ANNUAL FINANCIAL STATEMENTS
AGF Mutual Funds
SEPTEMBER 30, 2016
Table of Contents
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158
164
170
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187
194
Management’s Responsibility for Financial Reporting
Independent Auditor’s Report
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
202
207
215
223
228
234
242
248
264
275
284
292
299
306
312
318
324
332
337
347
353
361
369
378
388
394
400
406
412
417
423
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
428
Notes to Financial Statements
The next report on the funds will contain interim financial information as at March 31, 2017.
Management’s Responsibility for Financial Reporting
November 23, 2016
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
ANNUAL REPORT 2016
Independent Auditor’s Report
To the Shareholders/Unitholders of
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
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
(collectively, the “Funds”)
We have audited the accompanying financial statements of each of the Funds, which comprise the statements of financial position as at the dates
indicated in Note 1(e) of the accompanying financial statements and statements of comprehensive income, changes in net assets attributable to
holders of redeemable shares/units and cash flows for the periods indicated in Note 1(e) of the accompanying financial statements, and the related
notes, which comprise a summary of significant accounting policies and other explanatory information.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements of each of the Funds in accordance with
International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial statements of each of the Funds based on our audits. We conducted our audits in
accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained in each of our audits is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements of each of the Funds present fairly, in all material respects, the financial position of each of the Funds as at
the dates indicated in Note 1(e) of the accompanying financial statements and the financial performance and cash flows of each of the Funds for
the periods indicated in Note 1(e) of the accompanying financial statements in accordance with International Financial Reporting Standards.
Chartered Professional Accountants, Licensed Public Accountants
Toronto, Ontario
November 30, 2016
3
ANNUAL REPORT 2016
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
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 9)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
September 30,
2016
September 30,
2015
$
$
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 9)
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
4
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
993,474
–
6,957
–
230
–
–
–
333
–
–
–
1,000,994
782,754
–
55,939
–
608
–
–
–
168
–
–
–
839,469
$
$
–
–
–
–
336
641
976
39
–
–
–
1,992
999,002
801,324
$
$
–
–
–
–
282
882
700
40
–
–
–
1,904
837,565
597,233
$
$
$
$
$
$
$
$
$
797,583
347
44,533
141,948
6,360
–
7,092
1,139
–
$
$
$
$
$
$
$
$
$
663,490
368
33,932
124,227
6,374
–
8,316
858
–
$
$
$
$
$
$
$
$
$
41.01
42.96
52.06
63.93
22.46
–
21.31
26.90
–
$
$
$
$
$
$
$
$
$
37.92
39.72
47.44
57.58
20.23
–
21.47
26.25
–
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
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
7,239
42
95,937
2015
$
6,629
109,847
–
$
$
$
$
$
$
$
$
$
$
9,069
98
227,368
(60,780)
175,755
–
–
–
44
–
–
118
(488)
109,403
5,779
181,652
17,863
18,892
1,482
63
12
59
–
52
1
5
2
–
2,096
975
1,390
57
11
19
–
49
1
5
2
–
2,215
1,127
686
23,296
726
24,494
(1,240)
22,056
(2,566)
21,928
87,347
68,340
28
3,619
14,301
480
–
499
80
–
$
$
$
$
$
$
$
$
$
$
159,724
130,335
64
3,946
23,158
755
–
1,341
125
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
Income taxes (paid) recovered *
$
87,347
2015
$
159,724
(32)
(1,727)
(95,937)
(227,368)
(6,629)
(697,990)
60,780
(608,464)
589,836
–
–
816,264
–
–
(165)
243
–
–
–
–
–
–
–
–
54
(241)
(123,757)
(26)
(107)
199,319
(497)
(463)
221,316
117,370
(146,076)
74,743
(309,789)
(192,882)
32
1,727
(49,014)
55,939
6,957
6,437
47,775
55,939
$
$
$
1,834
5,123
6,957
$
$
52,631
3,308
55,939
$
$
$
41
6,105
–
$
$
$
97
8,003
–
* Included as part of Cash Flows from Operating Activities
$
$
$
$
$
$
$
$
$
3.62
3.34
4.55
6.32
1.60
–
1.38
2.14
–
$
$
$
$
$
$
$
$
$
6.45
6.39
6.77
10.48
3.32
–
3.54
4.06
–
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
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
For the periods ended September 30,
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
6
2016
663,490
368
33,932
124,227
6,374
–
8,316
858
–
2015
$
735,165
372
21,674
101,903
2,825
–
6,763
701
–
837,565
869,403
68,340
28
3,619
14,301
480
–
499
80
–
87,347
130,335
64
3,946
23,158
755
–
1,341
125
–
159,724
117,592
5
7,468
25,103
1,563
–
1,012
249
–
152,992
66,354
2
8,920
24,379
2,276
–
2,142
135
–
104,208
67,599
–
5,854
–
1,167
–
103
169
–
74,892
12,722
–
5,129
31
2,166
–
356
88
–
20,492
–
–
–
–
–
–
186
31
–
217
–
–
–
–
–
–
154
26
–
180
(108,267)
(54)
(5,887)
(21,683)
(2,927)
–
(2,279)
(189)
–
(141,286)
(210,916)
(70)
(5,345)
(25,244)
(1,222)
–
(1,648)
(180)
–
(244,625)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(11,171)
–
(453)
–
(297)
–
(85)
(6)
–
(12,012)
2015
$
74,803
(70,170)
–
(392)
–
(426)
–
(178)
–
–
(71,166)
(190,911)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(660)
(53)
–
(713)
–
–
–
–
–
–
(614)
(37)
–
(651)
161,437
(31,838)
797,583
347
44,533
141,948
6,360
–
7,092
1,139
–
663,490
368
33,932
124,227
6,374
–
8,316
858
–
999,002
$
837,565
AGF American Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares
Average
Cost ($)
Fair
Value ($)
13,117,363
32,867,241
18,881,440
10,253,178
23,171,636
58,554,916
30,894,895
18,595,403
10,503,633
22,322,338
19,630,239
117,921,097
28,196,395
169,067,580
19,004,800
24,613,900
43,618,700
20,615,754
23,707,930
44,323,684
24,611,126
11,763,460
25,907,367
15,990,059
15,358,597
51,733,183
16,207,204
58,104,630
9,614,449
30,206,500
22,383,512
62,204,461
22,038,617
30,387,757
21,810,028
74,236,402
26,441,630
14,341,555
35,442,282
16,465,539
17,505,764
32,552,622
90,841,571
20,024,873
35,171,175
107,103,869
14,652,242
15,254,625
14,732,011
15,586,207
27,768,157
57,675,024
28,829,934
59,148,152
27,159,365
45,479,181
19,651,906
25,492,976
20,423,465
15,188,008
23,050,126
19,135,455
13,299,677
10,139,234
17,138,131
13,863,495
250,021,019
32,391,797
45,485,652
22,034,795
29,705,827
20,517,052
21,827,091
52,621,006
32,442,949
15,285,638
10,894,654
28,594,637
14,061,517
325,862,615
17,237,119
31,829,923
49,067,042
18,392,104
34,852,619
53,244,723
26,991,190
24,394,217
51,385,407
33,417,462
30,986,567
64,404,029
Consumer Discretionary (16.9%)
53,304
336,460
334,763
225,779
235,627
90,310
No. of Shares
Average
Cost ($)
Fair
Value ($)
27,334,559
37,978,625
Telecommunication Services (3.8%)
Amazon.com Inc.
Dollar General Corporation
Lennar Corporation ‘A’
LKQ Corporation
Lowe’s Companies Inc.
Ulta Salon, Cosmetics &
Fragrance Inc.
Consumer Staples (4.5%)
94,383 Constellation Brands Inc. ‘A’
118,489 Costco Wholesale Corporation
619,611 T-Mobile US Inc.
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (99.4%)
(477,874)
801,324,189
–
993,474,309
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
September 30, 2016 attributable to AGF American Growth Class (the
“Fund”).
Energy (5.8%)
143,773 Concho Resources Inc.
280,442 Newfield Exploration Company
66,542 Pioneer Natural Resources
Company
Financials (7.4%)
316,771 Primerica Inc.
397,909 Raymond James Financial Inc.
526,580 The Charles Schwab Corporation
Health Care (10.7%)
224,079 Edwards Lifesciences Corporation
17,315 Intuitive Surgical Inc.
111,023 Laboratory Corporation of
America Holdings
191,488 UnitedHealth Group Inc.
Industrials (5.9%)
42,438 Acuity Brands Inc.
88,276 Equifax Inc.
378,225 Fortune Brands Home &
Security Inc.
Information Technology (32.6%)
227,472
43,119
258,710
750,995
90,648
703,473
312,692
360,899
201,332
202,689
305,559
190,475
Adobe Systems Inc.
Alphabet Inc. ‘A’
Amphenol Corporation ‘A’
Applied Materials Inc.
Broadcom Limited
Corning Inc.
Facebook Inc. ‘A’
NVIDIA Corporation
Paychex Inc.
PayPal Holdings Inc.
salesforce.com inc.
Vantiv Inc. ‘A’
Materials (5.3%)
163,983 Albemarle Corporation
233,584 Vulcan Materials Company
Real Estate (6.5%)
224,756 American Tower
Corporation ‘A’
65,562 Equinix Inc.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
7
AGF American Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
September 30, 2016
(%)
United States
99.4
September 30, 2015
(%)
United States
93.5
Portfolio by Sector
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
September 30, 2015
(%)
Information Technology
Consumer Discretionary
Financials
Health Care
Industrials
Energy
Telecommunication Services
Consumer Staples
30.6
17.8
16.4
13.0
5.4
5.2
3.7
1.4
Portfolio by Asset Mix
September 30, 2016
(%)
United States Equity
99.4
September 30, 2015
(%)
United States Equity
93.5
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
8
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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 75 percent change in
benchmark (September 30, 2015 – 90 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmark, as at September 30, 2016 and
2015, 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, 2015, the Fund’s benchmark was changed from
S&P 500 Index to S&P 500 Net Return Index to better reflect the
investment opportunity set of the Fund.
Impact on Net Assets ($’000)
Benchmark
S&P 500 Net Return Index
S&P 500 Index
September 30,
2016
September 30,
2015
959,344
N/A
N/A
838,140
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
payable for cash collateral under securities lending and payable for
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
September 30, 2016
($’000)
United States Dollar
Financial
Instruments
Foreign
Exchange
Forward
Percentage of
Contracts Total** Net Assets (%)
995,323
–
995,323
99.6
September 30, 2015
($’000)
United States Dollar
Financial
Instruments
Foreign
Exchange
Forward
Percentage of
Contracts Total** Net Assets (%)
835,386
–
835,386
99.7
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $19,906,000 (September 30,
2015 – $16,708,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
993,474
–
–
–
993,474
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
993,474
–
–
–
993,474
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
782,754
–
–
–
782,754
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
782,754
–
–
–
782,754
–
–
Total Investments
Derivative Assets
Derivative Liabilities
September 30, 2015
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
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
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 9)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
September 30,
2016
September 30,
2015
$
$
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 9)
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
10
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
31,943
–
526
–
6
330
–
–
41
–
–
–
32,846
31,566
–
296
–
755
487
–
–
63
–
–
–
33,167
$
$
–
–
–
–
12
72
120
–
178
–
–
382
32,464
24,773
$
$
–
–
–
–
24
80
49
–
30
–
–
183
32,984
27,156
$
$
$
$
$
$
$
$
$
23,932
–
815
868
–
6,849
–
–
–
$
$
$
$
$
$
$
$
$
26,309
–
585
–
–
6,090
–
–
–
$
$
$
$
$
$
$
$
$
16.25
–
20.03
16.78
–
21.71
–
–
–
$
$
$
$
$
$
$
$
$
14.83
–
18.10
–
–
19.38
–
–
–
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
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
745
29
1,158
2015
$
2,760
4,692
–
867
7
6,358
(3,473)
3,759
–
–
–
3
–
–
3
(122)
4,573
62
3,824
702
838
212
25
13
31
–
19
1
1
2
–
93
87
193
23
12
84
–
18
1
1
2
–
115
96
160
1,346
172
1,555
(232)
1,114
(250)
1,305
$
3,459
$
2,519
$
$
$
$
$
$
$
$
$
2,512
–
75
81
–
791
–
–
–
$
$
$
$
$
$
$
$
$
1,557
–
35
–
–
927
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
Income taxes (paid) recovered *
3,459
2015
$
2,519
(4)
(7)
(1,158)
(6,358)
(2,760)
(18,750)
3,473
(19,321)
22,596
–
–
30,530
–
–
22
(18)
–
–
–
–
–
–
–
–
(12)
(8)
3,385
(5)
(4)
10,809
–
–
29,591
15,563
(32,750)
(3,159)
(27,583)
(12,020)
4
$
$
226
296
526
7
$
$
(1,211)
1,500
296
$
524
2
526
$
296
–
296
$
$
$
29
679
–
$
$
$
7
753
–
* Included as part of Cash Flows from Operating Activities
$
$
$
$
$
$
$
$
$
1.51
–
2.10
1.71
–
2.40
–
–
–
$
$
$
$
$
$
$
$
$
0.83
–
0.88
–
–
2.28
–
–
–
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
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
For the periods ended September 30,
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
2016
26,309
–
585
–
–
6,090
–
–
–
2015
$
28,779
–
899
–
–
12,116
–
–
–
32,984
41,794
2,512
–
75
81
–
791
–
–
–
3,459
1,557
–
35
–
–
927
–
–
–
2,519
15,793
–
118
999
–
888
–
–
–
17,798
8,165
–
66
–
–
750
–
–
–
8,981
11,069
–
255
–
–
–
–
–
–
11,324
7,283
–
37
–
–
–
–
–
–
7,320
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(19,614)
–
(175)
(212)
–
(920)
–
–
–
(20,921)
(11,564)
–
(452)
–
–
(7,703)
–
–
–
(19,719)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(12,137)
–
(43)
–
–
–
–
–
–
(12,180)
2015
$
(3,979)
(7,911)
–
–
–
–
–
–
–
–
(7,911)
(11,329)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(520)
(8,810)
23,932
–
815
868
–
6,849
–
–
–
32,464
26,309
–
585
–
–
6,090
–
–
–
$
32,984
AGF Asian Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Average
Cost ($)
No. of Shares
Fair
Value ($)
China (36.4%)
No. of Shares
Average
Cost ($)
Fair
Value ($)
539,185
357,533
386,686
682,569
525,924
432,651
1,052,856
2,131,998
457,113
239,817
4,364,376
506,971
243,009
5,741,739
615,918
550,807
389,885
457,051
513,054
558,757
842,860
2,361,717
2,291,541
3,858,156
317,141
339,554
373,603
690,744
507,969
847,523
631,733
692,294
South Korea (continued)
9,900 Alibaba Group Holding
Limited ADR
3,500 Baidu Inc. ADR
1,200,000 Bank of China Limited ‘H’
1,115,000 China Construction Bank
Corporation ‘H’
160,000 China Mengniu Dairy
Company Limited
60,000 China Mobile Limited
130,000 China Pacific Insurance Group
Company Limited ‘H’
160,000 China Resources Land Limited
800,000 China ZhengTong Auto
Services Holdings Limited
320,000 CNOOC Limited
10,000 Ctrip.com International
Limited ADR
74,800 Fuyao Glass Industry Group
Company Limited
230,000 Phoenix Healthcare Group
Company Limited
120,000 Ping An Insurance (Group)
Company of China
Limited ‘H’
60,000 Tencent Holdings Limited
1,053,869
719,628
699,354
1,374,033
836,034
718,524
902,488
1,084,426
413,847
892,201
389,708
952,451
622,449
402,473
629,977
584,562
599,860
538,441
331,523
520,693
589,720
610,975
264,220
268,222
495,736
536,086
570,705
466,694
9,231,685
815,952
2,161,663
11,814,829
571,843
1,185,836
243,349
310,210
528,041
536,668
536,119
560,206
331,588
517,074
265,459
621,066
3,098,014
485,278
673,194
4,267,917
639,894
848,845
507,450
1,147,344
468,314
1,317,159
409,036
386,985
796,021
441,907
442,310
884,217
340,372
476,013
816,385
428,275
453,655
881,930
365,668
464,151
316,900
427,728
408,386
403,966
463,845
1,702,050
488,876
1,637,470
370,859
499,594
460,733
299,115
401,679
517,823
600 LG Household & Health
Care Limited
500 NAVER Corporation
1,600 POSCO
1,120 Samsung Electronics
Company Limited
10,600 Shinhan Financial Group
Company Limited
8,000 Wonik IPS Company Limited
Taiwan (11.9%)
350,001 Advanced Semiconductor
Engineering Inc.
