SEMI-ANNUAL FINANCIAL STATEMENTS
AGF Mutual Funds
MARCH 31, 2017
Table of Contents
2
3
4
10
17
25
32
38
45
52
58
64
71
79
86
93
100
106
112
118
123
129
134
140
146
156
164
170
177
185
195
201
Management’s Responsibility for Financial Reporting
Notice to Shareholders/Unitholders
AGF American Growth Class
AGF Asian Growth Class
AGF Canadian Growth Equity Class
AGF Canadian Large Cap Dividend Class
AGF China Focus Class
AGF Diversified Income Class
AGF Emerging Markets Class
AGF European Equity Class
AGF Fixed Income Plus Class
AGF Global Dividend Class
AGF Global Equity Class
AGF Global Resources Class
AGF Short-Term Income Class
AGF Total Return Bond Class
AGF U.S. Sector Class
AGF Elements Balanced Portfolio Class
AGF Elements Conservative Portfolio Class
AGF Elements Global Portfolio Class
AGF Elements Growth Portfolio Class
AGF Elements Yield Portfolio Class
AGF American Growth Fund
AGF Asian Growth Fund
AGF Canadian Asset Allocation Fund
AGF Canadian Large Cap Dividend Fund
AGF Canadian Money Market Fund
AGF Canadian Small Cap Fund
AGF Canadian Stock Fund
AGF Diversified Income Fund
AGF Dividend Income Fund
AGF EAFE Equity Fund
209
214
222
230
235
241
250
256
273
284
293
301
308
315
321
327
334
342
347
357
364
373
381
391
402
408
414
420
426
431
437
AGF Emerging Markets Balanced Fund
AGF Emerging Markets Bond Fund
AGF Emerging Markets Fund
AGF Equity Income Focus Fund
AGF European Equity Fund
AGF Fixed Income Plus Fund
AGF Flex Asset Allocation Fund
AGF Floating Rate Income Fund
AGF Global Balanced Fund
AGF Global Bond Fund
AGF Global Convertible Bond Fund
AGF Global Dividend Fund
AGF Global Equity Fund
AGF Global Resources Fund
AGF Global Select Fund
AGF Global Sustainable Growth Equity Fund
AGF High Yield Bond Fund
AGF Income Focus Fund
AGF Monthly High Income Fund
AGF Precious Metals Fund
AGF Tactical Fund
AGF Tactical Income Fund
AGF Total Return Bond Fund
AGF Traditional Income Fund
AGF U.S. Risk Managed Fund
AGF U.S. Small-Mid Cap Fund
AGF Elements Balanced Portfolio
AGF Elements Conservative Portfolio
AGF Elements Global Portfolio
AGF Elements Growth Portfolio
AGF Elements Yield Portfolio
442
Notes to Financial Statements
The next report on the funds will contain annual audited financial information as at September 30, 2017.
Management’s Responsibility for Financial Reporting
May 10, 2017
The accompanying financial statements of the Funds (as defined in Note 1(a) and (b)) have been prepared by AGF Investments Inc. (the
“Manager”). The Manager of the Funds is responsible for the information and representations contained in these financial statements.
The Manager maintains appropriate processes to ensure that relevant and reliable financial information is produced. The financial statements have
been prepared in accordance with International Financial Reporting Standards and include certain amounts that are based on estimates and
judgments. The significant accounting policies which management believes are appropriate for the Funds are described in Note 2 to the financial
statements.
The Board of Directors of the Classes (as defined in Note 1 (a)) is responsible for reviewing and approving the financial statements after reviewing
management’s report of its financial reporting responsibilities.
The Board of Directors of AGF Investments Inc., as trustee, is responsible for reviewing and approving the financial statements of the Trust Funds
(as defined in Note 1(b)) and reviewing management’s report of its financial reporting responsibilities.
Blake C. Goldring, CFA
Chairman
AGF Investments Inc.
Adrian Basaraba
Senior Vice President &
Chief Financial Officer
AGF Investments Inc.
2
SEMI-ANNUAL REPORT 2017
Notice to Shareholders/Unitholders
The Auditor of the Funds has not reviewed these financial statements.
AGF Investments Inc., the Manager of the Funds, appoints an independent auditor to audit the Funds’ annual financial statements. Applicable
securities laws require that if an auditor has not reviewed the Funds’ interim financial statements, this must be disclosed in an accompanying
notice.
3
SEMI-ANNUAL REPORT 2017
AGF American Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Approved by the Board
W. Robert Farquharson, Director
4
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
1,085,731
–
30,308
41,485
1,222
–
–
–
329
–
–
–
1,159,075
September 30,
2016
$
993,474
–
6,957
–
230
–
–
–
333
–
–
–
1,000,994
$
$
–
–
–
41,485
429
810
1,337
56
–
–
–
44,117
1,114,958
804,075
$
$
–
–
–
–
336
641
976
39
–
–
–
1,992
999,002
801,324
$
$
$
$
$
$
$
$
$
$
862,540
385
58,828
1
170,795
9,619
–
11,390
1,400
–
$
$
$
$
$
$
$
$
$
$
797,583
347
44,533
–
141,948
6,360
–
7,092
1,139
–
$
$
$
$
$
$
$
$
$
$
45.52
47.67
58.18
11.11
71.88
25.25
–
22.70
29.11
–
$
$
$
$
$
$
$
$
$
$
41.01
42.96
52.06
–
63.93
22.46
–
21.31
26.90
–
AGF American Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
4,054
–
20
29,965
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
89,506
123,545
–
3,419
–
20
74,305
(69,943)
7,801
–
–
–
34
–
–
15
128
123,707
(649)
7,167
9,388
8,996
771
23
11
38
–
41
–
–
1
–
1,079
562
694
38
6
29
–
25
–
5
1
–
1,060
435
271
12,185
282
11,571
(28)
12,157
(1,352)
10,219
$
111,550
$
(3,052)
$
$
$
$
$
$
$
$
$
$
86,057
38
5,692
0
17,830
912
–
891
130
–
$
$
$
$
$
$
$
$
$
$
(2,237)
(2)
(355)
–
(143)
(156)
–
(143)
(16)
–
$
$
$
$
$
$
$
$
$
$
4.49
4.71
6.16
1.15
7.94
2.79
–
2.35
2.88
–
$
$
$
$
$
$
$
$
$
$
(0.12)
(0.28)
(0.46)
–
(0.06)
(0.50)
–
(0.37)
(0.42)
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
Income taxes (paid) recovered *
111,550
2016
$
(103)
(3,052)
1,478
(29,965)
(74,305)
(89,506)
(279,471)
69,943
(365,724)
306,685
265,365
–
–
–
–
4
(7)
–
–
–
–
–
–
–
–
93
169
19,456
141
(563)
(106,724)
(255)
(259)
73,742
190,570
(69,695)
3,792
(77,711)
112,600
103
(1,478)
$
23,248
6,957
30,308
$
5,876
55,939
60,337
$
19
$
20
$
$
3,500
–
$
$
2,982
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
5
AGF American Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted into
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
6
2017
$
797,583
347
44,533
–
141,948
6,360
–
7,092
1,139
–
999,002
86,057
38
5,692
0
17,830
912
–
891
130
–
111,550
2016
$
663,490
368
33,932
–
124,227
6,374
–
8,316
858
–
837,565
(2,237)
(2)
(355)
–
(143)
(156)
–
(143)
(16)
–
(3,052)
36,749
2
10,315
1
18,125
2,001
–
4,177
223
–
71,593
99,477
5
4,670
–
18,588
960
–
540
129
–
124,369
3,932
–
2,648
–
–
2,405
–
472
125
–
9,582
66,003
–
2,975
–
–
513
–
75
59
–
69,625
–
–
–
–
–
–
–
101
12
–
113
–
–
–
–
–
–
–
91
15
–
106
(54,145)
(2)
(4,219)
–
(7,108)
(1,823)
–
(981)
(75)
–
(68,353)
(61,110)
(54)
(2,797)
–
(8,930)
(2,017)
–
(1,135)
(108)
–
(76,151)
For the periods ended March 31,
Value of redeemable shares converted out of the
Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series I Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(7,636)
–
(141)
–
–
(236)
–
(9)
(122)
–
(8,144)
2016
$
4,791
111,593
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(353)
(32)
–
(385)
$
(5,951)
–
(49)
–
–
(297)
–
(56)
(3)
–
(6,356)
–
–
–
–
–
–
–
(343)
(24)
–
(367)
115,956
108,174
862,540
385
58,828
1
170,795
9,619
–
11,390
1,400
–
759,672
317
38,376
–
133,742
5,377
–
7,345
910
–
1,114,958
$
945,739
AGF American Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares
Average
Cost ($)
Fair
Value ($)
12,713,782
18,299,762
15,296,684
24,909,153
60,910,059
22,086,941
13,346,426
23,463,441
10,800,435
82,019,816
18,847,310
138,654,177
33,679,982
35,641,605
23,827,291
11,401,339
23,756,650
13,341,681
14,886,820
50,115,450
15,973,443
53,071,774
9,318,280
34,055,530
33,560,718
45,452,801
20,535,271
22,277,133
31,140,098
95,049,179
36,967,356
138,258,008
32,247,360
32,997,514
14,664,621
22,528,665
31,549,973
100,990,619
15,546,677
26,497,466
40,478,794
115,520,451
34,092,286
26,840,071
33,255,096
27,340,197
14,446,563
75,378,920
15,923,222
76,518,515
26,323,828
44,079,546
24,361,263
24,708,290
29,401,852
19,911,100
16,294,683
26,576,923
18,546,756
12,890,114
18,715,455
261,809,810
38,153,771
47,118,258
29,773,652
37,654,029
36,593,670
30,636,967
41,648,494
28,222,673
50,671,645
15,284,331
21,493,749
377,251,239
30,008,733
25,334,980
55,343,713
38,415,720
26,983,507
65,399,227
23,642,990
33,832,329
26,493,449
51,583,820
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF American Growth Class (the “Fund”).
Consumer Discretionary (12.4%)
51,664
324,450
342,878
267,856
49,688
Amazon.com Inc.
Lennar Corporation
LKQ Corporation
Ross Stores Inc.
Ulta Salon Cosmetics &
Fragrance Inc.
Consumer Staples (3.2%)
159,826 Costco Wholesale Corporation
Energy (4.8%)
139,194 Concho Resources Inc.
271,809 Newfield Exploration Company
64,498 Pioneer Natural
Resources Company
Financials (12.4%)
307,013 Primerica Inc.
448,189 Raymond James Financial Inc.
431,076 TD Ameritrade
Holding Corporation
681,160 The Charles
Schwab Corporation
Health Care (10.4%)
199,413 Celgene Corporation
124,275 Edwards
Lifesciences Corporation
25,996 Intuitive Surgical Inc.
185,590 UnitedHealth Group Inc.
Industrials (6.9%)
271,163 Alaska Air Group Inc.
105,349 FedEx Corporation
196,774 Fortune Brands Home &
Security Inc.
Information Technology (33.8%)
220,474
41,792
314,581
727,879
125,672
853,256
220,473
287,645
349,796
195,132
252,067
Adobe Systems Inc.
Alphabet Inc. ‘A’
Amphenol Corporation ‘A’
Applied Materials Inc.
Broadcom Limited
Corning Inc.
Facebook Inc. ‘A’
Microchip Technology Inc.
NVIDIA Corporation
Paychex Inc.
Vantiv Inc. ‘A’
Materials (5.9%)
273,450 Albemarle Corporation
168,415 Vulcan Materials Company
Real Estate (3.0%)
63,543 Equinix Inc.
Telecommunication Services (4.6%)
600,545 T-Mobile US Inc.
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (97.4%)
(448,924)
–
804,075,004 1,085,731,145
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
7
AGF American Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term capital growth
by investing primarily in equity securities of established U.S. companies.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
United States
97.4
September 30, 2016
(%)
United States
99.4
Portfolio by Sector
March 31, 2017
(%)
Information Technology
Consumer Discretionary
Financials
Health Care
Industrials
Materials
Energy
Telecommunication Services
Consumer Staples
Real Estate
33.8
12.4
12.4
10.4
6.9
5.9
4.8
4.6
3.2
3.0
September 30, 2016
(%)
Information Technology
Consumer Discretionary
Health Care
Financials
Real Estate
Industrials
Energy
Materials
Consumer Staples
Telecommunication Services
32.6
16.9
10.7
7.4
6.5
5.9
5.8
5.3
4.5
3.8
Portfolio by Asset Mix
March 31, 2017
(%)
United States Equity
97.4
September 30, 2016
(%)
United States Equity
99.4
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives. Accordingly,
the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 60 percent change in
benchmark (September 30, 2016 – 75 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
S&P 500 Net Return Index
September 30,
2016
792,314
959,344
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
8
March 31,
2017
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF American Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Currencies to which the Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
March 31, 2017
($’000)
United States Dollar
Foreign
Exchange
Financial Forward
Instruments Contracts
1,112,741
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
Percentage of
Total** Net Assets (%)
– 1,112,741
99.8
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
September 30, 2016
($’000)
United States Dollar
Financial
Instruments
Foreign
Exchange
Forward
Percentage of
Contracts Total** Net Assets (%)
995,323
–
995,323
99.6
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $22,255,000 (September 30,
2016 – $19,906,000).
($’000)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
($’000)
% of Gross
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
67
(20)
(0)
100.0
(29.8)
(0.1)
22
–
–
100.0
–
–
(13)
(19.8)
(7)
(30.0)
Net Securities Lending Income
34
50.3
15
70.0
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
% of Gross
Income
March 31, 2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
March 31,
2017
September 30,
2016
148,155
41,485
113,099
63,023
–
66,298
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
1,085,731
–
–
–
1,085,731
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,085,731
–
–
–
1,085,731
–
–
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
993,474
–
–
–
993,474
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
993,474
–
–
–
993,474
–
–
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
9
AGF Asian Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Approved by the Board
W. Robert Farquharson, Director
10
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
50,652
–
641
–
1
238
–
–
120
–
–
–
51,652
September 30,
2016
$
31,943
–
526
–
6
330
–
–
41
–
–
–
32,846
$
$
–
–
–
–
17
114
106
–
–
–
–
13
250
51,402
41,166
$
$
–
–
–
–
12
72
120
–
178
–
–
–
382
32,464
24,773
$
$
$
$
$
$
$
$
$
22,868
–
1,087
1,238
–
26,209
–
–
–
$
$
$
$
$
$
$
$
$
23,932
–
815
868
–
6,849
–
–
–
$
$
$
$
$
$
$
$
$
16.85
–
20.88
17.67
–
22.77
–
–
–
$
$
$
$
$
$
$
$
$
16.25
–
20.03
16.78
–
21.71
–
–
–
AGF Asian Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
258
–
2
374
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
153
–
7
909
2,316
2,950
–
94
1,163
–
–
–
4
–
–
1
118
3,072
(130)
1,034
401
369
87
8
11
5
–
11
–
–
1
–
58
55
109
14
7
18
–
10
–
1
1
–
52
30
117
754
94
705
(114)
640
(126)
579
$
2,432
$
455
$
$
$
$
$
$
$
$
$
784
–
48
63
–
1,537
–
–
–
$
$
$
$
$
$
$
$
$
388
–
4
(3)
–
66
–
–
–
$
$
$
$
$
$
$
$
$
0.56
–
1.01
0.96
–
1.43
–
–
–
$
$
$
$
$
$
$
$
$
0.22
–
0.11
(0.06)
–
0.21
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Increase (decrease) in foreign taxes payable
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
Income taxes (paid) recovered *
2,432
2016
$
2
455
34
(374)
(909)
(2,316)
(30,464)
(94)
(10,720)
14,359
11,623
–
–
–
–
(79)
(31)
–
–
–
–
–
–
–
–
5
42
13
(16,380)
14
(6)
–
366
–
–
20,367
25,104
(3,870)
16,497
(24,039)
1,065
(2)
(34)
$
117
526
641
$
1,431
296
1,693
$
2
$
8
$
$
138
–
$
$
91
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
11
AGF Asian Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
12
2017
23,932
–
815
868
–
6,849
–
–
–
32,464
784
–
48
63
–
1,537
–
–
–
2,432
2016
$
26,309
–
585
–
–
6,090
–
–
–
32,984
388
–
4
(3)
–
66
–
–
–
455
933
–
71
376
–
18,800
–
–
–
20,180
13,654
–
93
847
–
584
–
–
–
15,178
223
–
219
–
–
–
–
–
–
442
9,258
–
121
–
–
–
–
–
–
9,379
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(2,527)
–
(17)
(69)
–
(977)
–
–
–
(3,590)
(14,731)
–
(157)
(142)
–
(137)
–
–
–
(15,167)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(477)
–
(49)
–
–
–
–
–
–
(526)
2016
$
16,506
(9,371)
–
(43)
–
–
–
–
–
–
(9,414)
(24)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
18,938
431
22,868
–
1,087
1,238
–
26,209
–
–
–
25,507
–
603
702
–
6,603
–
–
–
51,402
$
33,415
AGF Asian Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Average
Cost ($)
No. of Shares
Fair
Value ($)
China (37.0%)
No. of Shares
Average
Cost ($)
Fair
Value ($)
648,531
640,793
500,083
571,991
711,719
629,309
474,897
502,259
791,782
482,209
630,380
1,038,146
2,246,457
4,213,471
845,568
428,600
7,078,970
997,477
444,155
9,718,857
615,032
612,983
488,029
604,826
856,844
1,051,871
660,271
697,960
1,727,044
4,347,220
3,214,001
6,181,641
684,647
708,705
528,882
581,651
602,688
564,436
1,696,006
593,695
520,013
1,695,359
566,902
653,760
South Korea (18.9%)
18,200 Alibaba Group Holding
Limited ADR
2,500 Baidu Inc. ADR
2,250,000 Bank of China Limited ‘H’
1,485,000 China Construction Bank
Corporation ‘H’
240,000 China Mengniu Dairy
Company Limited
108,000 China Mobile Limited
150,000 China Pacific Insurance Group
Company Limited ‘H’
650,000 China Petroleum & Chemical
Corporation ‘H’
200,000 China Resources Land Limited
260,000 China State Construction
International
Holdings Limited
450,000 CNOOC Limited
16,000 Ctrip.com International
Limited ADR
238,000 Haitong Securities
Company Limited
180,000 Ping An Insurance (Group)
Company of China
Limited ‘H’
90,000 Tencent Holdings Limited
3,600,000 West China Cement Limited
2,150,997
535,310
1,362,000
2,609,839
573,564
1,486,167
1,273,418
1,588,197
614,951
1,636,238
661,203
1,571,795
726,116
719,983
679,004
547,947
700,732
718,699
562,291
752,159
618,424
714,592
955,417
1,045,794
579,148
535,143
1,025,958
1,633,766
639,899
15,674,619
1,339,860
3,431,275
696,111
19,011,378
1,055,162
1,509,268
638,160
609,149
476,698
668,826
602,475
652,990
393,460
658,831
616,623
615,206
2,000 Hyundai Mobis
Company Limited
3,800 Hyundai Motor Company
1,800 LG Chem Limited
500 LG Household & Health
Care Limited
620 NAVER Corporation
3,000 POSCO
1,720 Samsung Electronics Company
Limited
18,000 Shinhan Financial Group
Company Limited
15,000 Wonik IPS Company Limited
Taiwan (12.0%)
Hong Kong (11.5%)
180,000 AIA Group Limited
68,000 Cheung Kong Property
Holdings Limited
18,000 Hong Kong Exchanges and
Clearing Limited
106,000 Sands China Limited
721,000 SITC International Holdings
Company Limited
280,000 Stella International
Holdings Limited
480,000 Universal Medical Financial &
Technical Advisory Services
Company Limited
525,000 Value Partners Group Limited
599,848
659,078
5,107,855
579,066
664,797
5,891,782
733,358
577,733
1,000,313
688,856
616,173
1,927,264
563,724
2,252,893
677,538
605,024
1,282,562
739,938
564,354
1,304,292
775,108
898,247
258,691
271,512
677,270
739,244
618,605
709,203
602,286
2,156,852
614,896
2,334,855
India (4.4%)
10,000 HDFC Bank Limited ADR
120,000 ITC Limited
40,000 Sun Pharmaceutical
Industries Limited
Indonesia (2.5%)
448,000 PT Bank Central Asia Tbk
3,000,000 PT Bumi Serpong Damai Tbk
360,932 Advanced Semiconductor
Engineering Inc.
46,000 Catcher Technology
Company Limited
1,280,000 CTBC Financial Holding
Company Limited
175,000 Hon Hai Precision Industry
Company Limited
388,001 Taiwan Semiconductor
Manufacturing
Company Limited
Thailand (1.4%)
250,000 PTT Global Chemical
PCL NVDR
The Philippines (3.3%)
10,800 Globe Telecom Inc.
280,000 Metropolitan Bank &
Trust Company
120,000 Universal Robina Corporation
United States (1.3%)
135,000 Samsonite International SA
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (98.5%)
(132,154)
41,165,851
–
50,651,769
ADR – American Depository Receipt
NVDR – Non-voting Depository Receipt
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF Asian Growth Class (the “Fund”).
Malaysia (1.7%)
311,700 Genting Berhad
Singapore (4.5%)
28,000 City Developments Limited
80,000 Oversea-Chinese Banking
Corporation Limited
200,000 Singapore Technologies
Engineering Limited
165,000 Singapore Telecommunications
Limited
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
13
AGF Asian Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term capital growth
by investing primarily in shares of companies that are located or active
mainly in Asia or the Pacific Rim Region and are principally traded on
Asian stock exchanges.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
September 30, 2016
(%)
Information Technology
Financials
Consumer Staples
Consumer Discretionary
Real Estate
Materials
Telecommunication Services
Industrials
Health Care
Energy
Utilities
31.2
30.4
7.3
5.9
4.8
4.5
4.4
3.8
3.1
1.6
1.4
Portfolio by Country
March 31, 2017
(%)
Portfolio by Asset Mix
China
South Korea
Taiwan
Hong Kong
Singapore
India
The Philippines
Indonesia
Malaysia
Thailand
United States
37.0
18.9
12.0
11.5
4.5
4.4
3.3
2.5
1.7
1.4
1.3
March 31, 2017
(%)
International Equity
United States Equity
97.2
1.3
September 30, 2016
(%)
International Equity
98.4
September 30, 2016
(%)
China
South Korea
Hong Kong
Taiwan
Singapore
India
Indonesia
Malaysia
Thailand
The Philippines
36.4
17.7
13.2
11.9
5.0
4.1
2.7
2.7
2.6
2.1
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
March 31, 2017
(%)
Information Technology
Financials
Consumer Discretionary
Materials
Telecommunication Services
Consumer Staples
Real Estate
Industrials
Energy
Health Care
33.1
26.4
10.0
6.0
5.4
4.6
4.2
3.9
2.7
2.2
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
Portfolio by Sector
14
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives. Accordingly,
the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
The impact on Net Assets of the Fund due to a 45 percent change in
benchmarks (September 30, 2016 – 55 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Asian Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $1,026,000 (September 30,
2016 – $653,000).
March 31,
2017
September 30,
2016
17,835
23,205
13,057
17,838
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
Benchmark
MSCI Pacific Free ex-Japan Index
MSCI All Country Far East ex-Japan Index
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
March 31, 2017
($’000)
Hong Kong Dollar
South Korean Won
New Taiwanese Dollar
United States Dollar
Singapore Dollar
Philippine Peso
Indonesian Rupiah
Indian Rupee
Malaysian Ringgit
Thai Baht
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
21,339
9,719
6,289
5,739
2,335
1,695
1,304
1,253
904
709
–
–
–
–
–
–
–
–
–
–
21,339
9,719
6,289
5,739
2,335
1,695
1,304
1,253
904
709
41.5
18.9
12.2
11.2
4.5
3.3
2.5
2.4
1.8
1.4
Level 2
Level 3
Total
50,652
–
–
–
50,652
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
50,652
–
–
–
50,652
–
–
Level 1
Level 2
Level 3
Total
31,943
–
–
–
31,943
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
31,943
–
–
–
31,943
–
–
September 30, 2016
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
September 30, 2016
($’000)
Hong Kong Dollar
South Korean Won
United States Dollar
New Taiwanese Dollar
Singapore Dollar
Indonesian Rupiah
Malaysian Ringgit
Thai Baht
Philippine Peso
Indian Rupee
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
13,273
5,742
4,237
3,981
1,637
884
882
848
692
468
–
–
–
–
–
–
–
–
–
–
13,273
5,742
4,237
3,981
1,637
884
882
848
692
468
40.9
17.7
13.1
12.3
5.0
2.7
2.7
2.6
2.1
1.4
** Includes both monetary and non-monetary instruments, as applicable
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
15
AGF Asian Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
% of Gross
($’000)
Income
March 31, 2016
($’000)
% of Gross
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
6
–
(0)
100.0
–
(1.2)
1
–
–
100.0
–
–
(2)
(28.5)
(0)
(30.0)
Net Securities Lending Income
4
70.3
1
70.0
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
16
3,277
–
3,449
1,163
–
1,224
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Growth Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
626,271
–
47,997
–
431
7,412
–
–
859
–
–
3,130
686,100
September 30,
2016
$
606,698
–
50,615
–
56
2,504
–
–
620
–
–
3,130
663,623
$
$
–
–
–
–
315
798
233
–
12,520
–
–
13,866
672,234
521,549
$
$
–
–
–
–
262
670
447
–
2,545
–
–
3,924
659,699
510,106
$
$
$
$
$
$
$
$
$
649,387
–
6,394
16,453
–
–
–
–
–
$
$
$
$
$
$
$
$
$
630,122
–
5,253
24,324
–
–
–
–
–
$
$
$
$
$
$
$
$
$
62.72
–
74.23
88.70
–
–
–
–
–
$
$
$
$
$
$
$
$
$
60.16
–
70.83
83.94
–
–
–
–
–
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
17
AGF Canadian Growth Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
18
2017
$
4,045
–
97
24,833
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
3,935
–
155
(11,402)
8,130
37,105
–
31,301
23,989
–
–
–
108
–
–
124
59
37,272
(150)
23,963
7,179
7,273
549
17
24
27
42
34
–
1
1
–
825
36
561
26
20
25
12
22
–
2
1
–
827
31
644
9,379
857
9,657
(5)
9,374
(121)
9,536
$
27,898
$
14,427
$
$
$
$
$
$
$
$
$
26,600
–
280
1,018
–
–
–
–
–
$
$
$
$
$
$
$
$
$
13,795
–
102
530
–
–
–
–
–
$
$
$
$
$
$
$
$
$
2.56
–
3.45
4.81
–
–
–
–
–
$
$
$
$
$
$
$
$
$
1.25
–
1.78
2.75
–
–
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
Income taxes (paid) recovered *
27,898
SEMI-ANNUAL REPORT 2017
$
14,427
26
15
(24,833)
11,402
(8,130)
(162,996)
(31,301)
(194,884)
181,453
197,228
–
–
–
–
(239)
(138)
–
–
–
–
–
–
–
–
53
128
13,360
43
(115)
(3,323)
–
–
20,398
45,243
(36,350)
(15,952)
(50,089)
(4,846)
(26)
(15)
$
(2,592)
50,615
47,997
$
(8,169)
66,953
58,769
$
106
$
156
$
$
3,758
–
$
$
3,789
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2016
AGF Canadian Growth Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
630,122
–
5,253
24,324
–
–
–
–
–
2016
$
573,781
–
3,176
14,147
–
–
–
–
–
659,699
591,104
26,600
–
280
1,018
–
–
–
–
–
27,898
13,795
–
102
530
–
–
–
–
–
14,427
19,339
–
1,024
343
–
–
–
–
–
20,706
41,880
–
643
2,440
–
–
–
–
–
44,963
380
–
468
–
–
–
–
–
–
848
251
–
157
–
–
–
–
–
–
408
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(24,383)
–
(604)
(9,232)
–
–
–
–
–
(34,219)
(35,039)
–
(268)
(3,032)
–
–
–
–
–
(38,339)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares (Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(2,671)
–
(27)
–
–
–
–
–
–
(2,698)
2016
$
(15,363)
(13,920)
–
(34)
–
–
–
–
–
–
(13,954)
(6,922)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
12,535
7,505
649,387
–
6,394
16,453
–
–
–
–
–
580,748
–
3,776
14,085
–
–
–
–
–
672,234
$
598,609
19
AGF Canadian Growth Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares
Average
Cost ($)
Fair
Value ($)
6,294,701
3,350,744
5,516,018
4,643,311
6,038,040
6,504,950
12,859,528
6,423,103
5,854,002
2,838,750
5,368,446
5,342,402
1,584,850
9,940,987
13,464,498
1,907,328
7,874,657
59,505,052
11,165,245
57,466,508
3,113,418
3,997,650
8,270,656
1,841,908
13,225,982
13,746,665
1,544,972
19,289,287
1,038,480
24,663
7,903,937
7,134,810
12,757,558
472,759
20,094,275
4,886,954
6,561,641
298,431
5,808,304
16,759,591
65,200
29,154,966
1,784,010
7,004,393
66,154
6,539,540
Consumer Discretionary (8.5%)
376,948
126,504
2,105,273
53,700
2,732,500
164,341
234,614
1,687,901
344,500
Consumer Staples (2.9%)
128,212 AGT Food and Ingredients Inc.
228,806 Alimentation Couche-Tard
Inc. ‘B’
147,421 Clearwater Seafoods Inc.
618,200 Buried Hill Energy (Cyprus)
Public Company Limited*
978,712 Canadian Energy Services &
Technology Corporation
384,924 Canadian Natural
Resources Limited
181,110 Lonestar West Inc.
1,720,057 Parex Resources Inc.
9,148,770 Petrowest Corporation ‘A’
1,113,576 Precision Drilling Corporation
300,700 Primeline Energy Holdings Inc.
667,300 Secure Energy Services Inc.
474,950 Seven Generations
Energy Limited
2,115,366 Spartan Energy Corporation
436,231 Suncor Energy Inc.
3,663,523 Tamarack Valley Energy Limited
6,538,903 Tidewater Midstream and
Infrastructure Limited
1,344,068 TORC Oil & Gas Limited
1,638,976 Whitecap Resources Inc.
4,158,416 Yangarra Resources Limited
13,457,421
6,222,225
15,928,319
15,313,595
11,541,285
5,626,874
17,811,312
10,660,852
9,208,685
9,528,243
17,145,274
10,155,494
156,781,595
9,612,187
9,179,984
16,963,402
10,895,050
160,824,273
87,254
15,617,573
503,893
15,565,011
7,373,376
9,320,250
1,893,000
10,934,559
10,726,585
2,237,652
Financials (13.8%)
–
22,999,824
21,462,328
78,753,605
6,310
28,675,177
23,469,382
92,118,569
4,405,431
12,651,365
–
4,405,431
8,787
12,660,152
9,838,429
16,213,806
12,105,228
12,228,910
1,822,500
2,187,000
Health Care (1.9%)
176,000 Eguana Technologies Inc.
Warrants August 7, 2017*
6,960 Encompass
Compliance Corporation
102,400 Grande West Transportation
Group Inc.
3,000,000 Grande West Transportation
Group Inc.*
393,700 Magellan
Aerospace Corporation
377,924 New Flyer Industries Inc.
669,231 Savaria Corporation
298,515
3,981,000
3,612,892
242,853
741,965
8,890,532
36,000
1,285
CGI Group Inc. ‘A’
DealNet Capital Corporation
Espial Group Inc.
Kinaxis Inc.
RDM Corporation
Real Matters Inc. ‘A’*
Voice Mobility International Inc.
Xplore Technologies Corporation
20
70,312
2,104
–
321
255,218
315,392
5,700,000
8,804,704
6,806,201
15,530,298
5,220,002
57,348,188
7,696,835
18,548,510
9,369,234
75,366,816
15,060,793
1,697,076
11,567,633
5,663,649
2,163,431
10,475,728
1,800,000
–
48,428,310
19,021,376
1,950,690
8,959,972
18,012,407
4,036,290
46,675,293
180
3,503
98,659,711
9,524,583
1,995,000
–
4,054,946
6,724,888
1,995,000
88
5,082,890
–
3,936,265
4,553,643
637,053
3,771,900
4,140,909
–
7,549,214
1,257,087
6,313,477
10,235,978
7,922,555
10,180,657
2,816,647
5,208,866
4,672,653
180,130
9,455,055
7,939
5,672,479
13,630,354
10,939,392
9,635,664
3,192,183
4,517,417
3,372,189
54,953
468,819
80,745,343
99,026
81,272
83,135,828
7,297,887
8,944,074
1,766,505
2,499,750
4,266,255
1,792,072
3,510,103
5,302,175
11,759,804
12,442,096
Materials (12.4%)
1,926,902
1,330,000
183
3,579,500
1,550,000
247,500
4,140,909
2,045,454
366,475
793,950
649,025
793,385
1,460,533
2,445,600
658,182
1,126,538
315,748
56,265
250,068
Asanko Gold Inc.
Bluestone Resources Inc.*
Boyuan Construction Group Inc.
Ceapro Inc.
Ceapro Inc.
Warrants July 13, 2018*
Detour Gold Corporation
Diamcor Mining Inc.
Diamcor Mining Inc.
Warrants August 31, 2019*
Endeavour Mining Corporation
Global Atomic Fuel Corporation*
HudBay Minerals Inc.
Interfor Corporation
Lundin Mining Corporation
OceanaGold Corporation
Osisko Mining Inc.
SEMAFO Inc.
Tahoe Resources Inc.
Western Copper and
Gold Corporation
Zazu Metals Corporation
Real Estate (1.3%)
820,428 Tricon Capital Group Inc.
Telecommunication Services (0.8%)
30,436 BCE Inc.
1,111,000 Lite Access Technologies Inc.*
Utilities (1.8%)
506,600 Northland Power Inc.
Industrials (11.2%)
191,178 Boyd Group Income Fund
62,600 Canadian Pacific
Railway Limited
1,350,000 Distinct Infrastructure
Group Inc.
Fair
Value ($)
Information Technology (14.7%)
Energy (23.9%)
1,163,879 CRH Medical Corporation
175,750 Nobilis Health Corporation
Warrants May 13, 2017
Average
Cost ($)
Industrials (continued)
Aritzia Inc.
AutoCanada Inc.
Diversified Royalty Corporation
Foot Locker Inc.
Gaming Nation Inc.
Linamar Corporation
Magna International Inc.
NYX Gaming Group Limited
Sleep Country Canada
Holdings Inc.
436,271 Acasta Enterprises Inc.
Warrants September 8, 2020
156,700 Bank of Montreal
422,510 Guardian Capital Group
Limited ‘A’
454,709 Manulife Financial Corporation
1,501,780 Payfirma Corporation*
631,000 Payfirma Corporation
Warrants April 28, 2018*
295,956 Royal Bank of Canada
301,663 The Bank of Nova Scotia
No. of Shares
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Growth Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
61,094
61,094
Corporate Bond (0.0%)
CAD
110,000 Eguana Technologies Inc.
Subordinated Secured
Debentures 3.000% Series 2
August 7, 2018*
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (93.2%)
(1,029,480)
521,549,066
–
626,270,583
* Private and/or Restricted
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF Canadian Growth Equity Class (the
“Fund”).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
21
AGF Canadian Growth Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide capital growth by
investing primarily in shares of Canadian companies that are expected
to profit from future economic growth.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
Canada
United States
United Kingdom
China
92.1
1.1
0.0
0.0
September 30, 2016
(%)
Canada
United States
United Kingdom
89.1
2.9
0.0
Portfolio by Sector
March 31, 2017
(%)
Energy
Information Technology
Financials
Materials
Industrials
Consumer Discretionary
Consumer Staples
Health Care
Utilities
Real Estate
Telecommunication Services
Corporate Bonds
23.9
14.7
13.8
12.4
11.2
8.5
2.9
1.9
1.8
1.3
0.8
0.0
September 30, 2016
(%)
Energy
Materials
Information Technology
Financials
Consumer Discretionary
Consumer Staples
Industrials
Health Care
Real Estate
Utilities
Telecommunication Services
Corporate Bonds
21.9
13.6
12.7
11.0
10.0
7.6
5.2
4.5
4.1
0.9
0.5
0.0
Portfolio by Asset Mix
March 31, 2017
(%)
Canadian Equity
United States Equity
International Equity
Canadian Fixed Income
92.1
1.1
0.0
0.0
22
September 30, 2016
(%)
Canadian Equity
United States Equity
Canadian Fixed Income
International Equity
89.1
2.9
0.0
0.0
As at March 31, 2017, the total fair value of private and/or restricted
securities held within the Fund represented approximately $64,142,000
(September 30, 2016 – $63,261,000).
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives.
Accordingly, the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 20 percent change in
benchmarks (September 30, 2016 – 25 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
S&P/TSX Composite Index
Blended Benchmark
March 31,
2017
September 30,
2016
151,771
115,939
174,001
138,032
The Blended Benchmark is composed of 60% S&P/TSX Composite
Index and 40% S&P/TSX Small Cap Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Growth Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31, 2017
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
9,899
–
9,899
1.5
September 30, 2016
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
20,182
–
20,182
3.1
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
543,428
–
–
–
543,428
–
–
23,207
–
–
–
23,207
–
–
39,982
81
–
–
40,063
–
–
606,617
81
–
–
606,698
–
–
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
The following tables reconcile the Fund’s level 3 fair value
measurements for the periods ended March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Balance at Beginning of Period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
March 31, 2017
Equities
39,982
1,995
–
(2,192)
–
11,162
50,947
Debt
Instruments
Total
81 40,063
–
1,995
(37)
(37)
– (2,192)
17
17
–
61
11,162
51,008
11,162
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $198,000 (September 30,
2016 – $404,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
562,120
–
–
–
562,120
–
–
13,143
–
–
–
13,143
–
–
50,947
61
–
–
51,008
–
–
626,210
61
–
–
626,271
–
–
During the period ended March 31, 2017, investments of approximately
$2,192,000 were transferred from level 3 to level 1 as these securities
became actively traded.
September 30, 2016
($’000)
Balance at Beginning of Period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
Equities
22,481
2,192
–
–
–
15,309
39,982
Debt
Instruments
Total
122 22,603
–
2,192
(74)
(74)
–
–
33
33
–
81
15,309
40,063
15,309
The Manager utilizes a variety of valuation techniques in determining the
fair value of securities classified as level 3, including the use of
comparable recent arm’s length transactions, reference to other
instruments that are substantially the same, discounted cash flow
analysis, option pricing models and other techniques commonly used by
market participants. The key inputs used in the valuation techniques may
vary time to time depending on company specific factors and economic
or market conditions. As at March 31, 2017 and September 30, 2016, if
the value of the level 3 investments increased or decreased by 10 percent,
Net Assets would have increased or decreased, respectively, by
approximately $5,101,000 (September 30, 2016 – $4,006,000).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
23
AGF Canadian Growth Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
($’000)
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
March 31, 2016
% of Gross
Income
% of Gross
Income
($’000)
158
–
(3)
100.0
–
(1.7)
186
–
(9)
100.0
–
(5.0)
(47)
(29.9)
(53)
(28.5)
108
68.4
124
66.5
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
24
March 31,
2017
September 30,
2016
38,088
–
40,031
39,404
–
41,681
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Large Cap Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
108,117
–
446
–
45
70
–
–
–
–
–
615
109,293
September 30,
2016
$
104,429
–
373
–
557
12
–
–
–
–
–
615
105,986
$
$
–
–
–
–
42
98
198
28
78
–
–
444
108,849
86,148
$
$
–
–
–
–
35
68
143
25
166
–
–
437
105,549
85,046
$
$
$
$
$
$
$
$
$
92,187
–
6,806
–
2,097
–
5,461
2,298
–
$
$
$
$
$
$
$
$
$
91,494
–
5,347
–
1,283
–
5,032
2,393
–
$
$
$
$
$
$
$
$
$
20.13
–
21.95
–
11.24
–
15.49
19.67
–
$
$
$
$
$
$
$
$
$
19.05
–
20.66
–
10.52
–
15.25
19.08
–
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
25
AGF Canadian Large Cap Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
26
2017
$
3,063
1
1,470
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
–
2
872
2,586
7,120
–
1,772
2,646
–
–
–
–
–
–
–
–
7,120
(0)
2,646
948
910
67
8
11
–
–
15
–
–
1
–
112
–
86
13
7
1
–
13
–
1
1
–
110
–
–
1,162
–
1,142
(11)
1,151
(59)
1,083
$
5,969
$
1,563
$
$
$
$
$
$
$
$
$
5,046
–
378
–
113
–
299
133
–
$
$
$
$
$
$
$
$
$
1,381
–
45
–
16
–
84
37
–
$
$
$
$
$
$
$
$
$
1.08
–
1.30
–
0.70
–
0.87
1.10
–
$
$
$
$
$
$
$
$
$
0.27
–
0.25
–
0.27
–
0.26
0.28
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash distributions from underlying
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
5,969
SEMI-ANNUAL REPORT 2017
$
–
1,563
1
(1,470)
(872)
(2,586)
(4,273)
(1,772)
(2,203)
7,558
9,195
(3,063)
–
–
–
–
–
–
–
–
–
–
–
–
–
7
30
2,172
4
(55)
5,861
(161)
(161)
12,342
8,100
(14,280)
(2,099)
(13,501)
(5,562)
–
(1)
$
73
373
446
$
299
23
321
$
$
$
1
–
–
$
$
$
2
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2016
AGF Canadian Large Cap Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
91,494
–
5,347
–
1,283
–
5,032
2,393
–
2016
$
91,412
–
2,704
–
313
–
5,094
2,431
–
105,549
101,954
5,046
–
378
–
113
–
299
133
–
5,969
1,381
–
45
–
16
–
84
37
–
1,563
8,583
–
627
–
639
–
507
350
–
10,706
6,302
–
558
–
–
–
84
109
–
7,053
1,259
–
858
–
380
–
43
–
–
2,540
1,235
–
727
–
419
–
26
2
–
2,409
–
–
–
–
–
–
78
27
–
105
–
–
–
–
–
–
80
23
–
103
(12,272)
–
(404)
–
(318)
–
(271)
(548)
–
(13,813)
(10,447)
–
(439)
–
(5)
–
(353)
(409)
–
(11,653)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(1,923)
–
–
–
–
–
(15)
–
–
(1,938)
2016
$
(2,400)
(3,205)
–
–
–
–
–
(28)
(5)
–
(3,238)
(5,326)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(212)
(57)
–
(269)
–
–
–
–
–
–
(202)
(59)
–
(261)
3,300
(4,024)
92,187
–
6,806
–
2,097
–
5,461
2,298
–
86,678
–
3,595
–
743
–
4,785
2,129
–
108,849
$
97,930
27
AGF Canadian Large Cap Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
86,147,865
108,116,813
86,147,865
108,116,813
Equity Fund (99.3%)
1,952,624 AGF Canadian Large Cap
Dividend Fund –
Series S Units*
Total Portfolio (99.3%)
* AGF Canadian Large Cap Dividend Class (the “Fund”) invests in units of AGF
Canadian Large Cap Dividend Fund (the “Underlying Fund”).
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to the Fund.
28
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Large Cap Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide superior returns with
reasonable risk through a combination of dividends and capital growth
from Canadian companies and interest income. The Fund primarily
invests in units of the Underlying Fund.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Underlying Fund’s
major portfolio categories, as a percentage of the Underlying Fund’s Net
Assets, are included in the following tables. The Fund is indirectly
exposed to these portfolio categories as a result of investing
substantially all of its assets in units of the Underlying Fund.
Portfolio by Country
Portfolio by Sector
March 31, 2017
(%)
Financials
Energy
Industrials
Consumer Staples
Information Technology
Materials
ETFs – International Equity
Consumer Discretionary
Health Care
Telecommunication Services
ETFs – United States Equity
Utilities
Real Estate
Short-Term Investments
Foreign Exchange Forward Contracts
30.8
14.0
13.2
9.7
7.6
7.3
3.7
3.6
3.5
3.0
1.6
0.8
0.6
0.1
0.0
September 30, 2016
(%)
Financials
Energy
Industrials
Consumer Staples
Materials
Information Technology
Consumer Discretionary
Health Care
Telecommunication Services
ETFs – International Equity
ETFs – United States Equity
Real Estate
Utilities
Short-Term Investments
Foreign Exchange Forward Contracts
28.4
13.6
12.9
10.7
7.4
7.3
4.1
3.9
3.6
3.3
1.5
1.5
1.3
0.2
0.0
March 31, 2017
(%)
Canada
United States
Japan
South Korea
Germany
United Kingdom
China
France
Switzerland
Thailand
Belgium
Netherlands
Czech Republic
Hong Kong
Australia
Austria
Italy
Singapore
Norway
Israel
Spain
Brazil
Foreign Exchange Forward Contracts
52.1
24.9
5.2
2.8
2.7
2.3
1.3
1.0
1.0
0.9
0.9
0.8
0.5
0.5
0.5
0.4
0.4
0.4
0.3
0.3
0.2
0.1
0.0
September 30, 2016
(%)
March 31, 2017
(%)
Canada
United States
Japan
Germany
South Korea
United Kingdom
China
France
Netherlands
Belgium
Switzerland
Australia
Czech Republic
Austria
Hong Kong
Israel
Singapore
Spain
Norway
Italy
Brazil
Thailand
Foreign Exchange Forward Contracts
53.3
24.5
5.7
2.7
2.3
2.0
1.3
1.2
1.1
1.1
1.0
0.6
0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.2
0.1
0.1
0.0
Canadian Equity
United States Equity
International Equity
Short-Term Investments
Foreign Exchange Forward Contracts
52.0
24.9
22.5
0.1
0.0
September 30, 2016
(%)
Canadian Equity
United States Equity
International Equity
Short-Term Investments
Foreign Exchange Forward Contracts
53.1
24.5
21.9
0.2
0.0
Portfolio by Asset Mix
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
29
AGF Canadian Large Cap Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the Underlying Fund as at March 31,
2017 and September 30, 2016 are included in the following tables:
March 31, 2017
AGF Canadian Large Cap Dividend Fund
September 30, 2016
AGF Canadian Large Cap Dividend Fund
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
108,117
7.3
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
104,429
7.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Underlying Fund had
no significant investments in debt instruments and derivatives.
Accordingly, the Underlying Fund was not subject to significant credit
risk.
Interest Rate Risk
The majority of the Underlying Fund’s financial assets and liabilities are
non-interest bearing, accordingly, the Underlying Fund is not subject to
significant amounts of risk due to fluctuations in the prevailing levels of
market interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 20 percent change in
benchmarks (September 30, 2016 – 25 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
S&P/TSX Composite Index
S&P/TSX 60 Index
March 31,
2017
September 30,
2016
15,619
16,262
20,029
21,119
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
30
Currency Risk
As at March 31, 2017 and September 30, 2016, the Fund did not have a
significant direct exposure to currency risk.
The amounts in the following tables are based on the fair value of the
Underlying Fund’s financial instruments (including cash and cash
equivalents) as well as the underlying principal amounts of foreign
exchange forward contracts, as applicable. Other financial assets
(including cash collateral received for securities on loan, dividends,
distributions and interest receivables and receivables for investments
sold) and financial liabilities (including payable for cash collateral under
securities lending and payable for investments purchased) that are
denominated in foreign currencies do not expose the Underlying
Fund to significant currency risk.
Currencies to which the Underlying Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
March 31, 2017
($’000)
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
Hong Kong Dollar
South Korean Won
Czech Koruna
Australian Dollar
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
467,408
80,972
68,345
34,674
15,107
13,867
9,658
7,084
6,682
5,693
4,840
1,221
276
% of
Underlying
Fund’s
Net Assets
(25,305) 442,103
–
80,972
–
68,345
–
34,674
–
15,107
–
13,867
–
9,658
–
7,084
–
6,682
–
5,693
–
4,840
–
1,221
–
276
29.7
5.4
4.6
2.3
1.0
0.9
0.6
0.5
0.4
0.4
0.3
0.1
0.0
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
% of
Underlying
Fund’s
Net Assets
September 30, 2016
($’000)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
Hong Kong Dollar
South Korean Won
Australian Dollar
Czech Koruna
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
445,581
84,607
73,810
30,310
14,666
12,782
9,179
8,722
6,722
5,167
1,056
973
120
(24,483) 421,098
–
84,607
–
73,810
–
30,310
–
14,666
–
12,782
–
9,179
–
8,722
–
6,722
–
5,167
–
1,056
–
973
–
120
28.4
5.7
5.0
2.0
1.0
0.9
0.6
0.6
0.5
0.3
0.1
0.1
0.0
** Includes both monetary and non-monetary instruments, as applicable
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Large Cap Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
As at March 31, 2017 and September 30, 2016, if the Canadian dollar had
strengthened or weakened by 2 percent, in relation to all currencies, with all
other variables held constant, the Fund’s Net Assets would have decreased
or increased, respectively, by approximately $1,008,000 (September 30,
2016 – $937,000) as a result of the Underlying Fund’s exposure to currency
risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
108,117
108,117
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
108,117
108,117
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
104,429
104,429
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
104,429
104,429
–
–
September 30, 2016
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
31
AGF China Focus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Approved by the Board
W. Robert Farquharson, Director
32
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
89,612
–
840
–
10
1,092
–
–
1
–
–
–
91,555
September 30,
2016
$
99,384
–
1,368
–
86
265
–
–
134
–
–
–
101,237
$
$
–
–
–
–
49
231
286
–
404
–
–
970
90,585
58,805
$
$
–
–
–
–
47
167
284
–
–
–
–
498
100,739
66,331
$
$
$
$
$
$
$
$
$
86,880
–
3,705
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
97,887
–
2,852
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
25.42
–
30.05
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
24.64
–
28.99
–
–
–
–
–
–
AGF China Focus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
10
–
6
6,600
2016
$
(2,246)
4,370
–
108
–
51
6,676
(8,197)
(1,362)
–
–
–
12
$
STATEMENTS OF CASH FLOWS (UNAUDITED)
–
–
7
15
4,397
15
(1,340)
1,154
1,388
133
10
11
11
–
13
–
1
1
–
161
5
174
18
6
9
–
12
–
5
1
–
161
28
127
1,627
139
1,941
(7)
1,620
(56)
1,885
2,777
$
(3,225)
$
$
$
$
$
$
$
$
$
2,628
–
149
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
(2,797)
–
(433)
5
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.70
–
1.41
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
(0.61)
–
(0.91)
2.72
–
–
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
Income taxes (paid) recovered *
2,777
2016
$
(3,225)
–
(18)
(6,600)
(6,676)
2,246
(12,925)
8,197
(17,444)
26,628
26,784
–
–
–
–
133
409
–
–
–
–
–
–
–
–
2
64
12,325
35
(1)
8,061
–
–
2,741
52,761
(15,594)
(12,853)
(58,950)
(6,189)
–
18
$
(528)
1,368
840
$
1,872
711
2,601
$
6
$
51
$
$
136
–
$
$
491
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
33
AGF China Focus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
34
2017
97,887
–
2,852
–
–
–
–
–
–
100,739
2016
$
103,804
–
12,683
58
–
–
–
–
–
116,545
2,628
–
149
–
–
–
–
–
–
2,777
(2,797)
–
(433)
5
–
–
–
–
–
(3,225)
2,334
–
176
–
–
–
–
–
–
2,510
37,357
–
471
–
–
–
–
–
–
37,828
245
–
863
–
–
–
–
–
–
1,108
15,103
–
323
–
–
–
–
–
–
15,426
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(14,754)
–
(332)
–
–
–
–
–
–
(15,086)
(42,449)
–
(1,381)
(63)
–
–
–
–
–
(43,893)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(1,460)
–
(3)
–
–
–
–
–
–
(1,463)
2016
$
(12,931)
(15,645)
–
(22)
–
–
–
–
–
–
(15,667)
(6,306)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(10,154)
(9,531)
86,880
–
3,705
–
–
–
–
–
–
95,373
–
11,641
–
–
–
–
–
–
90,585
$
107,014
AGF China Focus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Average
Cost ($)
No. of Shares
Fair
Value ($)
Consumer Discretionary (9.3%)
No. of Shares
Average
Cost ($)
Fair
Value ($)
651,759
1,213,296
1,865,055
1,519,535
1,976,423
3,495,958
3,953,462
6,549,145
891,800
4,845,262
940,384
7,489,529
1,360,693
1,499,685
Real Estate (3.9%)
1,500,000 China ZhengTong Auto
Services Holdings Limited
42,000 Ctrip.com International
Limited ADR
250,000 Fuyao Glass Industry Group
Company Limited
228,000 Samsonite International SA
180,000 Sands China Limited
500,000 Stella International
Holdings Limited
400,000 China Overseas Land &
Investment Limited
550,000 China Resources Land Limited
1,213,988
1,198,688
2,462,058
2,745,209
898,473
955,773
1,046,218
1,152,913
1,104,127
1,108,850
1,095,924
7,672,434
1,098,583
8,408,370
Utilities (1.6%)
1,306,376
1,487,707
Commissions and other portfolio
transaction costs (Note 2)
2,167,053
1,805,791
3,972,844
2,533,414
1,984,979
4,518,393
3,596,581
4,095,216
4,757,440
6,416,956
2,844,601
3,509,818
1,349,905
1,535,963
1,097,641
1,011,826
3,621,355
4,520,275
1,851,637
951,731
20,070,891
3,572,961
1,139,651
25,802,666
1,124,165
1,085,749
562,042
1,072,765
1,009,687
1,103,648
791,653
1,288,422
568,725
2,932,107
642,209
4,107,044
7,455,919
2,665,052
1,258,836
822,910
12,202,717
10,324,636
2,867,821
1,359,639
15,173,860
29,725,956
794,492
824,485
1,618,977
1,120,349
870,140
1,990,489
Telecommunication Services (8.3%)
450,000 China Mobile Limited
1,450,000 China Telecom
Corporation Limited
700,000 China Gas Holdings Limited
Consumer Staples (1.6%)
540,000 China Mengniu Dairy
Company Limited
(166,536)
–
Energy (5.0%)
2,350,000 China Petroleum & Chemical
Corporation ‘H’
1,250,000 CNOOC Limited
Financials (28.5%)
6,200,000 Bank of China Limited ‘H’
6,000,000 China Construction Bank
Corporation ‘H’
860,000 China Life Insurance Company
Limited ‘H’
320,000 China Pacific Insurance Group
Company Limited ‘H’
450,000 Haitong Securities
Company Limited
5,200,000 Industrial & Commercial Bank
of China Limited ‘H’
480,000 Ping An Insurance (Group)
Company of China
Limited ‘H’
900,000 Value Partners Group Limited
Total Portfolio (98.9%)
58,804,985
89,611,546
ADR – American Depository Receipt
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF China Focus Class (the “Fund”).
Health Care (1.2%)
900,000 Universal Medical Financial &
Technical Advisory Services
Company Limited
Industrials (4.5%)
572,000 China Communications
Construction Company
Limited ‘H’
464,000 China State Construction
International
Holdings Limited
1,410,000 SITC International Holdings
Company Limited
900,000 Zoomlion Heavy Industry
Science and Technology
Company Limited
Information Technology (32.8%)
72,000 Alibaba Group Holding
Limited ADR
12,500 Baidu Inc. ADR
3,600 NetEase Inc. ADR
398,000 Tencent Holdings Limited
Materials (2.2%)
248,000 Anhui Conch Cement Company
Limited ‘H’
4,500,000 West China Cement Limited
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
35
AGF China Focus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term capital growth
by investing primarily in stocks and bonds of companies based in China,
or in companies that will benefit from economic development and
growth in the People’s Republic of China.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
China
Hong Kong
United States
91.4
6.3
1.2
September 30, 2016
(%)
China
Hong Kong
93.1
5.6
Portfolio by Sector
September 30, 2016
(%)
International Equity
98.7
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives.
Accordingly, the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 45 percent change in
benchmark (September 30, 2016 – 55 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
March 31, 2017
(%)
Information Technology
Financials
Consumer Discretionary
Telecommunication Services
Energy
Industrials
Real Estate
Materials
Utilities
Consumer Staples
Health Care
32.8
28.5
9.3
8.3
5.0
4.5
3.9
2.2
1.6
1.6
1.2
September 30, 2016
(%)
Benchmark
Information Technology
Financials
Telecommunication Services
Real Estate
Consumer Discretionary
Energy
Industrials
Utilities
Consumer Staples
Health Care
Materials
33.6
28.4
8.5
6.5
6.4
4.4
3.5
2.3
1.9
1.9
1.3
MSCI China Free Index
Portfolio by Asset Mix
March 31, 2017
(%)
International Equity
United States Equity
97.7
1.2
36
Impact on Net Assets ($’000)
March 31,
2017
September 30,
2016
40,079
54,419
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF China Focus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
March 31, 2017
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the period ended March 31, 2017, the Fund did not hold financial
instruments within level 3 of the fair value hierarchy.
($’000)
Hong Kong Dollar
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
73,111
17,627
–
–
73,111
17,627
80.7
19.5
September 30, 2016
($’000)
Hong Kong Dollar
United States Dollar
The following table reconciles the Fund’s level 3 fair value
measurements for the period ended September 30, 2016.
September 30, 2016
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
82,196
18,589
–
–
82,196
18,589
81.6
18.5
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $1,815,000 (September 30,
2016 – $2,016,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Balance at Beginning of Period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
89,612
–
–
–
89,612
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
89,612
–
–
–
89,612
–
–
Level 1
Level 2
Level 3
Total
99,384
–
–
–
99,384
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
99,384
–
–
–
99,384
–
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Total
1,139
–
(522)
–
(537)
–
–
–
–
–
1,139
–
(522)
–
(537)
(80)
–
–
–
(80)
–
–
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
March 31, 2016
% of Gross
($’000)
Income
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
Debt
Instruments
Equities
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
($’000)
% of Gross
Income
18
–
(0)
100.0
–
(1.5)
10
–
(0)
100.0
–
(4.6)
(6)
(30.9)
(3)
(28.7)
12
67.6
7
66.7
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
12,612
–
13,311
10,093
–
10,998
37
AGF Diversified Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Approved by the Board
W. Robert Farquharson, Director
38
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
54,812
–
76
–
398
79
–
–
182
–
–
–
55,547
September 30,
2016
$
57,650
–
41
–
–
28
–
–
192
–
–
–
57,911
$
$
–
–
–
–
11
64
91
–
555
–
–
721
54,826
52,428
$
$
–
–
–
–
12
33
40
–
–
–
–
85
57,826
55,292
$
$
$
$
$
$
$
$
$
21,526
–
2,358
8,923
22,019
–
–
–
–
$
$
$
$
$
$
$
$
$
25,798
–
2,728
8,708
20,592
–
–
–
–
$
$
$
$
$
$
$
$
$
10.20
–
11.43
10.50
13.75
–
–
–
–
$
$
$
$
$
$
$
$
$
10.05
–
11.18
10.20
13.36
–
–
–
–
AGF Diversified Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF CASH FLOWS (UNAUDITED)
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
1,339
–
205
2016
$
26
1,570
–
$
1,315
2
64
(563)
818
–
–
–
–
–
–
–
–
1,570
–
818
288
358
24
6
10
–
–
12
–
1
1
–
37
–
46
11
6
1
–
10
–
1
1
–
49
–
–
379
–
483
(29)
350
(34)
449
1,220
$
369
$
$
$
$
$
$
$
$
$
296
–
55
252
617
–
–
–
–
$
$
$
$
$
$
$
$
$
64
–
27
–
278
–
–
–
–
$
$
$
$
$
$
$
$
$
0.12
–
0.23
0.30
0.39
–
–
–
–
$
$
$
$
$
$
$
$
$
0.02
–
0.06
–
0.20
–
–
–
–
For the periods ended March 31,
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
2017
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash distributions from underlying
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
1,220
2016
$
–
–
(205)
(64)
(26)
(1,294)
563
(4,234)
6,216
3,561
(1,349)
–
(1,312)
–
10
(3)
–
–
–
–
–
–
–
–
(1)
31
4,602
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
369
2
(25)
(1,143)
–
–
1,696
7,054
(6,263)
(4,567)
(5,469)
1,585
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents (cash overdraft)
beginning of period
Cash and Cash Equivalents End of Period
–
–
35
442
$
41
76
$
(5)
437
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
$
$
$
–
–
–
$
$
$
2
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
39
AGF Diversified Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
40
2017
25,798
–
2,728
8,708
20,592
–
–
–
–
2016
$
29,118
–
4,332
–
14,667
–
–
–
–
57,826
48,117
296
–
55
252
617
–
–
–
–
1,220
64
–
27
–
278
–
–
–
–
369
825
–
239
–
1,201
–
–
–
–
2,265
3,018
–
442
–
3,963
–
–
–
–
7,423
308
–
157
–
459
–
–
–
–
924
157
–
240
–
–
–
–
–
–
397
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(4,397)
–
(703)
(37)
(704)
–
–
–
–
(5,841)
(3,623)
–
(732)
–
(287)
–
–
–
–
(4,642)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(1,304)
–
(118)
–
(146)
–
–
–
–
(1,568)
2016
$
(1,278)
–
(23)
–
(304)
–
–
–
–
(1,605)
(4,220)
1,573
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(3,000)
1,942
21,526
–
2,358
8,923
22,019
–
–
–
–
27,456
–
4,286
–
18,317
–
–
–
–
54,826
$
50,059
AGF Diversified Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
52,428,160
54,812,270
52,428,160
54,812,270
Balanced Fund (100.0%)
3,192,328 AGF Diversified Income Fund –
Series S Units*
Total Portfolio (100.0%)
* AGF Diversified Income Class (the “Fund”) invests in units of AGF Diversified
Income Fund (the “Underlying Fund”).
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to the Fund.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
41
AGF Diversified Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to achieve a high level of current
income and long-term growth of capital by investing primarily in units of
the Underlying Fund.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Underlying Fund’s
major portfolio categories, as a percentage of the Underlying Fund’s Net
Assets, are included in the following tables. The Fund is indirectly
exposed to these portfolio categories as a result of investing
substantially all of its assets in units of the Underlying Fund.
Portfolio by Country
March 31, 2017
(%)
United States
Canada
United Kingdom
Japan
South Korea
Switzerland
Germany
Peru
Ireland
China
Mexico
Israel
Italy
Cayman Islands
Hungary
Hong Kong
Jersey
Spain
Netherlands
Australia
Belgium
Norway
France
Singapore
Foreign Exchange Forward Contracts
44.8
36.1
2.8
2.2
1.2
1.1
1.0
1.0
1.0
1.0
0.9
0.7
0.7
0.6
0.6
0.5
0.5
0.4
0.3
0.3
0.3
0.3
0.3
0.2
0.2
September 30, 2016
(%)
United States
Canada
United Kingdom
Switzerland
Mexico
China
Japan
Peru
Israel
Germany
Italy
Netherlands
Cayman Islands
Hungary
South Korea
France
Australia
Belgium
Portugal
Norway
Spain
Hong Kong
Singapore
Foreign Exchange Forward Contracts
47.6
35.0
3.3
2.1
1.5
1.5
1.4
1.0
0.8
0.8
0.8
0.6
0.6
0.5
0.5
0.4
0.4
0.3
0.3
0.3
0.2
0.2
0.2
0.0
42
Portfolio by Sector
March 31, 2017
(%)
Corporate Bonds
Government Bonds
High Yield Bonds
Financials
Information Technology
Energy
Industrials
Health Care
Consumer Discretionary
Emerging Markets Bonds
Consumer Staples
Materials
Utilities
Telecommunication Services
Supranational Bonds
Real Estate
Foreign Exchange Forward Contracts
32.9
18.7
8.5
7.1
6.1
4.9
3.4
3.1
2.7
2.5
2.0
1.9
1.6
1.4
1.2
0.8
0.2
September 30, 2016
(%)
Corporate Bonds
Government Bonds
High Yield Bonds
Financials
Health Care
Information Technology
Industrials
Consumer Staples
Energy
Emerging Markets Bonds
Consumer Discretionary
Materials
Utilities
Telecommunication Services
Real Estate
Supranational Bonds
Foreign Exchange Forward Contracts
35.7
19.4
10.7
4.9
4.1
3.9
3.3
3.2
3.2
3.1
2.5
2.1
1.5
1.3
0.9
0.5
0.0
Portfolio by Asset Mix
March 31, 2017
(%)
Canadian Fixed Income
United States Fixed Income
United States Equity
International Equity
International Fixed Income
Canadian Equity
Foreign Exchange Forward Contracts
27.5
27.4
17.4
9.0
8.9
8.6
0.2
September 30, 2016
(%)
United States Fixed Income
Canadian Fixed Income
United States Equity
International Equity
International Fixed Income
Canadian Equity
Foreign Exchange Forward Contracts
32.6
28.6
15.0
9.5
8.2
6.4
0.0
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Diversified Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the Underlying Fund as at March 31,
2017 and September 30, 2016 are included in the following tables:
March 31, 2017
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
54,812
25.4
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
57,650
24.2
AGF Diversified Income Fund
September 30, 2016
AGF Diversified Income Fund
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 15 percent change in
benchmarks (September 30, 2016 – 20 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Underlying
Fund invested in debt instruments, foreign exchange forward contracts,
preferred shares, short-term investments and cash and cash
equivalents, as applicable, with the following credit ratings:
Percentage of Underlying Fund’s Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
March 31,
2017
September 30,
2016
19.2
0.8
3.1
17.4
11.1
8.4
1.8
7.9
19.6
(0.0)
2.4
19.5
14.7
7.7
2.3
7.4
Interest Rate Risk
As at March 31, 2017 and September 30, 2016, the Underlying
Fund’s exposure to debt instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
March 31,
2017
September 30,
2016
548
9,685
33,683
93,835
3,791
10,292
38,490
112,765
Benchmark
FTSE TMX Canada Universe Bond Index
Blended Benchmark
March 31,
2017
September 30,
2016
7,556
8,152
10,916
11,930
The Blended Benchmark is composed of 50% FTSE TMX Canada
Universe Bond Index, 25% Bloomberg Barclays U.S. Corporate HighYield Bond Index (local$), 15% MSCI All Country World Index (local$)
and 10% S&P/TSX Composite Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
As at March 31, 2017 and September 30, 2016, the Fund did not have a
significant direct exposure to currency risk.
The amounts in the following tables are based on the fair value of the
Underlying Fund’s financial instruments (including cash and cash
equivalents) as well as the underlying principal amounts of foreign
exchange forward contracts, as applicable. Other financial assets
(including cash collateral received for securities on loan, dividends,
distributions and interest receivables and receivables for investments
sold) and financial liabilities (including payable for cash collateral under
securities lending and payable for investments purchased) that are
denominated in foreign currencies do not expose the Underlying
Fund to significant currency risk.
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at March 31, 2017 and September 30, 2016, if the yield curve had
shifted in parallel by 25 basis points, with all other variables held
constant, Net Assets would have increased or decreased, respectively,
by approximately $558,000 (September 30, 2016 – $619,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
43
AGF Diversified Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Currencies to which the Underlying Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
March 31, 2017
($’000)
United States Dollar
Hong Kong Dollar
Peruvian New Sol
Indonesian Rupiah
Mexican Peso
Australian Dollar
Norwegian Krone
Singapore Dollar
Euro Currency
Pound Sterling
Japanese Yen
Swiss Franc
Foreign
% of
Exchange
Underlying
Financial Forward
Fund’s
Instruments Contracts Total** Net Assets
118,845
3,185
2,161
1,240
966
663
604
507
7,486
2,387
4,755
16
(94,720)
–
–
–
–
–
–
–
(7,075)
(2,217)
(4,598)
–
24,125
3,185
2,161
1,240
966
663
604
507
411
170
157
16
11.2
1.5
1.0
0.6
0.4
0.3
0.3
0.2
0.2
0.1
0.1
0.0
September 30, 2016
($’000)
United States Dollar
Hong Kong Dollar
Euro Currency
Peruvian New Sol
Mexican Peso
Indonesian Rupiah
Swiss Franc
Australian Dollar
Norwegian Krone
Singapore Dollar
Pound Sterling
Japanese Yen
Foreign
% of
Exchange
Underlying
Financial Forward
Fund’s
Instruments Contracts Total** Net Assets
139,212
3,941
6,708
2,465
2,369
1,257
852
840
649
398
3,963
3,351
(97,741)
–
(3,401)
–
–
–
–
–
–
–
(3,730)
(3,296)
41,471
3,941
3,307
2,465
2,369
1,257
852
840
649
398
233
55
17.4
1.7
1.4
1.0
1.0
0.5
0.4
0.4
0.3
0.2
0.1
0.0
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 2
Level 3
Total
–
–
–
54,812
54,812
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
54,812
54,812
–
–
Level 1
Level 2
Level 3
Total
–
–
–
57,650
57,650
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
57,650
57,650
–
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar had
strengthened or weakened by 2 percent, in relation to all currencies, with all
other variables held constant, the Fund’s Net Assets would have decreased
or increased, respectively, by approximately $174,000 (September 30,
2016 – $280,000) as a result of the Underlying Fund’s exposure to currency
risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
44
Level 1
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Emerging Markets Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
27,680
–
366
–
5
228
–
–
–
–
–
15
28,294
September 30,
2016
$
31,337
–
424
–
9
152
–
–
–
–
–
15
31,937
$
$
–
–
–
–
15
69
116
–
–
–
–
200
28,094
23,148
$
$
–
–
–
–
14
28
110
–
–
–
–
152
31,785
26,271
$
$
$
$
$
$
$
$
$
23,810
–
4,140
–
144
–
–
–
–
$
$
$
$
$
$
$
$
$
27,736
–
3,961
–
88
–
–
–
–
$
$
$
$
$
$
$
$
$
19.18
–
21.04
–
12.97
–
–
–
–
$
$
$
$
$
$
$
$
$
18.22
–
19.88
–
12.14
–
–
–
–
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
45
AGF Emerging Markets Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
46
2017
$
1,617
1
768
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
(534)
1,852
–
865
1
723
(358)
1,231
–
–
–
–
–
–
–
–
1,852
(1)
1,230
344
451
47
7
11
–
–
11
–
–
1
–
43
–
76
13
7
2
–
10
–
–
1
–
62
–
–
464
–
622
(27)
437
(52)
570
$
1,415
$
660
$
$
$
$
$
$
$
$
$
1,187
–
221
–
7
–
–
–
–
$
$
$
$
$
$
$
$
$
511
–
134
–
15
–
–
–
–
$
$
$
$
$
$
$
$
$
0.85
–
1.10
–
0.92
–
–
–
–
$
$
$
$
$
$
$
$
$
0.26
–
0.34
–
0.31
–
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash distributions from underlying
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
SEMI-ANNUAL REPORT 2017
$
–
660
1
(768)
(723)
534
(237)
358
(4,802)
5,669
12,378
(1,617)
–
(865)
–
–
–
–
–
–
–
–
–
–
–
1
41
5,038
–
(64)
6,943
–
–
1,270
7,275
(6,366)
(5,096)
(13,494)
(6,219)
–
(1)
$
(58)
424
366
$
724
151
874
$
$
$
1
–
–
$
$
$
1
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
1,415
2016
AGF Emerging Markets Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
27,736
–
3,961
–
88
–
–
–
–
2016
$
34,349
–
7,721
–
513
–
–
–
–
31,785
42,583
1,187
–
221
–
7
–
–
–
–
1,415
511
–
134
–
15
–
–
–
–
660
916
–
213
–
50
–
–
–
–
1,179
886
–
651
–
–
–
–
–
–
1,537
201
–
355
–
–
–
–
–
–
556
5,406
–
102
–
–
–
–
–
–
5,508
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(5,252)
–
(610)
–
(1)
–
–
–
–
(5,863)
(5,332)
–
(2,164)
–
(4)
–
–
–
–
(7,500)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(978)
–
–
–
–
–
–
–
–
(978)
2016
$
(5,106)
(6,035)
–
–
–
–
–
–
–
–
(6,035)
(6,490)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(3,691)
(5,830)
23,810
–
4,140
–
144
–
–
–
–
29,785
–
6,444
–
524
–
–
–
–
28,094
$
36,753
47
AGF Emerging Markets Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
23,147,878
27,679,853
23,147,878
27,679,853
Equity Fund (98.5%)
1,952,035 AGF Emerging Markets Fund –
Series S Units*
Total Portfolio (98.5%)
* AGF Emerging Markets Class (the “Fund”) invests in units of AGF Emerging
Markets Fund (the “Underlying Fund”).
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to the Fund.
48
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Emerging Markets Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide superior capital growth by
investing primarily in shares of companies that are located or active
mainly in emerging market countries. The Fund primarily invests in
units of the Underlying Fund.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Underlying Fund’s
major portfolio categories, as a percentage of the Underlying Fund’s Net
Assets, are included in the following tables. The Fund is indirectly
exposed to these portfolio categories as a result of investing
substantially all of its assets in units of the Underlying Fund.
Portfolio by Sector
March 31, 2017
(%)
Financials
Information Technology
Consumer Discretionary
Energy
Materials
Health Care
Consumer Staples
Industrials
Telecommunication Services
Utilities
Real Estate
21.6
18.5
13.2
8.2
8.2
7.7
7.0
5.5
3.9
2.6
2.3
Portfolio by Country
March 31, 2017
(%)
September 30, 2016
(%)
China
India
South Korea
Brazil
Mexico
Taiwan
Thailand
Hong Kong
South Africa
Indonesia
Peru
Czech Republic
Turkey
Singapore
Chile
United Arab Emirates
Argentina
Israel
Canada
Jersey
Malaysia
17.0
14.8
11.5
8.0
7.1
6.4
5.7
4.8
4.5
4.0
2.4
2.0
1.8
1.8
1.3
1.3
1.1
1.1
1.0
0.6
0.5
Financials
Information Technology
Consumer Discretionary
Health Care
Materials
Consumer Staples
Energy
Industrials
Telecommunication Services
Real Estate
Utilities
20.0
17.2
14.0
9.2
8.7
8.6
8.3
4.6
3.8
2.4
2.0
September 30, 2016
(%)
China
India
South Korea
Taiwan
Mexico
Brazil
Thailand
Hong Kong
South Africa
Indonesia
Peru
Czech Republic
Turkey
Singapore
Canada
United Arab Emirates
Malaysia
Israel
Chile
Argentina
Jersey
18.0
12.7
11.5
8.2
7.5
6.1
6.1
4.6
4.3
3.7
2.6
2.0
2.0
1.7
1.3
1.2
1.2
1.2
1.1
1.0
0.8
Portfolio by Asset Mix
March 31, 2017
(%)
International Equity
Canadian Equity
97.7
1.0
September 30, 2016
(%)
International Equity
Canadian Equity
97.5
1.3
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the Underlying Fund as at March 31,
2017 and September 30, 2016 are included in the following tables:
March 31, 2017
AGF Emerging Markets Fund
September 30, 2016
AGF Emerging Markets Fund
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
27,680
3.8
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
31,337
5.0
49
AGF Emerging Markets Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Underlying Fund had
no significant investments in debt instruments and derivatives.
Accordingly, the Underlying Fund was not subject to significant credit
risk.
Interest Rate Risk
The majority of the Underlying Fund’s financial assets and liabilities are
non-interest bearing, accordingly, the Underlying Fund is not subject to
significant amounts of risk due to fluctuations in the prevailing levels of
market interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 25 percent change in
benchmark (September 30, 2016 – 25 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Currencies to which the Underlying Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
March 31, 2017
($’000)
Hong Kong Dollar
Indian Rupee
South Korean Won
United States Dollar
Brazilian Real
New Taiwanese Dollar
Thai Baht
Mexican Peso
South African Rand
Indonesian Rupiah
Czech Koruna
New Turkish Lira
Singapore Dollar
United Arab Emirates Dinar
Chilean Peso
Malaysian Ringgit
Pound Sterling
MSCI Emerging Markets Index
March 31,
2017
September 30,
2016
5,993
6,806
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
As at March 31, 2017 and September 30, 2016, the Fund did not have a
significant direct exposure to currency risk.
The amounts in the following tables are based on the fair value of the
Underlying Fund’s financial instruments (including cash and cash
equivalents) as well as the underlying principal amounts of foreign
exchange forward contracts, as applicable. Other financial assets
(including cash collateral received for securities on loan, dividends,
distributions and interest receivables and receivables for investments
sold) and financial liabilities (including payable for cash collateral under
securities lending and payable for investments purchased) that are
denominated in foreign currencies do not expose the Underlying
Fund to significant currency risk.
