |||||
| Total number of [agreements/units] in plans | |||||
| % change in the total number of agreements | % | % | % | % | % |
3.3 Management Fees
Disclose the basis for calculating the management fees paid by the investment fund and a breakdown of the services received in consideration of the management fees, as a percentage of management fees.
INSTRUCTION:
The disclosure must list the major services paid for out of the management fees, including portfolio adviser compensation, waived or absorbed expenses, trailing commissions and sales commissions, if applicable. Services may be grouped together so that commercially sensitive information, such as the specific compensation paid to a portfolio adviser or the manager’s profit, is not determinable.