600,000 CTBC Financial Holding
Company Limited
60,000 Taiwan FamilyMart
Company Limited
300,001 Taiwan Semiconductor
Manufacturing
Company Limited
Thailand (2.6%)
380,000 Sino-Thai Engineering and
Construction Public
Company Limited
26,000 The Siam Cement Public
Company Limited NVDR
Hong Kong (13.2%)
136,000 AIA Group Limited
70,000 BOC Hong Kong
(Holdings) Limited
56,000 Cheung Kong Property
Holdings Limited
600,000 First Pacific Company Limited
15,000 Hong Kong Exchanges and
Clearing Limited
621,000 SITC International Holdings
Company Limited
500,000 Value Partners Group Limited
India (4.1%)
9,000 HDFC Bank Limited ADR
32,000 Sun Pharmaceutical
Industries Limited
Indonesia (2.7%)
280,000 PT Bank Central Asia Tbk
2,000,000 PT Bumi Serpong Damai Tbk
The Philippines (2.1%)
300,000 Metropolitan Bank and
Trust Company
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (98.4%)
(67,441)
24,772,628
–
31,943,234
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
September 30, 2016 attributable to AGF Asian Growth Class (the “Fund”).
Malaysia (2.7%)
750,000 7-Eleven Malaysia
Holdings Berhad
100,000 Tenaga Nasional Berhad
Singapore (5.0%)
180,000 First Resources Limited
60,000 Singapore Exchange Limited
130,000 Singapore Technologies
Engineering Limited
128,000 Singapore Telecommunications
Limited
South Korea (17.7%)
3,000 CJ CGV Company Limited
8,000 Kia Motors Corporation
1,800 LG Chem Limited
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
13
AGF Asian Growth Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
September 30, 2015
(%)
Summary of Investment Portfolio
As at September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Financials
Information Technology
Consumer Staples
Industrials
Telecommunication Services
Materials
Consumer Discretionary
Health Care
Utilities
Energy
36.7
23.5
8.1
7.2
7.0
5.2
2.8
2.2
1.6
1.4
Portfolio by Country
Portfolio by Asset Mix
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.
September 30, 2016
(%)
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
International Equity
98.4
September 30, 2015
(%)
International Equity
95.7
September 30, 2015
(%)
China
South Korea
Taiwan
Hong Kong
Singapore
Thailand
The Philippines
Indonesia
India
36.3
18.2
11.6
11.6
7.5
3.3
2.5
2.5
2.2
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Portfolio by Sector
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
Credit Risk
As at September 30, 2016 and 2015, 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 55 percent change in
benchmarks (September 30, 2015 – 75 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at September 30, 2016 and
2015, 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 ($’000)
Benchmark
MSCI Pacific Free ex-Japan Index
MSCI All Country Far East ex-Japan Index
14
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
September 30,
2016
September 30,
2015
13,057
17,838
13,875
23,846
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
payable for cash collateral under securities lending and payable for
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at September 30, 2016
and 2015, were as follows:
Hong Kong Dollar
South Korean Won
United States Dollar
New Taiwanese Dollar
Singapore Dollar
Indonesian Rupiah
Malaysian Ringgit
Thai Baht
Philippine Peso
Indian Rupee
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
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
Level 1
Level 2
Level 3
Total
31,943
–
–
–
31,943
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
31,943
–
–
–
31,943
–
–
Level 1
Level 2
Level 3
Total
31,566
–
–
–
31,566
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
31,566
–
–
–
31,566
–
–
September 30, 2015
($’000)
September 30, 2016
($’000)
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
September 30, 2015
($’000)
Hong Kong Dollar
South Korean Won
New Taiwanese Dollar
Singapore Dollar
United States Dollar
Thai Baht
Indonesian Rupiah
Philippine Peso
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
14,186
6,002
3,957
2,491
2,472
1,083
918
833
–
–
–
–
–
–
–
–
14,186
6,002
3,957
2,491
2,472
1,083
918
833
43.0
18.2
12.0
7.6
7.5
3.3
2.8
2.5
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $653,000 (September 30,
2015 – $639,000).
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.
ANNUAL REPORT 2016
15
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
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 9)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
September 30,
2016
September 30,
2015
$
$
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 9)
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
16
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
606,698
–
50,615
–
56
2,504
–
–
620
–
–
3,130
663,623
522,529
–
66,953
–
85
2,269
–
–
467
–
–
2,404
594,707
$
$
–
–
–
–
262
670
447
–
2,545
–
–
3,924
659,699
510,106
$
$
–
–
–
–
269
522
296
–
2,516
–
–
3,603
591,104
526,145
$
$
$
$
$
$
$
$
$
630,122
–
5,253
24,324
–
–
–
–
–
$
$
$
$
$
$
$
$
$
573,781
–
3,176
14,147
–
–
–
–
–
$
$
$
$
$
$
$
$
$
60.16
–
70.83
83.94
–
–
–
–
–
$
$
$
$
$
$
$
$
$
52.62
–
61.18
71.37
–
–
–
–
–
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
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
7,290
339
(5,130)
2015
$
100,208
102,707
–
5,790
191
28,082
(93,093)
(59,030)
–
–
–
347
–
–
19
(127)
102,927
1,247
(57,764)
14,235
11,949
1,156
51
39
49
5
48
1
2
2
–
1,646
62
881
48
38
23
31
37
1
2
2
(4)
1,337
15
1,685
18,981
1,450
15,810
(6)
18,975
(11)
15,799
$
83,952
$
(73,563)
$
$
$
$
$
$
$
$
$
80,330
–
624
2,998
–
–
–
–
–
$
$
$
$
$
$
$
$
$
(71,571)
–
(294)
(1,698)
–
–
–
–
–
$
$
$
$
$
$
$
$
$
7.40
–
9.85
13.05
–
–
–
–
–
$
$
$
$
$
$
$
$
$
(8.51)
–
(4.95)
(7.54)
–
–
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
Income taxes (paid) recovered *
$
$
83,952
2015
$
(73,563)
(48)
(1,227)
5,130
(28,082)
(100,208)
(373,719)
93,093
(533,337)
406,983
–
–
313,107
–
–
(153)
(201)
–
–
–
–
–
–
(726)
(4)
(7)
148
21,352
101
110
(230,003)
–
–
69,705
355,434
(107,443)
(37,738)
(75,764)
279,670
48
1,227
(16,386)
66,953
50,615
49,667
16,059
66,953
$
$
4,608
46,007
50,615
$
$
3,852
63,101
66,953
$
$
$
338
7,101
–
$
$
$
175
5,594
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
17
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
For the periods ended September 30,
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
18
2016
573,781
–
3,176
14,147
–
–
–
–
–
2015
$
359,434
–
3,894
21,814
–
–
–
–
–
591,104
385,142
80,330
–
624
2,998
–
–
–
–
–
83,952
(71,571)
–
(294)
(1,698)
–
–
–
–
–
(73,563)
46,179
–
1,178
2,757
–
–
–
–
–
50,114
295,011
–
1,593
1,836
–
–
–
–
–
298,440
32,391
–
1,818
9,227
–
–
–
–
–
43,436
57,114
–
486
–
–
–
–
–
–
57,600
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(86,538)
–
(1,469)
(4,805)
–
–
–
–
–
(92,812)
(63,872)
–
(2,491)
(7,774)
–
–
–
–
–
(74,137)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(16,021)
–
(74)
–
–
–
–
–
–
(16,095)
2015
$
(2,335)
–
(12)
(31)
–
–
–
–
–
(2,378)
(15,357)
279,525
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
68,595
205,962
630,122
–
5,253
24,324
–
–
–
–
–
573,781
–
3,176
14,147
–
–
–
–
–
659,699
$
591,104
AGF Canadian Growth Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares
Average
Cost ($)
Fair
Value ($)
3,350,744
7,732,620
7,524,563
2,802,063
7,024,030
9,451,011
–
4,206,391
6,038,040
6,900,770
6,691,413
6,423,103
14,309,354
137
4,477,801
1,858,100
9,550,400
7,063,316
3,240,770
11,062,074
6,328,864
69,505,862
9,111,564
65,641,266
10,762,677
16,607,154
12,311,893
2,192,000
8,335,983
33,602,553
21,655,729
2,192,000
9,560,804
50,015,687
Consumer Discretionary (10.0%)
126,504
2,951,273
92,268
6,960
50,400
2,732,500
174,341
125,414
1,687,901
368,200
292,600
Average
Cost ($)
Fair
Value ($)
6,000,002
2,343,212
18,619,509
8,663,178
3,965,552
29,713,504
9,838,429
15,651,743
70,312
17,454
4,402,032
15,530,298
29,841,071
4,074,422
14,901,543
34,645,162
11,749,339
1,884,645
15,342,232
2,431,550
–
11,684,498
5,429,462
2,406,609
10,475,728
220,989
7,262,290
16,303,379
3,598,592
35,562,128
2,391,441
2,918,022
1,800,000
1,260
–
47,821,722
4,046
83,644,488
4,038,938
8,270,689
768,946
5,482,454
4,500,000
3,078,796
9,184,461
939,820
9,044,440
5,609,621
–
6,755,456
1,010,150
8,305,843
1,257,088
12,865,862
9,985,566
9,102,935
6,457,287
10,775,088
7,940
15,004,769
9,541,986
8,504,884
7,625,097
11,687,343
108,670
468,819
80,837,798
122,392
51,264
89,718,806
4,699,925
10,434,829
11,952,687
16,652,612
16,725,380
27,160,209
2,717,195
3,465,648
3,469,125
5,702,434
Health Care (continued)
AutoCanada Inc.
Diversified Royalty Corporation
Dollarama Inc.
Encompass Compliance
Corporation
Foot Locker Inc.
Gaming Nation Inc.
Linamar Corporation
Magna International Inc.
NYX Gaming Group Limited
Skechers U.S.A. Inc. ‘A’
Sleep Country Canada
Holdings Inc.
Consumer Staples (7.6%)
443,212 AGT Food and Ingredients Inc.
340,606 Alimentation Couche-Tard
Inc. ‘B’
137,000 Aritzia Inc.*
667,188 Clearwater Seafoods Inc.
Energy (21.9%)
618,200 Buried Hill Energy (Cyprus)
Public Company Limited*
1,066,712 Canadian Energy Services &
Technology Corporation
448,124 Canadian Natural
Resources Limited
181,110 Lonestar West Inc.
1,596,157 Parex Resources Inc.
9,148,770 Petrowest Corporation ‘A’
1,543,676 Precision Drilling Corporation
300,700 Primeline Energy Holdings Inc.
707,300 Secure Energy Services Inc.
420,850 Seven Generations
Energy Limited
428,631 Suncor Energy Inc.
5,002,087 Tamarack Valley Energy Limited
6,464,960 Tidewater Midstream and
Infrastructure Limited
1,291,276 Whitecap Resources Inc.
3,638,692 Yangarra Resources Limited
769,231 Savaria Corporation*
1,187,291 TSO3 Inc.
Industrials (5.2%)
191,178 Boyd Group Income Fund
176,000 Eguana Technologies Inc.
Warrants August 7, 2017*
253,700 Magellan Aerospace
Corporation
377,924 New Flyer Industries Inc.
Information Technology (12.7%)
245,515 CGI Group Inc. ‘A’
4,421,000 DealNet Capital Corporation
2,287,500 DealNet Capital Corporation
Warrants February 18, 2017*
3,649,392 Espial Group Inc.
243,953 Kinaxis Inc.
825,365 RDM Corporation
8,890,532 Real Matters Inc. ‘A’*
103,366 The Descartes Systems
Group Inc.
36,000 Voice Mobility
International Inc.
1,285 Xplore Technologies
Corporation
1,038,480
32,442
8,614,612
5,536,235
14,494,902
472,759
17,350,629
4,886,954
9,021,793
298,431
6,156,472
18,794,321
74,255
26,576,014
2,790,375
8,459,344
29,318
6,556,671
11,445,821
15,190,068
20,929,100
13,290,443
15,610,741
18,057,534
325,975
793,950
9,088,878
12,972,118
9,127,604
141,088,621
9,729,765
14,152,385
4,584,752
144,274,595
1,008,385
1,838,533
2,158,600
1,396,538
694,848
111,265
8,638,166
8,564,000
Financials (11.0%)
872,542 Acasta Enterprises Inc. ‘A’
436,271 Acasta Enterprises Inc.
Warrants September 8, 2020
95,863 Bank of Nova Scotia
387,510 Guardian Capital Group
Limited ‘A’
123,377 Intact Financial Corporation
544,809 Manulife Financial Corporation
1,463,920 Payfirma Corporation*
631,000 Payfirma Corporation
Warrants April 28, 2018*
186,556 Royal Bank of Canada
670,428 Tricon Capital Group Inc.