146,553
106,946
83,073
67,095
55,560
48,323
41,000
39,095
32,403
29,141
14,769
13,331
13,014
10,177
9,401
3,749
138
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
146,553
106,946
83,073
67,095
55,560
48,323
41,000
39,095
32,403
29,141
14,769
13,331
13,014
10,177
9,401
3,749
138
20.3
14.8
11.5
9.3
7.7
6.7
5.7
5.4
4.5
4.0
2.0
1.8
1.8
1.4
1.3
0.5
0.0
September 30, 2016
Impact on Net Assets ($’000)
Benchmark
Foreign
% of
Exchange
Underlying
Financial Forward
Fund’s
Instruments Contracts Total** Net Assets
($’000)
Hong Kong Dollar
Indian Rupee
South Korean Won
United States Dollar
New Taiwanese Dollar
Thai Baht
Brazilian Real
Mexican Peso
South African Rand
Indonesian Rupiah
Czech Koruna
New Turkish Lira
Singapore Dollar
United Arab Emirates Dinar
Malaysian Ringgit
Chilean Peso
Pound Sterling
Foreign
% of
Exchange
Underlying
Financial Forward
Fund’s
Instruments Contracts Total** Net Assets
132,251
83,117
72,282
54,290
52,906
38,450
37,090
34,496
27,590
22,955
13,043
12,377
10,916
7,916
7,794
7,212
141
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
132,251
83,117
72,282
54,290
52,906
38,450
37,090
34,496
27,590
22,955
13,043
12,377
10,916
7,916
7,794
7,212
141
21.1
13.3
11.5
8.7
8.4
6.1
5.9
5.5
4.4
3.7
2.1
2.0
1.7
1.3
1.2
1.2
0.0
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, the Fund’s Net Assets would have
decreased or increased, respectively, by approximately $542,000
(September 30, 2016 – $615,000) as a result of the Underlying Fund’s
exposure to currency risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
50
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Emerging Markets Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
27,680
27,680
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
27,680
27,680
–
–
Level 1
Level 2
Level 3
Total
–
–
–
31,337
31,337
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
31,337
31,337
–
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
51
AGF European Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Approved by the Board
W. Robert Farquharson, Director
52
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
118,281
–
383
–
19
–
–
–
304
292
–
–
119,279
September 30,
2016
$
122,190
–
81
–
31
498
–
–
142
284
–
–
123,226
$
$
–
–
–
–
61
271
329
7
–
–
–
668
118,611
116,462
$
$
–
–
–
–
54
158
254
8
–
–
–
474
122,752
132,482
$
$
$
$
$
$
$
$
$
108,207
–
8,718
–
–
–
1,641
45
–
$
$
$
$
$
$
$
$
$
112,885
–
8,107
–
–
–
1,713
47
–
$
$
$
$
$
$
$
$
$
25.89
–
32.91
–
–
–
9.21
12.26
–
$
$
$
$
$
$
$
$
$
23.55
–
29.68
–
–
–
8.75
11.48
–
AGF European Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
1,510
–
1
(259)
2016
$
12,111
13,363
–
2,169
–
4
(20,694)
8,094
(10,427)
–
–
–
25
$
STATEMENTS OF CASH FLOWS (UNAUDITED)
–
–
143
(36)
13,352
125
(10,159)
1,420
1,850
249
13
11
11
–
14
–
1
1
–
211
208
315
25
6
30
–
13
–
3
1
–
239
298
78
2,217
227
3,007
(80)
2,137
(132)
2,875
11,215
$
(13,034)
$
$
$
$
$
$
$
$
$
10,213
–
845
–
–
–
154
3
–
$
$
$
$
$
$
$
$
$
(12,125)
–
(667)
–
–
–
(229)
(13)
–
$
$
$
$
$
$
$
$
$
2.27
–
3.21
–
–
–
0.82
1.02
–
$
$
$
$
$
$
$
$
$
(2.13)
–
(2.40)
–
–
–
(0.87)
(0.78)
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
Income taxes (paid) recovered *
11,215
2016
$
1
(13,034)
(149)
259
20,694
(12,111)
(6,351)
(8,094)
(38,488)
22,610
54,620
–
–
–
–
(162)
(104)
–
(8)
–
–
(42)
–
–
–
7
113
15,573
37
(28)
15,412
(44)
(80)
2,266
5,055
(17,492)
(15,270)
(20,455)
(15,480)
(1)
149
$
303
81
383
$
(68)
153
234
$
1
$
4
$
$
1,140
–
$
$
1,768
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
53
AGF European Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
54
2017
112,885
–
8,107
–
–
–
1,713
47
–
2016
$
151,245
–
8,895
–
–
–
2,924
310
–
122,752
163,374
10,213
–
845
–
–
–
154
3
–
11,215
(12,125)
–
(667)
–
–
–
(229)
(13)
–
(13,034)
1,801
–
370
–
–
–
88
11
–
2,270
3,829
–
510
–
–
–
59
3
–
4,401
50
–
443
–
–
–
–
–
–
493
769
–
156
–
–
–
–
–
–
925
–
–
–
–
–
–
30
–
–
30
–
–
–
–
–
–
35
3
–
38
(15,739)
–
(1,011)
–
–
–
(182)
(15)
–
(16,947)
(17,558)
–
(908)
–
–
–
(511)
(145)
–
(19,122)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(1,003)
–
(36)
–
–
–
(90)
–
–
(1,129)
2016
$
(15,283)
(1,466)
–
(39)
–
–
–
(76)
(41)
–
(1,622)
(15,380)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(72)
(1)
–
(73)
–
–
–
–
–
–
(109)
(5)
–
(114)
(4,141)
(28,528)
108,207
–
8,718
–
–
–
1,641
45
–
118,611
124,694
–
7,947
–
–
–
2,093
112
–
$
134,846
AGF European Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares
Average
Cost ($)
Fair
Value ($)
1,371,141
544,012
1,915,153
1,718,964
709,579
2,428,543
676,161
1,861,077
4,375,389
1,395,620
1,523,488
2,356,075
827,716
1,781,764
4,477,237
1,348,608
1,222,767
3,661,632
448,208
1,265,823
2,976,695
1,263,580
2,142,805
1,878,266
2,414,905
24,578,092
1,133,531
1,248,468
2,660,572
1,266,527
2,562,935
1,200,764
3,146,957
26,539,478
1,607,207
1,354,024
1,360,332
619,310
890,101
1,952,492
2,276,815
2,130,284
1,128,698
723,551
833,099
2,347,909
652,185
1,924,990
2,150,621
1,134,532
13,645,794
903,891
2,260,886
3,274,318
967,064
16,846,515
321,948
454,639
2,198,260
1,348,084
5,977,466
1,212,555
2,987,379
13,723,744
3,130,444
1,446,637
3,589,731
1,549,710
908,870
10,625,392
2,082,517
2,303,401
635,164
5,021,082
3,821,898
2,905,259
607,766
7,334,923
660,177
725,021
2,640,504
1,039,501
492,132
3,216,006
8,048,320
1,665,225
1,136,454
591,133
2,421,522
6,539,355
904,735
816,652
2,835,598
3,167,321
3,663,404
4,336,899
451,536
14,454,758
2,587,855
3,238,860
3,056,305
4,194,588
758,933
13,836,541
Denmark (2.0%)
France (22.4%)
13,802
128,759
8,050
21,349
17,800
46,783
ArcelorMittal
AXA SA
BNP Paribas SA
Cap Gemini SA
Carrefour SA
Compagnie de Saint-Gobain SA
Compagnie Generale des
Etablissements Michelin
Danone SA
Orange SA
Pernod Ricard SA
Sanofi
Societe Generale SA
TOTAL SA
Germany (14.2%)
9,242
16,160
11,497
27,992
8,584
55,203
3,474
Average
Cost ($)
Fair
Value ($)
806,371
1,570,286
784,037
2,145,106
1,756,875
1,669,783
3,255,485
1,900,651
1,956,528
3,693,392
1,873,226
1,304,494
2,249,777
2,729,737
1,550,696
955,835
1,581,090
2,525,015
34,308,384
714,472
2,405,471
578,854
2,188,871
1,826,213
1,751,409
3,275,559
1,897,098
1,644,329
3,465,175
1,654,885
842,100
2,403,727
2,552,949
1,257,161
1,178,120
1,418,382
1,803,867
32,858,642
United Kingdom (27.7%)
37,954 Danske Bank AS
22,842 GN Store Nord AS
73,984
51,780
50,551
10,982
39,000
53,620
7,018
No. of Shares
Allianz SE
BASF SE
Daimler AG
ElringKlinger AG
HUGO BOSS AG
METRO AG
Muenchener RueckversicherungsGesellschaft AG
17,326 SAP SE
17,975 Siemens AG
52,577 TUI AG
8,729
224,703
154,339
287,120
47,999
289,337
118,465
349,157
763,850
3,135,902
98,000
74,053
44,950
70,141
177,535
120,560
70,007
583,322
AstraZeneca PLC
BAE Systems PLC
Barclays PLC
BP PLC
Diageo PLC
GKN PLC
GlaxoSmithKline PLC
Kingfisher PLC
Ladbrokes PLC
Lloyds Banking Group PLC
National Grid PLC
Pearson PLC
Rio Tinto PLC
Royal Dutch Shell PLC ‘B’
Royal Mail PLC
RSA Insurance Group PLC
Smith & Nephew PLC
Tesco PLC
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (99.7%)
(460,322)
116,461,688
–
118,280,680
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF European Equity Class (the “Fund”).
Ireland (0.4%)
38,163 Grafton Group PLC
Italy (8.9%)
499,904
66,430
993,840
1,295,794
44,335
Enel SpA
Eni SpA
Intesa Sanpaolo SpA
Telecom Italia SpA
UniCredit SpA
Netherlands (6.2%)
34,658 Akzo Nobel NV
144,520 ING Groep NV
30,000 Refresco Group NV
Spain (5.5%)
43,163 Atresmedia Corporacion de
Medios de Comunicacion SA
161,455 Banco Bilbao Vizcaya
Argentaria SA
39,000 Gas Natural SDG SA
34,810 Indra Sistemas SA
162,792 Telefonica SA
Sweden (0.7%)
92,018 Telefonaktiebolaget
LM Ericsson
Switzerland (11.7%)
32,867
31,744
30,962
12,351
6,355
LafargeHolcim Limited
Nestle SA
Novartis AG
Roche Holding AG
Swiss Re Limited AG
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
55
AGF European Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term capital growth
by investing primarily in shares of companies operating mainly in
Europe and that trade on European stock exchanges.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
September 30, 2016
(%)
Financials
Health Care
Consumer Staples
Industrials
Materials
Consumer Discretionary
Energy
Utilities
Telecommunication Services
Information Technology
21.2
13.1
13.1
10.7
9.8
8.9
7.3
5.5
5.2
4.7
March 31, 2017
(%)
Portfolio by Asset Mix
United Kingdom
France
Germany
Switzerland
Italy
Netherlands
Spain
Denmark
Sweden
Ireland
27.7
22.4
14.2
11.7
8.9
6.2
5.5
2.0
0.7
0.4
March 31, 2017
(%)
International Equity
99.7
September 30, 2016
(%)
International Equity
99.5
September 30, 2016
(%)
United Kingdom
France
Germany
Switzerland
Italy
Netherlands
Spain
Denmark
Sweden
27.9
20.5
15.2
12.7
6.8
6.4
5.7
3.2
1.1
Portfolio by Sector
March 31, 2017
(%)
Financials
Health Care
Consumer Staples
Materials
Consumer Discretionary
Industrials
Energy
Telecommunication Services
Utilities
Information Technology
23.1
13.4
11.5
9.9
9.8
9.3
7.9
5.6
5.0
4.2
56
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives.
Accordingly, the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The impact on Net Assets of the Fund due to a 45 percent change in
benchmark (September 30, 2016 – 55 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF European Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
March 31,
2017
September 30,
2016
54,537
71,652
MSCI Europe Index
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
Euro Currency
Pound Sterling
Swiss Franc
Danish Krone
Swedish Krona
United States Dollar
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
118,281
–
–
–
118,281
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
118,281
–
–
–
118,281
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
122,190
–
–
–
122,190
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
122,190
–
–
–
122,190
–
–
September 30, 2016
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
March 31, 2017
($’000)
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
70,487
33,353
11,273
2,429
817
277
–
–
–
–
–
–
70,487
33,353
11,273
2,429
817
277
Percentage of
Net Assets (%)
59.4
28.1
9.5
2.0
0.7
0.2
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the Fund did
not hold financial instruments within level 3 of the fair value hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
September 30, 2016
($’000)
Euro Currency
Pound Sterling
Swiss Franc
Danish Krone
Swedish Krona
United States Dollar
March 31, 2016
% of Gross
($’000)
Income
Financial
Instruments
Foreign
Exchange
Forward
Contracts
Total**
Percentage of
Net Assets (%)
69,678
34,239
13,178
3,895
1,320
77
–
–
–
–
–
–
69,678
34,239
13,178
3,895
1,320
77
56.8
27.9
10.7
3.2
1.1
0.1
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $2,373,000 (September 30,
2016 – $2,448,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
($’000)
% of Gross
Income
36
–
–
100.0
–
–
209
–
(5)
100.0
–
(2.2)
(11)
25
(29.9)
70.1
(61)
143
(29.3)
68.5
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
March 31,
2017
September 30,
2016
2,518
–
2,841
5,502
–
5,897
57
AGF Fixed Income Plus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Approved by the Board
W. Robert Farquharson, Director
58
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
5,301
–
113
–
1
–
–
–
51
–
–
–
5,466
September 30,
2016
$
2,919
–
119
–
38
–
–
–
23
–
–
–
3,099
$
$
–
–
–
–
1
19
–
–
56
–
–
76
5,390
5,361
$
$
–
–
–
–
–
2
13
–
96
–
–
111
2,988
2,904
$
$
$
$
$
$
$
$
$
2,912
–
1,007
–
689
–
–
–
782
$
$
$
$
$
$
$
$
$
1,356
–
123
–
707
–
–
–
802
$
$
$
$
$
$
$
$
$
10.12
–
10.22
–
10.32
–
–
–
10.32
$
$
$
$
$
$
$
$
$
10.31
–
10.36
–
10.42
–
–
–
10.42
AGF Fixed Income Plus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF CASH FLOWS (UNAUDITED)
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
81
–
(11)
2016
$
–
–
–
(75)
(5)
–
–
–
–
–
–
–
–
–
–
–
(5)
–
–
18
–
19
8
9
–
–
11
–
–
1
–
6
–
–
–
–
–
–
–
–
–
–
–
–
–
–
72
–
–
(51)
21
–
–
$
(26)
$
–
$
$
$
$
$
$
$
$
$
(12)
–
5
–
(11)
–
–
–
(8)
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
(0.06)
–
0.13
–
(0.16)
–
–
–
(0.10)
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
For the periods ended March 31,
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
2017
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash distributions from underlying
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class
Net Cash Generated (Used) by Financing Activities
(26)
2016
$
–
–
–
11
–
75
(2,904)
–
–
449
–
(53)
–
–
–
(28)
–
–
–
–
–
–
–
–
–
1
17
(2,458)
–
–
–
–
–
2,987
–
(535)
2,452
–
–
–
–
$
–
–
–
$
$
$
–
–
–
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
$
(6)
119
113
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
$
$
$
–
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
59
AGF Fixed Income Plus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
60
2017
1,356
–
123
–
707
–
–
–
802
2016
$
–
–
–
–
–
–
–
–
–
2,988
–
(12)
–
5
–
(11)
–
–
–
(8)
(26)
–
–
–
–
–
–
–
–
–
–
1,661
–
949
–
298
–
–
–
–
2,908
–
–
–
–
–
–
–
–
–
–
42
–
–
–
–
–
–
–
–
42
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(135)
–
(70)
–
(305)
–
–
–
(12)
(522)
–
–
–
–
–
–
–
–
–
–
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
–
–
–
–
–
–
–
–
–
–
2016
$
–
–
–
–
–
–
–
–
–
–
2,428
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,402
–
2,912
–
1,007
–
689
–
–
–
782
–
–
–
–
–
–
–
–
–
5,390
$
–
AGF Fixed Income Plus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
Fixed Income Fund (98.4%)
437,378 AGF Fixed Income Plus Fund –
Series S Units*
5,360,701
5,301,024
Total Portfolio (98.4%)
5,360,701
5,301,024
* AGF Fixed Income Plus Class (the “Fund”) invests in units of AGF Fixed
Income Plus Fund (the “Underlying Fund”).
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to the Fund.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
61
AGF Fixed Income Plus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide steady income to
investors by investing primarily in fixed income securities. The Fund
primarily invests in units of the Underlying Fund.
Summary of Investment Portfolio
As at March 31, 2017 and September 2016, the Underlying Fund’s major
portfolio categories, as a percentage of the Underlying Fund’s Net
Assets, are included in the following tables. The Fund is indirectly
exposed to these portfolio categories as a result of investing
substantially all of its assets in units of the Underlying Fund.
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the Underlying Fund as at March 31,
2017 and September 30, 2016 are included in the following tables:
March 31, 2017
AGF Fixed Income Plus Fund
Portfolio by Sector
March 31, 2017
(%)
September 30, 2016
Corporate Bonds
Provincial Bonds
Government Bonds
Government Guaranteed Investments
High Yield Bonds
Supranational Bonds
Emerging Markets Bonds
Health Care
Telecommunication Services
Foreign Exchange Forward Contracts
45.1
20.4
12.9
9.3
3.8
3.5
1.3
0.3
0.1
0.1
AGF Fixed Income Plus Fund
September 30, 2016
(%)
Corporate Bonds
Provincial Bonds
Government Bonds
Government Guaranteed Investments
High Yield Bonds
Supranational Bonds
Emerging Markets Bonds
Municipal Bonds
Health Care
Foreign Exchange Forward Contracts
Energy
44.6
21.3
13.5
8.7
3.0
2.9
1.7
1.0
0.4
0.0
0.0
Portfolio by Asset Mix
March 31, 2017
(%)
Canadian Fixed Income
United States Fixed Income
International Fixed Income
International Equity
Foreign Exchange Forward Contracts
Canadian Equity
75.3
16.0
5.0
0.3
0.1
0.1
September 30, 2016
(%)
Canadian Fixed Income
United States Fixed Income
International Fixed Income
International Equity
Foreign Exchange Forward Contracts
Canadian Equity
74.0
18.5
4.2
0.4
0.0
0.0
62
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
5,301
0.4
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
2,919
0.2
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Underlying
Fund invested in debt instruments, foreign exchange forward contracts,
preferred shares, short-term investments and cash and cash
equivalents, as applicable, with the following credit ratings:
Percentage of Underlying
Fund’s Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
March 31,
2017
September 30,
2016
29.0
10.3
24.3
23.0
4.9
3.8
0.5
3.4
29.0
10.7
26.4
22.2
4.7
2.5
0.7
3.1
Interest Rate Risk
As at March 31, 2017 and September 30, 2016, the Underlying Fund’s
exposure to debt instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
March 31,
2017
September 30,
2016
2,059
79,052
261,394
929,932
15,167
176,632
168,872
950,737
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at March 31, 2017 and September 30, 2016, if the yield curve had
shifted in parallel by 25 basis points, with all other variables held
constant, the Fund’s Net Assets would have increased or decreased,
respectively, by approximately $91,000 (September 30, 2016 – $51,000)
as a result of the Underlying Fund’s exposure to interest rate risk.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Fixed Income Plus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 15 percent change in
benchmark (September 30, 2016 – 20 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
FTSE TMX Canada Universe Bond Index
March 31,
2017
September 30,
2016
768
535
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
September 30, 2016
($’000)
United States Dollar
Mexican Peso
Peruvian New Sol
Indonesian Rupiah
Foreign
Exchange
Financial Forward
% of Underlying
Instruments Contracts Total** Fund’s Net Assets
233,217
9,564
6,725
3,393
(175,541) 57,676
–
9,564
–
6,725
–
3,393
4.3
0.7
0.5
0.3
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $4,000 (September 30,
2016 – $3,000) as a result of the Underlying Fund’s exposure to currency
risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
Currency Risk
As at March 31, 2017 and September 30, 2016, the Fund did not have
significant exposure to currency risk.
The amounts in the following tables are based on the fair value of the
Underlying Fund’s financial instruments (including cash and cash
equivalents) as well as the underlying principal amounts of foreign
exchange forward contracts, as applicable. Other financial assets
(including cash collateral received for securities on loan, dividends,
distributions and interest receivables and receivables for investments
sold) and financial liabilities (including payable for cash collateral under
securities lending and payable for investments purchased) that are
denominated in foreign currencies do not expose the Underlying Fund
to significant currency risk.
Currencies to which the Underlying Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
March 31, 2017
($’000)
United States Dollar
Peruvian New Sol
Euro Currency
Mexican Peso
Indonesian Rupiah
Foreign
Exchange
Financial Forward
% of Underlying
Instruments Contracts Total** Fund’s Net Assets
223,843
7,014
6,586
3,931
3,347
(191,123) 32,720
–
7,014
–
6,586
–
3,931
–
3,347
2.5
0.5
0.5
0.3
0.3
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
5,301
5,301
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
5,301
5,301
–
–
Level 1
Level 2
Level 3
Total
–
–
–
2,919
2,919
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,919
2,919
–
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
63
AGF Global Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Approved by the Board
W. Robert Farquharson, Director
64
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
22,412
–
666
–
55
–
–
–
–
–
–
–
23,133
September 30,
2016
$
10,279
–
402
–
580
–
–
–
–
–
–
–
11,261
$
$
–
–
–
–
7
19
9
4
248
–
–
287
22,846
21,207
$
$
–
–
–
–
3
12
118
2
575
–
–
710
10,551
10,082
$
$
$
$
$
$
$
$
$
13,380
–
3,079
–
3,439
–
–
1,084
1,864
$
$
$
$
$
$
$
$
$
6,844
–
1,486
–
1,331
–
–
521
369
$
$
$
$
$
$
$
$
$
11.21
–
11.33
–
11.48
–
–
10.72
11.48
$
$
$
$
$
$
$
$
$
10.55
–
10.60
–
10.67
–
–
10.33
10.67
AGF Global Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF CASH FLOWS (UNAUDITED)
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
418
2
26
2016
$
–
–
–
1,008
1,454
–
–
–
–
–
–
–
–
–
–
–
1,454
–
–
124
–
25
9
9
–
–
12
–
–
1
–
20
–
–
–
–
–
–
–
–
–
–
–
–
–
–
200
–
–
(50)
150
–
–
$
1,304
$
–
$
$
$
$
$
$
$
$
$
738
–
195
–
220
–
–
56
95
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.76
–
0.83
–
0.96
–
–
0.72
1.05
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
For the periods ended March 31,
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
2017
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash distributions from underlying
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class
Net Cash Generated (Used) by Financing Activities
1,304
2016
$
–
–
–
(26)
–
(1,008)
(12,144)
–
–
1,136
–
(418)
–
–
–
–
–
–
–
–
–
–
–
–
–
4
7
(11,145)
–
–
–
(17)
–
14,404
–
(2,978)
11,409
–
–
–
–
$
–
–
–
$
$
$
–
–
–
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
$
264
402
666
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
$
$
$
2
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
65
AGF Global Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
66
2017
6,844
–
1,486
–
1,331
–
–
521
369
2016
$
–
–
–
–
–
–
–
–
–
10,551
–
738
–
195
–
220
–
–
56
95
1,304
–
–
–
–
–
–
–
–
–
–
5,971
–
1,392
–
1,198
–
–
521
727
9,809
–
–
–
–
–
–
–
–
–
–
2,539
–
600
–
999
–
–
21
686
4,845
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2
–
2
–
–
–
–
–
–
–
–
–
–
(1,397)
–
(15)
–
(21)
–
–
(16)
(13)
(1,462)
–
–
–
–
–
–
–
–
–
–
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(1,315)
–
(579)
–
(288)
–
–
–
–
(2,182)
2016
$
–
–
–
–
–
–
–
–
–
–
11,012
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(21)
–
(21)
–
–
–
–
–
–
–
–
–
–
12,295
–
13,380
–
3,079
–
3,439
–
–
1,084
1,864
–
–
–
–
–
–
–
–
–
22,846
$
–
AGF Global Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
21,206,900
22,412,499
21,206,900
22,412,499
Equity Fund (98.1%)
789,729 AGF Global Dividend Fund –
Series S Units*
Total Portfolio (98.1%)
* AGF Global Dividend Class (the “Fund”) invests in units of AGF Global
Dividend Fund (the “Underlying Fund”).
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to the Fund.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
67
AGF Global Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to seek long-term total returns by
investing primarily in a diversified portfolio of dividend-paying equity
securities of issuers located around the world. The Fund primarily
invests in units of the Underlying Fund.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Underlying Fund’s
major portfolio categories, as a percentage of the Underlying Fund’s Net
Assets, are included in the following tables. The Fund is indirectly
exposed to these portfolio categories as a result of investing
substantially all of its assets in units of the Underlying Fund.
Portfolio by Sector
March 31, 2017
(%)
Consumer Staples
Financials
Industrials
Health Care
Information Technology
Telecommunication Services
Consumer Discretionary
Energy
Real Estate
Materials
ETFs – International Equity
18.3
16.2
14.3
9.3
8.9
6.9
6.3
5.7
4.5
4.0
0.6
Portfolio by Country
March 31, 2017
(%)
September 30, 2016
(%)
United States
Japan
Switzerland
United Kingdom
France
South Korea
Thailand
Hong Kong
Germany
Czech Republic
China
Belgium
Italy
Israel
Canada
Spain
Austria
Singapore
Netherlands
49.0
6.5
5.9
5.6
5.1
3.1
3.0
3.0
2.8
2.3
1.9
1.7
1.0
1.0
0.9
0.9
0.8
0.3
0.2
Financials
Consumer Staples
Industrials
Health Care
Telecommunication Services
Consumer Discretionary
Information Technology
Energy
Real Estate
Materials
17.5
17.0
13.2
9.5
7.2
7.0
6.5
5.8
5.1
3.2
September 30, 2016
(%)
United States
Japan
France
United Kingdom
Switzerland
Germany
South Korea
Thailand
Czech Republic
China
Canada
Belgium
Spain
Hong Kong
Austria
Israel
Netherlands
Italy
Singapore
41.6
8.3
7.7
7.0
5.8
3.9
3.1
2.6
2.2
1.8
1.8
1.1
1.0
1.0
0.9
0.8
0.5
0.5
0.4
Portfolio by Asset Mix
March 31, 2017
(%)
United States Equity
International Equity
Canadian Equity
49.0
45.1
0.9
September 30, 2016
(%)
International Equity
United States Equity
Canadian Equity
48.6
41.6
1.8
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the Underlying Fund as at March 31,
2017 and September 30, 2016 are included in the following tables:
March 31, 2017
AGF Global Dividend Fund
September 30, 2016
AGF Global Dividend Fund
68
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
22,412
1.0
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
10,279
0.5
AGF Global Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Underlying Fund had
no significant investments in debt instruments and derivatives.
Accordingly, the Underlying Fund was not subject to significant credit
risk.
Interest Rate Risk
The majority of the Underlying Fund’s financial assets and liabilities are
non-interest bearing, accordingly, the Underlying Fund is not subject to
significant amounts of risk due to fluctuations in the prevailing levels of
market interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 45 percent change in
benchmarks (September 30, 2016 – 55 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
MSCI World Index
MSCI All Country World Index
March 31,
2017
September 30,
2016
6,969
7,649
3,275
3,516
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
As at March 31, 2017 and September 30, 2016, the Fund did not have a
significant direct exposure to currency risk.
The amounts in the following tables are based on the fair value of the
Underlying Fund’s financial instruments (including cash and cash
equivalents) as well as the underlying principal amounts of foreign
exchange forward contracts, as applicable. Other financial assets
(including cash collateral received for securities on loan, dividends,
distributions and interest receivables and receivables for investments
sold) and financial liabilities (including payable for cash collateral under
securities lending and payable for investments purchased) that are
denominated in foreign currencies do not expose the Underlying Fund
to significant currency risk.
Currencies to which the Underlying Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
March 31, 2017
($’000)
Foreign
Exchange
Financial Forward
Instruments Contracts
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
South Korean Won
Hong Kong Dollar
Thai Baht
Czech Koruna
Singapore Dollar
1,247,442
282,846
152,277
138,190
132,334
116,463
72,376
70,982
54,091
7,329
% of Underlying
Total** Fund’s Net Assets
– 1,247,442
– 282,846
– 152,277
– 138,190
– 132,334
– 116,463
–
72,376
–
70,982
–
54,091
–
7,329
53.0
12.0
6.5
5.9
5.6
4.9
3.1
3.0
2.3
0.3
September 30, 2016
($’000)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
South Korean Won
Hong Kong Dollar
Thai Baht
Czech Koruna
Singapore Dollar
Foreign
Exchange
Financial Forward
Instruments Contracts
1,162,791
356,715
186,536
157,069
130,522
71,120
62,280
58,344
49,757
7,960
% of Underlying
Total** Fund’s Net Assets
– 1,162,791
– 356,715
– 186,536
– 157,069
– 130,522
–
71,120
–
62,280
–
58,344
–
49,757
–
7,960
51.5
15.8
8.3
7.0
5.8
3.1
2.8
2.6
2.2
0.4
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017, if the Canadian dollar had strengthened or
weakened by 2 percent, in relation to all currencies, with all other
variables held constant, the Fund’s Net Assets would have decreased or
increased, respectively, by approximately $455,000 (September 30,
2016 – $224,000) as a result of the Underlying Fund’s exposure to
currency risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
69
AGF Global Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
22,412
22,412
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
22,412
22,412
–
–
Level 1
Level 2
Level 3
Total
–
–
–
10,279
10,279
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
10,279
10,279
–
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
70
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Global Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
814,672
–
6,140
–
183
–
–
–
2,259
514
–
35
823,803
September 30,
2016
$
784,441
–
4,496
–
79
–
–
–
1,781
574
–
35
791,406
$
$
–
–
–
–
336
788
1,198
13
–
–
–
2,335
821,468
631,292
$
$
–
–
–
–
276
956
859
14
1,033
–
–
3,138
788,268
651,099
$
$
$
$
$
$
$
$
$
775,747
–
19,998
17,056
3,306
–
3,800
511
1,050
$
$
$
$
$
$
$
$
$
745,475
–
17,562
18,234
3,004
–
3,001
402
590
$
$
$
$
$
$
$
$
$
17.84
–
21.12
22.01
12.09
–
20.12
25.34
12.10
$
$
$
$
$
$
$
$
$
16.48
–
19.38
20.10
11.04
–
19.36
23.99
11.05
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
71
AGF Global Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
72
2017
$
$
8,462
643
19
14,706
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
4,733
–
3
8,799
50,038
73,868
–
3,212
16,747
–
–
–
46
–
–
17
24
73,938
2,371
19,135
7,647
3,492
723
16
5
57
–
33
–
9
1
–
900
1,083
234
15
7
22
–
15
–
4
1
–
398
664
115
10,589
558
5,410
(301)
10,288
(55)
5,355
63,650
$
13,780
$
$
$
$
$
$
$
$
$
59,957
–
1,610
1,440
273
–
255
37
78
$
$
$
$
$
$
$
$
$
13,555
–
175
8
(18)
–
53
7
0
$
$
$
$
$
$
$
$
$
1.35
–
1.74
1.88
1.06
–
1.56
2.08
1.00
$
$
$
$
$
$
$
$
$
0.76
–
0.46
0.03
(0.10)
–
0.44
0.47
0.00
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
Income taxes (paid) recovered *
63,650
SEMI-ANNUAL REPORT 2017
$
13,780
18
(471)
(14,706)
(8,799)
(50,038)
(31,191)
(3,212)
(356,493)
64,671
30,104
–
–
–
(669)
(478)
(1,350)
–
60
–
–
8
–
–
–
60
(168)
31,878
201
(130)
(327,031)
(80)
(67)
13,534
360,218
(43,670)
(30,216)
(28,999)
331,152
(18)
471
$
1,662
4,496
6,140
$
4,121
2,169
6,761
$
19
$
2
$
$
7,537
–
$
$
2,592
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2016
AGF Global Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
745,475
–
17,562
18,234
3,004
–
3,001
402
590
788,268
59,957
–
1,610
1,440
273
–
255
37
78
63,650
2016
$
216,360
–
6,591
3,730
814
–
2,284
289
197
230,265
13,555
–
175
8
(18)
–
53
7
0
13,780
7,861
–
1,849
3,108
86
–
349
30
109
13,392
161,344
–
993
3,935
713
–
163
21
472
167,641
1,039
–
1,366
–
634
–
592
142
552
4,325
192,546
–
312
–
1,035
–
15
2
103
194,013
–
–
–
–
–
–
65
1
–
66
–
–
–
–
–
–
36
–
–
36
(33,452)
–
(1,954)
(5,726)
(559)
–
(325)
(56)
(5)
(42,077)
(25,105)
–
(1,399)
(1,338)
(230)
–
(123)
(17)
(134)
(28,346)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(5,133)
–
(435)
–
(132)
–
(3)
(34)
(274)
(6,011)
2016
$
(1,475)
–
(9)
–
–
–
(22)
–
–
(1,506)
(30,305)
331,838
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(134)
(11)
–
(145)
–
–
–
–
–
–
(96)
(8)
–
(104)
33,200
345,514
775,747
–
19,998
17,056
3,306
–
3,800
511
1,050
557,225
–
6,663
6,335
2,314
–
2,310
294
638
821,468
$
575,779
73
AGF Global Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares/
Units
Average
Cost ($)
Fair
Value ($)
8,772,553
7,940,524
6,562,461
7,877,829
13,547,902
15,576,096
914,004
480,575
300,955
1,695,534
940,765
730,941
360,974
2,032,680
6,203,590
5,343,637
11,547,227
7,035,455
4,091,272
11,126,727
8,374,030
11,760,012
20,134,042
8,219,740
15,113,436
23,333,176
8,720,766
8,351,723
311,644
2,505,364
6,385,333
5,669,032
14,871,373
464,318
3,393,687
8,088,367
6,314,296
18,260,668
15,509,453
11,113,221
10,650,185
37,272,859
20,433,345
15,655,971
12,142,325
48,231,641
7,254,257
8,259,922
6,977,292
4,414,376
5,773,894
6,458,864
18,399,422
5,240,285
8,174,348
8,151,017
15,346,061
20,074,830
5,506,751
9,024,534
9,819,706
27,103,865
16,456,492
71,767,625
19,407,850
90,937,536
6,005,177
5,089,532
11,094,709
8,097,594
6,453,671
14,551,265
1,112,761
4,692,950
5,805,711
326,056
5,000,574
5,326,630
3,701,600
4,521,922
153,791
157,192
Australia (1.0%)
Austria (1.0%)
150,485 Voestalpine AG
106,698 Anheuser-Busch InBev SA/NV
Brazil (0.2%)
152,001 Petroleo Brasileiro SA –
Petrobras Preferred
57,857 Vale SA ADR
30,123 Vale SA Preferred ‘A’
Canada (1.4%)
55,368 Agrium Inc.
210,863 Goldcorp Inc.
China (2.8%)
5,176,215 CNOOC Limited
227,614 iShares MSCI China ETF
Czech Republic (1.0%)
169,231 Komercni banka AS
France (2.2%)
Arkema SA
BNP Paribas SA
Schneider Electric SE
TOTAL SA
Germany (5.9%)
133,176 Hannover Rueck SE
105,958 Henkel AG & Company KGaA
317,586 iShares MSCI Germany ETF
Hong Kong (1.0%)
985,104 AIA Group Limited
Israel (0.5%)
103,442 Teva Pharmaceutical Industries
Limited ADR
Italy (0.8%)
1,788,178 Intesa Sanpaolo SpA
Japan (11.1%)
Astellas Pharma Inc.
Canon Inc.
FUJIFILM Holdings Corporation
iShares MSCI Japan ETF
Keyence Corporation
Nippon Telegraph and
Telephone Corporation
Netherlands (1.8%)
402,809 ING Groep NV
181,012 iShares MSCI Netherlands ETF
Norway (0.6%)
74,652 Fred. Olsen Energy ASA
335,737 Global X MSCI Norway ETF
Singapore (0.8%)
685,381 Keppel Corporation Limited
157,474 Keppel Real Estate
Investment Trust
74
Fair
Value ($)
525,320 Singapore Press
Holdings Limited
1,820,963
5,676,354
1,772,898
6,452,012
5,608,651
5,326,494
6,755,914
4,437,822
3,494,343
6,721,956
15,541,891
29,971,379
32,366,584
50,282,276
3,165,690
3,782,983
15,252,388
17,636,221
9,415,144
9,963,485
3,814,028
4,326,902
1,180,539
14,409,711
1,394,936
15,685,323
17,247,572
1,240,309
6,743,945
4,363,774
4,017,443
33,613,043
22,938,390
1,098,129
7,461,400
5,004,058
4,496,309
40,998,286
9,293,927
173,457
12,449,059
16,566,745
5,886,830
8,146,167
24,779,871
13,031,581
2,155,825
23,696,904
10,614,302
292,941
16,395,662
23,451,465
7,184,898
8,179,369
33,894,874
14,180,111
2,379,224
33,407,623
3,264,736
5,862,622
6,285,092
7,930,168
17,017,471
1,900,663
8,299,066
9,825,024
18,796,758
14,943,593
16,181,752
19,559,213
1,922,630
8,590,463
9,576,074
28,242,360
3,393,899
10,977,104
11,446,702
27,811,965
22,158,752
20,187,620
27,613,611
2,280,009
10,092,896
6,690,371
3,880,484
6,617,832
18,212,178
8,174,157
11,676,587
8,002,647
6,068,401
11,106,159
26,659,336
11,955,891
South Korea (6.1%)
Belgium (1.9%)
1,146,377
132,816
173,758
143,380
50,898
341,909
Average
Cost ($)
Singapore (continued)
835,875 Brambles Limited
3,539
38,317
83,073
93,869
No. of Shares/
Units
82,111 iShares MSCI South Korea
Capped ETF
100,725 Kia Motors Corporation
2,744 Samsung Electronics Company
Limited
26,527 Samsung Electronics Company
Limited GDR
Spain (0.5%)
464,149 Banco Santander SA
Switzerland (2.1%)
51,930 Roche Holding AG
Thailand (1.9%)
96,066 iShares MSCI Thailand
Capped ETF
591,558 Kasikornbank Public Company
Limited (Foreign)
387,573 PTT Exploration and Production
Public Company
Limited (Foreign)
United Kingdom (5.0%)
259,758
993,781
213,858
137,484
428,009
British American Tobacco PLC
Lloyds Banking Group PLC
Persimmon PLC
Royal Dutch Shell PLC ‘B’
The Sage Group PLC
United States (49.6%)
122,492
8,063
204,868
246,915
130,031
113,104
187,066
130,020
131,069
201,180
22,016
37,095
235,092
241,772
38,993
156,274
199,803
186,662
70,058
176,086
183,919
49,985
81,345
66,267
154,215
178,107
274,916
108,935
AbbVie Inc.
AdvanSix Inc.
AGCO Corporation
Altria Group Inc.
AT&T Inc.
Bristol-Myers Squibb Company
Chubb Limited
Exxon Mobil Corporation
Forestar Group Inc.
Honeywell International Inc.
Huntington Ingalls
Industries Inc.
International Business
Machines Corporation
Invesco Limited
JPMorgan Chase & Company
Lincoln National Corporation
MetLife Inc.
Mondelez International Inc. ‘A’
Moody’s Corporation
Northrop Grumman Corporation
Omnicom Group Inc.
Philip Morris International Inc.
Synchrony Financial
The Dun & Bradstreet
Corporation
The Kraft Heinz Company
The Williams Companies Inc.
Unum Group
Waste Management Inc.
Western Digital Corporation
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Global Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
No. of Shares
Average
Cost ($)
Fair
Value ($)
2,243,878
298,018,328
3,564,401
407,155,072
United States (continued)
200,172 WPX Energy Inc.
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (99.2%)
(612,948)
631,292,150
–
814,671,830
ADR – American Depository Receipt
ETF – Exchange Traded Fund
GDR – Global Depository Receipt
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF Global Equity Class (the “Fund”).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
75
AGF Global Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term capital growth
by investing primarily in shares of companies around the world. The
Fund may invest up to 25% of its assets in companies in emerging
markets.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
United States
Japan
South Korea
Germany
United Kingdom
China
France
Switzerland
Thailand
Belgium
Netherlands
Canada
Czech Republic
Hong Kong
Australia
Austria
Italy
Singapore
Norway
Israel
Spain
Brazil
49.6
11.1
6.1
5.9
5.0
2.8
2.2
2.1
1.9
1.9
1.8
1.4
1.0
1.0
1.0
1.0
0.8
0.8
0.6
0.5
0.5
0.2
September 30, 2016
(%)
United States
Japan
Germany
South Korea
United Kingdom
China
France
Netherlands
Belgium
Switzerland
Canada
Australia
Czech Republic
Austria
Hong Kong
Israel
Singapore
Spain
Norway
Italy
Brazil
Thailand
49.5
12.8
6.0
5.1
4.5
3.0
2.6
2.4
2.4
2.2
1.4
1.3
1.0
0.9
0.8
0.8
0.7
0.7
0.7
0.4
0.2
0.1
76
Portfolio by Sector
March 31, 2017
(%)
Financials
Industrials
Consumer Staples
Information Technology
ETFs – International Equity
Health Care
Energy
Consumer Discretionary
Telecommunication Services
Materials
Real Estate
23.3
16.7
15.2
12.9
8.0
7.4
5.6
4.1
3.2
2.5
0.3
September 30, 2016
(%)
Financials
Industrials
Consumer Staples
Information Technology
Health Care
ETFs – International Equity
Energy
Consumer Discretionary
Telecommunication Services
Materials
Real Estate
22.7
16.5
16.0
12.0
8.4
7.4
5.9
4.3
3.5
2.5
0.3
Portfolio by Asset Mix
March 31, 2017
(%)
United States Equity
International Equity
Canadian Equity
49.6
48.2
1.4
September 30, 2016
(%)
United States Equity
International Equity
Canadian Equity
49.5
48.6
1.4
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
March 31, 2017 and September 30, 2016 are included in the following
tables:
March 31, 2017
Global X MSCI Norway ETF
iShares MSCI Netherlands ETF
iShares MSCI Thailand Capped ETF
iShares MSCI China ETF
iShares MSCI Germany ETF
iShares MSCI South Korea Capped ETF
iShares MSCI Japan ETF
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
5,001
6,454
9,963
15,113
12,142
6,756
9,820
3.3
2.5
1.9
0.5
0.2
0.1
0.1
AGF Global Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
iShares MSCI Netherlands ETF
Global X MSCI Norway ETF
iShares MSCI China ETF
iShares MSCI Germany ETF
iShares MSCI South Korea Capped ETF
iShares MSCI Japan ETF
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
9,262
5,031
14,834
11,218
4,308
13,555
3.8
3.3
0.5
0.2
0.1
0.1
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
March 31, 2017
($’000)
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives.
Accordingly, the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The impact on Net Assets of the Fund due to a 40 percent change in
benchmark (September 30, 2016 – 50 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
MSCI All Country World Index
March 31,
2017
September 30,
2016
307,507
377,390
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
Hong Kong Dollar
South Korean Won
Czech Koruna
Australian Dollar
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
526,768
96,171
81,219
41,087
17,677
16,480
11,249
8,400
7,955
6,630
5,730
1,304
327
–
–
–
–
–
–
–
–
–
–
–
–
–
Percentage of
Net Assets (%)
526,768
96,171
81,219
41,087
17,677
16,480
11,249
8,400
7,955
6,630
5,730
1,304
327
64.1
11.7
9.9
5.0
2.2
2.0
1.4
1.0
1.0
0.8
0.7
0.2
0.0
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
Percentage of
Net Assets (%)
September 30, 2016
($’000)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
Hong Kong Dollar
South Korean Won
Australian Dollar
Czech Koruna
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
496,975
99,993
87,235
35,703
17,333
15,107
10,621
10,323
7,926
5,972
1,227
1,046
141
–
–
–
–
–
–
–
–
–
–
–
–
–
496,975
99,993
87,235
35,703
17,333
15,107
10,621
10,323
7,926
5,972
1,227
1,046
141
63.0
12.7
11.1
4.5
2.2
1.9
1.3
1.3
1.0
0.8
0.2
0.1
0.0
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $16,420,000 (September 30,
2016 – $15,792,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
77
AGF Global Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
813,277
–
–
–
813,277
–
–
1,395
–
–
–
1,395
–
–
–
–
–
–
–
–
–
814,672
–
–
–
814,672
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
783,222
–
–
–
783,222
–
–
1,219
–
–
–
1,219
–
–
–
–
–
–
–
–
–
784,441
–
–
–
784,441
–
–
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
September 30, 2016
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
% of Gross
($’000)
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
78
81
–
(12)
100.0
–
(14.4)
(23)
46
March 31, 2016
% of Gross
Income
($’000)
27
–
(3)
100.0
–
(12.7)
(28.3)
(7)
(26.2)
57.3
17
61.1
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
42,092
–
44,301
28,513
–
30,093
AGF Global Resources Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
160,771
–
6,241
–
166
56
–
–
224
7
–
1,100
168,565
September 30,
2016
$
155,369
–
4,691
–
264
29
–
–
157
17
–
1,100
161,627
$
$
–
–
–
–
60
231
435
–
–
–
–
726
167,839
156,845
$
$
–
–
–
–
58
117
242
–
29
–
–
446
161,181
148,062
$
$
$
$
$
$
$
$
$
108,701
–
4,268
2,634
–
52,236
–
–
–
$
$
$
$
$
$
$
$
$
124,601
–
4,106
1,986
–
30,488
–
–
–
$
$
$
$
$
$
$
$
$
17.89
–
20.37
21.79
–
25.27
–
–
–
$
$
$
$
$
$
$
$
$
18.77
–
21.25
22.49
–
26.09
–
–
–
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
79
AGF Global Resources Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
80
2017
$
$
1,370
–
7
(2,582)
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
1,559
–
35
(6,416)
(3,381)
(4,586)
–
11,141
6,319
–
–
–
40
–
–
36
(47)
(4,593)
(48)
6,307
1,743
1,574
279
15
10
9
–
14
–
–
1
–
198
79
321
27
6
5
–
11
–
–
1
–
190
141
237
2,585
92
2,368
(348)
2,237
(305)
2,063
(6,830)
$
4,244
$
$
$
$
$
$
$
$
$
(5,389)
–
(184)
(107)
–
(1,150)
–
–
–
$
$
$
$
$
$
$
$
$
3,145
–
106
(10)
–
1,003
–
–
–
$
$
$
$
$
$
$
$
$
(0.84)
–
(0.91)
(1.02)
–
(0.70)
–
–
–
$
$
$
$
$
$
$
$
$
0.44
–
0.55
(0.22)
–
0.87
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
Income taxes (paid) recovered *
(6,830)
SEMI-ANNUAL REPORT 2017
$
4,244
14
10
2,582
6,416
3,381
(63,760)
(11,141)
(18,798)
52,339
20,745
–
–
–
(368)
(67)
60
–
10
–
–
(6)
–
–
–
2
114
(12,215)
(2)
(155)
1,005
–
–
30,576
11,653
(16,797)
13,779
(13,505)
(1,852)
(14)
(10)
$
1,564
4,691
6,241
$
(847)
10,686
9,829
$
6
$
31
$
$
1,222
–
$
$
1,485
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2016
AGF Global Resources Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
124,601
–
4,106
1,986
–
30,488
–
–
–
161,181
(5,389)
–
(184)
(107)
–
(1,150)
–
–
–
(6,830)
2016
$
115,967
–
3,409
207
–
22,178
–
–
–
141,761
3,145
–
106
(10)
–
1,003
–
–
–
4,244
4,145
–
332
1,161
–
24,720
–
–
–
30,358
5,379
–
195
937
–
4,268
–
–
–
10,779
601
–
278
–
–
–
–
–
–
879
913
–
120
–
–
–
–
–
–
1,033
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(14,057)
–
(264)
(406)
–
(1,822)
–
–
–
(16,549)
(12,154)
–
(278)
(96)
–
(506)
–
–
–
(13,034)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(1,200)
–
–
–
–
–
–
–
–
(1,200)
2016
$
13,488
(786)
–
(1)
–
–
–
–
–
–
(787)
(2,009)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
6,658
2,235
108,701
–
4,268
2,634
–
52,236
–
–
–
112,464
–
3,551
1,038
–
26,943
–
–
–
167,839
$
143,996
81
AGF Global Resources Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares
Average
Cost ($)
Fair
Value ($)
3,273,615
1,474,664
1,953,466
2,504,600
146,604
3,582,740
1,762,392
1,661,531
1,722,064
500,225
61,981
14,961
861,107
841,383
4,902,126
3,371,493
2,943,931
1,140,552
839,592
3,105,763
1,717,757
1,203,944
148,152
3,326,434
789,417
2,051,998
876,460
1,431,311
1,999,651
1,740,399
5,844,026
2,760,320
1,718,600
1,069,323
847,968
3,559,656
1,685,313
1,029,034
164,613
2,677,176
842,694
1,819,819
847,999
1,008,252
2,309,594
1,758,211
1,103,179
3,744,235
1,197,259
871,255
2,685,941
54,551
7,440,745
1,731,256
880,236
1,933,766
3,793,352
1,952,490
2,030,574
5,901,187
2,311,294
1,816,280
1,812,049
1,709,535
1,678,704
56
5,441,645
2,524,991
1,757,443
6,740,829
1,743,467
1,502,418
1,580,527
1,514,166
1,676,412
4
846
1,852,142
76,325,395
–
1,666,205
78,216,555
5,317,479
5,552,361
1,608,434
1,791,362
1,692,598
2,520,929
7,936,261
12,149,788
1,716,501
2,386,188
8,383,574
12,486,263
4,303,165
852,333
6,659,102
3,062,776
2,573,030
6,493,665
2,853,352
3,729,382
1,414,058
2,027,799
4,052,947
928,821
6,996,657
3,383,061
3,559,779
5,402,329
3,443,296
4,210,026
1,599,793
1,643,577
Canada (46.6%)
408,057
31,237
87,449
493,428
588,500
375,000
115,416
134,222
183,410
112,769
235,016
15,240
228,476
119,272
53,043
1,097,420
306,313
30,064
272,428
21,738
214,979
308,357
285,888
170,472
438,982
185,558
89,820
482,236
223,936
91,122
660,693
165,095
163,246
516,295
54,351
51,068
1,270,009
224
84,577
160,986
No. of Shares
83,516
30,107
7,951
6,292
41,753
142,238
51,034
356,983
9,262
100,000
11,074
Huntsman Corporation
Kinder Morgan Inc.
LyondellBasell Industries NV ‘A’
Monsanto Company
Noble Energy Inc.
Parsley Energy Inc.
PDC Energy Inc.
Ring Energy Inc.
Schlumberger Limited
Select Energy Services Inc.*
US Concrete Inc.
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (95.8%)
2,200,436
1,265,889
707,209
814,067
2,506,623
6,414,482
4,373,732
5,245,954
790,833
2,626,900
805,380
61,720,167
2,725,504
870,422
964,210
947,192
1,906,736
6,149,436
4,231,543
5,136,620
961,963
2,659,700
950,612
62,724,224
82,542 TOTAL SA
3,064 Syngenta AG
United States (37.4%)
Anadarko Petroleum Corporation
Callon Petroleum Company
Chevron Corporation
Cimarex Energy Company
Continental Resources Inc.
Devon Energy Corporation
Eastman Chemical Company
EOG Resources Inc.
Halliburton Company
Hess Corporation
156,844,730
–
160,770,765
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF Global Resources Class (the “Fund”).
United Kingdom (7.4%)
328,983 Glencore PLC
44,622 Rio Tinto PLC
240,060 Royal Dutch Shell PLC
(276,533)
* Private and/or Restricted
Switzerland (1.1%)
82
Fair
Value ($)
United States (continued)
Advantage Oil & Gas Limited
Agnico Eagle Mines Limited
ARC Resources Limited
Asanko Gold Inc.
Belo Sun Mining Corporation
Buried Hill Energy (Cyprus)
Public Company Limited*
Canadian Energy Services &
Technology Corporation
Canadian Natural
Resources Limited
Cenovus Energy Inc.
Detour Gold Corporation
Eldorado Gold Corporation
Enbridge Inc.
Encana Corporation
First Quantum Minerals Limited
Goldcorp Inc.
Highland Copper Company Inc.
HudBay Minerals Inc.
Inter Pipeline Limited
Kelt Exploration Limited
Keyera Corporation
Kinross Gold Corporation
Lundin Mining Corporation
NuVista Energy Limited
Oryx Petroleum
Corporation Limited
Parex Resources Inc.
Raging River Exploration Inc.
Secure Energy Services Inc.
SEMAFO Inc.
Seven Generations
Energy Limited
Silver Wheaton Corporation
Spartan Energy Corporation
Suncor Energy Inc.
Tahoe Resources Inc.
Tamarack Valley Energy Limited
Teck Resources Limited
Tourmaline Oil Corporation
Trevali Mining Corporation
Virginia Hills Oil Corporation*
Virginia Hills Oil Corporation
Warrants April 27, 2018*
Whitecap Resources Inc.
France (3.3%)
49,156
53,073
49,001
21,290
58,935
97,372
32,045
32,453
24,446
25,636
Average
Cost ($)
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Global Resources Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term capital growth
by investing primarily in equity and equity-related securities of
companies around the world engaged in the development, production
or distribution of products or services related to the natural resource
sector.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
September 30, 2016
(%)
Canadian Equity
United States Equity
International Equity
47.0
36.1
13.3
As at March 31, 2017, the total fair value of private and/or restricted
securities held within the Fund represented approximately $2,675,000
(September 30, 2016 – $27,000).
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
Portfolio by Country
March 31, 2017
(%)
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Canada
United States
United Kingdom
France
Switzerland
46.6
37.4
7.4
3.3
1.1
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives. Accordingly,
the Fund was not subject to significant credit risk.
September 30, 2016
(%)
Canada
United States
United Kingdom
France
Switzerland
Russia
Finland
47.0
36.1
7.3
2.8
1.5
1.1
0.6
Portfolio by Sector
March 31, 2017
(%)
Oil, Gas & Consumable Fuels
Metals & Mining
Chemicals
Energy Equipment & Services
Construction Materials
67.8
17.4
5.9
4.1
0.6
September 30, 2016
(%)
Oil, Gas & Consumable Fuels
Metals & Mining
Chemicals
Energy Equipment & Services
Construction Materials
62.6
18.5
12.4
1.6
1.3
Portfolio by Asset Mix
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The impact on Net Assets of the Fund due to a 45 percent change in
benchmarks (September 30, 2016 – 55 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
MSCI World Index
Blended Benchmark
March 31,
2017
September 30,
2016
16,892
94,733
29,977
111,986
March 31, 2017
(%)
The Blended Benchmark is composed of 60% MSCI World Energy Index
and 40% MSCI World Materials Index.
Canadian Equity
United States Equity
International Equity
46.6
37.4
11.8
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
83
AGF Global Resources Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
March 31, 2017
($’000)
United States Dollar
Pound Sterling
Euro Currency
Swiss Franc
Australian Dollar
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
64,726
12,817
5,552
1,791
1
–
–
–
–
–
64,726
12,817
5,552
1,791
1
($’000)
United States Dollar
Pound Sterling
Euro Currency
Swiss Franc
Australian Dollar
63,931
12,016
5,502
2,488
1
–
–
–
–
–
63,931
12,016
5,502
2,488
1
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
158,096
–
–
–
158,096
–
–
–
–
–
–
–
–
–
2,675
–
–
–
2,675
–
–
160,771
–
–
–
160,771
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
155,342
–
–
–
155,342
–
–
4
–
–
–
4
–
–
23
–
–
–
23
–
–
155,369
–
–
–
155,369
–
–
September 30, 2016
Percentage of
Net Assets (%)
38.6
7.6
3.3
1.1
0.0
September 30, 2016
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Percentage of
Net Assets (%)
39.7
7.5
3.4
1.5
0.0
Reconciliation of Level 3 Fair Value Measurement (Note 4)
The following tables reconcile the Fund’s level 3 fair value
measurements for the periods ended March 31, 2017 and
September 30, 2016.
March 31, 2017
** Includes both monetary and non-monetary instruments, as applicable
($’000)
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $1,698,000 (September 30,
2016 – $1,679,000).
Balance at Beginning of period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
March 31, 2017
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
84
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Equities
Debt
Instruments
Total
23
2,627
–
–
(4)
–
–
–
–
–
23
2,627
–
–
(4)
29
2,675
–
–
29
2,675
29
AGF Global Resources Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
($’000)
Debt
Instruments
Equities
Balance at Beginning of Period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
Total
1,333
–
–
(1,246)
(33)
–
–
–
–
–
1,333
–
–
(1,246)
(33)
(31)
23
–
–
(31)
23
(31)
During the period ended September 30, 2016, investments of
approximately $1,246,000 were transferred from level 3 to level 1 as
these securities became actively traded.
The Manager utilizes a variety of valuation techniques in determining
the fair value of securities classified as level 3, including the use of
comparable recent arm’s length transactions, reference to other
instruments that are substantially the same, discounted cash flow
analysis, option pricing models and other techniques commonly used by
market participants. The key inputs used in the valuation techniques
may vary time to time depending on company specific factors and
economic or market conditions. As at March 31, 2017, if the value of the
level 3 investments increased or decreased by 10 percent, Net Assets
would have increased or decreased, respectively, by approximately
$268,000. As at September 30, 2016, the level 3 positions held in the
Fund were not considered significant.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
March 31, 2016
% of Gross
($’000)
Income
% of Gross
Income
($’000)
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
59
–
(1)
100.0
–
(0.9)
52
–
(1)
100.0
–
(1.5)
(18)
(31.2)
(15)
(29.5)
Net Securities Lending Income
40
67.9
36
69.0
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
10,305
–
11,121
17,031
–
18,032
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
85
AGF Short-Term Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Approved by the Board
W. Robert Farquharson, Director
86
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
25,222
–
379
–
230
–
–
–
220
–
–
–
26,051
September 30,
2016
$
28,666
1
644
–
4
–
–
–
241
–
–
–
29,556
$
$
–
–
–
–
4
50
81
–
–
–
–
135
25,916
25,884
$
$
–
–
–
–
4
35
69
–
–
–
–
108
29,448
28,911
$
$
$
$
$
$
$
$
$
23,269
–
2,647
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
26,590
–
2,858
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
13.90
–
14.47
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
13.90
–
14.46
–
–
–
–
–
–
AGF Short-Term Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
$
–
–
434
68
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
–
–
367
531
(417)
85
(5)
(547)
351
(158)
(1)
(6)
1
19
(139)
0
(1)
79
57
269
137
143
43
7
11
1
–
10
–
2
1
–
21
–
60
12
6
4
–
9
–
1
1
–
26
–
–
233
–
262
(114)
119
(137)
125
(40)
$
144
$
$
$
$
$
$
$
$
$
(36)
–
(4)
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
129
–
15
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
(0.02)
–
(0.02)
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.07
–
0.08
–
–
–
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
Income taxes (paid) recovered *
(40)
2016
$
144
–
(37)
(63)
(373)
418
(701)
528
(9,769)
3,791
13,511
–
–
–
(7)
21
(21)
–
–
–
–
–
–
–
–
–
15
3,441
3
(43)
3,936
–
–
7,917
36,582
(11,623)
(3,706)
(39,907)
(3,325)
–
37
$
(265)
644
379
$
611
3,089
3,737
$
455
$
345
$
$
–
–
$
$
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
87
AGF Short-Term Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
88
2017
26,590
–
2,858
–
–
–
–
–
–
2016
$
27,926
–
2,576
–
–
–
–
–
–
29,448
30,502
(36)
–
(4)
–
–
–
–
–
–
(40)
129
–
15
–
–
–
–
–
–
144
5,251
–
612
–
–
–
–
–
–
5,863
4,790
–
273
–
–
–
–
–
–
5,063
1,796
–
484
–
–
–
–
–
–
2,280
31,657
–
27
–
–
–
–
–
–
31,684
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(7,653)
–
(759)
–
–
–
–
–
–
(8,412)
(4,143)
–
(77)
–
–
–
–
–
–
(4,220)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(2,679)
–
(544)
–
–
–
–
–
–
(3,223)
2016
$
(3,492)
(33,586)
–
(6)
–
–
–
–
–
–
(33,592)
(1,065)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(3,532)
(921)
23,269
–
2,647
–
–
–
–
–
–
25,916
26,773
–
2,808
–
–
–
–
–
–
$
29,581
AGF Short-Term Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Average
Cost ($)
Face Value
Fair
Value ($)
Asset-Backed Security (1.6%)
Corporate Bonds (continued)
CAD
CAD
425,000 BMW Canada Auto Trust
1.680% Series 2016-1 ‘A2’
August 20, 2019
425,000
426,254
Corporate Bonds (49.6%)
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
229,000 Anheuser-Busch Inbev
Finance Inc.
3.375% January 25, 2023
400,000 Bank of Montreal
3.400% April 23, 2021
375,000 Bell Canada Inc.
3.250% June 17, 2020
400,000 BP Capital Markets PLC
3.497% November 9, 2020
325,000 Brookfield Asset
Management Inc.
3.950% April 9, 2019
295,000 Brookfield Asset
Management Inc.
4.540% March 31, 2023
395,000 Canadian Imperial Bank
of Commerce
2.350% June 24, 2019
300,000 Canadian Western Bank
2.788% September 13, 2021
150,000 CI Financial Corporation
2.645% December 7, 2020
600,000 Cominar Real Estate
Investment Trust
4.941% July 27, 2020
275,000 CPPIB Capital Inc.
1.000% January 15, 2019
515,000 CPPIB Capital Inc.
1.400% Series A June 4, 2020
285,000 CU Inc.
6.800% August 13, 2019
550,000 Greater Toronto
Airports Authority
5.960% November 20, 2019
350,000 Honda Canada Finance Inc.
2.350% Series 2013-1
June 4, 2018
600,000 Hydro One Inc.
1.620% April 30, 2020
339,000 Hydro One Inc.
3.200% January 13, 2022
300,000 John Deere Canada
Funding Inc.
1.600% July 13, 2020
350,000 John Deere Canada
Funding Inc.
2.050% September 17, 2020
700,000 JPMorgan Chase & Company
2.920% September 19, 2017
275,000 Magna International Inc.
3.100% December 15, 2022
275,000 Manulife Financial Corporation
7.768% April 8, 2019
150,000 Morguard Corporation
4.013% November 18, 2020
450,000 OMERS Realty Corporation
2.473% November 12, 2019
700,000 Royal Bank of Canada
Floating Rate
2.480% June 4, 2025
300,000 Sun Life Financial Inc.
5.700% July 2, 2019
275,000 Sun Life Financial Inc.
Floating Rate
2.600% September 25, 2025
CAD
CAD
230,860
240,226
406,106
425,917
390,637
391,359
423,480
421,814
346,551
339,272
Average
Cost ($)
Fair
Value ($)
363,236
341,279
791,325
782,771
768,790
747,215
79,679
81,090
338,423
12,901,228
332,474
12,848,328
331,289
327,459
1,007,760
993,318
670,850
653,909
1,005,758
757,173
717,183
3,732,840
564,804
3,296,663
678,272
676,944
781,033
768,745
825,248
819,595
635,520
2,920,073
615,726
2,881,010
315,615
305,477
331,662
327,895
310,950
307,284
433,148
431,406
366,506
348,466
360,861
342,392
664,338
642,422
957,355
934,357
653,940
634,931
659,008
642,745
300,165
300,072
272,050
272,453
Face Value
CAD
CAD
325,000 Suncor Energy Inc.
5.800% May 22, 2018
750,000 The Bank of Nova Scotia
2.873% June 4, 2021
725,000 The Toronto-Dominion Bank
Floating Rate
5.763% December 18, 2106
75,000 TransCanada Pipelines Limited
3.690% July 19, 2023
325,000 Wells Fargo Canada
Corporation
2.780% November 15, 2018
Government Bonds (12.7%)
CAD
CAD
296,310
323,902
CAD
CAD
397,505
403,409
300,000
304,692
150,000
152,274
635,040
636,099
275,000
274,916
512,682
515,404
CAD
343,995
320,327
CAD
CAD
Government Guaranteed Investments (11.1%)
CAD
CAD
643,126
616,049
355,394
354,536
599,274
602,404
337,386
360,063
675,000 Canada Housing Trust
Floating Rate
0.987% March 15, 2018
750,000 Canada Housing Trust
2.350% December 15, 2018
800,000 Canada Housing Trust
2.000% December 15, 2019
600,000 Municipal Finance Authority of
British Columbia
4.800% December 1, 2017
Provincial Bonds (22.3%)
CAD
CAD
CAD
299,607
299,493
CAD
355,495
354,059
CAD
720,960
705,835
CAD
275,839
286,199
CAD
333,578
307,212
CAD
150,106
154,099
CAD
461,993
461,047
CAD
696,476
704,889
347,148
327,541
275,227
325,000 Government of Canada
1.250% September 1, 2018
975,000 Government of Canada
1.750% March 1, 2019
600,000 Government of Canada
3.250% June 1, 2021
400,000 Government of Canada
Real Return Bonds
4.250% December 1, 2021
275,000 Government of Canada
Real Return Bonds
4.250% December 1, 2026
CAD
CAD
300,000 Financement-Quebec
3.500% December 1, 2017
325,000 Province of Alberta
1.600% June 15, 2018
300,000 Province of British Columbia
2.250% March 1, 2019
430,000 Province of Manitoba
Floating Rate
1.190% April 2, 2018
325,000 Province of Manitoba
5.500% November 15, 2018
325,000 Province of Ontario
5.500% June 2, 2018
600,000 Province of Ontario
4.400% June 2, 2019
850,000 Province of Ontario
4.000% June 2, 2021
600,000 Province of Quebec
4.500% December 1, 2018
575,000 Province of Quebec
4.250% December 1, 2021
300,000 Province of Quebec
Floating Rate
1.369% April 19, 2022
250,000 Province of Quebec
3.500% December 1, 2022
280,462
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
89
AGF Short-Term Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
279,672
5,905,270
279,829
5,769,729
–
–
25,884,411
25,221,984
Provincial Bonds (continued)
CAD
275,000 Province of Saskatchewan
1.950% March 1, 2019
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (97.3%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF Short-Term Income Class (the “Fund”).
90
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Short-Term Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide maximum income while
preserving capital and liquidity by investing primarily in short-term
instruments, government guaranteed securities and corporate paper
with a minimum A credit rating.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Sector
March 31, 2017
(%)
Corporate Bonds
Provincial Bonds
Government Bonds
Government Guaranteed Investments
Asset-Backed Securities
49.6
22.3
12.7
11.1
1.6
September 30, 2016
(%)
Corporate Bonds
Provincial Bonds
Government Bonds
Government Guaranteed Investments
Asset-Backed Securities
Municipal Bonds
Foreign Exchange Forward Contracts
50.0
19.6
14.3
10.9
1.4
1.1
0.0
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund invested in
debt instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AAA
AA
A
BBB
March 31,
2017
September 30,
2016
28.5
8.3
50.2
11.8
29.6
7.1
48.5
14.3
Interest Rate Risk
As at March 31, 2017 and September 30, 2016, the Fund’s exposure to
debt instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
March 31,
2017
September 30,
2016
2,304
10,728
8,389
3,801
1,090
10,887
9,897
6,792
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at March 31, 2017 and September 30, 2016, if the yield curve had
shifted in parallel by 25 basis points, with all other variables held
constant, Net Assets would have increased or decreased, respectively,
by approximately $153,000 (September 30, 2016 – $210,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 5 percent change in
benchmarks (September 30, 2016 – 5 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Effective December 1, 2016, the Fund’s secondary benchmark was
changed from 50% Bloomberg Barclays Global Inflation-Linked Bond
Index (CAD hedged) and 50% FTSE TMX Canada Short Term Bond
Index (the “Blended Benchmark”) to the FTSE TMX Canada Short Term
Bond Index to better reflect the investment opportunity set of the Fund.
Impact on Net Assets ($’000)
Benchmark
FTSE TMX Canada 91 Day T-Bill Index
FTSE TMX Canada Short Term Bond Index
Blended Benchmark
March 31,
2017
September 30,
2016
9,249
1,020
N/A
10,588
N/A
410
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
91
AGF Short-Term Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
As at March 31, 2017, the Fund has no exposure to foreign currencies.
Currencies to which the Fund had exposure as at September 30, 2016,
were as follows:
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
% of Gross
($’000)
Income
September 30, 2016
($‘000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
587
(569)
18
0.1
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016, if the Canadian dollar had strengthened or
weakened by 2 percent, in relation to all currencies, with all other
variables held constant, Net Assets would have decreased or increased,
respectively, by approximately $360.
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
–
–
–
–
–
25,222
–
–
25,222
–
–
–
–
–
–
–
–
–
–
25,222
–
–
25,222
–
–
100.0
–
–
1
–
–
100.0
–
–
(1)
(29.6)
(0)
(30.0)
Net Securities Lending Income
1
70.4
1
70.0
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
Level 1
Level 2
Level 3
Total
–
–
–
–
–
–
–
–
28,666
–
–
28,666
1
–
–
–
–
–
–
–
–
–
28,666
–
–
28,666
1
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
92
% of Gross
Income
2
–
–
March 31, 2017
($’000)
($’000)
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
March 31, 2016
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
2,253
–
2,368
1,895
–
2,019
AGF Total Return Bond Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
34,795
–
1,008
–
106
–
–
–
138
–
–
–
36,047
September 30,
2016
$
15,675
–
447
–
284
–
–
–
66
–
–
–
16,472
$
$
–
–
–
–
5
33
124
–
542
–
–
704
35,343
34,462
$
$
–
–
–
–
2
10
47
–
278
–
–
337
16,135
15,547
$
$
$
$
$
$
$
$
$
9,148
–
10,689
–
3,928
–
–
–
11,578
$
$
$
$
$
$
$
$
$
4,100
–
4,652
–
7,383
–
–
–
–
$
$
$
$
$
$
$
$
$
10.65
–
10.72
–
10.85
–
–
–
10.22
$
$
$
$
$
$
$
$
$
10.46
–
10.49
–
10.56
–
–
–
–
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
93
AGF Total Return Bond Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF CASH FLOWS (UNAUDITED)
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
94
2017
$
658
2
1
2016
$
–
–
–
205
866
–
–
–
–
–
–
–
–
–
–
–
866
–
–
82
–
23
8
9
–
–
12
–
–
1
–
16
–
–
–
–
–
–
–
–
–
–
–
–
–
–
151
–
–
(46)
105
–
–
$
761
$
–
$
$
$
$
$
$
$
$
$
163
–
213
–
129
–
–
–
256
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.27
–
0.29
–
0.39
–
–
–
0.31
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
For the periods ended March 31,
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
2017
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash distributions from underlying
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class
Net Cash Generated (Used) by Financing Activities
761
–
–
(1)
–
(205)
(18,566)
–
–
502
–
(586)
–
–
–
(72)
–
–
–
–
–
–
–
–
–
3
23
(18,141)
–
–
–
–
–
20,888
–
(2,186)
18,702
–
–
–
–
$
–
–
–
$
$
$
–
–
–
$
561
447
1,008
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
$
$
$
2
–
–
* Included as part of Cash Flows from Operating Activities
SEMI-ANNUAL REPORT 2017
$
–
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
The accompanying notes are an integral part of these financial statements.
2016
AGF Total Return Bond Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
4,100
–
4,652
–
7,383
–
–
–
–
2016
$
–
–
–
–
–
–
–
–
–
16,135
–
163
–
213
–
129
–
–
–
256
761
–
–
–
–
–
–
–
–
–
–
5,555
–
7,004
–
2,316
–
–
–
4,748
19,623
–
–
–
–
–
–
–
–
–
–
407
–
416
–
662
–
–
–
7,060
8,545
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(650)
–
(864)
–
(234)
–
–
–
(486)
(2,234)
–
–
–
–
–
–
–
–
–
–
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(427)
–
(732)
–
(6,328)
–
–
–
–
(7,487)
2016
$
–
–
–
–
–
–
–
–
–
–
18,447
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
19,208
–
9,148
–
10,689
–
3,928
–
–
–
11,578
–
–
–
–
–
–
–
–
–
35,343
$
–
95
AGF Total Return Bond Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
34,461,842
34,795,419
34,461,842
34,795,419
Fixed Income Fund (98.4%)
10,355,780 AGF Total Return Bond Fund –
Series S Units*
Total Portfolio (98.4%)
* AGF Total Return Bond Class (the “Fund”) invests in units of AGF Total
Return Bond Fund (the “Underlying Fund”).
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to the Fund.
96
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Total Return Bond Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide interest income and
capital appreciation by investing in debt securities of governments and
other issuers around the world. The Fund primarily invests in units of
the Underlying Fund.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Underlying Fund’s
major portfolio categories, as a percentage of the Underlying Fund’s Net
Assets, are included in the following tables. The Fund is indirectly
exposed to these portfolio categories as a result of investing
substantially all of its assets in units of the Underlying Fund.
Portfolio by Country
March 31, 2017
(%)
United States
Canada
Mexico
Brazil
United Kingdom
Luxembourg
Ireland
Peru
Portugal
Argentina
Dominican Republic
Belize
Italy
Paraguay
Republic of Honduras
United Arab Emirates
Cayman Islands
France
The Philippines
India
Yugoslavia
Switzerland
Turkey
Israel
Foreign Exchange Forward Contracts
Netherlands
Hong Kong
49.6
6.7
5.2
3.3
2.9
2.6
2.4
2.0
1.9
1.0
0.9
0.7
0.7
0.7
0.7
0.7
0.5
0.5
0.5
0.5
0.5
0.4
0.4
0.2
0.2
0.0
0.0
September 30, 2016
(%)
United States
Mexico
Canada
Ireland
United Kingdom
Brazil
Peru
Luxembourg
Portugal
Italy
Australia
Argentina
Dominican Republic
Cayman Islands
Paraguay
Indonesia
Pakistan
Republic of Honduras
Netherlands
Vietnam
Belize
Austria
United Arab Emirates
Guatemala
Turkey
India
Foreign Exchange Forward Contracts
Hong Kong
57.2
5.3
4.5
2.6
2.1
1.7
1.5
1.4
1.4
1.3
1.1
1.0
1.0
0.8
0.7
0.7
0.7
0.7
0.7
0.6
0.6
0.6
0.6
0.5
0.2
0.1
0.0
0.0
Portfolio by Sector
March 31, 2017
(%)
Corporate Bonds
High Yield Bonds
Government Bonds
Emerging Markets Bonds
Supranational Bonds
Provincial Bonds
Health Care
Foreign Exchange Forward Contracts
Materials
27.1
20.4
17.6
13.2
6.0
1.0
0.2
0.2
0.0
September 30, 2016
(%)
High Yield Bonds
Corporate Bonds
Government Bonds
Emerging Markets Bonds
Supranational Bonds
Provincial Bonds
Foreign Exchange Forward Contracts
Materials
31.0
22.5
17.4
11.7
6.0
1.0
0.0
0.0
Portfolio by Asset Mix
March 31, 2017
(%)
United States Fixed Income
International Fixed Income
Canadian Fixed Income
International Equity
Foreign Exchange Forward Contracts
49.6
29.0
6.7
0.2
0.2
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
97
AGF Total Return Bond Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
(%)
United States Fixed Income
International Fixed Income
Canadian Fixed Income
Foreign Exchange Forward Contracts
International Equity
57.2
27.9
4.5
0.0
0.0
As at March 31, 2017, the total fair value of private and/or restricted
securities held within the Underlying Fund represented approximately
$31,000. As at September 30, 2016, the Underlying Fund did not hold
any private and/or restricted securities.
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the Underlying Fund as at March 31,
2017 and September 30, 2016 are included in the following tables:
March 31, 2017
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
34,795
5.2
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
15,675
2.4
AGF Total Return Bond Fund
September 30, 2016
AGF Total Return Bond Fund
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Underlying Fund
invested in debt instruments, foreign exchange forward contracts,
preferred shares, short-term investments and cash and cash
equivalents, as applicable, with the following credit ratings:
Percentage of Underlying Fund’s Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
CC
C
Not Rated
March 31,
2017
September 30,
2016
17.7
3.3
22.6
12.0
19.4
18.5
2.4
0.7
0.3
2.1
16.2
1.1
15.0
9.3
23.6
24.5
4.8
0.7
0.2
3.0
Interest Rate Risk
As at March 31, 2017 and September 30, 2016, the Underlying
Fund’s exposure to debt instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
March 31,
2017
September 30,
2016
21,684
102,536
85,955
365,671
18,863
94,068
82,244
400,922
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at March 31, 2017 and September 30, 2016, if the yield curve had
shifted in parallel by 25 basis points, with all other variables held
constant, the Fund’s Net Assets would have increased or decreased,
respectively, by approximately $299,000 (September 30, 2016 –
$165,000) as a result of the Underlying Fund’s exposure to interest rate
risk.
As at March 31, 2017, the Underlying Fund held cash and cash
equivalents which were subject to fluctuations in the prevailing levels of
market interest rates. If market interest rates had changed by 25 basis
points, with all other variables held constant, interest income of the
Underlying Fund would have changed by approximately $225,000. As at
September 30, 2016, the Underlying Fund did not hold any significant
cash and cash equivalents.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 15 percent change in
benchmarks (September 30, 2016 – 20 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
Bloomberg Barclays Global High-Yield Index
Blended Benchmark
March 31, September 30,
2017
2016
2,765
2,930
1,182
1,544
The Blended Benchmark is composed of 40% Bloomberg Barclays
Emerging Markets USD Aggregate Index, 40% Bloomberg Barclays Global
High-Yield Index and 20% Bloomberg Barclays Global Aggregate Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
98
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Total Return Bond Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Currency Risk
As at March 31, 2017 and September 30, 2016, the Fund did not have a
significant direct exposure to currency risk.
The amounts in the following tables are based on the fair value of the
Underlying Fund’s financial instruments (including cash and cash
equivalents) as well as the underlying principal amounts of foreign
exchange forward contracts, as applicable. Other financial assets
(including cash collateral received for securities on loan, dividends,
distributions and interest receivables and receivables for investments
sold) and financial liabilities (including payable for cash collateral under
securities lending and payable for investments purchased) that are
denominated in foreign currencies do not expose the Underlying
Fund to significant currency risk.
Currencies to which the Underlying Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
34,795
34,795
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
34,795
34,795
–
–
Level 1
Level 2
Level 3
Total
–
–
–
15,675
15,675
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
15,675
15,675
–
–
September 30, 2016
March 31, 2017
($’000)
United States Dollar
New Zealand Dollar
Mexican Peso
Indonesian Rupiah
Peruvian New Sol
Brazilian Real
Euro Currency
Indian Rupee
Pound Sterling
($’000)
Foreign
Exchange
Financial Forward
% of Underlying
Instruments Contracts Total** Fund’s Net Assets
472,402
21,016
20,905
16,202
13,661
12,646
14,975
3,318
1
(300,973)
–
–
–
–
–
(6,191)
–
–
171,429
21,016
20,905
16,202
13,661
12,646
8,784
3,318
1
25.4
3.1
3.1
2.4
2.0
1.9
1.3
0.5
0.0
September 30, 2016
($’000)
United States Dollar
Mexican Peso
Indonesian Rupiah
Euro Currency
Brazilian Real
New Zealand Dollar
Peruvian New Sol
Indian Rupee
Pound Sterling
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
Foreign
Exchange
Financial Forward
% of Underlying
Instruments Contracts Total** Fund’s Net Assets
483,339
20,105
16,267
24,211
12,806
21,223
9,862
3,292
1
(344,311)
–
–
(9,722)
–
(10,688)
–
–
–
139,028
20,105
16,267
14,489
12,806
10,535
9,862
3,292
1
20.9
3.0
2.4
2.2
1.9
1.6
1.5
0.5
0.0
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, the Fund’s Net Assets would have
decreased or increased, respectively, by approximately $279,000
(September 30, 2016 – $109,000) as a result of the Underlying Fund’s
exposure to currency risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
99
AGF U.S. Sector Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Approved by the Board
W. Robert Farquharson, Director
100
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
472,710
500
4,017
121,184
302
–
–
–
33
–
–
–
598,746
September 30,
2016
$
476,532
231
1,776
–
189
1,025
–
–
42
–
–
–
479,795
$
$
–
–
31
121,184
211
454
1,117
–
–
–
–
122,997
475,749
420,490
$
$
–
–
80
–
180
368
1,374
–
1
–
–
2,003
477,792
453,063
$
$
$
$
$
$
$
$
$
419,286
–
42,311
–
11,319
–
–
–
2,833
$
$
$
$
$
$
$
$
$
415,555
–
44,193
–
13,628
–
–
–
4,416
$
$
$
$
$
$
$
$
$
14.82
–
15.45
–
16.26
–
–
–
13.27
$
$
$
$
$
$
$
$
$
13.21
–
13.69
–
14.30
–
–
–
11.67
AGF U.S. Sector Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
$
–
17,345
9
16,459
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
–
4,097
24
(14,376)
28,751
62,564
(2,243)
(12,217)
(22,472)
(3,639)
318
(1,925)
143
2,583
(1,056)
147
12
60,794
3,485
(19,896)
4,792
5,866
352
16
10
20
–
40
–
1
1
–
622
417
435
32
6
25
–
41
–
23
1
–
747
615
117
6,388
819
8,610
(29)
6,359
(281)
8,329
54,435
$
(28,225)
$
$
$
$
$
$
$
$
$
47,499
–
4,997
–
1,585
–
–
–
354
$
$
$
$
$
$
$
$
$
(23,825)
–
(3,210)
–
(808)
–
–
–
(382)
$
$
$
$
$
$
$
$
$
1.60
–
1.73
–
1.94
–
–
–
1.55
$
$
$
$
$
$
$
$
$
(0.62)
–
(0.58)
–
(0.49)
–
–
–
(0.42)
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares,
net of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
Income taxes (paid) recovered *
54,435
2016
$
–
(28,225)
(4,030)
(14,216)
18,015
(29,069)
(110,930)
9,634
(1,434,346)
158,743
1,532,081
–
–
–
–
9
(7)
–
–
–
–
–
–
–
–
31
86
59,089
74
(310)
92,886
–
–
24,919
44,918
(81,767)
(56,848)
(140,556)
(95,638)
–
4,030
$
2,241
1,776
4,017
(2,752)
2,139
3,417
$
$
9
$
23
$
$
16,928
–
$
$
3,482
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
101
AGF U.S. Sector Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
102
2017
415,555
–
44,193
–
13,628
–
–
–
4,416
2016
$
534,467
–
84,737
–
25,967
–
–
–
12,604
477,792
657,775
47,499
–
4,997
–
1,585
–
–
–
354
54,435
(23,825)
–
(3,210)
–
(808)
–
–
–
(382)
(28,225)
21,279
–
3,508
–
323
–
–
–
653
25,763
36,932
–
3,979
–
1,838
–
–
–
–
42,749
1,315
–
2,533
–
266
–
–
–
500
4,614
2,139
–
4,260
–
692
–
–
–
101
7,192
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(57,925)
–
(11,568)
–
(3,800)
–
–
–
(3,090)
(76,383)
(85,377)
–
(31,757)
–
(8,412)
–
–
–
(4,983)
(130,529)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(8,437)
–
(1,352)
–
(683)
–
–
–
–
(10,472)
2016
$
(56,478)
(14,139)
–
(722)
–
(353)
–
–
–
(100)
(15,314)
(95,902)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(2,043)
(124,127)
419,286
–
42,311
–
11,319
–
–
–
2,833
475,749
450,197
–
57,287
–
18,924
–
–
–
7,240
$
533,648
AGF U.S. Sector Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Average
Cost ($)
No. of Units
Fair
Value ($)
ETFs – United States Equity (99.4%)
615,160 The Consumer Discretionary
Select Sector SPDR Fund
601,694 The Consumer Staples Select
Sector SPDR Fund
65,494 The Energy Select Sector
SPDR Fund
1,359,832 The Financial Select Sector
SPDR Fund
927,207 The Health Care Select Sector
SPDR Fund
373,582 The Industrial Select Sector
SPDR Fund
65,070 The Materials Select Sector
SPDR Fund
194,856 The Real Estate Select Sector
SPDR Fund
1,822,742 The Technology Select Sector
SPDR Fund
No. of Units
Average
Cost ($)
Fair
Value ($)
37,663,208
420,595,608
42,129,545
472,709,876
ETFs – United States Equity (continued)
617,422 The Utilities Select Sector
SPDR Fund
63,945,604
71,949,303
40,320,562
43,672,884
5,371,639
6,088,094
41,458,951
42,912,681
85,161,199
91,689,318
26,946,756
32,322,330
3,784,851
4,535,212
Total Portfolio (99.5%)
8,215,252
8,188,500
ETF – Exchange Traded Fund
107,727,586
129,222,009
Commissions and other portfolio
transaction costs (Note 2)
(105,149)
Total Investments (99.4%)
420,490,459
Foreign Exchange Forward Contracts (0.1%)
See Schedule A
–
472,709,876
–
469,035
420,490,459
473,178,911
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF U.S. Sector Class (the “Fund”).