1,208,000 Westaim Corporation
No. of Shares
Materials (13.6%)
232,362
1,669,902
479,500
316,904
4,090,909
2,045,455
250,068
87,254
6,187,921
104,705
6,664,396
6,540,212
9,564,901
11,167,045
1,893,000
8,699,599
11,701,075
10,084,415
2,181,241
–
13,461,141
5,812,888
3,434,831
66,787,359
6,310
15,159,540
6,208,163
3,261,600
72,635,044
3,286,000
5,901,123
–
6,990,295
1,774,759
9,400,105
–
8,787
AirBoss of America Corporation
Asanko Gold Inc.
Ceapro Inc.
Detour Gold Corporation
Diamcor Mining Inc.*
Diamcor Mining Inc.
Warrants August 31, 2019*
Endeavour Mining Corporation
Global Atomic
Fuel Corporation*
Interfor Corporation
Lundin Mining Corporation
OceanaGold Corporation
SEMAFO Inc.
Tahoe Resources Inc.
Western Copper and
Gold Corporation
Zazu Metals Corporation
Real Estate (4.1%)
189,483 Colliers International
Group Inc.
866,600 Milestone Apartments Real
Estate Investment Trust
Telecommunication Services (0.5%)
91,927 Manitoba Telecom
Services Inc.
Utilities (0.9%)
304,780 Boralex Inc. ‘A’
Health Care (4.5%)
3,100,000 Ceapro Inc.*
1,550,000 Ceapro Inc.
Warrants July 13, 2018*
1,846,779 CRH Medical Corporation
175,750 Nobilis Health Corporation
Warrants May 13, 2017
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
19
AGF Canadian Growth Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
81,459
81,459
Corporate Bond (0.0%)
CAD
146,667 Eguana Technologies Inc.
Subordinated Secured
Debentures 3.000% Series 2
August 7, 2018*
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (92.0%)
(918,801)
510,106,085
–
606,698,302
* 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
September 30, 2016 attributable to AGF Canadian Growth Equity Class (the
“Fund”).
20
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Canadian Growth Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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.
September 30, 2015
(%)
Canadian Equity
United States Equity
Canadian Fixed Income
International Equity
85.6
2.8
0.0
0.0
Summary of Investment Portfolio
As at September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
As at September 30, 2016, the total fair value of private and/or restricted
securities held within the Fund represented approximately $63,261,000
(September 30, 2015 – $28,146,000).
Portfolio by Country
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
September 30, 2016
(%)
Canada
United States
United Kingdom
89.1
2.9
0.0
September 30, 2015
(%)
Canada
United States
United Kingdom
85.6
2.8
0.0
Portfolio by Sector
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
September 30, 2015
(%)
Financials
Energy
Industrials
Consumer Discretionary
Consumer Staples
Materials
Information Technology
Health Care
Utilities
Corporate Bonds
24.3
11.0
10.3
9.7
9.3
8.5
8.5
5.8
1.0
0.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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.
As at September 30, 2016, the Fund did not hold significant cash and
cash equivalents. As at September 30, 2015, 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 $167,000.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 25 percent change in
benchmarks (September 30, 2015 – 20 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at September 30, 2016 and
2015, with all other variables held constant, is included in the following
table. Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Portfolio by Asset Mix
September 30, 2016
(%)
Canadian Equity
United States Equity
Canadian Fixed Income
International Equity
89.1
2.9
0.0
0.0
Benchmark
S&P/TSX Composite Index
Blended Benchmark
September 30,
2016
September 30,
2015
174,001
138,032
123,175
107,305
The Blended Benchmark is composed of 60% S&P/TSX Composite
Index and 40% S&P/TSX Small Cap Index.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
21
AGF Canadian Growth Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION 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 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 September 30,
2016 and 2015, were as follows:
September 30, 2015
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
494,383
–
–
–
494,383
–
–
5,543
–
–
–
5,543
–
–
22,481
122
–
–
22,603
–
–
522,407
122
–
–
522,529
–
–
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
The following tables reconcile the Fund’s level 3 fair value
measurements for the periods ended September 30, 2016 and 2015.
September 30, 2016
September 30, 2016
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
20,182
–
20,182
3.1
September 30, 2015
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
16,471
–
16,471
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
As at September 30, 2016 and 2015, 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 $404,000 (September 30,
2015 – $329,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’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
–
–
Debt
Instruments
Total
122 22,603
–
2,192
(74)
(74)
–
–
33
33
–
81
15,309
40,063
15,309
September 30, 2015
2.8
** Includes both monetary and non-monetary instruments, as applicable
22
($’000)
($’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, 2015
Equities
Debt
Instruments
Total
9,950
16,822
(1,575)
(9,751)
(3,836)
122
–
–
–
–
10,072
16,822
(1,575)
(9,751)
(3,836)
10,871
22,481
–
122
10,871
22,603
7,230
During the period ended September 30, 2015, investments of
approximately $9,751,000 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 from time to time depending on company specific factors and
economic or market conditions. As at September 30, 2016 and 2015, if
the value of the level 3 investments increased or decreased by
10 percent, Net Assets would have increased or decreased, respectively,
by approximately $4,006,000 (September 30, 2015 – $2,260,000).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
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
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 9)
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)
September 30,
2016
September 30,
2015
$
$
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 9)
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
104,429
–
373
–
557
12
–
–
–
–
–
615
105,986
101,184
–
23
–
22
318
–
–
–
–
–
615
102,162
$
$
–
–
–
–
35
68
143
25
166
–
–
437
105,549
85,046
$
$
–
–
–
–
34
85
61
28
–
–
–
208
101,954
92,333
$
$
$
$
$
$
$
$
$
91,494
–
5,347
–
1,283
–
5,032
2,393
–
$
$
$
$
$
$
$
$
$
91,412
–
2,704
–
313
–
5,094
2,431
–
$
$
$
$
$
$
$
$
$
19.05
–
20.66
–
10.52
–
15.25
19.08
–
$
$
$
$
$
$
$
$
$
17.25
–
18.51
–
9.32
–
14.99
18.18
–
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
23
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
For the periods ended September 30,
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 9)
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
24
STATEMENTS OF CASH FLOWS
2016
$
–
3
1,756
2015
$
10,532
12,291
–
17,151
7
2,749
(16,455)
3,452
–
–
–
–
–
–
–
(1)
12,290
(1)
3,451
1,824
1,976
150
24
15
6
–
26
1
1
2
–
218
–
141
22
12
–
–
24
1
1
2
(1)
226
–
–
2,267
–
2,404
(20)
2,247
(12)
2,392
$
10,043
$
1,059
$
$
$
$
$
$
$
$
$
8,799
–
404
–
128
–
486
226
–
$
$
$
$
$
$
$
$
$
981
–
(66)
–
(15)
–
116
43
–
$
$
$
$
$
$
$
$
$
1.76
–
2.06
–
1.48
–
1.50
1.79
–
$
$
$
$
$
$
$
$
$
0.18
–
(0.61)
–
(0.96)
–
0.33
0.30
–
For the periods ended September 30,
2016
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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
10,043
ANNUAL REPORT 2016
$
–
1,059
1
(1,756)
(2,749)
(10,532)
(5,505)
16,455
(10,111)
15,020
14,011
–
–
(17,151)
–
–
–
–
–
–
–
–
–
–
(1)
1
(17)
7,254
(1)
5
1,518
(310)
(363)
16,019
26,375
(22,613)
(6,904)
(27,766)
(1,754)
–
(1)
350
23
373
(236)
260
23
$
$
$
$
–
373
373
$
–
23
23
$
$
$
3
–
–
$
$
$
7
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2015
$
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
For the periods ended September 30,
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
2016
91,412
–
2,704
–
313
–
5,094
2,431
–
101,954
8,799
–
404
–
128
–
486
226
–
10,043
2015
$
92,770
–
1,416
–
–
–
5,943
2,862
–
102,991
981
–
(66)
–
(15)
–
116
43
–
1,059
11,705
–
1,654
–
200
–
370
541
–
14,470
21,487
–
1,359
–
219
–
740
427
–
24,232
2,325
–
1,334
–
1,044
–
91
87
–
4,881
2,018
–
597
–
110
–
157
61
–
2,943
–
–
–
–
–
–
158
50
–
208
–
–
–
–
–
–
162
51
–
213
(18,449)
–
(641)
–
(92)
–
(731)
(820)
–
(20,733)
(21,854)
–
(372)
–
(1)
–
(1,418)
(677)
–
(24,322)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(4,298)
–
(108)
–
(310)
–
(38)
(5)
–
(4,759)
2015
$
(5,933)
(3,990)
–
(230)
–
–
–
(166)
(204)
–
(4,590)
(1,524)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(398)
(117)
–
(515)
–
–
–
–
–
–
(440)
(132)
–
(572)
3,595
(1,037)
91,494
–
5,347
–
1,283
–
5,032
2,393
–
91,412
–
2,704
–
313
–
5,094
2,431
–
105,549
$
101,954
25
AGF Canadian Large Cap Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
85,046,450
104,428,897
85,046,450
104,428,897
Equity Fund (98.9%)
1,959,266 AGF Canadian Large Cap
Dividend Fund –
Series S Units*
Total Portfolio (98.9%)
* 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
September 30, 2016 attributable to the Fund.
26
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Canadian Large Cap Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, 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
September 30, 2016
(%)
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
September 30, 2015
(%)
Canada
United States
Japan
Germany
South Korea
United Kingdom
France
China
Netherlands
Switzerland
Belgium
Bermuda
Australia
Austria
Singapore
Hong Kong
Spain
Israel
Norway
Italy
Thailand
Brazil
Foreign Exchange Forward Contracts
52.3
24.4
5.7
2.3
2.2
2.1
1.6
1.3
1.2
1.1
1.0
0.8
0.5
0.4
0.4
0.4
0.4
0.4
0.3
0.3
0.1
0.1
(0.0)
Portfolio by Sector
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
September 30, 2015
(%)
Financials
Energy
Industrials
Consumer Staples
Health Care
Consumer Discretionary
Information Technology
Materials
Telecommunication Services
ETFs – International Equity
ETFs – United States Equity
Utilities
Short-Term Investments
Foreign Exchange Forward Contracts
31.3
11.9
11.4
9.7
7.1
7.1
6.1
4.5
4.3
2.8
2.1
0.8
0.2
(0.0)
Portfolio by Asset Mix
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
September 30, 2015
(%)
Canadian Equity
United States Equity
International Equity
Short-Term Investments
Foreign Exchange Forward Contracts
52.1
24.4
22.6
0.2
(0.0)
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
27
AGF Canadian Large Cap Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the Underlying Fund as at
September 30, 2016 and 2015 are included in the following tables:
September 30, 2016
AGF Canadian Large Cap Dividend Fund
September 30, 2015
AGF Canadian Large Cap Dividend Fund
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
104,429
7.0
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
101,184
6.5
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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
benchmarks (September 30, 2015 – 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 September 30, 2016 and
2015, 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 ($’000)
Benchmark
S&P/TSX Composite Index
S&P/TSX 60 Index
September 30,
2016
September 30,
2015
20,029
21,119
15,512
15,789
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
As at September 30, 2016 and 2015, the Fund did not have a significant
direct exposure to currency risk.
The amounts in the following tables are based on the fair value of the
Underlying Fund’s financial instruments (including cash and cash
equivalents) as well as the underlying principal amounts of foreign
exchange forward contracts, as applicable. Other financial assets
(including cash collateral received for securities on loan, dividends and
interest receivables and receivables for investments sold) and financial
liabilities (including payable for cash collateral under securities lending
and payable for investments purchased) that are denominated in foreign
currencies do not expose the Underlying Fund to significant currency
risk.
Currencies to which the Underlying Fund had exposure as at
September 30, 2016 and 2015, were as follows:
September 30, 2016
($’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
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
% of
Underlying
Fund’s
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
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
% of
Underlying
Fund’s
Net Assets
September 30, 2015
($’000)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
South Korean Won
Swiss Franc
Hong Kong Dollar
Australian Dollar
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
443,186
101,749
75,996
32,881
18,731
17,710
12,973
8,586
6,150
899
574
524
(38,130) 405,056
– 101,749
–
75,996
–
32,881
–
18,731
–
17,710
–
12,973
–
8,586
–
6,150
–
899
–
574
–
524
26.2
6.6
4.9
2.1
1.2
1.1
0.8
0.6
0.4
0.1
0.0
0.0
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, if the Canadian dollar had
strengthened or weakened by 2 percent, in relation to all currencies, with all
28
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
other variables held constant, the Fund’s Net Assets would have decreased
or increased, respectively, by approximately $937,000 (September 30,
2015 – $886,000) as a result of the Underlying Fund’s exposure to currency
risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
104,429
104,429
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
104,429
104,429
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
101,184
101,184
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
101,184
101,184
–
–
September 30, 2015
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
29
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
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 9)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
September 30,
2016
September 30,
2015
$
$
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 9)
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
30
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
99,384
–
1,368
–
86
265
–
–
134
–
–
–
101,237
114,285
–
711
–
842
963
–
–
411
–
–
–
117,212
$
$
–
–
–
–
47
167
284
–
–
–
–
498
100,739
66,331
$
$
–
–
–
–
94
160
413
–
–
–
–
667
116,545
81,007
$
$
$
$
$
$
$
$
$
97,887
–
2,852
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
103,804
–
12,683
58
–
–
–
–
–
$
$
$
$
$
$
$
$
$
24.64
–
28.99
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
22.33
–
25.97
31.32
–
–
–
–
–
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
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
2,543
118
12,741
2015
$
3,682
29
15,323
(225)
15,177
–
7,151
26,185
–
–
–
17
–
–
40
23
15,217
385
26,610
2,625
3,393
333
31
12
19
–
25
1
10
2
–
292
193
348
31
10
32
–
23
1
4
2
–
388
269
256
3,799
305
4,806
(42)
3,757
(6)
4,800
$
11,460
$
21,810
$
$
$
$
$
$
$
$
$
10,459
–
996
5
–
–
–
–
–
$
$
$
$
$
$
$
$
$
19,826
–
1,975
9
–
–
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
Income taxes (paid) recovered *
11,460
2015
$
21,810
4
(129)
(12,741)
(15,323)
225
(33,555)
(7,151)
(32,449)
61,670
–
–
65,033
–
–
277
(106)
–
–
–
–
–
–
–
–
(47)
7
27,300
(3)
(15)
31,667
–
–
63,014
65,768
(89,653)
(26,639)
(98,718)
(32,950)
(4)
$
$
661
711
1,368
129
$
$
(1,283)
1,865
711
$
1,353
15
1,368
$
467
244
711
$
$
$
119
2,629
–
$
$
$
29
3,302
–
* Included as part of Cash Flows from Operating Activities
$
$
$
$
$
$
$
$
$
2.39
–
2.29
2.72
–
–
–
–
–
$
$
$
$
$
$
$
$
$
3.74
–
3.89
4.79
–
–
–
–
–
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
31
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
For the periods ended September 30,
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
32
2016
103,804
–
12,683
58
–
–
–
–
–
2015
$
115,332
–
11,714
49
–
–
–
–
–
116,545
127,095
10,459
–
996
5
–
–
–
–
–
11,460
19,826
–
1,975
9
–
–
–
–
–
21,810
44,315
–
736
–
–
–
–
–
–
45,051
51,704
–
1,707
–
–
–
–
–
–
53,411
17,499
–
379
–
–
–
–
–
–
17,878
13,314
–
467
–
–
–
–
–
–
13,781
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(58,912)
–
(11,867)
(63)
–
–
–
–
–
(70,842)
(80,486)
–
(3,063)
–
–
–
–
–
–
(83,549)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(19,278)
–
(75)
–
–
–
–
–
–
(19,353)
2015
$
(27,266)
(15,886)
–
(117)
–
–
–
–
–
–
(16,003)
(32,360)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(15,806)
(10,550)
97,887
–
2,852
–
–
–
–
–
–
103,804
–
12,683
58
–
–
–
–
–
100,739
$
116,545
AGF China Focus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Average
Cost ($)
No. of Shares
Fair
Value ($)
Consumer Discretionary (6.4%)
No. of Shares
Average
Cost ($)
Fair
Value ($)
3,636,582
7,302,124
1,150,115
4,786,697
1,236,731
8,538,855
1,328,595
1,414,722
880,185
2,208,780
913,379
2,328,101
Telecommunication Services (8.5%)
2,744,000 China ZhengTong Auto
Services Holdings Limited
42,000 Ctrip.com International
Limited ADR
250,000 Fuyao Glass Industry Group
Company Limited
1,700,000 Shanghai Jin Jiang International
Hotels (Group) Company
Limited ‘H’
125,000 Shenzhou International Group
Holdings Limited
1,137,123
2,462,058
2,566,095
882,274
896,464
873,084
687,233
468,264
6,906,468
1,141,723
6,428,638
Commissions and other portfolio
transaction costs (Note 2)
1,935,371
1,948,541
Total Portfolio (98.7%)
1,923,353
2,079,180
4,002,533
2,035,566
2,440,750
4,476,316
950,248
4,060,656
1,046,326
4,191,393
5,946,800
7,294,343
3,473,059
3,552,028
1,771,750
2,035,312
3,760,638
4,429,886
2,160,243
1,776,565
23,899,959
3,807,774
2,261,932
28,618,994
1,763,575
1,864,646
736,944
1,033,894
963,774
793,760
1,252,047
2,952,765
1,742,625
3,570,279
7,766,583
4,476,760
1,054,483
13,297,826
10,409,339
5,016,202
18,374,133
33,799,674
1,137,277
1,275,982
577,405
574,414
977,638
1,654,495
452,810
3,662,348
2,669,095
2,740,136
550,493
6,534,138
Consumer Staples (1.9%)
800,000 China Mengniu Dairy
Company Limited
460,000 China Mobile Limited
1,870,000 China Telecom
Corporation Limited
2,220,788
Energy (4.4%)
Utilities (2.3%)
680,000 China Gas Holdings Limited
2,000,000 Huaneng Renewables
Corporation Limited ‘H’
(222,555)
66,331,044
–
99,384,164
ADR – American Depository Receipt
2,130,000 China Petroleum & Chemical
Corporation ‘H’
1,500,000 CNOOC Limited
Financials (28.4%)
120,000 AIA Group Limited
7,000,000 Bank of China Limited ‘H’
7,500,000 China Construction Bank
Corporation ‘H’
1,050,000 China Life Insurance Company
Limited ‘H’
420,000 China Pacific Insurance Group
Company Limited ‘H’
5,400,000 Industrial & Commercial Bank
of China Limited ‘H’
560,000 Ping An Insurance (Group)
Company of China
Limited ‘H’
1,680,000 Value Partners Group Limited
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
September 30, 2016 attributable to AGF China Focus Class (the “Fund”).
Health Care (1.9%)
800,000 Phoenix Healthcare Group
Company Limited
Industrials (3.5%)
750,000 China Communications
Construction Company
Limited ‘H’
1,120,000 China Shipping Development
Company Limited
2,230,000 SITC International Holdings
Company Limited
Information Technology (33.6%)
75,000 Alibaba Group Holding
Limited ADR
21,000 Baidu Inc. ADR
510,000 Tencent Holdings Limited
Materials (1.3%)
355,000 Anhui Conch Cement Company
Limited ‘H’
Real Estate (6.5%)
60,000 Cheung Kong Property
Holdings Limited
600,000 China Overseas Land &
Investment Limited
750,000 China Resources Land Limited
882,000 Shenzhen Investment Limited
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
33
AGF China Focus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
September 30, 2016
(%)
China
Hong Kong
93.1
5.6
September 30, 2015
(%)
China
Hong Kong
94.9
3.2
Portfolio by Sector
September 30, 2016
(%)
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
September 30, 2015
(%)
Financials
Information Technology
Telecommunication Services
Industrials
Consumer Staples
Energy
Consumer Discretionary
Health Care
Materials
Utilities
39.8
20.2
11.4
7.1
4.6
4.2
3.5
3.3
2.3
1.7
Portfolio by Asset Mix
September 30, 2016
(%)
International Equity
98.7
September 30, 2015
(%)
International Equity
98.1
34
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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 55 percent change in
benchmark (September 30, 2015 – 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 September 30, 2016 and 2015, 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 ($’000)
Benchmark
MSCI China Free Index
September 30,
2016
September 30,
2015
54,419
84,777
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
payable for cash collateral under securities lending and payable for
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
September 30, 2016
Reconciliation of Level 3 Fair Value Measurement (Note 4)
The following tables reconcile the Fund’s level 3 fair value
measurements for the periods ended September 30, 2016 and 2015. The
level 3 positions held in the Fund were not considered significant.
($’000)
Hong Kong Dollar
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
82,196
18,589
–
–
82,196
18,589
81.6
18.5
September 30, 2016
($’000)
September 30, 2015
($’000)
Hong Kong Dollar
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
109,018
5,735
–
–
109,018
5,735
93.5
4.9
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $2,016,000 (September 30,
2015 – $2,295,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
99,384
–
–
–
99,384
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
99,384
–
–
–
99,384
–
–
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
1,139
–
(522)
–
(537)
–
–
–
–
–
1,139
–
(522)
–
(537)
(80)
–
–
–
(80)
–
–
September 30, 2015
($’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, 2015
Equities
Debt
Instruments
Total
–
–
–
1,059
–
–
–
–
–
–
–
–
–
1,059
–
80
1,139
–
–
80
1,139
80
During the period ended September 30, 2015, investments of
approximately $1,059,000 were transferred into level 3 from level 1 as a
listed security ceased to be actively traded.
September 30, 2015
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
113,146
–
–
–
113,146
–
–
–
–
–
–
–
–
–
1,139
–
–
–
1,139
–
–
114,285
–
–
–
114,285
–
–
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
35
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
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 9)
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)
September 30,
2016
September 30,
2015
$
$
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 9)
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
36
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
57,650
–
41
–
–
28
–
–
192
–
–
–
57,911
47,916
–
–
–
12
110
–
–
162
–
–
–
48,200
$
$
–
–
–
–
12
33
40
–
–
–
–
85
57,826
55,292
$
$
5
–
–
–
13
50
5
–
10
–
–
83
48,117
47,001
$
$
$
$
$
$
$
$
$
25,798
–
2,728
8,708
20,592
–
–
–
–
$
$
$
$
$
$
$
$
$
29,118
–
4,332
–
14,667
–
–
–
–
$
$
$
$
$
$
$
$
$
10.05
–
11.18
10.20
13.36
–
–
–
–
$
$
$
$
$
$
$
$
$
9.61
–
10.51
–
12.41
–
–
–
–
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
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
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 9)
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
2016
$
2,483
2
247
2015
$
1,443
4,175
–
$
2,448
1
420
(874)
1,995
–
–
–
–
–
–
–
–
4,175
–
1,995
683
745
71
21
12
4
–
23
1
2
2
–
89
–
65
19
11
–
–
20
1
1
2
–
93
–
–
908
–
957
(54)
854
(30)
927
3,321
$
1,068
$
$
$
$
$
$
$
$
$
1,184
–
209
519
1,409
–
–
–
–
$
$
$
$
$
$
$
$
$
520
–
146
–
402
–
–
–
–
$
$
$
$
$
$
$
$
$
0.42
–
0.56
0.37
1.63
–
–
–
–
$
$
$
$
$
$
$
$
$
0.17
–
0.35
–
0.42
–
–
–
–
For the periods ended September 30,
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
2016
$
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 and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
$
–
1,068
–
(247)
(420)
(1,443)
(15,726)
874
(10,499)
10,207
7,576
(2,453)
–
(2,432)
–
(30)
(16)
–
–
–
–
–
–
–
–
(1)
(17)
(6,389)
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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
3,321
2015
(1)
(9)
(3,859)
–
–
19,689
14,970
(13,254)
6,435
(11,216)
3,754
–
$
$
46
(5)
41
–
$
$
(105)
100
(5)
$
–
41
41
$
(5)
–
(5)
$
$
$
2
–
–
$
$
$
1
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
37
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
For the periods ended September 30,
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
38
2016
29,118
–
4,332
–
14,667
–
–
–
–
2015
$
29,581
–
4,569
–
9,206
–
–
–
–
48,117
43,356
1,184
–
209
519
1,409
–
–
–
–
3,321
520
–
146
–
402
–
–
–
–
1,068
4,127
–
544
8,965
5,611
–
–
–
–
19,247
6,871
–
458
–
5,923
–
–
–
–
13,252
1,002
–
436
–
523
–
–
–
–
1,961
1,436
–
809
–
690
–
–
–
–
2,935
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(7,799)
–
(2,275)
(776)
(1,217)
–
–
–
–
(12,067)
(6,900)
–
(1,650)
–
(1,554)
–
–
–
–
(10,104)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(1,834)
–
(518)
–
(401)
–
–
–
–
(2,753)
2015
$
(2,390)
–
–
–
–
–
–
–
–
(2,390)
6,388
3,693
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
9,709
4,761
25,798
–
2,728
8,708
20,592
–
–
–
–
29,118
–
4,332
–
14,667
–
–
–
–
57,826
$
48,117
AGF Diversified Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
55,292,269
57,649,563
55,292,269
57,649,563
Balanced Fund (99.7%)
3,373,292 AGF Diversified Income Fund –
Series S Units*
Total Portfolio (99.7%)
* 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
September 30, 2016 attributable to the Fund.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
39
AGF Diversified Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, 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
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
September 30, 2015
(%)
Corporate Bonds
Government Bonds
High Yield Bonds
Financials
Health Care
Information Technology
Consumer Discretionary
Industrials
Consumer Staples
Energy
Materials
Utilities
Telecommunication Services
Emerging Markets Bonds
Foreign Exchange Forward Contracts
38.3
13.8
12.9
8.6
4.5
4.0
3.5
2.8
2.8
1.8
1.2
1.2
1.1
0.8
(0.3)
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
September 30, 2015
(%)
Portfolio by Asset Mix
United States
Canada
Switzerland
Japan
China
Germany
France
United Kingdom
Mexico
Spain
Cayman Islands
Italy
Denmark
New Zealand
Luxembourg
Australia
Belgium
Taiwan
Ireland
Sweden
Netherlands
Foreign Exchange Forward Contracts
44.6
36.8
3.3
3.2
1.3
1.1
0.8
0.8
0.8
0.7
0.6
0.5
0.5
0.5
0.4
0.3
0.3
0.3
0.2
0.2
0.1
(0.3)
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
September 30, 2015
(%)
Canadian Fixed Income
United States Fixed Income
United States Equity
International Equity
International Fixed Income
Canadian Equity
Foreign Exchange Forward Contracts
33.6
27.4
17.2
11.1
4.8
3.2
(0.3)
40
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
As at September 30, 2016, the total fair value of private and/or restricted
securities held within the Underlying Fund represented approximately
$0 (September 30, 2015 – $39,000).
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the Underlying Fund as at
September 30, 2016 and 2015 are included in the following tables:
September 30, 2016
AGF Diversified Income Fund
September 30, 2015
AGF Diversified Income Fund
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
57,650
24.2
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
47,916
18.5
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, the Underlying Fund invested in
debt instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Underlying Fund’s Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
September 30,
2016
September 30,
2015
19.6
(0.0)
2.4
19.5
14.7
7.7
2.3
7.4
13.4
0.5
5.3
22.0
11.7
12.3
2.4
4.9
Interest Rate Risk
As at September 30, 2016 and 2015, the Underlying Fund’s exposure to
debt instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
September 30,
2016
September 30,
2015
3,791
10,292
38,490
112,765
–
7,695
26,646
136,170
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at September 30, 2016 and 2015, 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 $619,000 (September 30, 2015 – $561,000) as a result of
the Underlying Fund’s exposure to interest rate risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 20 percent change in
benchmarks (September 30, 2015 – 10 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at September 30, 2016 and
2015, with all other variables held constant, is included in the following
table. Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Effective June 1, 2016, the Fund’s blended benchmark was changed
from 50% FTSE TMX Canada Universe Bond Index, 20% Bloomberg
Barclays U.S. Corporate High-Yield Bond Index (local$) (formerly,
Barclays Capital U.S. Corporate High-Yield Bond Index (local$)), 15%
S&P/TSX Composite Index, 5% FTSE TMX Canada High Yield Bond
Index, 5% MSCI All Country World Index (local$) and 5% MSCI World
REIT Net Index (local$) (the “Old Blended Benchmark”) to the Blended
Benchmark (as defined below) to better reflect the investment
opportunity set of the Fund.
Impact on Net Assets ($’000)
Benchmark
FTSE TMX Canada Universe Bond Index
Blended Benchmark
Old Blended Benchmark
September 30,
2016
September 30,
2015
10,916
11,930
N/A
4,276
N/A
5,529
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 September 30, 2016 and 2015, 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 and
interest receivables and receivables for investments sold) and financial
liabilities (including payable for cash collateral under securities lending
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
41
AGF Diversified Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
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
September 30, 2016 and 2015, 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 September 30, 2016 and
2015.