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
CAD
CAD
CAD
CAD
19,371,383
19,550,435
15,064,640
20,293,480
20,021,166
23,231,863
USD
USD
USD
USD
USD
USD
Sold Currency
Forward Rate
Maturity Date
14,353,000
14,630,000
11,275,000
15,250,000
15,050,000
17,500,000
1.3496
1.3363
1.3361
1.3307
1.3303
1.3275
April 13, 2017
April 21, 2017
April 21, 2017
April 28, 2017
April 28, 2017
April 28, 2017
Fair Value ($)
287,653
100,669
75,159
21,523
15,070
(31,039)
469,035
Counterparty
Credit Rating
Royal Bank of Canada
Bank of Montreal
The Toronto-Dominion Bank
Bank of America
Citibank NA
The Bank of Nova Scotia
AA
A
AA
BBB
A
A
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
103
AGF U.S. Sector Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term capital
appreciation while normally maintaining lower than market volatility.
The Fund seeks to obtain exposure to a diversified portfolio consisting
primarily of, but not limited to, any combination of U.S. sector based
ETFs and/or equity securities, short-term instruments, as well as cash
and cash equivalents.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
United States
Foreign Exchange Forward Contracts
99.4
0.1
September 30, 2016
(%)
United States
Foreign Exchange Forward Contracts
99.8
0.0
Portfolio by Sector
March 31, 2017
(%)
ETFs – United States Equity
Foreign Exchange Forward Contracts
99.4
0.1
September 30, 2016
(%)
ETFs – United States Equity
Foreign Exchange Forward Contracts
99.8
0.0
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at March
31, 2017 and September 30, 2016 are included in the following tables:
March 31, 2017
The Technology Select Sector SPDR Fund
The Consumer Discretionary Select Sector
SPDR Fund
The Utilities Select Sector SPDR Fund
The Health Care Select Sector SPDR Fund
The Consumer Staples Select Sector SPDR Fund
The Industrial Select Sector SPDR Fund
The Real Estate Select Sector SPDR Fund
The Financial Select Sector SPDR Fund
The Materials Select Sector SPDR Fund
The Energy Select Sector SPDR Fund
September 30, 2016
The Materials Select Sector SPDR Fund
The Industrial Select Sector SPDR Fund
The Consumer Discretionary Select Sector
SPDR Fund
The Technology Select Sector SPDR Fund
The Health Care Select Sector SPDR Fund
The Financial Select Sector SPDR Fund
The Real Estate Select Sector SPDR Fund
The Utilities Select Sector SPDR Fund
The Consumer Staples Select Sector SPDR Fund
The Energy Select Sector SPDR Fund
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
129,222
0.7
71,949
42,130
91,689
43,673
32,322
8,189
42,913
4,535
6,088
0.5
0.5
0.4
0.4
0.3
0.2
0.1
0.1
0.0
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
42,788
77,161
1.1
0.8
73,053
86,210
67,450
49,280
11,644
29,083
20,589
19,274
0.5
0.5
0.4
0.3
0.3
0.3
0.2
0.1
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Portfolio by Asset Mix
March 31, 2017
(%)
United States Equity
Foreign Exchange Forward Contracts
99.4
0.1
September 30, 2016
(%)
United States Equity
Foreign Exchange Forward Contracts
99.8
0.0
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives.
Accordingly, the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 60 percent change in
benchmark (September 30, 2016 – 75 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
104
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF U.S. Sector Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
S&P 500 Net Return Index
March 31,
2017
September 30,
2016
173,174
219,275
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31, 2017
($’000)
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
476,754
(117,064) 359,690
75.6
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
472,710
–
–
–
472,710
–
–
($’000)
Level 1
United States Dollar
479,569
(121,292) 358,277
75.0
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $7,194,000 (September 30,
2016 – $7,166,000).
–
–
–
–
–
–
–
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
476,532
–
–
–
476,532
–
–
Level 2
Level 3
–
–
–
–
–
231
(80)
Total
472,710
–
–
–
472,710
500
(31)
–
–
–
–
–
–
–
Total
476,532
–
–
–
476,532
231
(80)
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
Level 3
–
–
–
–
–
500
(31)
September 30, 2016
September 30, 2016
($’000)
Level 2
March 31, 2016
% of Gross
($’000)
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
($’000)
% of Gross
Income
286
(19)
(59)
100.0
(6.7)
(20.6)
280
–
(70)
100.0
–
(25.0)
(65)
(22.8)
(63)
(22.5)
143
49.9
147
52.5
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
222,177
121,184
111,149
173,432
–
182,557
105
AGF Elements Balanced Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Cash and cash equivalents
Receivable for shares issued
Receivable for investments sold
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Approved by the Board
W. Robert Farquharson, Director
106
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
124,008
892
492
–
–
238
–
49
125,679
September 30,
2016
$
104,835
382
108
195
–
201
–
87
105,808
$
$
–
39
80
224
64
1,157
–
1,564
124,115
117,116
$
$
–
31
75
136
53
194
–
489
105,319
100,166
$
$
$
$
$
$
$
$
$
70,525
53
5,925
–
24,553
–
8,569
9,323
5,167
$
$
$
$
$
$
$
$
$
66,990
51
4,986
–
16,142
–
6,881
7,308
2,961
$
$
$
$
$
$
$
$
$
26.46
26.75
28.82
–
14.42
–
13.35
17.02
11.30
$
$
$
$
$
$
$
$
$
25.40
25.69
27.50
–
13.68
–
13.35
16.76
10.72
AGF Elements Balanced Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
3,147
2
737
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
2,223
6,109
6,109
5,026
2
340
(3,407)
1,961
1,961
861
778
46
7
10
–
–
16
–
–
1
–
96
1,037
63
12
6
8
–
13
–
–
1
–
93
974
(34)
1,003
(39)
935
$
5,106
$
1,026
$
$
$
$
$
$
$
$
$
2,838
2
259
–
1,114
–
314
349
230
$
$
$
$
$
$
$
$
$
636
0
55
–
240
–
22
73
–
$
$
$
$
$
$
$
$
$
1.06
1.06
1.35
–
0.77
–
0.55
0.73
0.62
$
$
$
$
$
$
$
$
$
0.24
0.27
0.34
–
0.24
–
0.07
0.18
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Net realized (gain) loss on investments
Net change in unrealized (appreciation)
depreciation in value of investments
Purchases of investments
Proceeds from sale of investments
Non-cash distributions from underlying
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
(Increase) decrease in accrued interest for
short-term investments
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares,
net of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
5,106
2016
$
1,026
(737)
(340)
(2,223)
(26,328)
14,383
3,407
(13,555)
8,819
(3,110)
–
(5,041)
–
(37)
–
15
–
38
(38)
–
–
8
5
(12,895)
6
22
(5,679)
(341)
(230)
22,806
14,480
(9,060)
13,405
(8,723)
5,527
$
(152)
377
225
$
$
$
2
–
(38)
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
$
510
382
892
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
$
$
$
2
–
38
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
107
AGF Elements Balanced Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
108
2017
66,990
51
4,986
–
16,142
–
6,881
7,308
2,961
105,319
2016
$
62,935
48
3,490
–
11,265
–
3,766
6,600
–
88,104
2,838
2
259
–
1,114
–
314
349
230
5,106
636
0
55
–
240
–
22
73
–
1,026
7,601
–
472
–
5,603
–
1,922
2,581
1,212
19,391
8,312
–
249
–
2,858
–
1,036
939
–
13,394
2,745
–
706
–
3,332
–
299
–
855
7,937
1,506
–
1,401
–
373
–
146
25
–
3,451
–
–
–
–
–
–
126
43
–
169
–
–
–
–
–
–
64
48
–
112
(7,466)
–
(390)
–
(1,313)
–
(586)
(572)
(91)
(10,418)
(6,638)
–
(419)
–
(696)
–
(517)
(648)
–
(8,918)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(2,183)
–
(108)
–
(325)
–
(71)
(181)
–
(2,868)
2016
$
(1,314)
–
(233)
–
(119)
–
(464)
(136)
–
(2,266)
14,211
5,773
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(316)
(205)
–
(521)
–
–
–
–
–
–
(169)
(174)
–
(343)
18,796
6,456
70,525
53
5,925
–
24,553
–
8,569
9,323
5,167
65,437
48
4,543
–
13,921
–
3,884
6,727
–
124,115
$
94,560
AGF Elements Balanced Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
11,638,078
12,396,463
5,700,444
6,215,939
1,159,817
1,232,173
2,019,697
2,502,136
12,545,498
12,415,818
11,579,150
12,397,236
3,671,831
3,710,707
2,209,977
2,461,980
2,506,017
2,481,883
6,659,995
7,408,499
12,192,199
14,820,561
2,627,466
2,519,017
3,046,837
65,918,928
3,719,095
71,885,044
2,427,415
2,477,002
7,571,554
7,457,672
18,460,941
18,619,146
3,740,627
3,725,644
7,357,983
39,558,520
7,446,763
39,726,227
117,115,526
124,007,734
Balanced Fund (10.0%)
1,151,018 AGF Tactical Fund –
Series S Units
Equity Funds (57.9%)
205,282 AGF American Growth Fund –
Series S Units
90,534 AGF Asian Growth Fund –
Series S Units
225,825 AGF Canadian Small Cap Fund –
Series S Units
252,303 AGF Canadian Stock Fund –
Series S Units
834,269 AGF Dividend Income Fund –
Series S Units
462,106 AGF EAFE Equity Fund –
Series S Units
173,623 AGF Emerging Markets Fund –
Series S Units
251,968 AGF European Equity Fund –
Series S Units
261,047 AGF Global Dividend Fund –
Series S Units
404,822 AGF Global Equity Fund –
Series S Units
291,891 AGF Global Resources Fund –
Series S Units
133,684 AGF U.S. Risk Managed Fund –
Series S Units
Fixed Income Funds (32.0%)
239,555 AGF Emerging Markets Bond
Fund – Series S Units
615,319 AGF Fixed Income Plus Fund –
Series S Units
1,627,548 AGF Global Bond Fund –
Series S Units
660,575 AGF High Yield Bond Fund –
Series S Units
2,216,299 AGF Total Return Bond Fund –
Series S Units
Total Portfolio (99.9%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF Elements Balanced Portfolio Class (the
“Portfolio”).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
109
AGF Elements Balanced Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Portfolio’s investment objective is to provide high long-term returns
by investing primarily in a diversified mix of equity, income and bond
mutual funds.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Portfolio’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Sector
March 31, 2017
(%)
Equity Funds
Fixed Income Funds
Balanced Funds
57.9
32.0
10.0
September 30, 2016
(%)
Equity Funds
Fixed Income Funds
Balanced Funds
52.9
35.7
10.9
September 30, 2016
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
AGF Global Resources Fund
AGF EAFE Equity Fund
AGF Tactical Fund
AGF European Equity Fund
AGF American Growth Fund
AGF U.S. Risk Managed Fund
AGF Global Bond Fund
AGF Emerging Markets Bond Fund
AGF Global Equity Fund
AGF Dividend Income Fund
AGF Canadian Small Cap Fund
AGF Total Return Bond Fund
AGF Canadian Stock Fund
AGF High Yield Bond Fund
AGF Fixed Income Plus Fund
AGF Emerging Markets Fund
AGF Global Dividend Fund
AGF Canadian Large Cap Dividend Fund
2,149
3,112
11,547
2,104
5,280
5,239
15,661
3,123
10,483
8,403
2,107
7,330
8,463
4,204
7,278
2,080
5,221
1,050
29.9
5.1
4.2
3.5
3.1
3.0
2.9
1.9
1.2
1.2
1.2
1.1
1.1
1.0
0.5
0.3
0.2
0.1
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Interest in Unconsolidated Structured Entities (Note 2)
The Portfolio’s investment details in the underlying funds as at
March 31, 2017 and September 30, 2016 are included in the following
tables:
March 31, 2017
AGF Asian Growth Fund
AGF Global Resources Fund
AGF EAFE Equity Fund
AGF Tactical Fund
AGF European Equity Fund
AGF American Growth Fund
AGF U.S. Risk Managed Fund
AGF Global Bond Fund
AGF Global Equity Fund
AGF Emerging Markets Bond Fund
AGF Dividend Income Fund
AGF Canadian Stock Fund
AGF Canadian Small Cap Fund
AGF Total Return Bond Fund
AGF High Yield Bond Fund
AGF Fixed Income Plus Fund
AGF Emerging Markets Fund
AGF Global Dividend Fund
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
1,232
2,519
3,711
12,396
2,482
6,216
3,719
18,619
14,821
2,477
12,397
12,416
2,502
7,447
3,726
7,458
2,462
7,408
62.5
9.4
5.6
4.4
3.8
3.6
3.3
3.1
1.7
1.6
1.6
1.4
1.3
1.1
0.9
0.6
0.3
0.3
Other Price Risk
The Schedule of Investment Portfolio of the Portfolio classifies securities
by asset type.
The impact on Net Assets of the Portfolio due to a 20 percent change in
benchmarks (September 30, 2016 – 25 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Portfolio’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Portfolio is less than three years, in which case since
inception data has been used. The returns of the other series of the
Portfolio are substantially similar to that of the Mutual Fund Shares,
save for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
MSCI All Country World Index
Bloomberg Barclays Global Aggregate Index
Blended Benchmark
March 31,
2017
September 30,
2016
14,555
8,139
22,414
15,904
8,497
24,481
The Blended Benchmark is composed of 45% MSCI All Country World
Index, 30% Bloomberg Barclays Global Aggregate Index, 15% S&P/TSX
Composite Index and 10% FTSE TMX Canada Universe Bond Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The Portfolio is indirectly exposed to credit, interest rate and currency
risks, as applicable, of the underlying funds as at March 31, 2017 and
September 30, 2016.
110
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Elements Balanced Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Portfolio’s
financial instruments within the fair value hierarchy as at March 31,
2017 and September 30, 2016.
March 31, 2017
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
124,008
124,008
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
124,008
124,008
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
104,835
104,835
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
104,835
104,835
–
–
September 30, 2016
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Portfolio did not hold financial instruments within level 3 of the fair
value hierarchy.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
111
AGF Elements Conservative Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Cash and cash equivalents
Receivable for shares issued
Receivable for investments sold
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Approved by the Board
W. Robert Farquharson, Director
112
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
72,615
28
210
371
–
201
–
25
73,450
September 30,
2016
$
66,877
419
55
53
–
185
–
25
67,614
$
$
–
24
66
273
–
219
–
582
72,868
69,775
$
$
–
20
48
110
–
118
–
296
67,318
64,078
$
$
$
$
$
$
$
$
$
53,177
17
4,792
–
10,500
–
–
–
4,382
$
$
$
$
$
$
$
$
$
52,971
17
3,676
–
8,308
–
–
–
2,346
$
$
$
$
$
$
$
$
$
23.74
23.76
25.87
–
11.15
–
–
–
11.03
$
$
$
$
$
$
$
$
$
23.19
23.25
25.12
–
10.76
–
–
–
10.65
AGF Elements Conservative Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
1,867
1
631
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
41
2,540
2,540
2,062
1
133
(1,313)
883
883
544
466
33
7
11
–
–
13
–
–
1
–
62
671
48
11
6
7
–
11
–
–
1
–
58
608
(19)
652
(47)
561
$
1,888
$
322
$
$
$
$
$
$
$
$
$
1,226
0
134
–
380
–
–
–
148
$
$
$
$
$
$
$
$
$
295
1
16
–
10
–
–
–
–
$
$
$
$
$
$
$
$
$
0.54
0.51
0.81
–
0.42
–
–
–
0.44
$
$
$
$
$
$
$
$
$
0.15
0.18
0.16
–
0.04
–
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Net realized (gain) loss on investments
Net change in unrealized (appreciation)
depreciation in value of investments
Purchases of investments
Proceeds from sale of investments
Non-cash distributions from underlying
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
(Increase) decrease in accrued interest for
short-term investments
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
1,888
2016
$
322
(631)
(133)
(41)
(17,492)
14,060
1,313
(13,799)
4,027
(1,851)
–
(2,056)
–
(16)
–
(6)
–
–
–
–
–
4
18
(4,061)
6
(28)
(10,354)
–
–
14,950
14,770
(11,280)
3,670
(4,210)
10,560
$
(391)
419
28
$
206
270
476
$
$
$
1
–
–
$
$
$
1
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
113
AGF Elements Conservative Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
114
2017
52,971
17
3,676
–
8,308
–
–
–
2,346
2016
$
41,842
36
1,426
–
776
–
–
–
–
67,318
44,080
1,226
0
134
–
380
–
–
–
148
1,888
295
1
16
–
10
–
–
–
–
322
6,594
–
1,140
–
3,892
–
–
–
2,089
13,715
9,264
–
1,364
–
2,159
–
–
–
–
12,787
1,224
–
378
–
1,003
–
–
–
92
2,697
2,211
–
818
–
624
–
–
–
–
3,653
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(6,463)
–
(421)
–
(1,923)
–
–
–
(153)
(8,960)
(4,087)
–
(178)
–
(27)
–
–
–
–
(4,292)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(2,375)
–
(115)
–
(1,160)
–
–
–
(140)
(3,790)
2016
$
(1,149)
–
(329)
–
–
–
–
–
–
(1,478)
3,662
10,670
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
5,550
10,992
53,177
17
4,792
–
10,500
–
–
–
4,382
48,376
37
3,117
–
3,542
–
–
–
–
72,868
$
55,072
AGF Elements Conservative Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
5,459,407
5,808,887
2,780,508
2,904,635
684,611
730,890
4,313,891
4,363,264
4,703,336
5,079,957
1,437,860
1,449,102
700,330
719,413
3,785,144
4,339,747
4,823,589
5,787,055
1,495,890
1,448,229
1,251,824
25,976,983
1,450,047
28,272,339
2,851,326
2,901,040
7,354,635
7,280,093
18,070,146
18,176,500
3,593,240
3,633,659
6,469,723
38,339,070
6,542,136
38,533,428
69,775,460
72,614,654
Balanced Fund (8.0%)
539,358 AGF Tactical Fund –
Series S Units
Equity Funds (38.8%)
95,926 AGF American Growth Fund –
Series S Units
65,965 AGF Canadian Small Cap Fund –
Series S Units
88,666 AGF Canadian Stock Fund –
Series S Units
341,854 AGF Dividend Income Fund –
Series S Units
180,461 AGF EAFE Equity Fund –
Series S Units
50,734 AGF Emerging Markets Fund –
Series S Units
152,916 AGF Global Dividend Fund –
Series S Units
158,073 AGF Global Equity Fund –
Series S Units
167,813 AGF Global Resources Fund –
Series S Units
52,122 AGF U.S. Risk Managed Fund –
Series S Units
Fixed Income Funds (52.9%)
280,582 AGF Emerging Markets Bond
Fund – Series S Units
600,668 AGF Fixed Income Plus Fund –
Series S Units
1,588,840 AGF Global Bond Fund –
Series S Units
644,266 AGF High Yield Bond Fund –
Series S Units
1,947,064 AGF Total Return Bond Fund –
Series S Units
Total Portfolio (99.7%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF Elements Conservative Portfolio Class
(the “Portfolio”).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
115
AGF Elements Conservative Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Portfolio’s investment objective is to provide long-term returns with
lower risk by investing primarily in a diversified mix of income, bond,
money market and equity mutual funds.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Portfolio’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Sector
March 31, 2017
(%)
Fixed Income Funds
Equity Funds
Balanced Funds
52.9
38.8
8.0
September 30, 2016
(%)
Fixed Income Funds
Equity Funds
Balanced Funds
55.5
35.8
8.0
Interest in Unconsolidated Structured Entities (Note 2)
The Portfolio’s investment details in the underlying funds as at
March 31, 2017 and September 30, 2016 are included in the following
tables:
March 31, 2017
AGF Global Resources Fund
AGF Global Bond Fund
AGF EAFE Equity Fund
AGF Tactical Fund
AGF Emerging Markets Bond Fund
AGF American Growth Fund
AGF U.S. Risk Managed Fund
AGF Total Return Bond Fund
AGF High Yield Bond Fund
AGF Global Equity Fund
AGF Dividend Income Fund
AGF Fixed Income Plus Fund
AGF Canadian Stock Fund
AGF Canadian Small Cap Fund
AGF Global Dividend Fund
AGF Emerging Markets Fund
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
1,448
18,177
1,449
5,809
2,901
2,905
1,450
6,542
3,634
5,787
5,080
7,280
4,363
731
4,340
719
5.4
3.0
2.2
2.1
1.9
1.7
1.3
1.0
0.9
0.7
0.6
0.6
0.5
0.4
0.2
0.1
September 30, 2016
AGF Global Bond Fund
AGF EAFE Equity Fund
AGF Emerging Markets Bond Fund
AGF Tactical Fund
AGF U.S. Risk Managed Fund
AGF American Growth Fund
AGF Total Return Bond Fund
AGF Fixed Income Plus Fund
AGF Dividend Income Fund
AGF High Yield Bond Fund
AGF Global Equity Fund
AGF Canadian Stock Fund
AGF Global Dividend Fund
AGF Canadian Large Cap Dividend Fund
Fair Value of
Portfolio’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
16,039
1,327
3,333
5,368
2,677
2,027
6,016
9,299
4,700
2,683
5,355
2,703
4,007
1,343
3.0
2.2
2.0
1.9
1.5
1.2
0.9
0.7
0.7
0.7
0.6
0.3
0.2
0.1
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Other Price Risk
The Schedule of Investment Portfolio of the Portfolio classifies securities
by asset type.
The impact on Net Assets of the Portfolio due to a 15 percent change in
benchmarks (September 30, 2016 – 20 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Portfolio’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Portfolio is less than three years, in which case since
inception data has been used. The returns of the other series of the
Portfolio are substantially similar to that of the Mutual Fund Shares,
save for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
FTSE TMX Canada Universe Bond Index
MSCI All Country World Index
Blended Benchmark
March 31,
2017
September 30,
2016
10,841
5,357
9,484
13,427
6,628
11,770
The Blended Benchmark is composed of 36% Bloomberg Barclays
Global Aggregate Index, 30% MSCI All Country World Index, 24% FTSE
TMX Canada Universe Bond Index and 10% S&P/TSX Composite Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The Portfolio is indirectly exposed to credit, interest rate and currency
risks, as applicable, of the underlying funds as at March 31, 2017 and
September 30, 2016.
116
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Elements Conservative Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Portfolio’s
financial instruments within the fair value hierarchy as at March 31,
2017 and September 30, 2016.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
72,615
72,615
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
72,615
72,615
–
–
Level 1
Level 2
Level 3
Total
–
–
–
66,877
66,877
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
66,877
66,877
–
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Portfolio did not hold financial instruments within level 3 of the fair
value hierarchy.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
117
AGF Elements Global Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Cash and cash equivalents
Receivable for shares issued
Receivable for investments sold
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Approved by the Board
W. Robert Farquharson, Director
118
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
12,608
129
–
12
–
2
–
7
12,758
September 30,
2016
$
10,877
114
1
7
–
2
–
7
11,008
$
$
–
5
35
20
–
10
–
70
12,688
11,400
$
$
–
4
15
13
–
1
–
33
10,975
10,003
$
$
$
$
$
$
$
$
$
10,997
–
505
–
360
–
–
–
826
$
$
$
$
$
$
$
$
$
9,744
1
552
–
677
–
–
–
1
$
$
$
$
$
$
$
$
$
31.27
–
33.89
–
11.83
–
–
–
11.67
$
$
$
$
$
$
$
$
$
29.15
29.33
31.40
–
10.88
–
–
–
11.00
AGF Elements Global Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
473
–
181
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
909
–
185
334
988
988
(933)
161
161
112
109
22
6
11
–
–
11
–
–
1
–
16
179
41
11
6
4
–
10
–
–
1
–
19
201
(36)
143
(63)
138
$
845
$
23
$
$
$
$
$
$
$
$
$
735
(0)
36
–
32
–
–
–
42
$
$
$
$
$
$
$
$
$
14
1
1
–
7
–
–
–
–
$
$
$
$
$
$
$
$
$
2.10
(0.00)
2.36
–
0.80
–
–
–
1.29
$
$
$
$
$
$
$
$
$
0.04
0.10
0.06
–
0.17
–
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Net realized (gain) loss on investments
Net change in unrealized (appreciation)
depreciation in value of investments
Purchases of investments
Proceeds from sale of investments
Non-cash distributions from underlying
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
(Increase) decrease in accrued interest for
short-term investments
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
845
2016
$
23
(181)
(185)
(334)
(2,938)
2,199
933
(2,270)
2,118
(473)
–
(909)
–
–
–
–
–
–
–
–
–
1
20
(861)
2
(10)
(298)
–
–
2,320
1,962
(1,444)
876
(1,746)
216
$
(82)
108
26
$
$
$
–
–
–
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
$
15
114
129
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
$
$
$
–
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
119
AGF Elements Global Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
120
2017
9,744
1
552
–
677
–
–
–
1
2016
$
9,643
7
554
–
438
–
–
–
–
10,975
10,642
735
(0)
36
–
32
–
–
–
42
845
14
1
1
–
7
–
–
–
–
23
1,882
–
–
–
28
–
–
–
156
2,066
1,247
–
15
–
–
–
–
–
–
1,262
230
–
67
–
101
–
–
–
629
1,027
414
–
157
–
–
–
–
–
–
571
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(794)
(1)
(71)
–
(5)
–
–
–
(2)
(873)
(1,295)
–
(124)
–
(5)
–
–
–
–
(1,424)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(800)
–
(79)
–
(473)
–
–
–
–
(1,352)
2016
$
(180)
–
(149)
–
–
–
–
–
–
(329)
868
80
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,713
103
10,997
–
505
–
360
–
–
–
826
9,843
8
454
–
440
–
–
–
–
12,688
$
10,745
AGF Elements Global Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
2,131,747
2,272,246
1,815,329
1,902,808
239,603
250,864
201,392
255,031
364,898
379,684
378,142
377,333
484,197
499,418
634,928
629,609
1,146,899
1,254,048
2,402,041
3,017,862
390,600
381,387
1,209,826
9,267,855
1,387,885
10,335,929
11,399,602
12,608,175
Balanced Fund (17.9%)
210,979 AGF Tactical Fund –
Series S Units
Equity Funds (81.5%)
62,840 AGF American Growth Fund –
Series S Units
18,432 AGF Asian Growth Fund –
Series S Units
23,017 AGF Canadian Small Cap Fund –
Series S Units
7,716 AGF Canadian Stock Fund –
Series S Units
46,990 AGF EAFE Equity Fund –
Series S Units
35,220 AGF Emerging Markets Fund –
Series S Units
63,920 AGF European Equity Fund –
Series S Units
44,188 AGF Global Dividend Fund –
Series S Units
82,433 AGF Global Equity Fund –
Series S Units
44,193 AGF Global Resources Fund –
Series S Units
49,888 AGF U.S. Risk Managed Fund –
Series S Units
Total Portfolio (99.4%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF Elements Global Portfolio Class (the
“Portfolio”).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
121
AGF Elements Global Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Portfolio’s investment objective is to provide superior long-term
returns by investing primarily in equity mutual funds from around the
globe.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Portfolio’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Sector
March 31, 2017
(%)
Equity Funds
Balanced Funds
81.5
17.9
September 30, 2016
(%)
Equity Funds
Balanced Funds
81.2
17.9
Interest in Unconsolidated Structured Entities (Note 2)
The Portfolio’s investment details in the underlying funds as at March 31,
2017 and September 30, 2016 are included in the following tables:
March 31, 2017
AGF Asian Growth Fund
AGF Global Resources Fund
AGF U.S. Risk Managed Fund
AGF American Growth Fund
AGF European Equity Fund
AGF Tactical Fund
AGF EAFE Equity Fund
AGF Global Equity Fund
AGF Canadian Small Cap Fund
AGF Emerging Markets Fund
AGF Global Dividend Fund
AGF Canadian Stock Fund
September 30, 2016
AGF Asian Growth Fund
AGF Global Resources Fund
AGF American Growth Fund
AGF U.S. Risk Managed Fund
AGF European Equity Fund
AGF Tactical Fund
AGF EAFE Equity Fund
AGF Global Equity Fund
AGF Canadian Small Cap Fund
AGF Global Dividend Fund
AGF Emerging Markets Fund
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
251
381
1,388
1,903
630
2,272
377
3,018
255
499
1,254
380
12.7
1.4
1.2
1.1
1.0
0.8
0.6
0.3
0.1
0.1
0.1
0.0
Fair Value of
Portfolio’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
107
223
1,862
1,736
542
1,962
322
2,715
218
1,082
108
33.9
3.1
1.1
1.0
0.9
0.7
0.5
0.3
0.1
0.0
0.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Other Price Risk
The Schedule of Investment Portfolio of the Portfolio classifies securities
by asset type.
122
The impact on Net Assets of the Portfolio due to a 40 percent change in
benchmarks (September 30, 2016 – 50 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Portfolio’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Portfolio is less than three years, in which case since
inception data has been used. The returns of the other series of the
Portfolio are substantially similar to that of the Mutual Fund Shares,
save for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
March 31,
2017
September 30,
2016
4,556
2,049
5,022
2,651
MSCI All Country World Index
S&P/TSX Composite Index
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The Portfolio is indirectly exposed to credit, interest rate and currency
risks, as applicable, of the underlying funds as at March 31, 2017 and
September 30, 2016.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Portfolio’s
financial instruments within the fair value hierarchy as at March 31,
2017 and September 30, 2016.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
12,608
12,608
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
12,608
12,608
–
–
Level 1
Level 2
Level 3
Total
–
–
–
10,877
10,877
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
10,877
10,877
–
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Portfolio did not hold financial instruments within level 3 of the fair
value hierarchy.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Elements Growth Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Cash and cash equivalents
Receivable for shares issued
Receivable for investments sold
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
24,460
118
207
38
–
23
–
23
24,869
September 30,
2016
$
21,194
139
1
52
–
17
–
23
21,426
$
$
–
9
49
30
8
228
–
324
24,545
22,625
$
$
–
7
27
42
9
–
–
85
21,341
19,898
$
$
$
$
$
$
$
$
$
17,381
3
2,186
–
1,645
–
1,835
250
1,245
$
$
$
$
$
$
$
$
$
16,106
3
2,107
–
472
–
1,717
248
688
$
$
$
$
$
$
$
$
$
29.25
29.24
31.87
–
11.57
–
14.48
18.44
11.54
$
$
$
$
$
$
$
$
$
27.57
27.52
29.86
–
10.77
–
14.22
17.83
10.75
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
123
AGF Elements Growth Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
124
2017
$
837
–
255
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
539
1,631
1,631
1,492
–
180
(1,387)
285
285
195
188
28
6
11
–
–
14
–
–
1
–
23
278
46
11
6
8
–
12
–
–
1
–
27
299
(34)
244
(66)
233
$
1,387
$
52
$
$
$
$
$
$
$
$
$
1,003
0
127
–
56
–
104
14
83
$
$
$
$
$
$
$
$
$
38
0
20
–
(1)
–
(6)
1
–
$
$
$
$
$
$
$
$
$
1.69
1.72
1.97
–
0.82
–
0.85
1.06
0.87
$
$
$
$
$
$
$
$
$
0.07
0.05
0.36
–
(0.01)
–
(0.05)
0.05
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Net realized (gain) loss on investments
Net change in unrealized (appreciation)
depreciation in value of investments
Purchases of investments
Proceeds from sale of investments
Non-cash distributions from underlying funds
reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares, net
of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
(Note 9)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 9)
Net Cash Generated (Used) by Financing Activities
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
SEMI-ANNUAL REPORT 2017
$
52
(255)
(180)
(539)
(5,392)
3,993
1,387
(3,389)
2,978
(831)
–
(1,489)
–
(6)
–
(3)
–
–
–
–
–
–
–
2
22
(1,619)
1
(18)
(661)
(53)
(67)
4,195
2,908
(2,544)
1,598
(2,169)
672
$
(21)
139
118
$
11
151
162
$
$
$
–
–
–
$
$
$
–
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
1,387
2016
AGF Elements Growth Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
16,106
3
2,107
–
472
–
1,717
248
688
21,341
1,003
0
127
–
56
–
104
14
83
1,387
2016
$
15,019
3
1,611
–
232
–
1,867
325
–
19,057
38
0
20
–
(1)
–
(6)
1
–
52
1,602
–
106
–
742
–
337
12
209
3,008
2,297
–
18
–
–
–
318
19
–
2,652
1,041
–
164
–
403
–
69
–
367
2,044
245
–
–
–
222
–
–
8
–
475
–
–
–
–
–
–
24
3
–
27
–
–
–
–
–
–
17
5
–
22
(1,521)
–
(53)
–
(7)
–
(326)
(21)
(17)
(1,945)
(1,473)
–
(16)
–
(3)
–
(418)
–
–
(1,910)
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(850)
–
(265)
–
(21)
–
(17)
–
(85)
(1,238)
2016
$
(355)
–
(111)
–
–
–
–
–
–
(466)
1,896
773
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(73)
(6)
–
(79)
–
–
–
–
–
–
(79)
(9)
–
(88)
3,204
737
17,381
3
2,186
–
1,645
–
1,835
250
1,245
15,771
3
1,522
–
450
–
1,699
349
–
24,545
$
19,794
125
AGF Elements Growth Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
3,446,481
3,670,905
2,509,986
2,690,415
471,379
487,277
606,565
738,930
1,468,491
1,470,656
1,179,971
1,223,902
479,157
488,578
437,108
486,481
1,244,371
1,230,447
1,744,756
1,950,479
2,921,958
3,656,803
748,565
737,113
1,700,140
15,512,447
1,953,645
17,114,726
479,848
488,939
496,948
490,763
1,476,104
1,470,465
486,528
489,600
726,578
3,666,006
734,856
3,674,623
22,624,934
24,460,254
Balanced Fund (15.0%)
340,845 AGF Tactical Fund –
Series S Units
Equity Funds (69.7%)
88,851 AGF American Growth Fund –
Series S Units
35,803 AGF Asian Growth Fund –
Series S Units
66,690 AGF Canadian Small Cap Fund –
Series S Units
29,885 AGF Canadian Stock Fund –
Series S Units
82,362 AGF Dividend Income Fund –
Series S Units
60,844 AGF EAFE Equity Fund –
Series S Units
34,308 AGF Emerging Markets Fund –
Series S Units
124,918 AGF European Equity Fund –
Series S Units
68,727 AGF Global Dividend Fund –
Series S Units
99,885 AGF Global Equity Fund –
Series S Units
85,413 AGF Global Resources Fund –
Series S Units
70,224 AGF U.S. Risk Managed Fund –
Series S Units
Fixed Income Funds (15.0%)
47,286 AGF Emerging Markets Bond
Fund – Series S Units
40,492 AGF Fixed Income Plus Fund –
Series S Units
128,537 AGF Global Bond Fund –
Series S Units
86,809 AGF High Yield Bond Fund –
Series S Units
218,707 AGF Total Return Bond Fund –
Series S Units
Total Portfolio (99.7%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF Elements Growth Portfolio Class (the
“Portfolio”).
126
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Elements Growth Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Portfolio’s investment objective is to provide superior long-term
returns by investing primarily in equity mutual funds diversified with
income and/or bond mutual fund holdings.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Portfolio’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Sector
March 31, 2017
(%)
Equity Funds
Fixed Income Funds
Balanced Funds
69.7
15.0
15.0
September 30, 2016
(%)
Equity Funds
Fixed Income Funds
Balanced Funds
67.6
16.8
14.9
Interest in Unconsolidated Structured Entities (Note 2)
The Portfolio’s investment details in the underlying funds as at
March 31, 2017 and September 30, 2016 are included in the following
tables:
March 31, 2017
AGF Asian Growth Fund
AGF Global Resources Fund
AGF European Equity Fund
AGF U.S. Risk Managed Fund
AGF American Growth Fund
AGF Tactical Fund
AGF EAFE Equity Fund
AGF Global Equity Fund
AGF Canadian Small Cap Fund
AGF Emerging Markets Bond Fund
AGF Global Bond Fund
AGF Canadian Stock Fund
AGF Dividend Income Fund
AGF High Yield Bond Fund
AGF Total Return Bond Fund
AGF Global Dividend Fund
AGF Emerging Markets Fund
AGF Fixed Income Plus Fund
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
487
737
1,230
1,954
2,690
3,671
489
3,657
739
489
1,470
1,471
1,224
490
735
1,950
486
491
24.7
2.7
1.9
1.7
1.5
1.3
0.7
0.4
0.4
0.3
0.2
0.2
0.2
0.1
0.1
0.1
0.1
0.0
September 30, 2016
AGF Asian Growth Fund
AGF Global Resources Fund
AGF European Equity Fund
AGF American Growth Fund
AGF U.S. Risk Managed Fund
AGF Tactical Fund
AGF EAFE Equity Fund
AGF Emerging Markets Bond Fund
AGF Global Equity Fund
AGF Canadian Small Cap Fund
AGF Global Bond Fund
AGF High Yield Bond Fund
AGF Total Return Bond Fund
AGF Dividend Income Fund
AGF Canadian Stock Fund
AGF Global Dividend Fund
AGF Emerging Markets Fund
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
209
213
1,056
2,776
2,755
3,185
419
843
3,182
424
1,268
635
844
636
638
1,691
420
66.0
3.0
1.8
1.6
1.6
1.2
0.7
0.5
0.4
0.2
0.2
0.2
0.1
0.1
0.1
0.1
0.1
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Other Price Risk
The Schedule of Investment Portfolio of the Portfolio classifies securities
by asset type.
The impact on Net Assets of the Portfolio due to a 20 percent change in
benchmarks (September 30, 2016 – 25 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Portfolio’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Portfolio is less than three years, in which case since
inception data has been used. The returns of the other series of the
Portfolio are substantially similar to that of the Mutual Fund Shares,
save for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
MSCI All Country World Index
Bloomberg Barclays Global Aggregate Index
Blended Benchmark
March 31,
2017
September 30,
2016
3,811
2,067
4,663
4,197
2,191
5,141
The Blended Benchmark is composed of 72% MSCI All Country World
Index, 20% Bloomberg Barclays Global Aggregate Index and 8%
S&P/TSX Composite Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The Portfolio is indirectly exposed to credit, interest rate and currency
risks, as applicable, of the underlying funds as at March 31, 2017 and
September 30, 2016.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
127
AGF Elements Growth Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Portfolio’s
financial instruments within the fair value hierarchy as at March 31,
2017 and September 30, 2016.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
24,460
24,460
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
24,460
24,460
–
–
Level 1
Level 2
Level 3
Total
–
–
–
21,194
21,194
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
21,194
21,194
–
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Portfolio did not hold financial instruments within level 3 of the fair
value hierarchy.
128
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Elements Yield Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Cash and cash equivalents
Receivable for shares issued
Receivable for investments sold
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
$
Liabilities
Current Liabilities
Bank overdraft
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for shares redeemed
Payable for dividends and distributions
Payable for investments purchased
Taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Shares (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable Shares per Share (Note 6)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
98,038
2,400
3,020
–
–
379
–
–
103,837
September 30,
2016
$
37,354
1,005
1,376
–
–
129
–
–
39,864
$
$
–
17
40
444
17
3,010
–
3,528
100,309
96,563
$
$
–
6
13
56
7
810
–
892
38,972
36,790
$
$
$
$
$
$
$
$
$
35,634
–
11,135
–
26,959
–
–
5,745
20,836
$
$
$
$
$
$
$
$
$
15,103
–
4,776
–
8,904
–
–
2,510
7,679
$
$
$
$
$
$
$
$
$
10.64
–
10.74
–
10.86
–
–
10.17
10.84
$
$
$
$
$
$
$
$
$
10.47
–
10.50
–
10.57
–
–
10.25
10.56
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
129
AGF Elements Yield Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS EXCEPT PER SHARE AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Shareholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Directors’ fees and expenses
Interest
Independent review committee fees
Income taxes (Note 5)
Harmonized sales tax and other taxes
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Shares from Operations
per Share (Note 2)
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
130
2017
$
1,575
6
43
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
–
–
911
2,535
2,535
–
–
–
281
–
31
9
9
1
–
13
–
–
1
–
40
385
–
–
–
–
–
–
–
–
–
–
–
–
(50)
335
–
–
$
2,200
$
–
$
$
$
$
$
$
$
$
$
702
–
237
–
688
–
–
99
474
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations $
Adjustments for:
Net realized (gain) loss on investments
Net change in unrealized (appreciation)
depreciation in value of investments
Purchases of investments
Proceeds from sale of investments
Non-cash distributions from underlying
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
Net change in taxes recoverable/payable
(Increase) decrease in refundable capital gains
and dividend taxes
(Increase) decrease in accrued interest for
short-term investments
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Dividends and distributions of capital paid to
holders of redeemable shares,
net of reinvestments
Proceeds from redeemable shares issued and
redeemable shares converted into the Class
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class
Net Cash Generated (Used) by Financing Activities
2,200
0.28
–
0.32
–
0.41
–
–
0.27
0.38
$
$
$
$
$
$
$
$
$
(911)
(61,054)
4,850
–
–
–
(1,326)
–
–
–
(250)
–
–
–
–
–
–
–
11
27
(56,496)
–
–
–
(57)
–
64,024
–
(6,076)
57,891
–
–
$
–
–
–
$
$
$
–
–
–
$
1,395
1,005
2,400
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
$
$
$
5
–
–
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
–
–
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
–
–
–
–
–
–
–
–
–
$
(43)
* Included as part of Cash Flows from Operating Activities
$
$
$
$
$
$
$
$
$
2016
AGF Elements Yield Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Mutual Fund Shares
$
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Redeemable share transactions (Note 6):
Proceeds from redeemable shares issued
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Proceeds from redeemable shares converted
into the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Reinvestment of dividends and distributions to
holders of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Payments on redemption of redeemable shares
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
15,103
–
4,776
–
8,904
–
–
2,510
7,679
38,972
2016
$
–
–
–
–
–
–
–
–
–
–
702
–
237
–
688
–
–
99
474
2,200
–
–
–
–
–
–
–
–
–
–
21,166
–
6,391
–
18,057
–
–
3,222
13,678
62,514
–
–
–
–
–
–
–
–
–
–
2,052
–
1,186
–
1,636
–
–
69
649
5,592
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
32
–
32
–
–
–
–
–
–
–
–
–
–
(2,240)
–
(623)
–
(1,471)
–
–
(73)
(1,437)
(5,844)
–
–
–
–
–
–
–
–
–
–
For the periods ended March 31,
Value of redeemable shares converted out of
the Class
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
2017
$
Net increase (decrease) from redeemable
share transactions
Dividends to holders of redeemable shares
(Note 5):
Ordinary dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Capital gains dividends
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Distribution of capital (Note 5):
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Increase (decrease) in net assets attributable to
holders of redeemable shares for the period
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
Mutual Fund Shares
Series D Shares
Series F Shares
Series O Shares
Series Q Shares
Series S Shares
Series T Shares
Series V Shares
Series W Shares
Net Assets Attributable to Holders of Redeemable
Shares at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(1,149)
–
(832)
–
(855)
–
–
(15)
(207)
(3,058)
2016
$
–
–
–
–
–
–
–
–
–
–
59,236
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(99)
–
(99)
–
–
–
–
–
–
–
–
–
–
61,337
–
35,634
–
11,135
–
26,959
–
–
5,745
20,836
–
–
–
–
–
–
–
–
–
100,309
$
–
131
AGF Elements Yield Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
12,230,345
12,747,331
15,720,911
27,951,256
16,599,284
29,346,615
5,777,254
5,873,855
14,880,539
14,741,142
20,873,052
20,611,500
6,727,953
6,863,647
20,352,713
68,611,511
20,601,347
68,691,491
96,562,767
98,038,106
Equity Funds (29.2%)
857,828 AGF Dividend Income Fund –
Series S Units
584,894 AGF Global Dividend Fund –
Series S Units
Fixed Income Funds (68.5%)
568,071 AGF Emerging Markets Bond
Fund – Series S Units
1,216,266 AGF Fixed Income Plus Fund –
Series S Units
1,801,699 AGF Global Bond Fund –
Series S Units
1,216,959 AGF High Yield Bond Fund –
Series S Units
6,131,372 AGF Total Return Bond Fund –
Series S Units
Total Portfolio (97.7%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
March 31, 2017 attributable to AGF Elements Yield Portfolio Class (the
“Portfolio”).
132
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Elements Yield Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Portfolio’s investment objective is to achieve high current income
by investing primarily in a diversified mix of income, bond and equity
funds that may include exposure to income trusts, royalty trusts and real
estate investment trusts.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Portfolio’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
March 31, 2017
(%)
Fixed Income Funds
Equity Funds
68.5
29.2
September 30, 2016
(%)
Fixed Income Funds
Equity Funds
67.0
28.9
Interest in Unconsolidated Structured Entities (Note 2)
The Portfolio’s investment details in the underlying funds as at
March 31, 2017 and September 30, 2016 are included in the following
tables:
AGF Emerging Markets Bond Fund
AGF Global Bond Fund
AGF Total Return Bond Fund
AGF Dividend Income Fund
AGF High Yield Bond Fund
AGF Fixed Income Plus Fund
AGF Global Dividend Fund
September 30, 2016
AGF Global Bond Fund
AGF Emerging Markets Bond Fund
AGF Total Return Bond Fund
AGF Dividend Income Fund
AGF High Yield Bond Fund
AGF Fixed Income Plus Fund
AGF Global Dividend Fund
Impact on Net Assets ($’000)
Benchmark
Portfolio by Sector
March 31, 2017
to the return of the Portfolio’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Portfolio is less than three years, in which case since
inception data has been used. The returns of the other series of the
Portfolio are substantially similar to that of the Mutual Fund Shares,
save for differences in expense structure.
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
5,874
20,612
20,601
12,747
6,864
14,741
16,599
3.9
3.4
3.1
1.6
1.6
1.1
0.7
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
7,479
2,240
8,213
4,500
2,245
5,938
6,739
1.4
1.3
1.2
0.7
0.6
0.4
0.3
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Other Price Risk
The Schedule of Investment Portfolio of the Portfolio classifies securities
by asset type.
The impact on Net Assets of the Portfolio due to a 15 percent change in
benchmarks (September 30, 2016 – 20 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
March 31,
2017
September 30,
2016
8,387
5,609
11,284
4,563
1,864
5,862
Bloomberg Barclays Global Aggregate Index
MSCI All Country World Index
Blended Benchmark
The Blended Benchmark is composed of 60% Bloomberg Barclays Global
Aggregate Index, 15% FTSE TMX Canada Universe Bond Index, 15%
MSCI All Country World Index and 10% S&P/TSX Composite Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The Portfolio is indirectly exposed to credit, interest rate and currency
risks, as applicable, of the underlying funds as at March 31, 2017 and
September 30, 2016.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Portfolio’s
financial instruments within the fair value hierarchy as at March 31,
2017 and September 30, 2016.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
98,038
98,038
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
98,038
98,038
–
–
Level 1
Level 2
Level 3
Total
–
–
–
37,354
37,354
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
37,354
37,354
–
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Portfolio did not hold financial instruments within level 3 of the fair
value hierarchy.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
133
AGF American Growth Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
134
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
169,246
–
5,068
–
64
–
–
–
50
–
174,428
September 30,
2016
$
170,061
–
2,895
–
39
29
–
–
57
–
173,081
$
$
–
–
–
–
–
–
54
–
–
–
–
54
174,374
126,661
$
$
–
–
–
–
–
6
84
–
29
–
–
119
172,962
138,396
$
$
$
$
$
$
$
$
$
–
–
–
–
–
174,374
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
172,962
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
30.28
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
30.31
–
–
–
AGF American Growth Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
668
–
2
8,662
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
10,920
20,252
–
901
–
7
22,122
(21,090)
1,940
–
–
–
5
–
–
4
88
20,345
(269)
1,675
860
1,094
22
6
11
8
–
9
–
1
118
93
37
11
7
10
–
8
1
1
150
134
55
1,183
80
1,533
(1,034)
149
(1,318)
215
$
20,196
$
1,460
$
$
$
$
$
$
$
$
$
–
–
–
–
–
20,196
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
1,460
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
3.52
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
0.20
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued
Amounts paid on redemption of redeemable units
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
20,196
2016
$
39
1,460
495
(8,662)
(22,122)
(10,920)
(48,581)
21,090
(83,501)
68,978
97,279
–
–
–
–
7
7
–
–
–
–
–
(6)
21,051
–
7
14,715
–
7,412
(26,251)
(18,839)
–
17,305
(31,241)
(13,936)
(39)
(495)
$
2,212
2,895
5,068
$
779
15,028
15,312
$
2
$
6
$
582
$
847
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
135
AGF American Growth Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
136
2017
–
–
–
–
–
172,962
–
–
–
172,962
2016
$
–
–
–
–
–
241,476
–
–
–
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
241,476
–
–
–
–
–
20,196
–
–
–
20,196
–
–
–
–
–
1,460
–
–
–
1,460
–
–
–
–
–
7,437
–
–
–
7,437
–
–
–
–
–
17,108
–
–
–
17,108
–
–
–
–
–
19,600
–
–
–
19,600
–
–
–
–
–
48,057
–
–
–
48,057
–
–
–
–
–
(26,221)
–
–
–
(26,221)
–
–
–
–
–
(31,155)
–
–
–
(31,155)
816
For the periods ended March 31,
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
34,010
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
–
–
–
–
–
(1,150)
–
–
–
(1,150)
2016
$
–
–
–
–
–
(18,450)
–
–
–
(18,450)
–
–
–
–
–
(45,615)
–
–
–
(45,615)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,412
(12,587)
–
–
–
–
–
174,374
–
–
–
174,374
–
–
–
–
–
(2,442)
–
–
–
(2,442)
–
–
–
–
–
228,889
–
–
–
$
228,889
AGF American Growth Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares
Average
Cost ($)
Fair
Value ($)
2,717,435
2,864,688
2,383,625
3,882,460
9,495,386
3,442,894
2,080,448
3,657,447
1,701,383
13,549,591
2,938,159
21,614,334
5,245,787
5,555,885
3,714,980
1,800,928
3,703,262
2,079,672
2,322,701
7,838,609
2,489,953
8,272,887
1,858,626
5,375,081
5,231,424
7,085,213
3,202,570
3,472,656
4,888,518
15,324,795
5,762,514
21,551,807
5,028,656
2,268,976
3,507,653
4,931,843
15,737,128
5,143,735
2,423,418
4,131,183
6,309,885
18,008,221
5,315,174
4,183,377
5,183,818
4,261,841
2,258,567
11,757,118
2,482,102
11,927,761
4,130,871
6,898,498
3,799,264
3,873,105
4,587,983
2,934,535
2,606,000
4,144,246
2,956,520
2,018,606
2,921,963
40,871,591
5,947,325
7,345,316
4,641,033
5,869,573
5,704,294
4,775,635
6,492,294
4,399,242
7,898,812
2,382,508
3,350,428
58,806,460
4,684,793
3,950,932
8,635,725
5,988,188
4,206,265
10,194,453
3,690,271
5,273,739
4,076,798
8,040,890
Consumer Discretionary (12.4%)
8,054
50,575
53,448
41,753
7,746
Amazon.com Inc.
Lennar Corporation ‘A’
LKQ Corporation
Ross Stores Inc.
Ulta Salon Cosmetics &
Fragrance Inc.
Consumer Staples (3.2%)
24,914 Costco Wholesale Corporation
Energy (4.8%)
21,698 Concho Resources Inc.
42,369 Newfield Exploration Company
10,054 Pioneer Natural
Resources Company
Financials (12.4%)
47,857 Primerica Inc.
69,864 Raymond James Financial Inc.
67,198 TD Ameritrade
Holding Corporation
106,180 The Charles
Schwab Corporation
Health Care (10.3%)
31,085
19,372
4,053
28,930
Celgene Corporation
Edwards Lifesciences Corporation
Intuitive Surgical Inc.
UnitedHealth Group Inc.
Industrials (6.8%)
42,269 Alaska Air Group Inc.
16,422 FedEx Corporation
30,673 Fortune Brands Home &
Security Inc.
Information Technology (33.7%)
34,367
6,515
49,036
113,463
19,590
133,004
34,368
44,837
54,527
30,417
39,292
Adobe Systems Inc.
Alphabet Inc. ‘A’
Amphenol Corporation ‘A’
Applied Materials Inc.
Broadcom Limited
Corning Inc.
Facebook Inc. ‘A’
Microchip Technology Inc.
NVIDIA Corporation
Paychex Inc.
Vantiv Inc. ‘A’
Materials (5.9%)
42,625 Albemarle Corporation
26,253 Vulcan Materials Company
Real Estate (3.0%)
9,905 Equinix Inc.
Telecommunication Services (4.6%)
93,613 T-Mobile US Inc.
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (97.1%)
(66,659)
126,660,754
–
169,246,437
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF American Growth Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
137
AGF American Growth Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term capital growth
by investing primarily in equity securities of established U.S. companies.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
United States
97.1
September 30, 2016
(%)
United States
98.3
Portfolio by Sector
March 31, 2017
(%)
Information Technology
Consumer Discretionary
Financials
Health Care
Industrials
Materials
Energy
Telecommunication Services
Consumer Staples
Real Estate
33.7
12.4
12.4
10.3
6.8
5.9
4.8
4.6
3.2
3.0
September 30, 2016
(%)
Information Technology
Consumer Discretionary
Health Care
Financials
Real Estate
Industrials
Energy
Materials
Consumer Staples
Telecommunication Services
32.2
16.7
10.6
7.3
6.4
5.9
5.7
5.3
4.4
3.8
Portfolio by Asset Mix
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives.
Accordingly, the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 60 percent change in
benchmark (September 30, 2016 – 75 percent), using historical
correlation between the return of the Series S Units as compared to the
return of the Fund’s benchmark, as at March 31, 2017 and September 30,
2016, with all other variables held constant, is included in the following
table. Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used.
Impact on Net Assets ($’000)
Benchmark
March 31,
2017
September 30,
2016
123,918
166,259
S&P 500 Net Return Index
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
March 31, 2017
(%)
United States Equity
97.1
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
September 30, 2016
(%)
March 31, 2017
United States Equity
98.3
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
($’000)
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
173,996
–
173,996
99.8
** Includes both monetary and non-monetary instruments, as applicable
138
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF American Growth Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
($’000)
United States Dollar
SECURITIES LENDING TRANSACTIONS (Note 2)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
172,698
– 172,698
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
99.8
** Includes both monetary and non-monetary instruments, as applicable
($’000)
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $3,480,000 (September 30,
2016 – $3,454,000).
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Net Securities Lending Income
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
169,246
–
–
–
169,246
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
169,246
–
–
–
169,246
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
170,061
–
–
–
170,061
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
170,061
–
–
–
170,061
–
–
% of Gross
Income
($’000)
% of Gross
Income
7
–
(0)
100.0
–
(0.0)
6
–
(0)
100.0
–
(0.0)
(2)
(29.5)
(2)
(30.0)
5
70.5
4
70.0
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
March 31, 2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
March 31,
2017
September 30,
2016
18,179
–
19,139
9,858
–
10,365
September 30, 2016
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
139
AGF Asian Growth Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Taxes payable
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
140
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
1,929
–
27
–
6
8
–
147
5
–
2,122
September 30,
2016
$
312
–
–
–
–
7
–
149
–
–
468
$
$
–
–
–
–
–
1
4
–
–
–
–
147
152
1,970
1,752
$
$
–
–
–
–
–
1
1
–
–
–
–
149
151
317
249
$
$
$
$
$
$
$
$
$
–
–
–
–
–
1,970
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
317
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
13.61
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
13.04
–
–
–
AGF Asian Growth Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
10
–
–
(4)
2016
$
114
120
–
1
–
–
5
(2)
4
–
–
–
0
–
–
0
8
128
$
STATEMENTS OF CASH FLOWS (UNAUDITED)
(1)
3
8
1
22
6
7
5
–
8
–
1
6
1
35
11
7
5
–
8
–
1
7
–
5
69
1
76
(56)
13
(74)
2
115
$
1
$
$
$
$
$
$
$
$
$
–
–
–
–
–
115
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
1
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
0.86
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
0.03
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Increase (decrease) in taxes payable
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued
Amounts paid on redemption of redeemable units
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
115
2016
$
1
–
–
4
(5)
(114)
(1,924)
2
(137)
416
118
–
2
–
–
(5)
(1)
–
–
–
–
–
–
(2)
(1,508)
–
5
–
(17)
–
1,711
(176)
1,535
–
61
(49)
12
–
–
$
27
–
27
$
(5)
13
8
$
–
$
–
$
4
$
1
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
141
AGF Asian Growth Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
142
2017
–
–
–
–
–
317
–
–
–
317
2016
$
–
–
–
–
–
295
–
–
–
–
–
–
–
–
1
–
–
–
1
–
–
–
–
–
1,717
–
–
–
1,717
–
–
–
–
–
62
–
–
–
62
–
–
–
–
–
2
–
–
–
2
–
–
–
–
–
11
–
–
–
11
1,540
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
295
–
–
–
–
–
115
–
–
–
115
–
–
–
–
–
(179)
–
–
–
(179)
For the periods ended March 31,
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
–
–
–
–
–
(51)
–
–
–
(51)
22
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
–
–
–
–
–
(2)
–
–
–
(2)
2016
$
–
–
–
–
–
(11)
–
–
–
(11)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,653
12
–
–
–
–
–
1,970
–
–
–
–
–
–
–
–
307
–
–
–
1,970
$
307
AGF Asian Growth Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Average
Cost ($)
No. of Shares
Fair
Value ($)
China (37.7%)
No. of Shares
Average
Cost ($)
Fair
Value ($)
20,589
21,792
33,378
19,288
24,402
41,526
116,719
159,230
35,904
13,980
308,491
38,791
14,805
371,379
19,855
21,015
21,202
26,297
35,869
39,445
30,166
31,907
105,262
212,354
124,252
242,916
27,386
28,348
24,332
26,928
21,375
23,550
69,257
21,204
21,667
69,799
20,272
23,245
South Korea (continued)
700 Alibaba Group Holding
Limited ADR
120 Baidu Inc. ADR
86,000 Bank of China Limited ‘H’
60,000 China Construction Bank
Corporation ‘H’
9,000 China Mengniu Dairy
Company Limited
4,000 China Mobile Limited
6,000 China Pacific Insurance Group
Company Limited ‘H’
28,000 China Petroleum & Chemical
Corporation ‘H’
8,888 China Resources Land Limited
10,000 China State Construction
International
Holdings Limited
18,000 CNOOC Limited
550 Ctrip.com International
Limited ADR
8,000 Haitong Securities
Company Limited
7,000 Ping An Insurance (Group)
Company of China
Limited ‘H’
3,500 Tencent Holdings Limited
150,000 West China Cement Limited
100,378
27,531
56,805
56,867
64,170
23,729
61,666
24,795
58,215
29,652
28,799
29,224
28,057
30,185
31,939
22,616
29,629
23,785
28,584
33,732
35,949
19,444
17,988
46,140
114,872
26,771
691,239
52,106
133,438
29,005
743,672
56,334
58,694
27,934
26,874
19,126
27,716
20,082
27,105
United States (1.2%)
22,586
27,413
Commissions and other portfolio
transaction costs (Note 2)
21,972
21,972
24,962
26,177
226,807
24,128
25,326
231,594
35,193
40,012
30,893
20,907
51,800
33,033
18,812
51,845
24,974
28,818
18,478
19,394
25,397
27,721
24,466
28,368
22,040
90,381
22,360
97,843
24,617
22,629
18,883
22,880
25,285
25,172
Hong Kong (11.8%)
7,000 AIA Group Limited
3,000 Cheung Kong Property
Holdings Limited
600 Hong Kong Exchanges and
Clearing Limited
4,400 Sands China Limited
30,000 SITC International Holdings
Company Limited
10,000 Stella International
Holdings Limited
20,000 Universal Medical Financial &
Technical Advisory Services
Company Limited
20,000 Value Partners Group Limited
20 LG Household & Health
Care Limited
24 NAVER Corporation
120 POSCO
65 Samsung Electronics Company
Limited
700 Shinhan Financial Group
Company Limited
500 Wonik IPS Company Limited
88,491
28,273
52,076
Taiwan (12.3%)
12,374 Advanced Semiconductor
Engineering Inc.
2,000 Catcher Technology
Company Limited
48,000 CTBC Financial Holding
Company Limited
8,000 Hon Hai Precision Industry
Company Limited
15,000 Taiwan Semiconductor
Manufacturing
Company Limited
Thailand (1.4%)
10,000 PTT Global Chemical
PCL NVDR
The Philippines (3.5%)
500 Globe Telecom Inc.
10,000 Metropolitan Bank &
Trust Company
5,000 Universal Robina Corporation
4,800 Samsonite International SA
Total Portfolio (97.9%)
India (2.0%)
400 HDFC Bank Limited ADR
Indonesia (2.6%)
20,000 PT Bank Central Asia Tbk
100,000 PT Bumi Serpong Damai Tbk
(5,746)
1,752,408
–
1,929,471
ADR – American Depository Receipt
NVDR – Non-voting Depository Receipt
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Asian Growth Fund (the “Fund”).
Malaysia (1.5%)
10,000 Genting Berhad
Singapore (5.0%)
2,000 City Developments Limited
3,000 Oversea-Chinese Banking
Corporation Limited
8,000 Singapore Technologies
Engineering Limited
6,000 Singapore Telecommunications
Limited
South Korea (18.9%)
80 Hyundai Mobis
Company Limited
135 Hyundai Motor Company
72 LG Chem Limited
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
143
AGF Asian Growth Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term capital growth
by investing primarily in shares of companies that are located or active
mainly in Asia or the Pacific Rim Region and are principally traded on
Asian stock exchanges.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
China
South Korea
Taiwan
Hong Kong
Singapore
The Philippines
Indonesia
India
Malaysia
Thailand
United States
37.7
18.9
12.3
11.8
5.0
3.5
2.6
2.0
1.5
1.4
1.2
September 30, 2016
(%)
China
South Korea
Hong Kong
Taiwan
Singapore
Indonesia
India
Malaysia
The Philippines
Thailand
35.2
18.5
13.1
12.7
5.2
3.9
3.0
2.9
2.2
1.8
Portfolio by Sector
March 31, 2017
(%)
Information Technology
Financials
Consumer Discretionary
Materials
Telecommunication Services
Real Estate
Industrials
Consumer Staples
Energy
Health Care
33.7
26.6
9.4
6.3
5.5
4.9
4.0
3.3
3.0
1.2
September 30, 2016
(%)
Information Technology
Financials
Consumer Staples
Materials
Real Estate
Industrials
Telecommunication Services
Utilities
Energy
Consumer Discretionary
31.9
31.9
5.8
5.8
5.3
5.0
4.9
2.9
2.6
2.4
144
Portfolio by Asset Mix
March 31, 2017
(%)
International Equity
United States Equity
96.7
1.2
September 30, 2016
(%)
International Equity
98.5
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives.
Accordingly, the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The impact on Net Assets of the Fund due to a 45 percent change in
benchmarks (September 30, 2016 – 55 percent), using historical
correlation between the return of the Series S Units as compared to the
return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used.
Impact on Net Assets ($’000)
Benchmark
MSCI Pacific Free ex-Japan Index
MSCI All Country Far East ex-Japan Index
March 31,
2017
September 30,
2016
680
889
112
159
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Asian Growth Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
March 31, 2017
($’000)
Hong Kong Dollar
South Korean Won
New Taiwanese Dollar
United States Dollar
Singapore Dollar
Philippine Peso
Indonesian Rupiah
Malaysian Ringgit
Thai Baht
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
835
371
243
237
98
70
52
29
28
–
–
–
–
–
–
–
–
–
835
371
243
237
98
70
52
29
28
42.4
18.8
12.3
12.0
5.0
3.6
2.6
1.5
1.4
September 30, 2016
($’000)
Hong Kong Dollar
South Korean Won
United States Dollar
New Taiwanese Dollar
Singapore Dollar
Indonesian Rupiah
Malaysian Ringgit
Philippine Peso
Thai Baht
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
123
59
45
41
16
13
9
7
6
–
–
–
–
–
–
–
–
–
123
59
45
41
16
13
9
7
6
38.8
18.6
14.2
12.9
5.1
4.1
2.8
2.2
1.9
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $39,000 (September 30,
2016 – $6,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
1,929
–
–
–
1,929
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,929
–
–
–
1,929
–
–
Level 1
Level 2
Level 3
Total
312
–
–
–
312
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
312
–
–
–
312
–
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the Fund
did not hold financial instruments within level 3 of the fair value hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
% of Gross
($’000)
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
March 31, 2016
($’000)
% of Gross
Income
0
–
(0)
100.0
–
(3.2)
0
–
–
100.0
–
–
(0)
(24.9)
(0)
(29.6)
0
71.9
(0)
70.4
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
142
–
149
14
–
15
145
AGF Canadian Asset Allocation Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
146
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
486,211
207
11,303
–
202
1,704
–
–
1,683
–
501,310
September 30,
2016
$
542,434
38
5,724
–
282
4,114
–
–
1,969
–
554,561
$
$
–
–
11
–
233
476
1,082
87
1,393
–
–
3,282
498,028
449,373
$
$
–
–
45
–
213
333
1,128
173
4,438
–
–
6,330
548,231
503,121
$
$
$
$
$
$
$
$
$
457,958
888
11,506
10,208
–
–
14,591
2,877
–
$
$
$
$
$
$
$
$
$
492,667
947
9,148
28,349
–
–
14,160
2,960
–
$
$
$
$
$
$
$
$
$
25.26
25.34
25.54
27.63
–
–
7.98
11.61
–
$
$
$
$
$
$
$
$
$
25.39
25.54
25.99
28.25
–
–
8.08
11.57
–
AGF Canadian Asset Allocation Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
3,106
1,464
3,005
17,140
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
2,964
1,440
3,794
1,709
(2,475)
22,240
(626)
7,546
17,453
1,329
203
(423)
11
88
1,417
10
(221)
21,607
(582)
18,298
5,500
6,289
418
12
11
29
–
26
12
1
642
32
509
29
7
33
–
23
11
1
739
55
252
6,935
172
7,868
(5)
6,930
(187)
7,681
$
14,677
$
10,617
$
$
$
$
$
$
$
$
$
13,446
26
385
329
–
–
407
84
–
$
$
$
$
$
$
$
$
$
9,249
18
190
865
–
–
234
61
–
$
$
$
$
$
$
$
$
$
0.71
0.73
0.96
0.63
–
–
0.23
0.33
–
$
$
$
$
$
$
$
$
$
0.43
0.43
0.63
0.83
–
–
0.15
0.19
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
14,677
2016
$
–
10,617
222
(16,514)
(3,038)
2,272
(199,116)
(7,634)
(212,412)
270,207
289,337
(1,464)
–
1,440
–
286
533
–
–
–
–
20
143
70,511
11
(200)
78,876
(887)
16,711
(2,606)
16,263
(80,756)
(64,932)
(87,222)
(73,565)
–
(222)
$
5,579
5,724
11,303
$
5,311
13,976
19,065
$
3,306
$
4,284
$
3,060
$
2,953
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
147
AGF Canadian Asset Allocation Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
148
2017
492,667
947
9,148
28,349
–
–
14,160
2,960
–
548,231
2016
$
569,679
1,071
7,185
29,819
–
–
13,661
3,939
–
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
625,354
13,446
26
385
329
–
–
407
84
–
14,677
9,249
18
190
865
–
–
234
61
–
10,617
14,593
5
3,371
86
–
–
1,461
283
–
19,799
14,189
14
2,385
569
–
–
1,440
169
–
18,766
15,574
32
417
656
–
–
310
30
–
17,019
64,231
124
874
4,437
–
–
690
259
–
70,615
(62,362)
(90)
(1,282)
(18,556)
–
–
(1,181)
(407)
–
(83,878)
(80,606)
(138)
(1,467)
(3,589)
–
–
(2,587)
(841)
–
(89,228)
(47,060)
For the periods ended March 31,
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
153
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
–
–
–
–
–
–
–
–
–
–
2016
$
(15,960)
(32)
(533)
(656)
–
–
(280)
(45)
–
(17,506)
–
–
–
–
–
–
–
–
–
–
(66,079)
(125)
(1,093)
(4,437)
–
–
(961)
(319)
–
(73,014)
–
–
–
–
–
–
(286)
(28)
–
(314)
–
–
–
–
–
–
–
–
–
–
(50,203)
(62,244)
457,958
888
11,506
10,208
–
–
14,591
2,877
–
510,663
964
8,074
27,664
–
–
12,477
3,268
–
498,028
$
563,110
AGF Canadian Asset Allocation Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares/
Units
Average
Cost ($)
Fair
Value ($)
1,482,656
4,671,878
927,665
630,457
2,511,196
5,368,770
910,231
550,045
1,791,540
1,026,760
2,399,451
966,986
461,696
10,992,652
776,833
13,483,512
Consumer Discretionary (2.7%)
No. of Shares
Average
Cost ($)
Fair
Value ($)
1,329,423
1,359,859
598,231
908,292
640,757
1,092,679
1,140,189
1,298,715
5,274,850
633,042
1,668,313
5,394,650
1,404,771
2,406,827
1,370,488
2,816,596
11,670,694
1,106,045
14,230,255
1,126,837
600,187
947,166
1,750,834
2,445,599
22,332,123
656,192
1,067,490
1,849,369
2,625,059
25,742,286
1,089,582
1,833,798
984,454
1,018,163
1,210,613
4,541,528
839,666
1,120,186
1,960,121
1,094,821
764,086
3,390,300
531,242
1,572,363
1,942,591
1,226,983
1,551,780
1,508,333
5,089,826
1,262,561
1,716,393
2,390,944
1,163,071
2,088,310
4,297,706
629,915
1,398,645
770,975
22,548,180
1,699,586
885,785
29,026,147
1,483,282
1,235,560
3,000,904
1,455,629
1,285,597
1,186,189
3,994,318
1,043,304
1,364,631
1,583,129
3,816,211
1,415,526
1,165,724
1,704,379
4,264,000
1,112,089
1,289,050
15,973,833
1,368,586
17,794,275
1,009,762
1,394,439
5,769,803
4,354,620
1,350,730
5,833,830
4,580,294
2,125,816
170,610
11,645,763
175,889
12,715,829
2,635,182
2,781,787
Health Care (1.1%)
2,130
48,714
13,371
14,131
32,390
Amazon.com Inc.
Dollarama Inc.
Lennar Corporation
LKQ Corporation
Restaurant Brands
International Inc.
11,039 Ross Stores Inc.
2,048 Ulta Salon, Cosmetics &
Fragrance Inc.
Consumer Staples (1.8%)
123,394 Alimentation Couche-Tard
Inc. ‘B’
6,587 Costco Wholesale Corporation
6,754,009
1,390,026
8,144,035
7,413,511
1,468,918
8,882,429
9,935,979
982,059
8,449,880
1,565,806
1,723,427
10,732,131
979,151
8,953,767
1,660,029
1,912,795
491,868
2,323,131
549,847
2,544,076
3,861,055
3,225,632
613,725
2,164,373
2,811,164
2,497,808
10,601,051
1,852,716
2,999,735
52,873,777
658,523
2,105,370
2,662,642
2,445,629
11,690,895
1,650,052
2,798,474
54,569,013
65,709,681
76,011,242
15,387,111
81,096,792
14,681,823
90,693,065
4,601,593
5,628,336
6,434,681
1,114,488
6,926,297
1,375,617
9,480,093
3,373,316
10,080,148
3,791,656
5,668,482
771,952
5,909,421
1,383,146
8,218 Celgene Corporation
5,122 Edwards Lifesciences
Corporation
1,072 Intuitive Surgical Inc.
825 Teva Pharmaceutical Industries
Limited Convertible
Preferred 7.000%
7,649 UnitedHealth Group Inc.
Industrials (5.2%)
11,175 Alaska Air Group Inc.
138,612 CAE Inc.
144,970 Canadian National
Railway Company
4,342 FedEx Corporation
8,109 Fortune Brands Home &
Security Inc.
21,750 New Flyer Industries Inc.
59,561 TFI International Inc.
55,888 WSP Global Inc.
Energy (10.9%)
246,489 Canadian Natural
Resources Limited
5,737 Concho Resources Inc.
160,721 Enbridge Inc.
87,462 Enerflex Limited
68,241 Inter Pipeline Limited
11,202 Newfield Exploration
Company
132,435 Pason Systems Inc.
117,939 Peyto Exploration &
Development Corporation
2,659 Pioneer Natural
Resources Company
75,031 PrairieSky Royalty Limited
285,385 Raging River Exploration Inc.
249,554 Secure Energy Services Inc.
286,331 Suncor Energy Inc.
55,651 Tourmaline Oil Corporation
270,384 Whitecap Resources Inc.
Information Technology (5.8%)
9,086
1,723
12,964
29,997
5,180
79,878
35,163
9,086
32,236
11,854
14,416
95,082
8,042
55,779
Adobe Systems Inc.
Alphabet Inc. ‘A’
Amphenol Corporation ‘A’
Applied Materials Inc.
Broadcom Limited
CGI Group Inc. ‘A’
Corning Inc.
Facebook Inc. ‘A’
Kinaxis Inc.
Microchip Technology Inc.
NVIDIA Corporation
Open Text Corporation
Paychex Inc.
The Descartes Systems
Group Inc.
10,388 Vantiv Inc. ‘A’
Equity Funds (18.2%)
2,076,243 AGF Global Equity Fund –
Series S Units
1,701,254 AGF Global Resources
Fund – Series S Units
Materials (3.6%)
24,187
11,269
13,153
16,248
133,378
72,899
146,630
6,941
24,606
Financials (14.5%)
56,663 Bank of Montreal
60,402 Canadian Imperial Bank
of Commerce
46,742 Canadian Western Bank
427,306 Manulife Financial
Corporation
39,724 Onex Corporation
189,162 Power Corporation
of Canada
12,653 Primerica Inc.
18,471 Raymond James
Financial Inc.
122,274 Royal Bank of Canada
167,003 Sun Life Financial Inc.
17,766 TD Ameritrade
Holding Corporation
28,072 The Charles
Schwab Corporation
194,111 The Toronto-Dominion Bank
1,436,996
9,278,551
8,648,492
1,873,225
11,847,128
8,109,666
846,411
918,111
1,245,566
10,862,615
63,763,236
1,523,500
12,929,734
72,295,985
Agnico Eagle Mines Limited
Albemarle Corporation
CCL Industries Inc.
Franco-Nevada Corporation
HudBay Minerals Inc.
Intertape Polymer Group Inc.
Teck Resources Limited
Vulcan Materials Company
West Fraser Timber
Company Limited
Real Estate (0.3%)
2,619 Equinix Inc.
Telecommunication Services (2.5%)
99,080
106,099
24,749
1,250
BCE Inc.
TELUS Corporation
T-Mobile US Inc.
T-Mobile US Inc.
Convertible Preferred
5.500%
Utilities (0.6%)
63,122 Fortis Inc.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
149
AGF Canadian Asset Allocation Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Corporate Bonds (14.4%)
CAD
CAD
CAD
CAD
EUR
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
USD
CAD
USD
CAD
CAD
CAD
USD
CAD
CAD
CAD
USD
CAD
CAD
150
Face Value
Average
Cost ($)
Fair
Value ($)
687,717
688,379
490,045
518,145
1,521,412
1,626,177
280,895
259,487
1,626,542
1,662,434
407,075
388,981
806,992
831,473
1,088,136
1,145,904
492,065
495,188
756,673
746,102
1,233,696
1,244,244
147,713
146,293
854,535
881,417
498,154
508,003
767,580
758,015
450,000
477,225
718,960
709,752
790,629
790,314
799,450
796,762
457,070
476,668
1,668,480
1,687,941
1,574,701
1,588,990
800,570
821,859
1,173,208
1,174,020
721,352
764,656
802,544
811,905
Corporate Bonds (continued)
1,575,000 407 International Inc.
3.600% May 21, 2047
480,000 AGT Food and
Ingredients Inc.