September 30, 2016
September 30, 2016
($’000)
United States Dollar
Hong Kong Dollar
Euro Currency
Peruvian New Sol
Mexican Peso
Indonesian Rupiah
Swiss Franc
Australian Dollar
Norwegian Krone
Singapore Dollar
Pound Sterling
Japanese Yen
($’000)
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
September 30, 2015
($’000)
United States Dollar
Euro Currency
Hong Kong Dollar
Swiss Franc
New Zealand Dollar
Pound Sterling
Mexican Peso
Japanese Yen
Danish Krone
Australian Dollar
Swedish Krona
Foreign
% of
Exchange
Underlying
Financial Forward
Fund’s
Instruments Contracts Total** Net Assets
130,851
8,482
3,338
3,267
2,374
2,014
1,962
8,217
1,270
910
423
(85,482)
–
–
–
–
–
–
(6,705)
–
–
–
45,369
8,482
3,338
3,267
2,374
2,014
1,962
1,512
1,270
910
423
17.5
3.3
1.3
1.3
0.9
0.8
0.8
0.6
0.5
0.4
0.2
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 2
Level 3
Total
–
–
–
57,650
57,650
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
57,650
57,650
–
–
Level 1
Level 2
Level 3
Total
–
–
–
47,916
47,916
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
47,916
47,916
–
–
September 30, 2015
($’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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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 September 30, 2016 and 2015, 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 $280,000
(September 30, 2015 – $262,000) 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.
42
Level 1
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
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
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 9)
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)
September 30,
2016
September 30,
2015
$
$
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 9)
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
31,337
–
424
–
9
152
–
–
–
–
–
15
31,937
41,712
–
151
–
554
577
–
–
–
–
–
15
43,009
$
$
–
–
–
–
14
28
110
–
–
–
–
152
31,785
26,271
$
$
–
–
–
–
18
72
336
–
–
–
–
426
42,583
39,048
$
$
$
$
$
$
$
$
$
27,736
–
3,961
–
88
–
–
–
–
$
$
$
$
$
$
$
$
$
34,349
–
7,721
–
513
–
–
–
–
$
$
$
$
$
$
$
$
$
18.22
–
19.88
–
12.14
–
–
–
–
$
$
$
$
$
$
$
$
$
16.31
–
17.62
–
10.55
–
–
–
–
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
43
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
For the periods ended September 30,
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 9)
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
44
STATEMENTS OF CASH FLOWS
2016
$
865
6
1,687
2015
$
2,402
4,960
–
336
1
2,783
(4,229)
(1,109)
–
–
–
–
–
–
–
(1)
4,959
2
(1,107)
844
1,230
127
23
16
4
–
21
1
–
2
–
111
–
128
22
13
–
–
20
–
–
2
–
153
–
–
1,149
–
1,568
(72)
1,077
(10)
1,558
$
3,882
$
(2,665)
$
$
$
$
$
$
$
$
$
3,174
–
644
–
64
–
–
–
–
$
$
$
$
$
$
$
$
$
(2,224)
–
(481)
–
40
–
–
–
–
$
$
$
$
$
$
$
$
$
1.77
–
1.90
–
1.37
–
–
–
–
$
$
$
$
$
$
$
$
$
(0.91)
–
(1.00)
–
0.35
–
–
–
–
For the periods ended September 30,
2016
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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
3,882
ANNUAL REPORT 2016
$
(2,665)
–
(2)
(1,687)
(2,783)
(2,402)
(6,783)
4,229
(2,704)
22,537
20,888
(865)
–
(336)
–
–
–
–
–
–
–
–
–
–
–
(4)
(44)
14,634
(9)
(9)
16,609
–
–
9,709
7,189
(24,070)
(14,361)
(24,095)
(16,906)
–
$
$
273
151
424
2
$
$
(297)
446
151
$
–
424
424
$
–
151
151
$
$
$
6
–
–
$
$
$
1
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2015
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
For the periods ended September 30,
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
2016
34,349
–
7,721
–
513
–
–
–
–
2015
$
50,499
–
10,096
–
1,277
–
–
–
–
42,583
61,872
3,174
–
644
–
64
–
–
–
–
3,882
(2,224)
–
(481)
–
40
–
–
–
–
(2,665)
1,930
–
777
–
–
–
–
–
–
2,707
2,247
–
1,670
–
124
–
–
–
–
4,041
6,644
–
261
–
88
–
–
–
–
6,993
3,439
–
634
–
243
–
–
–
–
4,316
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(10,183)
–
(5,442)
–
(577)
–
–
–
–
(16,202)
(14,031)
–
(3,501)
–
(921)
–
–
–
–
(18,453)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(8,178)
–
–
–
–
–
–
–
–
(8,178)
2015
$
(14,680)
(5,581)
–
(697)
–
(250)
–
–
–
–
(6,528)
(16,624)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(10,798)
(19,289)
27,736
–
3,961
–
88
–
–
–
–
34,349
–
7,721
–
513
–
–
–
–
31,785
$
42,583
45
AGF Emerging Markets Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
26,270,982
31,337,035
26,270,982
31,337,035
Equity Fund (98.6%)
2,227,224 AGF Emerging Markets Fund –
Series S Units*
Total Portfolio (98.6%)
* 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
September 30, 2016 attributable to the Fund.
46
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Emerging Markets Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, 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
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 Country
September 30, 2016
(%)
September 30, 2015
(%)
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
Financials
Consumer Discretionary
Information Technology
Consumer Staples
Energy
Materials
Health Care
Telecommunication Services
Industrials
Utilities
24.6
16.3
15.8
12.3
8.5
6.7
6.7
4.1
2.4
1.3
September 30, 2015
(%)
India
China
South Korea
Taiwan
Mexico
Brazil
Thailand
South Africa
Hong Kong
United Kingdom
Czech Republic
Indonesia
Peru
Turkey
Malaysia
Argentina
United Arab Emirates
Chile
United States
Israel
Jersey
Canada
14.5
14.2
11.5
11.0
9.6
4.7
4.2
4.1
3.8
2.9
2.4
2.2
2.0
1.8
1.6
1.5
1.4
1.3
1.2
1.1
0.9
0.8
Portfolio by Asset Mix
September 30, 2016
(%)
International Equity
Canadian Equity
97.5
1.3
September 30, 2015
(%)
International Equity
United States Equity
Canadian Equity
96.7
1.2
0.8
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the Underlying Fund as at
September 30, 2016 and 2015 are included in the following tables:
September 30, 2016
AGF Emerging Markets Fund
September 30, 2015
AGF Emerging Markets Fund
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
31,337
5.0
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
41,712
6.5
47
AGF Emerging Markets Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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, 2015 – 15 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmark, as at September 30, 2016 and
2015, 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 ($’000)
Benchmark
MSCI Emerging Markets Index
September 30,
2016
September 30,
2015
6,806
5,702
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
As at September 30, 2016 and 2015, the Fund did not have a significant
direct exposure to currency risk.
The amounts in the following tables are based on the fair value of the
Underlying Fund’s financial instruments (including cash and cash
equivalents) as well as the underlying principal amounts of foreign
exchange forward contracts, as applicable. Other financial assets
(including cash collateral received for securities on loan, dividends and
interest receivables and receivables for investments sold) and financial
liabilities (including payable for cash collateral under securities lending
and payable for investments purchased) that are denominated in foreign
currencies do not expose the Underlying Fund to significant currency
risk.
Currencies to which the Underlying Fund had exposure as at
September 30, 2016 and 2015, were as follows:
September 30, 2016
($’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
September 30, 2015
($’000)
Hong Kong Dollar
Indian Rupee
South Korean Won
New Taiwanese Dollar
United States Dollar
Mexican Peso
Brazilian Real
Thai Baht
South African Rand
Pound Sterling
Czech Koruna
Indonesian Rupiah
New Turkish Lira
Malaysian Ringgit
United Arab Emirates Dinar
Chilean Peso
Foreign
% of
Exchange
Underlying
Financial Forward
Fund’s
Instruments Contracts Total** Net Assets
117,110
93,063
73,742
71,084
67,691
43,883
28,802
26,882
26,681
19,052
15,767
14,681
11,985
10,597
9,078
8,438
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
117,110
93,063
73,742
71,084
67,691
43,883
28,802
26,882
26,681
19,052
15,767
14,681
11,985
10,597
9,078
8,438
18.2
14.5
11.5
11.1
10.5
6.8
4.5
4.2
4.2
3.0
2.5
2.3
1.9
1.6
1.4
1.3
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $615,000
(September 30, 2015 – $830,000) as a result of the Underlying Fund’s
exposure to currency risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
48
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
31,337
31,337
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
31,337
31,337
–
–
Level 1
Level 2
Level 3
Total
–
–
–
41,712
41,712
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
41,712
41,712
–
–
September 30, 2015
($’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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
49
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
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 9)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
September 30,
2016
September 30,
2015
$
$
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 9)
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
50
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
122,190
–
81
–
31
498
–
–
142
284
–
–
123,226
162,128
–
153
–
39
1,312
–
–
298
78
–
–
164,008
$
$
–
–
–
–
54
158
254
8
–
–
–
474
122,752
132,482
$
$
–
–
–
–
131
211
277
15
–
–
–
634
163,374
182,072
$
$
$
$
$
$
$
$
$
112,885
–
8,107
–
–
–
1,713
47
–
$
$
$
$
$
$
$
$
$
151,245
–
8,895
–
–
–
2,924
310
–
$
$
$
$
$
$
$
$
$
23.55
–
29.68
–
–
–
8.75
11.48
–
$
$
$
$
$
$
$
$
$
25.43
–
31.48
–
–
–
10.34
13.12
–
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
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
5,723
5
(22,054)
2015
$
9,652
(6,674)
–
6,921
6
(15,262)
5,128
(3,207)
–
–
–
187
–
–
232
126
(6,361)
56
(2,919)
3,376
4,811
603
42
12
39
–
28
1
5
2
–
413
588
654
42
11
42
–
26
1
2
2
–
602
910
312
5,421
477
7,580
(215)
5,206
(46)
7,534
$
(11,567)
$
(10,453)
$
$
$
$
$
$
$
$
$
(10,853)
–
(493)
–
–
–
(209)
(12)
–
$
$
$
$
$
$
$
$
$
(9,698)
–
(381)
–
–
–
(227)
(147)
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
Income taxes (paid) recovered *
(11,567)
2015
$
(10,453)
–
309
22,054
15,262
(9,652)
(49,796)
(5,128)
(72,283)
78,146
–
–
131,871
–
–
156
68
–
(206)
–
–
(17)
–
–
–
(77)
(53)
29,005
(54)
(93)
59,482
(136)
(213)
7,683
12,071
(36,624)
(29,077)
(71,865)
(60,007)
–
(309)
(72)
153
81
(525)
987
153
$
$
$
$
(75)
156
81
$
$
153
–
153
$
$
$
5
5,286
–
$
$
$
6
6,065
–
* Included as part of Cash Flows from Operating Activities
$
$
$
$
$
$
$
$
$
(2.02)
–
(1.81)
–
–
–
(0.90)
(1.19)
–
$
$
$
$
$
$
$
$
$
(1.42)
–
(1.11)
–
–
–
(0.89)
(1.82)
–
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
51
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
For the periods ended September 30,
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
52
2016
151,245
–
8,895
–
–
–
2,924
310
–
2015
$
213,511
–
14,088
–
–
–
3,198
3,013
–
163,374
233,810
(10,853)
–
(493)
–
–
–
(209)
(12)
–
(11,567)
(9,698)
–
(381)
–
–
–
(227)
(147)
–
(10,453)
5,684
–
1,124
–
–
–
129
3
–
6,940
7,800
–
1,031
–
–
–
803
46
–
9,680
894
–
425
–
–
–
–
–
–
1,319
2,351
–
604
–
–
–
157
20
–
3,132
–
–
–
–
–
–
67
3
–
70
–
–
–
–
–
–
69
15
–
84
(31,791)
–
(1,805)
–
–
–
(926)
(210)
–
(34,732)
(55,883)
–
(6,307)
–
–
–
(638)
(2,567)
–
(65,395)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(2,294)
–
(39)
–
–
–
(79)
(41)
–
(2,453)
2015
$
(28,856)
(6,836)
–
(140)
–
–
–
(206)
(16)
–
(7,198)
(59,697)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(193)
(6)
–
(199)
–
–
–
–
–
–
(232)
(54)
–
(286)
(40,622)
(70,436)
112,885
–
8,107
–
–
–
1,713
47
–
151,245
–
8,895
–
–
–
2,924
310
–
122,752
$
163,374
AGF European Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares
Average
Cost ($)
Fair
Value ($)
3,067,492
544,012
3,611,504
3,250,549
644,755
3,895,304
936,631
2,142,143
4,683,780
1,254,447
1,523,488
2,483,502
822,863
1,663,646
3,650,271
1,243,732
1,325,723
3,204,490
744,415
1,529,315
2,976,695
1,263,580
2,142,805
2,880,712
2,172,946
26,734,459
1,691,391
1,623,205
2,643,402
1,249,870
2,128,216
1,238,414
2,671,375
25,156,598
1,699,027
1,995,091
1,620,992
583,684
372,040
1,902,094
2,670,877
1,266,170
532,131
372,337
417,344
890,101
2,276,015
510,019
622,745
2,512,263
746,052
2,635,390
2,812,139
1,015,757
17,063,632
972,233
2,828,819
3,609,475
859,969
18,659,132
2,300,261
1,348,084
5,613,156
985,437
2,627,790
12,874,728
3,059,081
1,255,125
2,542,223
1,188,879
376,104
8,421,412
2,187,189
2,422,477
635,164
1,454,709
6,699,539
3,234,307
2,461,785
654,361
1,516,960
7,867,413
538,312
492,657
4,424,304
596,525
1,039,501
690,059
3,265,718
10,554,419
1,923,673
677,874
1,051,554
858,550
2,005,749
7,010,057
585,992
448,289
904,734
1,490,726
871,776
1,320,065
Denmark (3.2%)
No. of Shares
20,665
7,032
34,867
36,036
30,962
13,151
7,355
France (20.5%)
16,675
128,759
8,050
21,349
27,300
42,983
ArcelorMittal SA
AXA SA
BNP Paribas SA
Capgemini SA
Carrefour SA
Compagnie de Saint-Gobain SA
Compagnie Generale des
Etablissements Michelin ‘B’
Danone SA
Orange SA
Pernod Ricard SA
Sanofi
Societe Generale SA
TOTAL SA
Germany (15.2%)
9,770
23,811
13,700
24,200
16,000
2,860
8,584
64,350
3,974
23,720
23,504
46,000
Allianz SE
BASF SE
Daimler AG
Deutsche Telekom AG
ElringKlinger AG
Henkel AG & Company
KGaA Preferred
Hugo Boss AG
METRO AG
Muenchener RueckversicherungsGesellschaft AG
SAP SE
Siemens AG
TUI AG
Italy (6.8%)
523,100
66,430
873,840
1,091,588
123,164
Enel SpA
Eni SpA
Intesa Sanpaolo SpA
Telecom Italia SpA
UniCredit SpA
Fair
Value ($)
485,256
506,109
3,008,148
3,595,564
3,663,404
4,617,809
522,588
16,398,878
608,647
473,864
2,469,379
3,725,257
3,194,456
4,280,064
870,581
15,622,248
806,371
2,216,939
2,207,247
275,656
2,518,661
795,829
1,897,903
1,050,187
3,255,485
1,900,651
1,475,747
3,297,333
2,159,944
922,027
3,281,822
2,729,737
1,479,935
1,296,751
1,474,800
2,525,015
37,568,040
742,766
2,826,736
1,239,801
268,107
2,579,688
591,746
1,949,064
983,502
3,309,769
2,237,778
1,220,188
2,450,742
2,098,317
468,353
2,870,570
2,381,881
1,334,775
1,518,588
1,351,121
1,814,725
34,238,217
Switzerland (12.7%)
84,910 Danske Bank AS
22,842 GN Store Nord AS
102,484
59,600
54,114
9,680
39,000
56,520
11,656
Average
Cost ($)
ABB Limited
BB Adamant Biotech AG
LafargeHolcim Limited
Nestle SA
Novartis AG
Roche Holding AG
Swiss Re Limited
United Kingdom (27.9%)
8,729
317,237
434,500
18,019
337,120
152,493
51,852
180,571
118,465
349,157
512,541
2,642,000
113,000
36,577
65,570
70,141
160,356
163,560
63,871
583,322
AstraZeneca PLC
BAE Systems PLC
Barclays PLC
Bovis Homes Group PLC
BP PLC
Centrica 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 (99.5%)
(513,896)
132,482,029
–
122,190,446
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
September 30, 2016 attributable to AGF European Equity Class (the
“Fund”).