5.875% December 21, 2021
875,000 Aimia Inc.
5.600% May 17, 2019
650,000 Algonquin Power Company
4.090% February 17, 2027
550,000 Allied Irish Banks PLC
7.375% December 29, 2049
690,000 Anheuser-Busch Inbev
Finance Inc.
3.375% January 25, 2023
1,075,000 Bank of America Corporation
Floating Rate
2.604% March 15, 2023
775,000 Bell Canada Inc.
2.900% August 12, 2026
450,000 Bell Canada Inc.
4.350% December 18, 2045
205,000 Boralex Inc.
Convertible Bonds
4.500% June 30, 2020
1,031,000 Brookfield Asset
Management Inc.
4.540% March 31, 2023
775,000 Brookfield Infrastructure
Finance ULC
3.452% March 11, 2022
800,000 Brookfield Renewable
Partners ULC
3.630% January 15, 2027
775,000 Bruce Power
Limited Partnership
3.969% June 23, 2026
265,000 CalAtlantic Group Inc.
Convertible Bonds
1.250% August 1, 2032
128,000 Cameco Corporation
3.750% November 14, 2022
650,000 Canadian Oil Sands Limited
4.500% Series 144A
April 1, 2022
600,000 Canadian Pacific
Railway Company
6.450% November 17, 2039
800,000 Canadian Western Bank
2.788% September 13, 2021
700,000 CDP Financial Inc.
4.600% July 15, 2020
550,000 Cenovus Energy Inc.
6.750% November 15, 2039
775,000 CI Financial Corporation
2.645% December 7, 2020
650,000 CIBC Capital Trust
Floating Rate
9.976% June 30, 2108
1,510,000 Citigroup Inc.
3.390% November 18, 2021
525,000 Citigroup Inc. Floating Rate
5.875% Series O
December 29, 2049
625,000 Cominar Real Estate
Investment Trust
4.247% May 23, 2023
3,925,000 CPPIB Capital Inc.
1.000% January 15, 2019
CAD
1,583,276
1,546,400
USD
481,800
489,600
935,035
902,342
CAD
649,538
678,062
USD
784,061
826,120
729,979
723,825
1,075,746
1,082,882
743,349
761,157
424,670
445,491
CAD
USD
CAD
CAD
CAD
224,085
244,893
CAD
1,034,533
1,132,009
CAD
774,116
800,470
802,544
811,013
799,681
817,681
USD
388,208
364,084
USD
129,989
130,511
826,769
868,068
CAD
767,496
791,837
CAD
800,000
812,512
CAD
799,673
769,269
608,267
834,171
775,000
786,751
821,847
758,599
1,568,275
1,583,276
USD
CAD
CAD
USD
CAD
CAD
CAD
CAD
694,142
722,171
USD
633,519
635,929
CAD
3,927,496
3,923,798
675,000 Crombie Real Estate
Investment Trust
3.962% June 1, 2021
297,000 Ctrip.com International
Limited Convertible Bonds
1.250% October 15, 2018
1,625,000 Enbridge Inc.
4.570% March 11, 2044
200,000 Ensco Jersey Finance Limited
Convertible Bonds
3.000% January 31, 2024
1,585,000 Fairfax Financial
Holdings Limited
4.700% December 16, 2026
300,000 Finisar Corporation
Convertible Bonds
0.500% December 15, 2036
775,000 First Capital Realty Inc.
4.323% Series S
July 31, 2025
1,050,000 FortisAlberta Inc.
4.270% September 22, 2045
475,000 Great Canadian
Gaming Corporation
6.625% July 25, 2022
555,000 Greater Toronto
Airports Authority
6.450% December 3, 2027
1,200,000 Heathrow Funding Limited
3.000% June 17, 2021
79,000 Hologic Inc. Convertible
Bonds 2.000% Series 2012
March 1, 2042
660,000 Intact Financial Corporation
6.400% November 23, 2039
400,000 Intesa Sanpaolo SpA
Floating Rate
7.700% December 29, 2049
600,000 Just Energy Group Inc.
Convertible Bonds
6.500% July 29, 2019
450,000 Just Energy Group Inc.
Convertible Bonds
6.750% December 31, 2021
675,000 Leisureworld Senior Care
Limited Partnership
3.474% February 3, 2021
700,000 Loblaw Companies Limited
4.860% September 12, 2023
700,000 Manulife Financial Capital
Trust II Floating Rate
7.405% December 31, 2108
250,000 Microchip Technology Inc.
Convertible Bonds
1.625% February 15, 2025
1,625,000 Morgan Stanley
3.125% August 5, 2021
1,575,000 Morgan Stanley
3.000% February 7, 2024
800,000 Morguard Corporation
4.013% November 18, 2020
825,000 NAV Canada
7.400% June 1, 2027
575,000 Navistar International
Corporation
8.250% November 1, 2021
800,000 North West Redwater
Partnership/NWR Financing
Company Limited
4.050% July 22, 2044
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Asset Allocation Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value
Corporate Bonds (continued)
Government Bonds (continued)
CAD
CAD
CAD
CAD
USD
USD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
USD
USD
CAD
CAD
CAD
USD
CAD
USD
350,000 Northland Power Inc.
Convertible Bonds
4.750% June 30, 2020
1,880,000 OMERS Realty Corporation
2.858% February 23, 2024
700,000 Parkland Fuel Corporation
5.750% September 16, 2024
300,000 Pattern Energy Group Inc.
Convertible Bonds
4.000% July 15, 2020
625,000 Prudential Financial Inc.
Floating Rate
5.625% June 15, 2043
1,650,000 PSP Capital Inc.
1.340% August 18, 2021
800,000 RioCan Real Estate Investment
Trust 3.287% Series W
February 12, 2024
3,750,000 Royal Bank of Canada
Floating Rate
2.480% June 4, 2025
735,000 Scotiabank Tier 1 Trust
Floating Rate
7.802% June 30, 2108
1,630,000 Sun Life Financial Inc.
Floating Rate
2.600% September 25, 2025
700,000 TD Capital Trust IV
Floating Rate
6.631% June 30, 2108
1,750,000 TELUS Corporation
5.150% November 26, 2043
2,325,000 The Bank of Nova Scotia
1.900% December 2, 2021
275,000 The Priceline Group Inc.
Convertible Bonds
0.900% September 15, 2021
525,000 The Royal Bank of Scotland
Group PLC
7.648% August 29, 2049
2,350,000 The Toronto-Dominion Bank
1.909% July 18, 2023
875,000 Toromont Industries Limited
3.710% September 30, 2025
346,000 Tricon Capital Group Inc.
Convertible Bonds
5.600% March 31, 2020
500,000 UBS Group AG Floating Rate
7.000% December 29, 2049
1,480,000 Wells Fargo & Company
3.874% May 21, 2025
90,000 Xilinx Inc. Convertible Bonds
2.625% June 15, 2017
358,909
409,500
1,923,156
1,937,734
CAD
715,372
725,375
CAD
383,421
395,464
USD
846,715
890,584
USD
1,649,521
1,631,570
USD
788,880
815,406
3,730,929
3,776,194
CAD
857,414
824,198
CAD
1,631,114
1,662,376
CAD
USD
PEN
MXN
275,000 Cemex Finance LLC
6.000% April 1, 2024
320,000 Republic of Hungary
6.250% January 29, 2020
1,850,000 Republic of Peru
7.840% August 12, 2020
6,000,000 United Mexican States
8.000% Series M
December 7, 2023
CAD
829,273
811,665
1,930,887
1,880,392
2,314,491
2,328,387
1,200,000 Canada Post Corporation
4.360% July 16, 2040
373,271
373,270
1,642,114
1,571,182
3,476,822
3,079,364
3,981,416
3,851,948
1,448,967
1,502,828
2,635,663
2,619,990
5,554,386
20,647,799
5,439,026
19,936,548
1,183,036
1,186,185
2,706,802
2,713,446
6,120,257
6,132,292
4,432,181
14,442,276
4,252,451
14,284,374
526,413
545,935
641,872
663,263
720,290
751,531
391,825
386,380
333,525
336,203
364,633
369,366
477,901
468,772
809,884
840,284
455,000
461,825
170,200
175,530
514,212
5,405,755
531,275
5,530,364
High Yield Bonds (1.1%)
USD
385,932
411,194
USD
USD
812,758
823,842
2,297,689
2,318,233
875,000
889,299
USD
USD
396,155
406,550
692,065
714,794
1,531,637
1,546,279
USD
USD
248,504
70,599,110
240,719
71,683,010
372,054
384,543
463,210
466,180
801,791
832,835
515,115
2,152,170
449,222
2,132,780
1,535,160
1,498,940
1,185,000 Canada Housing Trust
Floating Rate
0.872% September 15, 2019
2,700,000 Canada Housing Trust
Floating Rate
1.107% September 15, 2021
6,225,000 Canada Housing Trust
1.150% December 15, 2021
3,825,000 Labrador-Island Link
Funding Trust
3.760% Series A
June 1, 2033
CAD
CAD
CAD
USD
401,000 Ally Financial Inc.
5.750% November 20, 2025
500,000 Cascades Inc.
5.500% July 15, 2022
550,000 CCO Holdings LLC/
Capital Corporation
5.125% February 15, 2023
290,000 Covanta Holding
Corporation
5.875% July 1, 2025
250,000 First Quantum
Minerals Limited
7.250% Series 144A
April 1, 2023
275,000 Frontier Communications
Corporation
9.250% July 1, 2021
375,000 ILFC E-Capital Trust II
Floating Rate
4.910% December 21, 2065
780,000 Quebecor Media Inc.
6.625% January 15, 2023
455,000 Sirius XM Canada
Holdings Inc.
5.625% April 23, 2021
150,000 Source Energy Services Canada
Limited Partnership/
Holdings Limited
10.500% December 15, 2021
425,000 Teck Resources Limited
5.200% March 1, 2042
Government Bonds (4.0%)
CAD
Fair
Value ($)
Government Guaranteed Investments (2.9%)
Emerging Markets Bonds (0.4%)
USD
CAD
375,000 Government of Canada
0.500% February 1, 2019
765,000 Government of Canada
Real Return Bonds
4.250% December 1, 2026
1,700,000 Government of Canada
Real Return Bonds
3.000% December 1, 2036
2,675,000 Government of Canada
5.000% June 1, 2037
1,075,000 U.S. Treasury Inflation Index
Linked Notes
0.125% January 15, 2023
1,975,000 U.S. Treasury Notes
2.250% November 15, 2024
3,225,000 U.S. Treasury Notes
4.500% February 15, 2036
Average
Cost ($)
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
151
AGF Canadian Asset Allocation Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Provincial Bonds (6.5%)
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
Face Value
Average
Cost ($)
Fair
Value ($)
2,802,793
2,768,930
1,538,654
1,532,978
1,000,000
5,817,702
1,004,720
5,786,950
Supranational Bonds (continued)
1,175,000 Financement-Quebec
5.250% June 1, 2034
1,575,000 Province of Alberta
2.200% June 1, 2026
1,575,000 Province of Alberta
3.300% December 1, 2046
2,935,000 Province of British Columbia
5.700% June 18, 2029
810,000 Province of Manitoba
2.550% June 2, 2026
1,000,000 Province of Manitoba
4.600% March 5, 2038
1,600,000 Province of Ontario
1.950% January 27, 2023
5,875,000 Province of Ontario
2.850% June 2, 2023
5,465,000 Province of Ontario
5.600% June 2, 2035
1,000,000 Province of Quebec
1.650% March 3, 2022
3,525,000 Province of Quebec
3.500% December 1, 2022
600,000 Province of Quebec
5.750% December 1, 2036
750,000 Province of Saskatchewan
2.550% June 2, 2026
CAD
1,500,463
1,499,280
1,570,653
1,544,588
1,730,720
1,570,456
3,963,537
3,860,834
838,885
816,954
1,183,240
1,194,939
1,590,592
1,606,235
6,203,926
6,186,143
7,376,073
7,376,051
998,950
999,327
3,851,223
3,841,592
838,914
829,124
751,763
32,398,939
757,746
32,083,269
476,255
480,322
CAD
CAD
2,400,000 Inter-American
Development Bank
4.400% January 26, 2026
1,550,000 International Bank for
Reconstruction
and Development
1.250% March 18, 2021
1,000,000 The Export-Import Bank
of Korea
1.927% February 24, 2020
Commissions and other portfolio
transaction costs (Note 2)
(380,942)
Total Investments (97.7%)
449,372,994
Foreign Exchange Forward Contracts (0.0%)
See Schedule A
Total Portfolio (97.7%)
–
486,210,712
–
196,352
449,372,994
486,407,064
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Canadian Asset Allocation Fund (the “Fund”).
Supranational Bonds (1.2%)
IDR 4,760,000,000 European Bank for
Reconstruction
and Development
7.375% April 15, 2019
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
152
13,979,571
8,409,934
USD
USD
Sold Currency
Forward Rate
Maturity Date
10,358,000
6,335,000
1.3496
1.3275
April 13, 2017
April 28, 2017
Fair Value ($)
207,499
(11,147)
196,352
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Counterparty
Credit Rating
Royal Bank of Canada
The Bank of Nova Scotia
AA
A
AGF Canadian Asset Allocation Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide high long-term total
investment returns with moderate risk through a combination of longterm capital growth and current income. The Fund invests primarily in a
mix of common and preferred shares of Canadian companies, Canadian
federal and provincial bonds, high quality corporate bonds and money
market instruments.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
Canada
United States
Jersey
United Kingdom
South Korea
Mexico
Peru
Ireland
Switzerland
Israel
Cayman Islands
Italy
Hungary
Foreign Exchange Forward Contracts
81.8
14.0
0.3
0.3
0.2
0.2
0.2
0.2
0.1
0.1
0.1
0.1
0.1
0.0
September 30, 2016
(%)
Canada
United States
Mexico
United Kingdom
Jersey
Switzerland
Peru
Israel
Italy
Cayman Islands
Hungary
Foreign Exchange Forward Contracts
78.1
19.1
0.3
0.3
0.2
0.2
0.2
0.2
0.1
0.1
0.1
(0.0)
Portfolio by Sector
March 31, 2017
(%)
Equity Funds
Financials
Corporate Bonds
Energy
Provincial Bonds
Information Technology
Industrials
Government Bonds
Materials
Government Guaranteed Investments
Consumer Discretionary
Telecommunication Services
Consumer Staples
Supranational Bonds
High Yield Bonds
Health Care
Utilities
Emerging Markets Bonds
Real Estate
Foreign Exchange Forward Contracts
18.2
14.5
14.4
10.9
6.5
5.8
5.2
4.0
3.6
2.9
2.7
2.5
1.8
1.2
1.1
1.1
0.6
0.4
0.3
0.0
September 30, 2016
(%)
Corporate Bonds
Equity Funds
Financials
Energy
Provincial Bonds
Information Technology
Materials
Government Bonds
Consumer Discretionary
Telecommunication Services
Industrials
Government Guaranteed Investments
Consumer Staples
Health Care
High Yield Bonds
Real Estate
Supranational Bonds
Utilities
Emerging Markets Bonds
Municipal Bonds
Foreign Exchange Forward Contracts
15.4
14.4
13.6
8.7
7.3
6.5
5.0
4.7
4.2
4.1
3.5
2.9
2.2
1.5
1.1
1.1
1.0
0.7
0.6
0.4
(0.0)
Portfolio by Asset Mix
March 31, 2017
(%)
Canadian Equity
Canadian Fixed Income
United States Equity
United States Fixed Income
International Fixed Income
International Equity
Foreign Exchange Forward Contracts
58.1
23.7
9.0
5.0
1.8
0.1
0.0
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
153
AGF Canadian Asset Allocation Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
(%)
Canadian Equity
Canadian Fixed Income
United States Equity
United States Fixed Income
International Fixed Income
International Equity
Foreign Exchange Forward Contracts
52.8
25.3
12.5
6.6
1.5
0.2
(0.0)
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the underlying funds as at March 31,
2017 and September 30, 2016 are included in the following tables:
March 31, 2017
AGF Global Resources Fund
AGF Global Equity Fund
September 30, 2016
AGF Global Equity Fund
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
14,682
76,011
54.6
8.6
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
78,983
9.4
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund invested in
debt instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
March 31,
2017
September 30,
2016
9.0
3.4
9.2
7.3
1.4
1.3
0.2
1.1
10.0
3.7
9.4
7.6
1.7
0.9
0.3
1.1
Interest Rate Risk
As at March 31, 2017 and September 30, 2016, the Fund’s exposure to
debt instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
March 31,
2017
September 30,
2016
241
9,613
30,681
110,902
2,264
24,811
23,730
132,609
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at March 31, 2017 and September 30, 2016, if the yield curve had
shifted in parallel by 25 basis points, with all other variables held
constant, Net Assets would have increased or decreased, respectively,
by approximately $2,674,000 (September 30, 2016 – $3,274,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 20 percent change in
benchmarks (September 30, 2016 – 25 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
S&P/TSX Composite Index
FTSE TMX Canada Universe Bond Index
Blended Benchmark
March 31,
2017
September 30,
2016
45,149
33,411
73,309
69,234
47,310
108,011
The Blended Benchmark is composed of 60% S&P/TSX Composite
Index and 40% FTSE TMX Canada Universe Bond Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
154
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Asset Allocation Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31, 2017
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
Peruvian New Sol
Euro Currency
Indonesian Rupiah
Mexican Peso
71,803
833
826
480
449
(22,193) 49,610
–
833
–
826
–
480
–
449
10.0
0.2
0.2
0.1
0.1
United States Dollar
Mexican Peso
Peruvian New Sol
Indonesian Rupiah
($’000)
Level 1
Level 2
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
280,037
–
–
78,983
359,020
–
–
–
183,414
–
–
183,414
38
(45)
Level 3
–
–
–
–
–
–
–
Total
280,037
183,414
–
78,983
542,434
38
(45)
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
September 30, 2016
($’000)
September 30, 2016
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
102,310
1,369
945
487
(24,999) 77,311
–
1,369
–
945
–
487
14.1
0.3
0.2
0.1
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $1,044,000 (September 30,
2016 – $1,602,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
($’000)
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
% of Gross
Income
($’000)
% of Gross
Income
17
–
(1)
100.0
–
(3.0)
16
–
(2)
100.0
–
(11.3)
(5)
(29.3)
(4)
(26.6)
11
67.7
10
62.1
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
March 31,
2017
September 30,
2016
21,671
–
22,791
17,086
–
18,019
March 31, 2017
($’000)
Level 1
Level 2
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
244,081
–
–
90,693
334,774
–
–
–
151,437
–
–
151,437
207
(11)
Level 3
–
–
–
–
–
–
–
Total
244,081
151,437
–
90,693
486,211
207
(11)
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
155
AGF Canadian Large Cap Dividend Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
156
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
1,478,337
346
5,750
–
1,004
5,021
–
–
3,325
441
1,494,224
September 30,
2016
$
1,476,595
37
5,443
–
647
1,147
–
–
2,916
622
1,487,407
$
$
–
–
–
–
454
1,140
2,269
62
3,762
–
–
7,687
1,486,537
1,037,692
$
$
–
–
–
–
380
981
2,081
88
2,411
–
–
5,941
1,481,466
1,066,234
$
$
$
$
$
$
$
$
$
$
144,021
1,165,491
10,907
34,472
704
4,905
108,123
15,053
2,861
–
$
$
$
$
$
$
$
$
$
$
138,058
1,160,109
11,556
28,104
485
2,003
124,374
13,941
2,836
–
$
$
$
$
$
$
$
$
$
$
11.83
50.06
51.71
52.55
11.55
10.46
55.37
9.40
12.55
–
$
$
$
$
$
$
$
$
$
$
11.26
47.74
49.33
50.39
11.12
10.07
53.30
9.23
12.15
–
AGF Canadian Large Cap Dividend Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
16,627
2,282
317
50,650
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
30,284
100,160
–
20,811
–
36
35,849
(14,329)
42,367
(950)
309
309
65
1,171
221
68
(909)
99,625
(89)
42,567
10,894
11,097
1,048
22
11
82
–
51
2
1
1,250
628
1,119
55
7
64
–
33
15
1
1,267
1,304
479
14,468
515
15,477
(633)
13,835
(1,193)
14,284
$
85,790
$
28,283
$
$
$
$
$
$
$
$
$
$
7,820
67,248
668
1,884
37
209
6,932
826
166
–
$
$
$
$
$
$
$
$
$
$
2,123
20,699
210
452
11
21
4,473
234
60
–
$
$
$
$
$
$
$
$
$
$
0.64
2.82
2.97
3.14
0.71
0.66
3.47
0.54
0.71
–
$
$
$
$
$
$
$
$
$
$
0.16
0.77
0.80
0.97
0.23
0.18
1.29
0.18
0.25
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
85,790
2016
$
4
28,283
155
(50,650)
(34,899)
(30,593)
(275,433)
13,158
(280,328)
352,102
371,496
–
–
–
–
(409)
(100)
–
181
–
39
74
159
81,225
41
(291)
97,554
(591)
74,597
(256)
61,620
(154,920)
(80,914)
(158,414)
(97,050)
(4)
(155)
$
311
5,443
5,750
$
504
5,920
6,269
$
317
$
36
$
17,864
$
19,407
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
157
AGF Canadian Large Cap Dividend Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
158
2017
138,058
1,160,109
11,556
28,104
485
2,003
124,374
13,941
2,836
–
2016
$
139,310
1,195,658
11,780
20,104
411
756
163,717
11,886
2,872
–
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
1,481,466
1,546,494
7,820
67,248
668
1,884
37
209
6,932
826
166
–
85,790
2,123
20,699
210
452
11
21
4,473
234
60
–
28,283
Capital gains
Mutual Fund Units
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
16,438
49,966
36
7,462
406
2,749
4,228
1,955
144
–
83,384
11,339
39,294
487
4,244
133
1,023
6,884
1,942
137
–
65,483
Return of capital
Mutual Fund Units
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
902
11,877
126
533
16
86
3,063
333
37
–
16,973
–
70
–
–
23
50
–
299
36
–
478
(18,270)
(111,621)
(1,350)
(2,920)
(224)
(56)
(27,411)
(1,434)
(252)
–
(163,538)
(19,230)
(127,055)
(947)
(2,510)
(32)
(535)
(9,631)
(1,362)
(325)
–
(161,627)
(63,181)
(95,666)
2017
$
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Classic Series Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(686)
(10,093)
(110)
(538)
(15)
(81)
(2,880)
(76)
(14)
–
(14,493)
2016
$
–
(26)
–
–
(8)
(17)
–
(25)
(4)
–
(80)
(241)
(1,995)
(19)
(53)
(1)
(5)
(183)
(13)
(3)
–
(2,513)
–
–
–
–
(15)
(33)
–
(163)
(30)
–
(241)
–
–
–
–
–
–
–
(479)
(53)
–
(532)
–
–
–
–
–
–
–
(326)
(41)
–
(367)
5,071
(68,071)
144,021
1,165,491
10,907
34,472
704
4,905
108,123
15,053
2,861
–
1,486,537
133,542
1,128,640
11,530
22,290
523
1,265
165,443
12,485
2,705
–
$
1,478,423
AGF Canadian Large Cap Dividend Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares/
Units
Average
Cost ($)
Fair
Value ($)
1,207,939
4,886,664
2,874,472
9,755,445
2,854,214
1,245,373
3,734,379
4,344,423
16,987,726
6,278,715
6,629,366
9,750,833
9,588,323
9,759,780
1,535,254
39,494,187
1,491,874
53,430,593
6,340,442
7,543,246
7,883,443
12,177,477
7,721,244
6,766,763
8,835,690
6,033,568
5,657,672
13,089,260
5,004,246
87,053,051
12,268,456
19,734,221
13,107,086
19,302,447
6,370,020
13,174,402
11,870,320
8,360,520
9,632,272
23,236,577
6,734,145
143,790,466
7,301,770
8,172,544
8,417,062
11,351,687
8,363,350
9,348,038
8,908,095
6,916,830
20,432,680
26,026,355
10,312,803
33,948,170
3,355,749
7,344,145
9,752,865
2,512,741
2,905,431
2,395,902
5,421,271
3,835,455
6,998,536
11,932,364
274,373
2,868,816
2,388,156
5,492,608
1,343,969
1,932,452
791,642
2,021,757
1,547,171
9,084,144
4,201,833
1,173,822
16,323,768
4,210,850
11,851,782
5,170,942
9,266,081
4,782,536
4,556,370
16,037,101
18,959,310
2,971,592
207,286,291
10,597,230
3,671,099
9,859,547
5,106,483
5,313,429
13,597,490
20,668,925
2,999,413
207,732,243
4,649,123
9,631,454
9,751,845
6,134,783
3,456,413
4,207,929
12,717,811
10,217,628
8,263,195
5,430,672
4,971,695
5,685,068
Consumer Discretionary (3.6%)
Dollarama Inc.
Kia Motors Corporation
Magna International Inc.
Omnicom Group Inc.
Persimmon PLC
Restaurant Brands
International Inc.
354,000 Shaw Communications Inc. ‘B’
442,051 Singapore Press
Holdings Limited
Consumer Staples (9.7%)
Fair
Value ($)
80,838 iShares MSCI Thailand
Capped ETF
7,923,033
46,518,346
8,384,113
54,906,416
1,254,871
1,151,492
8,467,429
10,357,119
5,475,584
15,197,884
12,803,511
24,312,122
6,326,274
3,305,279
20,146,649
2,216,610
6,950,641
3,183,345
23,183,622
2,855,721
6,511,550
14,394,495
1,569,377
14,192,739
1,674,929
1,914,989
28,522,167
2,291,924
1,433,712
5,488,452
8,373,476
3,890,567
3,319,685
4,127,017
6,392,403
11,450,833
1,681,780
5,851,780
17,194,414
6,814,029
6,176,074
5,435,069
8,058,188
23,765,579
3,209,893
7,380,132
1,402,426
830,937
23,129,204
6,334,241
11,091,248
4,386,361
8,015,686
39,308,518
16,312,571
1,613,419
26,246,628
25,956,680
4,568,802
4,439,589
284,645,887
3,641,044
7,027,882
2,855,913
924,065
29,640,835
9,237,123
23,403,460
5,204,288
7,881,852
66,952,928
21,502,368
1,918,610
45,674,513
59,429,442
5,101,137
9,345,705
458,014,982
7,901,845
10,809,900
4,305,312
10,808,140
8,931,761
16,892,790
6,882,794
14,840,508
4,599,564
38,424,761
3,714,635
51,262,488
9,267,049
2,470,257
5,392,317
3,782,125
13,796,756
1,861,296
6,681,876
5,945,144
5,673,425
18,733,443
20,585,417
3,771,162
13,417,972
24,863,171
3,820,392
28,112,188
ETFs – United States Equity (1.6%)
20,700 SPDR S&P
Pharmaceuticals ETF
328,200 The Financial Select Sector
SPDR Fund
180,600 The Technology Select Sector
SPDR Fund
Financials (30.8%)
204,202 Alimentation Couche-Tard
Inc. ‘B’
207,777 Altria Group Inc.
89,785 Anheuser-Busch InBev SA/NV
218,584 British American Tobacco PLC
387,000 Cott Corporation
89,163 Henkel AG & Company KGaA
164,500 Loblaw Companies Limited
259,000 Maple Leaf Foods Inc.
168,132 Mondelez International Inc. ‘A’
154,766 Philip Morris International Inc.
55,763 The Kraft Heinz Company
Energy (14.0%)
555,200 Cameco Corporation
214,700 Canadian Natural
Resources Limited
591,900 Cenovus Energy Inc.
4,355,734 CNOOC Limited
717,662 Crescent Point
Energy Corporation
609,373 Enbridge Inc.
115,700 Enbridge Income Fund
Holdings Inc.
449,200 Encana Corporation
109,410 Exxon Mobil Corporation
62,819 Fred. Olsen Energy ASA
70,800 Imperial Oil Limited
85,200 Inter Pipeline Limited
140,800 Keyera Corporation
127,907 Petroleo Brasileiro SA –
Petrobras Preferred
321,424 Precision Drilling Corporation
326,138 PTT Exploration and Production
Public Company
Limited (Foreign)
1,749,600 Raging River Exploration Inc.
115,691 Royal Dutch Shell PLC ‘B’
436,100 Seven Generations
Energy Limited
94,300 ShawCor Limited ‘A’
241,478 Suncor Energy Inc.
129,770 The Williams Companies Inc.
78,990 TOTAL SA
458,600 Tourmaline Oil Corporation
336,792 TransCanada Corporation
168,443 WPX Energy Inc.
ETFs – International Equity (3.7%)
Global X MSCI Norway ETF
iShares MSCI China ETF
iShares MSCI Germany ETF
iShares MSCI Japan ETF
iShares MSCI Netherlands ETF
iShares MSCI South Korea
Capped ETF
Average
Cost ($)
ETFs – International Equity (continued)
11,300
84,759
75,700
148,175
179,960
129,432
282,519
191,535
267,245
120,653
152,319
69,096
No. of Units/
Shares
828,955
390,577
233,400
32,243
297,100
16,700
157,414
638,419
136,619
158,800
112,066
338,959
65,300
1,504,734
197,828
203,448
497,790
142,406
32,812
836,257
1,256,500
131,503
157,074
93,200
252,300
691,020
442,800
42,062
587,076
892,200
88,700
149,875
AIA Group Limited
Banco Santander SA
Bank of Montreal
BNP Paribas SA
Brookfield Asset Management
Inc. ‘A’
Canadian Imperial Bank
of Commerce
Chubb Limited
ECN Capital Corporation
Element Fleet
Management Corporation
Great-West Lifeco Inc.
Hannover Rueck SE
ING Groep NV
Intact Financial Corporation
Intesa Sanpaolo SpA
Invesco Limited
JPMorgan Chase & Company
Kasikornbank Public Company
Limited (Foreign)
Komercni banka AS
Lincoln National Corporation
Lloyds Banking Group PLC
Manulife Financial Corporation
MetLife Inc.
Moody’s Corporation
National Bank of Canada
Power Corporation of Canada
Royal Bank of Canada
Sun Life Financial Inc.
Synchrony Financial
The Bank of Nova Scotia
The Toronto-Dominion Bank
Thomson Reuters Corporation
Unum Group
Health Care (3.5%)
103,075
964,666
95,175
43,698
87,045
AbbVie Inc.
Astellas Pharma Inc.
Bristol-Myers Squibb Company
Roche Holding AG
Teva Pharmaceutical Industries
Limited ADR
Industrials (13.2%)
172,394
912,400
703,381
292,576
190,846
AGCO Corporation
Bombardier Inc. ‘B’
Brambles Limited
CAE Inc.
Canadian National
Railway Company
127,275 Canadian Pacific
Railway Limited
153,800 Finning International Inc.
169,291 Honeywell International Inc.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
159
AGF Canadian Large Cap Dividend Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Cost ($)
No. of Shares
Fair
Value ($)
No. of Shares/
Face Value
18,526 Huntington Ingalls
Industries Inc.
576,741 Keppel Corporation Limited
36,300 MacDonald Dettwiler and
Associates Limited
58,953 Northrop Grumman Corporation
69,905 Schneider Electric SE
180,800 SNC-Lavalin Group Inc.
68,451 The Dun & Bradstreet
Corporation
105,909 Waste Connections Inc.
231,339 Waste Management Inc.
44,000 WSP Global Inc.
1,273,541
4,801,231
4,933,273
3,805,150
3,005,614
5,651,144
5,392,671
9,769,876
2,550,075
18,646,334
6,806,271
9,434,144
6,894,759
8,792,501
10,106,514
1,922,704
121,970,279
9,825,731
12,435,835
22,433,559
2,066,680
196,751,318
4,364,068
5,935,723
4,078,648
4,633,821
10,978,956
7,594,075
5,842,666
6,867,277
9,571,186
7,228,772
22,807,548
13,257,160
2,969,456
5,656,340
13,482,605
2,040,935
9,759,566
64,912,130
27,235,906
3,783,596
10,060,794
113,236,968
146,224
10,395,367
9,904,388
279,760
5,823,500
246,691
15,154,412
11,619,021
390,714
9,313,362
8,491,568
5,382,084
14,283,542
4,042,172
2,159,188
5,704,570
9,846,307
10,524,096
12,013,682
3,455,100
3,139,059
6,893,854
898,421
7,196,435
6,390,574
736,680
601,905
5,203,665
87,640,043
774,752
7,442,906
10,747,968
493,897
422,305
6,629,082
109,107,208
123,436 Brookfield Property Partners
Limited Partnership
60,000 Canadian Apartment Properties
Real Estate Investment Trust
80,800 First Capital Realty Inc.
110,293 Forestar Group Inc.
132,513 Keppel Real Estate
Investment Trust
22,322
360,165
91,668
109,420 AT&T Inc.
133,700 BCE Inc.
287,713 Nippon Telegraph and
Telephone Corporation
232,600 Rogers Communications Inc. ‘B’
Canon Inc.
CGI Group Inc. ‘A’
FUJIFILM Holdings Corporation
International Business
Machines Corporation
Keyence Corporation
Open Text Corporation
Samsung Electronics Company
Limited
Samsung Electronics Company
Limited GDR
The Sage Group PLC
Western Digital Corporation
120,800
619,239
736,695
419,100
110,638
34,100
268,600
369,600
39,094
35,241
126,631
3,661,112
1,983,993
1,826,080
2,595,449
1,998,000
1,618,424
2,002,088
144,660
9,196,299
132,276
9,411,900
4,069,650
7,184,457
6,046,031
7,872,256
7,582,741
10,913,730
29,750,578
16,331,511
13,676,880
43,926,678
1,885,658
3,512,728
5,398,386
7,503,553
3,702,024
11,205,577
199,759
199,816
399,496
399,552
649,129
1,248,384
649,135
1,248,503
Utilities (0.8%)
145,870 Brookfield Infrastructure
Partners Limited Partnership
78,800 Emera Inc.
Short-Term Investments (0.1%)
CAD
CAD
CAD
Materials (7.3%)
6,790
268,600
91,492
2,978
368,700
696,837
2,646,117
Telecommunication Services (3.0%)
Information Technology (7.6%)
42,830
293,300
2,309
Fair
Value ($)
Real Estate (0.6%)
Industrials (continued)
111,762
172,300
146,216
31,215
Average
Cost ($)
AdvanSix Inc.
Agnico Eagle Mines Limited
Agrium Inc.
Arkema SA
Barrick Gold Corporation
First Quantum
Minerals Limited
Franco-Nevada Corporation
Goldcorp Inc.
Kinross Gold Corporation
Lundin Mining Corporation
Methanex Corporation
Potash Corporation of
Saskatchewan Inc.
Silver Wheaton Corporation
Teck Resources Limited
Vale SA ADR
Vale SA Preferred ‘A’
Voestalpine AG
200,000 Government of Canada
Treasury Bill
0.478% June 1, 2017
400,000 Government of Canada
Treasury Bill
0.492% June 15, 2017
650,000 Government of Canada
Treasury Bill
0.538% June 29, 2017
Commissions and other portfolio
transaction costs (Note 2)
(1,044,751)
–
Total Investments (99.5%)
1,037,691,755 1,478,337,462
Foreign Exchange Forward Contracts (0.0%)
See Schedule A
Total Portfolio (99.5%)
–
346,310
1,037,691,755 1,478,683,772
ADR – American Depository Receipt
ETF – Exchange Traded Fund
GDR – Global Depository Receipt
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Canadian Large Cap Dividend Fund (the “Fund”).
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
160
25,650,920
USD
Sold Currency
Forward Rate
Maturity Date
Fair Value ($)
Counterparty
Credit Rating
19,050,000
1.3465
June 20, 2017
346,310
346,310
Royal Bank of Canada
AA
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Large Cap Dividend Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide superior returns with
reasonable risk through a combination of dividends and capital growth
from Canadian companies and interest income.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
Portfolio by Sector
March 31, 2017
(%)
Financials
Energy
Industrials
Consumer Staples
Information Technology
Materials
ETFs – International Equity
Consumer Discretionary
Health Care
Telecommunication Services
ETFs – United States Equity
Utilities
Real Estate
Short-Term Investments
Foreign Exchange Forward Contracts
30.8
14.0
13.2
9.7
7.6
7.3
3.7
3.6
3.5
3.0
1.6
0.8
0.6
0.1
0.0
September 30, 2016
(%)
Financials
Energy
Industrials
Consumer Staples
Materials
Information Technology
Consumer Discretionary
Health Care
Telecommunication Services
ETFs – International Equity
ETFs – United States Equity
Real Estate
Utilities
Short-Term Investments
Foreign Exchange Forward Contracts
28.4
13.6
12.9
10.7
7.4
7.3
4.1
3.9
3.6
3.3
1.5
1.5
1.3
0.2
0.0
March 31, 2017
(%)
Canada
United States
Japan
South Korea
Germany
United Kingdom
China
France
Switzerland
Thailand
Belgium
Netherlands
Czech Republic
Hong Kong
Australia
Austria
Italy
Singapore
Norway
Israel
Spain
Brazil
Foreign Exchange Forward Contracts
52.1
24.9
5.2
2.8
2.7
2.3
1.3
1.0
1.0
0.9
0.9
0.8
0.5
0.5
0.5
0.4
0.4
0.4
0.3
0.3
0.2
0.1
0.0
September 30, 2016
(%)
Portfolio by Asset Mix
Canada
United States
Japan
Germany
South Korea
United Kingdom
China
France
Netherlands
Belgium
Switzerland
Australia
Czech Republic
Austria
Hong Kong
Israel
Singapore
Spain
Norway
Italy
Brazil
Thailand
Foreign Exchange Forward Contracts
53.3
24.5
5.7
2.7
2.3
2.0
1.3
1.2
1.1
1.1
1.0
0.6
0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.2
0.1
0.1
0.0
March 31, 2017
(%)
Canadian Equity
United States Equity
International Equity
Short-Term Investments
Foreign Exchange Forward Contracts
52.0
24.9
22.5
0.1
0.0
September 30, 2016
(%)
Canadian Equity
United States Equity
International Equity
Short-Term Investments
Foreign Exchange Forward Contracts
53.1
24.5
21.9
0.2
0.0
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
161
AGF Canadian Large Cap Dividend Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
March 31, 2017 and September 30, 2016 are included in the following
tables:
March 31, 2017
Global X MSCI Norway ETF
iShares MSCI Netherlands ETF
iShares MSCI Thailand Capped ETF
iShares MSCI China ETF
iShares MSCI Germany ETF
SPDR S&P Pharmaceuticals ETF
iShares MSCI South Korea Capped ETF
The Technology Select Sector SPDR Fund
iShares MSCI Japan ETF
The Financial Select Sector SPDR Fund
September 30, 2016
iShares MSCI Netherlands ETF
Global X MSCI Norway ETF
iShares MSCI China ETF
SPDR S&P Pharmaceuticals ETF
iShares MSCI Germany ETF
iShares MSCI South Korea Capped ETF
The Technology Select Sector SPDR Fund
iShares MSCI Japan ETF
The Financial Select Sector SPDR Fund
The Real Estate Select Sector SPDR Fund
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
4,208
5,431
8,384
12,718
10,218
1,151
5,685
12,804
8,263
10,357
2.7
2.1
1.6
0.4
0.2
0.2
0.1
0.1
0.0
0.0
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
7,837
4,257
12,551
2,371
9,492
3,645
11,941
11,469
6,639
1,569
3.2
2.8
0.4
0.4
0.2
0.1
0.1
0.1
0.0
0.0
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Classic Series Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
S&P/TSX Composite Index
S&P/TSX 60 Index
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives. Accordingly,
the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
215,432
224,353
283,726
299,190
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
March 31, 2017
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
Hong Kong Dollar
South Korean Won
Czech Koruna
Australian Dollar
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
467,408
80,972
68,345
34,674
15,107
13,867
9,658
7,084
6,682
5,693
4,840
1,221
276
(25,305) 442,103
–
80,972
–
68,345
–
34,674
–
15,107
–
13,867
–
9,658
–
7,084
–
6,682
–
5,693
–
4,840
–
1,221
–
276
Percentage of
Net Assets (%)
29.7
5.4
4.6
2.3
1.0
0.9
0.6
0.5
0.4
0.4
0.3
0.1
0.0
** Includes both monetary and non-monetary instruments, as applicable
The impact on Net Assets of the Fund due to a 20 percent change in
benchmarks (September 30, 2016 – 25 percent), using historical
correlation between the return of the Classic Series Units as compared
to the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
162
September 30,
2016
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
($’000)
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
March 31,
2017
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Large Cap Dividend Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
($’000)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
Hong Kong Dollar
South Korean Won
Australian Dollar
Czech Koruna
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
445,581
84,607
73,810
30,310
14,666
12,782
9,179
8,722
6,722
5,167
1,056
973
120
Percentage of
Net Assets (%)
(24,483) 421,098
–
84,607
–
73,810
–
30,310
–
14,666
–
12,782
–
9,179
–
8,722
–
6,722
–
5,167
–
1,056
–
973
–
120
28.4
5.7
5.0
2.0
1.0
0.9
0.6
0.6
0.5
0.3
0.1
0.1
0.0
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $13,810,000 (September 30,
2016 – $13,384,000).
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
($’000)
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
% of Gross
Income
($’000)
% of Gross
Income
110
–
(14)
100.0
–
(12.3)
109
–
(12)
100.0
–
(10.6)
(31)
(28.5)
(29)
(26.8)
65
59.2
68
62.6
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
March 31, 2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
March 31,
2017
September 30,
2016
101,418
–
107,031
72,332
–
76,304
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
1,475,915
–
–
–
1,475,915
–
–
1,173
–
1,249
–
2,422
346
–
–
–
–
–
–
–
–
1,477,088
–
1,249
–
1,478,337
346
–
Level 1
Level 2
Level 3
Total
1,472,967
–
–
–
1,472,967
–
–
1,031
–
2,597
–
3,628
37
–
–
–
–
–
–
–
–
1,473,998
–
2,597
–
1,476,595
37
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
163
AGF Canadian Money Market Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
164
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
137,424
–
–
–
407
–
–
97
15
–
137,943
September 30,
2016
$
147,305
–
6,797
–
104
–
–
629
15
–
154,850
$
$
–
–
–
–
29
–
350
9
–
–
–
388
137,555
137,314
$
$
–
–
–
–
28
–
149
12
–
–
–
189
154,661
147,174
$
$
$
$
$
$
$
$
$
133,170
–
2,109
2,276
–
–
–
–
–
$
$
$
$
$
$
$
$
$
149,425
–
2,753
2,483
–
–
–
–
–
$
$
$
$
$
$
$
$
$
10.00
–
10.00
10.00
–
–
–
–
–
$
$
$
$
$
$
$
$
$
10.00
–
10.00
10.00
–
–
–
–
–
AGF Canadian Money Market Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
–
–
482
–
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
–
–
491
–
–
482
–
–
491
–
–
–
6
–
–
3
–
488
–
494
686
768
312
8
11
5
–
17
–
1
109
–
366
18
6
5
–
14
2
1
125
–
–
1,149
–
1,305
(709)
440
(860)
445
$
48
$
49
$
$
$
$
$
$
$
$
$
40
–
0
8
–
–
–
–
–
$
$
$
$
$
$
$
$
$
44
–
0
5
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.00
–
0.00
0.03
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.00
–
0.00
0.03
–
–
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
48
2016
$
49
–
–
–
–
–
(276,842)
–
(222,087)
286,702
235,412
–
532
–
(27)
–
(54)
21
–
(7)
–
1
–
10,462
3
–
13,289
(36)
34,184
(49)
66,925
(51,407)
(17,259)
(80,165)
(13,289)
–
–
$
(6,797)
6,797
–
$
–
–
–
$
504
$
438
$
–
$
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
165
AGF Canadian Money Market Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
166
2017
149,425
–
2,753
2,483
–
–
–
–
–
154,661
2016
$
171,030
–
2,780
1,944
–
–
–
–
–
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
175,754
40
–
0
8
–
–
–
–
–
48
44
–
0
5
–
–
–
–
–
49
32,681
–
1,453
689
–
–
–
–
–
34,823
65,570
–
785
528
–
–
–
–
–
66,883
7
–
0
8
–
–
–
–
–
15
9
–
–
5
–
–
–
–
–
14
(48,943)
–
(2,097)
(904)
–
–
–
–
–
(51,944)
(77,567)
–
(2,097)
(468)
–
–
–
–
–
(80,132)
(17,106)
(13,235)
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(40)
–
(0)
(8)
–
–
–
–
–
(48)
2016
$
(44)
–
(0)
(5)
–
–
–
–
–
(49)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(17,106)
(13,235)
133,170
–
2,109
2,276
–
–
–
–
–
159,042
–
1,468
2,009
–
–
–
–
–
137,555
$
162,519
AGF Canadian Money Market Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Face Value
Average
Cost ($)
Fair
Value ($)
399,704
399,797
7,985,040
7,996,891
7,654,890
7,665,813
8,392,020
8,395,389
824,464
824,723
7,335,006
32,591,124
7,338,796
32,621,409
4,200,000
4,200,000
8,008,715
8,008,715
7,988,480
7,996,517
7,791,966
15,780,446
7,797,832
15,794,349
3,990,440
3,999,716
4,989,000
4,998,756
7,779,408
7,794,682
6,984,950
6,992,670
4,094,506
4,095,011
7,981,680
7,988,494
14,665,308
14,670,058
8,287,882
8,298,574
6,322,136
65,095,310
6,323,805
65,161,766
11,638,133
11,638,133
–
–
137,313,728
137,424,372
Bankers’ Acceptances (23.7%)
CAD
CAD
CAD
CAD
CAD
CAD
400,000 Canadian Imperial Bank
of Commerce
0.772% April 25, 2017
8,000,000 HSBC Bank Canada
0.888% April 17, 2017
7,670,000 National Bank of Canada
0.868% April 24, 2017
8,400,000 Royal Bank of Canada
0.771% April 27, 2017
825,000 The Bank of Nova Scotia
0.766% April 17, 2017
7,350,000 The Bank of Nova Scotia
0.820% June 8, 2017
Corporate Bond (3.1%)
CAD 4,200,000 The Toronto-Dominion Bank
Floating Rate
1.114% June 1, 2017
Government Guaranteed Investment (5.8%)
CAD 8,000,000 Canada Housing Trust
Floating Rate
1.042% September 15, 2017
Promissory Notes (11.5%)
CAD 8,000,000 Province of Alberta
0.612% April 27, 2017
CAD 7,800,000 Province of Prince
Edward Island
0.597% April 18, 2017
Treasury Bills (47.3%)
CAD 4,000,000 Government of Canada
0.520% April 6, 2017
CAD 5,000,000 Government of Canada
0.479% April 20, 2017
CAD 7,800,000 Government of Canada
0.531% May 18, 2017
CAD 7,000,000 Government of Canada
0.511% June 15, 2017
CAD 4,100,000 Government of Canada
0.500% June 29, 2017
CAD 8,000,000 Government of Canada
0.511% July 13, 2017
CAD 14,700,000 Government of Canada
0.514% August 24, 2017
CAD 8,300,000 Province of New Brunswick
0.628% April 11, 2017
CAD 6,331,000 Province of Quebec
0.602% June 9, 2017
Short-Term Deposit (8.5%)
CAD 11,638,133 CIBC Mellon Trust Company
0.510% Demand Deposit
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (99.9%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Canadian Money Market Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
167
AGF Canadian Money Market Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide maximum income, while
preserving capital and liquidity by investing primarily in Canadian
money market instruments, such as Canadian treasury bills.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Sector
March 31, 2017
(%)
Treasury Bills
Bankers’ Acceptances
Promissory Notes
Short-Term Deposits
Government Guaranteed Investments
Corporate Bonds
47.3
23.7
11.5
8.5
5.8
3.1
September 30, 2016
(%)
Treasury Bills
Bankers’ Acceptances
Promissory Notes
Government Guaranteed Investments
Corporate Bonds
Short-Term Deposits
31.4
27.6
21.1
9.7
2.7
2.7
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund invested in
debt instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AAA
AA
A
March 31,
2017
September 30,
2016
42.5
20.8
36.6
29.8
30.0
39.8
Interest Rate Risk
The Fund has minimal fair value sensitivity to changes in interest rates,
since securities are usually held to maturity and tend to be short-term in
nature.
168
As at March 31, 2017 and September 30, 2016, the Fund’s exposure to
debt instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
March 31,
2017
September 30,
2016
137,424
–
–
–
147,305
–
–
–
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 5 percent change in
benchmark (September 30, 2016 – 5 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
FTSE TMX Canada 91 Day T-Bill Index
March 31,
2017
September 30,
2016
0
0
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
As at March 31, 2017 and September 30, 2016, the Fund did not have
significant exposure to currency risk.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Level 1
Level 2
Level 3
Total
–
–
–
–
–
–
–
–
12,209
125,215
–
137,424
–
–
–
–
–
–
–
–
–
–
12,209
125,215
–
137,424
–
–
AGF Canadian Money Market Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
–
–
–
–
–
–
–
–
19,230
128,075
–
147,305
–
–
–
–
–
–
–
–
–
–
19,230
128,075
–
147,305
–
–
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
March 31, 2016
($’000)
% of Gross
Income
($’000)
% of Gross
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
8
–
–
100.0
–
–
4
–
–
100.0
–
–
(2)
(26.9)
(1)
(30.0)
Net Securities Lending Income
6
73.1
3
70.0
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 were as follows:
($’000)
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
March 31,
2017
September 30,
2016
13,648
–
14,374
–
–
–
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
169
AGF Canadian Small Cap Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
170
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
179,828
–
9,710
–
52
–
–
–
320
–
189,910
September 30,
2016
$
172,970
–
6,055
–
61
–
–
–
250
–
179,336
$
$
–
–
–
–
66
285
237
17
–
–
–
605
189,305
119,333
$
$
–
–
–
–
57
253
131
47
301
–
–
789
178,547
118,051
$
$
$
$
$
$
$
$
$
136,488
–
1,902
–
–
50,915
–
–
–
$
$
$
$
$
$
$
$
$
139,202
–
1,561
–
–
37,784
–
–
–
$
$
$
$
$
$
$
$
$
9.91
–
11.82
–
–
11.08
–
–
–
$
$
$
$
$
$
$
$
$
9.45
–
11.21
–
–
10.42
–
–
–
AGF Canadian Small Cap Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
$
1,245
72
34
5,029
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
1,183
–
12
(7,502)
5,576
11,956
–
21,389
15,082
–
–
–
120
–
–
134
(64)
12,012
(4)
15,212
1,752
1,601
228
9
11
7
–
13
–
1
197
19
248
19
6
6
–
10
1
1
177
9
384
2,621
97
2,175
(295)
2,326
(261)
1,914
9,686
$
13,298
$
$
$
$
$
$
$
$
$
6,514
–
88
–
–
3,084
–
–
–
$
$
$
$
$
$
$
$
$
9,868
–
45
–
–
3,385
–
–
–
$
$
$
$
$
$
$
$
$
0.45
–
0.61
–
–
0.69
–
–
–
$
$
$
$
$
$
$
$
$
0.66
–
0.76
–
–
0.85
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
9,686
2016
$
10
13,298
(30)
(5,029)
7,502
(5,576)
(20,540)
(21,389)
(12,197)
23,986
14,689
–
–
–
–
(70)
156
–
–
–
–
9
32
2,508
8
(68)
1,969
(3)
14,438
(112)
3,456
(13,278)
1,157
(11,156)
(7,812)
(10)
30
$
3,665
6,055
9,710
(5,843)
8,268
2,455
$
$
33
$
13
$
1,201
$
1,343
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
171
AGF Canadian Small Cap Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
172
2017
139,202
–
1,561
–
–
37,784
–
–
–
178,547
2016
$
121,778
–
569
–
–
33,004
–
–
–
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
155,351
6,514
–
88
–
–
3,084
–
–
–
9,686
9,868
–
45
–
–
3,385
–
–
–
13,298
2,661
–
409
–
–
11,748
–
–
–
14,818
1,827
–
35
–
–
1,588
–
–
–
3,450
56
–
–
–
–
–
–
–
–
56
57
–
–
–
–
–
–
–
–
57
(11,916)
–
(156)
–
–
(1,701)
–
–
–
(13,773)
(9,979)
–
(52)
–
–
(1,231)
–
–
–
(11,262)
1,101
(7,755)
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
–
–
–
–
–
–
–
–
–
–
2016
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(29)
–
–
–
–
–
–
–
–
(29)
(57)
–
–
–
–
–
–
–
–
(57)
10,758
5,486
136,488
–
1,902
–
–
50,915
–
–
–
123,494
–
597
–
–
36,746
–
–
–
189,305
$
160,837
AGF Canadian Small Cap Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares/
Units
Average
Cost ($)
Fair
Value ($)
2,199,210
1,610,094
1,962,310
1,840,897
2,167,500
3,629,400
1,806,000
3,362,820
2,386,147
9,998,658
3,241,000
14,206,720
2,439,206
2,348,163
4,787,369
4,716,000
2,256,250
6,972,250
2,216,981
2,265,584
2,880,305
2,634,000
1,825,000
3,976,500
2,809,581
2,544,590
1,697,438
1,851,784
1,543,961
1,775,400
3,813,750
586,838
2,612,400
360,000
1,631,381
2,463,532
1,718,295
23,623,432
1,871,100
1,862,000
2,070,000
23,386,988
3,880,305
3,829,850
7,710,155
4,258,871
4,253,818
8,512,689
1,382,629
1,313,438
1,785,253
1,884,750
2,919,013
4,616,250
1,964,750
7,579,830
3,752,600
12,038,853
1,703,269
1,240,000
3,703,679
1,418,398
3,586,287
5,941,500
5,258,220
3,549,600
3,231,740
216,967
322,945
1,938,065
1,738,631
16,156,712
2,950,500
235,128
385,180
3,886,932
1,878,800
24,085,860
1,033,168
789,031
1,752,055
650,567
1,233,056
5,228,000
863,550
1,447,200
890,040
5,453,296
1,988,441
7,446,318
6,099,606
19,981,692
Consumer Discretionary (7.5%)
850,000
60,000
175,000
82,000
100,000
450,000 Clearwater Seafoods Inc.
125,000 High Liner Foods Inc.
Energy (12.3%)
225,000
3,009,425
280,000
500,000
77,000
700,000
200,000
Advantage Oil & Gas Limited
Cardinal Energy Limited
Leucrotta Exploration Inc.
Painted Pony
Petroleum Limited
Parex Resources Inc.
Petrowest Corporation ‘A’
Raging River Exploration Inc.
RMP Energy Inc.
Seven Generations
Energy Limited
Spartan Energy Corporation
Whitecap Resources Inc.
ETFs – United States Equity (4.5%)
23,000 Vanguard Mid-Cap ETF
24,000 Vanguard Small-Cap ETF
Financials (6.4%)
60,661 Canadian Western Bank
525,000 ECN Capital Corporation
375,000 Element Fleet
Management Corporation
145,000 Guardian Capital Group
Limited ‘A’
Health Care (0.7%)
1,000,000 Merus Labs International Inc.
12,027
7,848
141,343
40,000
Fair
Value ($)
371,455
150,600
30,000
11,863
50,000
210,000
350,000
140,000
400,000
37,000
213,331
80,000
200,000
115,000
B2Gold Corporation
Canfor Pulp Products Inc.
CCL Industries Inc.
Dominion Diamond Corporation
HudBay Minerals Inc.
Interfor Corporation
Lundin Mining Corporation
Major Drilling Group
International Inc.
Mandalay Resources Corporation
Richmont Mines Inc.
SEMAFO Inc.
Stella-Jones Inc.
Western Forest Products Inc.
Winpak Limited
1,332,113
1,530,906
1,962,669
158,727
519,255
2,135,821
1,443,832
1,407,815
1,820,754
8,704,200
199,536
437,000
3,607,800
2,621,500
1,279,777
442,000
384,800
775,405
1,834,584
393,680
2,196,290
16,389,859
988,400
236,000
348,910
855,457
3,128,000
434,000
6,106,500
30,895,872
1,466,860
3,201,000
4,229,686
1,197,253
3,383,267
2,875,017
3,733,690
2,720,000
4,876,625
3,844,050
4,575,000
6,003,500
1,225,488
18,111,261
1,538,151
26,758,326
2,392,785
1,967,355
1,718,694
6,078,834
3,810,000
5,579,600
2,359,500
11,749,100
Real Estate (14.1%)
110,000 Altus Group Limited
400,000 DREAM Unlimited
Corporation ‘A’
60,647 FirstService Corporation
105,000 Mainstreet Equity Corporation
25,000 Morguard Corporation
550,000 Tricon Capital Group Inc.
90,000 WPT Industrial Real Estate
Investment Trust
Utilities (6.2%)
300,000 Algonquin Power &
Utilities Corporation
260,000 Boralex Inc. ‘A’
165,000 Innergex Renewable Energy Inc.
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (95.0%)
(252,565)
119,333,132
–
179,828,350
* Private and/or Restricted
ETF – Exchange Traded Fund
Industrials (12.7%)
170,000
62,000
90,000
42,000
Average
Cost ($)
Materials (16.3%)
Diversified Royalty Corporation
Linamar Corporation
Martinrea International Inc.
Quebecor Inc. ‘B’
Sleep Country Canada
Holdings Inc.
Consumer Staples (3.7%)
300,000
250,000
1,650,000
330,000
No. of Shares
Badger Daylighting Limited
Boyd Group Income Fund
K-Bro Linen Inc.
MacDonald Dettwiler &
Associates Limited
Magellan Aerospace Corporation
New Flyer Industries Inc.
Richelieu Hardware Limited
WSP Global Inc.
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at March
31, 2017 of AGF Canadian Small Cap Fund (the “Fund”).
Information Technology (10.6%)
8,000
15,000
90,000
12,000
1,038,723
200,184
Constellation Software Inc.
Enghouse Systems Limited
Evertz Technologies Limited
Kinaxis Inc.
Real Matters Inc. ‘A’*
The Descartes Systems
Group Inc.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
173
AGF Canadian Small Cap Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide superior capital growth by
investing primarily in shares and other securities of small and medium
Canadian companies that have the potential to generate above-average
growth.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
As at March 31, 2017, the total fair value of private and/or restricted
securities held within the Fund represented approximately $5,453,000
(September 30, 2016 – $8,634,000).
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
March 31, 2017 and September 30, 2016 are included in the following
tables:
March 31, 2017
Portfolio by Country
March 31, 2017
(%)
Canada
United States
90.5
4.5
September 30, 2016
(%)
Canada
United States
93.9
3.0
Portfolio by Sector
Vanguard Small-Cap ETF
Vanguard Mid-Cap ETF
September 30, 2016
Vanguard Small-Cap ETF
Vanguard Mid-Cap ETF
% of ETF’s
Net Assets
4,254
4,259
0.0
0.0
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
2,565
2,717
0.0
0.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
March 31, 2017
(%)
Materials
Real Estate
Industrials
Energy
Information Technology
Consumer Discretionary
Financials
Utilities
ETFs – United States Equity
Consumer Staples
Health Care
16.3
14.1
12.7
12.3
10.6
7.5
6.4
6.2
4.5
3.7
0.7
September 30, 2016
(%)
Materials
Energy
Information Technology
Real Estate
Industrials
Financials
Consumer Discretionary
Utilities
Consumer Staples
ETFs – United States Equity
Health Care
15.4
13.6
12.9
12.2
10.6
9.1
8.1
6.1
5.2
3.0
0.7
Portfolio by Asset Mix
March 31, 2017
(%)
Canadian Equity
United States Equity
90.5
4.5
September 30, 2016
(%)
Canadian Equity
United States Equity
93.9
3.0
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives. Accordingly,
the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 10 percent change in
benchmark (September 30, 2016 – 20 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
S&P/TSX Small Cap Index
174
Fair Value of
Fund’s
Investment
($’000)
March 31,
2017
September 30,
2016
8,519
16,697
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Small Cap Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
($’000)
United States Dollar
Financial
Instruments
12,676
–
Percentage of
Net Assets (%)
12,676
6.7
September 30, 2016
($’000)
United States Dollar
Financial
Instruments
Foreign
Exchange
Forward
Contracts Total**
7,421
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
164,336
–
–
–
164,336
–
–
–
–
–
–
–
–
–
8,634
–
–
–
8,634
–
–
172,970
–
–
–
172,970
–
–
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
The following tables reconcile the Fund’s level 3 fair value measurements
for the periods ended March 31, 2017 and September 30, 2016.
March 31, 2017
Foreign
Exchange
Forward
Contracts Total**
September 30, 2016
Percentage of
Net Assets (%)
7,421
4.2
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $254,000 (September 30,
2016 – $148,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
174,375
–
–
–
174,375
–
–
–
–
–
–
–
–
–
5,453
–
–
–
5,453
–
–
179,828
–
–
–
179,828
–
–
March 31, 2017
($’000)
Balance at Beginning of Period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
March 31, 2017
Equities
Debt
Instruments
Total
8,634
–
(5,519)
–
3,978
–
–
–
–
–
8,634
–
(5,519)
–
3,978
(1,640)
5,453
–
–
(1,640)
5,453
1,298
September 30, 2016
($’000)
Balance at Beginning of period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
Equities
Debt
Instruments
Total
4,792
301
(2)
–
2
–
–
–
–
–
4,792
301
(2)
–
2
3,541
8,634
–
–
3,541
8,634
3,541
The Manager utilizes a variety of valuation techniques in determining the
fair value of securities classified as level 3, including the use of
comparable recent arm’s length transactions, reference to other
instruments that are substantially the same, discounted cash flow
analysis, option pricing models and other techniques commonly used by
market participants. The key inputs used in the valuation techniques may
vary time to time depending on company specific factors and economic
or market conditions. As at March 31, 2017 and September 30, 2016, if
the value of the level 3 investments increased or decreased by 10 percent,
Net Assets would have increased or decreased, respectively, by
approximately $545,000 (September 30, 2016 – $863,000).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
175
AGF Canadian Small Cap Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
($’000)
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
March 31, 2016
% of Gross
Income
% of Gross
Income
($’000)
193
–
(9)
100.0
–
(4.9)
201
–
(9)
100.0
–
(4.4)
(64)
(33.0)
(58)
(28.7)
120
62.1
134
66.9
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
176
19,823
–
20,827
24,490
–
25,772
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Stock Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
868,462
1,711
–
–
817
20,640
–
–
2,578
75
894,283
September 30,
2016
$
796,802
391
–
–
374
15,411
–
–
1,397
73
814,448
$
$
2,526
–
264
–
289
766
1,396
7
15,757
–
–
21,005
873,278
776,492
$
$
1,375
–
275
–
240
667
1,011
80
8,747
–
–
12,395
802,053
720,275
$
$
$
$
$
$
$
$
$
658,240
1,849
12,189
7,283
1,086
191,380
1,117
134
–
$
$
$
$
$
$
$
$
$
654,333
1,903
11,549
6,218
514
126,090
1,265
181
–
$
$
$
$
$
$
$
$
$
39.39
41.37
43.90
8.49
9.34
49.21
6.86
8.70
–
$
$
$
$
$
$
$
$
$
36.57
38.51
41.10
7.99
8.78
46.29
6.59
8.26
–
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
177
AGF Canadian Stock Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
178
2017
$
13,379
–
230
49,085
2016
$
15,111
–
24
(12,451)
15,443
78,137
(4,262)
18,598
21,282
2,789
1,331
(2,931)
43
3,901
6,690
68
(298)
74,951
582
28,622
7,003
7,889
692
13
11
39
–
31
14
1
836
664
933
33
7
52
–
24
13
1
937
607
1,231
10,535
1,228
11,724
(867)
9,668
$
STATEMENTS OF CASH FLOWS (UNAUDITED)
65,283
(974)
10,750
$
17,872
$
$
$
$
$
$
$
$
$
50,824
142
983
586
64
12,583
90
11
–
$
$
$
$
$
$
$
$
$
12,207
50
309
212
8
5,050
33
3
–
$
$
$
$
$
$
$
$
$
2.91
3.06
3.52
0.72
0.73
4.11
0.51
0.60
–
$
$
$
$
$
$
$
$
$
0.51
0.94
1.38
0.31
0.27
1.81
0.19
0.20
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents (bank overdraft)
beginning of period
Cash and Cash Equivalents (Bank Overdraft) End
of Period
$
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
65,283
SEMI-ANNUAL REPORT 2017
$
2
17,872
(534)
(44,823)
9,662
(16,774)
(419,745)
(22,499)
(376,264)
410,132
557,633
–
–
–
–
(1,181)
802
–
(2)
–
(46)
49
99
(6,960)
(35)
(330)
186,261
(519)
71,791
(1,309)
42,207
(65,461)
5,811
(2)
(242,594)
(201,696)
534
(1,149)
(15,435)
(1,375)
11,546
(2,526)
$
$
(60)
$
25
$
11,809
$
15,311
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2016
(3,355)
AGF Canadian Stock Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
2017
654,333
1,903
11,549
6,218
514
126,090
1,265
181
–
802,053
2016
$
850,866
2,084
8,935
5,197
442
113,700
1,296
135
–
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
982,655
50,824
142
983
586
64
12,583
90
11
–
65,283
12,207
50
309
212
8
5,050
33
3
–
17,872
9,600
4
1,857
909
667
60,942
38
1
–
74,018
25,244
6
1,184
425
–
15,428
32
10
–
42,329
1,168
9
180
182
23
3,766
21
3
–
5,352
101,198
248
1,195
781
26
17,099
52
11
–
120,610
(56,107)
(199)
(2,191)
(430)
(159)
(8,235)
(251)
(58)
–
(67,630)
(238,293)
(195)
(1,013)
(173)
(209)
(3,802)
(217)
(1)
–
(243,903)
11,740
(80,964)
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(1,578)
(10)
(189)
(182)
(23)
(3,766)
(2)
(0)
–
(5,750)
2016
$
–
–
–
–
–
–
–
–
–
–
(4,456)
(11)
(136)
(139)
(5)
(3,041)
(0)
–
–
(7,788)
(97,959)
(247)
(1,113)
(642)
(21)
(14,058)
(88)
(12)
–
(114,140)
–
–
–
–
–
–
(44)
(4)
–
(48)
–
–
–
–
–
–
–
–
–
–
71,225
(185,020)
658,240
1,849
12,189
7,283
1,086
191,380
1,117
134
–
648,807
1,935
9,361
5,661
241
130,376
1,108
146
–
873,278
$
797,635
179
AGF Canadian Stock Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares
Average
Cost ($)
Fair
Value ($)
10,916,521
16,554,245
13,845,949
13,122,950
15,752,003
10,071,522
80,263,190
11,870,679
16,977,948
14,955,095
13,468,801
17,125,519
14,057,540
88,455,582
Cogeco Communications Inc.
Corus Entertainment Inc.
Las Vegas Sands Corporation
Magna International Inc.
Shaw Communications Inc. ‘B’
Tiffany & Company
10,055,818
8,114,687
8,750,398
16,561,008
13,453,883
11,044,142
12,749,581
80,729,517
8,937,186
6,148,574
9,437,089
16,871,969
11,266,959
14,616,586
16,155,482
83,433,845
14,759,305
5,334,319
10,363,361
14,797,519
15,769,490
15,425,710
13,734,088
13,481,266
18,397,783
15,856,534
14,184,273
13,413,315
10,782,198
19,186,911
12,137,216
20,011,749
19,731,900
13,697,419
15,200,255
5,228,259
5,844,148
16,080,788
13,184,152
20,734,974
6,310,399
5,630,702
7,008,597
180,212,907
6,597,037
182,670,760
14,422,244
16,341,802
11,279,251
14,616,383
17,902,139
13,229,300
14,272,221
13,310,942
6,456,334
3,797,870
9,223,161
118,509,845
18,014,679
16,631,205
16,964,700
13,002,540
15,164,022
16,948,872
7,408,698
7,871,053
14,592,168
142,939,739
14,357,195
7,350,098
2,022,499
935,514
15,508,401
8,090,324
24,736,331
360
–
13,415,152
13,577,700
15,915,786
67,573,944
8,417
13,844,922
13,019,462
15,757,739
90,965,956
9,551,857
838,287
15,654,924
6,461,212
32,506,280
9,474,475
459,978
17,164,273
13,142,166
40,240,892
Consumer Staples (9.6%)
286,632
586,696
96,958
443,452
260,704
97,353
352,048
AGT Food and Ingredients Inc.
Clearwater Seafoods Inc.
Colgate-Palmolive Company
Diageo PLC
Japan Tobacco Inc.
Philip Morris International Inc.
Saputo Inc.
Energy (20.9%)
4,103,322 BlackPearl Resources Inc.
2,029,838 Canadian Energy Services &
Technology Corporation
422,549 Canadian Natural
Resources Limited
830,185 Gibson Energy Inc.
506,039 Inter Pipeline Limited
343,843 Keyera Corporation
118,668 Magellan Midstream Partners
Limited Partnership
1,041,736 Pason Systems Inc.
587,963 Peyto Exploration &
Development Corporation
126,940 Schlumberger Limited
532,622 ShawCor Limited ‘A’
154,553 Suncor Energy Inc.
52,234 Tesoro Corporation
4,487,780 Tidewater Midstream and
Infrastructure Limited
Financials (16.4%)
236,271 Bank of the Ozarks Inc.
371,820 Brookfield Asset Management
Inc. ‘A’
105,270 CME Group Inc. ‘A’
965,000 Gluskin Sheff + Associates Inc.
222,000 Laurentian Bank of Canada
247,941 Lazard Limited ‘A’
718,477 Manulife Financial Corporation
29,714 MarketAxess Holdings Inc.
81,237 Royal Bank of Canada
187,560 The Bank of Nova Scotia
Health Care (10.4%)
71,078
290,063
632,897
169,119
632,897
Amgen Inc.
Dechra Pharmaceuticals PLC
Highland Therapeutics Inc.*
IMRIS Inc.
North Sound
Pharmaceuticals Inc.*
304,323 Pfizer Inc.
167,647 Shire PLC
222,021 Zoetis Inc.
149,560
217,601
151,240
99,171
209,193
Analog Devices Inc.
Evertz Technologies Limited
j2 Global Inc.
Lam Research Corporation
Xilinx Inc.
180
Fair
Value ($)
12,479,634
3,810,257
13,416,816
14,314,535
15,919,982
59,941,224
16,299,229
3,499,024
16,876,526
16,928,445
16,104,727
69,707,951
15,429,164
16,140,218
916,625
16,602,151
17,915,769
8,067
–
15,691,292
4,033
16,768,683
17,063,190
5,545,376
7,962,856
13,765,718
10,418,964
7,993,803
110,927,206
16,693,530
6,409,768
8,346,899
14,438,212
12,567,348
9,811,024
119,565,484
14,789,225
4,631,559
19,420,784
14,087,619
4,458,951
18,546,570
5,829,686
11,461,707
14,547,007
13,298,708
7,000,000
21,547,007
7,175,000
20,473,708
Materials (13.7%)
130,808
301,703
806,630
403,315
192,478
137,657
102,869
71,926
521,047
396,983
141,794
Agrium Inc.
Croda International PLC
ECI Exploration & Mining Inc.*
ECI Exploration & Mining Inc.
Warrants June 22, 2017*
Franco-Nevada Corporation
LyondellBasell Industries
NV ‘A’
Methanex Corporation
Randgold Resources Limited
Silver Wheaton Corporation
Victrex PLC
WestRock Company
Telecommunication Services (2.1%)
8,216,220 HKT Trust and HKT Limited
368,724 MTN Group Limited
Utilities (1.3%)
222,817 Brookfield Infrastructure
Partners Limited Partnership
Corporate Bonds (2.3%)
USD 10,250,000 Ensco Jersey Finance Limited
Convertible Bonds
3.000% January 31, 2024
CAD 7,000,000 Liquor Stores NA Limited
Convertible Bonds
4.700% January 31, 2022
Commissions and other portfolio
transaction costs (Note 2)
(969,495)
Total Investments (99.4%)
776,492,095
Foreign Exchange Forward Contracts (0.2%)
See Schedule A
Total Portfolio (99.6%)
–
868,462,194
–
1,447,073
776,492,095
869,909,267
* Private and/or Restricted
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Canadian Stock Fund (the “Fund”).
Industrials (4.6%)
48,500 Canadian Pacific
Railway Limited
1,069,716 PyroGenesis Canada Inc.
497,371 Stantec Inc.
282,445 Toromont Industries Limited
Average
Cost ($)
Information Technology (8.0%)
Consumer Discretionary (10.1%)
167,075
1,299,996
197,051
234,689
621,165
110,921
No. of Shares/
Face Value
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Stock Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
JPY
USD
USD
USD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
36,712,000
4,000,000
4,875,000
2,380,000
11,232,461
66,421,183
50,800,395
22,562,427
58,136,818
28,477,408
34,820,864
3,455,582
38,199,820
CAD
CAD
CAD
CAD
JPY
USD
USD
USD
USD
USD
USD
USD
USD
Sold Currency
Forward Rate
Maturity Date
437,803
5,353,360
6,493,695
3,164,210
953,737,000
49,214,000
38,015,000
16,884,000
43,512,000
21,400,000
26,175,000
2,600,000
28,775,000
83.8550
0.7472
0.7507
0.7522
0.0118
1.3496
1.3363
1.3363
1.3361
1.3307
1.3303
1.3291
1.3275
April 13, 2017
April 21, 2017
April 21, 2017
April 28, 2017
April 13, 2017
April 13, 2017
April 21, 2017
April 21, 2017
April 21, 2017
April 28, 2017
April 28, 2017
April 28, 2017
April 28, 2017
Fair Value ($)
875
(35,584)
(12,656)
(455)
(163,901)
986,314
261,581
116,094
290,051
30,202
26,210
(621)
(51,037)
1,447,073
Counterparty
Credit Rating
The Bank of Nova Scotia
National Bank of Canada
The Toronto-Dominion Bank
Citibank NA
The Bank of Nova Scotia
Royal Bank of Canada
Bank of Montreal
National Bank of Canada
The Toronto-Dominion Bank
Bank of America
Citibank NA
The Bank of Nova Scotia
The Bank of Nova Scotia
A
A
AA
A
A
AA
A
A
AA
BBB
A
A
A
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
181
AGF Canadian Stock Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term growth of
capital by investing primarily in equity securities of Canadian issuers.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
Canada
United States
United Kingdom
Hong Kong
Jersey
Japan
South Africa
Foreign Exchange Forward Contracts
53.9
31.8
8.8
1.6
1.5
1.3
0.5
0.2
September 30, 2016
(%)
Canada
United States
United Kingdom
Australia
Foreign Exchange Forward Contracts
60.0
33.5
5.6
0.3
0.0
Portfolio by Sector
March 31, 2017
(%)
Energy
Financials
Materials
Health Care
Consumer Discretionary
Consumer Staples
Information Technology
Industrials
Corporate Bonds
Telecommunication Services
Utilities
Foreign Exchange Forward Contracts
20.9
16.4
13.7
10.4
10.1
9.6
8.0
4.6
2.3
2.1
1.3
0.2
September 30, 2016
(%)
Energy
Financials
Materials
Consumer Discretionary
Consumer Staples
Industrials
Health Care
Information Technology
Utilities
Corporate Bonds
Telecommunication Services
Foreign Exchange Forward Contracts
24.1
14.5
12.2
12.1
9.1
8.1
7.9
7.3
2.4
0.9
0.8
0.0
182
Portfolio by Asset Mix
March 31, 2017
(%)
Canadian Equity
United States Equity
International Equity
International Fixed Income
Canadian Fixed Income
Foreign Exchange Forward Contracts
53.1
31.8
12.2
1.5
0.8
0.2
September 30, 2016
(%)
Canadian Equity
United States Equity
International Equity
Canadian Fixed Income
Foreign Exchange Forward Contracts
59.1
33.5
5.9
0.9
0.0
As at March 31, 2017, the total fair value of private and/or restricted
securities held within the Fund represented approximately $24,757,000
(September 30, 2016 – $24,598,000).
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives. Accordingly,
the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 20 percent change in
benchmark (September 30, 2016 – 25 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Canadian Stock Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
S&P/TSX Composite Index
March 31,
2017
September 30,
2016
192,145
217,257
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31, 2017
($’000)
Pound Sterling
United States Dollar
Hong Kong Dollar
South African Rand
Japanese Yen
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
76,812
315,468
14,088
4,470
11,267
– 76,812
(286,253) 29,215
– 14,088
–
4,470
(10,958)
309
8.8
3.3
1.6
0.5
0.0
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
823,231
–
–
–
823,231
–
–
($’000)
Pound Sterling
United States Dollar
Australian Dollar
South African Rand
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
44,629
293,082
2,941
10
– 44,629
(269,568) 23,514
–
2,941
–
10
5.6
2.9
0.4
0.0
–
20,474
–
–
20,474
1,711
(264)
Level 3
Total
24,757
–
–
–
24,757
–
–
847,988
20,474
–
–
868,462
1,711
(264)
September 30, 2016
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
765,201
–
–
–
765,201
–
–
Level 2
1
7,002
–
–
7,003
391
(275)
Level 3
Total
24,598
–
–
–
24,598
–
–
789,800
7,002
–
–
796,802
391
(275)
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
The following tables reconcile the Fund’s level 3 fair value
measurements for the periods ended March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
September 30, 2016
Level 2
Balance at Beginning of Period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
March 31, 2017
Debt
Equities Instruments Total
24,598
–
–
–
–
– 24,598
–
–
–
–
–
–
–
–
159
24,757
–
159
– 24,757
159
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $2,498,000 (September 30,
2016 – $1,422,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
183
AGF Canadian Stock Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
($’000)
Debt
Instruments
Equities
Balance at Beginning of period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
Total
29,738
–
(7)
–
(2,245)
–
–
–
–
–
29,738
–
(7)
–
(2,245)
(2,888)
24,598
–
–
(2,888)
24,598
(5,092)
The Manager utilizes a variety of valuation techniques in determining the
fair value of securities classified as level 3, including the use of
comparable recent arm’s length transactions, reference to other
instruments that are substantially the same, discounted cash flow
analysis, option pricing models and other techniques commonly used by
market participants. The key inputs used in the valuation techniques may
vary time to time depending on company specific factors and economic
or market conditions. As at March 31, 2017 and September 30, 2016, if
the value of the level 3 investments increased or decreased by 10 percent,
Net Assets would have increased or decreased, respectively, by
approximately $2,476,000 (September 30, 2016 – $2,460,000).
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
March 31, 2016
% of Gross
($’000)
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
% of Gross
Income
($’000)
79
–
(11)
100.0
–
(13.6)
106
–
(9)
100.0
–
(8.6)
(25)
(31.7)
(29)
(27.4)
43
54.7
68
64.0
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
184
77,231
–
81,322
77,847
–
82,372
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Diversified Income Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
213,456
485
1,394
–
416
–
–
–
1,564
27
217,342
September 30,
2016
$
239,002
187
–
–
52
473
–
–
1,988
45
241,747
$
$
–
–
123
–
69
167
329
86
496
–
–
1,270
216,072
197,547
$
$
619
–
92
–
61
131
585
130
1,673
26
–
3,317
238,430
222,325
$
$
$
$
$
$
$
$
$
$
129,331
–
14,403
1
–
17,538
54,799
–
–
–
$
$
$
$
$
$
$
$
$
$
148,814
–
13,574
–
–
18,201
57,841
–
–
–
$
$
$
$
$
$
$
$
$
$
15.00
–
16.15
10.12
–
10.63
17.17
–
–
–
$
$
$
$
$
$
$
$
$
$
15.08
–
16.11
–
–
10.60
17.09
–
–
–
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
185
AGF Diversified Income Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
186
2017
$
946
–
3,391
4,026
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
1,036
–
4,012
5,504
(768)
7,595
(1,560)
(9,302)
1,250
2,110
267
(1,293)
11
1,263
3,373
23
(35)
6,278
(262)
4,384
1,956
2,315
118
8
11
15
–
15
6
1
220
69
160
15
6
19
–
12
12
1
253
114
41
2,460
82
2,989
(349)
2,111
(307)
2,682
$
4,167
$
1,702
$
$
$
$
$
$
$
$
$
$
1,795
–
309
0
–
505
1,558
–
–
–
$
$
$
$
$
$
$
$
$
$
521
–
141
–
–
233
807
–
–
–
$
$
$
$
$
$
$
$
$
$
0.19
–
0.36
0.14
–
0.30
0.47
–
–
–
$
$
$
$
$
$
$
$
$
$
0.04
–
0.16
–
–
0.17
0.27
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents (bank overdraft)
beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
4,167
SEMI-ANNUAL REPORT 2017
$
–
1,702
172
(2,466)
(7,614)
501
(48,260)
8,039
(66,905)
74,774
94,747
–
–
–
–
424
634
–
18
–
(1)
8
36
29,202
2
(30)
30,746
(534)
6,396
(712)
15,370
(33,051)
(27,189)
(35,267)
(20,609)
–
(172)
2,013
10,137
$
(619)
1,394
$
6,712
16,677
$
3,782
$
4,643
$
910
$
932
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2016
AGF Diversified Income Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
2017
148,814
–
13,574
–
–
18,201
57,841
–
–
–
238,430
2016
$
183,610
–
13,641
–
–
13,766
48,084
–
–
–
259,101
1,795
–
309
0
–
505
1,558
–
–
–
4,167
521
–
141
–
–
233
807
–
–
–
1,702
4,253
–
2,606
1
–
812
1,668
–
–
–
9,340
8,269
–
1,871
–
–
3,718
4,578
–
–
–
18,436
2,354
–
165
–
–
449
1,338
–
–
–
4,306
2,982
–
134
–
–
382
1,314
–
–
–
4,812
(25,161)
–
(1,978)
–
–
(1,969)
(6,267)
–
–
–
(35,375)
(30,429)
–
(2,208)
–
–
(1,501)
(3,462)
–
–
–
(37,600)
(21,729)
(14,352)
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(727)
–
(222)
–
–
(460)
(1,339)
–
–
–
(2,748)
2016
$
–
–
–
–
–
–
–
–
–
–
–
(1,186)
–
(240)
–
–
(392)
(1,315)
–
–
–
(3,133)
–
–
–
–
–
–
–
–
–
–
–
(1,997)
–
(51)
–
–
–
–
–
–
–
(2,048)
(2,315)
–
(31)
–
–
–
–
–
–
–
(2,346)
(22,358)
(18,129)
129,331
–
14,403
1
–
17,538
54,799
–
–
–
161,452
–
13,308
–
–
16,206
50,006
–
–
–
216,072
$
240,972
187
AGF Diversified Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Average
Cost ($)
Face Value
Fair
Value ($)
Corporate Bonds (32.9%)
CAD
CAD
EUR
CAD
CAD
CAD
CAD
USD
USD
CAD
CAD
USD
USD
CAD
USD
CAD
USD
CAD
USD
CAD
CAD
USD
CAD
USD
USD
CAD
188
Face Value
Average
Cost ($)
Fair
Value ($)
950,000
998,911
1,188,389
1,239,337
2,270,532
2,363,117
1,099,791
1,109,771
2,051,148
2,174,283
1,000,000
1,170,000
2,168,250
2,176,125
1,126,742
1,140,255
1,767,402
2,329,767
1,072,207
1,095,702
778,263
1,154,799
1,184,150
1,159,522
2,018,587
2,106,972
2,814,454
2,740,000
1,158,150
1,354,889
1,076,518
1,143,866
2,468,517
2,534,295
1,357,624
1,368,914
1,300,000
1,527,500
2,227,190
2,430,301
1,550,000
1,619,414
566,064
67,229,326
548,305
71,090,336
1,014,690
1,048,753
1,201,453
1,209,155
2,080,234
2,160,869
Corporate Bonds (continued)
1,100,000 AGT Food and Ingredients Inc.
5.875% December 21, 2021
1,900,000 Aimia Inc.
5.600% May 17, 2019
1,425,000 Allied Irish Banks PLC
7.375% December 29, 2049
1,100,000 Bell Canada Inc.
2.900% August 12, 2026
1,525,000 Bell Canada Inc.
4.350% December 18, 2045
561,000 Boralex Inc. Convertible Bonds
4.500% June 30, 2020
1,925,000 Brookfield Asset
Management Inc.
4.540% March 31, 2023
650,000 CalAtlantic Group Inc.
Convertible Bonds
1.250% August 1, 2032
1,300,000 Canadian Oil Sands Limited
4.500% Series 144A
April 1, 2022
675,000 Canadian Pacific
Railway Company
6.450% November 17, 2039
625,000 Canadian Western Bank
2.788% September 13, 2021
1,050,000 Cenovus Energy Inc.
6.750% November 15, 2039
1,625,000 Citigroup Inc. Floating Rate
5.875% Series O
December 29, 2049
725,000 Cominar Real Estate
Investment Trust
4.247% May 23, 2023
761,000 Ctrip.com International
Limited Convertible Bonds
1.250% October 15, 2018
640,000 Element Fleet Management
Corporation
Convertible Debentures
5.125% June 30, 2019
750,000 Ensco Jersey Finance Limited
Convertible Bonds
3.000% January 31, 2024
3,295,000 Fairfax Financial
Holdings Limited
4.700% December 16, 2026
800,000 Finisar Corporation
Convertible Bonds
0.500% December 15, 2036
1,150,000 First Capital Realty Inc.
4.323% Series S
July 31, 2025
2,125,000 Great Canadian Gaming
Corporation
6.625% July 25, 2022
251,000 Hologic Inc. Convertible Bonds
2.000% Series 2012
March 1, 2042
905,000 Intact Financial Corporation
6.400% November 23, 2039
900,000 Intesa Sanpaolo SpA
Floating Rate
7.700% December 29, 2049
1,500,000 Just Energy Group Inc.
Convertible Bonds
6.500% July 29, 2019
600,000 Just Energy Group Inc.
Convertible Bonds
6.750% December 31, 2021
CAD
1,100,000
1,122,000
2,059,390
1,959,371
1,994,428
2,140,402
USD
CAD
1,055,076
1,516,885
613,226
1,989,333
952,214
1,080,352
1,509,718
670,171
2,113,597
893,036
CAD
USD
CAD
CAD
USD
1,653,538
1,736,135
USD
879,340
890,817
625,000
634,775
1,106,224
1,592,508
CAD
USD
2,059,447
2,235,291
CAD
734,882
737,678
CAD
1,114,620
1,327,638
CAD
USD
640,000
697,600
USD
1,053,379
973,076
USD
3,370,384
3,455,975
USD
1,085,533
1,037,283
CAD
1,162,293
1,233,799
USD
2,146,531
2,215,312
469,315
464,806
1,109,291
1,208,609
1,105,986
1,143,006
CAD
USD
950,000 Leisureworld Senior Care
Limited Partnership
3.474% February 3, 2021
650,000 Microchip Technology Inc.
Convertible Bonds
1.625% February 15, 2025
2,275,000 Morgan Stanley
3.125% August 5, 2021
1,100,000 Morgan Stanley
3.000% February 7, 2024
1,635,000 Navistar International
Corporation
8.250% November 1, 2021
1,000,000 Northland Power Inc.
Convertible Bonds
4.750% June 30, 2020
2,100,000 Parkland Fuel Corporation
5.750% September 16, 2024
865,000 Pattern Energy Group Inc.
Convertible Bonds
4.000% July 15, 2020
1,635,000 Prudential Financial Inc.
Floating Rate
5.625% June 15, 2043
1,075,000 RioCan Real Estate
Investment Trust
3.287% Series W
February 12, 2024
770,000 Southern Copper Corporation
6.750% April 16, 2040
1,000,000 TD Capital Trust IV
Floating Rate
6.631% June 30, 2108
2,025,000 TELUS Corporation
3.200% Series CO
April 5, 2021
2,550,000 TELUS Corporation
5.150% November 26, 2043
875,000 Teradyne Inc.
Convertible Bonds
1.250% December 15, 2023
765,000 The Priceline Group Inc.
Convertible Bonds
0.900% September 15, 2021
1,615,000 The Royal Bank of Scotland
Group PLC
7.648% August 29, 2049
1,125,000 TransCanada PipeLines
Limited Floating Rate
6.350% May 15, 2067
1,300,000 Tricon Capital Group Inc.
Convertible Bonds
5.600% March 31, 2020
1,700,000 UBS Group AG Floating Rate
7.000% December 29, 2049
1,550,000 Wells Fargo & Company
3.874% May 21, 2025
205,000 Xilinx Inc. Convertible Bonds
2.625% June 15, 2017
Emerging Markets Bonds (2.5%)
USD
USD
1,839,033
600,000
1,895,036
PEN
750,000 Cemex Finance LLC
6.000% April 1, 2024
830,000 Republic of Hungary
6.250% January 29, 2020
4,800,000 Republic of Peru
7.840% August 12, 2020
636,300
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Diversified Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Face Value/
No. of Shares
Average
Cost ($)
Fair
Value ($)
Emerging Markets Bonds (continued)
MXN
No. of Shares
NOK
USD
USD
USD
USD
1,167,166
5,463,543
965,828
5,384,605
6,500,000 Government of Canada
5.000% June 1, 2037
3,500,000 Kingdom of Norway
3.750% May 25, 2021
7,000,000 U.S. Treasury Inflation Index
Linked Notes
0.125% April 15, 2020
1,150,000 U.S. Treasury Inflation Index
Linked Notes
0.125% January 15, 2023
7,650,000 U.S. Treasury Notes
2.250% November 15, 2024
5,225,000 U.S. Treasury Notes
4.500% February 15, 2036
9,015,095
9,359,875
631,267
603,799
13,500
8,700
4,500
20,000
3,000
7,500
USD
USD
USD
USD
USD
USD
CAD
CAD
CAD
CAD
USD
1,675,000 Ally Financial Inc.
5.750% November 20, 2025
1,500,000 Cascades Inc.
5.500% July 15, 2022
1,275,000 CCO Holdings LLC/
Capital Corporation
5.125% February 15, 2023
835,000 Covanta Holding Corporation
5.875% July 1, 2025
800,000 First Quantum
Minerals Limited
7.250% Series 144A
April 1, 2023
1,200,000 Frontier Communications
Corporation
9.250% July 1, 2021
1,035,000 ILFC E-Capital Trust II
Floating Rate
4.910% December 21, 2065
2,000,000 Newalta Corporation
5.875% April 1, 2021
2,075,000 Quebecor Media Inc.
6.625% January 15, 2023
1,658,000 Sirius XM Canada
Holdings Inc.
5.625% April 23, 2021
325,000 Source Energy Services Canada
Limited Partnership/
Holdings Limited
10.500% December 15, 2021
950,000 Teck Resources Limited
5.200% March 1, 2042
9,536,058
1,598,051
1,607,676
10,067,561
10,148,316
7,663,649
38,511,681
8,812,066
40,326,976
2,134,444
2,280,402
1,925,606
1,989,788
1,669,763
1,742,186
31,000
355,800
17,600
10,000
36,700
37,300
35,000
4,700
36,800
1,128,162
1,112,507
2,700
1,068,114
1,075,849
16,500
52,500
12,600
48,500
9,800
1,591,124
1,611,778
1,324,159
1,293,811
796,376
476,802
429,588
549,241
339,734
650,400
4,913,276
919,013
499,293
515,909
697,790
585,785
788,734
5,826,968
599,884
539,475
564,752
642,325
566,661
718,289
481,554
522,999
574,139
4,003,001
677,552
856,987
464,049
603,818
549,042
4,358,525
496,000
671,578
1,046,839
564,880
624,858
894,012
478,030
465,743
466,550
565,004
976,472
557,100
714,182
1,179,569
545,300
609,716
721,070
851,920
685,046
600,952
551,167
764,293
1,242,566
538,685
10,345,719
668,677
600,557
514,500
495,813
1,295,435
488,726
10,529,521
594,298
603,481
561,783
815,036
1,735,000
1,760,000
706,966
833,373
707,362
605,787
727,790
960,318
837,327
727,587
2,075,000
2,235,371
1,664,488
1,682,870
550,057
791,612
584,691
480,875
391,349
455,793
636,442
501,766
717,991
549,840
920,587
683,496
415,378
451,203
1,057,167
743,085
623,334
913,155
368,437
380,315
1,149,139
17,833,436
1,187,556
18,352,433
616,524
760,578
556,065
537,153
473,080
696,887
485,437
775,120
444,383
646,499
596,021
13,191,302
403,088
922,879
483,001
15,354,342
Energy (4.9%)
Cenovus Energy Inc.
CNOOC Limited
Devon Energy Corporation
Enbridge Inc.
Enbridge Inc. Preferred Series 3
Enbridge Inc. Preferred Series L
Encana Corporation
EOG Resources Inc.
Pembina Pipeline Corporation
Preferred 4.500% Series 7
Pioneer Natural
Resources Company
Royal Dutch Shell PLC ‘B’
Secure Energy Services Inc.
The Williams Companies Inc.
TransCanada Corporation
Vermilion Energy Inc.
Financials (7.1%)
1,229,658
1,240,160
1,350,000
2,579,658
1,356,372
2,596,532
546,906
349,108
775,121
599,869
385,735
834,840
Consumer Discretionary (2.7%)
12,000 Comcast Corporation
3,500 Dollarama Inc.
11,000 Las Vegas Sands Corporation
9,400 Alimentation Couche-Tard
Inc. ‘B’
4,400 Anheuser-Busch InBev SA/NV
27,200 George Weston Limited
Preferred Series IV
5,800 Henkel AG & Company KGaA
8,100 Mondelez International Inc. ‘A’
5,000 The Kraft Heinz Company
14,000 The Kroger Company
9,795,244
Supranational Bonds (1.2%)
IDR 12,290,000,000 European Bank for
Reconstruction
and Development
7.375% April 15, 2019
CAD
1,350,000 The Export-Import Bank
of Korea
1.927% February 24, 2020
Lennar Corporation ‘A’
Magna International Inc.
Omnicom Group Inc.
Persimmon PLC
The Home Depot Inc.
The TJX Companies Inc.
Consumer Staples (2.0%)
High Yield Bonds (8.5%)
USD
Fair
Value ($)
Consumer Discretionary (continued)
12,900,000 United Mexican States
8.000% Series M
December 7, 2023
Government Bonds (18.7%)
CAD
Average
Cost ($)
67,000 AIA Group Limited
100,000 Banco Santander SA
680,500 China Construction Bank
Corporation ‘H’
5,300 Chubb Limited
5,300 CME Group Inc. ‘A’
8,000 Discover Financial Services
21,750 Element Financial Corporation
Preferred Series E
6,000 Hannover Rueck SE
34,000 ING Groep NV
115,000 Intesa Sanpaolo SpA
11,077 Invesco Limited
9,050 JPMorgan Chase & Company
31,500 Manulife Financial Corporation
2,500 MarketAxess Holdings Inc.
13,000 MetLife Inc.
91,000 Mitsubishi UFJ Financial
Group Inc.
17,000 National General
Holdings Corporation
18,750 Power Corporation of Canada
Preferred Series C
8,000 Royal Bank of Canada
7,800 TD Ameritrade
Holding Corporation
14,800 Unum Group
40,000 WisdomTree Investments Inc.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
189
AGF Diversified Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
No. of Shares
Average
Cost ($)
Fair
Value ($)
527,247
549,529
649,898
534,102
240,629
496,740
469,369
292,152
428,458
512,290
433,903
612,841
599,943
560,239
721,455
469,424
1,995,951
304,529
401,077
6,427,136
1,124,129
531,089
741,570
6,769,428
591,657
560,621
674,890
461,192
578,299
663,076
513,415
671,646
533,571
566,450
830,292
506,701
843,373
456,533
553,633
520,084
484,279
6,403,702
1,296,795
522,121
564,714
717,598
634,458
7,341,696
417,016
476,320
386,298
604,173
594,589
526,995
548,944
653,887
781,141
1,164,736
642,653
858,152
581,609
597,280
558,606
713,118
561,405
627,800
578,950
852,021
832,047
728,452
674,526
535,221
586,924
530,251
958,881
639,548
9,973,280
1,220,137
800,631
557,825
529,368
1,152,402
615,880
13,114,506
Health Care (3.1%)
15,000
5,800
7,400
9,500
Acuity Brands Inc.
AO Smith Corporation
Brambles Limited
Fortune Brands Home &
Security Inc.
Honeywell International Inc.
Keppel Corporation Limited
Northrop Grumman
Corporation
Park24 Company Limited
Schneider Electric SE
Waste Management Inc.
Xylem Inc.
14,500
3,900
8,786
48,150
6,000
100,000
15,000
1,900
2,500
1,600
9,500
9,300
1,000
21,000
53,100
33,300
10,500
8,000
190
Amphenol Corporation ‘A’
Analog Devices Inc.
Applied Materials Inc.
Broadcom Limited
Canon Inc.
Corning Inc.
FUJIFILM Holdings
Corporation
International Business
Machines Corporation
Keyence Corporation
Microsoft Corporation
Paychex Inc.
Samsung Electronics Company
Limited GDR
Tencent Holdings Limited
The Sage Group PLC
VTech Holdings Limited
Western Digital Corporation
Xilinx Inc.
Agnico Eagle Mines Limited
Agrium Inc.
Croda International PLC
First Quantum
Minerals Limited
Franco-Nevada Corporation
OceanaGold Corporation
Silver Wheaton Corporation
Vulcan Materials Company
44,475 Brookfield Office Properties
Inc. Preferred Series P
700 Equinix Inc.
20,000 Invitation Homes Inc.
550,436
488,780
534,297
818,090
494,988
521,731
406,552
456,289
470,170
388,280
253,476
3,548,280
680,360
522,720
394,000
415,650
304,419
4,151,958
813,769
336,401
521,880
1,672,050
916,185
372,702
580,613
1,869,500
469,517
580,127
333,819
563,604
679,440
444,280
449,903
834,419
423,260
2,256,626
436,205
2,957,948
720,392
711,070
808,787
655,291
389,237
3,284,777
811,804
664,698
851,440
699,923
403,144
3,431,009
Telecommunication Services (1.4%)
10,200
38,000
10,271
14,700
AT&T Inc.
BCE Inc. Preferred Series AK
Freenet AG
Nippon Telegraph and
Telephone Corporation
3,100 T-Mobile US Inc.
Convertible Preferred
5.500%
Utilities (1.6%)
36,700 Brookfield Renewable Power
Preferred Equity Inc.
27,800 Fortis Inc. Preferred Series F
36,700 Fortis Inc. Preferred Series M
4,100 NextEra Energy Inc.
5,000 WEC Energy Group Inc.
Information Technology (6.1%)
5,800
6,000
15,100
4,000
15,500
23,900
11,500
Fair
Value ($)
Real Estate (0.8%)
Industrials (3.4%)
5,000
76,800
4,100
Average
Cost ($)
Materials (1.9%)
7,500 AbbVie Inc.
30,500 Astellas Pharma Inc.
2,100 Becton Dickinson
and Company
6,000 Bristol-Myers Squibb Company
3,700 Johnson & Johnson
5,600 Medtronic PLC
3,200 Stryker Corporation
11,000 Teva Pharmaceutical Industries
Limited ADR
1,465 Teva Pharmaceutical Industries
Limited Convertible
Preferred 7.000%
2,600 Thermo Fisher Scientific Inc.
3,400 UnitedHealth Group Inc.
1,700
8,500
69,800
7,000
No. of Shares
Commissions and other portfolio
transaction costs (Note 2)
Total Investments (98.8%)
Foreign Exchange Forward Contracts (0.2%)
See Schedule A
Total Portfolio (99.0%)
(89,332)
–
197,547,461 213,456,283
–
361,811
197,547,461 213,818,094
ADR – American Depository Receipt
GDR – Global Depository Receipt
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Diversified Income Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Diversified Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
JPY
USD
USD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
9,146,000
650,000
1,800,000
2,510,462
4,665,616
2,206,024
3,349,857
1,300,255
14,913,522
23,281,717
16,461,006
7,210,280
13,843,314
22,621,196
CAD
CAD
CAD
EUR
EUR
GBP
JPY
JPY
USD
USD
USD
USD
USD
USD
Sold Currency
Forward Rate
Maturity Date
109,070
874,565
2,408,292
1,743,000
3,240,000
1,330,000
284,366,000
109,540,000
11,050,000
17,425,000
12,370,000
5,420,000
10,396,000
17,040,000
83.8545
0.7432
0.7474
1.4403
1.4400
1.6587
0.0118
0.0119
1.3496
1.3361
1.3307
1.3303
1.3316
1.3275
April 13, 2017
April 13, 2017
April 21, 2017
April 28, 2017
April 28, 2017
April 28, 2017
April 13, 2017
April 24, 2017
April 13, 2017
April 21, 2017
April 28, 2017
April 28, 2017
April 28, 2017
April 28, 2017
Fair Value ($)
Counterparty
Credit Rating
217 The Bank of New York Mellon Corporation
(10,326)
Royal Bank of Canada
(15,293)
The Toronto-Dominion Bank
35,590
Royal Bank of Canada
65,165
The Toronto-Dominion Bank
(10,525)
Royal Bank of Canada
(48,080) The Bank of New York Mellon Corporation
(9,032)
Citibank NA
221,457
Royal Bank of Canada
116,155
The Toronto-Dominion Bank
17,458
Bank of America
5,427
Citibank NA
23,821 The Bank of New York Mellon Corporation
(30,223)
The Bank of Nova Scotia
361,811
A
AA
AA
AA
AA
AA
A
A
AA
AA
BBB
A
A
A
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
191
AGF Diversified Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to achieve a high level of current
income and long-term growth of capital by investing primarily in a
diversified portfolio of income, dividend and distribution paying
Canadian securities including common shares, income trusts and other
types of equity and fixed income securities.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
United States
Canada
United Kingdom
Japan
South Korea
Switzerland
Germany
Peru
Ireland
China
Mexico
Israel
Italy
Cayman Islands
Hungary
Hong Kong
Jersey
Spain
Netherlands
Australia
Belgium
Norway
France
Singapore
Foreign Exchange Forward Contracts
44.8
36.1
2.8
2.2
1.2
1.1
1.0
1.0
1.0
1.0
0.9
0.7
0.7
0.6
0.6
0.5
0.5
0.4
0.3
0.3
0.3
0.3
0.3
0.2
0.2
September 30, 2016
(%)
United States
Canada
United Kingdom
Switzerland
Mexico
China
Japan
Peru
Israel
Germany
Italy
Netherlands
Cayman Islands
Hungary
South Korea
France
Australia
Belgium
Portugal
Norway
Spain
Hong Kong
Singapore
Foreign Exchange Forward Contracts
47.6
35.0
3.3
2.1
1.5
1.5
1.4
1.0
0.8
0.8
0.8
0.6
0.6
0.5
0.5
0.4
0.4
0.3
0.3
0.3
0.2
0.2
0.2
0.0
Portfolio by Sector
March 31, 2017
(%)
Corporate Bonds
Government Bonds
High Yield Bonds
Financials
Information Technology
Energy
Industrials
Health Care
Consumer Discretionary
Emerging Markets Bonds
Consumer Staples
Materials
Utilities
Telecommunication Services
Supranational Bonds
Real Estate
Foreign Exchange Forward Contracts
32.9
18.7
8.5
7.1
6.1
4.9
3.4
3.1
2.7
2.5
2.0
1.9
1.6
1.4
1.2
0.8
0.2
September 30, 2016
(%)
Corporate Bonds
Government Bonds
High Yield Bonds
Financials
Health Care
Information Technology
Industrials
Consumer Staples
Energy
Emerging Markets Bonds
Consumer Discretionary
Materials
Utilities
Telecommunication Services
Real Estate
Supranational Bonds
Foreign Exchange Forward Contracts
35.7
19.4
10.7
4.9
4.1
3.9
3.3
3.2
3.2
3.1
2.5
2.1
1.5
1.3
0.9
0.5
0.0
Portfolio by Asset Mix
192
March 31, 2017
(%)
Canadian Fixed Income
United States Fixed Income
United States Equity
International Equity
International Fixed Income
Canadian Equity
Foreign Exchange Forward Contracts
27.5
27.4
17.4
9.0
8.9
8.6
0.2
September 30, 2016
(%)
United States Fixed Income
Canadian Fixed Income
United States Equity
International Equity
International Fixed Income
Canadian Equity
Foreign Exchange Forward Contracts
32.6
28.6
15.0
9.5
8.2
6.4
0.0
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Diversified Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund invested in
debt instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
March 31,
2017
September 30,
2016
19.2
0.8
3.1
17.4
11.1
8.4
1.8
7.9
19.6
(0.0)
2.4
19.5
14.7
7.7
2.3
7.4
Interest Rate Risk
As at March 31, 2017 and September 30, 2016, the Fund’s exposure to
debt instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
March 31,
2017
September 30,
2016
548
9,685
33,683
93,835
3,791
10,292
38,490
112,765
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at March 31, 2017 and September 30, 2016, if the yield curve had
shifted in parallel by 25 basis points, with all other variables held
constant, Net Assets would have increased or decreased, respectively,
by approximately $2,199,000 (September 30, 2016 – $2,561,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 15 percent change in
benchmarks (September 30, 2016 – 20 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
March 31,
2017
September 30,
2016
29,631
31,774
44,827
48,930
FTSE TMX Canada Universe Bond Index
Blended Benchmark
The Blended Benchmark is composed of 50% FTSE TMX Canada
Universe Bond Index, 25% Bloomberg Barclays U.S. Corporate HighYield Bond Index (local$), 15% MSCI All Country World Index (local$)
and 10% S&P/TSX Composite Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31, 2017
($’000)
United States Dollar
Hong Kong Dollar
Peruvian New Sol
Indonesian Rupiah
Mexican Peso
Australian Dollar
Norwegian Krone
Singapore Dollar
Euro Currency
Pound Sterling
Japanese Yen
Swiss Franc
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
118,845
3,185
2,161
1,240
966
663
604
507
7,486
2,387
4,755
16
(94,720)
–
–
–
–
–
–
–
(7,075)
(2,217)
(4,598)
–
24,125
3,185
2,161
1,240
966
663
604
507
411
170
157
16
11.2
1.5
1.0
0.6
0.4
0.3
0.3
0.2
0.2
0.1
0.1
0.0
** Includes both monetary and non-monetary instruments, as applicable
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
193
AGF Diversified Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
($’000)
United States Dollar
Hong Kong Dollar
Euro Currency
Peruvian New Sol
Mexican Peso
Indonesian Rupiah
Swiss Franc
Australian Dollar
Norwegian Krone
Singapore Dollar
Pound Sterling
Japanese Yen
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
139,212
3,941
6,708
2,465
2,369
1,257
852
840
649
398
3,963
3,351
(97,741)
–
(3,401)
–
–
–
–
–
–
–
(3,730)
(3,296)
41,471
3,941
3,307
2,465
2,369
1,257
852
840
649
398
233
55
17.4
1.7
1.4
1.0
1.0
0.5
0.4
0.4
0.3
0.2
0.1
0.0
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $684,000 (September 30,
2016 – $1,157,000).
The following table reconciles the Fund’s level 3 fair value
measurements for the period ended September 30, 2016.
September 30, 2016
($’000)
Balance at Beginning of Period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
75,705
–
–
–
75,705
–
–
–
137,751
–
–
137,751
485
(123)
Level 1
Level 2
73,664
–
–
–
73,664
–
–
–
165,338
–
–
165,338
187
(92)
Level 3
–
–
–
–
–
–
–
Total
75,705
137,751
–
–
213,456
485
(123)
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 3
–
–
–
–
–
–
–
–
–
–
–
–
37
–
–
–
(1,911)
1,874
–
–
–
1,874
–
–
March 31, 2017
March 31, 2016
% of Gross
($’000)
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
($’000)
% of Gross
Income
17
–
(1)
100.0
–
(6.4)
44
–
(11)
100.0
–
(25.8)
(5)
(28.9)
(10)
(22.3)
11
64.7
23
51.9
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September
2017
30, 2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
Total
73,664
165,338
–
–
239,002
187
(92)
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the period ended March 31, 2017, the Fund did not hold financial
instruments within level 3 of the fair value hierarchy.
194
37
–
–
–
(1,911)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
Net Securities Lending Income
March 31, 2017
Total
SECURITIES LENDING TRANSACTIONS (Note 2)
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
Debt
Instruments
Equities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
22,969
–
24,154
15,894
–
16,773
AGF Dividend Income Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
791,137
–
7,716
–
1,906
9,490
–
–
2,460
–
812,709
September 30,
2016
$
683,249
–
2,894
–
1,567
1,970
–
–
2,576
–
692,256
$
$
–
132
–
–
172
424
436
40
14,231
–
–
15,435
797,274
725,124
$
$
–
735
–
–
138
361
548
23
3,820
–
–
5,625
686,631
650,393
$
$
$
$
$
$
$
$
$
443,030
1,922
11,139
26,607
–
311,710
–
2,866
–
$
$
$
$
$
$
$
$
$
417,519
1,969
8,120
21,647
–
234,116
–
3,260
–
$
$
$
$
$
$
$
$
$
14.73
14.80
14.82
14.91
–
14.86
–
13.57
–
$
$
$
$
$
$
$
$
$
13.75
13.77
13.78
13.86
–
13.81
–
12.88
–
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
195
AGF Dividend Income Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
196
2017
$
12,249
–
663
18,043
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
9,012
–
99
4,861
33,766
64,721
(2,943)
25,743
39,715
(262)
(6)
(2,949)
31
(439)
(701)
15
(121)
61,682
(204)
38,825
4,743
3,439
394
10
11
32
–
24
–
1
589
288
437
21
7
17
–
17
13
1
421
268
528
6,620
260
4,901
(1,408)
5,212
(207)
4,694
$
56,470
$
34,131
$
$
$
$
$
$
$
$
$
33,274
150
759
2,059
–
19,989
–
239
–
$
$
$
$
$
$
$
$
$
29,424
174
348
1,500
–
2,504
–
181
–
$
$
$
$
$
$
$
$
$
1.10
1.12
1.14
1.26
–
1.20
–
1.01
–
$
$
$
$
$
$
$
$
$
0.89
1.07
0.91
1.04
–
1.09
–
0.85
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
56,470
SEMI-ANNUAL REPORT 2017
$
(1)
34,131
321
(15,100)
(4,599)
(33,760)
(307,071)
(25,304)
(88,926)
250,331
125,931
–
–
–
–
116
353
–
–
–
–
34
63
(48,918)
(2)
(59)
41,846
(469)
117,501
(594)
18,268
(63,293)
53,739
(51,998)
(34,324)
1
(321)
$
4,821
2,894
7,716
$
7,522
1,377
8,578
$
658
$
100
$
12,083
$
9,100
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2016
AGF Dividend Income Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
2017
417,519
1,969
8,120
21,647
–
234,116
–
3,260
–
686,631
2016
$
418,310
3,059
4,390
17,778
–
27,203
–
2,251
–
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
472,991
33,274
150
759
2,059
–
19,989
–
239
–
56,470
29,424
174
348
1,500
–
2,504
–
181
–
34,131
24,146
23
3,452
4,235
–
87,528
–
147
–
119,531
11,215
14
1,487
1,819
–
3,864
–
626
–
19,025
3,430
10
44
354
–
3,591
–
48
–
7,477
4,636
25
67
422
–
689
–
45
–
5,884
(31,496)
(219)
(1,146)
(1,334)
–
(29,923)
–
(754)
–
(64,872)
(48,109)
(1,342)
(939)
(1,368)
–
(1,411)
–
(75)
–
(53,244)
62,136
(28,335)
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(3,843)
(10)
(81)
(148)
–
(2,598)
–
(28)
–
(6,708)
2016
$
–
–
–
–
–
–
–
–
–
–
(4,849)
(10)
(51)
(222)
–
(346)
–
(33)
–
(5,511)
–
–
–
–
–
–
–
–
–
–
–
(1)
(9)
(206)
–
(993)
–
(46)
–
(1,255)
(302)
(16)
(29)
(200)
–
(343)
–
(35)
–
(925)
110,643
(640)
443,030
1,922
11,139
26,607
–
311,710
–
2,866
–
797,274
410,325
1,904
5,273
19,729
–
32,160
–
2,960
–
$
472,351
197
AGF Dividend Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Average
Cost ($)
No. of Shares
Fair
Value ($)
Long Positions:
Cineplex Inc.
Magna International Inc.
McDonald’s Corporation
Shaw Communications Inc. ‘B’
The Home Depot Inc.
7,662,719
11,972,931
8,818,722
13,010,559
14,369,126
55,834,057
Utilities (1.5%)
7,238,103
9,889,534
17,127,637
8,580,587
10,135,568
18,716,155
Investments – Long Positions (99.2%)
40,874,462
10,090,873
42,055,757
11,149,907
12,361,475
43,988,097
20,853,953
128,168,860
11,792,828
46,885,497
23,353,617
135,237,606
32,924,376
40,057,902
24,548,605
13,671,512
31,872,805
47,464,643
39,619,811
44,784,962
234,886,714
27,781,101
12,136,867
33,481,524
57,115,589
45,510,666
51,681,966
267,765,615
9,221,077
9,918,788
19,139,865
10,751,226
10,349,969
21,101,195
11,973,309
14,465,180
33,656,031
12,956,467
13,463,412
7,713,885
8,693,557
12,986,436
101,443,097
40,706,461
13,647,610
13,800,613
10,299,883
9,796,054
13,437,084
116,152,885
9,013,026
9,504,181
10,268,317
15,529,501
34,810,844
11,960,416
16,594,864
38,059,461
12,982,849
13,162,873
7,142,195
6,470,453
8,502,185
8,884,165
25,235,027
24,143,824
15,607,931
56,487,338
15,822,734
55,321,176
28,711,077
22,045,720
29,473,149
22,462,517
Financials (33.6%)
403,281 Bank of Montreal
242,270 Canadian Imperial Bank
of Commerce
459,208 CI Financial Corporation
951,991 Power Financial Corporation
589,489 Royal Bank of Canada
584,970 The Bank of Nova Scotia
775,889 The Toronto-Dominion Bank
Health Care (2.6%)
64,910 Johnson & Johnson
227,501 Pfizer Inc.
Industrials (14.6%)
56,851 3M Company
414,695 Canadian National
Railway Company
171,442 Emerson Electric Company
83,107 Honeywell International Inc.
28,943 Lockheed Martin Corporation
210,532 Toromont Industries Limited
286,078 WSP Global Inc.
Information Technology (4.8%)
211,444 Cisco Systems Inc.
51,647 International Business
Machines Corporation
367,143 Open Text Corporation
Materials (1.6%)
103,710 Agrium Inc.
Real Estate (6.9%)
449,337 Cominar Real Estate
Investment Trust
385,096 H&R Real Estate
Investment Trust
921,520 RioCan Real Estate
Investment Trust
484,320 Smart Real Estate
Investment Trust
Telecommunication Services (7.3%)
500,563 BCE Inc.
520,327 TELUS Corporation
198
91,227 Verizon Communications Inc.
5,968,756
56,725,553
5,914,264
57,849,930
254,061 Emera Inc.
Commissions and other portfolio
transaction costs (Note 2)
11,465,183
11,935,786
(538,578)
725,308,235
–
791,136,739
Short Positions:
Energy (17.0%)
754,905 Enbridge Inc.
264,592 Pembina Pipeline Corporation
431,182 Peyto Exploration &
Development Corporation
1,148,310 Suncor Energy Inc.
380,538 TransCanada Corporation
Fair
Value ($)
Telecommunication Services (continued)
7,622,279
12,579,340
7,248,007
12,487,274
12,671,973
52,608,873
Consumer Staples (2.3%)
90,343 Altria Group Inc.
179,585 The Coca-Cola Company
Average
Cost ($)
Long Positions (continued)
Consumer Discretionary (7.0%)
151,737
208,624
51,164
471,910
73,589
No. of Shares/
No. of Contracts
Equity Options Written (-0.0%)
113 3M Company
Call Options on April 2017
at USD 197.50
200 Agrium Inc.
Call Options on April 2017
at CAD 135.00
293 Altria Group Inc.
Call Options on April 2017
at USD 75.50
1,537 BCE Inc.
Call Options on April 2017
at CAD 60.00
448 Coca-Cola Company
Call Options on April 2017
at USD 43.00
124 Honeywell International Inc.
Call Options on April 2017
at USD 130.00
162 Johnson & Johnson
Call Options on April 2017
at USD 130.00
49 Lockheed Martin Corporation
Call Options on April 2017
at USD 275.00
417 Magna International Inc.
Call Options on April 2017
at CAD 58.00
568 Pfizer Inc.
Call Options on April 2017
at USD 35.50
1,624 TELUS Corporation
Call Options on April 2017
at CAD 44.00
110 The Home Depot Inc.
Call Options on April 2017
at USD 152.50
228 Verizon Communications Inc.
Call Options on April 2017
at USD 51.00
(8,901)
(3,907)
(6,200)
(6,400)
(19,567)
(779)
(24,592)
(28,434)
(12,668)
(9,532)
(12,417)
(5,772)
(11,247)
(3,447)
(14,589)
(6,907)
(26,688)
(43,785)
(9,859)
(2,266)
(16,240)
(17,864)
(8,078)
(1,902)
(6,697)
(177,743)
(910)
(131,905)
Commissions and other portfolio
transaction costs (Note 2)
(6,643)
–
Investments –
Equity Options Written (-0.0%)
(184,386)
(131,905)
Total Portfolio (99.2%)
725,123,849
791,004,834
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Dividend Income Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Dividend Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide investors with long-term
capital appreciation along with the potential for monthly income,
primarily through investing in high dividend yielding shares trading on
Canadian stock exchanges. The Fund may also invest in money market
instruments and fixed income investments issued by corporations and
governments of Canada.
Portfolio by Asset Mix
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
March 31, 2017
(%)
Canadian Equity
United States Equity
United States Equity Options Written
Canadian Equity Options Written
81.3
17.9
(0.0)
(0.0)
September 30, 2016
(%)
Canadian Equity
United States Equity
United States Equity Options Written
Canadian Equity Options Written
81.5
18.0
(0.0)
(0.1)
Portfolio by Country
March 31, 2017
(%)
Canada
United States
81.3
17.9
September 30, 2016
(%)
Canada
United States
81.4
18.0
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives. Accordingly,
the Fund was not subject to significant credit risk.
Portfolio by Sector
March 31, 2017
(%)
Financials
Energy
Industrials
Telecommunication Services
Consumer Discretionary
Real Estate
Information Technology
Health Care
Consumer Staples
Materials
Utilities
Equity Options Written
33.6
17.0
14.6
7.3
7.0
6.9
4.8
2.6
2.3
1.6
1.5
(0.0)
September 30, 2016
(%)
Financials
Energy
Industrials
Telecommunication Services
Real Estate
Consumer Discretionary
Health Care
Consumer Staples
Utilities
Materials
Information Technology
Equity Options Written
35.4
15.8
11.1
11.0
6.8
6.3
3.8
3.2
2.7
1.9
1.5
(0.1)
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 20 percent change in
benchmarks (September 30, 2016 – 25 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
S&P/TSX Composite Index
S&P/TSX 60 Index
March 31,
2017
September 30,
2016
135,316
136,270
148,913
152,213
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
199
AGF Dividend Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31, 2017
($’000)
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
145,807
–
145,807
18.3
September 30, 2016
($’000)
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
125,081
–
125,081
18.2
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $2,916,000 (September 30,
2016 – $2,502,000).
September 30, 2016
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
683,249
–
–
–
683,249
–
(735)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
791,137
–
–
–
791,137
–
(132)
200
Level 2
Level 3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
683,249
–
–
–
683,249
–
(735)
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
March 31, 2016
($’000)
% of Gross
Income
($’000)
% of Gross
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
44
–
–
100.0
–
–
21
–
–
100.0
–
–
(13)
(29.0)
(6)
(30.0)
Net Securities Lending Income
31
71.0
15
70.0
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
March 31, 2017
Level 1
–
–
–
–
–
–
–
Total
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
($’000)
Level 3
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
Level 2
Total
791,137
–
–
–
791,137
–
(132)
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
March 31,
2017
September 30,
2016
36,305
–
38,362
34,602
–
36,422
AGF EAFE Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
65,806
–
154
–
30
3,488
–
–
239
109
69,826
September 30,
2016
$
60,718
–
251
–
26
–
–
–
184
170
61,349
$
$
–
–
–
–
1
72
50
–
3,681
–
–
3,804
66,022
59,909
$
$
–
–
–
–
1
36
20
–
–
–
–
57
61,292
57,680
$
$
$
$
$
$
$
$
$
1,645
–
–
–
–
64,377
–
–
–
$
$
$
$
$
$
$
$
$
1,800
–
–
–
–
59,492
–
–
–
$
$
$
$
$
$
$
$
$
7.67
–
–
–
–
8.03
–
–
–
$
$
$
$
$
$
$
$
$
7.45
–
–
–
–
7.80
–
–
–
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
201
AGF EAFE Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
202
2017
$
785
58
2
(646)
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
2,859
3,058
–
747
–
3
1,336
(2,018)
68
–
–
–
8
–
–
2
(24)
3,042
(82)
(12)
320
299
34
6
11
7
–
9
3
1
48
93
42
11
7
9
–
8
5
1
48
142
145
677
130
702
(417)
260
(407)
295
$
2,782
$
(307)
$
$
$
$
$
$
$
$
$
44
–
–
–
–
2,738
–
–
–
$
$
$
$
$
$
$
$
$
(45)
–
–
–
–
(262)
–
–
–
$
$
$
$
$
$
$
$
$
0.19
–
–
–
–
0.35
–
–
–
$
$
$
$
$
$
$
$
$
(0.18)
–
–
–
–
(0.04)
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
2,782
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
SEMI-ANNUAL REPORT 2017
(307)
110
646
(1,336)
(2,859)
(40,803)
2,018
(43,976)
38,121
43,805
–
–
–
–
(55)
(90)
–
61
–
102
–
36
(2,071)
–
(8)
318
–
4,028
(2,054)
1,974
(1)
4,089
(4,971)
(883)
–
(110)
$
(97)
251
154
$
(565)
1,674
999
$
2
$
3
$
694
$
515
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
$
–
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued
Amounts paid on redemption of redeemable units
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
2016
AGF EAFE Equity Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
2017
1,800
–
–
–
–
59,492
–
–
–
61,292
44
–
–
–
–
2,738
–
–
–
2,782
2016
$
1,665
–
–
–
–
60,749
–
–
–
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
62,414
(45)
–
–
–
–
(262)
–
–
–
(307)
218
–
–
–
–
3,814
–
–
–
4,032
585
–
–
–
–
3,685
–
–
–
4,270
–
–
–
–
–
739
–
–
–
739
–
–
–
–
–
377
–
–
–
377
(417)
–
–
–
–
(1,667)
–
–
–
(2,084)
(304)
–
–
–
–
(4,640)
–
–
–
(4,944)
2,687
(297)
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(0)
–
–
–
–
(739)
–
–
–
(739)
2016
$
–
–
–
–
–
(378)
–
–
–
(378)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
4,730
(982)
1,645
–
–
–
–
64,377
–
–
–
66,022
1,901
–
–
–
–
59,531
–
–
–
$
61,432
203
AGF EAFE Equity Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares
Average
Cost ($)
Fair
Value ($)
267,648
407,320
948,124
964,936
393,485
393,731
906,828
400,628
1,023,310
840,478
5,174,232
434,921
439,946
1,063,709
400,558
1,201,870
967,113
5,880,373
532,758
619,191
782,254
874,430
458,161
828,030
1,286,191
512,624
1,104,565
1,617,189
547,901
180,163
728,064
658,210
167,829
826,039
611,987
582,548
600,092
695,530
670,299
480,529
933,583
618,303
757,009
1,254,869
5,358,391
980,368
756,626
842,836
1,320,924
5,747,112
1,139,350
988,315
623,562
333,860
667,119
465,496
395,710
477,849
421,326
620,739
770,569
352,669
721,269
7,977,833
1,334,260
1,241,523
659,910
339,431
748,875
508,738
410,002
531,914
437,747
673,474
966,897
332,628
857,425
9,042,824
682,146
434,608
506,790
1,623,544
807,912
400,864
565,307
1,774,083
341,000
634,706
975,706
353,107
749,472
1,102,579
388,230
315,876
637,881
422,309
337,982
707,398
Australia (8.9%)
Austria (0.9%)
Belgium (1.3%)
9,911 KBC Group NV
China (2.4%)
83,099 Sinopharm Group Company
Limited ‘H’
28,972 Tencent Holdings Limited
Denmark (1.3%)
14,533 Danske Bank AS
1,140 Pandora AS
France (8.7%)
7,853
5,823
3,829
3,357
BNP Paribas SA
Dassault Systemes SA
Ingenico Group SA
LVMH Moet Hennessy Louis
Vuitton SE
15,053 SCOR SE
6,553 Thales SA
19,637 TOTAL SA
Germany (13.7%)
5,416
9,418
4,305
2,798
10,045
1,745
4,005
22,827
9,997
4,558
35,599
5,649
4,707
Allianz SE
BASF SE
Bayer AG
Bayerische Motoren Werke AG
Brenntag AG
Continental AG
Covestro AG
Deutsche Telekom AG
Deutsche Wohnen AG
Henkel AG & Company KGaA
Infineon Technologies AG
ProSiebenSat.1 Media AG
Siemens AG
Hong Kong (2.7%)
110,960 Galaxy Entertainment
Group Limited
233,793 HKT Trust and HKT Limited
493,074 WH Group Limited
Japan (21.9%)
27,816 Amada Holdings
Company Limited
6,724 Asahi Group Holdings Limited
17,784 Bandai Namco Holdings Inc.
204
Fair
Value ($)
2,367 Daito Trust Construction
Company Limited
83,836 Fuji Electric Holdings
Company Limited
19,949 Hitachi Chemical
Company Limited
4,578 Hoya Corporation
19,885 Japan Post Bank
Company Limited
51,868 JXTG Holdings Inc.
12,150 Kao Corporation
1,643 Keyence Corporation
5,771 MEIJI Holdings
Company Limited
107,207 Mitsubishi UFJ Financial
Group Inc.
3,593 Murata Manufacturing
Company Limited
21,043 Nippon Steel & Sumitomo
Metal Corporation
10,676 Nippon Telegraph and
Telephone Corporation
3,459 Oracle Corporation Japan
6,746 Otsuka Holdings
Company Limited
21,965 Sekisui Chemical
Company Limited
7,921 SoftBank Group Corporation
23,159 Sumitomo Mitsui Financial
Group Inc.
4,361 Tokyo Electron Limited
18,406 Toyota Motor Corporation
433,228
432,452
553,737
661,946
630,602
218,174
733,943
292,892
316,256
336,220
843,934
787,695
328,027
338,719
885,893
874,919
677,449
639,030
822,450
896,036
597,466
679,619
624,289
644,741
557,859
252,255
606,004
262,784
355,647
404,682
389,992
759,119
490,903
743,881
1,102,927
594,150
1,443,578
13,639,014
1,118,997
633,186
1,328,405
14,464,748
889,530
905,756
570,734
686,826
888,619
3,941,465
935,126
1,048,261
686,058
923,315
1,027,627
4,620,387
858,592
1,315,306
755,255
517,785
3,446,938
922,131
1,517,198
799,192
498,394
3,736,915
693,419
470,219
1,163,638
734,765
499,756
1,234,521
860,124
500,664
1,444,447
69,839
2,875,074
871,869
850,784
1,500,080
66,380
3,289,113
569,524
985,951
670,443
612,235
616,635
692,867
797,583
745,127
738,081
627,180
1,007,987
651,780
655,841
649,613
790,536
846,284
777,549
811,248
Netherlands (7.0%)
8,260
52,145
24,107
12,030
15,554
Heineken NV
ING Groep NV
Koninklijke Ahold Delhaize NV
Randstad Holding NV
Unilever NV CVA
Spain (5.7%)
20,379 Actividades de Construccion y
Servicios SA
186,151 Banco Santander SA
17,050 Industria de Diseno Textil SA
19,517 Red Electrica Corporation
Sweden (1.9%)
29,278 Alfa Laval AB
12,612 Boliden AB
Switzerland (5.0%)
Italy (1.7%)
10,285 Atlantia SpA
207,496 Intesa Sanpaolo SpA
Average
Cost ($)
Japan (continued)
15,203 AGL Energy Limited
11,055 Commonwealth Bank
of Australia
68,711 Fortescue Metals
Group Limited
27,793 LendLease Group
11,607 Macquarie Group Limited
139,804 Medibank Private Limited
35,481 National Australia Bank Limited
29,672 Woodside Petroleum Limited
11,828 Voestalpine AG
No. of Shares
28,028
1,190
4,417
3,119
ABB Limited
Partners Group Holding AG
Roche Holding AG
UBS Group AG
United Kingdom (16.6%)
50,223
30,416
173,783
26,137
17,074
29,144
30,607
12,068
25,267
3i Group PLC
Admiral Group PLC
Barclays PLC
Compass Group PLC
Diageo PLC
Experian PLC
GlaxoSmithKline PLC
Imperial Brands PLC
Mondi PLC
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF EAFE Equity Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
No. of Shares
Average
Cost ($)
Fair
Value ($)
673,275
395,700
671,675
577,773
1,173,444
619,126
10,539,439
668,234
375,881
668,775
643,311
1,196,840
605,397
10,976,456
United Kingdom (continued)
43,641
3,239
5,509
12,030
34,271
20,739
Petrofac Limited
Randgold Resources Limited
Reckitt Benckiser Group PLC
Rio Tinto PLC
Royal Dutch Shell PLC ‘B’
WPP PLC
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (99.7%)
(135,220)
59,909,321
–
65,805,960
CVA – Bearer Depository Receipt
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF EAFE Equity Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
205
AGF EAFE Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term capital
appreciation by investing primarily in equity securities of issuers in
Europe, Australasia and the Far East.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
Portfolio by Sector
March 31, 2017
(%)
Financials
Industrials
Consumer Staples
Consumer Discretionary
Materials
Information Technology
Energy
Health Care
Telecommunication Services
Real Estate
Utilities
25.5
12.3
11.9
11.7
9.7
8.6
6.8
6.4
3.4
2.0
1.4
September 30, 2016
(%)
Financials
Consumer Staples
Industrials
Health Care
Materials
Consumer Discretionary
Information Technology
Telecommunication Services
Energy
Utilities
ETFs – International Equity
Real Estate
15.6
13.8
13.8
10.4
9.6
9.4
7.0
7.0
5.0
4.8
2.1
0.6
March 31, 2017
(%)
Japan
United Kingdom
Germany
Australia
France
Netherlands
Spain
Switzerland
Hong Kong
China
Sweden
Italy
Belgium
Denmark
Austria
21.9
16.6
13.7
8.9
8.7
7.0
5.7
5.0
2.7
2.4
1.9
1.7
1.3
1.3
0.9
September 30, 2016
(%)
Portfolio by Asset Mix
Japan
United Kingdom
Germany
Netherlands
Australia
Switzerland
France
Spain
Belgium
Denmark
China
Italy
Sweden
Hong Kong
Austria
Singapore
Norway
Finland
23.7
16.0
12.3
8.2
8.0
6.9
6.7
2.6
2.6
2.5
2.1
1.9
1.3
1.3
1.0
0.9
0.6
0.5
March 31, 2017
(%)
International Equity
99.7
September 30, 2016
(%)
International Equity
99.1
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017, the Fund had no investments in underlying funds
or exchange traded funds.
The Fund’s investment details in the exchange traded funds as at
September 30, 2016 is included in the following table:
September 30, 2016
iShares MSCI Australia ETF
iShares MSCI United Kingdom ETF
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
656
627
0.0
0.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives. Accordingly,
the Fund was not subject to significant credit risk.
206
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF EAFE Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The impact on Net Assets of the Fund due to a 25 percent change in
benchmark (September 30, 2016 – 30 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Currencies to which the Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
March 31, 2017
($’000)
Euro Currency
Japanese Yen
Pound Sterling
Australian Dollar
Hong Kong Dollar
Swiss Franc
Swedish Krona
Danish Krone
United States Dollar
MSCI EAFE Net Index
March 31,
2017
September 30,
2016
15,076
16,631
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions, and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
25,747
14,465
10,991
5,880
3,391
3,289
1,235
826
135
–
–
–
–
–
–
–
–
–
25,747
14,465
10,991
5,880
3,391
3,289
1,235
826
135
39.0
21.9
16.6
8.9
5.1
5.0
1.9
1.3
0.2
September 30, 2016
Impact on Net Assets ($’000)
Benchmark
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
($’000)
Euro Currency
Japanese Yen
Pound Sterling
Australian Dollar
Swiss Franc
Hong Kong Dollar
United States Dollar
Danish Krone
Swedish Krona
Singapore Dollar
Norwegian Krone
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
21,909
14,530
9,207
4,252
4,231
2,067
1,524
1,510
805
550
385
–
–
–
–
–
–
–
–
–
–
–
21,909
14,530
9,207
4,252
4,231
2,067
1,524
1,510
805
550
385
35.7
23.7
15.0
6.9
6.9
3.4
2.5
2.5
1.3
0.9
0.6
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $1,319,000 (September 30,
2016 – $1,219,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
207
AGF EAFE Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Level 2
Level 3
Total
65,806
–
–
–
65,806
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
65,806
–
–
–
65,806
–
–
Level 1
Level 2
Level 3
Total
60,718
–
–
–
60,718
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
60,718
–
–
–
60,718
–
–
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
% of Gross
($’000)
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
208
March 31, 2016
% of Gross
Income
($’000)
12
–
(0)
100.0
–
(0.1)
3
–
(0)
100.0
–
(6.1)
(4)
(31.9)
(1)
(28.2)
8
68.0
2
65.7
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
March 31,
2017
September 30,
2016
212
–
228
2,123
–
2,277
AGF Emerging Markets Balanced Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
30,877
–
1,630
–
3
46
–
–
68
–
32,624
September 30,
2016
$
36,291
–
378
–
118
9
–
–
72
–
36,868
$
$
–
–
–
–
15
67
58
–
68
–
–
208
32,416
28,281
$
$
–
–
–
–
15
28
136
–
208
–
–
387
36,481
33,296
$
$
$
$
$
$
$
$
$
29,218
–
3,198
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
33,333
–
3,148
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
10.70
–
10.89
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
10.62
–
10.92
–
–
–
–
–
–
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
209
AGF Emerging Markets Balanced Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
210
2017
$
1,234
5
445
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
(399)
1,285
–
1,341
9
381
(514)
1,217
–
–
–
–
–
–
–
–
1,285
(6)
1,211
363
465
55
7
11
–
–
10
–
1
55
–
81
12
6
1
–
10
–
1
73
–
–
502
–
649
(25)
477
(40)
609
$
808
$
602
$
$
$
$
$
$
$
$
$
719
–
89
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
544
–
58
–
0
–
–
–
–
$
$
$
$
$
$
$
$
$
0.24
–
0.31
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.14
–
0.21
–
0.15
–
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash distributions from underlying
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received *
Distributions from underlying funds received *
SEMI-ANNUAL REPORT 2017
$
–
602
6
(445)
(381)
399
(1,890)
514
(1,523)
8,411
10,100
(1,238)
–
(1,357)
–
4
16
–
–
–
–
–
39
6,088
–
(59)
7,918
(36)
1,485
(66)
1,527
(6,285)
(4,836)
(9,069)
(7,608)
–
(6)
$
1,252
378
1,630
$
310
2,839
3,143
$
$
5
–
$
$
9
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
808
2016
AGF Emerging Markets Balanced Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
2017
33,333
–
3,148
–
–
–
–
–
–
36,481
2016
$
42,288
–
3,071
–
1
–
–
–
–
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
45,360
719
–
89
–
–
–
–
–
–
808
544
–
58
–
0
–
–
–
–
602
1,066
–
560
–
–
–
–
–
–
1,626
1,465
–
347
–
–
–
–
–
–
1,812
568
–
91
–
–
–
–
–
–
659
1,163
–
126
–
–
–
–
–
–
1,289
(5,872)
–
(591)
–
–
–
–
–
–
(6,463)
(8,488)
–
(837)
–
(1)
–
–
–
–
(9,326)
(4,178)
(6,225)
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(225)
–
(64)
–
–
–
–
–
–
(289)
2016
$
(371)
–
(35)
–
–
–
–
–
–
(406)
–
–
–
–
–
–
–
–
–
–
(1,218)
–
(137)
–
–
–
–
–
–
(1,355)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(4,065)
(6,978)
29,218
–
3,198
–
–
–
–
–
–
35,754
–
2,628
–
–
–
–
–
–
32,416
$
38,382
211
AGF Emerging Markets Balanced Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
14,297,483
16,320,216
13,983,174
14,556,410
28,280,657
30,876,626
Equity Fund (50.4%)
1,150,932 AGF Emerging Markets
Fund – Series S Units
Fixed Income Fund (44.9%)
1,407,777 AGF Emerging Markets Bond
Fund – Series S Units
Total Portfolio (95.3%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Emerging Markets Balanced Fund (the “Fund”).
212
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Emerging Markets Balanced Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide above-average long-term
total return by investing primarily in a mix of emerging market equity
and fixed income (via mutual funds and/or underlying holdings), as well
as cash and cash equivalents.
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
MSCI Emerging Markets Index
J.P. Morgan GBIEM Global Diversified Index
Blended Benchmark
Portfolio by Sector
Impact on Net Assets ($’000)
Benchmark
March 31,
2017
September 30,
2016
4,553
6,057
6,962
4,936
6,907
7,745
The Blended Benchmark is composed of 50% MSCI Emerging Markets
Index, 20% J.P. Morgan GBIEM Global Diversified Index, 17.5%
J.P. Morgan CEMBI Broad Diversified Index and 12.5% J.P. Morgan
EMBI Global Index.
March 31, 2017
(%)
Equity Funds
Fixed Income Funds
50.4
44.9
September 30, 2016
(%)
Fixed Income Funds
Equity Funds
50.9
48.6
The Fund is indirectly exposed to credit, interest rate and currency risks,
as applicable, of the underlying funds as at March 31, 2017 and
September 30, 2016.
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the underlying funds as at March 31,
2017 and September 30, 2016 are included in the following tables:
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016
March 31, 2017
AGF Emerging Markets Bond Fund
AGF Emerging Markets Fund
September 30, 2016
AGF Emerging Markets Bond Fund
AGF Emerging Markets Fund
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
14,556
16,320
9.6
2.3
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
18,572
17,719
11.0
2.8
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 25 percent change in
benchmarks (September 30, 2016 – 25 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
30,877
30,877
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
30,877
30,877
–
–
Level 1
Level 2
Level 3
Total
–
–
–
36,291
36,291
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
36,291
36,291
–
–
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
213
AGF Emerging Markets Bond Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
214
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
141,802
–
6,660
–
532
–
–
–
2,188
–
151,182
September 30,
2016
$
156,219
–
9,769
–
619
–
–
–
2,212
–
168,819
$
$
–
–
–
–
7
90
122
14
–
–
–
233
150,949
136,412
$
$
–
–
–
–
6
28
41
12
–
–
–
87
168,732
150,262
$
$
$
$
$
$
$
$
$
16,879
–
5,908
–
563
127,599
–
–
–
$
$
$
$
$
$
$
$
$
19,287
–
5,942
–
785
142,718
–
–
–
$
$
$
$
$
$
$
$
$
10.31
–
10.37
–
10.28
10.34
–
–
–
$
$
$
$
$
$
$
$
$
10.32
–
10.36
–
10.26
10.32
–
–
–
AGF Emerging Markets Bond Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
–
–
4,410
236
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
–
–
3,960
773
(567)
4,079
–
(199)
4,534
267
–
–
6
(414)
(147)
9
(147)
3,938
(1,001)
3,395
857
751
60
6
11
14
–
11
3
1
122
84
63
11
7
6
–
10
6
1
107
23
–
1,169
5
990
(883)
286
(720)
270
$
3,652
$
3,125
$
$
$
$
$
$
$
$
$
237
–
109
–
8
3,298
–
–
–
$
$
$
$
$
$
$
$
$
485
–
86
–
23
2,531
–
–
–
$
$
$
$
$
$
$
$
$
0.13
–
0.19
–
0.13
0.24
–
–
–
$
$
$
$
$
$
$
$
$
0.22
–
0.19
–
0.29
0.23
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
$
12
3,125
955
(236)
(1,040)
567
(50,113)
613
(20,933)
64,199
53,928
–
–
–
(17)
24
553
–
–
–
–
1
62
18,168
1
(53)
37,132
(70)
23,969
(229)
9,134
(45,164)
(21,265)
(47,770)
(38,865)
(12)
(955)
$
(3,097)
9,769
6,660
$
(1,733)
12,252
9,564
$
4,350
$
4,492
$
–
$
–
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
3,652
2016
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
215
AGF Emerging Markets Bond Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
216
2017
19,287
–
5,942
–
785
142,718
–
–
–
168,732
2016
$
23,426
–
4,566
–
785
144,408
–
–
–
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
173,185
237
–
109
–
8
3,298
–
–
–
3,652
485
–
86
–
23
2,531
–
–
–
3,125
578
–
400
–
–
23,283
–
–
–
24,261
1,292
–
1,394
–
–
8,173
–
–
–
10,859
271
–
78
–
13
3,217
–
–
–
3,579
695
–
117
–
26
5,133
–
–
–
5,971
(3,190)
–
(505)
–
(229)
(41,700)
–
–
–
(45,624)
(3,968)
–
(876)
–
(45)
(43,798)
–
–
–
(48,687)
(17,784)
(31,857)
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(282)
–
(107)
–
(13)
(2,993)
–
–
–
(3,395)
2016
$
(22)
–
(9)
–
(1)
(224)
–
–
–
(256)
(381)
–
(104)
–
(21)
(2,989)
–
–
–
(3,495)
(453)
–
(85)
–
(16)
(2,145)
–
–
–
(2,699)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(17,783)
(34,926)
16,879
–
5,908
–
563
127,599
–
–
–
21,096
–
5,098
–
752
111,313
–
–
–
150,949
$
138,259
AGF Emerging Markets Bond Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value
Corporate Bonds (6.8%)
Emerging Markets Bonds (continued)
USD
USD
USD
USD
USD
USD
USD
USD
CLP
USD
450,000 BLT Finance BV
0.000% June 30, 2017
1,000,000 CNOOC Finance (2013) Limited
3.000% May 9, 2023
900,000 CNOOC Finance (2015)
USA LLC
3.500% May 5, 2025
1,600,000 Digicel Group Limited
8.250% September 30, 2020
800,000 Hyundai Capital Services Inc.
2.875% March 16, 2021
725,000 Klabin Finance SA
5.250% July 16, 2024
700,000 Kookmin Bank
1.625% August 1, 2019
200,000,000 Municipality Finance PLC
3.750% December 20, 2017
1,609,000 Southern Copper Corporation
7.500% July 27, 2035
369,962
13,842
1,078,101
1,297,641
1,208,628
1,184,488
1,644,643
1,828,597
1,076,014
1,061,670
958,304
969,733
914,557
917,667
391,991
402,687
2,145,733
9,787,933
2,605,318
10,281,643
2,514,382
2,551,736
1,670,912
2,143,818
2,175,203
2,548,072
1,044,981
1,257,187
378,151
522,392
2,511,767
2,759,439
496,485
645,869
2,031,567
2,226,110
897,754
992,925
1,417,977
1,533,751
Emerging Markets Bonds (73.3%)
USD
USD
USD
USD
USD
USD
USD
USD
USD
BRL
BRL
USD
USD
PEN
USD
MYR
MYR
USD
THB
THB
THB
THB
USD
1,965,000 Akbank T.A.S.
5.000% October 24, 2022
1,600,000 America Movil SAB de CV
3.125% July 16, 2022
1,850,000 Banco Santander Chile
3.875% September 20, 2022
909,000 Bancolombia SA
5.125% September 11, 2022
375,000 Celulosa Arauco y
Constitucion SA
4.750% January 11, 2022
2,000,000 Cemex SAB de CV
5.700% January 11, 2025
464,312 Dolphin Energy Limited
5.888% June 15, 2019
1,450,000 DP World Limited
6.850% July 2, 2037
730,000 Ecopetrol SA
5.375% June 26, 2026
3,500,000 Federal Republic of Brazil
10.000% January 1, 2021
7,400,000 Federal Republic of Brazil
10.000% Series F
January 1, 2023
2,100,000 Federal Republic of Brazil
4.250% January 7, 2025
100,000 Fibria Overseas
Finance Limited
5.500% January 17, 2027
1,000,000 Fondo Mivivienda SA
7.000% February 14, 2024
600,000 Government of Egypt
5.875% June 11, 2025
9,600,000 Government of Malaysia
3.418% August 15, 2022
4,800,000 Government of Malaysia
3.800% August 17, 2023
1,670,000 ICICI Bank Limited
5.750% November 16, 2020
61,000,000 Kingdom of Thailand
3.650% December 17, 2021
5,000,000 Kingdom of Thailand
4.750% December 20, 2024
25,000,000 Kingdom of Thailand
3.850% December 12, 2025
45,000,000 Kingdom of Thailand
2.125% December 17, 2026
1,000,000 Malayan Banking Berhad
3.250% September 20, 2022
3,194,920
3,232,128
2,491,002
2,750,795
128,452
133,271
399,530
411,953
749,800
779,957
3,178,063
2,812,702
1,504,827
1,422,796
2,405,966
2,433,607
2,222,456
2,527,458
188,214
223,266
1,015,627
1,061,772
1,679,345
1,656,802
1,141,583
1,334,371
1,950,000 OAO Gazprom SA
4.950% February 6, 2028
USD
263,000 Petrobras Global Finance BV
6.250% March 17, 2024
USD
1,240,000 Petroleos Mexicanos
6.625% June 15, 2035
USD
1,500,000 Republic of Argentina
7.500% April 22, 2026
CLP
595,000,000 Republic of Chile
5.500% August 5, 2020
USD
1,300,000 Republic of Chile
2.250% October 30, 2022
COP 3,338,000,000 Republic of Colombia
7.750% April 14, 2021
USD
600,000 Republic of Colombia
4.375% July 12, 2021
COP 4,700,000,000 Republic of Colombia
7.000% Series B
May 4, 2022
COP 2,900,000,000 Republic of Colombia
4.375% March 21, 2023
USD
600,000 Republic of Croatia
6.750% November 5, 2019
USD
800,000 Republic of Ghana
8.125% January 18, 2026
USD
500,000 Republic of Hungary
6.250% January 29, 2020
HUF 120,000,000 Republic of Hungary
6.000% Series 23/A
November 24, 2023
HUF 455,000,000 Republic of Hungary
5.500% Series 25/B
June 24, 2025
IDR 19,400,000,000 Republic of Indonesia
7.875% Series FR69
April 15, 2019
IDR 24,500,000,000 Republic of Indonesia
8.250% July 15, 2021
USD
2,600,000 Republic of Indonesia
3.750% April 25, 2022
IDR 9,000,000,000 Republic of Indonesia
5.625% May 15, 2023
USD
935,000 Republic of Peru
7.125% March 30, 2019
PEN
3,600,000 Republic of Peru
7.840% August 12, 2020
PEN
2,600,000 Republic of Peru
5.700% August 12, 2024
PLN
11,400,000 Republic of Poland
5.750% October 25, 2021
USD
600,000 Republic of Poland
5.000% March 23, 2022
PLN
3,000,000 Republic of Poland
2.500% July 25, 2026
ZAR
33,700,000 Republic of South Africa
7.750% Series 2023
February 28, 2023
ZAR
9,700,000 Republic of South Africa
10.500% December 21, 2026
PHP
43,000,000 Republic of the Philippines
3.900% November 26, 2022
USD
400,000 Republic of the Philippines
5.500% March 30, 2026
TRY
5,700,000 Republic of Turkey
8.500% July 10, 2019
TRY
3,600,000 Republic of Turkey
7.100% March 8, 2023
USD
1,500,000 Republic of Turkey
7.375% February 5, 2025
RUB 150,000,000 Russian Federation
6.800% December 11, 2019
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Average
Cost ($)
Fair
Value ($)
2,524,428
2,590,614
315,500
358,669
1,485,507
1,698,649
2,087,174
2,120,446
1,240,701
1,263,379
1,676,622
1,694,056
2,126,350
1,632,497
835,860
845,785
1,966,803
2,246,393
1,263,508
1,222,305
854,979
868,772
1,005,697
1,018,665
637,122
728,407
663,544
667,199
2,392,483
2,455,735
1,848,126
1,978,663
2,540,092
2,567,288
3,154,783
3,527,004
817,084
840,382
1,405,439
1,364,642
1,602,083
1,620,652
1,009,668
1,086,697
4,559,946
4,311,032
849,249
875,738
924,356
935,694
3,185,071
3,255,308
1,174,252
1,063,116
1,071,068
1,104,352
514,142
627,596
2,512,991
1,983,962
1,114,520
1,104,510
2,142,147
2,261,576
3,347,526
3,434,299
217
AGF Emerging Markets Bond Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value
Emerging Markets Bonds (continued)
Supranational Bonds (continued)
RUB
BRL
USD
USD
MXN
USD
MXN
MXN
USD
64,000,000 Russian Federation
7.750% September 16, 2026
909,000 Russian Federation
7.500% March 31, 2030
1,800,000 SM Investments Corporation
4.250% October 17, 2019
36,000,000 United Mexican States
4.750% June 14, 2018
3,200,000 United Mexican States
4.000% October 2, 2023
41,100,000 United Mexican States
5.750% March 5, 2026
21,000,000 United Mexican States
7.750% November 23, 2034
577,000 Vale Overseas Limited
4.375% January 11, 2022
1,451,817
1,497,967
1,491,075
1,453,811
BRL
1,825,787
2,465,312
2,460,273
2,503,551
4,305,406
4,383,185
3,026,479
2,672,112
1,499,462
1,543,877
605,823
106,953,907
780,061
110,616,135
1,290,153
1,441,225
1,811,214
1,762,635
592,485
757,615
345,917
335,530
278,574
293,986
238,900
275,290
187,356
172,881
220,301
272,719
836,088
873,975
1,020,028
1,205,195
1,092,617
1,086,487
1,375,041
1,383,044
1,082,705
1,102,754
572,809
10,944,188
616,385
11,579,721
1,304,822
1,462,835
1,955,148
1,966,896
350,730
370,810
348,962
310,633
Government Bonds (7.7%)
USD
RON
USD
RON
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
1,000,000 Dominican Republic
6.600% January 28, 2024
5,000,000 Government of Romania
5.950% Series 10YR
June 11, 2021
540,000 Government of Romania
4.375% August 22, 2023
1,000,000 Government of Romania
4.750% February 24, 2025
200,000 Islamic Republic of Pakistan
8.250% April 15, 2024
200,000 Kingdom of Morocco
4.250% December 11, 2022
200,000 Republic of Belize
4.938% February 20, 2034
315,500 Republic of Belize
4.938% Series 144A
February 20, 2034
600,000 Republic of Guatemala
5.750% June 6, 2022
800,000 Republic of Honduras
8.750% December 16, 2020
800,000 Republic of Panama
3.750% March 16, 2025
1,000,000 Republic of Paraguay
4.625% January 25, 2023
800,000 Republic of Serbia
4.875% February 25, 2020
1,000,000 Republic of Venezuela
9.250% September 15, 2027
INR
2,500,000 International Bank for
Reconstruction
and Development
11.750% November 4, 2020
3,700,000 International
Finance Corporation
10.500% April 17, 2018
120,000,000 International
Finance Corporation
6.300% November 25, 2024
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (93.9%)
1,100,000 ESAL GmbH
6.250% February 5, 2023
Supranational Bonds (5.2%)
IDR 19,000,000,000 Inter-American
Development Bank
7.875% March 14, 2023
INR
18,000,000 International Bank for
Reconstruction
and Development
6.375% August 7, 2018
COP 640,000,000 International Bank for
Reconstruction
and Development
8.000% March 2, 2020
218
Fair
Value ($)
840,729
1,154,878
1,510,058
1,601,510
2,415,489
7,421,116
2,456,509
7,861,236
–
–
136,411,966
141,801,570
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Emerging Markets Bond Fund (the “Fund”).
High Yield Bond (0.9%)
USD
Average
Cost ($)
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Emerging Markets Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to maximize total returns by
investing primarily in fixed income securities of emerging market
issuers.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
Mexico
United States
Brazil
Indonesia
Colombia
Turkey
Russia
Poland
Chile
Malaysia
Thailand
Peru
South Africa
The Philippines
Hungary
Luxembourg
United Arab Emirates
Romania
China
India
Argentina
South Korea
Bermuda
Dominican Republic
Paraguay
Republic of Honduras
Yugoslavia
Panama
Ghana
Guatemala
Croatia
Egypt
Republic of Venezuela
Belize
Finland
Pakistan
Morocco
Cayman Islands
Netherlands
11.7
6.9
6.7
5.9
5.4
5.2
4.2
4.1
4.0
3.7
3.6
3.0
2.9
2.8
2.5
2.4
1.9
1.9
1.6
1.6
1.4
1.3
1.2
1.0
0.9
0.8
0.7
0.7
0.7
0.6
0.6
0.5
0.4
0.3
0.3
0.2
0.2
0.1
0.0
September 30, 2016
(%)
Mexico
United States
Indonesia
Turkey
Colombia
Poland
Chile
Brazil
Malaysia
Thailand
Peru
Hungary
Russia
South Africa
The Philippines
Romania
Luxembourg
Cayman Islands
India
United Arab Emirates
Argentina
South Korea
Paraguay
Dominican Republic
Bermuda
Republic of Honduras
Guatemala
Vietnam
Singapore
Austria
China
Pakistan
Panama
Ghana
Croatia
Republic of Venezuela
Finland
Belize
Netherlands
Morocco
12.0
7.0
6.7
6.6
5.1
4.4
4.2
3.8
3.5
3.0
2.9
2.9
2.8
2.7
2.5
1.6
1.5
1.5
1.5
1.3
1.2
1.2
1.2
1.1
1.1
1.1
1.0
1.0
0.9
0.8
0.8
0.7
0.7
0.6
0.5
0.4
0.2
0.2
0.2
0.2
Portfolio by Sector
March 31, 2017
(%)
Emerging Markets Bonds
Government Bonds
Corporate Bonds
Supranational Bonds
High Yield Bonds
73.3
7.7
6.8
5.2
0.9
September 30, 2016
(%)
Emerging Markets Bonds
Corporate Bonds
Government Bonds
Supranational Bonds
High Yield Bonds
68.9
9.3
9.2
4.5
0.7
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
219
AGF Emerging Markets Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Portfolio by Asset Mix
March 31, 2017
(%)
International Fixed Income
United States Fixed Income
87.0
6.9
September 30, 2016
(%)
International Fixed Income
United States Fixed Income
85.6
7.0
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 25 percent change in
benchmarks (September 30, 2016 – 25 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund invested in
debt instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
March 31,
2017
September 30,
2016
5.2
0.3
20.2
40.3
23.0
4.8
1.9
2.6
4.5
0.7
21.6
37.9
21.6
8.7
1.7
1.7
Interest Rate Risk
As at March 31, 2017 and September 30, 2016, the Fund’s exposure to
debt instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
March 31,
2017
September 30,
2016
416
20,277
27,927
93,182
4,619
24,281
28,925
98,394
Benchmark
J.P. Morgan GBIEM Global Diversified Index
Blended Benchmark
September 30,
2016
23,465
34,596
24,176
38,151
The Blended Benchmark is composed of 40% J.P. Morgan GBIEM
Global Diversified Index, 35% J.P. Morgan CEMBI Broad Diversified
Index and 25% J.P. Morgan EMBI Global Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at March 31, 2017 and September 30, 2016, if the yield curve had
shifted in parallel by 25 basis points, with all other variables held
constant, Net Assets would have increased or decreased, respectively,
by approximately $1,680,000 (September 30, 2016 – $1,752,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
220
March 31,
2017
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Emerging Markets Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31, 2017
($’000)
United States Dollar
Brazilian Real
Indonesian Rupiah
Mexican Peso
Thai Baht
Colombian Peso
Polish Zloty
Russian Ruble
South African Rand
New Turkish Lira
Malaysian Ringgit
Hungarian Forint
Peruvian New Sol
Indian Rupee
New Romanian Leu
Chilean Peso
Philippine Peso
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
75,066
7,522
7,353
6,720
5,469
5,414
5,247
4,991
4,318
4,259
4,235
3,123
3,119
2,827
2,098
1,666
1,104
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
75,066
7,522
7,353
6,720
5,469
5,414
5,247
4,991
4,318
4,259
4,235
3,123
3,119
2,827
2,098
1,666
1,104
49.7
5.0
4.9
4.5
3.6
3.6
3.5
3.3
2.9
2.8
2.8
2.1
2.1
1.9
1.4
1.1
0.7
United States Dollar
Indonesian Rupiah
Mexican Peso
Brazilian Real
Polish Zloty
Colombian Peso
New Turkish Lira
Thai Baht
South African Rand
Malaysian Ringgit
Peruvian New Sol
Hungarian Forint
Russian Ruble
Indian Rupee
Chilean Peso
New Romanian Leu
Philippine Peso
March 31, 2017
($’000)
Level 1
Level 2
Level 3
Total
–
–
–
–
–
–
–
–
141,802
–
–
141,802
–
–
–
–
–
–
–
–
–
–
141,802
–
–
141,802
–
–
Level 1
Level 2
Level 3
Total
–
–
–
–
–
–
–
–
156,219
–
–
156,219
–
–
–
–
–
–
–
–
–
–
156,219
–
–
156,219
–
–
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
September 30, 2016
($’000)
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
86,415
8,542
7,653
5,906
5,812
5,463
5,350
5,030
4,569
4,560
3,496
3,285
3,184
2,307
2,295
1,935
1,160
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
86,415
8,542
7,653
5,906
5,812
5,463
5,350
5,030
4,569
4,560
3,496
3,285
3,184
2,307
2,295
1,935
1,160
51.2
5.1
4.5
3.5
3.4
3.2
3.2
3.0
2.7
2.7
2.1
1.9
1.9
1.4
1.4
1.1
0.7
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
% of Gross
($’000)
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
March 31, 2016
($’000)
% of Gross
Income
10
–
(2)
100.0
–
(21.1)
18
–
(5)
100.0
–
(26.7)
(2)
(18.3)
(4)
(22.0)
6
60.6
9
51.3
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $2,891,000 (September 30,
2016 – $3,139,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
March 31,
2017
September 30,
2016
2,914
–
3,074
917
–
974
221
AGF Emerging Markets Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
222
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
714,167
–
7,428
–
292
891
–
–
2,368
152
725,298
September 30,
2016
$
619,220
–
4,024
–
241
5,563
–
–
547
158
629,753
$
$
–
–
–
–
266
781
990
–
–
–
–
2,037
723,261
566,388
$
$
–
–
–
–
225
734
1,017
1
877
–
–
2,854
626,899
492,202
$
$
$
$
$
$
$
$
$
$
452,065
–
19,323
100,234
55,293
250
96,096
–
–
–
$
$
$
$
$
$
$
$
$
$
465,342
–
21,034
–
51,232
343
88,948
–
–
–
$
$
$
$
$
$
$
$
$
$
12.08
–
13.32
14.98
14.11
11.81
14.18
–
–
–
$
$
$
$
$
$
$
$
$
$
11.78
–
13.02
–
13.99
11.72
14.07
–
–
–
AGF Emerging Markets Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
10,039
–
9
23,238
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
4,679
–
24
18,195
20,761
54,047
–
405
23,303
–
–
–
22
–
–
21
34
54,103
(326)
22,998
6,109
6,123
602
13
40
135
–
31
3
1
717
689
696
35
33
103
–
20
22
1
729
594
631
8,971
528
8,884
(596)
8,375
(664)
8,220
$
45,728
$
14,778
$
$
$
$
$
$
$
$
$
$
23,919
–
1,067
10,628
3,693
6
6,415
–
–
–
$
$
$
$
$
$
$
$
$
$
9,265
–
536
–
1,624
12
3,341
–
–
–
$
$
$
$
$
$
$
$
$
$
0.61
–
0.71
1.37
0.98
0.30
0.95
–
–
–
$
$
$
$
$
$
$
$
$
$
0.21
–
0.26
–
0.41
0.69
0.46
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Increase (decrease) in foreign taxes payable
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
45,728
2016
$
(14)
14,778
572
(23,238)
(18,195)
(20,761)
(143,898)
(405)
(128,998)
181,898
160,798
–
–
–
–
(1,821)
(996)
–
6
–
–
41
47
–
37,988
30
(118)
1,280
28,746
(536)
94,787
(385)
65,080
(128,849)
(34,598)
(94,429)
(29,734)
14
(572)
$
3,390
4,024
7,428
$
(988)
7,984
6,424
$
9
$
24
$
7,531
$
3,091
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
223
AGF Emerging Markets Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
224
2017
465,342
–
21,034
–
51,232
343
88,948
–
–
–
2016
$
472,443
–
25,162
–
47,201
148
97,944
–
–
–
626,899
642,898
23,919
–
1,067
10,628
3,693
6
6,415
–
–
–
45,728
9,265
–
536
–
1,624
12
3,341
–
–
–
14,778
11,122
–
2,791
149,720
3,688
122
15,012
–
–
–
182,455
38,459
–
2,740
–
14,636
99
10,955
–
–
–
66,889
11,541
–
562
282
2,867
9
5,141
–
–
–
20,402
6,977
–
331
–
1,032
4
1,967
–
–
–
10,311
(47,909)
–
(5,467)
(60,090)
(3,320)
(221)
(14,279)
–
–
–
(131,286)
(61,669)
–
(5,615)
–
(5,354)
(2)
(23,000)
–
–
–
(95,640)
71,571
(18,440)
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series N Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
–
–
(158)
(135)
(1,527)
(5)
(2,736)
–
–
–
(4,561)
2016
$
(11,950)
–
(506)
(171)
(1,340)
(4)
(2,405)
–
–
–
(16,376)
(234)
–
–
–
(302)
(2)
(590)
–
–
–
(1,128)
(7,085)
–
(372)
–
(730)
(2)
(1,377)
–
–
–
(9,566)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
96,362
(14,356)
452,065
–
19,323
100,234
55,293
250
96,096
–
–
–
458,156
–
22,782
–
58,107
257
89,240
–
–
–
723,261
$
628,542
AGF Emerging Markets Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares
Average
Cost ($)
Fair
Value ($)
6,578,860
7,880,538
6,797,403
10,372,047
11,641,603
5,439,499
3,181,464
6,573,510
3,987,620
3,641,347
51,634,493
9,576,509
7,753,915
14,410,304
7,639,726
3,550,035
6,732,224
2,707,804
5,797,364
58,167,881
8,532,516
7,475,127
8,097,664
3,296,675
11,394,339
6,096,965
3,304,054
9,401,019
12,430,413
11,474,215
12,232,859
16,429,899
219,294
278,174
8,101,147
13,023,004
9,691,190
13,019,423
7,126,153
9,535,472
12,964,969
14,211,652
7,282,400
17,145,205
8,176,826
27,507,996
9,245,757
99,771,201
12,359,546
122,684,393
13,808,784
14,510,484
17,851,092
6,421,384
6,776,182
31,048,658
19,562,530
6,173,111
9,073,337
34,808,978
10,985,673
8,728,453
10,795,849
6,795,710
3,396,930
3,985,829
9,379,159
11,613,236
11,180,490
16,772,369
13,129,021
14,712,163
4,305,990
5,676,334
13,566,889
19,118,172
5,848,392
71,529,231
8,318,852
106,780,280
9,471,859
13,980,972
5,115,341
4,705,409
6,673,303
21,260,503
10,454,185
29,140,566
Argentina (1.1%)
173,576 Tenaris SA ADR
Banco Bradesco SA Preferred
Gerdau SA Preferred
Localiza Rent a Car SA
Lojas Americanas SA Preferred
Odontoprev SA
TOTVS SA
Vale SA ADR
Vale SA Preferred ‘A’
Canada (1.0%)
1,642,885 Eldorado Gold Corporation
Chile (1.3%)
22,069,812 Enel Americas SA
22,446,329 Enel Chile SA
China (17.0%)
86,170 China Biologic Products Inc.