Netherlands (6.4%)
36,400
151,991
30,000
64,351
Akzo Nobel NV
ING Groep NV
Refresco Group NV
RELX NV
Spain (5.7%)
34,250 Atresmedia Corporacion de
Medios de Comunicacion SA
242,523 Banco Bilbao Vizcaya
Argentaria SA
22,220 Ebro Foods SA
39,000 Gas Natural SDG SA
48,810 Indra Sistemas SA
150,965 Telefonica SA
Sweden (1.1%)
12,113 Hennes & Mauritz AB ‘B’
92,018 Telefonaktiebolaget
LM Ericsson
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
53
AGF European Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
September 30, 2015
(%)
Financials
Energy
Industrials
Materials
Consumer Discretionary
Telecommunication Services
Health Care
Utilities
Consumer Staples
Information Technology
33.1
12.0
9.9
9.7
8.5
7.7
7.4
5.2
3.8
1.9
Portfolio by Country
September 30, 2016
(%)
Portfolio by Asset Mix
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
September 30, 2016
(%)
International Equity
99.5
September 30, 2015
(%)
International Equity
99.2
September 30, 2015
(%)
United Kingdom
France
Germany
Italy
Spain
Switzerland
Sweden
Denmark
Norway
Netherlands
Finland
32.7
18.0
11.3
10.7
8.8
8.3
2.1
2.1
1.9
1.8
1.5
Portfolio by Sector
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
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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 55 percent change in
benchmark (September 30, 2015 – 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 September 30, 2016 and
2015, 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 ($’000)
Benchmark
MSCI Europe Index
54
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
September 30,
2016
September 30,
2015
71,652
137,539
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
payable for cash collateral under securities lending and payable for
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
Euro Currency
Pound Sterling
Swiss Franc
Danish Krone
Swedish Krona
United States Dollar
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
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
Percentage of
Net Assets (%)
September 30, 2015
($’000)
Euro Currency
Pound Sterling
Swiss Franc
Swedish Krona
Danish Krone
Norwegian Krone
United States Dollar
87,832
53,572
10,798
3,451
3,429
3,032
670
–
–
–
–
–
–
–
87,832
53,572
10,798
3,451
3,429
3,032
670
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
122,190
–
–
–
122,190
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
122,190
–
–
–
122,190
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
162,128
–
–
–
162,128
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
162,128
–
–
–
162,128
–
–
September 30, 2015
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
53.8
32.8
6.6
2.1
2.1
1.9
0.4
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $2,448,000 (September 30,
2015 – $3,256,000).
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.
ANNUAL REPORT 2016
55
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
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 9)
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)
September 30,
2016
September 30,
2015
$
$
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 9)
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
56
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
2,919
–
119
–
38
–
–
–
23
–
–
–
3,099
–
–
–
–
–
–
–
–
–
–
–
–
–
$
$
–
–
–
–
–
2
13
–
96
–
–
111
2,988
2,904
$
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
1,356
–
123
–
707
–
–
–
802
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
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
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
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 9)
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
2016
$
30
–
2
2015
$
–
–
–
15
47
–
–
–
–
–
–
–
–
–
–
–
47
–
–
4
–
13
10
11
–
–
3
–
–
1
–
5
–
–
–
–
–
–
–
–
–
–
–
–
–
–
47
–
–
(40)
7
–
–
$
40
$
–
$
$
$
$
$
$
$
$
$
12
–
1
–
21
–
–
–
6
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.21
–
0.48
–
0.38
–
–
–
0.20
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
For the periods ended September 30,
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
2016
$
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
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
$
$
40
2015
$
–
–
–
(2)
–
(15)
(2,949)
–
–
150
–
(7)
–
–
–
(23)
–
–
–
–
–
–
–
–
–
–
2
(2,804)
–
–
–
–
–
3,076
–
(153)
2,923
–
–
–
–
119
–
119
–
–
–
$
$
–
119
119
$
$
–
–
–
$
$
$
–
–
–
$
$
$
–
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
57
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
For the periods ended September 30,
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
58
2016
–
–
–
–
–
–
–
–
–
2015
$
–
–
–
–
–
–
–
–
–
–
–
12
–
1
–
21
–
–
–
6
40
–
–
–
–
–
–
–
–
–
–
1,308
–
122
–
525
–
–
–
800
2,755
–
–
–
–
–
–
–
–
–
–
49
–
–
–
310
–
–
–
–
359
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(13)
–
–
–
(149)
–
–
–
(4)
(166)
–
–
–
–
–
–
–
–
–
–
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
–
–
–
–
–
–
–
–
–
–
2015
$
–
–
–
–
–
–
–
–
–
–
2,948
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,988
–
1,356
–
123
–
707
–
–
–
802
–
–
–
–
–
–
–
–
–
2,988
$
–
AGF Fixed Income Plus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
2,903,664
2,919,291
2,903,664
2,919,291
Fixed Income Fund (97.7%)
234,293 AGF Fixed Income Plus Fund—
Series S Units*
Total Portfolio (97.7%)
* 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
September 30, 2016 attributable to the Fund.
.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
59
AGF Fixed Income Plus Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 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
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
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
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the Underlying Fund as at
September 30, 2016 are included in the following table:
AGF Fixed Income Plus Fund
Percentage of Underlying Fund’s Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
September 30,
2016
29.0
10.7
26.4
22.2
4.7
2.5
0.7
3.1
Interest Rate Risk
As at September 30, 2016, the Underlying Fund’s exposure to debt
instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
September 30,
2016
15,167
176,632
168,872
950,737
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
Portfolio by Asset Mix
September 30, 2016
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
2,919
0.2
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016, the Underlying Fund invested in debt
instruments, foreign exchange forward contracts, preferred shares,
As at 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 $51,000 as a result of the Underlying Fund’s exposure to
interest rate risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 20 percent change in
benchmark, using historical correlation between the return of the
Mutual Fund Shares as compared to the return of the Fund’s
benchmark, as at September 30, 2016, with all other variables held
constant, is included in the following table. Regression analysis has
been utilized to estimate the historical correlation. The analysis uses
36 monthly data points, unless the inception of the Fund is less than
three years, in which case since inception data has been used. The
returns of the other series of the Fund are substantially similar to that of
the Mutual Fund Shares, save for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
FTSE TMX Canada Universe Bond Index
60
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
September 30,
2016
535
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 September 30, 2016, the Fund did not have a significant direct
exposure to currency risk.
There were no significant transfers between levels 1 and 2 during the
period ended September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the period ended September 30, 2016, the Fund did not hold
financial instruments within level 3 of the fair value hierarchy.
The amounts in the following table 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 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
September 30, 2016, were as follows:
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 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 $3,000 as a result of the
Underlying Fund’s exposure to currency risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following table illustrates the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
2,919
2,919
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,919
2,919
–
–
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
61
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
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 9)
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)
September 30,
2016
September 30,
2015
$
$
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 9)
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
62
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
10,279
–
402
–
580
–
–
–
–
–
–
–
11,261
–
–
–
–
–
–
–
–
–
–
–
–
–
$
$
–
–
–
–
3
12
118
2
575
–
–
710
10,551
10,082
$
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
6,844
–
1,486
–
1,331
–
–
521
369
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
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
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
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 9)
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
2016
$
–
1
1
2015
$
–
–
–
197
199
–
–
–
–
–
–
–
–
–
–
–
199
–
–
33
–
14
10
11
–
–
3
–
–
1
–
9
–
–
–
–
–
–
–
–
–
–
–
–
–
–
81
–
–
(30)
51
–
–
$
148
$
–
$
$
$
$
$
$
$
$
$
106
–
8
–
28
–
–
(1)
7
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.32
–
0.17
–
0.44
–
–
(0.04)
0.44
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
For the periods ended September 30,
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
2016
$
148
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
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
2015
$
–
–
–
(1)
–
(197)
(9,595)
–
–
89
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
3
12
(9,541)
–
–
–
(3)
–
10,195
–
(249)
9,943
–
–
–
–
402
–
402
–
–
–
$
$
$
$
–
402
402
$
$
–
–
–
$
$
$
1
–
–
$
$
$
–
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
63
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
For the periods ended September 30,
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
64
2016
–
–
–
–
–
–
–
–
–
2015
$
–
–
–
–
–
–
–
–
–
–
–
106
–
8
–
28
–
–
(1)
7
148
–
–
–
–
–
–
–
–
–
–
4,192
–
1,100
–
949
–
–
527
363
7,131
–
–
–
–
–
–
–
–
–
–
2,797
–
378
–
486
–
–
–
–
3,661
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1
–
1
–
–
–
–
–
–
–
–
–
–
(234)
–
–
–
(132)
–
–
–
(1)
(367)
–
–
–
–
–
–
–
–
–
–
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(17)
–
–
–
–
–
–
–
–
(17)
2015
$
–
–
–
–
–
–
–
–
–
–
10,409
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(6)
–
(6)
–
–
–
–
–
–
–
–
–
–
10,551
–
6,844
–
1,486
–
1,331
–
–
521
369
–
–
–
–
–
–
–
–
–
10,551
$
–
AGF Global Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
10,082,201
10,279,050
10,082,201
10,279,050
Equity Fund (97.4%)
381,129 AGF Global Dividend Fund –
Series S Units*
Total Portfolio (97.4%)
* 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
September 30, 2016 attributable to the Fund.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
65
AGF Global Dividend Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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.
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the Underlying Fund as at
September 30, 2016 are included in the following table:
Summary of Investment Portfolio
As at 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.
September 30, 2016
Portfolio by Country
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
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
September 30, 2016
(%)
International Equity
United States Equity
Canadian Equity
48.6
41.6
1.8
66
AGF Global Dividend Fund
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
10,279
0.5
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016, the Underlying Fund had no significant
investments in debt instruments and derivatives. Accordingly, the
Underlying Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Underlying Fund’s financial assets and liabilities are
non-interest bearing, accordingly, the Underlying Fund is not subject to
significant amounts of risk due to fluctuations in the prevailing levels of
market interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 55 percent change in
benchmarks, using historical correlation between the return of the
Mutual Fund Shares as compared to the return of the Fund’s
benchmarks, as at September 30, 2016, with all other variables held
constant, is included in the following table. Regression analysis has
been utilized to estimate the historical correlation. The analysis uses 36
monthly data points, unless the inception of the Fund is less than three
years, in which case since inception data has been used. The returns of
the other series of the Fund are substantially similar to that of the
Mutual Fund Shares, save for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
MSCI World Index
MSCI All Country World Index
September 30, 2016
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 September 30, 2016, the Fund did not have a significant direct
exposure to currency risk.
The amounts in the following table 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 and
interest receivables and receivables for investments sold) and financial
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
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
September 30, 2016, were as follows:
September 30, 2016
($’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
1,162,791
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 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 $224,000 as a result of the
Underlying Fund’s exposure to currency risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following table illustrates the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
10,279
10,279
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
10,279
10,279
–
–
There were no significant transfers between levels 1 and 2 during the
period ended September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the period ended 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.
ANNUAL REPORT 2016
67
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
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 9)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
September 30,
2016
September 30,
2015
$
$
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 9)
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
68
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
784,441
–
4,496
–
79
–
–
–
1,781
574
–
35
791,406
227,180
–
2,169
–
102
511
–
–
626
94
–
35
230,717
$
$
–
–
–
–
276
956
859
14
1,033
–
–
3,138
788,268
651,099
$
$
–
–
–
–
103
130
209
10
–
–
–
452
230,265
144,005
$
$
$
$
$
$
$
$
$
745,475
–
17,562
18,234
3,004
–
3,001
402
590
$
$
$
$
$
$
$
$
$
216,360
–
6,591
3,730
814
–
2,284
289
197
$
$
$
$
$
$
$
$
$
16.48
–
19.38
20.10
11.04
–
19.36
23.99
11.05
$
$
$
$
$
$
$
$
$
14.98
–
17.35
17.79
9.76
–
19.12
22.94
9.77
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
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
15,423
10
15,462
2015
$
50,167
81,062
–
7,219
8
29,233
(2,998)
33,462
–
–
–
74
–
–
55
2,111
83,247
29
33,546
10,493
6,221
896
42
21
76
–
33
1
4
2
–
1,253
1,686
471
24
12
56
1
28
1
3
2
–
717
773
637
15,144
75
8,384
(233)
14,911
(218)
8,166
$
68,336
$
25,380
$
$
$
$
$
$
$
$
$
65,218
–
1,309
1,221
231
–
257
37
63
$
$
$
$
$
$
$
$
$
24,287
–
544
435
(41)
–
141
17
(3)
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
Income taxes (paid) recovered *
68,336
2015
$
(2)
25,380
39
(15,462)
(29,233)
(50,167)
(384,700)
2,998
(18,365)
73,617
–
–
75,685
–
–
(1,155)
4
–
(480)
–
–
24
–
–
–
173
826
(309,014)
(15)
(29)
56,488
(143)
(100)
376,474
127,656
(64,992)
311,339
(183,240)
(55,684)
2
(39)
2,325
2,169
4,496
$
$
$
$
804
1,404
2,169
$
3,396
1,100
4,496
$
2,169
–
2,169
$
$
$
9
12,595
–
$
$
$
8
6,468
–
* Included as part of Cash Flows from Operating Activities
$
$
$
$
$
$
$
$
$
2.13
–
2.27
2.37
1.02
–
1.96
2.39
1.08
$
$
$
$
$
$
$
$
$
1.49
–
1.51
1.97
(0.62)
–
1.42
1.88
(0.95)
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
69
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
For the periods ended September 30,
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
70
2016
216,360
–
6,591
3,730
814
–
2,284
289
197
230,265
2015
$
248,637
–
6,066
3,843
–
–
1,661
179
–
260,386
65,218
–
1,309
1,221
231
–
257
37
63
68,336
24,287
–
544
435
(41)
–
141
17
(3)
25,380
169,669
–
2,621
13,345
861
–
741
33
472
187,742
63,766
–
895
1,096
1,153
–
569
59
200
67,738
352,942
–
10,774
4,428
1,840
–
645
143
329
371,101
59,296
–
675
–
–
–
341
47
–
60,359
–
–
–
–
–
–
83
2
–
85
–
–
–
–
–
–
57
1
–
58
(53,367)
–
(3,624)
(4,373)
(373)
–
(768)
(81)
(138)
(62,724)
(58,083)
–
(1,414)
(1,644)
(298)
–
(310)
(4)
–
(61,753)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(5,347)
–
(109)
(117)
(369)
–
(27)
(3)
(333)
(6,305)
2015
$
489,899
(121,543)
–
(175)
–
–
–
(24)
–
–
(121,742)
(55,340)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(214)
(18)
–
(232)
–
–
–
–
–
–
(151)
(10)
–
(161)
558,003
(30,121)
745,475
–
17,562
18,234
3,004
–
3,001
402
590
216,360
–
6,591
3,730
814
–
2,284
289
197
788,268
$
230,265
AGF Global Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares/
Units
Average
Cost ($)
Fair
Value ($)
8,994,642
10,308,665
6,717,296
6,998,499
13,869,987
18,788,166
56,482 iShares MSCI South Korea
Capped ETF
103,264 Kia Motors Corporation
2,809 Samsung Electronics
Company Limited
27,195 Samsung Electronics Company
Limited GDR
Austria (0.9%)
154,177 Voestalpine AG
Belgium (2.4%)
109,333 Anheuser-Busch InBev SA/NV
Brazil (0.2%)
155,773 Petroleo Brasileiro SA –
Petrobras Preferred
59,194 Vale SA ADR
30,792 Vale SA Preferred ‘A’
936,357
490,524
307,392
1,734,273
852,744
427,127
191,296
1,471,167
Canada (1.4%)
56,661 Agrium Inc.