4,324,980 China Overseas Land &
Investment Limited
1,136,795 China Overseas Property
Holdings Limited
2,059,428 China Resources Gas
Group Limited
8,198,718 CNOOC Limited
3,130,577 Haier Electronics Group
Company Limited
16,348,693 Industrial & Commercial Bank
of China Limited ‘H’
1,325,506 Sinopharm Group Company
Limited ‘H’
721,516 Tencent Holdings Limited
5,264,421 Weichai Power Company
Limited ‘H’
Czech Republic (2.0%)
294,026 Komercni banka AS
Hong Kong (4.8%)
2,333,088 AIA Group Limited
3,600,299 HKT Trust and HKT Limited
570,760 VTech Holdings Limited
India (14.8%)
1,112,327
785,889
732,866
2,562,888
145,486
215,377
501,518
1,284,245
758,472
Axis Bank Limited
Bharat Forge Limited
HCL Technologies Limited
ITC Limited
Lupin Limited
Mahindra & Mahindra Limited
Reliance Industries Limited
UPL Limited
Zee Entertainment
Enterprises Limited
Indonesia (4.0%)
11,973,810 PT Bank Mandiri (Persero) Tbk
3,578,719 PT Matahari Department
Store Tbk
25,364,189 PT Telekomunikasi Indonesia
(Persero) Tbk
Average
Cost ($)
Fair
Value ($)
10,344,958
7,728,806
2,783,347
4,427,232
3,970,600
3,622,890
8,586,794
12,485,205
10,627,281
12,111,577
12,339,067
17,441,779
3,493,693
4,124,721
39,171,556
4,462,490
5,078,918
51,579,969
6,968,017
4,411,547
11,379,564
11,544,899
5,938,071
17,482,970
10,764,425
13,013,265
7,921,964
8,911,957
10,391,883
27,225,804
7,223,007
11,534,626
13,645,658
32,403,291
6,146,247
8,820,618
12,374,475
11,034,002
8,749,053
10,179,209
18,886,042
37,193,680
12,760,433
58,987,815
15,711,089
82,867,033
13,856,413
5,763,394
14,218,805
6,478,836
11,365,658
30,985,465
25,940,074
46,637,715
7,744,405
10,773,324
1,841,587
2,122,373
8,259,434
8,457,974
10,456,298
13,810,383
3,592,135
5,366,525
403,101
32,296,960
469,042
40,999,621
Israel (1.1%)
Brazil (8.0%)
698,391
1,676,170
814,094
1,099,308
740,881
571,111
214,334
483,785
No. of Shares
181,109 Teva Pharmaceutical Industries
Limited ADR
Jersey (0.6%)
38,143 Randgold Resources
Limited ADR
Malaysia (0.5%)
264,393 British American Tobacco
Malaysia Berhad
Mexico (7.1%)
106,060 Fomento Economico Mexicano
SAB de CV
7,629,192 Genomma Lab Internacional
SAB de CV ‘B’
2,280,824 Grupo Financiero Banorte SAB
de CV ‘O’
1,545,511 Kimberly-Clark de Mexico SAB
de CV ‘A’
1,656,705 Wal-Mart de Mexico SAB de CV
Peru (2.4%)
53,162 Credicorp Limited
124,414 Southern Copper Corporation
Singapore (1.8%)
3,669,830 Singapore Technologies
Engineering Limited
South Africa (4.5%)
597,292 MTN Group Limited
753,237 The Foschini Group Limited
1,969,172 Woolworths Holdings Limited
South Korea (11.5%)
170,252
19,933
12,776
15,183
Hankook Tire Company Limited
Hugel Inc.
ORION Corporation
Samsung Electronics Company
Limited
283,515 Shinhan Financial Group
Company Limited
Taiwan (6.4%)
1,996,450 Delta Electronics Inc.
486,264 Eclat Textile Company Limited
3,131,541 Taiwan Semiconductor
Manufacturing
Company Limited
Thailand (5.7%)
1,472,889 Kasikornbank Public Company
Limited (Foreign)
290,163 Kasikornbank Public Company
Limited NVDR
2,349,987 PTT Exploration and Production
Public Company
Limited (Foreign)
4,726,513 Thai Oil Public Company
Limited NVDR
256,792 The Siam Cement Public
Company Limited
22,444 The Siam Cement Public
Company Limited NVDR
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
225
AGF Emerging Markets Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
No. of Shares
Average
Cost ($)
Fair
Value ($)
5,547,290
6,927,453
2,322,892
14,797,635
4,151,745
6,119,292
2,969,628
13,240,665
9,196,268
9,313,828
Turkey (1.8%)
947,922 Turkcell Iletisim Hizmetleri AS
1,887,572 Turkiye Garanti Bankasi AS
89,977 Turkiye Petrol Rafinerileri AS
United Arab Emirates (1.3%)
1,994,091 First Gulf Bank PJSC
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (98.7%)
(1,074,775)
566,388,207
–
714,166,551
ADR – American Depository Receipt
NVDR – Non-voting Depository Receipt
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Emerging Markets Fund (the “Fund”).
226
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Emerging Markets Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide superior capital growth by
investing primarily in shares of companies that are located or active
mainly in emerging market countries.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
China
India
South Korea
Brazil
Mexico
Taiwan
Thailand
Hong Kong
South Africa
Indonesia
Peru
Czech Republic
Turkey
Singapore
Chile
United Arab Emirates
Argentina
Israel
Canada
Jersey
Malaysia
17.0
14.8
11.5
8.0
7.1
6.4
5.7
4.8
4.5
4.0
2.4
2.0
1.8
1.8
1.3
1.3
1.1
1.1
1.0
0.6
0.5
September 30, 2016
(%)
China
India
South Korea
Taiwan
Mexico
Brazil
Thailand
Hong Kong
South Africa
Indonesia
Peru
Czech Republic
Turkey
Singapore
Canada
United Arab Emirates
Malaysia
Israel
Chile
Argentina
Jersey
18.0
12.7
11.5
8.2
7.5
6.1
6.1
4.6
4.3
3.7
2.6
2.0
2.0
1.7
1.3
1.2
1.2
1.2
1.1
1.0
0.8
Portfolio by Sector
March 31, 2017
(%)
Financials
Information Technology
Consumer Discretionary
Energy
Materials
Health Care
Consumer Staples
Industrials
Telecommunication Services
Utilities
Real Estate
21.6
18.5
13.2
8.2
8.2
7.7
7.0
5.5
3.9
2.6
2.3
September 30, 2016
(%)
Financials
Information Technology
Consumer Discretionary
Health Care
Materials
Consumer Staples
Energy
Industrials
Telecommunication Services
Real Estate
Utilities
20.0
17.2
14.0
9.2
8.7
8.6
8.3
4.6
3.8
2.4
2.0
Portfolio by Asset Mix
March 31, 2017
(%)
International Equity
Canadian Equity
97.7
1.0
September 30, 2016
(%)
International Equity
Canadian Equity
97.5
1.3
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives.
Accordingly, the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
227
AGF Emerging Markets Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
The impact on Net Assets of the Fund due to a 25 percent change in
benchmark (September 30, 2016 – 25 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
MSCI Emerging Markets Index
March 31,
2017
September 30,
2016
155,526
135,240
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
September 30, 2016
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
Hong Kong Dollar
Indian Rupee
South Korean Won
United States Dollar
New Taiwanese Dollar
Thai Baht
Brazilian Real
Mexican Peso
South African Rand
Indonesian Rupiah
Czech Koruna
New Turkish Lira
Singapore Dollar
United Arab Emirates Dinar
Malaysian Ringgit
Chilean Peso
Pound Sterling
132,251
83,117
72,282
54,290
52,906
38,450
37,090
34,496
27,590
22,955
13,043
12,377
10,916
7,916
7,794
7,212
141
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
132,251
83,117
72,282
54,290
52,906
38,450
37,090
34,496
27,590
22,955
13,043
12,377
10,916
7,916
7,794
7,212
141
21.1
13.3
11.5
8.7
8.4
6.1
5.9
5.5
4.4
3.7
2.1
2.0
1.7
1.3
1.2
1.2
0.0
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
** Includes both monetary and non-monetary instruments, as applicable
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
March 31, 2017
($’000)
Hong Kong Dollar
Indian Rupee
South Korean Won
United States Dollar
Brazilian Real
New Taiwanese Dollar
Thai Baht
Mexican Peso
South African Rand
Indonesian Rupiah
Czech Koruna
New Turkish Lira
Singapore Dollar
United Arab Emirates Dinar
Chilean Peso
Malaysian Ringgit
Pound Sterling
228
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
146,553
106,946
83,073
67,095
55,560
48,323
41,000
39,095
32,403
29,141
14,769
13,331
13,014
10,177
9,401
3,749
138
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
146,553
106,946
83,073
67,095
55,560
48,323
41,000
39,095
32,403
29,141
14,769
13,331
13,014
10,177
9,401
3,749
138
20.3
14.8
11.5
9.3
7.7
6.7
5.7
5.4
4.5
4.0
2.0
1.8
1.8
1.4
1.3
0.5
0.0
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $14,275,000 (September 30,
2016 – $12,297,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
705,709
–
–
–
705,709
–
–
8,458
–
–
–
8,458
–
–
–
–
–
–
–
–
–
714,167
–
–
–
714,167
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
612,322
–
–
–
612,322
–
–
6,898
–
–
–
6,898
–
–
–
–
–
–
–
–
–
619,220
–
–
–
619,220
–
–
September 30, 2016
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Emerging Markets Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the period ended March 31, 2017, the Fund did not hold financial
instruments within level 3 of the fair value hierarchy.
The following table reconciles the Fund’s level 3 fair value
measurements for the period ended September 30, 2016.
September 30, 2016
($’000)
Equities
Balance at Beginning of period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
Debt
Instruments
Total
–
38
–
(38)
–
–
–
–
–
–
–
38
–
(38)
–
–
–
–
–
–
–
–
During the period ended September 30, 2016, investments of
approximately $38,000 were transferred from level 3 to level 1 as the
security became actively traded.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
March 31, 2016
% of Gross
($’000)
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
% of Gross
Income
($’000)
35
–
(4)
100.0
–
(11.0)
41
–
(11)
100.0
–
(27.6)
(9)
(25.8)
(9)
(21.7)
22
63.2
21
50.7
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
March 31,
2017
September 30,
2016
24,363
–
27,351
19,936
–
20,984
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
229
AGF Equity Income Focus Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
230
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
476,524
–
14,753
–
487
340
–
–
1,391
–
493,495
September 30,
2016
$
450,348
–
9,508
–
499
75
–
–
1,240
–
461,670
$
$
–
–
–
–
192
306
507
75
1,510
–
–
2,590
490,905
448,891
$
$
–
–
–
–
155
242
156
74
451
–
–
1,078
460,592
428,667
$
$
$
$
$
$
$
$
$
464,849
–
7,194
2,598
6,064
–
10,200
–
–
$
$
$
$
$
$
$
$
$
438,034
–
6,307
2,422
2,992
–
10,837
–
–
$
$
$
$
$
$
$
$
$
10.99
–
11.28
11.62
9.95
–
9.74
–
–
$
$
$
$
$
$
$
$
$
10.83
–
11.07
11.34
9.80
–
9.75
–
–
AGF Equity Income Focus Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Distributions from underlying funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
10,698
52
6,994
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
5,952
23,696
–
12,457
72
2,137
(641)
14,025
–
–
–
–
–
–
–
–
23,696
1
14,026
4,248
3,853
310
11
11
–
–
26
–
1
520
–
313
21
7
5
–
18
1
1
479
–
–
5,127
–
4,698
(28)
5,099
(195)
4,503
$
18,597
$
9,523
$
$
$
$
$
$
$
$
$
17,524
–
298
127
246
–
402
–
–
$
$
$
$
$
$
$
$
$
8,999
–
155
76
38
–
255
–
–
$
$
$
$
$
$
$
$
$
0.43
–
0.50
0.58
0.54
–
0.37
–
–
$
$
$
$
$
$
$
$
$
0.24
–
0.30
0.37
0.29
–
0.22
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash distributions from underlying
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in distributions and
interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received *
Distributions from underlying funds received *
18,597
2016
$
9,523
–
(1)
(6,994)
(2,137)
(5,952)
(83,924)
641
(65,985)
82,035
45,052
(10,547)
–
(12,322)
–
(151)
(135)
–
–
–
–
37
64
(6,835)
30
(94)
(25,428)
(453)
53,928
(535)
52,020
(41,395)
12,080
(40,518)
10,967
–
1
$
5,245
9,508
14,753
$
$
$
48
–
$
$
(14,461)
34,709
20,249
72
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
231
AGF Equity Income Focus Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
232
2017
438,034
–
6,307
2,422
2,992
–
10,837
–
–
460,592
2016
$
390,284
–
5,178
2,283
1,018
–
11,538
–
–
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
410,301
17,524
–
298
127
246
–
402
–
–
18,597
8,999
–
155
76
38
–
255
–
–
9,523
50,899
–
1,655
281
3,090
–
343
–
–
56,268
49,668
–
1,314
235
643
–
816
–
–
52,676
10,987
–
105
63
144
–
256
–
–
11,555
9,860
–
88
55
40
–
270
–
–
10,313
(41,395)
–
(1,004)
(232)
(247)
–
(1,220)
–
–
(44,098)
(38,834)
–
(623)
(444)
(14)
–
(1,445)
–
–
(41,360)
23,725
21,629
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(3,757)
–
(92)
(50)
(151)
–
(67)
–
–
(4,117)
2016
$
(2,876)
–
(82)
(37)
(31)
–
(65)
–
–
(3,091)
(570)
–
(8)
(3)
(10)
–
(12)
–
–
(603)
(3,370)
–
(51)
(17)
(14)
–
(90)
–
–
(3,542)
(6,873)
–
(67)
(10)
–
–
(339)
–
–
(7,289)
(3,870)
–
(6)
(1)
–
–
(315)
–
–
(4,192)
30,313
20,327
464,849
–
7,194
2,598
6,064
–
10,200
–
–
409,861
–
5,973
2,150
1,680
–
10,964
–
–
490,905
$
430,628
AGF Equity Income Focus Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Units
Average
Cost ($)
Fair
Value ($)
198,470,701
196,788,440
108,945,979
137,097,642
141,474,107
142,637,508
448,890,787
476,523,590
Balanced Fund (40.1%)
17,430,331 AGF Monthly High Income
Fund – Series S Units
Equity Fund (27.9%)
4,830,785 AGF Global Dividend
Fund – Series S Units
Fixed Income Fund (29.1%)
42,451,624 AGF Total Return Bond
Fund – Series S Units
Total Portfolio (97.1%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Equity Income Focus Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
233
AGF Equity Income Focus Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to achieve a high level of income and
capital appreciation by investing primarily in fixed income and dividend
paying equity securities globally.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Sector
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
S&P/TSX Composite Index
FTSE TMX Canada Universe Bond Index
Blended Benchmark
March 31,
2017
September 30,
2016
41,087
82,098
91,227
55,314
97,530
108,392
The Blended Benchmark is composed of 25% Bloomberg Barclays
Global High-Yield Index, 25% FTSE TMX Canada Universe Bond Index,
25% MSCI All Country World Index and 25% S&P/TSX Composite
Index.
March 31, 2017
(%)
Balanced Funds
Fixed Income Funds
Equity Funds
40.1
29.1
27.9
September 30, 2016
(%)
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Fixed Income Funds
Equity Funds
Balanced Funds
33.9
33.9
30.0
The Fund is indirectly exposed to credit, interest rate and currency risks,
as applicable, of the underlying funds as at March 31, 2017 and
September 30, 2016.
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the underlying funds as at March 31,
2017 and September 30, 2016 are included in the following tables:
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
March 31, 2017
AGF Monthly High Income Fund
AGF Total Return Bond Fund
AGF Global Dividend Fund
September 30, 2016
AGF Total Return Bond Fund
AGF Monthly High Income Fund
AGF Global Dividend Fund
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
196,788
142,638
137,098
28.2
21.1
5.8
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
156,017
138,383
155,947
23.4
20.9
6.9
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 20 percent change in
benchmarks (September 30, 2016 – 25 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
234
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
476,524
476,524
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
476,524
476,524
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
450,348
450,348
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
450,348
450,348
–
–
September 30, 2016
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF European Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
64,479
–
–
–
17
710
–
–
167
173
65,546
September 30,
2016
$
58,593
–
308
–
45
229
–
–
68
170
59,413
$
$
84
–
–
–
11
30
145
–
356
–
–
626
64,920
61,859
$
$
–
–
–
–
8
42
3
–
–
–
–
53
59,360
62,175
$
$
$
$
$
$
$
$
$
–
–
–
–
–
64,920
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
59,360
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
9.85
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
9.11
–
–
–
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
235
AGF European Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
236
2017
$
788
–
18
20
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
6,202
7,028
–
956
–
2
(4,931)
(227)
(4,200)
–
–
–
12
–
–
56
(3)
7,037
(151)
(4,295)
305
358
28
6
11
5
–
9
–
1
38
114
40
11
7
7
–
8
2
1
50
115
58
575
196
795
(135)
440
(164)
631
$
6,597
$
(4,926)
$
$
$
$
$
$
$
$
$
–
–
–
–
–
6,597
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
(4,926)
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
1.00
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
(0.68)
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued
Amounts paid on redemption of redeemable units
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents (Bank Overdraft) End
of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
SEMI-ANNUAL REPORT 2017
$
(4,926)
2
205
(20)
4,931
(6,202)
(8,471)
227
(29,709)
8,682
41,352
–
–
–
–
(99)
(50)
–
(3)
–
(20)
3
(12)
477
30
46
12,086
–
3,011
(3,878)
(867)
–
14,522
(23,941)
(9,419)
(2)
(205)
(390)
308
2,667
1,301
$
(84)
$
3,763
$
18
$
2
$
576
$
794
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
6,597
2016
AGF European Equity Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
2017
–
–
–
–
–
59,360
–
–
–
59,360
$
2016
For the periods ended March 31,
–
–
–
–
–
85,519
–
–
–
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
85,519
–
–
–
–
–
6,597
–
–
–
6,597
–
–
–
–
–
(4,926)
–
–
–
(4,926)
–
–
–
–
–
2,983
–
–
–
2,983
–
–
–
–
–
14,552
–
–
–
14,552
–
–
–
–
–
1,599
–
–
–
1,599
–
–
–
–
–
4,295
–
–
–
4,295
–
–
–
–
–
(4,020)
–
–
–
(4,020)
–
–
–
–
–
(23,945)
–
–
–
(23,945)
562
(5,098)
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
–
–
–
–
–
(1,599)
–
–
–
(1,599)
2016
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1,000)
–
–
–
(1,000)
–
–
–
–
–
(3,295)
–
–
–
(3,295)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
5,560
(14,319)
–
–
–
–
–
64,920
–
–
–
–
–
–
–
–
71,200
–
–
–
64,920
$
71,200
237
AGF European Equity Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares
Average
Cost ($)
Fair
Value ($)
730,791
324,928
1,055,719
922,572
403,002
1,325,574
240,280
901,526
1,924,874
697,036
783,517
1,551,824
383,942
999,275
2,448,039
677,742
653,460
1,930,996
518,021
664,178
1,427,045
672,413
1,409,056
545,036
1,608,372
12,943,178
661,253
663,401
1,430,885
686,599
1,438,432
683,558
1,722,576
14,380,158
1,015,061
996,722
724,687
313,138
403,667
1,201,652
1,233,993
1,195,912
639,991
366,222
402,283
1,246,791
463,702
1,200,969
1,299,961
562,653
8,182,212
507,105
1,413,869
1,792,815
498,532
9,297,513
211,609
298,208
1,594,041
815,059
1,950,037
908,376
667,231
5,934,744
1,779,924
837,081
1,912,742
823,738
509,672
5,863,157
1,692,688
1,326,001
296,410
3,315,099
2,090,366
1,662,623
283,624
4,036,613
341,320
381,684
963,403
576,776
324,241
1,375,817
3,581,557
946,586
632,218
397,406
1,345,290
3,703,184
435,900
393,682
1,347,907
1,672,413
1,787,703
2,323,835
1,395,460
1,723,705
1,557,470
2,289,686
Denmark (2.0%)
France (22.2%)
7,334
69,248
4,364
11,982
10,133
25,608
ArcelorMittal
AXA SA
BNP Paribas SA
Cap Gemini SA
Carrefour SA
Compagnie de Saint-Gobain SA
Compagnie Generale des
Etablissements Michelin
Danone SA
Orange SA
Pernod Ricard SA
Sanofi
Societe Generale SA
TOTAL SA
Germany (14.3%)
5,009
9,072
6,519
14,168
4,145
29,314
1,949
Allianz SE
BASF SE
Daimler AG
ElringKlinger AG
HUGO BOSS AG
METRO AG
Muenchener RueckversicherungsGesellschaft AG
10,835 SAP SE
9,842 Siemens AG
27,104 TUI AG
3,074 Swiss Re Limited AG
5,134
119,885
85,801
158,544
25,111
147,240
65,220
193,139
417,421
1,743,242
48,396
38,043
24,971
39,004
94,829
66,648
37,872
321,411
AstraZeneca PLC
BAE Systems PLC
Barclays PLC
BP PLC
Diageo PLC
GKN PLC
GlaxoSmithKline PLC
Kingfisher PLC
Ladbrokes PLC
Lloyds Banking Group PLC
National Grid PLC
Pearson PLC
Rio Tinto PLC
Royal Dutch Shell PLC ‘B’
Royal Mail PLC
RSA Insurance Group PLC
Smith & Nephew PLC
Tesco PLC
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (99.3%)
Enel SpA
Eni SpA
Intesa Sanpaolo SpA
Telecom Italia SpA
UniCredit SpA
Netherlands (6.2%)
18,956 Akzo Nobel NV
82,706 ING Groep NV
14,000 Refresco Group NV
Spain (5.7%)
22,723 Atresmedia Corporacion de
Medios de Comunicacion SA
91,778 Banco Bilbao Vizcaya
Argentaria SA
21,696 Gas Natural SDG SA
23,402 Indra Sistemas SA
90,440 Telefonica SA
Sweden (0.6%)
44,359 Telefonaktiebolaget
LM Ericsson
Switzerland (11.3%)
17,723
16,894
15,778
6,742
238
LafargeHolcim Limited
Nestle SA
Novartis AG
Roche Holding AG
342,353
7,474,211
367,106
7,333,427
450,262
1,141,401
412,153
1,269,161
912,544
840,180
1,857,636
1,271,276
895,997
2,183,194
900,675
594,632
1,250,624
1,415,522
823,308
537,239
835,128
1,331,825
18,922,757
420,220
1,283,383
321,800
1,208,667
955,396
891,270
1,803,334
1,049,395
898,576
1,926,284
817,243
432,609
1,335,339
1,419,644
671,503
651,288
767,308
993,932
17,847,191
(198,458)
61,858,528
–
64,478,707
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF European Equity Fund (the “Fund”).
Italy (9.0%)
284,238
38,439
529,555
688,770
24,862
Fair
Value ($)
United Kingdom (27.5%)
Ireland (0.5%)
25,032 Grafton Group PLC
Average
Cost ($)
Switzerland (continued)
20,370 Danske Bank AS
12,973 GN Store Nord AS
34,318
29,040
27,640
5,519
20,842
28,277
4,094
No. of Shares
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF European Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term capital growth
by investing primarily in shares of companies operating mainly in
Europe and that trade on European stock exchanges.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
September 30, 2016
(%)
Financials
Health Care
Consumer Staples
Industrials
Materials
Consumer Discretionary
Energy
Utilities
Telecommunication Services
Information Technology
21.1
13.0
12.7
10.6
9.8
8.9
7.2
5.5
5.2
4.7
March 31, 2017
(%)
Portfolio by Asset Mix
United Kingdom
France
Germany
Switzerland
Italy
Netherlands
Spain
Denmark
Sweden
Ireland
27.5
22.2
14.3
11.3
9.0
6.2
5.7
2.0
0.6
0.5
March 31, 2017
(%)
International Equity
99.3
September 30, 2016
(%)
International Equity
98.7
September 30, 2016
(%)
United Kingdom
France
Germany
Switzerland
Italy
Netherlands
Spain
Denmark
Sweden
27.7
20.4
15.1
12.4
6.8
6.4
5.7
3.1
1.1
Portfolio by Sector
March 31, 2017
(%)
Financials
Health Care
Consumer Staples
Materials
Consumer Discretionary
Industrials
Energy
Telecommunication Services
Utilities
Information Technology
23.2
13.4
11.1
9.9
9.6
9.2
8.0
5.5
5.0
4.4
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives.
Accordingly, the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The impact on Net Assets of the Fund due to a 45 percent change in
benchmark (September 30, 2016 – 55 percent), using historical
correlation between the return of the Series S Units as compared to the
return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used.
Impact on Net Assets ($’000)
Benchmark
MSCI Europe Index
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
March 31,
2017
September 30,
2016
29,270
32,172
239
AGF European Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
($’000)
Euro Currency
Pound Sterling
Swiss Franc
Danish Krone
United States Dollar
Swedish Krona
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
38,735
18,174
5,948
1,326
448
394
–
–
–
–
–
–
Percentage of
Net Assets (%)
38,735
18,174
5,948
1,326
448
394
59.7
28.0
9.2
2.0
0.7
0.6
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
Percentage of
Net Assets (%)
September 30, 2016
($’000)
Euro Currency
Pound Sterling
Swiss Franc
Danish Krone
Swedish Krona
United States Dollar
33,501
16,458
6,176
1,865
633
187
–
–
–
–
–
–
33,501
16,458
6,176
1,865
633
187
Level 2
Level 3
Total
64,479
–
–
–
64,479
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
64,479
–
–
–
64,479
–
–
Level 1
Level 2
Level 3
Total
58,593
–
–
–
58,593
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
58,593
–
–
–
58,593
–
–
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
September 30, 2016
($’000)
March 31, 2017
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
56.4
27.7
10.4
3.1
1.1
0.3
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $1,300,000 (September 30,
2016 – $1,176,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
($’000)
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
Net Securities Lending Income
% of Gross
Income
March 31, 2016
($’000)
% of Gross
Income
17
–
(0)
100.0
–
(0.0)
81
–
(1)
100.0
–
(0.8)
(5)
(29.0)
(24)
(29.7)
12
71.0
56
69.5
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
240
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
2,635
–
3,008
2,341
–
2,504
AGF Fixed Income Plus Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
1,277,464
676
31,779
–
2,674
–
–
–
10,816
–
1,323,409
September 30,
2016
$
1,316,236
372
31,216
–
3,529
2,373
–
–
11,427
–
1,365,153
$
$
–
–
56
–
320
847
1,318
115
–
–
–
2,656
1,320,753
1,280,704
$
$
–
–
73
–
283
920
731
128
6,705
–
–
8,840
1,356,313
1,286,422
$
$
$
$
$
$
$
$
$
979,799
–
11,604
30,178
2,504
291,991
–
–
4,677
$
$
$
$
$
$
$
$
$
1,013,158
–
15,646
35,601
2,912
279,693
–
–
9,303
$
$
$
$
$
$
$
$
$
12.04
–
12.11
12.13
10.11
12.12
–
–
9.95
$
$
$
$
$
$
$
$
$
12.38
–
12.44
12.47
10.41
12.46
–
–
10.23
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
241
AGF Fixed Income Plus Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
242
2017
$
214
–
22,666
(939)
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
92
–
11,414
(1,734)
(33,054)
(11,113)
(3,249)
(1,236)
8,536
1,954
321
(2,928)
44
1,628
3,582
20
61
(13,936)
(55)
12,083
7,643
4,485
766
12
10
48
–
38
2
1
971
32
231
15
8
24
–
15
5
1
566
14
7
9,530
3
5,367
(1,570)
7,960
(2,290)
3,077
$
(21,896)
$
9,006
$
$
$
$
$
$
$
$
$
(18,580)
–
(281)
(347)
(19)
(2,483)
–
–
(186)
$
$
$
$
$
$
$
$
$
4,833
–
60
259
39
3,722
–
–
93
$
$
$
$
$
$
$
$
$
(0.24)
–
(0.25)
(0.14)
(0.08)
(0.11)
–
–
(0.24)
$
$
$
$
$
$
$
$
$
0.15
–
0.10
0.16
0.14
0.16
–
–
0.14
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
(21,896)
SEMI-ANNUAL REPORT 2017
$
9,006
–
(29)
4,188
(220)
32,733
(408,845)
(392)
(690,295)
406,043
239,057
–
–
–
–
611
(3,190)
–
–
–
–
37
(73)
12,798
227
(335)
(446,171)
(1,295)
112,947
(496)
520,817
(123,887)
(12,235)
(34,797)
485,524
–
29
$
563
31,216
31,779
$
39,353
2,017
41,399
$
23,275
$
8,230
$
182
$
77
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2016
AGF Fixed Income Plus Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
2017
1,013,158
–
15,646
35,601
2,912
279,693
–
–
9,303
1,356,313
2016
$
282,271
–
6,708
18,904
2,754
243,520
–
–
5,827
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
559,984
(18,580)
–
(281)
(347)
(19)
(2,483)
–
–
(186)
(21,896)
4,833
–
60
259
39
3,722
–
–
93
9,006
53,204
–
2,013
426
870
56,306
–
–
1,546
114,365
463,450
–
2,643
2,401
309
52,137
–
–
1,715
522,655
8,262
–
142
519
36
4,827
–
–
77
13,863
3,525
–
69
278
32
3,947
–
–
30
7,881
(66,780)
–
(5,758)
(5,498)
(1,252)
(41,519)
–
–
(5,940)
(126,747)
(28,449)
–
(1,677)
(1,267)
(269)
(4,331)
–
–
(310)
(36,303)
1,481
For the periods ended March 31,
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
(9,465)
–
(158)
(523)
(43)
(4,833)
–
–
(123)
(15,145)
2016
$
(3,956)
–
(72)
(278)
(40)
(3,947)
–
–
(67)
(8,360)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(35,560)
494,879
979,799
–
11,604
30,178
2,504
291,991
–
–
4,677
721,674
–
7,731
20,297
2,825
295,048
–
–
7,288
1,320,753
$
1,054,863
494,233
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
243
AGF Fixed Income Plus Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Average
Cost ($)
Face Value
Fair
Value ($)
Corporate Bonds (45.1%)
CAD
CAD
CAD
CAD
EUR
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
USD
CAD
USD
CAD
CAD
CAD
USD
CAD
CAD
CAD
USD
CAD
CAD
244
Face Value
Average
Cost ($)
Fair
Value ($)
6,520,576
6,526,848
3,065,765
3,445,579
3,915,740
3,857,000
12,256,242
13,154,519
2,535,130
2,341,870
12,921,501
13,205,076
3,290,520
3,144,264
6,429,945
6,533,771
9,224,211
9,412,784
3,524,766
3,607,050
6,468,766
6,452,770
9,980,068
10,047,274
1,449,081
1,435,157
6,473,531
6,837,658
3,246,318
3,333,768
6,737,231
6,948,466
3,425,000
3,632,213
6,244,049
6,256,336
6,660,530
6,717,668
6,452,699
6,431,008
3,565,167
3,718,011
13,867,374
14,022,892
12,697,587
12,812,808
6,604,699
6,780,338
9,303,866
9,100,430
Corporate Bonds (continued)
12,640,000 407 International Inc.
3.600% May 21, 2047
3,860,000 AGT Food and
Ingredients Inc.
5.875% December 21, 2021
6,932,000 Aimia Inc.
5.600% May 17, 2019
5,110,000 Algonquin Power Company
4.090% February 17, 2027
4,385,000 Allied Irish Banks PLC
7.375% December 29, 2049
5,745,000 Anheuser-Busch Inbev
Finance Inc.
3.375% January 25, 2023
10,050,000 Bank of America Corporation
Floating Rate
2.604% March 15, 2023
6,650,000 Bell Canada Inc.
2.900% August 12, 2026
3,600,000 Bell Canada Inc.
4.350% December 18, 2045
1,606,000 Boralex Inc.
Convertible Bonds
4.500% June 30, 2020
8,053,000 Brookfield Asset
Management Inc.
4.540% March 31, 2023
5,910,000 Brookfield Infrastructure
Finance ULC
3.452% March 11, 2022
6,520,000 Brookfield Renewable
Partners ULC
3.630% January 15, 2027
6,750,000 Bruce Power
Limited Partnership
3.969% June 23, 2026
1,850,000 CalAtlantic Group Inc.
Convertible Bonds
1.250% August 1, 2032
1,033,000 Cameco Corporation
3.750% November 14, 2022
5,325,000 Canadian Oil Sands Limited
4.500% Series 144A
April 1, 2022
5,610,000 Canadian Pacific
Railway Company
6.450% November 17, 2039
7,175,000 Canadian Western Bank
2.788% September 13, 2021
5,260,000 CDP Financial Inc.
4.600% July 15, 2020
3,975,000 Cenovus Energy Inc.
6.750% November 15, 2039
6,250,000 CI Financial Corporation
2.645% December 7, 2020
5,135,000 CIBC Capital Trust
Floating Rate
9.976% June 30, 2108
12,420,000 Citigroup Inc.
3.390% November 18, 2021
4,675,000 Citigroup Inc. Floating Rate
5.875% Series O
December 29, 2049
5,225,000 Cominar Real Estate
Investment Trust
4.247% May 23, 2023
33,575,000 CPPIB Capital Inc.
1.000% January 15, 2019
CAD
12,690,571
12,410,471
USD
3,874,175
3,937,200
7,250,350
7,148,610
5,106,372
5,330,610
6,280,586
6,586,429
CAD
CAD
USD
5,999,919
6,026,629
CAD
10,056,830
10,123,689
6,378,414
6,531,220
3,473,883
3,563,925
USD
CAD
1,755,502
1,918,528
CAD
8,657,458
8,841,971
CAD
5,887,036
6,104,229
CAD
6,540,734
6,609,759
CAD
USD
6,942,896
7,121,737
2,710,154
2,541,717
CAD
1,049,053
1,053,267
USD
6,787,406
7,111,477
USD
7,164,160
7,403,678
CAD
7,175,000
7,287,216
CAD
5,903,003
5,780,510
4,453,033
6,028,779
CAD
6,280,120
6,344,767
CAD
6,403,142
5,992,932
USD
12,872,021
13,022,712
CAD
5,881,339
6,430,760
CAD
CAD
5,296,217
5,316,369
CAD
33,585,413
33,564,716
6,400,000 Crombie Real Estate
Investment Trust
3.962% June 1, 2021
1,975,000 Ctrip.com International
Limited Convertible Bonds
1.250% October 15, 2018
3,800,000 Element Fleet
Management Corporation
Convertible Debentures
4.250% June 30, 2020
13,145,000 Enbridge Inc.
4.570% March 11, 2044
1,805,000 Ensco Jersey Finance Limited
Convertible Bonds
3.000% January 31, 2024
12,590,000 Fairfax Financial
Holdings Limited
4.700% December 16, 2026
2,425,000 Finisar Corporation
Convertible Bonds
0.500% December 15, 2036
6,090,000 First Capital Realty Inc.
4.323% Series S
July 31, 2025
8,625,000 FortisAlberta Inc.
4.270% September 22, 2045
3,460,000 Great Canadian
Gaming Corporation
6.625% July 25, 2022
4,800,000 Greater Toronto
Airports Authority
6.450% December 3, 2027
9,690,000 Heathrow Funding Limited
3.000% June 17, 2021
775,000 Hologic Inc.
Convertible Bonds
2.000% Series 2012
March 1, 2042
5,120,000 Intact Financial Corporation
6.400% November 23, 2039
2,625,000 Intesa Sanpaolo SpA
Floating Rate
7.700% December 29, 2049
5,500,000 Just Energy Group Inc.
Convertible Bonds
6.500% July 29, 2019
3,425,000 Just Energy Group Inc.
Convertible Bonds
6.750% December 31, 2021
5,950,000 Leisureworld Senior Care
Limited Partnership
3.474% February 3, 2021
5,950,000 Loblaw Companies Limited
4.860% September 12, 2023
5,650,000 Manulife Financial Capital
Trust II Floating Rate
7.405% December 31, 2108
1,950,000 Microchip Technology Inc.
Convertible Bonds
1.625% February 15, 2025
13,500,000 Morgan Stanley
3.125% August 5, 2021
12,700,000 Morgan Stanley
3.000% February 7, 2024
6,600,000 Morguard Corporation
4.013% November 18, 2020
6,395,000 NAV Canada
7.400% June 1, 2027
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Fixed Income Plus Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Corporate Bonds (continued)
USD
USD
CAD
CAD
CAD
CAD
USD
USD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
USD
USD
CAD
CAD
USD
CAD
USD
CAD
USD
Face Value
Average
Cost ($)
Fair
Value ($)
3,179,362
3,286,093
3,227,999
3,248,694
6,751,303
7,013,822
4,329,116
17,487,780
3,930,694
17,479,303
11,910,948
11,586,804
3,324,603
3,324,588
14,959,620
12,949,411
30,175,837
26,627,446
34,732,193
33,205,957
12,842,651
13,210,900
22,994,299
22,883,457
Emerging Markets Bonds (1.3%)
600 Navient Corporation
7.250% January 25, 2022
4,775,000 Navistar International
Corporation
8.250% November 1, 2021
6,285,000 North West Redwater
Partnership/NWR
Financing
Company Limited
4.050% July 22, 2044
2,768,000 Northland Power Inc.
Convertible Bonds
4.750% June 30, 2020
14,070,000 OMERS Realty Corporation
2.858% February 23, 2024
6,045,000 Parkland Fuel Corporation
5.750% September 16, 2024
1,990,000 Pattern Energy Group Inc.
Convertible Bonds
4.000% July 15, 2020
5,125,000 Prudential Financial Inc.
Floating Rate
5.625% June 15, 2043
13,400,000 PSP Capital Inc.
1.340% August 18, 2021
6,395,000 RioCan Real Estate
Investment Trust
3.287% Series W
February 12, 2024
30,420,000 Royal Bank of Canada
Floating Rate
2.480% June 4, 2025
5,342,000 Scotiabank Tier 1 Trust
Floating Rate
7.802% June 30, 2108
13,590,000 Sun Life Financial Inc.
Floating Rate
2.600% September 25, 2025
5,525,000 TD Capital Trust IV
Floating Rate
6.631% June 30, 2108
14,425,000 TELUS Corporation
5.150% November 26, 2043
19,500,000 The Bank of Nova Scotia
1.900% December 2, 2021
2,299,000 The Priceline Group Inc.
Convertible Bonds
0.900% September 15, 2021
4,020,000 The Royal Bank of Scotland
Group PLC
7.648% August 29, 2049
20,000,000 The Toronto-Dominion Bank
1.909% July 18, 2023
7,050,000 Toromont Industries Limited
3.710% September 30, 2025
4,935,000 TransCanada PipeLines
Limited Floating Rate
6.350% May 15, 2067
2,831,000 Tricon Capital Group Inc.
Convertible Bonds
5.600% March 31, 2020
4,470,000 UBS Group AG Floating Rate
7.000% December 29, 2049
12,475,000 Wells Fargo & Company
3.874% May 21, 2025
770,000 Xilinx Inc. Convertible Bonds
2.625% June 15, 2017
USD
627
829
USD
5,990,357
6,349,970
PEN
MXN
6,037,179
6,378,530
2,842,451
3,238,560
2,350,000 Cemex Finance LLC
6.000% April 1, 2024
2,230,000 Republic of Hungary
6.250% January 29, 2020
15,580,000 Republic of Peru
7.840% August 12, 2020
52,500,000 United Mexican States
8.000% Series M
December 7, 2023
Government Bonds (12.9%)
14,484,905
14,502,082
6,179,019
6,264,131
2,401,804
2,623,245
6,733,135
13,396,114
7,302,788
13,250,329
CAD
CAD
CAD
CAD
CAD
USD
USD
6,456,449
6,518,150
30,265,340
30,632,486
6,158,134
5,990,292
USD
CAD
13,859,929
CAD
6,514,451
6,406,357
15,923,845
15,499,803
19,411,860
19,528,407
3,218,734
3,437,580
CAD
9,700,000 Canada Housing Trust
Floating Rate
0.872% September 15, 2019
22,950,000 Canada Housing Trust
Floating Rate
1.107% September 15, 2021
53,725,000 Canada Housing Trust
1.150% December 15, 2021
33,205,000 Labrador-Island Link
Funding Trust
3.760% Series A
June 1, 2033
9,685,600
9,709,700
23,008,365
23,064,291
52,824,608
52,924,881
38,067,627 36,915,726
123,586,200 122,614,598
High Yield Bonds (3.8%)
USD
USD
6,224,156
46,964,526 46,294,968
177,904,677 170,083,531
Government Guaranteed Investments (9.3%)
CAD
13,519,505
9,276,000 Canada Post Corporation
4.360% July 16, 2040
3,340,000 Government of Canada
0.500% February 1, 2019
6,305,000 Government of Canada
Real Return Bonds
4.250% December 1, 2026
14,700,000 Government of Canada
Real Return Bonds
3.000% December 1, 2036
23,060,000 Government of Canada
5.000% June 1, 2037
9,450,000 U.S. Treasury Inflation Index
Linked Notes
0.125% January 15, 2023
17,250,000 U.S. Treasury Notes
2.250% November 15, 2024
27,450,000 U.S. Treasury Notes
4.500% February 15, 2036
6,308,276
USD
19,554,800
19,729,643
7,100,296
7,165,207
USD
5,935,491
6,004,971
USD
3,244,019
3,326,425
USD
6,005,649
6,390,262
12,755,813
13,033,671
USD
2,126,203
2,059,489
585,795,485 595,690,877
CAD
2,875,000 Ally Financial Inc.
5.750% November 20, 2025
3,480,000 Cascades Inc.
5.500% July 15, 2022
4,400,000 CCO Holdings LLC/
Capital Corporation
5.125% February 15, 2023
2,450,000 Covanta Holding
Corporation
5.875% July 1, 2025
2,400,000 First Quantum
Minerals Limited
7.250% Series 144A
April 1, 2023
2,440,000 Frontier Communications
Corporation
9.250% July 1, 2021
2,980,000 ILFC E-Capital Trust II
Floating Rate
4.910% December 21, 2065
6,075,000 Quebecor Media Inc.
6.625% January 15, 2023
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
3,781,677
3,914,123
4,455,138
4,616,308
5,762,319
6,012,252
3,310,194
3,264,242
3,204,171
3,227,546
3,235,286
3,277,282
3,433,708
3,725,176
6,268,984
6,544,519
245
AGF Fixed Income Plus Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Fair
Cost ($) Value ($)
Face Value
Face Value/
No. of Shares
High Yield Bonds (continued)
Supranational Bonds (3.5%)
CAD
IDR 33,170,000,000 European Bank for
Reconstruction
and Development
7.375% April 15, 2019
CAD
18,700,000 Inter-American
Development Bank
4.400% January 26, 2026
CAD
13,650,000 International Bank for
Reconstruction
and Development
1.250% March 18, 2021
CAD
8,275,000 The Export-Import Bank
of Korea
1.927% February 24, 2020
CAD
USD
USD
3,814,000 Sirius XM Canada
Holdings Inc.
5.625% April 23, 2021
1,175,000 Source Energy Services Canada
Limited Partnership/
Holdings Limited
10.500% December 15, 2021
3,275,000 Teck Resources Limited
5.200% March 1, 2042
4,678,000 Vermilion Energy Inc.
5.625% March 15, 2025
3,711,880
3,871,210
1,332,812
1,374,985
3,961,962
4,093,943
6,272,028 6,158,828
48,730,159 50,080,414
Provincial Bonds (20.4%)
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
10,000,000 Financement-Quebec
5.250% June 1, 2034
13,000,000 Province of Alberta
2.200% June 1, 2026
13,450,000 Province of Alberta
3.300% December 1, 2046
24,455,000 Province of British Columbia
5.700% June 18, 2029
6,485,000 Province of Manitoba
2.550% June 2, 2026
7,760,000 Province of Manitoba
4.600% March 5, 2038
13,100,000 Province of Ontario
1.950% January 27, 2023
49,005,000 Province of Ontario
2.850% June 2, 2023
46,745,000 Province of Ontario
5.600% June 2, 2035
9,100,000 Province of Quebec
1.650% March 3, 2022
30,000,000 Province of Quebec
3.500% December 1, 2022
4,850,000 Province of Quebec
5.750% December 1, 2036
6,450,000 Province of Saskatchewan
2.550% June 2, 2026
12,769,900 12,759,827
Average
Cost ($)
Fair
Value ($)
3,318,776
3,347,119
21,654,733
21,574,576
13,560,779
13,500,098
8,275,000
46,809,288
8,314,058
46,735,851
5,796,788
3,472,139
1,508,774
1,554,861
Health Care (0.3%)
12,964,120 12,748,980
4,525 Teva Pharmaceutical Industries
Limited Convertible
Preferred 7.000%
14,629,996 13,411,200
33,004,686 32,169,234
6,716,255
6,540,677
9,272,863
9,272,725
Telecommunication Services (0.1%)
11,050 T-Mobile US Inc.
Convertible Preferred
5.500%
Commissions and other portfolio
transaction costs (Note 2)
(3,842)
–
13,022,972 13,151,044
51,848,549 51,600,329
Total Investments (96.7%)
1,280,704,107 1,277,463,784
Foreign Exchange Forward Contracts (0.1%)
63,848,793 63,091,220
9,090,445
9,093,873
See Schedule A
Total Portfolio (96.8%)
–
619,524
1,280,704,107 1,278,083,308
32,715,871 32,694,403
6,739,190
6,702,084
6,465,158 6,516,614
273,088,798 269,752,210
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Fixed Income Plus Fund (the “Fund”).
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
CAD
CAD
CAD
CAD
246
30,819,029
24,049,980
19,960,800
53,797,736
41,996,570
21,117,844
Sold Currency
USD
USD
USD
USD
USD
USD
22,835,000
18,000,000
15,000,000
40,440,000
31,635,000
15,859,000
Forward Rate
Maturity Date
1.3496
1.3361
1.3307
1.3303
1.3275
1.3316
April 13, 2017
April 21, 2017
April 28, 2017
April 28, 2017
April 28, 2017
April 28, 2017
Fair Value ($)
Counterparty
Credit Rating
457,644
Royal Bank of Canada
119,988
The Toronto-Dominion Bank
21,170
Bank of America
40,494
Citibank NA
(56,110)
The Bank of Nova Scotia
36,338 The Bank of New York Mellon Corporation
619,524
AA
AA
BBB
A
A
A
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Fixed Income Plus Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide steady income to
investors by investing primarily in fixed income securities.
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Portfolio by Sector
March 31, 2017
(%)
Corporate Bonds
Provincial Bonds
Government Bonds
Government Guaranteed Investments
High Yield Bonds
Supranational Bonds
Emerging Markets Bonds
Health Care
Telecommunication Services
Foreign Exchange Forward Contracts
45.1
20.4
12.9
9.3
3.8
3.5
1.3
0.3
0.1
0.1
September 30, 2016
(%)
Corporate Bonds
Provincial Bonds
Government Bonds
Government Guaranteed Investments
High Yield Bonds
Supranational Bonds
Emerging Markets Bonds
Municipal Bonds
Health Care
Foreign Exchange Forward Contracts
Energy
44.6
21.3
13.5
8.7
3.0
2.9
1.7
1.0
0.4
0.0
0.0
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund invested in
debt instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
March 31,
2017
September 30,
2016
29.0
10.3
24.3
23.0
4.9
3.8
0.5
3.4
29.0
10.7
26.4
22.2
4.7
2.5
0.7
3.1
Interest Rate Risk
As at March 31, 2017 and September 30, 2016, the Fund’s exposure to
debt instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
March 31,
2017
September 30,
2016
2,059
79,052
261,394
929,932
15,167
176,632
168,872
950,737
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
Portfolio by Asset Mix
March 31, 2017
(%)
Canadian Fixed Income
United States Fixed Income
International Fixed Income
International Equity
United States Equity
Foreign Exchange Forward Contracts
75.3
16.0
5.0
0.3
0.1
0.1
September 30, 2016
(%)
Canadian Fixed Income
United States Fixed Income
International Fixed Income
International Equity
Foreign Exchange Forward Contracts
Canadian Equity
74.0
18.5
4.2
0.4
0.0
0.0
As at March 31, 2017 and September 30, 2016, if the yield curve had
shifted in parallel by 25 basis points, with all other variables held
constant, Net Assets would have increased or decreased, respectively,
by approximately $22,350,000 (September 30, 2016 – $23,611,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 15 percent change in
benchmark (September 30, 2016 – 20 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
247
AGF Fixed Income Plus Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Impact on Net Assets ($’000)
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
Benchmark
FTSE TMX Canada Universe Bond Index
March 31,
2017
September 30,
2016
195,515
273,840
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31, 2017
($’000)
United States Dollar
Peruvian New Sol
Euro Currency
Mexican Peso
Indonesian Rupiah
Foreign
Exchange
Percentage
Financial Forward
of Net
Instruments Contracts Total** Assets (%)
223,843
7,014
6,586
3,931
3,347
(191,123) 32,720
–
7,014
–
6,586
–
3,931
–
3,347
2.5
0.5
0.5
0.3
0.3
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
5,027
–
–
–
5,027
–
–
Level 2
Level 3
–
1,272,437
–
–
1,272,437
676
(56)
–
–
–
–
–
–
–
Total
5,027
1,272,437
–
–
1,277,464
676
(56)
September 30, 2016
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
4,828
–
–
–
4,828
–
–
Level 2
Level 3
–
1,311,408
–
–
1,311,408
372
(73)
–
–
–
–
–
–
–
Total
4,828
1,311,408
–
–
1,316,236
372
(73)
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the period ended March 31, 2017, the Fund did not hold financial
instruments within level 3 of the fair value hierarchy.
The following table reconciles the Fund’s level 3 fair value
measurements for the period ended September 30, 2016.
September 30, 2016
September 30, 2016
($’000)
United States Dollar
Mexican Peso
Peruvian New Sol
Indonesian Rupiah
Foreign
Exchange
Percentage
Financial Forward
of Net
Instruments Contracts Total** Assets (%)
233,217
9,564
6,725
3,393
(175,541) 57,676
–
9,564
–
6,725
–
3,393
4.3
0.7
0.5
0.3
** Includes both monetary and non-monetary instruments, as applicable
($’000)
Balance at Beginning of period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $1,072,000 (September 30,
2016 – $1,547,000).
248
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Equities
Debt
Instruments
Total
13
–
–
–
(624)
–
–
–
–
–
13
–
–
–
(624)
611
–
–
–
611
–
–
AGF Fixed Income Plus Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
March 31, 2016
% of Gross
($’000)
Income
% of Gross
Income
($’000)
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of
New York Mellon Corp.
67
–
(4)
100.0
–
(5.3)
(19)
Net Securities Lending Income
44
34
–
(6)
100.0
–
(17.0)
(28.8)
(8)
(24.9)
65.9
20
58.1
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
86,015
–
90,537
66,002
–
69,874
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
249
AGF Flex Asset Allocation Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
250
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
19,104
80
185
–
1
83
–
–
12
–
19,465
September 30,
2016
$
22,651
31
227
–
17
107
–
4
12
–
23,049
$
$
–
–
5
–
5
46
93
–
–
–
–
149
19,316
18,365
$
$
–
–
20
–
5
–
94
–
97
–
–
216
22,833
22,296
$
$
$
$
$
$
$
$
$
12,426
–
3,179
–
702
–
–
–
3,009
$
$
$
$
$
$
$
$
$
14,173
–
5,002
–
2,156
–
–
–
1,502
$
$
$
$
$
$
$
$
$
10.06
–
10.00
–
9.99
–
–
–
10.39
$
$
$
$
$
$
$
$
$
9.96
–
9.93
–
10.20
–
–
–
10.34
AGF Flex Asset Allocation Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
–
252
1
141
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
–
137
1
(246)
384
778
(438)
(398)
(506)
378
64
(374)
–
231
609
–
4
408
37
140
118
73
32
6
11
7
–
11
–
1
22
6
44
11
6
9
–
10
–
1
18
20
18
232
27
219
(49)
183
(77)
142
$
225
$
(2)
$
$
$
$
$
$
$
$
$
112
–
24
–
(16)
–
–
–
105
$
$
$
$
$
$
$
$
$
(11)
–
(4)
–
13
–
–
–
(0)
$
$
$
$
$
$
$
$
$
0.08
–
0.06
–
(0.12)
–
–
–
0.45
$
$
$
$
$
$
$
$
$
(0.01)
–
(0.02)
–
0.07
–
–
–
(0.02)
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
225
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
$
–
(2)
3
297
(132)
(448)
(15,690)
167
(33,259)
19,251
12,240
–
4
–
–
–
(2)
–
–
–
–
–
46
3,685
5
–
(20,980)
(16)
2,580
–
21,669
(6,291)
(3,727)
(1,002)
20,667
–
(3)
$
(42)
227
185
$
(313)
697
381
$
1
$
1
$
246
$
115
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
2016
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
251
AGF Flex Asset Allocation Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
252
2017
14,173
–
5,002
–
2,156
–
–
–
1,502
22,833
112
–
24
–
(16)
–
–
–
105
225
2016
$
965
–
256
–
321
–
–
–
1
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
1,543
(11)
–
(4)
–
13
–
–
–
(0)
(2)
1,707
–
544
–
393
–
–
–
1,706
4,350
13,720
–
4,487
–
3,131
–
–
–
100
21,438
27
–
25
–
25
–
–
–
44
121
–
–
–
–
–
–
–
–
–
–
(3,565)
–
(2,384)
–
(1,823)
–
–
–
(304)
(8,076)
(806)
–
(246)
–
(24)
–
–
–
(1)
(1,077)
(3,605)
20,361
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(28)
–
(32)
–
(33)
–
–
–
(44)
(137)
2016
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(3,517)
20,359
12,426
–
3,179
–
702
–
–
–
3,009
13,868
–
4,493
–
3,441
–
–
–
100
19,316
$
21,902
AGF Flex Asset Allocation Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Average
Cost ($)
No. of Units
Fair
Value ($)
ETFs – International Equity (19.7%)
Average
Cost ($)
Fair
Value ($)
1,374,451
1,436,802
3,240,296
3,261,573
388,394
5,980,422
387,114
6,039,335
ETFs – United States Fixed Income (continued)
5,554 iShares Edge MSCI Minimum
Volatility EAFE Index ETF
39,766 Vanguard FTSE All-World ex-US
Index Fund ETF
14,852 Vanguard FTSE Emerging
Markets Index Fund ETF
485,022
487,475
2,354,754
2,529,385
713,155
3,552,931
784,507
3,801,367
ETFs – International Fixed Income (5.0%)
29,256 SPDR Bloomberg Barclays High
Yield Bond ETF
28,393 Vanguard Intermediate-Term
Corporate Bond
Index Fund ETF
3,238 Vanguard Long-Term Corporate
Bond Index Fund ETF
ETFs – United States Short-Term Income (9.8%)
26,083 SPDR Bloomberg Barclays
Emerging Markets Local
Bond ETF
957,292
977,812
ETFs – United States Equity (33.1%)
31,104 SPDR Bloomberg Barclays
1-3 Month T-Bill ETF
Commissions and other portfolio
transaction costs (Note 2)
14,894 iShares Edge MSCI USA
Minimum Volatility
Index ETF
9,601 SPDR S&P 500 ETF Trust
17,155 The Financial Select Sector
SPDR Fund
6,500 The Industrial Select Sector
SPDR Fund
8,068 The Technology Select Sector
SPDR Fund
6,953 Vanguard REIT Index Fund ETF
886,481
2,789,599
945,180
3,009,903
539,847
541,366
490,023
562,380
494,633
786,155
5,986,738
571,975
763,664
6,394,468
ETFs – United States Fixed Income (31.3%)
11,981 SPDR Bloomberg Barclays
Intermediate Term
Treasury ETF
No. of Units
977,281
953,846
1,897,616
(10,345)
Total Investments (98.9%)
18,364,654
Foreign Exchange Forward Contracts (0.4%)
See Schedule A
Total Portfolio (99.3%)
1,890,733
–
19,103,715
–
74,823
18,364,654
19,178,538
ETF – Exchange Traded Fund
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Flex Asset Allocation Fund (the “Fund”).
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
USD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
254,000
2,321,381
401,433
2,298,479
2,191,565
2,374,267
2,135,806
2,381,255
2,316,984
2,283,360
Sold Currency
CAD
USD
USD
USD
USD
USD
USD
USD
USD
USD
339,871
1,720,000
300,000
1,720,000
1,640,000
1,777,000
1,605,000
1,790,000
1,740,000
1,720,000
Forward Rate
Maturity Date
0.7473
1.3496
1.3381
1.3363
1.3363
1.3361
1.3307
1.3303
1.3316
1.3275
April 13, 2017
April 13, 2017
April 13, 2017
April 21, 2017
April 21, 2017
April 21, 2017
April 28, 2017
April 28, 2017
April 28, 2017
April 28, 2017
Fair Value ($)
Counterparty
Credit Rating
(2,153)
Royal Bank of Canada
34,471
Royal Bank of Canada
2,553
Royal Bank of Canada
11,835
Bank of Montreal
11,277
National Bank of Canada
11,845
The Toronto-Dominion Bank
2,266
Bank of America
1,793
Citibank NA
3,987 The Bank of New York Mellon Corporation
(3,051)
The Bank of Nova Scotia
74,823
AA
AA
AA
A
A
AA
BBB
A
A
A
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
253
AGF Flex Asset Allocation Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide total return over a market
cycle, with a focus on capital preservation and risk management,
through the use of a systematic investment framework to construct a
diversified portfolio.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
United States
ETFs – International
Foreign Exchange Forward Contracts
74.2
24.7
0.4
September 30, 2016
(%)
United States
ETFs – International
Foreign Exchange Forward Contracts
82.7
16.5
0.0
Portfolio by Sector
March 31, 2017
(%)
ETFs – United States Equity
ETFs – United States Fixed Income
ETFs – International Equity
ETFs – United States Short-Term Income
ETFs – International Fixed Income
Foreign Exchange Forward Contracts
33.1
31.3
19.7
9.8
5.0
0.4
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
March 31, 2017 and September 30, 2016 are included in the following
tables:
March 31, 2017
SPDR Bloomberg Barclays Emerging Markets
Local Bond ETF
SPDR Bloomberg Barclays Intermediate Term
Treasury ETF
SPDR Bloomberg Barclays 1-3 Month T-Bill ETF
Vanguard Intermediate-Term Corporate Bond
Index Fund ETF
Vanguard Long-Term Corporate Bond
Index Fund ETF
Vanguard FTSE All-World ex-US Index Fund ETF
SPDR Bloomberg Barclays High Yield Bond ETF
The Industrial Select Sector SPDR Fund
iShares Edge MSCI USA Minimum Volatility
Index ETF
iShares Edge MSCI Minimum Volatility EAFE
Index ETF
The Technology Select Sector SPDR Fund
Vanguard REIT Index Fund ETF
The Financial Select Sector SPDR Fund
Vanguard FTSE Emerging Markets
Index Fund ETF
SPDR S&P 500 ETF Trust
September 30, 2016
September 30, 2016
(%)
ETFs – United States Fixed Income
ETFs – United States Equity
ETFs – International Equity
ETFs – United States Short-Term Income
ETFs – Commodity
ETFs – International Fixed Income
Foreign Exchange Forward Contracts
35.3
31.7
11.5
9.9
5.8
5.0
0.0
Portfolio by Asset Mix
March 31, 2017
(%)
United States Equity
International Equity
Foreign Exchange Forward Contracts
74.2
24.7
0.4
September 30, 2016
(%)
United States Equity
International Equity
Foreign Exchange Forward Contracts
82.7
16.5
0.0
254
SPDR Bloomberg Barclays Emerging Markets
Local Bond ETF
SPDR Bloomberg Barclays Intermediate Term
Treasury ETF
SPDR Bloomberg Barclays Long Term
Treasury ETF
SPDR Bloomberg Barclays 1-3 Month T-Bill ETF
Vanguard Intermediate-Term Corporate Bond
Index Fund ETF
Vanguard Long-Term Corporate Bond
Index Fund ETF
iShares Edge MSCI USA Minimum Volatility
Index ETF
iShares Edge MSCI Minimum Volatility EAFE
Index ETF
SPDR Bloomberg Barclays High Yield Bond ETF
The Industrial Select Sector SPDR Fund
The Consumer Staples Select Sector SPDR Fund
The Technology Select Sector SPDR Fund
Vanguard REIT Index Fund ETF
Vanguard FTSE All-World ex-US Index Fund ETF
SPDR Gold Shares ETF
Vanguard FTSE Emerging Markets
Index Fund ETF
SPDR S&P 500 ETF Trust
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
978
0.4
954
1,891
0.2
0.1
3,262
0.0
387
2,529
1,437
562
0.0
0.0
0.0
0.0
945
0.0
487
572
764
541
0.0
0.0
0.0
0.0
785
3,010
0.0
0.0
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
1,136
0.4
1,132
0.2
907
2,264
0.2
0.1
4,078
0.0
228
0.0
1,357
0.0
1,135
1,711
689
682
687
1,774
683
1,334
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
799
2,055
0.0
0.0
AGF Flex Asset Allocation Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives.
Accordingly, the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 5 percent change in
benchmark (September 30, 2016 – 5 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
FTSE TMX Canada 91 Day T-Bill Index
March 31,
2017
(12,851)
September 30,
2016
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31, 2017
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
19,104
(18,290)
814
4.2
September 30, 2016
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
22,651
(21,886)
765
3.4
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $16,000 (September 30,
2016 – $15,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
(1,902)
March 31, 2017
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
19,104
–
–
–
19,104
–
–
Level 2
–
–
–
–
–
80
(5)
Level 3
–
–
–
–
–
–
–
Total
19,104
–
–
–
19,104
80
(5)
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
22,651
–
–
–
22,651
–
–
Level 2
–
–
–
–
–
31
(20)
Level 3
–
–
–
–
–
–
–
Total
22,651
–
–
–
22,651
31
(20)
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the Fund
did not hold financial instruments within level 3 of the fair value hierarchy.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
255
AGF Floating Rate Income Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
256
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
461,916
273
49,213
–
1,523
1,446
–
–
3,308
–
517,679
September 30,
2016
$
266,708
336
16,804
–
768
1,691
–
–
1,304
–
287,611
$
$
–
–
5,026
–
76
246
895
143
33,545
–
–
39,931
477,748
444,405
$
$
–
–
330
–
67
302
1,315
126
6,861
–
–
9,001
278,610
245,344
$
$
$
$
$
$
$
$
$
216,289
–
40,328
208,067
5,556
–
762
495
6,251
$
$
$
$
$
$
$
$
$
226,626
–
31,532
12,981
3,903
–
812
559
2,197
$
$
$
$
$
$
$
$
$
9.89
–
9.91
9.92
9.81
–
7.72
9.00
9.77
$
$
$
$
$
$
$
$
$
9.73
–
9.76
9.77
9.64
–
7.81
8.96
9.61
AGF Floating Rate Income Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
–
9
7,353
14,544
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
–
–
8,921
8,965
(3,853)
18,053
(2,878)
(24,690)
(6,804)
(7,988)
(4,759)
(7,637)
–
17,736
9,748
–
945
11,361
(2,999)
(55)
1,628
2,067
245
8
11
9
–
30
–
1
233
1
296
16
7
12
–
27
2
1
293
–
40
2,206
–
2,721
(102)
2,104
(93)
2,628
$
9,257
$
(2,683)
$
$
$
$
$
$
$
$
$
6,556
–
1,064
1,324
174
–
22
15
102
$
$
$
$
$
$
$
$
$
(2,287)
–
(382)
37
(2)
–
(13)
(15)
(21)
$
$
$
$
$
$
$
$
$
0.29
–
0.30
0.21
0.36
–
0.22
0.26
0.32
$
$
$
$
$
$
$
$
$
(0.08)
–
(0.08)
0.03
(0.00)
–
(0.08)
(0.15)
(0.06)
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
9,257
2016
$
–
(2,683)
2,603
(11,666)
(977)
8,612
(338,262)
6,954
(25,414)
177,796
80,300
–
–
–
–
(2,004)
(755)
–
–
–
–
9
(56)
(156,314)
(2)
(108)
59,918
(902)
222,814
(1,558)
9,868
(33,189)
188,723
(65,991)
(57,681)
–
(2,603)
$
32,409
16,804
49,213
$
2,237
12,118
11,752
$
5,349
$
8,166
$
8
$
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
257
AGF Floating Rate Income Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
258
2017
226,626
–
31,532
12,981
3,903
–
812
559
2,197
278,610
6,556
–
1,064
1,324
174
–
22
15
102
9,257
2016
$
290,012
–
50,236
11,595
7,374
–
1,629
1,250
4,375
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
366,471
(2,287)
–
(382)
37
(2)
–
(13)
(15)
(21)
(2,683)
15,830
–
12,431
195,119
2,060
–
56
12
4,003
229,511
7,185
–
2,778
1,033
17
–
42
–
–
11,055
2,514
–
410
1,200
101
–
10
4
55
4,294
3,968
–
615
222
135
–
23
8
63
5,034
(32,158)
–
(4,550)
(1,203)
(577)
–
(107)
(82)
(34)
(38,711)
(46,954)
–
(16,306)
(836)
(2,226)
–
(501)
(560)
(1,514)
(68,897)
195,094
(52,808)
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(3,079)
–
(559)
(1,354)
(105)
–
(13)
(9)
(72)
(5,191)
2016
$
(4,972)
–
(876)
(313)
(162)
–
(22)
(15)
(94)
(6,454)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(18)
(4)
–
(22)
–
–
–
–
–
–
(30)
(8)
–
(38)
199,138
(61,983)
216,289
–
40,328
208,067
5,556
–
762
495
6,251
246,952
–
36,065
11,738
5,136
–
1,128
660
2,809
477,748
$
304,488
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value
Consumer Discretionary (16.5%)
Consumer Discretionary (continued)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
775,000 1011778 B.C. Unlimited
Liability Company
Incremental Term Loan B3
February 16, 2024
4,077,997 1011778 B.C. Unlimited
Liability Company
Term Loan B3
February 16, 2024
187,500 ALM Media Holdings Inc.
First Lien Term Loan
June 10, 2020
91,875 Amaya Holdings BV
USD Second Lien Term Loan
August 1, 2022
641,875 AMC Entertainment Inc.
New Term Loan
December 15, 2022
125,000 AMC Entertainment Inc.
New Term Loan B
December 15, 2023
1,450,000 American Axle and
Manufacturing Inc.
Term Loan B
March 8, 2024
2,100,000 American Builders &
Contractors Supply Company
Term Loan B
October 31, 2023
856,906 Apex Tool Group LLC
Term Loan B
January 31, 2020
554,352 Ascena Retail Group Inc.
Term Loan B
August 21, 2022
325,000 Bass Pro Group LLC
Term Loan B
December 16, 2023
225,000 BJ’s Wholesale Club Inc.
First Lien Term Loan
February 3, 2024
1,218,875 Bombardier Recreational
Products Inc.
Term Loan B
June 30, 2023
475,000 Boyd Gaming Corporation
Term Loan B2
March 6, 2024
298,500 Camelot UK Holdco Limited
Term Loan B
October 3, 2023
316,981 CBS Radio Inc.
Term Loan B
October 17, 2023
997,750 CDS U.S. Intermediate
Holdings Inc.
First Lien Term Loan
July 8, 2022
625,650 Centerplate Inc.
Term Loan A
November 26, 2019
742,500 Charter Communications
Operating LLC
Term Loan I
January 15, 2024
219,132 CityCenter Holdings LLC
Term Loan B
October 16, 2020
1,034,280
1,029,345
USD
USD
5,352,886
5,427,642
USD
201,523
235,009
USD
98,746
122,371
USD
856,182
860,177
USD
167,243
167,353
USD
1,946,821
1,928,283
USD
2,815,711
2,802,110
USD
896,804
1,129,585
USD
700,382
664,713
USD
432,786
415,994
USD
294,866
292,048
USD
1,577,380
1,627,337
641,583
633,732
392,495
397,754
USD
USD
418,941
425,015
USD
1,323,783
1,336,478
USD
665,641
827,861
USD
USD
1,011,292
991,528
USD
293,908
294,327
578,667 ClubCorp Club Operations Inc.
Term Loan
December 15, 2022
359,664 Crossmark Holdings Inc.
First Lien Term Loan
December 20, 2019
904,114 CS Intermediate Holdco 2 LLC
Term Loan B
October 26, 2023
1,715,838 Cumulus Media Holdings Inc.
Term Loan
December 23, 2020
259,795 David’s Bridal Inc.
New Term Loan B
October 11, 2019
325,000 Delta 2 (LUX) SARL
USD Term Loan B3
February 1, 2024
575,000 Eldorado Resorts
LLC Term Loan B
March 13, 2024
363,782 Emerald Expositions
Holding Inc.
Term Loan B
June 17, 2020
1,538,542 Entercom Radio LLC
Term Loan
November 1, 2023
629,091 Evergreen Acqco 1
Limited Partnership
New Term Loan July 9, 2019
1,140,701 Federal-Mogul
Holdings Corporation
New Term Loan C
April 15, 2021
224,438 Four Seasons Holdings Inc.
Term Loan B
November 30, 2023
197,577 Garda World Security
Corporation Delayed Draw
Term Loan
November 6, 2020
968,794 Garda World Security
Corporation
New Term Loan B
November 6, 2020
175,000 Gateway Casinos &
Entertainment Limited
Term Loan B1
February 22, 2023
275,000 Global Eagle Entertainment Inc.
First Lien Term Loan
January 6, 2023
671,625 Harbor Freight Tools USA Inc.
Term Loan B
August 19, 2023
136,230 Horizon Global Corporation
Term Loan B
June 30, 2021
696,402 J.Crew Group Inc.
New Term Loan B
March 5, 2021
447,750 J.D. Power and Associates
First Lien Term Loan
September 7, 2023
493,769 KUEHG Corporation
First Lien Term Loan
August 12, 2022
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Average
Cost ($)
Fair
Value ($)
762,978
773,195
363,845
361,116
1,213,295
1,212,355
1,814,015
1,699,946
265,763
280,493
423,912
431,815
767,108
764,983
417,419
486,799
2,038,191
2,054,214
651,856
737,600
1,252,521
1,511,652
300,426
301,559
217,293
263,077
1,086,568
1,289,961
227,651
234,906
359,993
340,566
858,857
892,168
172,015
182,977
767,446
562,612
568,551
598,418
647,152
660,469
259
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
Face Value
Consumer Discretionary (continued)
Consumer Discretionary (continued)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
260
650,000 Landry’s Inc.
Term Loan B
October 4, 2023
3,989,975 Live Nation Entertainment Inc.
Term Loan B2
October 31, 2023
229,167 LSC Communications Inc.
Term Loan B
September 30, 2022
172,247 Merrill Communications LLC
Term Loan
June 1, 2022
339,627 Michaels Stores Inc.
Term Loan B1
January 30, 2023
1,347,704 Monitronics International Inc.
Term Loan B2
September 30, 2022
1,092,578 MPG Holdco I Inc.
Term Loan B
October 20, 2021
924,857 Nord Anglia Education
Finance LLC
Term Loan
March 31, 2021
668,108 NPC International Inc.
Term Loan B
December 28, 2018
933,400 PetSmart Inc.
Term Loan B2
March 11, 2022
218,813 Pier 1 Imports (U.S.) Inc.
Term Loan B
April 30, 2021
646,344 Pilot Travel Centers LLC
Term Loan B
May 25, 2023
174,563 Sage Automotive Holdings Inc.
First Lien Term Loan
October 27, 2022
1,496,241 Samsonite International SA
Term Loan B
August 1, 2023
1,100,000 Serta Simmons Bedding LLC
First Lien Term Loan
November 8, 2023
2,718,188 ServiceMaster Company
Term Loan B
November 8, 2023
250,000 Sesac Holdco II LLC
First Lien Term Loan
February 23, 2024
179,963 SGS Cayman
Limited Partnership
Term Loan B
April 23, 2021
2,161,583 Sinclair Television Group Inc.
Term Loan B2
January 3, 2024
1,182,499 Spin Holdco Inc.
New Term Loan B
November 14, 2019
272,158 SRAM LLC
Term Loan
March 15, 2024
630,500 Stena International SARL
Term Loan B
March 3, 2021
847,760
870,886
USD
5,291,799
5,337,576
295,742
307,805
USD
212,921
228,490
USD
446,873
449,771
USD
1,757,265
1,809,607
USD
1,331,317
1,454,236
USD
1,237,517
1,240,683
USD
922,690
893,481
1,228,581
1,185,424
USD
238,884
280,440
USD
847,489
864,734
231,626
232,722
2,020,405
2,000,554
773,112 Sutherland Global Services Inc.
Term Loan B
April 23, 2021
500,000 The Goodyear Tire &
Rubber Company
New Second Lien
Term Loan
April 30, 2019
366,505 The Men’s Wearhouse Inc.
Term Loan B
June 18, 2021
507,465 The Neiman Marcus Group
Limited LLC
Term Loan
October 25, 2020
2,912,296 TI Group Automotive
Systems LLC
USD Term Loan
June 30, 2022
139,531 Tower Automotive Holdings
USA LLC
Term Loan B
March 7, 2024
2,139,582 Tropicana Entertainment Inc.
Term Loan
November 27, 2020
1,032,000 Weight Watchers
International Inc.
Term Loan B2
April 2, 2020
1,600,000 WMG Acquisition Corporation
Term Loan C
November 1, 2023
273,625 Yum! Brands Inc.
First Lien Term Loan B
June 16, 2023
Average
Cost ($)
Fair
Value ($)
893,540
992,138
670,800
669,746
398,581
466,276
578,354
541,147
3,886,381
3,889,861
187,662
184,743
2,784,277
2,866,663
1,033,648
1,278,542
2,111,559
2,134,077
366,879
76,947,799
365,427
79,048,782
4,539,235
4,588,315
3,402,617
3,415,252
675,135
666,994
1,258,866
1,227,751
444,250
562,192
1,340,807
1,377,887
328,723
346,177
716,408
734,846
4,431,247
4,496,659
Consumer Staples (6.3%)
1,458,585
1,468,321
3,664,080
3,630,596
326,108
332,670
207,996
230,947
2,905,189
2,881,169
1,205,444
1,571,564
363,039
362,834
694,700
776,109
USD 3,414,679 AdvancePierre Foods Inc.
Term Loan
June 2, 2023
USD 2,557,756 Albertsons LLC USD
Term Loan B4
August 22, 2021
USD
498,750 Albertsons LLC USD
Term Loan B5
December 22, 2022
USD
917,919 Albertsons LLC USD
Term Loan B6
June 22, 2023
USD
422,748 Clearwater Seafoods Limited
Partnership USD
TermLoan B
June 26, 2019
USD 1,261,000 Del Monte Foods Inc.
First Lien Term Loan
February 18, 2021
USD
306,250 Flavors Holdings Inc.
First Lien Term Loan
April 3, 2020
USD
550,000 Galleria Company
USD Term Loan B
September 29, 2023
USD 3,375,000 JBS USA LLC
Term Loan B
October 30, 2022
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
Face Value
Consumer Staples (continued)
Corporate Bonds (continued)
USD 1,891,066 KIK Custom Products Inc.
Term Loan B
August 26, 2022
USD
485,000 PFS Holding Corporation
First Lien Term Loan
January 31, 2021
USD 3,167,063 Pinnacle Foods Finance LLC
Term Loan B
February 2, 2024
USD 2,800,000 Rite Aid Corporation
Second Lien Term Loan
August 21, 2020
USD
551,960 Spectrum Brands Inc.
USD Term Loan
June 23, 2022
USD
723,039 Supervalu Inc. Refinance
Term Loan B
March 21, 2019
USD
2,553,105
2,536,055
USD
527,329
631,271
USD
USD
4,142,807
4,228,266
USD
3,544,040
3,731,958
USD
732,178
738,612
USD
939,257
29,576,004
968,077
30,250,312
USD
Corporate Bonds (6.7%)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
250,000 Air Lease Corporation
5.625% April 1, 2017
250,000 Alere Inc.
6.500% June 15, 2020
405,000 Altice SA
7.750% May 15, 2022
175,000 Blue Racer Midstream LLC/
Finance Corporation
6.125% November 15, 2022
1,000,000 Cablevision Systems
Corporation
5.875% September 15, 2022
1,000,000 CBC Ammo LLC/FinCo Inc.
7.250% November 15, 2021
500,000 Concho Resources Inc.
5.500% April 1, 2023
500,000 Denbury Resources Inc.
5.500% May 1, 2022
1,000,000 Diamond 1 Finance
Corporation/Diamond 2
Finance Corporation
6.020% June 15, 2026
350,000 Digicel Limited
6.000% April 15, 2021
330,000 Dollar Tree Inc.
5.750% March 1, 2023
245,000 Dynegy Inc.
7.375% November 1, 2022
500,000 Endeavor Energy Resources
Limited Partnership
7.000% August 15, 2021
1,000,000 First Data Corporation
7.000% December 1, 2023
500,000 Gulfport Energy Corporation
6.625% May 1, 2023
565,000 Hot Topic Inc.
9.250% June 15, 2021
500,000 HRG Group Inc.
7.875% July 15, 2019
1,000,000 Laureate Education Inc.
9.250% September 1, 2019
35,000 Micron Technology Inc.
5.500% February 1, 2025
1,000,000 Navistar International
Corporation
8.250% November 1, 2021
140,000 Netflix Inc.
5.500% February 15, 2022
298,462
332,462
259,818
334,956
USD
512,029
571,578
USD
217,693
235,633
1,327,569
1,341,486
1,053,123
1,323,201
532,576
688,197
551,377
518,642
USD
USD
USD
USD
USD
1,427,104
1,449,777
350,671
422,975
USD
USD
USD
421,265
467,376
320,287
322,555
583,627
694,847
1,418,421
1,426,264
623,139
672,405
753,274
728,824
672,968
688,197
1,381,391
1,383,044
USD
44,207
48,290
USD
1,332,855
1,329,837
175,279
197,815
USD
USD
USD
USD
USD
120,000 Netflix Inc.
5.875% February 15, 2025
245,000 NPC International/Operating
Company A/B Inc.
10.500% January 15, 2020
39,000 Nuance Communications Inc.
5.375% August 15, 2020
210,000 Opal Acquisition Inc.
8.875% December 15, 2021
250,000 PBF Holding Company LLC/
Finance Corporation
8.250% February 15, 2020
1,000,000 Post Holdings Inc.
5.000% August 15, 2026
500,000 Reliance Intermediate Holdings
Limited Partnership
6.500% April 1, 2023
330,000 Rexel SA
5.250% June 15, 2020
500,000 Rite Aid Corporation
6.125% April 1, 2023
1,000,000 Seven Generations
Energy Limited
8.250% May 15, 2020
1,000,000 Standard Industries Inc.
6.000% October 15, 2025
34,000 SunCoke Energy Inc.
7.625% August 1, 2019
900,000 SunCoke Energy Partners
Limited Partnership/
Finance Corporation
7.375% February 1, 2020
365,000 Sunoco Limited Partnership/
Finance Corporation
6.375% April 1, 2023
500,000 Surgical Care Affiliates Inc.
6.000% April 1, 2023
280,000 TransDigm Inc.
6.500% July 15, 2024
500,000 TRI Pointe Holdings Inc.
4.375% June 15, 2019
330,000 Tronox Finance LLC
6.375% August 15, 2020
500,000 Tronox Finance LLC
7.500% March 15, 2022
500,000 Unitymedia Hessen GmbH &
Company KG/NRW GmbH
5.500% January 15, 2023
500,000 USI Inc.
7.750% January 15, 2021
1,000,000 Valeant Pharmaceuticals
International Inc.
6.375% October 15, 2020
15,000 Valeant Pharmaceuticals
International Inc.
6.125% April 15, 2025
320,000 Viking Cruises Limited
8.500% October 15, 2022
250,000 Virgin Media Secured
Finance PLC
5.250% January 15, 2026
250,000 W. R. Grace & Company
5.125% October 1, 2021
500,000 W. R. Grace & Company
5.625% October 1, 2024
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Average
Cost ($)
Fair
Value ($)
169,790
171,551
284,534
335,913
39,460
52,741
224,239
242,964
269,164
339,112
1,263,275
1,273,331
637,523
708,145
338,797
452,016
631,529
659,107
1,226,924
1,389,693
1,398,318
1,373,070
36,995
44,424
1,205,663
1,208,834
469,925
492,676
632,902
713,132
313,028
377,478
540,972
679,886
344,008
440,496
672,961
688,198
527,695
691,449
630,004
676,561
1,191,119
1,203,514
19,243
15,360
373,579
441,510
306,712
334,125
314,562
348,670
702,628
700,665
261
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
Face Value
Corporate Bonds (continued)
Financials (continued)
USD
USD 1,521,188 AmWINS Group Inc.
Term Loan B
January 25, 2024
USD
88,767 Aretec Group Inc. Exit
Term Loan
November 23, 2020
USD
965,986 Aretec Group Inc.
Second Lien Term Loan
May 23, 2021
USD
541,439 Armor Holding II LLC
First Lien Term Loan
June 26, 2020
USD
670,324 AssuredPartners Inc.
Term Loan B
October 21, 2022
USD
251,551 Asurion LLC
Term Loan B2
July 8, 2020
USD
725,000 Asurion LLC
New Second Lien Term Loan
March 3, 2021
USD 2,897,251 Asurion LLC
Term Loan B5
November 3, 2023
USD
803,048 Bronco Midstream
Funding LLC
Term Loan B
August 15, 2020
USD
959,375 Citco Funding LLC
Term Loan
June 29, 2018
USD
388,000 Corporate Capital Trust Inc.
Term Loan B
May 20, 2019
USD
550,000 Cunningham Lindsey US Inc.
Second Lien Term Loan
June 10, 2020*
USD 1,455,082 DTZ U.S. Borrower LLC
First Lien Term Loan
November 4, 2021
USD 1,343,258 ESH Hospitality Inc.
Term Loan B
August 30, 2023
USD 1,225,000 Freedom Mortgage Corporation
First Lien Term Loan
February 26, 2022
USD 2,097,925 Guggenheim Partners LLC
Term Loan
July 21, 2023
USD
340,703 Harbourvest Partners LLC
New Term Loan
February 4, 2021
USD 1,141,800 Hub International Limited
Term Loan B
October 2, 2020
USD 1,255,230 IG Investment Holdings LLC
Term Loan B
October 29, 2021
USD 1,483,696 Lightstone Generation LLC
Initial Term Loan B
January 30, 2024
USD
91,304 Lightstone Generation LLC
Initial Term Loan C
January 30, 2024
USD
650,000 LPL Holdings Inc.
Term Loan B
March 10, 2024
500,000 Zebra Technologies
Corporation
7.250% October 15, 2022
660,512
29,683,196
718,950
31,951,932
Energy (1.7%)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
292,347 CITGO Holding Inc.
Term Loan B
May 12, 2018
438,750 Citgo Petroleum Corporation
New Term Loan B
July 29, 2021
1,385,535 Fieldwood Energy LLC
First Lien Term Loan
October 1, 2018
75,000 Fieldwood Energy LLC
New First Lien Term Loan
August 31, 2020
99,123 Fieldwood Energy LLC
First Lien Last
Out Term Loan
September 30, 2020
125,877 Fieldwood Energy LLC
Second Lien Term Loan
September 30, 2020
710,737 Granite Acquisition Inc.
Term Loan B
December 19, 2021
31,992 Granite Acquisition Inc.
Term Loan C
December 19, 2021
911,167 MEG Energy Corporation
Term Loan B
December 31, 2023
588,493 Murray Energy
Term Loan B2
April 16, 2020
370,313 Paragon Offshore
Finance Company
Term Loan B
July 18, 2021
894,375 Seadrill Partners Finco LLC
Term Loan B
February 21, 2021
752,560 Sheridan Production
Partners I LLC
Term Loan B2
October 1, 2019
99,720 Sheridan Production
Partners I LLC
Term Loan B2 I-A
October 1, 2019
60,910 Sheridan Production
Partners I LLC
Term Loan B2 I-M
October 1, 2019
24,084 Southcross Holdings Borrower
Limited Partnership
Exit Term Loan B
April 13, 2023
342,118
393,151
466,570
586,827
1,516,094
1,773,458
86,089
93,588
123,369
113,364
128,956
119,689
899,597
952,459
40,493
42,873
1,202,703
1,211,065
640,919
756,032
395,027
191,136
968,602
804,322
829,821
865,685
109,958
114,710
67,163
70,066
30,176
7,847,655
28,185
8,116,610
1,331,336
1,339,669
1,076,185
1,086,220
Financials (10.7%)
USD 1,002,193 AlixPartners LLP
Term Loan B
July 28, 2022
USD
812,062 Alliant Holdings I Inc.
Term Loan B
August 12, 2022
262
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Average
Cost ($)
Fair
Value ($)
2,031,888
2,025,059
116,507
118,932
896,763
1,213,963
549,893
718,833
904,039
897,280
335,199
336,616
805,585
973,482
3,860,199
3,881,806
828,096
1,067,933
984,764
1,277,951
420,247
517,272
576,444
643,062
1,887,002
1,945,200
1,799,946
1,793,031
1,617,235
1,651,466
2,759,780
2,805,039
376,508
453,934
1,306,505
1,523,880
1,550,795
1,679,700
1,987,678
1,984,438
122,319
122,119
874,950
866,924
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value
Financials (continued)
Financials (continued)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
736,250 MCS AMS Sub-Holdings LLC
Term Loan B
October 15, 2019
519,750 MGM Growth Properties
Operating Partnership
Limited Partnership
Term Loan B
April 25, 2023
203,279 MIP Delaware LLC
Term Loan B1
March 9, 2020
997,500 NFP Corporation
Term Loan B
January 8, 2024
473,813 NXT Capital Inc.
Term Loan
November 22, 2022
224,732 PGX Holdings Inc.
First Lien Term Loan
September 29, 2020
648,375 Quality Care Properties Inc.
First Lien Term Loan
October 31, 2022
756,077 RE/MAX International Inc.
Term Loan B
December 15, 2023
284,313 Realogy Corporation
Term Loan B
July 20, 2022
273,375 Salient Partners
Limited Partnership
Term Loan
May 19, 2021
39,551 Sheridan Investment Partners II
Limited Partnership
Term Loan A
December 16, 2020
284,323 Sheridan Investment Partners II
Limited Partnership
Term Loan B
December 16, 2020
14,751 Sheridan Investment Partners II
Limited Partnership
Term Loan M
December 16, 2020
250,000 TKC Holdings Inc.
Term Loan
February 1, 2023
675,864 Toys ‘R’ Us Property
Company I LLC
New Term Loan B
August 21, 2019
3,989,733 Trans Union LLC
Term Loan B2
April 9, 2023
926,024 Travelport Finance
(Luxembourg) SARL
Term Loan B
September 2, 2021
1,243,092 USI Inc.
Term Loan B
December 27, 2019
646,750 VF Holding
Corporation Reprice
Term Loan
June 30, 2023
225,000 Virtus Investment Partners Inc.
Term Loan
February 28, 2024
757,263
947,281
697,056
693,954
212,694
270,499
1,322,167
1,338,464
634,233
633,250
300,144
299,047
833,623
877,331
1,005,676
1,006,726
378,113
380,079
322,920
345,370
877,104 Walker & Dunlop Inc.
Term Loan B
December 11, 2020
USD 1,007,581 Walter Investment
Management Corporation
Term Loan
December 18, 2020
Average
Cost ($)
Fair
Value ($)
1,023,589
1,172,249
1,062,151
48,076,181
1,148,991
51,007,463
1,993,790
2,063,049
334,764
331,157
481,592
481,184
702,378
760,787
95,209
96,205
452,422
460,715
713,623
744,957
548,255
600,555
423,223
427,282
793,325
886,161
5,365,239
5,461,474
769,420
797,176
3,020,505
3,102,423
2,025,009
2,149,572
236,442
254,638
398,647
400,950
404,956
484,980
1,161,348
1,247,045
Health Care (12.7%)
41,810
43,261
300,558
310,993
15,593
16,134
323,686
334,956
696,066
860,598
5,287,978
5,344,213
1,245,858
1,239,940
1,446,174
1,653,815
869,444
863,920
299,522
302,583
USD 1,543,237 Acadia Healthcare
Company Inc.
Term Loan B
February 11, 2022
USD
246,553 ADMI Corporation
Term Loan B
April 30, 2022
USD
358,251 Akorn Inc.
Term Loan B
April 16, 2021
USD
572,260 Alere Inc.
Term Loan B
June 18, 2022
USD
71,805 Alkermes Inc.
Term Loan B
September 25, 2021
USD
346,875 AMAG Pharmaceuticals Inc.
First Lien Term Loan
August 13, 2021
USD
560,181 Amneal Pharmaceuticals LLC
New Term Loan
November 1, 2019
USD
444,375 Arbor Pharmaceuticals
Term Loan B
July 5, 2023
USD
318,514 Auris Luxembourg III
SARL USD
Term Loan B7
January 17, 2022
USD
664,700 CareCore National LLC
Term Loan B
March 5, 2021
USD 4,100,000 Change Healthcare
Holdings Inc.
Term Loan B
March 1, 2024
USD
594,249 CHG Healthcare Services Inc.
Term Loan B
June 7, 2023
USD 2,348,570 Community Health
Systems Inc.
Term Loan G
December 31, 2019
USD 1,641,364 Community Health
Systems Inc.
Incremental Term Loan H
January 27, 2021
USD
190,644 Concentra Inc.
First Lien Term Loan
June 1, 2022
USD
300,000 CPI Buyer LLC
First Lien Term Loan
March 15, 2024
USD
364,688 DPx Holdings BV USD
Incremental Term Loan
March 11, 2021
USD
938,125 Endo Luxembourg Finance
Company I SARL
Term LoanB
September 26, 2022
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
263
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value
Health Care (continued)
Health Care (continued)
USD 1,496,250 Envision Healthcare
Corporation
Term Loan B
December 1, 2023
USD
149,250 Genoa, a QoL Healthcare
Company LLC
First Lien Term Loan
October 28, 2023
USD
419,289 Greatbatch Limited
Term Loan B
October 27, 2022
USD
825,000 Grifols Worldwide Operations
USA Inc.
Acquisition Term Loan
January 31, 2025
USD 4,000,000 HCA Inc.
Term Loan B8
February 15, 2024
USD
725,000 HLF Financing SARL
Term Loan B
February 13, 2023
USD
741,375 Horizon Pharma Inc.
Term Loan B
March 15, 2024
USD
476,326 Iasis Healthcare LLC
Term Loan B2
May 3, 2018
USD
306,250 Indivior Finance SARL
USD Term Loan B
December 19, 2019
USD 1,596,000 inVentiv Health Inc.
Term Loan B
November 9, 2023
USD 3,989,848 Jaguar Holding Company II
Term Loan B
August 18, 2022
USD
609,379 Kindred Healthcare Inc.
New Term Loan
April 9, 2021
USD
650,000 Kinetic Concepts Inc.
USD Term Loan B
February 2, 2024
USD 3,150,000 Mallinckrodt International
Finance SA
USD Term Loan B
September 24, 2024
USD
411,610 MMM Holdings Inc.
MMM Term Loan
June 30, 2019
USD
615,670 MPH Acquisition Holdings LLC
Term Loan B
June 7, 2023
USD
299,238 MSO of Puerto Rico Inc.
MSO Term Loan
December 12, 2017
USD
163,198 New Millennium HoldCo Inc.
Exit Term Loan
December 21, 2020
USD
672,554 Onex Carestream Finance
Limited Partnership
First Lien Term Loan
June 7, 2019
USD
504,013 Opal Acquisition Inc.
First Lien Term Loan
November 27, 2020
USD 1,589,312 Ortho-Clinical Diagnostics Inc.
Term Loan B
June 30, 2021
USD
264
2,000,849
2,005,645
USD
USD
198,735
199,175
560,863
557,592
USD
USD
1,083,150
1,099,129
5,235,000
5,360,402
929,121
959,521
989,637
989,615
485,935
631,406
367,417
409,303
2,119,565
2,128,884
5,305,390
5,320,490
823,227
808,104
841,583
862,242
4,192,273
4,185,362
536,069
530,958
797,901
828,471
389,719
386,004
206,693
111,318
696,457
861,974
559,254
623,901
1,970,278
2,094,260
USD
395,000 RadNet Inc. Reprice
Term Loan
June 30, 2023
2,275,000 Select Medical Corporation
Term Loan B
March 6, 2024
270,875 Sterigenics-Nordion
Holdings LLC
Term Loan B
May 15, 2022
675,000 Team Health Holdings Inc.
First Lien Term Loan
February 6, 2024
1,017,325 The Nature’s Bounty
Company USD
Term Loan B
May 5, 2023
1,978,120 Valeant Pharmaceuticals
International Inc.
Term Loan B F1
April 1, 2022
Average
Cost ($)
Fair
Value ($)
515,294
528,246
3,020,199
3,049,361
326,507
360,223
884,672
892,487
1,331,459
1,358,809
2,603,261
58,890,655
2,636,443
60,529,635
1,336,816
1,343,148
1,373,347
1,359,772
1,356,427
1,376,395
1,343,919
1,344,811
1,337,379
1,359,772
1,411,992
1,422,939
694,423
699,834
246,265
344,930
1,334,109
1,337,337
1,396,237
1,405,904
270,552
326,229
273,013
304,619
1,399,507
1,393,018
273,433
360,514
1,374,982
1,396,675
692,922
698,171
High Yield Bonds (9.9%)
USD 1,000,000 Advanced Disposal
Services Inc.
5.625% November 15, 2024
USD 1,000,000 Albertsons Companies LLC/
Safeway Inc./New
Albertson’s Inc.
6.625% June 15, 2024
USD 1,000,000 Alliance Data
Systems Corporation
5.875% November 1, 2021
USD 1,000,000 AMC Entertainment
Holdings Inc.
5.875% November 15, 2026
USD 1,000,000 Antero Resources Corporation
5.625% June 1, 2023
USD 1,000,000 Ardagh Packaging Finance PLC/
Ardagh Holdings USA Inc.
7.250% May 15, 2024
USD
500,000 Camelot Finance SA
7.875% October 15, 2024
USD
250,000 CCO Holdings LLC/
Capital Corporation
5.250% September 30, 2022
USD 1,000,000 Centene Corporation
4.750% January 15, 2025
USD 1,000,000 CenturyLink Inc.
7.500% Series Y
April 1, 2024
USD
250,000 CHS/Community Health
Systems Inc.
8.000% November 15, 2019
USD
250,000 CHS/Community Health
Systems Inc.
7.125% July 15, 2020
USD 1,000,000 CommScope Technologies
Finance LLC
6.000% June 15, 2025
USD
250,000 CSC Holdings LLC
6.750% November 15, 2021
USD 1,000,000 DISH DBS
5.875% November 15, 2024
USD
500,000 Envision Healthcare
Corporation
6.250% December 1, 2024
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
High Yield Bonds (continued)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Face Value
Average
Cost ($)
Fair
Value ($)
558,101
559,867
668,367
681,392
1,416,329
1,432,913
362,199
389,114
1,372,120
1,379,719
772,841
783,780
652,023
635,003
1,368,846
46,089,819
1,402,726
47,225,657
689,728
691,755
634,411
628,231
5,268,214
5,355,899
89,672
93,127
491,565
499,984
224,031
239,350
867,685
984,478
290,146
327,826
318,385
400,922
319,709
360,163
1,091,003
1,103,983
519,265
671,841
1,998,930
2,159,023
High Yield Bonds (continued)
500,000 FBM Finance Inc.
8.250% August 15, 2021
220,000 Frontier Communications
Corporation
6.250% September 15, 2021
80,000 Frontier Communications
Corporation
10.500% September 15, 2022
500,000 HCA Inc.
6.500% February 15, 2020
500,000 Hudbay Minerals Inc.
7.625% January 15, 2025
1,000,000 Infor Software Parent LLC/Infor
Software Parent Inc.
7.125% May 1, 2021
10,000 Intelsat Jackson Holdings SA
7.500% April 1, 2021
90,000 Intelsat Jackson Holdings SA
5.500% August 1, 2023
1,000,000 Mattamy Group Corporation
6.875% December 15, 2023
500,000 MGM Resorts International
6.000% March 15, 2023
500,000 MHGE Parent LLC/MHGE
Parent Finance Inc.
8.500% August 1, 2019
1,000,000 MPH Acquisition Holdings LLC
7.125% June 1, 2024
1,000,000 Numericable-SFR SA
6.250% May 15, 2024
500,000 Oasis Petroleum Inc.
6.875% January 15, 2023
500,000 Park Aerospace
Holdings Limited
5.250% August 15, 2022
500,000 Platform Specialty
Products Corporation
6.500% February 1, 2022
500,000 Prime Security Services
Borrrower LLC/Prime
Finance Inc.
9.250% May 15, 2023
500,000 Quintiles IMS Inc.
5.000% October 15, 2026
500,000 Scientific Games
International Inc.
7.000% January 1, 2022
500,000 Scientific Games
International Inc.
10.000% December 1, 2022
500,000 Sirius XM Radio Inc.
6.000% July 15, 2024
410,000 Spectrum Brands Inc.
5.750% July 15, 2025
1,000,000 Sprint Capital Corporation
6.875% November 15, 2028
1,000,000 Sprint Communications Inc.
6.000% November 15, 2022
1,000,000 Team Health Holdings Inc.
6.375% February 1, 2025
225,000 Tenet Healthcare Corporation
8.125% April 1, 2022
1,000,000 Tervita Escrow Corporation
7.625% December 1, 2021
1,000,000 The AES Corporation
6.000% May 15, 2026
500,000 The Hertz Corporation
7.375% January 15, 2021
USD
718,504
704,820
USD
269,147
272,087
USD
111,885
107,718
564,567
727,681
USD
USD
717,738
721,444
USD
1,350,458
1,359,772
10,940
11,952
USD
USD
85,292
98,741
1,370,078
1,379,719
640,681
718,119
645,453
664,925
1,421,712
1,429,755
1,316,450
1,338,162
667,744
676,561
671,959
691,522
685,351
689,860
714,167
728,924
660,515
667,418
700,160
709,808
Industrials (7.5%)
USD
USD
USD
USD
USD
USD
USD
USD
699,338
708,976
563,808
712,301
570,625
576,590
1,365,571
1,404,654
1,339,373
1,359,772
1,304,882
1,303,253
254,879
312,307
1,379,595
1,373,070
1,355,363
1,376,395
647,435
660,769
400,000 The Nature’s Bounty Company
7.625% May 15, 2021
469,000 The ServiceMaster
Company LLC
7.450% August 15, 2027
1,000,000 T-Mobile US Inc.
6.375% March 1, 2025
280,000 United Rentals
(North America) Inc.
6.125% June 15, 2023
1,000,000 US Foods Inc.
5.875% June 15, 2024
500,000 Western Digital Corporation
10.500% April 1, 2024
500,000 WildHorse Resource
Development Corporation
6.875% February 1, 2025
1,000,000 Zayo Group LLC/Zayo
Capital Inc.
5.750% January 15, 2027
USD
USD
USD
USD
USD
516,688 Advanced Disposal
Services Inc.
Term Loan B3
November 10, 2023
637,312 Ameriforge Group Inc.
First Lien Term Loan
December 19, 2019
3,975,000 Avolon TLB Borrower 1
(Luxembourg) SARL
Term Loan B2
March 20, 2022
70,116 Coinamatic Canada
Inc. Canadian
First Lien Term Loan
May 14, 2022
371,558 CPM Holdings Inc.
Term Loan B
April 11, 2022
181,343 Delachaux SA USD
Term Loan B2
October 28, 2021
732,963 Doosan Infracore
International Inc.
Term Loan B
May 28, 2021
245,439 Electrical Components
International Inc.
Term Loan B
May 28, 2021
298,125 EnergySolutions LLC
New Term Loan
May 29, 2020
269,482 EWT Holdings III Corporation
First Lien Term Loan
January 15, 2021
825,000 Flex Acquisition Company Inc.
First Lien Term Loan
December 29, 2023
506,625 Gardner Denver Inc.
USD Term Loan
July 30, 2020
1,621,932 Gates Global LLC
Term Loan B
July 6, 2021
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
265
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
Face Value
Industrials (continued)
Information Technology (continued)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
199,000 GFL Environmental Inc.
USD Term Loan B
September 29, 2023
223,875 Global Brass and Copper Inc.
Term Loan B
July 18, 2023
633,035 Husky Injection Molding
Systems Limited
First Lien Term Loan
June 30, 2021
253,846 Manitowoc Foodservice Inc.
Term Loan B
March 3, 2023
648,375 Milacron LLC Amended
Term Loan B
September 28, 2023
593,698 Neenah Foundry Company
Term Loan
April 26, 2019
604,661 Paladin Brands Holding Inc.
Term Loan B
August 16, 2019
544,263 Pelican Products Inc.
Term Loan
April 10, 2020
3,601,242 Rexnord LLC
Term Loan B
August 21, 2023
1,378,764 Silver II US Holdings LLC
Term Loan
December 13, 2019
119,143 STS Operating Inc.
Term Loan
February 12, 2021
960,580 Tecomet Inc.
First Lien Term Loan
December 5, 2021
297,750 The Hertz Corporation
Term Loan B
June 30, 2023
297,448 TransDigm Inc.
Term Loan C
February 28, 2020
753,688 TransDigm Inc.
Term Loan D
June 4, 2021
2,992,462 TransDigm Inc. Extended
Term Loan F
June 9, 2023
122,813 Trinseo Materials
Operating SCA
Term Loan B
November 5, 2021
664,896 Univar Inc.
Term Loan B
July 1, 2022
400,364 WASH Multifamily Laundry
Systems LLC
First Lien Term Loan
May 14, 2022
1,475,944 Zekelman Industries Inc.
Term Loan B
June 14, 2021
261,426
265,081
USD
287,595
301,814
USD
674,401
845,946
USD
342,471
340,531
USD
844,184
865,475
USD
777,960
781,634
USD
617,214
759,882
USD
600,271
721,978
USD
4,778,965
4,803,081
USD
1,452,033
1,723,536
USD
130,675
155,669
USD
1,220,622
1,274,234
USD
382,499
396,334
USD
306,063
395,166
USD
817,748
999,159
USD
3,906,594
3,957,141
USD
147,288
164,785
USD
885,143
884,654
USD
512,033
531,758
USD
1,954,999
33,702,928
1,988,138
35,672,578
USD
Information Technology (10.5%)
USD 1,513,664 Amaya Holdings BV Repriced
Term Loan B
August 1, 2021
266
USD
2,030,194
2,015,462
519,750 Ancestry.com Operations Inc.
First Lien Term Loan
October 19, 2023
467,875 Answers Corporation
First Lien Term Loan
October 3, 2021
1,495,973 Applied Systems Inc.
New First Lien Term Loan
January 25, 2021
508,564 Ascend Learning LLC
New Term Loan B
July 31, 2019
392,000 Auction.com LLC
Term Loan B
May 12, 2019
518,438 Avast Software BV
USD Term Loan B
September 30, 2022
308,146 Campaign Monitor Finance
Pty. Limited
First LienTerm Loan
March 18, 2021
854,195 CCC Information Services Inc.
Term Loan
December 20, 2019
483,231 CommScope Inc.
Term Loan B5
December 29, 2022
692,500 Cypress Semiconductor
Corporation
Term Loan B
July 5, 2021
2,121,414 EIG Investors Corporation
Term Loan
November 9, 2019
274,313 Electro Rent Corporation
First Lien Term Loan
January 19, 2024
1,496,140 Eze Castle Software Inc.
First Lien Term Loan
April 6, 2020
386,132 First Data Corporation
USD Repriced Term Loan
July 10, 2022
369,401 Global Healthcare Exchange
Term Loan B
August 15, 2022
1,046,832 Hyland Software Inc.
Term Loan
July 1, 2022
1,000,000 Infoblox Inc.
Term Loan
November 1, 2023
3,743,994 Infor (US) Inc.
Term Loan B6
February 1, 2022
1,614,688 Informatica Corporation
USD Term Loan
August 5, 2022
1,200,000 Information Resources Inc.
First Lien Term Loan
January 18, 2024
577,830 ION Trading Finance Limited
Term Loan B1
August 11, 2023
612,500 IPC Corporation
Term Loan B
August 6, 2021
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Average
Cost ($)
Fair
Value ($)
685,103
696,949
503,029
279,992
2,015,055
1,998,123
632,597
678,850
468,956
524,559
674,313
693,538
331,315
397,495
980,436
1,135,951
648,969
645,303
913,909
928,116
2,551,238
2,835,974
358,444
367,683
1,955,626
1,992,129
516,524
517,420
478,463
497,388
1,379,197
1,402,918
1,327,370
1,342,317
4,904,331
4,971,835
2,054,649
2,133,872
1,589,686
1,613,773
770,623
766,026
733,390
757,516
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
Face Value
Information Technology (continued)
Information Technology (continued)
USD 1,446,375 Kronos Inc.
New First Lien Term Loan
November 1, 2023
USD
189,395 Lattice Semiconductor
Corporation
Term Loan
March 10, 2021
USD
525,000 Lumileds Holding BV
Term Loan B
February 27, 2024
USD
342,856 M/A-COM Technology
Solutions Holdings Inc.
Term Loan
May 7, 2021
USD
391,875 MA FinanceCo. LLC
Term Loan C
November 20, 2019
USD
410,805 MA FinanceCo. LLC
Term Loan B2
November 19, 2021
USD 1,009,904 Magic Newco LLC
First Lien Term Loan
December 12, 2018
USD
153,125 Match Group Inc.
Term B-1 Loan
November 16, 2022
USD
373,125 MTS Systems Corporation
Term Loan B
July 5, 2023
USD
424,250 Prime Security Services
Borrower LLC
First Lien Term Loan
May 2, 2022
USD
293,226 ProQuest LLC
New Term Loan B
October 24, 2021
USD 1,085,217 Quintiles IMS Inc.
USD Term Loan B
March 1, 2024
USD 1,000,000 Ramundsen Holdings LLC
First Lien Term Loan
February 1, 2024
USD 1,172,818 Renaissance Learning Inc.
New First Lien Term Loan
April 9, 2021
USD
100,000 Renaissance Learning Inc.
New Second Lien Term Loan
April 11, 2022
USD
298,500 Rocket Software Inc.
First Lien Term Loan
October 14, 2023
USD 1,995,000 Sabre GLBL Inc.
Term Loan B
February 22, 2024
USD
950,625 SkillSoft Corporation
First Lien Term Loan
April 28, 2021
USD
612,242 SS&C Technologies Inc.
Term Loan B1
July 8, 2022
USD
52,337 SS&C Technologies Inc.
Term Loan B2
July 8, 2022
USD
175,000 Synchronoss Technologies Inc.
Term Loan
January 19, 2024
USD
1,902,835
1,932,779
USD
236,570
251,237
USD
696,796
706,026
USD
USD
469,560
463,071
416,250
524,020
535,619
549,919
1,051,837
1,346,939
USD
203,123
206,688
USD
481,468
501,162
576,016
568,924
USD
383,945
393,115
USD
1,465,026
1,451,834
USD
1,324,299
1,343,148
USD
1,385,576
1,562,597
109,217
132,320
USD
916,532 Syniverse Holdings Inc.
Term Loan B
April 23, 2019
473,813 Uber Technologies
Term Loan B
July 13, 2023
450,450 Veritas US Inc.
USD Term Loan B1
January 27, 2023
225,000 Vivid Seats Limited
Term Loan B
October 7, 2022
299,250 Wall Street Systems
Delaware Inc.
Term Loan B
August 26, 2023
615,358 Western Digital Corporation
USD Term Loan B
April 29, 2023
Average
Cost ($)
Fair
Value ($)
944,553
1,121,342
603,753
628,682
497,358
594,788
292,890
299,964
393,334
398,952
833,897
48,470,135
823,448
50,345,321
162,954
167,011
2,180,672
2,168,713
407,460
407,685
597,813
597,186
729,744
936,305
671,500
685,138
231,146
288,974
330,643
331,770
330,312
332,454
669,189
785,356
1,988,095
2,010,568
76,570
82,703
495,257
500,283
441,422
561,496
Materials (6.4%)
USD
USD
USD
391,247
400,533
USD
2,606,099
2,670,296
USD
1,041,176
1,160,420
USD
825,153
818,407
USD
70,538
69,961
USD
228,583
231,560
125,000 Atotech BV
Term Loan B1
January 31, 2024
1,618,153 Axalta Coating Systems US
Holdings Inc.
Term Loan B1
February 1, 2023
304,424 Berry Plastics Group Inc.
Term Loan I
October 1, 2022
450,000 BWAY Holding Company
Term Loan B
March 22, 2024
701,438 CPG International Inc.
New Term Loan
September 30, 2020
519,747 Dynacast International LLC
Term Loan B
January 28, 2022
216,271 Emerald Performance
Materials LLC
New First LienTerm Loan
August 1, 2021
250,000 Emerald Performance
Materials LLC
New Second Lien Term Loan
August 1, 2022
248,750 Expera Specialty Solutions LLC
USD Term Loan B
November 3, 2023
603,125 Fairmount Santrol Inc.
New Term Loan B2
September 5, 2019
1,500,000 Filtration Group Corporation
First Lien Term Loan
November 21, 2020
62,241 Flint Group GmbH
USD Term Loan C
September 7, 2021
376,509 Flint Group US LLC
USD First Lien Term Loan B2
September 7, 2021
420,281 FMG Resources (August 2006)
Pty. Limited
New Term Loan B
June 30, 2019
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
267
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
Face Value
Materials (continued)
Telecommunication Services (6.2%)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
268
195,005 Gemini HDPE LLC
Term Loan B
August 7, 2021
199,000 Huntsman International LLC
Term Loan B1
October 1, 2021
472,625 Huntsman International LLC
Term Loan B2
April 1, 2023
220,508 Ineos US Finance LLC
USD Term Loan
March 31, 2022
3,291,750 Ineos US Finance LLC
USD Term Loan
April 1, 2024
1,277,308 Kraton Polymers LLC
Term Loan B
January 6, 2022
121,250 Kronos Worldwide Inc.
Term Loan
February 18, 2020
1,567,829 MacDermid Inc.
USD Term Loan
June 7, 2023
421,186 Minerals Technologies Inc.
Term Loan B
February 14, 2024
203,254 Orion Engineered
Carbons GmbH
USD Term Loan
July 25, 2021
113,665 Oxbow Carbon LLC
New Term Loan B
July 19, 2019
1,000,000 Oxbow Carbon LLC
Second Lien Term Loan
January 17, 2020
640,659 OXEA Finance LLC
USD Term Loan B2
January 15, 2020
1,822,567 PQ Corporation
USD Term Loan
November 4, 2022
49,875 Quikrete Holdings Inc.
First Lien Term Loan
November 15, 2023
1,434,189 Reynolds Group Holdings Inc.
USD Term Loan
February 5, 2023
777,226 SIG Combibloc US
Acquisition Inc.
USD Term Loan
March 13, 2022
120,796 Solenis International
Limited Partnership
USD First Lien Term Loan
July 31, 2021
337,499 Tank Holding
Corporation Refinance
Term Loan
March 16, 2022
1,158,909 Tronox Pigments
(Netherlands) BV
Term Loan B
March 19, 2020
122,813 Zep Inc.
Term Loan
June 26, 2022
258,119
261,758
USD
264,118
266,460
USD
627,279
634,020
USD
294,270
294,388
USD
4,332,555
4,390,040
USD
1,702,602
1,713,491
USD
151,723
161,177
2,071,889
2,099,051
USD
551,930
565,715
USD
USD
268,282
272,212
USD
124,249
151,157
USD
1,053,418
1,336,499
USD
670,421
827,841
USD
2,449,170
2,445,813
USD
66,088
66,976
USD
1,893,334
1,914,706
USD
1,030,473
1,038,187
USD
128,191
160,917
USD
USD
422,793
447,327
USD
1,353,831
1,549,177
USD
166,637
29,194,149
165,364
30,617,918
299,250 Altice US Finance I Corporation
Term Loan B
January 15, 2025
195,000 AP NMT Acquisition BV
USD First Lien Term Loan
August 13, 2021
225,000 CBS Radio Inc.
Term Loan B
March 2, 2024
375,000 Colorado Buyer Inc.
Term Loan B
March 28, 2024
150,000 Consolidated Communications
Inc. Delayed Draw
Term Loan B2
October 5, 2023
836,719 CSC Holdings LLC
Term Loan
October 11, 2024
136,646 Entravision Communications
Corporation
New Term Loan
May 31, 2020
240,364 Extreme Reach Inc.
First Lien Term Loan
February 7, 2020
1,063,907 Getty Images Inc.
Term Loan B
October 18, 2019
203,472 Hubbard Radio LLC
Term Loan B
May 27, 2022
1,525,000 Intelsat Jackson Holdings SA
Term Loan B2
June 30, 2019
1,575,000 Level 3 Financing Inc.
Term Loan B
February 22, 2024
364,688 MCC Iowa LLC
Term Loan J
June 30, 2021
69,600 Mission Broadcasting Inc.
Term Loan B2
January 17, 2024
717,900 Nexstar Broadcasting Inc.
Term Loan B
January 17, 2024
223,313 Numericable U.S. LLC
USD Term Loan B7
January 15, 2024
975,000 Onvoy LLC
First Lien Term Loan B
February 10, 2024
175,000 Radiate Holdco LLC
First Lien Term Loan
February 1, 2024
4,325,000 Sprint Communications Inc.
First Lien Term Loan B
February 2, 2024
235,405 SurveyMonkey Inc.
Term Loan B
February 5, 2019
1,194,008 Telesat Canada
Term Loan B4
November 17, 2023
4,378,380 Univision Communications Inc.
Term Loan C5
March 15, 2024
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Average
Cost ($)
Fair
Value ($)
398,795
396,465
213,702
231,573
301,455
300,338
496,480
501,561
199,182
200,325
1,110,081
1,109,465
140,868
181,264
258,801
322,578
1,041,231
1,234,445
249,390
269,235
1,615,740
1,996,333
2,072,013
2,095,561
395,297
488,466
91,892
92,982
947,837
959,075
287,414
297,789
1,270,925
1,296,604
229,505
233,680
5,661,119
5,751,601
304,033
313,054
1,572,426
1,598,966
5,823,376
5,777,103
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Telecommunication Services (continued)
625,000 UPC Financing Partnership
USD Term Loan AP
April 15, 2025
USD 1,600,000 Virgin Media Investment
Holdings Limited
Term Loan I
January 31, 2025
USD
825,000 Ziggo Secured
Finance Partnership
USD Term Loan E
April 15, 2025
Average
Cost ($)
Fair
Value ($)
109,714
397,415
111,004
634,051
9,187
–
9,188
525,504
13,830
758,885
43,028
159,103
211,327
17,567
–
–
Total Investments (96.7%)
444,404,674
Foreign Exchange Forward Contracts (-1.0%)
461,916,478
No. of Shares
Energy – Equity (0.2%)
USD
811,778
832,819
2,129,942
2,132,547
1,075,497
28,698,779
1,095,951
29,709,780
Financials – Equity (0.0%)
Utilities (1.4%)
USD
USD
USD
USD
USD
USD
USD
USD
145,455 Calpine Corporation
First Lien Term Loan
November 30, 2017
100,000 Calpine Corporation
Term Loan B8
December 26, 2019
1,154,438 Calpine Corporation
Term Loan B5
January 15, 2024
2,000,000 Dynegy Inc.
Term Loan C
June 27, 2023
559,351 Eastern Power LLC
Term Loan B
October 2, 2021
450,000 Helix Gen Funding LLC
Term Loan B
February 23, 2024
241,963 Invenergy Thermal
Operating I LLC
Term Loan B
October 19, 2022
243,726 Lonestar Generation LLC
Term Loan B
February 22, 2021
8,347 Samson Investment
Company Rights*
29,799 Samson Resources II LLC ‘A’
26 Southcross Holdings Borrower
Limited Partnership*
26 Southcross Holdings Borrower
Limited Partnership ‘A’
8,251 RCS Capital Corporation
Health Care – Equity (0.0%)
17,613 Millennium Labs
Commissions and other portfolio
transaction costs (Note 2)
193,003
193,433
130,066
132,961
See Schedule A
1,547,523
–
(4,753,073)
1,540,026
Total Portfolio (95.7%)
2,657,363
2,667,347
738,118
748,813
602,671
605,539
306,162
308,903
272,609
6,447,515
307,913
6,504,935
444,404,674
457,163,405
* Private and/or Restricted
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Floating Rate Income Fund (the “Fund”).
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
CAD
CAD
CAD
CAD
89,253,151
22,000,000
22,000,000
25,500,000
161,940,000
144,627,055
USD
USD
USD
USD
USD
USD
Sold Currency
Forward Rate
Maturity Date
68,248,094
16,791,150
16,837,800
19,476,056
123,728,827
108,690,662
1.3078
1.3102
1.3066
1.3093
1.3088
1.3306
April 28, 2017
April 28, 2017
April 28, 2017
April 28, 2017
May 31, 2017
June 30, 2017
Fair Value ($)
(1,469,632)
(320,622)
(382,633)
(389,690)
(2,463,358)
272,862
(4,753,073)
Counterparty
Credit Rating
Citibank NA
HSBC
JP Morgan Chase & Company
State Street Global Market LLC**
Citibank NA
State Street Global Market LLC**
A
AA
A
A
A
A
** Credit Rating is that of the parent company
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
269
AGF Floating Rate Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide a high level of current
income by investing primarily in senior floating rate loans and other
floating rate debt securities of companies domiciled in the United States.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Sector
March 31, 2017
(%)
Term Loans:
Consumer Discretionary
Health Care
Financials
Information Technology
Industrials
Materials
Consumer Staples
Telecommunication Services
Energy
Utilities
Subtotal
High Yield Bonds
Corporate Bonds
Energy – Equity
Financials – Equity
Health Care – Equity
Foreign Exchange Forward Contracts
16.5
12.7
10.7
10.5
7.5
6.4
6.3
6.2
1.7
1.4
79.9
9.9
6.7
0.2
0.0
0.0
(1.0)
September 30, 2016
(%)
Term Loans:
Consumer Discretionary
Information Technology
Financials
Materials
Health Care
Industrials
Telecommunication Services
Consumer Staples
Energy
Utilities
Subtotal
Corporate Bonds
High Yield Bonds
Materials – Equity
Financials – Equity
Energy – Equity
Health Care – Equity
Foreign Exchange Forward Contracts
19.7
12.1
11.7
10.7
10.7
6.6
4.6
4.4
3.3
1.3
85.1
7.7
2.8
0.1
0.0
0.0
0.0
0.0
Portfolio by Asset Mix
March 31, 2017
(%)
United States Fixed Income
International Fixed Income
Canadian Fixed Income
United States Equity
Foreign Exchange Forward Contracts
84.2
7.9
4.4
0.2
(1.0)
270
September 30, 2016
(%)
United States Fixed Income
International Fixed Income
Canadian Fixed Income
United States Equity
Foreign Exchange Forward Contracts
86.5
5.5
3.6
0.1
0.0
As at March 31, 2017, the total fair value of private and/or restricted
securities held within the Fund represented approximately $754,000
(September 30, 2016 – $1,256,000).
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund invested in
debt instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AA
A
BBB
BB
B
CCC
CC
C
Not Rated
March 31,
2017
September 30,
2016
(0.1)
9.4
1.1
32.6
46.1
9.2
0.0
–
7.5
–
6.0
0.6
26.4
51.6
8.6
0.0
0.3
8.1
Interest Rate Risk
As at March 31, 2017 and September 30, 2016, the Fund’s exposure to
debt instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
March 31,
2017
September 30,
2016
912
51,254
122,495
286,320
1,265
41,931
125,073
97,980
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at March 31, 2017 and September 30, 2016, if the yield curve had
shifted in parallel by 25 basis points, with all other variables held
constant, Net Assets would have increased or decreased, respectively,
by approximately $1,648,000 (September 30, 2016 – $787,000).
As at March 31, 2017, the Fund held cash and cash equivalents which
were subject to fluctuations in the prevailing levels of market interest
rates. If market interest rates had changed by 25 basis points, with all
other variables held constant, interest income would have changed by
approximately $123,000. As at September 30, 2016, the Fund did not
hold any significant cash and cash equivalents.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Floating Rate Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 35 percent change in
benchmark (September 30, 2016 – 40 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
March 31,
2017
Benchmark
S&P/LSTA Leveraged Loan Index
(6,493)
September 30,
2016
(3,805)
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
499,683
(470,073) 29,610
6.2
September 30, 2016
($’000)
United States Dollar
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
–
–
–
–
–
–
–
Level 2
824
460,338
–
–
461,162
273
(5,026)
Level 3
111
643
–
–
754
–
–
Total
935
460,981
–
–
461,916
273
(5,026)
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
–
–
–
–
–
–
–
Level 2
459
264,993
–
–
265,452
336
(330)
Level 3
–
1,256
–
–
1,256
–
–
Total
459
266,249
–
–
266,708
336
(330)
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
The following tables reconcile the Fund’s level 3 fair value measurements
for the periods ended March 31, 2017 and September 30, 2016. The
level 3 positions held in the Fund were not considered significant.
March 31, 2017
March 31, 2017
($’000)
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $592,000 (September 30,
2016 – $112,000).
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
279,138
(273,559)
5,579
2.0
** Includes both monetary and non-monetary instruments, as applicable
($’000)
Balance at Beginning of Period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
March 31, 2017
Debt
Equities Instruments Total
–
110
–
–
–
1
111
1,256 1,256
–
110
(418) (418)
(244) (244)
94
94
(45)
643
(44)
754
54
During the period ended March 31, 2017, investments of approximately
$244,000 were transferred from level 3 to level 2 due to a change in
valuation to the use of quoted prices from recognized investment
dealers.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
271
AGF Floating Rate Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
($’000)
Balance at Beginning of Period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
Equities
Debt
Instruments
Total
62
–
–
–
(5)
1,377
40
(293)
210
(910)
1,439
40
(293)
210
(915)
(57)
–
832
1,256
775
1,256
44
During the period ended September 30, 2016, investments of
approximately $2,208,000 were transferred into level 3 from level 2 due
to a change in valuation requiring the use of unobservable inputs, while
investments of approximately $1,998,000 were transferred from level 3
to level 2 primarily due to a change in valuation to the use of quoted
prices from recognized investment dealers.
272
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Global Balanced Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
145,155
73
5,992
–
155
124
–
–
588
75
152,162
September 30,
2016
$
148,350
41
3,212
–
64
187
–
–
586
78
152,518
$
$
–
–
4
–
53
249
263
15
162
–
–
746
151,416
130,698
$
$
–
–
1
–
47
215
150
15
342
–
–
770
151,748
137,679
$
$
$
$
$
$
$
$
$
116,735
–
3,018
28,140
–
–
2,361
1,162
–
$
$
$
$
$
$
$
$
$
123,441
–
2,167
22,533
–
–
2,648
959
–
$
$
$
$
$
$
$
$
$
23.69
–
23.56
23.92
–
–
7.38
10.08
–
$
$
$
$
$
$
$
$
$
22.80
–
22.67
23.12
–
–
7.40
9.95
–
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
273
AGF Global Balanced Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
274
2017
$
1,094
267
560
2,094
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
1,275
27
633
(946)
3,786
7,801
131
3,513
4,502
(108)
29
160
7
17
(91)
8
(130)
7,838
336
4,755
1,230
1,327
183
8
11
43
–
17
–
1
156
115
219
17
7
32
–
14
8
1
167
159
39
1,803
34
1,985
(24)
1,779
(61)
1,924
$
6,059
$
2,831
$
$
$
$
$
$
$
$
$
4,488
–
112
1,329
–
–
91
39
–
$
$
$
$
$
$
$
$
$
2,508
–
32
221
–
–
61
9
–
$
$
$
$
$
$
$
$
$
0.86
–
1.06
1.24
–
–
0.27
0.38
–
$
$
$
$
$
$
$
$
$
0.42
–
0.46
0.35
–
–
0.15
0.12
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
6,0`59
SEMI-ANNUAL REPORT 2017
$
2
2,831
(393)
(2,225)
1,054
(3,815)
(30,668)
(3,530)
(48,505)
39,956
37,780
(199)
–
(27)
–
(2)
(145)
–
3
–
(21)
6
34
9,151
(8)
(43)
(11,007)
(96)
10,678
(125)
22,800
(16,951)
(6,369)
(15,803)
6,872
(2)
393
$
2,782
3,212
5,992
$
$
601
$
630
$
1,003
$
975
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2016
(4,135)
9,933
6,191
AGF Global Balanced Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
2017
123,441
–
2,167
22,533
–
–
2,648
959
–
151,748
2016
$
126,309
–
1,299
7,606
–
–
3,108
632
–
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
138,954
4,488
–
112
1,329
–
–
91
39
–
6,059
2,508
–
32
221
–
–
61
9
–
2,831
5,642
–
913
4,680
–
–
136
191
–
11,562
10,708
–
552
11,094
–
–
221
243
–
22,818
4
–
10
431
–
–
28
6
–
479
4
–
–
157
–
–
26
7
–
194
(16,834)
–
(172)
(402)
–
–
(442)
(7)
–
(17,857)
(14,961)
–
(93)
(19)
–
–
(673)
(19)
–
(15,765)
(5,816)
7,247
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
–
–
(12)
(431)
–
–
–
–
–
(443)
2016
$
–
–
–
–
–
–
–
–
–
–
–
–
–
(157)
–
–
–
–
–
(157)
–
–
–
–
–
–
–
–
–
–
(6)
–
–
–
–
–
(100)
(26)
–
(132)
(4)
–
–
–
–
–
(122)
(19)
–
(145)
(332)
9,776
116,735
–
3,018
28,140
–
–
2,361
1,162
–
124,564
–
1,790
18,902
–
–
2,621
853
–
151,416
$
148,730
275
AGF Global Balanced Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares/Units/
Face Value
Average
Cost ($)
Fair
Value ($)
991,900
888,541
230,804
1,222,704
236,036
1,124,577
885,381
880,887
1,830,133
1,742,015
83,063
87,580
22,492
105,210
78,126
43,727
93,534 Brambles Limited
215,000 New South Wales
Treasury Corporation
4.000% April 20, 2023
204,248
263,400
577,295
595,157
105,259
1,079,937
116,817
1,202,437
8,832
6,358
3,562
3,340
11,518
3,296
1,464
Austria (0.6%)
16,827 Voestalpine AG
Belgium (1.2%)
11,933 Anheuser-Busch InBev SA/NV
Brazil (0.8%)
BRL
EUR
BRL
16,999 Petroleo Brasileiro SA –
Petrobras Preferred
6,184 Vale SA ADR
3,649 Vale SA Preferred ‘A’
600,000 Federal Republic of Brazil
10.000% January 1, 2019
400,000 Federal Republic of Brazil
2.875% April 1, 2021
250,000 Federal Republic of Brazil
12.500% January 5, 2022
Canada (18.9%)
213,310 AGF Emerging Markets
Fund – Series S Units
827,418 AGF Global Resources
Fund – Series S Units
1,457 Agnico Eagle Mines Limited
6,185 Agrium Inc.
7,330 Alimentation Couche-Tard
Inc. ‘B’
3,413 Bank of Montreal
5,938 BCE Inc.
8,257 CAE Inc.
3,639 Canadian Imperial Bank
of Commerce
8,592 Canadian National
Railway Company
14,734 Canadian Natural
Resources Limited
2,772 Canadian Western Bank
787 CCL Industries Inc.
4,907 CGI Group Inc. ‘A’
2,917 Dollarama Inc.
9,640 Enbridge Inc.
5,208 Enerflex Limited
3,790 Fortis Inc.
978 Franco-Nevada Corporation
23,612 Goldcorp Inc.
8,033 HudBay Minerals Inc.
4,077 Inter Pipeline Limited
4,365 Intertape Polymer Group Inc.
1,926 Kinaxis Inc.
25,518 Manulife Financial Corporation
1,382 New Flyer Industries Inc.
2,385 Onex Corporation
5,602 Open Text Corporation
7,844 Pason Systems Inc.
7,172 Peyto Exploration &
Development Corporation
11,360 Power Corporation of Canada
4,519 PrairieSky Royalty Limited
17,156 Raging River Exploration Inc.
1,946 Restaurant Brands
International Inc.
7,352 Royal Bank of Canada
14,925 Secure Energy Services Inc.
9,988 Sun Life Financial Inc.
17,247 Suncor Energy Inc.
276
Average
Cost ($)
Fair
Value ($)
240,637
275,294
105,126
256,835
274,475
110,600
88,310
698,693
116,795
101,770
767,214
97,726
76,686
179,387
146,053
81,428
168,229
157,303
74,201
73,198
251,658
255,644
597,297
593,310
486,247
452,848
350,604
337,474
814,915
837,252
160,754
203,915
366,529
361,900
272,589
340,967
243,764
248,940
169,048
200,074
463,250
471,281
207,550
201,745
480,326
493,177
135,204
133,011
63,015
27,274,148
61,878
28,565,611
214,553
226,798
110,652
325,205
113,280
340,078
1,063,889
1,810,037
2,873,926
919,777
1,689,533
2,609,310
419,553
477,956
977,963
934,462
38,357
339,775
51,824
378,809
Canada (continued)
Australia (0.7%)
AUD
No. of Shares/Units/
Face Value
CAD
16,254
3,349
74,000
CAD
250,000
CAD
600,000
CAD
250,000
CAD
250,000
GBP
500,000
Teck Resources Limited
TELUS Corporation
TFI International Inc.
The Descartes Systems
Group Inc.
The Toronto-Dominion Bank
Tourmaline Oil Corporation
West Fraser Timber
Company Limited
Whitecap Resources Inc.
WSP Global Inc.
Crew Energy Inc.
6.500% March 14, 2024
Government of Canada
1.750% September 1, 2019
Government of Canada
1.500% June 1, 2026
Government of Canada
Real Return Bonds
3.000% December 1, 2036
Government of Canada
Real Return Bonds
1.500% December 1, 2044
Province of Alberta
1.000% November 15, 2021
Province of British Columbia
2.650% September 22, 2021
Province of British Columbia
0.875% October 8, 2025
Province of Manitoba
3.050% May 14, 2024
Province of Ontario
6.250% September 29, 2020
Province of Ontario
2.450% June 29, 2022
Province of Ontario
0.875% January 21, 2025
Province of Quebec
2.875% October 16, 2024
Province of Quebec
0.875% January 15, 2025
Royal Bank of Canada
Floating Rate
1.480% March 2, 2020
Vermilion Energy Inc.
5.625% March 15, 2025
2,610,695
3,024,737
USD
150,000
7,022,678
94,395
801,514
7,140,619
82,204
785,911
EUR
250,000
USD
250,000
444,441
293,963
370,977
148,373
440,386
339,013
349,630
167,782
AUD
220,000
USD
150,000
EUR
325,000
380,469
417,284
USD
150,000
730,548
843,391
EUR
340,000
625,232
70,694
187,011
296,629
290,385
531,919
93,010
162,759
89,984
512,617
76,604
112,022
93,221
115,907
527,008
60,176
199,816
227,338
136,251
641,518
81,580
228,340
312,674
321,483
537,044
98,848
167,025
85,203
458,132
70,209
114,278
102,054
142,851
601,970
67,829
227,648
253,210
150,683
USD
100,000
USD
47,000
251,336
323,942
129,902
175,274
196,154
354,886
126,803
160,066
Colombia (0.3%)
113,851
607,949
145,254
518,731
637,341
144,160
712,335
146,265
485,017
704,195
Czech Republic (0.6%)
Cayman Islands (0.2%)
USD
USD
130,000 Ctrip.com International Limited
Convertible Bonds
1.250% October 15, 2018
85,000 Fibria Overseas
Finance Limited
5.500% January 17, 2027
China (1.7%)
579,211 CNOOC Limited
25,445 iShares MSCI China ETF
COP 1,000,000,000 Republic of Colombia
7.000% Series B
May 4, 2022
18,935 Komercni banka AS
France (1.5%)
395 Arkema SA
4,277 BNP Paribas SA
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Global Balanced Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
No. of Shares/Units/
Face Value
Average
Cost ($)
Fair
Value ($)
858,636
674,652
904,030
705,901
France (continued)
EUR
JPY
160,680
2,072,100
154,999
2,195,563
14,895
11,868
35,527
200,000
Hannover Rueck SE
Henkel AG & Company KGaA
iShares MSCI Germany ETF
Federal Republic of Germany
Inflation Linked Bond
0.500% April 15, 2030
25,000,000 KfW
2.050% February 16, 2026
110,235 AIA Group Limited
337,756
334,027
295,806
5,333,125
355,558
6,086,825
MXN
843,439
924,301
MXN
498,252
280,276
300,407
648,652
928,928
638,696
939,103
JPY
JPY
MXN
930,000 United Mexican States
4.750% June 14, 2018
3,500,000 United Mexican States
6.500% Series M
June 9, 2022
8,500,000 United Mexican States
5.750% March 5, 2026
550,000 United Mexican States
7.750% November 23, 2034
44,962 ING Groep NV
20,247 iShares MSCI Netherlands ETF
25,949
322,388
310,403
328,542
360,115
554,925
1,205,855
636,851
1,307,369
63,557
64,675
277,878
244,010
636,431
552,626
39,272
1,017,138
40,435
901,746
895,669
665,776
1,561,445
903,863
721,872
1,625,735
385,002
401,620
54,172
439,174
54,532
456,152
74,728
590,155
36,518
559,535
131,043
120,760
525,785
1,321,711
516,988
1,233,801
223,416
225,091
395,058
618,474
438,858
663,949
179,581
170,172
308,119
487,700
311,898
482,070
321,910
309,380
642,049
644,445
184,021
1,147,980
170,647
1,124,472
55,792
57,238
338,297
374,870
New Zealand (0.3%)
NZD
NZD
32,418
30,693
868,193
900,611
493,322
524,015
566,912
720,948
284,230
286,358
252,731
254,001
Astellas Pharma Inc.
Canon Inc.
FUJIFILM Holdings Corporation
iShares MSCI Japan ETF
Keyence Corporation
Nippon Telegraph and
Telephone Corporation
30,000,000 Development Bank of
Japan Inc.
2.300% March 19, 2026*
73,000,000 Japan Government
1.200% September 20, 2035
10,000,000 Japan Government
0.400% March 20, 2036
375,000 Government of New Zealand
5.500% April 15, 2023
60,000 Government of New Zealand
2.750% April 15, 2025
Norway (0.8%)
NOK
8,361 Fred. Olsen Energy ASA
37,567 Global X MSCI Norway ETF
700,000 Kingdom of Norway
3.750% May 25, 2021
3,000,000 Kingdom of Norway
3.000% March 14, 2024
Peru (0.4%)
PEN
PEN
207,420
1,311,293
197,872
1,459,179
2,379,788
524,836
940,884
1,036,160
1,985,368
2,248,044
616,616
1,010,545
1,099,015
3,034,794
1,764,718
2,173,293
Japan (7.7%)
JPY
28,067
Mexico (0.6%)
NOK
199,599 Intesa Sanpaolo SpA
200,000 Cassa di Risparmio di Parma e
Piacenza SpA
0.875% June 16, 2023
200,000 Intesa Sanpaolo SpA
Floating Rate
7.700% December 29, 2049
125,000 Republic of Italy Inflation Index
Linked Notes
2.350% September 15, 2024
128,375
14,872
19,457
16,047
5,699
38,287
2,000,000 European Investment Bank
1.500% May 12, 2022*
200,000 European Investment Bank
2.500% October 31, 2022*
44,000,000 European Investment Bank
2.150% January 18, 2027*
485,750
Italy (1.0%)
EUR
20,000 Ensco Jersey Finance Limited
Convertible Bonds
3.000% January 31, 2024
Netherlands (1.1%)
200,000 Allied Irish Banks PLC
7.375% December 29, 2049
450,000 Republic of Ireland
1.000% May 15, 2026
40 Teva Pharmaceutical Industries
Limited Convertible
Preferred 7.000%
11,560 Teva Pharmaceutical
Industries Limited ADR
USD
JPY
MXN
90,000,000 Republic of Hungary
5.500% Series 25/B
June 24, 2025
Israel (0.4%)
EUR
NOK
2,285,357
1,753,573
1,358,310
Ireland (0.6%)
EUR
Fair
Value ($)
Luxembourg (0.9%)
1,919,905
1,491,601
1,288,057
Hungary (0.3%)
EUR
USD
GBP
Hong Kong (0.6%)
HUF
Average
Cost ($)
Jersey (0.0%)
9,285 Schneider Electric SE
10,494 TOTAL SA
100,000 Republic of France Inflation
Index Linked Notes
0.250% July 25, 2024
Germany (4.0%)
EUR
Face Value/
No. of Shares/Units
Poland (0.3%)
PLN
PLN
EUR
426,843
EUR
807,184
969,352
112,885
9,998,726
115,394
11,693,896
450,000 Republic of Poland
5.750% October 25, 2021
1,000,000 Republic of Poland
2.500% July 25, 2026
Portugal (0.7%)
USD
446,903
500,000 Republic of Peru
7.840% August 12, 2020
1,050,000 Republic of Peru
5.700% August 12, 2024
200,000 Republic of Portugal
4.750% June 14, 2019
500,000 Republic of Portugal
5.125% October 15, 2024
125,000 Republic of Portugal
2.875% October 15, 2025
Russia (0.3%)
RUB
RUB
2,500,000 Russian Federation
6.800% December 11, 2019
16,000,000 Russian Federation
7.600% April 14, 2021
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
277
AGF Global Balanced Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Face Value/
No. of Shares/Units
Average
Cost ($)
Fair
Value ($)
Russia (continued)
RUB
No. of Shares/
Face Value
76,684 Keppel Corporation Limited
17,577 Keppel Real Estate
Investment Trust
58,781 Singapore Press
Holdings Limited
56,712
450,801
58,515
490,623
576,508
505,936
18,668
17,545
220,930
816,106
198,380
721,861
27,630
14,546
12,659
20,919
14,544
14,664
22,511
2,462
4,150
26,272
26,997
4,352
17,461
22,318
20,899
7,839
19,700
20,583
5,579
9,103
South Korea (3.7%)
9,179 iShares MSCI South Korea
Capped ETF
11,270 Kia Motors Corporation
307 Samsung Electronics Company
Limited
2,968 Samsung Electronics Company
Limited GDR
660,088
608,132
755,228
496,543
434,862
752,055
2,282,094
3,985,176
3,621,368
5,625,194
494,702
422,490
299,626
290,546
422,258
390,078
151,393
1,367,979
173,561
1,276,675
2,095,589
1,974,183
1,052,370
1,112,136
Spain (0.8%)
EUR
EUR
51,837 Banco Santander SA
200,000 Banco Bilbao Vizcaya
Argentaria SA
0.625% May 17, 2021
265,000 Kingdom of Spain
1.150% July 30, 2020
100,000 Kingdom of Spain
4.400% October 31, 2023
USD
7,409
17,258
19,901
30,739
12,165
22,343
54,000
USD
100,000
USD
52,000
USD
380,000
USD
125,000
USD
288,000
USD
40,000
Switzerland (1.3%)
5,813 Roche Holding AG
Thailand (1.2%)
10,723 iShares MSCI Thailand
Capped ETF
66,193 Kasikornbank Public Company
Limited (Foreign)
43,378 PTT Exploration and
Production Public Company
Limited (Foreign)
430,677
484,163
165,270
1,648,317
156,124
1,752,423
402,841
381,538
USD
100,000
2,089,510
178,825
890,455
575,036
531,761
2,569,021
122,716
835,429
559,864
502,767
USD
69,000
USD
20,000
USD
10,000
USD
58,000
Turkey (0.3%)
EUR
250,000 Republic of Turkey
4.350% November 12, 2021
United Kingdom (3.7%)
29,092
111,055
23,945
15,382
47,859
IDR 1,180,000,000
USD
GBP
GBP
British American Tobacco PLC
Lloyds Banking Group PLC
Persimmon PLC
Royal Dutch Shell PLC ‘B’
The Sage Group PLC
European Bank for
Reconstruction
and Development
9.250% December 2, 2020*
108,000 The Royal Bank of Scotland
Group PLC
7.648% August 29, 2049
100,000 United Kingdom Notes
2.750% September 7, 2024
250,000 United Kingdom Notes
2.000% September 7, 2025
127,068
126,443
167,413
169,476
195,566
190,154
498,663
5,254,297
452,983
5,528,853
United States (37.9%)
13,715 AbbVie Inc.
903 AdvanSix Inc.
22,895 AGCO Corporation
278
Fair
Value ($)
1,869,775
528,124
1,064,394
2,907,401
1,578,639
243,576
3,005,134
2,624,239
803,743
915,464
3,790,357
1,586,183
266,188
3,738,140
395,791
655,604
868,074
1,259,058
1,456,117
313,487
1,056,788
1,155,157
2,797,527
1,674,318
1,898,691
2,236,270
216,878
961,057
1,070,145
3,153,628
378,792
1,226,507
1,278,597
3,113,876
2,479,409
2,258,534
3,090,333
254,480
1,393,906
694,154
1,031,827
891,109
1,991,452
1,183,157
335,752
1,306,681
894,738
679,107
1,240,960
2,980,843
1,335,140
397,855
76,058
73,876
134,948
132,862
71,451
73,215
476,813
481,005
176,371
171,738
364,814
393,283
55,644
55,455
134,059
133,042
86,675
94,914
28,013
25,932
13,473
12,933
77,477
80,409
364,496
362,323
266,926
295,424
216,422
217,422
United States (continued)
2,500,000 Russian Federation
7.750% September 16, 2026
Singapore (0.5%)
EUR
Average
Cost ($)
1,102,736
20,127
1,485,142
1,188,446
32,807
1,832,295
IDR 3,500,000,000
NZD
300,000
NZD
233,000
Altria Group Inc.
AT&T Inc.
Bristol-Myers Squibb Company
Chubb Limited
Exxon Mobil Corporation
Forestar Group Inc.
Honeywell International Inc.
Huntington Ingalls
Industries Inc.
International Business
Machines Corporation
Invesco Limited
JPMorgan Chase & Company
Lincoln National Corporation
MetLife Inc.
Mondelez International Inc. ‘A’
Moody’s Corporation
Northrop Grumman Corporation
Omnicom Group Inc.
Philip Morris International Inc.
Synchrony Financial
The Dun & Bradstreet
Corporation
The Kraft Heinz Company
The Williams Companies Inc.
Unum Group
Waste Management Inc.
Western Digital Corporation
WPX Energy Inc.
Ally Financial Inc.
5.125% September 30, 2024
American Express Credit
Corporation Floating Rate
1.523% March 3, 2020
Ball Corporation
5.250% July 1, 2025
Bank of America Corporation
3.248% October 21, 2027
CalAtlantic Group Inc.
Convertible Bonds
1.250% August 1, 2032
Caterpillar Inc.
3.400% May 15, 2024
Cheniere Corpus Christi
Holdings LLC
5.875% March 31, 2025
Chevron Corporation
Floating Rate
1.303% March 3, 2020
Citigroup Inc. Floating Rate
5.875% Series O
December 29, 2049
Finisar Corporation
Convertible Bonds
0.500% December 15, 2036
Frontier Communications
Corporation
11.000% September 15, 2025
HCA Inc.
5.375% February 1, 2025
Inter-American
Development Bank
7.875% March 14, 2023*
International Bank for
Reconstruction
and Development
4.625% October 6, 2021*
International Bank for
Reconstruction
and Development
3.375% January 25, 2022*
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Global Balanced Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value
United States (continued)
United States (continued)
BRL
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
600,000 International Finance
Corporation
10.500% April 17, 2018*
399,000 JPMorgan Chase & Company
3.125% January 23, 2025
305,000 Kraft Heinz Foods Company
3.950% July 15, 2025
59,000 Meritor Inc.
6.250% February 15, 2024
20,000 Microchip Technology Inc.
Convertible Bonds
1.625% February 15, 2025
234,000 Micron Technology Inc.
7.500% September 15, 2023
320,000 Pfizer Inc.
3.000% December 15, 2026
64,000 Prudential Financial Inc.
Floating Rate
5.625% June 15, 2043
38,000 Tenet Healthcare Corporation
6.750% June 15, 2023
416,000 The Goldman Sachs Group Inc.
3.750% May 22, 2025
316,000 The Procter & Gamble Company
3.100% August 15, 2023
29,000 T-Mobile US Inc.
6.375% March 1, 2025
1,100,000 U.S. Treasury Inflation
Index Linked Notes
0.125% April 15, 2020
100,000 U.S. Treasury Notes
1.250% March 31, 2021
500,000 U.S. Treasury Inflation
Index Linked Notes
0.125% July 15, 2024
575,000 U.S. Treasury Inflation
Index Linked Notes
0.375% July 15, 2025
225,761
259,704
492,961
521,362
USD
USD
400,835
411,763
USD
69,700
80,423
36,450
38,133
318,948
347,360
413,530
421,357
86,219
91,196
47,867
49,650
516,910
560,038
378,195
433,398
38,989
41,554
1,750,000 U.S. Treasury Notes
2.000% November 15, 2026
350,000 U.S. Treasury Inflation
Index Linked Notes
0.625% February 15, 2043
86,000 Verizon Communications Inc.
2.450% November 1, 2022
44,000 Wynn Las Vegas LLC/Wynn
Las Vegas
Capital Corporation
5.500% March 1, 2025
Commissions and other portfolio
transaction costs (Note 2)
Average
Cost ($)
Fair
Value ($)
2,226,973
2,248,149
478,118
456,966
87,543
110,317
57,849
48,186,212
59,464
57,396,752
(111,843)
Total Investments (95.9%)
Foreign Exchange Forward Contracts (0.0%)
130,698,443
145,155,310
–
68,722
130,698,443
145,224,032
See Schedule A
Total Portfolio (95.9%)
–
* Supranational Security
ADR – American Depository Receipt
ETF – Exchange Traded Fund
1,516,989
1,539,253
132,134
130,242
672,397
673,555
789,643
784,887
GDR – Global Depository Receipt
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Global Balanced Fund (the “Fund”).
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
CAD
CAD
CAD
1,299,161
2,116,807
912,266
1,616,953
3,360,317
EUR
EUR
GBP
USD
USD
Sold Currency
Forward Rate
Maturity Date
902,000
1,470,000
550,000
1,210,000
2,515,000
1.4403
1.4400
1.6587
1.3363
1.3361
April 28, 2017
April 28, 2017
April 28, 2017
April 21, 2017
April 21, 2017
Fair Value ($)
18,418
29,565
(4,352)
8,326
16,765
68,722
Counterparty
Credit Rating
Royal Bank of Canada
The Toronto-Dominion Bank
Royal Bank of Canada
Bank of Montreal
The Toronto-Dominion Bank
AA
AA
AA
A
AA
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
279
AGF Global Balanced Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide superior returns with
moderate risk through a combination of capital appreciation and
interest income by investing primarily in a mix of shares of companies in
countries and industries that are expected to have superior growth,
bonds and short-term money market instruments.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
United States
Canada
Japan
Germany
South Korea
United Kingdom
China
France
Switzerland
Thailand
Belgium
Netherlands
Italy
Luxembourg
Spain
Norway
Brazil
Australia
Portugal
Ireland
Czech Republic
Hong Kong
Mexico
Austria
Singapore
Peru
Israel
Russia
Hungary
Poland
Colombia
New Zealand
Turkey
Cayman Islands
Foreign Exchange Forward Contracts
Jersey
37.9
18.9
7.7
4.0
3.7
3.7
1.7
1.5
1.3
1.2
1.2
1.1
1.0
0.9
0.8
0.8
0.8
0.7
0.7
0.6
0.6
0.6
0.6
0.6
0.5
0.4
0.4
0.3
0.3
0.3
0.3
0.3
0.3
0.2
0.0
0.0
280
September 30, 2016
(%)
United States
Canada
Japan
United Kingdom
Germany
South Korea
China
France
Netherlands
Belgium
Switzerland
Portugal
Spain
Italy
Norway
Luxembourg
Australia
Brazil
Turkey
Mexico
Czech Republic
Poland
Austria
Hong Kong
Israel
Singapore
Colombia
Peru
Hungary
New Zealand
Ireland
Cayman Islands
Thailand
Foreign Exchange Forward Contracts
37.6
18.7
9.2
4.5
3.9
3.0
1.8
1.5
1.4
1.4
1.3
1.3
1.2
1.0
1.0
1.0
0.9
0.7
0.7
0.6
0.6
0.6
0.5
0.5
0.5
0.4
0.4
0.4
0.4
0.3
0.3
0.1
0.1
0.0
Portfolio by Sector
March 31, 2017
(%)
Financials
Industrials
Consumer Staples
Government Bonds
Information Technology
Equity Funds
Energy
ETFs – International Equity
Health Care
Corporate Bonds
Emerging Markets Bonds
Consumer Discretionary
Telecommunication Services
Provincial Bonds
Materials
Supranational Bonds
High Yield Bonds
Real Estate
Utilities
Foreign Exchange Forward Contracts
16.8
11.0
9.5
9.0
8.4
6.7
5.5
4.8
4.5
4.2
3.3
2.8
2.4
2.2
2.1
2.0
0.4
0.2
0.1
0.0
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Global Balanced Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
(%)
Financials
Government Bonds
Industrials
Consumer Staples
Information Technology
Equity Funds
Corporate Bonds
Energy
Health Care
ETFs – International Equity
Emerging Markets Bonds
Consumer Discretionary
Telecommunication Services
Provincial Bonds
Materials
Supranational Bonds
High Yield Bonds
Real Estate
Utilities
Foreign Exchange Forward Contracts
16.0
10.7
10.3
9.8
7.6
5.9
5.4
5.2
5.0
4.4
3.7
3.0
2.8
2.4
2.4
2.4
0.5
0.2
0.1
0.0
September 30, 2016
AGF Global Resources Fund
AGF Emerging Markets Fund
iShares MSCI Netherlands ETF
Global X MSCI Norway ETF
iShares MSCI China ETF
iShares MSCI Germany ETF
iShares MSCI South Korea Capped ETF
iShares MSCI Japan ETF
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
4,588
4,418
1,053
572
1,686
1,275
490
1,541
63.9
0.7
0.4
0.4
0.1
0.0
0.0
0.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund invested in
debt instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Portfolio by Asset Mix
March 31, 2017
(%)
Credit Rating
United States Equity
International Equity
Canadian Equity
International Fixed Income
United States Fixed Income
Canadian Fixed Income
Foreign Exchange Forward Contracts
30.1
29.3
15.4
9.8
7.8
3.5
0.0
AAA
AA
A
BBB
BB
B
CCC
Not Rated
September 30, 2016
(%)
United States Equity
International Equity
Canadian Equity
International Fixed Income
United States Fixed Income
Canadian Fixed Income
Foreign Exchange Forward Contracts
29.2
28.7
14.8
12.8
8.4
3.9
0.0
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the underlying funds and exchange
traded funds as at March 31, 2017 and September 30, 2016 are included
in the following tables:
March 31, 2017
AGF Global Resources Fund
AGF Emerging Markets Fund
Global X MSCI Norway ETF
iShares MSCI Netherlands ETF
iShares MSCI Thailand Capped ETF
iShares MSCI China ETF
iShares MSCI Germany ETF
iShares MSCI South Korea Capped ETF
iShares MSCI Japan ETF
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
7,141
3,025
560
722
1,112
1,690
1,358
755
1,099
26.5
0.4
0.4
0.3
0.2
0.1
0.0
0.0
0.0
March 31,
2017
September 30,
2016
7.5
2.5
8.4
3.1
2.3
0.7
0.0
0.7
8.4
2.2
8.5
4.3
2.6
0.7
0.1
0.4
Interest Rate Risk
As at March 31, 2017 and September 30, 2016, the Fund’s exposure to
debt instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
March 31,
2017
September 30,
2016
–
1,836
6,264
23,843
56
3,331
5,473
29,125
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable.