216,321 Goldcorp Inc.
6,344,509
5,484,667
11,829,176
6,741,568
4,688,415
11,429,983
8,585,707
12,029,314
20,615,021
8,635,973
14,834,090
23,470,063
8,941,098
7,876,003
318,993
5,907,921
6,499,870
5,804,256
18,531,040
440,220
6,108,879
7,746,200
5,975,682
20,270,981
15,874,027
11,392,070
10,911,303
38,177,400
19,175,509
16,601,973
11,218,092
46,995,574
Czech Republic (1.0%)
173,495 Komercni Banka AS
France (2.6%)
3,625
90,562
84,692
96,150
Spain (0.7%)
890,205 Banco Santander SA
Switzerland (2.2%)
Arkema SA
BNP Paribas SA
Schneider Electric SE
TOTAL SA
53,259 Roche Holding AG
397,406 PTT Exploration and Production
Public Company
Limited (Foreign)
211,124
1,017,603
219,378
140,933
438,497
125,661
209,762
298,887
133,283
115,979
191,661
133,255
134,379
206,243
22,554
38,025
Hong Kong (0.8%)
742,144 AIA Group Limited
5,388,114
6,471,038
7,154,320
6,393,811
3,366,494
2,932,150
18,869,049
5,377,040
23,945,359
5,155,108
8,386,355
11,702,021
18,116,605
8,578,064
13,555,159
28,611,000
16,877,277
79,328,347
20,945,842
100,790,532
9,231,305
7,913,884
17,145,189
10,047,804
9,262,338
19,310,142
1,143,782
4,810,057
5,953,839
139,384
5,030,788
5,170,172
3,793,881
3,644,060
157,656
173,180
1,867,153
5,818,690
1,974,403
5,791,643
240,712
247,343
85,924
159,971
204,476
191,479
71,826
Israel (0.8%)
105,923 Teva Pharmaceutical Industries
Limited ADR
Italy (0.4%)
1,007,870 Intesa Sanpaolo SpA
Japan (12.8%)
1,176,242 Astellas Pharma Inc.
136,294 Canon Inc.
178,329 FUJIFILM Holdings
Corporation
823,929 iShares MSCI Japan ETF
30,104 Keyence Corporation
350,883 Nippon Telegraph and
Telephone Corporation
180,489
222,780
83,407
67,825
158,107
331,854
281,627
96,331
203,844
Netherlands (2.4%)
620,353 ING Groep NV
281,723 iShares MSCI Netherlands ETF
British American Tobacco PLC
Lloyds Banking Group PLC
Persimmon PLC
Royal Dutch Shell PLC ‘B’
The Sage Group PLC
United States (49.5%)
Germany (6.0%)
136,470 Hannover Rueck SE
108,734 Henkel AG & Company KGaA
325,493 iShares MSCI Germany ETF
Fair
Value ($)
3,729,008
5,463,240
4,307,524
5,184,877
3,568,250
5,347,126
15,880,594
28,641,092
25,777,702
40,617,229
6,066,734
5,178,354
15,636,754
17,333,431
1,209,978
1,218,803
13,644,875
1,270,892
6,917,140
4,470,608
4,108,549
30,412,064
17,699,240
943,937
6,770,797
4,785,870
5,502,919
35,702,763
9,531,076
12,729,559
20,024,630
6,030,040
8,353,173
25,352,342
13,349,970
2,210,166
24,261,638
10,397,780
13,572,729
24,794,051
7,101,090
8,204,394
31,594,648
15,258,630
2,064,456
31,546,981
3,334,226
4,539,655
6,435,092
8,112,280
17,351,092
4,171,321
8,483,706
10,045,052
19,261,054
7,924,534
9,875,132
21,608,565
5,295,961
9,324,700
11,776,715
27,201,113
15,296,014
16,573,171
23,662,969
20,160,962
20,127,366
28,415,094
10,341,616
6,840,990
3,969,952
12,267,137
18,623,410
7,208,644
2,274,036
316,094,356
14,949,755
7,964,869
6,374,277
15,373,122
23,558,079
7,389,524
3,527,443
389,921,625
Thailand (0.1%)
United Kingdom (4.5%)
China (3.0%)
5,307,367 CNOOC Limited
233,132 iShares MSCI China ETF
Average
Cost ($)
South Korea (5.1%)
Australia (1.3%)
856,974 Brambles Limited
No. of Shares/
Units
AbbVie 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.
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)
(526,973)
–
Norway (0.7%)
76,519 Fred. Olsen Energy ASA
344,218 Global X MSCI Norway ETF
Singapore (0.7%)
702,746 Keppel Corporation Limited
161,445 Keppel Real Estate
Investment Trust
538,657 Singapore Press
Holdings Limited
Total Portfolio (99.5%)
651,098,931
784,440,794
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
September 30, 2016 attributable to AGF Global Equity Class (the “Fund”).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
71
AGF Global Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
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
September 30, 2015
(%)
United States
Japan
Germany
South Korea
United Kingdom
France
China
Netherlands
Switzerland
Belgium
Australia
Canada
Austria
Singapore
Hong Kong
Spain
Israel
Norway
Italy
Thailand
Brazil
48.5
12.8
5.1
5.1
4.8
3.6
2.9
2.8
2.6
2.2
1.2
1.1
1.0
0.9
0.9
0.9
0.8
0.7
0.6
0.1
0.1
72
Portfolio by Sector
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
September 30, 2015
(%)
Financials
Industrials
Consumer Staples
Information Technology
Health Care
Energy
ETFs – International Equity
Consumer Discretionary
Telecommunication Services
Materials
25.4
15.0
14.9
10.4
8.9
7.6
6.3
4.5
3.2
2.5
Portfolio by Asset Mix
September 30, 2016
(%)
United States Equity
International Equity
Canadian Equity
49.5
48.6
1.4
September 30, 2015
(%)
International Equity
United States Equity
Canadian Equity
49.1
48.5
1.1
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
September 30, 2016 and 2015 are included in the following tables:
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
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
9,262
5,031
14,834
11,218
4,308
13,555
3.8
3.3
0.5
0.2
0.1
0.1
September 30, 2015
Global X MSCI Norway ETF
iShares MSCI Netherlands ETF
iShares MSCI China ETF
iShares MSCI France ETF
iShares MSCI Japan ETF
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
1,482
2,792
4,317
570
5,275
1.8
1.3
0.2
0.1
0.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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.
Currencies to which the Fund had exposure as at September 30, 2016 and
2015, were as follows:
September 30, 2016
($’000)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
Hong Kong Dollar
South Korean Won
Australian Dollar
Czech Koruna
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
496,975
99,993
87,235
35,703
17,333
15,107
10,621
10,323
7,926
5,972
1,227
1,046
141
–
–
–
–
–
–
–
–
–
–
–
–
–
Percentage of
Net Assets (%)
496,975
99,993
87,235
35,703
17,333
15,107
10,621
10,323
7,926
5,972
1,227
1,046
141
63.0
12.7
11.1
4.5
2.2
1.9
1.3
1.3
1.0
0.8
0.2
0.1
0.0
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
Percentage of
Net Assets (%)
September 30, 2015
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The impact on Net Assets of the Fund due to a 50 percent change in
benchmark (September 30, 2015 – 70 percent), using historical correlation
between the return of the Mutual Fund Shares as compared to the return
of the Fund’s benchmark, as at September 30, 2016 and 2015, with all
other variables held constant, is included in the following table. Regression
analysis has been utilized to estimate the historical correlation. The
analysis uses 36 monthly data points, unless the inception of the Fund is
less than three years, in which case since inception data has been
used. The returns of the other series of the Fund are substantially similar to
that of the Mutual Fund Shares, save for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
MSCI All Country World Index
September 30,
2016
September 30,
2015
377,390
158,647
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 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)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
South Korean Won
Swiss Franc
Hong Kong Dollar
Australian Dollar
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
136,737
34,153
25,471
11,020
6,289
5,980
4,373
2,859
2,062
302
193
176
–
–
–
–
–
–
–
–
–
–
–
–
136,737
34,153
25,471
11,020
6,289
5,980
4,373
2,859
2,062
302
193
176
59.4
14.8
11.1
4.8
2.7
2.6
1.9
1.2
0.9
0.1
0.1
0.1
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $15,792,000 (September 30,
2015 – $4,592,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
73
AGF Global Equity Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
783,222
–
–
–
783,222
–
–
1,219
–
–
–
1,219
–
–
–
–
–
–
–
–
–
784,441
–
–
–
784,441
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
226,878
–
–
–
226,878
–
–
302
–
–
–
302
–
–
–
–
–
–
–
–
–
227,180
–
–
–
227,180
–
–
September 30, 2015
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
74
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
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
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 9)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
September 30,
2016
September 30,
2015
$
$
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 9)
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
155,369
–
4,691
–
264
29
–
–
157
17
–
1,100
161,627
129,780
–
10,686
–
206
–
–
–
335
1
–
1,100
142,108
$
$
–
–
–
–
58
117
242
–
29
–
–
446
161,181
148,062
$
$
–
–
–
–
55
155
137
–
–
–
–
347
141,761
168,323
$
$
$
$
$
$
$
$
$
124,601
–
4,106
1,986
–
30,488
–
–
–
$
$
$
$
$
$
$
$
$
115,967
–
3,409
207
–
22,178
–
–
–
$
$
$
$
$
$
$
$
$
18.77
–
21.25
22.49
–
26.09
–
–
–
$
$
$
$
$
$
$
$
$
15.72
–
17.58
18.26
–
21.18
–
–
–
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
75
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
For the periods ended September 30,
Income
Dividends
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 9)
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
76
STATEMENTS OF CASH FLOWS
2016
$
2,929
56
(16,795)
2015
$
45,850
32,040
–
2,385
34
(5,971)
(58,584)
(62,136)
–
–
–
72
–
–
10
(36)
32,076
133
(61,993)
3,267
2,543
622
45
12
12
–
23
1
–
2
–
389
267
435
35
11
8
–
21
1
–
2
(2)
292
236
193
4,833
198
3,780
(575)
4,258
(390)
3,390
$
27,818
$
(65,383)
$
$
$
$
$
$
$
$
$
21,103
–
741
232
–
5,742
–
–
–
$
$
$
$
$
$
$
$
$
(52,622)
–
(1,407)
(86)
–
(11,268)
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
Income taxes (paid) recovered *
$
27,818
3.02
–
3.74
4.07
–
4.96
–
–
–
$
$
$
$
$
$
$
$
$
(11.36)
–
(13.26)
(10.80)
–
(15.07)
–
–
–
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
$
(13)
(65,383)
(126)
16,795
5,971
(45,850)
(49,227)
58,584
(44,688)
52,693
–
–
58,418
(11)
–
178
(212)
–
(16)
–
–
(1)
–
–
(692)
3
(38)
2,343
5
31
11,896
–
–
19,983
37,565
(28,334)
(8,351)
(39,740)
(2,175)
13
126
(6,008)
10,686
4,691
9,721
839
10,686
$
$
$
4,298
393
4,691
$
736
9,950
10,686
$
$
$
58
2,843
–
$
$
$
32
1,928
–
* Included as part of Cash Flows from Operating Activities
$
$
$
$
$
$
$
$
$
2015
$
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
For the periods ended September 30,
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
2016
115,967
–
3,409
207
–
22,178
–
–
–
2015
$
105,964
–
2,875
111
–
22,345
–
–
–
141,761
131,295
21,103
–
741
232
–
5,742
–
–
–
27,818
(52,622)
–
(1,407)
(86)
–
(11,268)
–
–
–
(65,383)
9,311
–
548
1,746
–
6,672
–
–
–
18,277
6,785
–
78
226
–
21,379
–
–
–
28,468
1,952
–
194
–
–
–
–
–
–
2,146
84,029
–
3,072
–
–
–
–
–
–
87,101
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(22,346)
–
(785)
(199)
–
(4,104)
–
–
–
(27,434)
(24,461)
–
(1,183)
(44)
–
(10,278)
–
–
–
(35,966)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(1,386)
–
(1)
–
–
–
–
–
–
(1,387)
2015
$
(3,728)
–
(26)
–
–
–
–
–
–
(3,754)
(8,398)
75,849
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
19,420
10,466
124,601
–
4,106
1,986
–
30,488
–
–
–
115,967
–
3,409
207
–
22,178
–
–
–
161,181
$
141,761
77
AGF Global Resources Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares
Average
Cost ($)
Fair
Value ($)
3,557,917
949,090
2,267,358
1,660,716
113,980
4,148,948
1,834,554
2,388,852
1,607,898
522,640
61,981
3,790
2,002,734
19,679
3,790
1,086,798
2,600,023
1,051,116
2,542,103
1,697,294
1,693,053
1,668,159
3,382,377
465,255
2,657,271
1,492,728
1,790,195
1,833,521
1,269,380
2,327,708
148,152
1,321,481
1,809,761
2,966,641
1,454,982
2,082,508
1,661,778
945,493
2,186,478
940,194
2,216,202
115,229
766,127
898,438
3,142,925
1,019,897
2,187,175
1,360,585
973,343
2,451,176
2,352,143
3,348,725
1,215,880
34,911
2,094,031
830,863
774,977
1,691,936
192,640
6,902,807
290,291
43,121
3,575,849
322,663
741,860
1,432,770
3,489,432
2,757,623
393,945
5,420,143
2,295,916
1,014,895
56
6,678,854
4,639,734
477,253
5,592,400
2,707,869
1,115,316
22
846
1,851,938
69,611,936
4,025
1,758,970
75,782,241
881,116
930,663
4,733,488
4,571,412
1,851,308
1,802,043
2,255,012
2,488,479
1,176,356
2,435,943
1,893,426
7,517,814
13,023,539
885,983
1,758,117
1,600,681
7,434,339
11,679,120
Canada (47.0%)
450,940
25,857
100,668
292,345
556,000
375,000
758,000
96,949
80,648
581,569
141,119
52,303
346,937
133,736
86,574
102,365
1,097,420
147,616
1,151,844
113,463
176,148
51,560
246,037
187,542
362,600
363,472
414,583
151,985
1,612
332,328
310,253
80,028
262,412
211,490
130,918
141,199
153,553
160,991
31,382
224
84,577
160,490
No. of Shares
12,168 Air Products and
Chemicals Inc.