As at March 31, 2017 and September 30, 2016, if the yield curve had
shifted in parallel by 25 basis points, with all other variables held
constant, Net Assets would have increased or decreased, respectively,
by approximately $484,000 (September 30, 2016 – $603,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
281
AGF Global Balanced Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
The impact on Net Assets of the Fund due to a 40 percent change in
benchmarks (September 30, 2016 – 50 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
MSCI All Country World Index
Bloomberg Barclays Global Aggregate Index
Blended Benchmark
March 31,
2017
September 30,
2016
39,984
25,524
48,382
53,491
32,030
65,325
The Blended Benchmark is composed of 70% MSCI All Country World
Index and 30% Bloomberg Barclays Global Aggregate Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31, 2017
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
Hong Kong Dollar
Australian Dollar
South Korean Won
Norwegian Krone
New Zealand Dollar
Czech Koruna
Mexican Peso
Brazilian Real
Singapore Dollar
Peruvian New Sol
Thai Baht
Russian Ruble
Indonesian Rupiah
Hungarian Forint
Polish Zloty
Colombian Peso
73,038
16,312
11,600
6,441
1,974
1,844
1,381
1,284
985
969
934
902
790
724
664
640
495
489
486
482
478
(4,952) 68,086
(3,368) 12,944
– 11,600
(917) 5,524
–
1,974
–
1,844
–
1,381
–
1,284
–
985
–
969
–
934
–
902
–
790
–
724
–
664
–
640
–
495
–
489
–
486
–
482
–
478
45.0
8.5
7.7
3.6
1.3
1.2
0.9
0.8
0.7
0.6
0.6
0.6
0.5
0.5
0.4
0.4
0.3
0.3
0.3
0.3
0.3
September 30, 2016
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
Australian Dollar
Hong Kong Dollar
Norwegian Krone
South Korean Won
Mexican Peso
Czech Koruna
Polish Zloty
Singapore Dollar
Colombian Peso
Peruvian New Sol
Hungarian Forint
New Turkish Lira
Indonesian Rupiah
New Zealand Dollar
Brazilian Real
Thai Baht
72,487
18,037
13,670
5,723
1,970
1,811
1,717
1,261
1,234
913
895
880
658
648
647
639
609
587
1,203
568
139
(4,009) 68,478
(4,049) 13,988
– 13,670
(840) 4,883
–
1,970
–
1,811
–
1,717
–
1,261
–
1,234
–
913
–
895
–
880
–
658
–
648
–
647
–
639
–
609
–
587
(621)
582
–
568
–
139
45.1
9.2
9.0
3.2
1.3
1.2
1.1
0.8
0.8
0.6
0.6
0.6
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.1
** Includes both monetary and non-monetary instruments, as applicable
282
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Global Balanced Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $2,274,000 (September 30,
2016 – $2,336,000).
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of New
York Mellon Corp.
Net Securities Lending Income
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
102,891
–
–
10,165
113,056
–
–
Level 2
156
31,943
–
–
32,099
73
(4)
Level 3
–
–
–
–
–
–
–
Total
103,047
31,943
–
10,165
145,155
73
(4)
September 30, 2016
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
101,221
–
–
9,006
110,227
–
–
Level 2
138
37,985
–
–
38,123
41
(1)
Level 3
–
–
–
–
–
–
–
% of Gross
Income
March 31, 2016
($’000)
% of Gross
Income
11
–
(1)
100.0
–
(10.6)
13
–
(2)
100.0
–
(16.1)
(3)
(29.8)
(3)
(25.2)
7
59.6
8
58.7
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
6,651
–
7,005
9,741
–
10,339
Total
101,359
37,985
–
9,006
148,350
41
(1)
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
283
AGF Global Bond Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
284
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
586,080
1,319
14,932
–
2,563
–
–
–
5,641
39
610,574
September 30,
2016
$
511,324
523
22,226
–
1,193
1,306
–
–
4,628
41
541,241
$
$
–
–
80
–
22
162
204
13
163
–
–
644
609,930
578,137
$
$
–
–
17
–
19
101
182
15
1,614
–
–
1,948
539,293
483,377
$
$
$
$
$
$
$
$
$
62,963
–
7,147
–
694
539,126
–
–
–
$
$
$
$
$
$
$
$
$
70,221
–
4,075
–
680
464,317
–
–
–
$
$
$
$
$
$
$
$
$
11.36
–
11.38
–
10.47
11.44
–
–
–
$
$
$
$
$
$
$
$
$
11.89
–
11.91
–
10.93
11.95
–
–
–
AGF Global Bond Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
16
–
8,542
(979)
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
–
–
5,356
8,402
(20,004)
(12,425)
1,443
(5,062)
8,696
2,161
733
2,176
28
(103)
2,058
16
365
(9,856)
(1,406)
9,364
3,019
1,983
97
7
11
46
–
12
–
1
398
60
107
13
7
18
–
10
11
1
261
8
4
3,655
–
2,419
(2,945)
710
(1,767)
652
$
(10,566)
$
8,712
$
$
$
$
$
$
$
$
$
(2,086)
–
(31)
–
(9)
(8,440)
–
–
–
$
$
$
$
$
$
$
$
$
1,059
–
65
–
(5)
7,593
–
–
–
$
$
$
$
$
$
$
$
$
(0.36)
–
(0.08)
–
(0.16)
(0.19)
–
–
–
$
$
$
$
$
$
$
$
$
0.18
–
0.23
–
(0.39)
0.30
–
–
–
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
(10,566)
2016
$
6
8,712
1,196
(464)
(10,563)
19,271
(251,539)
5,165
(172,509)
157,098
171,432
–
–
–
–
(1,013)
303
–
2
–
(27)
3
61
(87,141)
4
(31)
3,682
(86)
104,631
(78)
33,208
(24,692)
79,853
(25,411)
7,719
(6)
(1,196)
$
(7,288)
22,226
14,932
$
11,401
12,751
22,956
$
7,476
$
5,655
$
12
$
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
285
AGF Global Bond Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
286
2017
70,221
–
4,075
–
680
464,317
–
–
–
539,293
(2,086)
–
(31)
–
(9)
(8,440)
–
–
–
(10,566)
2016
$
65,786
–
3,368
–
1
296,659
–
–
–
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
365,814
1,059
–
65
–
(5)
7,593
–
–
–
8,712
6,092
–
3,790
–
282
96,805
–
–
–
106,969
8,758
–
624
–
374
24,289
–
–
–
34,045
1,063
–
71
–
13
11,694
–
–
–
12,841
777
–
46
–
–
6,979
–
–
–
7,802
(11,194)
–
(677)
–
(259)
(13,552)
–
–
–
(25,682)
(5,989)
–
(369)
–
(1)
(18,892)
–
–
–
(25,251)
94,128
16,596
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(452)
–
(33)
–
(6)
(5,039)
–
–
–
(5,530)
2016
$
(681)
–
(48)
–
(7)
(6,659)
–
–
–
(7,395)
(470)
–
(36)
–
–
(5,320)
–
–
–
(5,826)
(371)
–
(20)
–
–
(1,659)
–
–
–
(2,050)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
70,637
17,432
62,963
–
7,147
–
694
539,126
–
–
–
69,550
–
3,678
–
369
309,649
–
–
–
609,930
$
383,246
AGF Global Bond Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Average
Cost ($)
Face Value
Fair
Value ($)
Australian Dollar (1.5%)
AUD
AUD
AUD
Face Value
BRL
BRL
BRL
EUR
735,439
745,393
EUR
7,157,400
7,245,750
EUR
1,056,071
8,948,910
1,074,967
9,066,110
9,000,000 Federal Republic of Brazil
10.000% January 1, 2019
1,750,000 Federal Republic of Brazil
12.500% January 5, 2022
9,000,000 Federal Republic of Brazil
10.000% Series F
January 1, 2023
7,000,000 International
Finance Corporation
10.500% April 17, 2018*
3,375,327
736,809
3,951,004
817,722
EUR
CAD
CAD
CAD
CAD
CAD
CAD
CAD
EUR
EUR
EUR
3,885,714
3,930,967
2,707,613
10,705,463
3,029,884
11,729,577
6,000,000 Province of Quebec
0.875% January 15, 2025
2,000,000 Republic of France Inflation
Index Linked Notes
0.250% July 25, 2024
12,800,000 Republic of Ireland
1.000% May 15, 2026
2,600,000 Republic of Italy Inflation
Index Linked Notes
2.350% September 15, 2024
3,150,000 Republic of Portugal
4.750% June 14, 2019
3,300,000 Republic of Portugal
2.875% October 15, 2025
2,600,000 Republic of Turkey
4.350% November 12, 2021
683,000 Boralex Inc. Convertible Bonds
4.500% June 30, 2020
1,359,000 Crew Energy Inc.
6.500% March 14, 2024
2,525,000 Element Fleet Management
Corporation
Convertible Debentures
4.250% June 30, 2020
7,350,000 Government of Canada
1.750% September 1, 2019
9,000,000 Government of Canada
1.500% June 1, 2026
4,750,000 Government of Canada
Real Return Bonds
3.000% December 1, 2036
3,750,000 Government of Canada
Real Return Bonds
1.500% December 1, 2044
1,500,000 Province of Alberta
3.300% December 1, 2046
HUF 1,570,000,000 Republic of Hungary
5.500% Series 25/B
June 24, 2025
COP 17,500,000,000 Republic of Colombia
7.000% Series B May 4, 2022
746,578
815,912
1,362,682
1,344,278
2,671,121
2,562,875
IDR 46,000,000,000 European Bank for
Reconstruction
and Development
9.250% December 2, 2020*
IDR 33,600,000,000 Inter-American
Development Bank
7.875% March 14, 2023*
7,492,540
7,515,938
Japanese Yen (7.5%)
8,956,697
8,899,650
9,159,315
8,604,107
JPY
JPY
JPY
5,318,608
5,062,113
JPY
1,648,305
37,355,846
1,495,673
36,300,546
JPY
7,481,786
8,364,231
Euro Currency (16.0%)
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
8,703,116
3,173,856
3,099,976
18,854,645
18,167,345
4,349,726
4,115,733
5,073,116
4,872,733
4,693,465
4,505,079
4,189,547
99,362,329
3,968,000
97,858,477
8,407,410
8,473,633
4,975,919
4,929,132
3,469,683
8,445,602
3,478,300
8,407,432
6,554,583
6,260,361
5,910,121
6,440,885
14,266,094
16,664,882
11,027,617
10,212,424
5,301,320
43,059,735
6,186,700
45,765,252
2,118,569
2,155,835
8,451,527
7,700,254
5,463,685
4,941,132
1,285,252
17,319,033
1,323,323
16,120,544
7,279,887
7,389,806
1,805,728
1,817,720
4,003,893
4,431,357
3,715,404
16,804,912
3,732,567
17,371,450
Indonesian Rupiah (1.4%)
440,000,000 Development Bank of
Japan Inc.
2.300% March 19, 2026*
445,000,000 European Investment Bank
2.150% January 18, 2027*
1,255,000,000 Japan Government
1.200% September 20, 2035
885,000,000 Japan Government
0.400% March 20, 2036
435,000,000 KfW
2.050% February 16, 2026
Colombian Peso (1.4%)
EUR
8,630,912
Hungarian Forint (1.4%)
Canadian Dollar (5.9%)
CAD
Fair
Value ($)
Euro Currency (continued)
700,000 Government of Australia
3.250% April 21, 2025
6,600,000 New South Wales
Treasury Corporation
4.000% April 20, 2023
950,000 Province of Ontario
6.250% September 29, 2020
Brazilian Real (1.9%)
BRL
Average
Cost ($)
3,283,000 Allied Irish Banks PLC
7.375% December 29, 2049
2,000,000 Banco Bilbao Vizcaya
Argentaria SA
0.625% May 17, 2021
2,100,000 Cassa di Risparmio di Parma e
Piacenza SpA
0.875% June 16, 2023
4,615,000 Federal Republic of Brazil
2.875% April 1, 2021
3,000,000 Federal Republic of Germany
Inflation Linked Bond
0.500% April 15, 2030
3,000,000 Intesa Sanpaolo SpA
1.375% December 18, 2025
3,455,000 Kingdom of Spain
1.150% July 30, 2020
2,066,000 Kingdom of Spain
4.400% October 31, 2023
4,350,000 Province of British Columbia
0.875% October 8, 2025
5,750,000 Province of Ontario
0.875% January 21, 2025
Mexican Peso (2.6%)
MXN
MXN
4,578,220
4,931,185
MXN
2,996,266
2,905,465
MXN
31,000,000 United Mexican States
4.750% June 14, 2018
110,450,000 United Mexican States
6.500% Series M
June 9, 2022
76,000,000 United Mexican States
5.750% March 5, 2026
18,000,000 United Mexican States
7.750% November 23, 2034
2,984,411
3,006,762
6,705,091
6,866,621
New Zealand Dollar (2.8%)
5,067,154
5,010,408
NZD
4,724,373
4,399,430
NZD
5,505,290
5,085,730
3,269,882
3,585,774
6,353,860
6,297,065
8,212,515
8,338,055
NZD
NZD
6,900,000 Government of New Zealand
5.500% April 15, 2023
2,000,000 Government of New Zealand
2.750% April 15, 2025
4,500,000 International Bank for
Reconstruction
and Development
4.625% October 6, 2021*
4,000,000 International Bank for
Reconstruction
and Development
3.375% January 25, 2022*
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
287
AGF Global Bond Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
NOK 22,000,000 European Investment Bank
1.500% May 12, 2022*
NOK 29,500,000 Kingdom of Norway
3.750% May 25, 2021
NOK 48,900,000 Kingdom of Norway
3.000% March 14, 2024
USD
3,480,817
3,414,429
5,513,673
5,089,164
USD
8,644,670
17,639,160
8,426,909
16,930,502
USD
Peruvian New Sol (2.0%)
PEN
USD
8,500,000 Republic of Peru
7.840% August 12, 2020
19,500,000 Republic of Peru
5.700% August 12, 2024
3,769,819
3,826,540
7,526,981
11,296,800
8,150,223
11,976,763
3,738,413
3,630,343
5,392,077
9,130,490
5,458,213
9,088,556
Polish Zloty (1.5%)
PLN
PLN
9,600,000 Republic of Poland
5.750% October 25, 2021
17,500,000 Republic of Poland
2.500% July 25, 2026
GBP
GBP
GBP
GBP
USD
USD
USD
USD
USD
Pound Sterling (5.6%)
GBP
3,675,000 European Investment Bank
2.500% October 31, 2022*
3,600,000 Province of Alberta
1.000% November 15, 2021
1,150,000 United Kingdom Notes
3.750% September 7, 2021
1,000,000 United Kingdom Notes
2.750% September 7, 2024
9,450,000 United Kingdom Notes
2.000% September 7, 2025
5,996,639
6,617,113
USD
5,896,620
6,028,217
USD
2,205,515
2,204,083
USD
1,955,658
17,779,512
33,833,944
1,901,540
17,122,754
33,873,707
Russian Ruble (1.5%)
50,000,000 Russian Federation
6.800% December 11, 2019
RUB 290,000,000 Russian Federation
7.600% April 14, 2021
RUB 50,000,000 Russian Federation
7.750% September 16, 2026
USD
USD
USD
RUB
1,115,842
1,144,766
6,168,334
6,794,517
1,134,232
8,418,408
1,170,287
9,109,570
USD
USD
USD
United States Dollar (40.3%)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
288
Average
Cost ($)
Fair
Value ($)
560,453
517,677
2,052,901
2,101,682
560,263
518,641
268,102
257,363
1,442,009
1,472,323
1,895,484
1,905,010
9,382,959
9,639,310
1,748,903
1,768,700
7,242,973
7,456,284
1,330,224
1,485,775
2,148,243
2,240,340
6,052,206
6,392,020
7,566,299
7,709,522
3,297,706
4,146,261
5,165,330
6,410,184
3,572,509
4,268,240
3,730,906
3,631,420
1,498,750
1,567,428
11,892,391
11,793,349
2,704,074
2,660,208
854,660
887,166
578,950
544,800
9,237,388
9,692,960
6,841,182
7,503,554
3,100,246
3,138,446
723,135
752,280
20,433,587
20,570,013
3,869,456
3,907,266
11,030,200
11,046,302
United States Dollar (continued)
Norwegian Krone (2.8%)
PEN
Face Value/
No. of Shares
986,000 Ally Financial Inc.
5.125% September 30, 2024
2,000,000 American Express Credit
Corporation Floating Rate
1.523% March 3, 2020
961,000 Ball Corporation
5.250% July 1, 2025
6,980,000 Bank of America Corporation
3.248% October 21, 2027
1,475,000 CalAtlantic Group Inc.
Convertible Bonds
1.250% August 1, 2032
5,232,000 Caterpillar Inc.
3.400% May 15, 2024
1,710,000 Cemex SAB de CV
5.700% January 11, 2025
755,000 Cheniere Corpus Christi
Holdings LLC
5.875% March 31, 2025
2,000,000 Chevron Corporation
Floating Rate
1.303% March 3, 2020
1,236,000 Citigroup Inc. Floating Rate
5.875% Series O
December 29, 2049
1,352,000 Ctrip.com International Limited
Convertible Bonds
1.250% October 15, 2018
1,388,770
1,348,930
USD
USD
2,698,938
2,657,237
1,325,272
1,353,068
8,758,300
8,835,296
2,120,240
2,026,504
USD
6,728,921
7,144,640
USD
2,279,257
2,359,320
USD
1,050,274
1,046,708
USD
USD
USD
2,681,206
2,660,836
USD
1,553,666
1,700,197
USD
2,231,168
2,358,695
399,000 Ensco Jersey Finance Limited
Convertible Bonds
3.000% January 31, 2024
1,577,000 Fibria Overseas Finance Limited
5.500% January 17, 2027
400,000 Finisar Corporation
Convertible Bonds
0.500% December 15, 2036
199,000 Frontier Communications
Corporation
11.000% September 15, 2025
1,062,000 HCA Inc.
5.375% February 1, 2025
1,500,000 Intesa Sanpaolo SpA Floating Rate
7.700% December 29, 2049
7,377,000 JPMorgan Chase & Company
3.125% January 23, 2025
1,400,000 Just Energy Group Inc.
Convertible Bonds
6.500% July 29, 2019
5,523,000 Kraft Heinz Foods Company
3.950% July 15, 2025
1,090,000 Meritor Inc.
6.250% February 15, 2024
1,175,000 Microchip Technology Inc.
Convertible Bonds
1.625% February 15, 2025
4,306,000 Micron Technology Inc.
7.500% September 15, 2023
5,855,000 Pfizer Inc.
3.000% December 15, 2026
3,050,000 Province of British Columbia
2.650% September 22, 2021
4,700,000 Province of Manitoba
3.050% May 14, 2024
3,200,000 Province of Ontario
2.450% June 29, 2022
2,700,000 Province of Quebec
2.875% October 16, 2024
1,100,000 Prudential Financial Inc.
Floating Rate
5.625% June 15, 2043
9,150,000 Republic of Portugal
5.125% October 15, 2024
2,000,000 Royal Bank of Canada
Floating Rate
1.480% March 2, 2020
679,000 Tenet Healthcare Corporation
6.750% June 15, 2023
710 Teva Pharmaceutical Industries
Limited Convertible
Preferred 7.000%
7,200,000 The Goldman Sachs Group Inc.
3.750% May 22, 2025
5,471,000 The Procter & Gamble Company
3.100% August 15, 2023
2,000,000 The Royal Bank of Scotland
Group PLC
7.648% August 29, 2049
525,000 T-Mobile US Inc.
6.375% March 1, 2025
14,700,000 U.S. Treasury Inflation
Index Linked Notes
0.125% April 15, 2020
3,000,000 U.S. Treasury Notes
1.250% March 31, 2021
8,200,000 U.S. Treasury Inflation
Index Linked Notes
0.125% July 15, 2024
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Global Bond Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
13,097,085
12,967,694
41,664,989
42,136,723
17,846,457
16,973,034
1,561,937
1,920,286
1,146,341
1,125,652
United States Dollar (continued)
USD 9,500,000 U.S. Treasury Inflation
Index Linked Notes
0.375% July 15, 2025
USD 32,800,000 U.S. Treasury Notes
2.000% November 15, 2026
USD 13,000,000 U.S. Treasury Inflation
Index Linked Notes
0.625% February 15, 2043
USD 1,497,000 Verizon Communications Inc.
2.450% November 1, 2022
USD
855,000 Vermilion Energy Inc.
5.625% March 15, 2025
USD
773,000 Wynn Las Vegas LLC/Wynn Las
Vegas Capital Corporation
5.500% March 1, 2025
Commissions and other portfolio
transaction costs (Note 2)
1,015,398
1,044,679
239,929,708 245,644,023
(2,313)
Total Investments (96.1%)
Foreign Exchange Forward Contracts (0.2%)
See Schedule A
–
578,137,223 586,080,373
–
Total Portfolio (96.3%)
1,238,500
578,137,223 587,318,873
* Supranational Security
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Global Bond Fund (the “Fund”).
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
CAD
CAD
CAD
CAD
22,044,251
9,909,340
28,152,098
16,843,743
28,129,641
65,648,429
EUR
EUR
EUR
GBP
USD
USD
Sold Currency
Forward Rate
Maturity Date
15,305,000
6,880,000
19,550,000
10,155,000
21,050,000
49,134,000
1.4403
1.4403
1.4400
1.6587
1.3363
1.3361
April 28, 2017
April 28, 2017
April 28, 2017
April 28, 2017
April 21, 2017
April 21, 2017
Fair Value ($)
312,800
140,481
393,210
(80,363)
144,845
327,527
1,238,500
Counterparty
Credit Rating
Bank of Montreal
Royal Bank of Canada
The Toronto-Dominion Bank
Royal Bank of Canada
Bank of Montreal
The Toronto-Dominion Bank
A
AA
AA
AA
A
AA
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
289
AGF Global Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide interest income and capital
appreciation by investing primarily in investment grade debt securities of
governments, corporations and other issuers around the world.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
September 30, 2016
(%)
Government Bonds
Corporate Bonds
Emerging Markets Bonds
Provincial Bonds
Supranational Bonds
High Yield Bonds
Foreign Exchange Forward Contracts
44.6
19.4
13.6
7.6
7.4
2.2
0.1
Portfolio by Asset Mix
Portfolio by Currency
March 31, 2017
(%)
United States Dollar
Euro Currency
Japanese Yen
Canadian Dollar
Pound Sterling
New Zealand Dollar
Norwegian Krone
Mexican Peso
Peruvian New Sol
Brazilian Real
Russian Ruble
Polish Zloty
Australian Dollar
Hungarian Forint
Indonesian Rupiah
Colombian Peso
Foreign Exchange Forward Contracts
40.3
16.0
7.5
5.9
5.6
2.8
2.8
2.6
2.0
1.9
1.5
1.5
1.5
1.4
1.4
1.4
0.2
March 31, 2017
(%)
International Fixed Income
United States Fixed Income
Canadian Fixed Income
Foreign Exchange Forward Contracts
International Equity
46.4
34.7
14.9
0.2
0.1
September 30, 2016
(%)
International Fixed Income
United States Fixed Income
Canadian Fixed Income
Foreign Exchange Forward Contracts
49.3
32.2
13.3
0.1
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
September 30, 2016
(%)
United States Dollar
Euro Currency
Japanese Yen
Canadian Dollar
Pound Sterling
Norwegian Krone
New Zealand Dollar
Mexican Peso
Polish Zloty
Colombian Peso
Brazilian Real
Hungarian Forint
Indonesian Rupiah
Australian Dollar
Peruvian New Sol
New Turkish Lira
Foreign Exchange Forward Contracts
37.3
16.9
9.4
5.7
5.2
3.0
2.7
2.2
2.1
1.6
1.6
1.5
1.5
1.5
1.4
1.2
0.1
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund invested in
debt instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
Portfolio by Sector
March 31, 2017
(%)
Government Bonds
Corporate Bonds
Emerging Markets Bonds
Provincial Bonds
Supranational Bonds
High Yield Bonds
Foreign Exchange Forward Contracts
Health Care
45.2
19.5
14.3
8.3
6.9
1.8
0.2
0.1
290
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
March 31,
2017
September 30,
2016
33.0
11.9
24.1
13.7
10.0
2.6
0.1
3.3
31.7
9.9
29.1
15.8
8.4
2.6
0.3
1.2
AGF Global Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Interest Rate Risk
As at March 31, 2017 and September 30, 2016, the Fund’s exposure to
debt instruments by maturity was as follows:
March 31, 2017
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
March 31,
2017
September 30,
2016
–
34,776
93,386
457,373
692
42,630
58,811
409,191
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at March 31, 2017 and September 30, 2016, if the yield curve had
shifted in parallel by 25 basis points, with all other variables held
constant, Net Assets would have increased or decreased, respectively,
by approximately $9,379,000 (September 30, 2016 – $8,632,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
currency.
The impact on Net Assets of the Fund due to a 15 percent change in
benchmark (September 30, 2016 – 20 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
Bloomberg Barclays Global Aggregate Index
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31,
2017
September 30,
2016
58,969
66,229
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
Japanese Yen
Euro Currency
New Zealand Dollar
Pound Sterling
Norwegian Krone
Mexican Peso
Peruvian New Sol
Brazilian Real
Russian Ruble
Polish Zloty
Australian Dollar
Hungarian Forint
Indonesian Rupiah
Colombian Peso
259,198
45,765
97,858
17,371
33,874
16,931
16,121
11,977
11,730
9,193
9,089
9,066
8,474
8,407
8,364
(93,306)
–
(59,259)
–
(16,924)
–
–
–
–
–
–
–
–
–
–
165,892
45,765
38,599
17,371
16,950
16,931
16,121
11,977
11,730
9,193
9,089
9,066
8,474
8,407
8,364
27.2
7.5
6.3
2.8
2.8
2.8
2.6
2.0
1.9
1.5
1.5
1.5
1.4
1.4
1.4
September 30, 2016
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
Japanese Yen
Euro Currency
Norwegian Krone
Pound Sterling
Mexican Peso
Polish Zloty
Colombian Peso
Brazilian Real
Hungarian Forint
Australian Dollar
Indonesian Rupiah
Peruvian New Sol
New Turkish Lira
New Zealand Dollar
221,849
50,367
91,323
16,244
28,163
12,062
11,345
8,790
8,442
8,071
7,933
7,929
7,793
6,296
14,471
(55,341)
–
(55,313)
–
(14,165)
–
–
–
–
–
–
–
–
–
(13,199)
166,508
50,367
36,010
16,244
13,998
12,062
11,345
8,790
8,442
8,071
7,933
7,929
7,793
6,296
1,272
30.9
9.4
6.7
3.0
2.6
2.2
2.1
1.6
1.6
1.5
1.5
1.5
1.4
1.2
0.2
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $7,879,000 (September 30,
2016 – $7,261,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
291
AGF Global Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
545
–
–
–
545
–
–
Level 2
Level 3
–
585,535
–
–
585,535
1,319
(80)
–
–
–
–
–
–
–
Total
545
585,535
–
–
586,080
1,319
(80)
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
September 30, 2016
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
–
–
–
–
Level 2
Level 3
–
511,324
–
–
511,324
523
(17)
–
–
–
–
–
–
–
Total
–
511,324
–
–
511,324
523
(17)
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
% of Gross
($’000)
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of New
York Mellon Corp.
38
–
(0)
100.0
–
(0.9)
(10)
Net Securities Lending Income
28
292
March 31, 2016
% of Gross
Income
($’000)
30
–
(7)
100.0
–
(23.4)
(27.2)
(7)
(23.0)
71.9
16
53.6
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
65,530
–
68,909
36,025
–
37,850
AGF Global Convertible Bond Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
14,546
62
207
–
5
320
–
–
86
–
15,226
September 30,
2016
$
18,652
12
–
–
–
224
–
1
100
–
18,989
$
$
–
–
7
–
4
30
39
–
147
–
–
227
14,999
12,729
$
$
421
–
15
–
5
–
32
1
–
9
–
483
18,506
16,971
$
$
$
$
$
$
$
$
$
9,670
–
4,179
–
337
–
–
352
461
$
$
$
$
$
$
$
$
$
11,710
–
5,461
–
426
–
–
464
445
$
$
$
$
$
$
$
$
$
10.31
–
10.45
–
10.67
–
–
9.22
10.67
$
$
$
$
$
$
$
$
$
9.99
–
10.09
–
10.24
–
–
9.16
10.24
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
293
AGF Global Convertible Bond Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
294
2017
$
76
–
144
225
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
96
–
176
(900)
136
581
(23)
350
(278)
(6)
58
35
0
121
115
4
(7)
609
(7)
(166)
115
160
35
6
11
5
–
12
1
1
19
10
52
11
7
9
–
11
–
1
26
13
1
216
3
293
(67)
149
(90)
203
$
460
$
(369)
$
$
$
$
$
$
$
$
$
283
–
137
–
12
–
–
10
18
$
$
$
$
$
$
$
$
$
(232)
–
(126)
–
1
–
–
(9)
(3)
$
$
$
$
$
$
$
$
$
0.27
–
0.30
–
0.35
–
–
0.23
0.43
$
$
$
$
$
$
$
$
$
(0.17)
–
(0.14)
–
0.00
–
–
(0.14)
(0.06)
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
SEMI-ANNUAL REPORT 2017
$
–
(369)
(37)
(202)
906
(194)
(2,872)
(471)
(9,526)
7,358
5,913
–
1
–
(2)
14
8
–
–
–
–
(1)
30
4,594
1
(9)
(3,586)
(3)
677
(6)
4,074
(4,640)
(3,966)
(2,930)
1,138
–
37
$
628
(421)
207
$
$
153
$
183
$
71
$
83
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
460
2016
(2,448)
4,602
2,191
AGF Global Convertible Bond Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
2017
11,710
–
5,461
–
426
–
–
464
445
18,506
283
–
137
–
12
–
–
10
18
460
2016
$
12,772
–
7,865
–
507
–
–
557
429
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
22,130
(232)
–
(126)
–
1
–
–
(9)
(3)
(369)
362
–
475
–
12
–
–
–
–
849
2,463
–
1,479
–
122
–
–
22
–
4,086
–
–
–
–
–
–
–
7
–
7
12
–
20
–
1
–
–
9
3
45
(2,685)
–
(1,894)
–
(113)
–
–
(120)
(2)
(4,814)
(1,794)
–
(926)
–
(219)
–
–
(6)
(2)
(2,947)
(3,958)
1,184
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
–
–
–
–
–
–
–
(0)
–
(0)
2016
$
(13)
–
(25)
–
(3)
–
–
–
(3)
(44)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(9)
–
(9)
–
–
–
–
–
–
–
(15)
–
(15)
(3,507)
756
9,670
–
4,179
–
337
–
–
352
461
13,208
–
8,287
–
409
–
–
558
424
14,999
$
22,886
295
AGF Global Convertible Bond Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
Face Value
Average
Cost ($)
Fair
Value ($)
Corporate Bonds (82.8%)
EUR
JPY
USD
CAD
USD
CAD
USD
USD
EUR
CAD
CAD
USD
USD
USD
USD
USD
USD
USD
USD
USD
CAD
CAD
296
200,000 adidas AG Convertible Bonds
0.250% June 14, 2019
20,000,000 Advantest Corporation
Zero Coupon
Convertible Bonds
March 14, 2019
150,000 B2Gold Corporation
Convertible Bonds
3.250% October 1, 2018
250,000 Boyd Group Income Fund
Convertible Bonds
5.250% October 31, 2021
225,000 CalAtlantic Group Inc.
Convertible Bonds
1.250% August 1, 2032
375,000 Cardinal Energy Limited
Convertible Debentures
5.500% December 31, 2020
144,000 Ctrip.com International Limited
Convertible Bonds
1.250% October 15, 2018
200,000 Detour Gold Corporation
Convertible Bonds
5.500% November 30, 2017
200,000 Deutsche Post AG
Convertible Bonds
0.600% December 6, 2019
103,000 Element Fleet
Management Corporation
Convertible Debentures
5.125% June 30, 2019
125,000 Element Fleet
Management Corporation
Convertible Debentures
4.250% June 30, 2020
100,000 Ensco Jersey Finance Limited
Convertible Bonds
3.000% January 31, 2024
215,000 Finisar Corporation
Convertible Bonds
0.500% December 15, 2036
110,000 General Cable Corporation
Convertible Bonds
4.500% November 15, 2029
250,000 Gran Tierra Energy Inc.
Convertible Bonds
5.000% Series 144A
April 1, 2021
37,000 Hologic Inc. Convertible Bonds
2.000% Series 2012
March 1, 2042
100,000 Inphi Corporation
Convertible Bonds
0.750% September 1, 2021
130,000 Intel Corporation
Convertible Bonds
2.950% December 15, 2035
250,000 Intesa Sanpaolo SpA
Floating Rate
7.700% December 29, 2049
200,000 Just Energy Group Inc.
Convertible Bonds
6.500% July 29, 2019
175,000 Just Energy Group Inc.
Convertible Bonds
6.750% December 31, 2021
200,000 Kelt Exploration Limited
Convertible Bonds
5.000% May 31, 2021
Face Value
Average
Cost ($)
Fair
Value ($)
137,622
259,523
441,768
460,221
302,196
381,334
193,115
191,498
157,292
177,840
234,683
353,042
236,357
215,303
345,187
349,327
267,219
400,000
211,889
256,578
221,219
207,988
292,101
362,584
215,549
245,472
255,686
428,171
244,831
726,983
165,450
193,555
200,085
207,831
333,679
367,831
198,228
205,625
265,792
300,380
400,414
10,422,253
387,826
12,418,418
45,325
46,808
Corporate Bonds (continued)
JPY
323,929
616,987
USD
214,661
316,546
USD
211,292
211,945
USD
298,190
325,000
CAD
329,612
309,128
USD
375,000
393,750
USD
195,818
251,222
257,294
269,295
400,495
431,931
121,739
112,270
125,000
126,875
CHF
140,461
129,743
JPY
287,767
278,770
112,110
113,461
328,988
370,696
USD
69,182
68,517
USD
USD
CAD
USD
USD
USD
USD
USD
146,954
147,115
CAD
202,940
235,334
USD
293,310
317,502
USD
234,899
252,672
175,000
185,587
257,250
275,160
13,000,000 Kyudenko Corporation
Zero Coupon
Convertible Bonds
Series 2 March 15, 2019
640,130 Liberty Interactive LLC
Convertible Bonds
3.500% January 15, 2031
200,000 Microchip Technology Inc.
Convertible Bonds
1.625% February 15, 2025
150,000 Navistar International
Corporation Convertible Bonds
4.750% April 15, 2019
152,000 Northland Power Inc.
Convertible Bonds
4.750% June 30, 2020
70,000 Novellus Systems Inc.
Convertible Bonds
2.625% May 15, 2041
160,000 NRG Yield Inc. Convertible Bonds
3.500% February 1, 2019
265,000 Pattern Energy Group Inc.
Convertible Bonds
4.000% July 15, 2020
250,000 Premium Brands Holdings
Corporation Convertible Bonds
5.000% April 30, 2020
150,000 ServiceNow Inc.
Zero Coupon
Convertible Bonds
November 1, 2018
160,000 Silver Standard Resources Inc.
Convertible Bonds
2.875% February 1, 2033
200,000 Swiss Life Holding AG Zero
Coupon Convertible Bonds
December 2, 2020
20,000,000 T&D Holdings Inc.
Zero Coupon
Convertible Bonds
June 5, 2020
117,000 Take-Two Interactive Software
Inc. Convertible Bonds
1.000% July 1, 2018
135,000 TAL Education Group
Convertible Bonds
2.500% May 15, 2019
125,000 Teradyne Inc.
Convertible Bonds
1.250% December 15, 2023
150,000 Tesla Inc. Convertible Bonds
2.375% March 15, 2022
246,000 The Priceline Group Inc.
Convertible Bonds
0.900% September 15, 2021
175,000 Tricon Capital Group Inc.
Convertible Bonds
5.600% March 31, 2020
200,000 Vector Group Limited
Convertible Bonds
1.750% April 15, 2020
145,000 Xilinx Inc. Convertible Bonds
2.625% June 15, 2017
High Yield Bond (0.3%)
CAD
40,000 Source Energy Services Canada
Limited Partnership/
Holdings Limited
10.500% December 15, 2021
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Global Convertible Bond Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED) CONTINUED
No. of Shares
Average
Cost ($)
Fair
Value ($)
259,903
337,563
324,886
584,789
401,880
739,443
Energy (4.9%)
No. of Shares
Average
Cost ($)
Fair
Value ($)
179,639
190,360
Utilities (1.3%)
16,438 Repsol SA
5,000 WPX Energy Inc.
Convertible Preferred
6.250% Series A
Financials (2.8%)
158 Bank of America Corporation
Convertible Preferred
7.250% Series L
105 Wells Fargo &
Company Preferred
7.500% Series L
231,591
251,102
162,871
394,462
173,146
424,248
2,900 Exelon Corporation
Convertible Preferred
6.500%
Commissions and other portfolio
transaction costs (Note 2)
Total Investments (96.9%)
12,729,194
Foreign Exchange Forward Contracts (0.4%)
See Schedule A
Total Portfolio (97.3%)
Health Care (3.3%)
640 Teva Pharmaceutical Industries
Limited Convertible
Preferred 7.000%
871,963
491,087
82,090
80,667
150,417
154,783
Real Estate (0.5%)
961 Welltower Inc.
Convertible Preferred
6.500% Series I
(1,744)
–
14,545,814
–
55,362
12,729,194
14,601,176
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Global Convertible Bond Fund (the “Fund”).
Telecommunication Services (1.0%)
1,100 T-Mobile US Inc.
Convertible Preferred
5.500%
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
JPY
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
678,000
518,512
813,603
166,570
625,438
1,349,640
517,158
2,048,579
1,736,943
439,138
811,489
426,112
265,507
Sold Currency Forward Rate
CAD
EUR
EUR
JPY
JPY
USD
USD
USD
USD
USD
USD
USD
USD
8,085
360,000
565,000
14,140,000
52,690,000
1,000,000
387,000
1,533,000
1,300,000
330,000
610,000
320,000
200,000
83.8545
1.4403
1.4400
0.0118
0.0119
1.3496
1.3363
1.3363
1.3361
1.3307
1.3303
1.3316
1.3275
Maturity Date
April 13, 2017
April 28, 2017
April 28, 2017
April 13, 2017
April 24, 2017
April 13, 2017
April 21, 2017
April 21, 2017
April 21, 2017
April 28, 2017
April 28, 2017
April 28, 2017
April 28, 2017
Fair Value ($)
Counterparty Credit Rating
16 The Bank of New York Mellon Corporation
7,351
Royal Bank of Canada
11,364
The Toronto-Dominion Bank
(2,391) The Bank of New York Mellon Corporation
(4,344)
Citibank NA
20,041
Royal Bank of Canada
2,663
Bank of Montreal
10,541
National Bank of Canada
8,666
The Toronto-Dominion Bank
466
Bank of America
611
Citibank NA
733 The Bank of New York Mellon Corporation
(355)
The Bank of Nova Scotia
55,362
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
A
AA
AA
A
A
AA
A
A
AA
BBB
A
A
A
297
AGF Global Convertible Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to generate attractive long-term
returns through interest income and capital appreciation by investing
primarily in global convertible bonds issued by companies from around
the world, which can be converted into common stock, providing an
opportunity for equity participation.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
September 30, 2016
(%)
Corporate Bonds
Energy
Health Care
Utilities
Financials
Consumer Staples
Emerging Markets Bonds
Real Estate
Foreign Exchange Forward Contracts
83.3
3.8
3.7
3.4
2.3
2.2
1.6
0.5
(0.0)
Portfolio by Asset Mix
Portfolio by Country
March 31, 2017
(%)
United States
Canada
Germany
Cayman Islands
Japan
Israel
Switzerland
Spain
Italy
Jersey
Foreign Exchange Forward Contracts
45.7
21.3
7.0
6.5
5.5
3.3
2.4
2.2
2.1
0.9
0.4
September 30, 2016
(%)
United States
Canada
Japan
Germany
Cayman Islands
Israel
France
Spain
Switzerland
Mexico
Italy
Foreign Exchange Forward Contracts
48.4
19.4
8.8
5.2
3.9
3.7
2.9
2.8
2.5
1.6
1.6
(0.0)
March 31, 2017
(%)
United States Fixed Income
International Fixed Income
Canadian Fixed Income
United States Equity
International Equity
Foreign Exchange Forward Contracts
37.4
24.4
21.3
8.3
5.5
0.4
September 30, 2016
(%)
United States Fixed Income
International Fixed Income
Canadian Fixed Income
United States Equity
International Equity
Foreign Exchange Forward Contracts
37.8
27.7
19.4
10.6
5.3
(0.0)
Interest in Unconsolidated Structured Entities (Note 2)
As at March 31, 2017 and September 30, 2016, the Fund had no
investments in underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund invested in
debt instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Portfolio by Sector
Percentage of Net Assets (%)
March 31, 2017
(%)
Corporate Bonds
Energy
Health Care
Financials
Utilities
Telecommunication Services
Real Estate
Foreign Exchange Forward Contracts
High Yield Bonds
82.8
4.9
3.3
2.8
1.3
1.0
0.5
0.4
0.3
298
Credit Rating
AA
A
BBB
BB
B
CCC
Not Rated
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
March 31,
2017
0.3
3.0
11.8
6.3
5.2
2.0
67.9
September 30,
2016
(0.0)
(1.0)
18.1
9.4
4.5
0.5
65.4
AGF Global Convertible Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
Interest Rate Risk
As at March 31, 2017 and September 30, 2016, the Fund’s exposure to
debt instruments by maturity was as follows:
March 31, 2017
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31,
2017
September 30,
2016
657
4,272
4,488
3,048
1,285
5,179
5,383
3,862
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
($’000)
United States Dollar
Swiss Franc
Euro Currency
Japanese Yen
As at March 31, 2017 and September 30, 2016, if the yield curve had
shifted in parallel by 25 basis points, with all other variables held
constant, Net Assets would have increased or decreased, respectively,
by approximately $151,000 (September 30, 2016 – $172,000).
September 30, 2016
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
($’000)
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 15 percent change in
benchmark (September 30, 2016 – 15 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
Bloomberg Barclays Global Convertibles Index
March 31,
2017
September 30,
2016
1,229
1,874
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
Euro Currency
Swiss Franc
Japanese Yen
9,726
363
1,386
822
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
2,175
363
73
31
14.5
2.4
0.5
0.2
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
11,671
2,020
466
1,631
(7,791)
(1,018)
–
(1,569)
3,880
1,002
466
62
21.0
5.4
2.5
0.3
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $53,000 (September 30,
2016 – $108,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
(7,551)
–
(1,313)
(791)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Level 1
2,081
–
–
–
2,081
–
–
Level 2
–
12,465
–
–
12,465
62
(7)
Level 3
–
–
–
–
–
–
–
Total
2,081
12,465
–
–
14,546
62
(7)
299
AGF Global Convertible Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 2
2,943
–
–
–
2,943
–
–
Level 3
–
15,709
–
–
15,709
12
(15)
–
–
–
–
–
–
–
Total
2,943
15,709
–
–
18,652
12
(15)
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the period ended March 31, 2017, the Fund did not hold financial
instruments within level 3 of the fair value hierarchy.
The following table reconciles the Fund’s level 3 fair value
measurements for the period ended September 30, 2016.
September 30, 2016
($’000)
Equities
Balance at Beginning of period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
Debt
Instruments
–
–
–
–
–
500
–
–
(500)
–
–
–
Total
500
–
–
(500)
–
–
–
–
–
–
During the period ended September 30, 2016, investments of
approximately $500,000 were transferred from level 3 to level 2 due to a
change in valuation to the use of quoted prices from recognized
investment dealers.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
% of Gross
($’000)
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of New
York Mellon Corp.
Net Securities Lending Income
300
March 31, 2016
% of Gross
Income
($’000)
0
–
(0)
100.0
–
(27.9)
8
–
(2)
100.0
–
(30.0)
(0)
(21.6)
(2)
(21.0)
0
50.5
4
49.0
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
89
–
94
209
–
220
AGF Global Dividend Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2,238,693
–
107,786
–
3,684
–
–
–
7,315
1,845
2,359,323
September 30,
2016
$
2,078,303
–
166,761
–
5,127
11,299
–
–
4,498
2,194
2,268,182
$
$
–
–
–
–
707
1,363
1,720
84
–
–
–
3,874
2,355,449
1,781,276
$
$
–
–
–
–
565
1,010
898
90
5,668
–
–
8,231
2,259,951
1,727,225
$
$
$
$
$
$
$
$
$
1,554,261
–
64,372
194,047
12,690
493,202
16,998
14,716
5,163
$
$
$
$
$
$
$
$
$
1,459,128
–
53,268
249,894
11,015
454,165
15,452
14,192
2,837
$
$
$
$
$
$
$
$
$
27.23
–
28.01
27.87
17.71
28.38
14.04
17.71
11.60
$
$
$
$
$
$
$
$
$
25.64
–
26.50
26.49
16.83
26.97
13.75
17.06
11.03
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
301
AGF Global Dividend Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
302
2017
$
29,129
–
165
36,031
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
29,184
–
103
(34,860)
106,339
171,664
–
108,118
102,545
–
–
–
181
–
–
125
4,095
175,940
(17,864)
84,806
16,373
14,765
1,217
16
12
157
–
58
–
1
1,954
3,557
1,156
32
7
130
–
36
34
1
1,755
4,121
946
24,291
1,062
23,099
(2,835)
21,456
(2,624)
20,475
$
154,484
$
64,331
$
$
$
$
$
$
$
$
$
95,981
–
3,943
14,223
926
37,135
1,024
896
356
$
$
$
$
$
$
$
$
$
39,696
–
1,637
5,033
274
16,977
392
331
(9)
$
$
$
$
$
$
$
$
$
1.66
–
1.88
1.84
1.34
2.08
0.88
1.08
0.92
$
$
$
$
$
$
$
$
$
0.69
–
0.92
0.58
0.56
1.05
0.36
0.44
(0.13)
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
154,484
SEMI-ANNUAL REPORT 2017
$
64,331
779
19,554
(36,031)
34,860
(106,339)
(332,355)
(108,118)
(358,945)
319,966
242,214
–
–
–
–
(2,817)
(2,552)
–
349
–
52
142
353
(1,469)
120
(125)
(108,609)
(2,267)
158,224
(2,699)
352,714
(212,684)
(56,727)
(206,144)
143,871
(779)
(19,554)
$
(58,196)
166,761
107,786
$
35,262
189,750
205,458
$
132
$
102
$
22,792
$
22,373
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2016
AGF Global Dividend Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
2017
1,459,128
–
53,268
249,894
11,015
454,165
15,452
14,192
2,837
2,259,951
95,981
–
3,943
14,223
926
37,135
1,024
896
356
154,484
2016
$
1,298,294
–
50,904
130,985
6,362
403,919
13,507
11,412
118
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
1,915,501
39,696
–
1,637
5,033
274
16,977
392
331
(9)
64,331
80,640
–
14,658
1,455
3,052
60,228
1,993
1,251
2,849
166,126
164,313
–
13,155
105,404
3,227
67,218
3,282
2,686
1,273
360,558
3,606
–
562
4,423
282
11,609
342
160
22
21,006
28,431
–
793
9,020
298
15,745
265
141
1
54,694
(79,983)
–
(7,336)
(71,525)
(2,300)
(58,326)
(1,156)
(1,423)
(802)
(222,851)
(123,999)
–
(19,466)
(7,812)
(685)
(58,155)
(1,131)
(873)
(188)
(212,309)
(35,719)
202,943
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(5,111)
–
(723)
(4,423)
(285)
(11,609)
(2)
(9)
(99)
(22,261)
2016
$
(5,191)
–
(265)
(4,675)
(161)
(8,177)
(8)
(5)
(1)
(18,483)
–
–
–
–
–
–
–
–
–
–
(25,197)
–
(753)
(4,345)
(149)
(7,568)
(182)
(153)
(2)
(38,349)
–
–
–
–
–
–
(655)
(351)
–
(1,006)
–
–
–
–
–
–
(417)
(159)
–
(576)
95,498
209,866
1,554,261
–
64,372
194,047
12,690
493,202
16,998
14,716
5,163
1,376,347
–
46,005
233,610
9,166
429,959
15,708
13,380
1,192
2,355,449
$
2,125,367
303
AGF Global Dividend Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares/
Units
Average
Cost ($)
Fair
Value ($)
16,043,810
19,003,584
34,078,436
38,937,322
22,249,371
20,314,895
39,982,172
33,964,729
11,812,665
51,794,837
11,950,674
45,915,403
52,947,802
54,091,290
9,204,925
8,869,786
11,217,050
12,546,606
9,230,630
20,003,905
34,296,304
23,581,077
105,186,627
13,559,569
22,236,900
37,570,561
24,007,310
121,137,996
20,241,854
32,656,838
52,898,692
22,962,863
44,105,008
67,067,871
23,318,954
22,971,719
22,356,725
68,647,398
24,002,494
22,484,436
24,060,781
70,547,711
Austria (0.8%)
363,013 Voestalpine AG
Canada (0.9%)
1,047,024 Goldcorp Inc.
5,715,245 Kasikornbank Public Company
Limited NVDR
5,794,213 Thai Oil Public Company
Limited NVDR
586,000 The Siam Cement Public
Company Limited NVDR
China (1.9%)
21,388,601 CNOOC Limited
13,747,726 Industrial & Commercial Bank
of China Limited ‘H’
Czech Republic (2.3%)
1,096,052 Komercni banka AS
France (5.1%)
126,648 BNP Paribas SA
19,914 Hermes International
46,431 LVMH Moet Hennessy Louis
Vuitton SE
228,388 Schneider Electric SE
558,528 TOTAL SA
77,235 Unibail-Rodamco SE
Germany (2.8%)
530,862 Freenet AG
287,458 Hannover Rueck SE
Hong Kong (3.0%)
2,862,612 AIA Group Limited
13,113,435 HKT Trust and HKT Limited
1,513,548 VTech Holdings Limited
Israel (1.0%)
552,074 Teva Pharmaceutical Industries
Limited ADR
33,972,343
23,559,695
19,493,821
24,081,669
42,123,006
25,099,675
51,004,681
27,568,965
31,721,257
13,615,266
112,559,204
52,119,006
21,584,731
152,277,383
3,924,050
5,216,298
7,661,938
7,329,303
Japan (6.5%)
2,912,632 Astellas Pharma Inc.
637,913 Japan Tobacco Inc.
918,183 Nippon Telegraph and
Telephone Corporation
620,107 Park24 Company Limited
Netherlands (0.2%)
259,481 ING Groep NV
Singapore (0.3%)
2,171,715 Singapore Press
Holdings Limited
639,429
1,683,790
254,384
5,964,087
1,254,091
British American Tobacco PLC
British Land Company PLC
Close Brothers Group PLC
Lloyds Banking Group PLC
Royal Dutch Shell PLC
304
13,672,316
16,930,092
11,327,443
61,358,068
12,246,424
70,980,200
41,389,451
21,975,844
6,017,616
9,798,294
42,691,277
121,872,482
56,465,911
17,113,384
6,518,749
6,590,322
45,645,634
132,334,000
35,830,873
40,406,591
349,250
31,043,752
46,544,435
20,834,144
31,633,785
37,416,077
55,170,657
29,283,433
11,836,541
11,572,394
55,162,478
22,892,133
32,309,407
39,846,916
41,170,457
53,189,197
47,294,788
589,806
57,353,442
64,299,947
25,396,369
52,978,300
59,052,124
79,434,187
49,778,661
11,439,793
12,001,450
68,660,329
31,104,384
68,753,554
54,248,598
62,281,552
37,867,293
34,322,922
United States (49.0%)
209,044
545,795
16,234
603,861
1,163,689
351,180
181,941
325,909
478,351
426,136
162,861
137,028
1,198,471
536,208
217,374
473,182
414,823
787,599
441,097
103,859
573,467
219,724
824,102
448,193
3M Company
AbbVie Inc.
AdvanSix Inc.
Altria Group Inc.
AT&T Inc.
Bristol-Myers Squibb Company
Broadcom Limited
Chubb Limited
Honeywell International Inc.
JPMorgan Chase & Company
MetLife Inc.
Microsoft Corporation
Mondelez International Inc. ‘A’
National Retail Properties Inc.
Northrop Grumman Corporation
Omnicom Group Inc.
Philip Morris International Inc.
Tanger Factory Outlet
Centers Inc.
The Dun & Bradstreet
Corporation
The Kraft Heinz Company
The Sherwin-Williams Company
The TJX Companies Inc.
Visa Inc. ‘A’
Waste Management Inc.
Western Digital Corporation
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (95.0%)
11,630,578
11,700,990
40,284,356
53,268,496
37,672,235
42,842,479
44,807,430
60,308,392
23,536,596
25,967,811
49,143,463
79,915,365
41,944,175
49,190,311
830,189,449 1,155,373,247
(3,008,304)
–
1,781,276,415 2,238,692,659
25,685,476
46,612,747
NVDR – Non-voting Depository Receipt
22,517,038
48,202,514
25,763,049
72,375,796
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Global Dividend Fund (the “Fund”).
4,814,662
6,838,009
11,107,187
15,921,849
13,251,540
20,089,549
59,474,808
49,384,033
16,423,187
125,282,028
65,651,604
55,149,104
17,258,739
138,059,447
Switzerland (5.9%)
643,450 Nestle SA
162,387 Roche Holding AG
93,588 Sonova Holding AG
41,803,684
ETF – Exchange Traded Fund
Spain (0.9%)
838,982 Banco Santander SA
327,678 iShares MSCI Spain
Capped ETF
36,358,309
ADR – American Depository Receipt
South Korea (3.1%)
19,028 Samsung Electronics Company
Limited
464,908 Shinhan Financial Group
Company Limited
Fair
Value ($)
United Kingdom (5.6%)
81,515
Italy (1.0%)
6,667,165 Intesa Sanpaolo SpA
Average
Cost ($)
Thailand (3.0%)
Belgium (1.7%)
266,725 Anheuser-Busch InBev SA/NV
No. of Shares
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Global Dividend Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to seek long-term total returns by
investing primarily in a diversified portfolio of dividend-paying equity
securities of issuers located around the world.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
United States
Japan
Switzerland
United Kingdom
France
South Korea
Thailand
Hong Kong
Germany
Czech Republic
China
Belgium
Italy
Israel
Canada
Spain
Austria
Singapore
Netherlands
49.0
6.5
5.9
5.6
5.1
3.1
3.0
3.0
2.8
2.3
1.9
1.7
1.0
1.0
0.9
0.9
0.8
0.3
0.2
September 30, 2016
(%)
United States
Japan
France
United Kingdom
Switzerland
Germany
South Korea
Thailand
Czech Republic
China
Canada
Belgium
Spain
Hong Kong
Austria
Israel
Netherlands
Italy
Singapore
41.6
8.3
7.7
7.0
5.8
3.9
3.1
2.6
2.2
1.8
1.8
1.1
1.0
1.0
0.9
0.8
0.5
0.5
0.4
Portfolio by Sector
March 31, 2017
(%)
Consumer Staples
Financials
Industrials
Health Care
Information Technology
Telecommunication Services
Consumer Discretionary
Energy
Real Estate
Materials
ETFs – International Equity
18.3
16.2
14.3
9.3
8.9
6.9
6.3
5.7
4.5
4.0
0.6
September 30, 2016
(%)
Financials
Consumer Staples
Industrials
Health Care
Telecommunication Services
Consumer Discretionary
Information Technology
Energy
Real Estate
Materials
17.5
17.0
13.2
9.5
7.2
7.0
6.5
5.8
5.1
3.2
Portfolio by Asset Mix
March 31, 2017
(%)
United States Equity
International Equity
Canadian Equity
49.0
45.1
0.9
September 30, 2016
(%)
International Equity
United States Equity
Canadian Equity
48.6
41.6
1.8
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
March 31, 2017 are included in the following table:
March 31, 2017
iShares MSCI Spain Capped ETF
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
13,252
1.4
As at September 30, 2016, the Fund had no investments in
underlying funds or exchange traded funds.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
305
AGF Global Dividend Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives. Accordingly,
the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The impact on Net Assets of the Fund due to a 45 percent change in
benchmarks (September 30, 2016 – 55 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
MSCI World Index
MSCI All Country World Index
March 31,
2017
September 30,
2016
832,408
848,656
997,325
1,016,378
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
306
Currencies to which the Fund had exposure as at March 31,
2017 and September 30, 2016, were as follows:
March 31, 2017
($’000)
United States Dollar
Euro Currency
Japanese Yen
Swiss Franc
Pound Sterling
Hong Kong Dollar
South Korean Won
Thai Baht
Czech Koruna
Singapore Dollar
Foreign
Exchange
Financial Forward
Instruments Contracts
1,247,442
282,846
152,277
138,190
132,334
116,463
72,376
70,982
54,091
7,329
Total**
Percentage of
Net Assets (%)
– 1,247,442
– 282,846
– 152,277
– 138,190
– 132,334
– 116,463
–
72,376
–
70,982
–
54,091
–
7,329
53.0
12.0
6.5
5.9
5.6
4.9
3.1
3.0
2.3
0.3
September 30, 2016
($’000)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
South Korean Won
Hong Kong Dollar
Thai Baht
Czech Koruna
Singapore Dollar
Foreign
Exchange
Financial Forward
Instruments Contracts
1,162,791
356,715
186,536
157,069
130,522
71,120
62,280
58,344
49,757
7,960
Total**
Percentage of
Net Assets (%)
– 1,162,791
– 356,715
– 186,536
– 157,069
– 130,522
–
71,120
–
62,280
–
58,344
–
49,757
–
7,960
51.5
15.8
8.3
7.0
5.8
3.1
2.8
2.6
2.2
0.4
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $45,487,000 (September 30,
2016 – $44,862,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
AGF Global Dividend Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
2,238,693
–
–
–
2,238,693
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,238,693
–
–
–
2,238,693
–
–
Level 1
Level 2
Level 3
Total
2,078,303
–
–
–
2,078,303
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,078,303
–
–
–
2,078,303
–
–
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
March 31,
2017
September 30,
2016
96,258
–
102,518
53,713
–
56,977
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
% of Gross
($’000)
Income
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of New
York Mellon Corp.
Net Securities Lending Income
March 31, 2016
% of Gross
Income
($’000)
264
–
(7)
100.0
–
(2.8)
185
–
(6)
100.0
–
(3.1)
(76)
(28.9)
(54)
(29.1)
181
68.3
125
67.8
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
307
AGF Global Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Accrued management and advisory fees (Note 7(a))
Accrued expenses (Note 7(b))
Payable for units redeemed
Payable for distributions
Payable for investments purchased
Payable for foreign exchange forward contracts
Foreign taxes payable (Note 5)
Net Assets Attributable to Holders of Redeemable Units (Note 2)
Investments at Cost (Note 2)
Net Assets Attributable to Holders of Redeemable Units
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable Units per Unit (Note 6)
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Approved by the Board of Directors of AGF Investments Inc.
Blake C. Goldring, Director
308
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
871,393
–
6,635
–
533
–
–
–
2,419
434
881,414
September 30,
2016
$
835,056
–
6,154
–
107
–
–
–
1,898
543
843,758
$
$
–
–
–
–
197
791
997
6
–
–
–
1,991
879,423
689,624
$
$
–
–
–
–
176
924
1,011
88
1,100
–
–
3,299
840,459
706,267
$
$
$
$
$
$
$
$
$
$
456,181
–
16,282
1
8,567
1,451
395,408
–
–
1,533
$
$
$
$
$
$
$
$
$
$
458,527
–
16,175
–
7,661
1,302
356,654
–
–
140
$
$
$
$
$
$
$
$
$
$
34.94
–
41.10
10.45
37.43
11.79
36.61
–
–
11.84
$
$
$
$
$
$
$
$
$
$
32.34
–
38.16
–
34.85
10.97
34.08
–
–
11.02
AGF Global Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
For the periods ended March 31,
Income
Dividends
Distributions from funds
Interest for distribution purposes (Note 2)
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Net gain (loss) on investments
Net realized gain (loss) on derivatives
Net change in unrealized appreciation
(depreciation) in value of derivatives
Net gain (loss) on derivatives
Securities lending income (Note 2)
Net gain (loss) on foreign currencies and other
net assets
Total Income (Loss), Net
Expenses
Management and advisory fees (Note 7(a))
Unitholder servicing and administrative fees
(Note 7(c))
Annual and interim reports
Audit fees
Custodian fees and bank charges
Legal fees
Registration fees
Interest
Independent review committee fees
Harmonized sales tax and other taxes
Foreign withholding taxes
Commissions and other portfolio transaction
costs (Note 2)
Total expenses
Less expenses waived/absorbed by Manager
(Note 7(b))
Net expenses
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (Decrease) in Net Assets Attributable to
Holders of Redeemable Units from Operations
per Unit (Note 2)
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
9,123
697
10
16,991
STATEMENTS OF CASH FLOWS (UNAUDITED)
2016
$
6,882
–
6
388
52,980
79,801
–
10,729
18,005
–
–
–
47
–
–
34
364
80,212
(178)
17,861
6,492
3,672
698
16
11
70
–
25
3
1
815
1,129
215
18
7
26
–
14
21
1
458
905
164
9,424
102
5,439
(2,343)
7,081
(2,263)
3,176
$
73,131
$
14,685
$
$
$
$
$
$
$
$
$
$
35,645
–
1,354
0
732
142
35,175
–
–
83
$
$
$
$
$
$
$
$
$
$
2,542
–
118
–
186
3
11,836
–
–
0
$
$
$
$
$
$
$
$
$
$
2.61
–
3.33
0.45
3.29
1.07
3.24
–
–
1.30
$
$
$
$
$
$
$
$
$
$
0.53
–
0.73
–
0.92
0.08
1.00
–
–
0.20
For the periods ended March 31,
2017
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
$
Adjustments for:
Exchange (gain) loss on foreign currencies
Net realized (gain) loss on investments
and derivatives
Net change in unrealized (appreciation)
depreciation in value of investments
and derivatives
Purchases of investments and derivatives
Proceeds from sale and maturity of
investments and derivatives
Non-cash dividends and distributions from
funds reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends, distributions
and interest receivable
(Increase) decrease in accrued interest for
short-term investments
(Increase) decrease in tax reclaims receivable
Increase (decrease) in accrued management
and advisory fees
Increase (decrease) in accrued expenses
Net Cash Generated (Used) by Operating Activities
Interest received, net of withholding tax *
Dividends and distributions from funds received,
net of withholding tax *
$
38
14,685
265
(16,991)
(388)
(52,980)
(55,283)
(10,729)
(32,374)
87,817
42,732
–
–
–
–
(521)
(689)
–
109
–
4
21
(133)
35,208
11
(59)
13,458
(30)
46,225
(240)
35,450
(80,884)
(34,689)
(49,306)
(14,096)
(38)
(265)
$
519
6,154
6,635
$
(638)
5,531
4,628
$
10
$
7
$
8,161
$
5,287
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 9)
Amounts paid on redemption of redeemable units
(Note 9)
Net Cash Generated (Used) by Financing Activities
Exchange gain (loss) on foreign currencies
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
73,131
2016
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
309
AGF Global Equity Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (UNAUDITED)
For the periods ended March 31,
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Mutual Fund Units
$
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at Beginning of Period
Increase (decrease) in net assets attributable to
holders of redeemable units from operations
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Redeemable unit transactions (Note 6):
Proceeds from redeemable units issued
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Reinvestment of distributions to holders of
redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Payments on redemption of redeemable units
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net increase (decrease) from redeemable
unit transactions
310
2017
458,527
–
16,175
–
7,661
1,302
356,654
–
–
140
2016
$
146,768
–
4,926
–
6,176
246
367,557
–
–
1
840,459
525,674
35,645
–
1,354
0
732
142
35,175
–
–
83
73,131
2,542
–
118
–
186
3
11,836
–
–
0
14,685
12,848
–
1,961
1
934
603
32,131
–
–
1,397
49,875
10,828
–
1,770
–
989
480
22,463
–
–
–
36,530
497
–
151
–
150
33
7,314
–
–
17
8,162
168
–
26
–
103
1
5,916
–
–
–
6,214
(50,913)
–
(3,186)
–
(760)
(596)
(28,552)
–
–
(87)
(84,094)
(14,528)
–
(314)
–
(720)
(2)
(34,900)
–
–
–
(50,464)
(26,057)
(7,720)
For the periods ended March 31,
Distributions to holders of redeemable units
(Notes 6 and 7(a)):
Net investment income
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
2017
$
Capital gains
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Return of capital
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Increase (decrease) in net assets attributable to
holders of redeemable units for the period
Net Assets Attributable to Holders of Redeemable
Units at End of Period
Mutual Fund Units
Series D Units
Series F Units
Series I Units
Series O Units
Series Q Units
Series S Units
Series T Units
Series V Units
Series W Units
Net Assets Attributable to Holders of Redeemable
Units at End of Period
$
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
(423)
–
(173)
–
(150)
(33)
(7,314)
–
–
(17)
(8,110)
2016
$
(168)
–
(30)
–
(103)
(1)
(5,916)
–
–
–
(6,218)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
38,964
747
456,181
–
16,282
1
8,567
1,451
395,408
–
–
1,533
145,610
–
6,496
–
6,631
727
366,956
–
–
1
879,423
$
526,421
AGF Global Equity Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT MARCH 31, 2017 (UNAUDITED)
No. of Shares/
Units
Average
Cost ($)
Fair
Value ($)
8,953,461
8,497,327
7,439,417
8,424,621
14,932,781
16,660,020
Australia (1.0%)
894,488 Brambles Limited
Austria (1.0%)
160,930 Voestalpine AG
Belgium (1.9%)
114,123 Anheuser-Busch InBev SA/NV
162,595 Petroleo Brasileiro SA –
Petrobras Preferred
61,788 Vale SA ADR
32,143 Vale SA Preferred ‘A’
Fair
Value ($)
4,021,318
7,194,746
18,777,954
34,861,909
34,637,260
53,803,938
3,904,105
4,040,421
16,670,881
18,880,911
9,981,996
10,566,484
4,084,708
4,630,538
1,435,458
15,502,162
1,492,823
16,689,845
18,534,994
1,387,648
6,955,866
5,240,434
4,071,344
36,190,286
24,568,092
1,173,677
7,989,174
5,354,237
4,808,144
43,893,324
10,185,114
186,948
13,341,018
16,378,304
6,116,896
8,847,475
26,152,305
14,605,772
2,536,521
25,747,806
11,365,758
314,377
17,522,250
25,096,482
7,687,058
8,754,653
36,248,559
15,169,185
2,546,117
35,748,216
3,479,353
6,270,045
7,504,090
9,519,950
18,824,047
2,363,519
9,376,034
10,034,751
20,967,733
15,239,134
17,062,489
20,674,851
2,046,089
11,630,134
6,969,386
6,266,798
7,652,039
18,538,883
9,949,130
3,362,647
325,559,216
9,191,645
10,234,202
30,157,993
3,622,898
11,728,982
12,227,391
29,778,866
23,713,324
21,598,573
29,553,120
2,434,092
12,496,941
8,557,556
6,494,052
11,867,160
28,505,890
12,768,718
3,788,748
435,442,851
South Korea (continued)
2,937 Samsung Electronics Company
Limited
28,388 Samsung Electronics Company
Limited GDR
495,735 Banco Santander SA
786,365
465,484
355,857
1,607,706
1,006,333
780,603
385,181
2,172,117
6,834,394
5,405,515
12,239,909
7,515,515
4,380,990
11,896,505
9,574,335
13,343,471
22,917,806
8,796,176
16,157,566
24,953,742
9,389,415
8,937,026
358,800
2,996,787
7,529,131
6,355,584
17,240,302
497,118
3,618,474
8,645,098
6,751,196
19,511,886
16,438,346
12,912,464
11,951,126
41,301,936
21,855,651
16,770,054
12,989,420
51,615,125
7,968,290
8,839,179
7,278,126
4,718,221
6,281,068
6,884,337
19,006,297
5,484,912
8,238,702
8,868,414
16,507,805
21,498,239
5,897,028
9,664,143
10,510,537
29,026,238
15,467,509
73,573,639
20,783,903
97,380,088
6,685,447
5,627,350
12,312,797
8,643,426
6,903,758
15,547,184
1,559,925
5,545,442
7,105,367
348,847
5,351,335
5,700,182
4,758,215
4,839,105
170,399
168,215
2,044,717
6,973,331
1,897,253
6,904,573
6,159,838
5,902,799
7,222,923
4,749,009
Canada (1.4%)
59,146 Agrium Inc.
225,795 Goldcorp Inc.
China (2.8%)
5,539,214 CNOOC Limited
243,339 iShares MSCI China ETF
Czech Republic (1.0%)
181,091 Komercni Banka AS
France (2.2%)
Arkema SA
BNP Paribas SA
Schneider Electric SE
TOTAL SA
Germany (5.9%)
142,446 Hannover Rueck SE
113,498 Henkel AG & Company KGaA
339,742 iShares MSCI Germany ETF
Hong Kong (1.0%)
1,054,188 AIA Group Limited
Israel (0.5%)
110,562 Teva Pharmaceutical Industries
Limited ADR
Italy (0.8%)
1,905,973 Intesa Sanpaolo SpA
Japan (11.1%)
1,227,661
142,229
186,073
153,467
54,508
366,151
Average
Cost ($)
Spain (0.5%)
Brazil (0.2%)
3,789
40,855
88,791
100,364
No. of Shares/
Units
Astellas Pharma Inc.
Canon Inc.
FUJIFILM Holdings Corporation
iShares MSCI Japan ETF
Keyence Corporation
Nippon Telegraph and
Telephone Corporation
Netherlands (1.8%)
429,961 ING Groep NV
193,636 iShares MSCI Netherlands ETF
Norway (0.6%)
79,870 Fred. Olsen Energy ASA
359,287 Global X MSCI Norway ETF
Singapore (0.8%)
733,456 Keppel Corporation Limited
168,517 Keppel Real Estate
Investment Trust
562,167 Singapore Press
Holdings Limited
South Korea (6.1%)
87,787 iShares MSCI South Korea
Capped ETF
107,788 Kia Motors Corporation
Switzerland (2.1%)
55,595 Roche Holding AG
Thailand (1.9%)
101,880 iShares MSCI Thailand
Capped ETF
633,070 Kasikornbank Public Company
Limited (Foreign)
414,770 PTT Exploration and Production
Public Company
Limited (Foreign)
United Kingdom (5.0%)
278,213
1,062,150
228,985
147,105
457,693
British American Tobacco PLC
Lloyds Banking Group PLC
Persimmon PLC
Royal Dutch Shell PLC ‘B’
The Sage Group PLC
United States (49.5%)
131,164
8,653
218,945
264,235
139,119
121,059
200,056
139,089
140,263
215,275
23,546
39,691
251,249
258,171
41,624
166,978
213,430
199,863
74,973
188,393
196,837
53,363
87,060
70,862
165,032
190,311
293,958
116,341
212,771
AbbVie Inc.
AdvanSix Inc.
AGCO Corporation
Altria Group Inc.
AT&T Inc.
Bristol-Myers Squibb Company
Chubb Limited
Exxon Mobil Corporation
Forestar Group Inc.
Honeywell International Inc.
Huntington Ingalls
Industries Inc.
International Business
Machines Corporation
Invesco Limited
JPMorgan Chase & Company
Lincoln National Corporation
MetLife Inc.
Mondelez International Inc. ‘A’
Moody’s Corporation
Northrop Grumman Corporation
Omnicom Group Inc.
Philip Morris International Inc.
Synchrony Financial
The Dun & Bradstreet Corporation
The Kraft Heinz Company
The Williams Companies Inc.
Unum Group
Waste Management Inc.
Western Digital Corporation
WPX Energy Inc.
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (99.1%)
(579,771)
689,624,139
–
871,393,423
ADR – American Depository Receipt
ETF – Exchange Traded Fund
GDR – Global Depository Receipt
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
March 31, 2017 of AGF Global Equity Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
311
AGF Global Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED)
Investment Objective
The Fund’s investment objective is to provide long-term capital growth
by investing primarily in shares of companies around the world. The
Fund may invest up to 25% of its assets in companies in emerging
markets.
Summary of Investment Portfolio
As at March 31, 2017 and September 30, 2016, the Fund’s major
portfolio categories, as a percentage of Net Assets, are included in the
following tables:
Portfolio by Country
March 31, 2017
(%)
United States
Japan
South Korea
Germany
United Kingdom
China
France
Switzerland
Thailand
Belgium
Netherlands
Canada
Czech Republic
Hong Kong
Australia
Austria
Singapore
Italy
Norway
Israel
Spain
Brazil
49.5
11.1
6.1
5.9
5.0
2.8
2.2
2.1
1.9
1.9
1.8
1.4
1.0
1.0
1.0
1.0
0.8
0.8
0.6
0.5
0.5
0.2
September 30, 2016
(%)
United States
Japan
Germany
South Korea
United Kingdom
China
France
Netherlands
Belgium
Switzerland
Canada
Australia
Czech Republic
Austria
Hong Kong
Israel
Singapore
Spain
Norway
Italy
Brazil
Thailand
49.4
12.8
5.9
5.1
4.5
3.0
2.6
2.4
2.4
2.2
1.4
1.3
1.0
0.9
0.8
0.8
0.7
0.7
0.7
0.4
0.2
0.2
312
Portfolio by Sector
March 31, 2017
(%)
Financials
Industrials
Consumer Staples
Information Technology
ETFs – International Equity
Health Care
Energy
Consumer Discretionary
Telecommunication Services
Materials
Real Estate
23.3
16.6
15.2
12.9
7.9
7.4
5.6
4.1
3.3
2.5
0.3
September 30, 2016
(%)
Financials
Industrials
Consumer Staples
Information Technology
Health Care
ETFs – International Equity
Energy
Consumer Discretionary
Telecommunication Services
Materials
Real Estate
22.7
16.5
16.0
11.9
8.4
7.4
5.9
4.3
3.5
2.5
0.3
Portfolio by Asset Mix
March 31, 2017
(%)
United States Equity
International Equity
Canadian Equity
49.5
48.2
1.4
September 30, 2016
(%)
United States Equity
International Equity
Canadian Equity
49.4
48.6
1.4
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
March 31, 2017 and September 30, 2016 are included in the following
tables:
March 31, 2017
Global X MSCI Norway ETF
iShares MSCI Netherlands ETF
iShares MSCI Thailand Capped ETF
iShares MSCI China ETF
iShares MSCI Germany ETF
iShares MSCI South Korea Capped ETF
iShares MSCI Japan ETF
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
5,351
6,904
10,566
16,158
12,989
7,223
10,511
3.5
2.7
2.0
0.5
0.2
0.1
0.1
AGF Global Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
September 30, 2016
iShares MSCI Netherlands ETF
Global X MSCI Norway ETF
iShares MSCI China ETF
iShares MSCI Germany ETF
iShares MSCI South Korea Capped ETF
iShares MSCI Japan ETF
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
9,860
5,355
15,791
11,942
4,585
14,430
4.0
3.6
0.6
0.2
0.1
0.1
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at March 31, 2017 and
September 30, 2016, were as follows:
March 31, 2017
($’000)
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at March 31, 2017 and September 30, 2016, the Fund had no
significant investments in debt instruments and derivatives.
Accordingly, the Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The impact on Net Assets of the Fund due to a 40 percent change in
benchmark (September 30, 2016 – 50 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at March 31, 2017 and
September 30, 2016, with all other variables held constant, is included in
the following table. Regression analysis has been utilized to estimate the
historical correlation. The analysis uses 36 monthly data points, unless
the inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
MSCI All Country World Index
March 31,
2017
September 30,
2016
328,778
401,784
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
Hong Kong Dollar
South Korean Won
Czech Koruna
Australian Dollar
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
562,523
102,892
86,980
43,989
18,940
17,989
12,150
8,982
8,497
7,523
6,143
1,398
365
–
–
–
–
–
–
–
–
–
–
–
–
–
Percentage of
Net Assets (%)
562,523
102,892
86,980
43,989
18,940
17,989
12,150
8,982
8,497
7,523
6,143
1,398
365
64.0
11.7
9.9
5.0
2.2
2.0
1.4
1.0
1.0
0.9
0.7
0.2
0.0
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
Percentage of
Net Assets (%)
September 30, 2016
($’000)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
Hong Kong Dollar
South Korean Won
Australian Dollar
Czech Koruna
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
527,583
106,444
92,863
38,006
18,452
16,431
11,420
10,974
8,430
6,771
1,317
1,117
165
–
–
–
–
–
–
–
–
–
–
–
–
–
527,583
106,444
92,863
38,006
18,452
16,431
11,420
10,974
8,430
6,771
1,317
1,117
165
62.8
12.7
11.0
4.5
2.2
2.0
1.4
1.3
1.0
0.8
0.2
0.1
0.0
** Includes both monetary and non-monetary instruments, as applicable
As at March 31, 2017 and September 30, 2016, if the Canadian dollar
had strengthened or weakened by 2 percent, in relation to all currencies,
with all other variables held constant, Net Assets would have decreased
or increased, respectively, by approximately $17,567,000 (September 30,
2016 – $16,799,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
313
AGF Global Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION (UNAUDITED) CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at March 31, 2017 and
September 30, 2016.
March 31, 2017
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
869,900
–
–
–
869,900
–
–
1,493
–
–
–
1,493
–
–
–
–
–
–
–
–
–
871,393
–
–
–
871,393
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
833,759
–
–
–
833,759
–
–
1,297
–
–
–
1,297
–
–
–
–
–
–
–
–
–
835,056
–
–
–
835,056
–
–
The value of securities loaned and collateral received from securities
lending as at March 31, 2017 and September 30, 2016 were as follows:
($’000)
March 31, September 30,
2017
2016
Fair Value of Securities on Loan
Fair Value of Cash Collateral Received
Fair Value of Securities Collateral Received
September 30, 2016
There were no significant transfers between levels 1 and 2 during the
periods ended March 31, 2017 and September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended March 31, 2017 and September 30, 2016, the
Fund did not hold financial instruments within level 3 of the fair value
hierarchy.
SECURITIES LENDING TRANSACTIONS (Note 2)
A reconciliation of the gross amount generated from securities lending
transactions to the securities lending income earned by the Fund for the
periods ended March 31, 2017 and 2016 is as follows:
March 31, 2017
% of Gross
($’000)
Income
March 31, 2016
% of Gross
Income
($’000)
Gross Securities
Lending Income
Interest Paid on Cash Collateral
Withholding Taxes
Agent Fees – The Bank of New
York Mellon Corp.
80
–
(9)
100.0
–
(11.2)
56
–
(7)
100.0
–
(13.0)
(24)
(29.8)
(15)
(26.1)
Net Securities Lending Income
47
59.0
34
60.9
314
The accompanying notes are an integral part of these financial statements.
SEMI-ANNUAL REPORT 2017
48,412
–
51,917
36,553
–
38,655
AGF Global Resources Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
March 31,
2017
As at
Assets
Current Assets
Investments at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Cash and cash equivalents
Cash collateral received for securities on loan (Note 2)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends, distributions and interest receivable
Tax reclaims receivable
$
Liabilities
Current Liabilities
Bank overdraft
Written options at fair value through profit or loss
Foreign exchange forward contracts at fair value through profit or loss
Payable for cash collateral under securities lending (Note 2)
Acc