38,947 Anadarko Petroleum
Corporation
19,901 Chevron Corporation
13,732 Cimarex Energy Company
37,100 Continental Resources Inc.
77,960 Devon Energy Corporation
39,169 Eastman Chemical Company
18,839 Ecolab Inc.
18,506 EOG Resources Inc.
28,610 EQT Corporation
36,209 Exxon Mobil Corporation
15,799 Halliburton Company
27,530 Hess Corporation
114,060 Huntsman Corporation
54,537 Kinder Morgan Inc.
41,391 LyondellBasell Industries NV ‘A’
12,994 Monsanto Company
37,133 Noble Energy Inc.
19,469 Parsley Energy Inc.
38,400 PDC Energy Inc.
67,230 Ring Energy Inc.
8,248 Schlumberger Limited
30,366 Spectra Energy Corporation
33,892 US Concrete Inc.
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (96.4%)
Switzerland (1.5%)
United Kingdom (7.3%)
44,819
487,343
36,563
228,418
78
BHP Billiton PLC
Glencore PLC
Rio Tinto PLC
Royal Dutch Shell PLC ‘A’
3,432,176
2,468,821
1,744,946
1,081,507
5,388,955
3,461,817
2,005,784
1,931,051
2,359,949
3,819,546
816,230
2,309,687
3,027,947
2,753,388
3,605,543
1,661,673
2,286,334
854,579
3,238,773
842,321
682,919
1,634,849
2,473,119
55,976,250
3,237,475
2,687,150
2,420,769
2,529,067
4,511,554
3,477,924
3,008,411
2,348,017
2,725,784
4,146,184
930,250
1,936,646
2,434,660
1,654,947
4,380,074
1,742,252
1,741,133
855,924
3,378,408
965,816
850,961
1,703,103
2,048,262
58,114,770
(270,855)
148,061,794
–
155,368,728
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
September 30, 2016 attributable to AGF Global Resources Class (the
“Fund”).
Russia (1.1%)
4,340 Syngenta AG
2,399,999
ADR – American Depository Receipt
France (2.8%)
85,955 PJSC MMC Norilsk Nickel ADR
2,094,336
* Private and/or Restricted
Finland (0.6%)
73,555 TOTAL SA
Fair
Value ($)
United States (36.1%)
Advantage Oil and Gas Limited
Agnico Eagle Mines Limited
ARC Resources Limited
Asanko Gold Inc.
Belo Sun Mining Corporation
Buried Hill Energy (Cyprus)
Public Company Limited*
Calmena Energy Services Inc.*
Cameco Corporation
Canadian Natural
Resources Limited
Capstone Mining Corporation
Cenovus Energy Inc.
Detour Gold Corporation
Eldorado Gold Corporation
Encana Corporation
First Quantum
Minerals Limited
Goldcorp Inc.
Highland Copper Company Inc.
HudBay Minerals Inc.
Ikkuma Resources Corporation
Inter Pipeline Limited
Kelt Exploration Limited
Keyera Corporation
Kinross Gold Corporation
Lundin Mining Corporation
NuVista Energy Limited
Oryx Petroleum
Corporation Limited
Parex Resources Inc.
Petrus Resources Limited
PrairieSky Royalty Limited
Raging River Exploration Inc.
RMP Energy Inc.
Secure Energy Services Inc.
SEMAFO Inc.
Seven Generations
Energy Limited
Silver Wheaton Corporation
Spartan Energy Corporation
Suncor Energy Inc.
Tahoe Resources Inc.
Tourmaline Oil Corporation
Virginia Hills Oil Corporation
Virginia Hills Oil Corporation
Warrants April 27, 2018*
Whitecap Resources Inc.
103,267 Outokumpu Oyj
Average
Cost ($)
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Global Resources Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
September 30, 2015
(%)
Canadian Equity
United States Equity
International Equity
40.6
37.4
13.5
As at September 30, 2016, the total fair value of private and/or restricted
securities held within the Fund represented approximately $27,000
(September 30, 2015 – $1,338,000).
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
Portfolio by Country
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
September 30, 2015
(%)
Canada
United States
United Kingdom
France
Russia
Finland
Australia
40.6
37.4
8.0
3.1
1.9
0.5
0.0
Portfolio by Sector
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
September 30, 2015
(%)
Oil, Gas & Consumable Fuels
Metals & Mining
Chemicals
Energy Equipment & Services
Semiconductors & Semiconductor Equipments
48.7
22.9
13.4
6.5
0.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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 55 percent change in
benchmarks (September 30, 2015 – 75 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at September 30, 2016 and
2015, 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
September 30,
2016
September 30,
2015
29,977
111,986
36,005
128,838
The Blended Benchmark is composed of 60% MSCI World Energy Index
and 40% MSCI World Materials Index.
Portfolio by Asset Mix
September 30, 2016
(%)
Canadian Equity
United States Equity
International Equity
47.0
36.1
13.3
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
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
79
AGF Global Resources Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
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 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 September 30,
2016 and 2015, were as follows:
United States Dollar
Pound Sterling
Euro Currency
Swiss Franc
Australian Dollar
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
63,931
12,016
5,502
2,488
1
–
–
–
–
–
Percentage of
Net Assets (%)
63,931
12,016
5,502
2,488
1
39.7
7.5
3.4
1.5
0.0
September 30, 2015
($’000)
United States Dollar
Pound Sterling
Euro Currency
Australian Dollar
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
55,897
11,742
5,174
1
–
–
–
–
Percentage of
Net Assets (%)
55,897
11,742
5,174
1
39.4
8.3
3.6
0.0
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $1,679,000 (September 30,
2015 – $1,456,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
155,342
–
–
–
155,342
–
–
4
–
–
–
4
–
–
23
–
–
–
23
–
–
155,369
–
–
–
155,369
–
–
80
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
128,442
–
–
–
128,442
–
–
5
–
–
–
5
–
–
1,333
–
–
–
1,333
–
–
129,780
–
–
–
129,780
–
–
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
September 30, 2016
($’000)
September 30, 2015
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 September 30, 2016 and 2015. The
level 3 positions held in the Fund were not considered significant.
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
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 $1,246,000 were transferred from level 3 to level 1 as
these securities became actively traded.
September 30, 2015
($’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, 2015
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Equities
Debt
Instruments
Total
690
1,819
(7)
–
(2,593)
–
–
–
–
–
690
1,819
(7)
–
(2,593)
1,424
1,333
–
–
1,424
1,333
(486)
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
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 9)
Receivable for shares issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
Taxes recoverable (Note 5)
Refundable capital gains and dividend taxes (Note 5)
September 30,
2016
September 30,
2015
$
$
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 9)
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
28,666
1
644
–
4
–
–
–
241
–
–
–
29,556
29,386
6
3,089
–
87
–
–
–
157
–
–
–
32,725
$
$
–
–
–
–
4
35
69
–
–
–
–
108
29,448
28,911
$
$
–
–
16
–
4
43
2,160
–
–
–
–
2,223
30,502
28,550
$
$
$
$
$
$
$
$
$
26,590
–
2,858
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
27,926
–
2,576
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
13.90
–
14.46
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
13.72
–
14.23
–
–
–
–
–
–
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
81
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
For the periods ended September 30,
Income
Dividends
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 9)
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
82
STATEMENTS OF CASH FLOWS
2016
$
–
811
989
2015
$
–
534
292
(1,081)
719
(105)
544
1,370
(964)
11
(94)
1
13
(951)
0
29
655
127
546
289
292
106
22
12
7
–
19
1
1
2
–
48
–
85
19
11
2
–
18
1
–
2
–
45
–
–
507
–
475
(253)
254
(223)
252
$
401
$
294
$
$
$
$
$
$
$
$
$
355
–
46
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
252
–
42
–
–
–
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
Income taxes (paid) recovered *
401
0.18
–
0.24
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.13
–
0.18
–
–
–
–
–
–
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
$
–
294
(147)
(884)
672
1,070
(19,786)
(557)
(16,619)
20,309
–
–
13,234
–
–
(84)
(78)
–
–
–
–
–
–
–
–
–
(8)
1,018
–
6
(3,195)
–
–
49,876
42,852
(53,339)
(3,463)
(42,170)
682
–
$
$
(2,445)
3,089
644
147
$
$
(2,513)
5,455
3,089
$
–
644
644
$
1,203
1,886
3,089
$
$
$
726
–
–
$
$
$
456
–
–
* Included as part of Cash Flows from Operating Activities
$
$
$
$
$
$
$
$
$
2015
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
For the periods ended September 30,
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
2016
27,926
–
2,576
–
–
–
–
–
–
2015
$
28,138
–
3,501
–
–
–
–
–
–
30,502
31,639
355
–
46
–
–
–
–
–
–
401
252
–
42
–
–
–
–
–
–
294
8,731
–
301
–
–
–
–
–
–
9,032
10,232
–
300
–
–
–
–
–
–
10,532
40,414
–
363
–
–
–
–
–
–
40,777
31,909
–
405
–
–
–
–
–
–
32,314
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(13,118)
–
(325)
–
–
–
–
–
–
(13,443)
(12,388)
–
(1,271)
–
–
–
–
–
–
(13,659)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(37,718)
–
(103)
–
–
–
–
–
–
(37,821)
2015
$
(1,455)
(30,217)
–
(401)
–
–
–
–
–
–
(30,618)
(1,431)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1,054)
(1,137)
26,590
–
2,858
–
–
–
–
–
–
27,926
–
2,576
–
–
–
–
–
–
29,448
$
30,502
83
AGF Short-Term Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Face Value
Average
Cost ($)
Fair
Value ($)
Asset-Backed Security (1.4%)
Corporate Bonds (continued)
CAD
CAD
425,000 BMW Canada Auto Trust
1.680% Series 2016-1 ‘A2’
August 20, 2019
425,000
425,510
Corporate Bonds (50.0%)
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
84
229,000 Anheuser-Busch InBev
Finance Inc.
3.375% January 25, 2023
400,000 Bank of Montreal
3.400% April 23, 2021
750,000 Bank of Nova Scotia
2.873% June 4, 2021
450,000 Bell Canada
3.250% June 17, 2020
320,000 Bell Canada
3.350% March 22, 2023
600,000 BP Capital Markets PLC
3.497% November 9, 2020
325,000 Brookfield Asset
Management Inc.
3.950% April 9, 2019
395,000 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
565,000 CPPIB Capital Inc.
1.400% Series A
June 4, 2020
285,000 CU Inc.
6.800% August 13, 2019
374,000 Ford Credit Canada Limited
4.875% February 8, 2017
375,000 FortisBC Energy Inc.
2.580% April 8, 2026
625,000 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
600,000 OMERS Realty Corporation
2.473% November 12, 2019
Average
Cost ($)
Fair
Value ($)
696,476
696,575
347,148
332,713
375,310
378,732
363,236
347,809
768,790
758,884
79,679
82,384
338,423
14,610,352
334,833
14,709,361
331,289
329,603
1,162,800
1,158,504
726,754
729,448
1,078,300
828,231
715,437
584,924
491,965
4,506,545
586,783
4,217,493
728,514
727,363
885,171
880,349
876,826
881,527
741,440
3,231,951
731,895
3,221,134
325,500
329,662
368,218
361,212
331,662
329,553
362,775
361,931
483,514
481,680
366,506
356,289
360,861
350,147
719,699
709,423
1,098,143
1,098,437
Face Value
CAD
CAD
230,860
245,588
CAD
406,106
432,779
CAD
791,325
793,954
468,765
473,727
308,148
340,499
635,220
639,594
346,551
340,499
396,754
435,186
397,505
405,823
300,000
302,467
150,000
152,253
635,040
636,862
275,000
275,423
562,457
570,911
343,995
328,665
CAD
391,753
378,113
CAD
377,464
387,664
CAD
730,825
717,123
CAD
CAD
700,000 Royal Bank of Canada
2.480% June 4, 2025
300,000 Sun Life Financial Inc.
5.700% July 2, 2019
375,000 Sun Life Financial Inc.
Floating Rate
2.600% September 25, 2025
325,000 Suncor Energy Inc.
5.800% May 22, 2018
725,000 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 (14.3%)
CAD
325,000 Government of Canada
1.250% September 1, 2018
CAD 1,125,000 Government of Canada
1.750% March 1, 2019
CAD
650,000 Government of Canada
3.250% June 1, 2021
CAD
430,000 Government of Canada
Real Return Bonds
4.250% December 1, 2021
CAD
275,000 Government of Canada
Real Return Bonds
4.250% December 1, 2026
USD
382,000 U.S. Treasury Inflation Index
Linked Notes
1.125% January 15, 2021
Government Guaranteed Investments (10.9%)
CAD
725,000 Canada Housing Trust
Floating Rate
0.955% March 15, 2018
850,000 Canada Housing Trust
2.350% December 15, 2018
850,000 Canada Housing Trust
2.000% December 15, 2019
700,000 Municipal Finance Authority of
British Columbia
4.800% December 1, 2017
Municipal Bond (1.1%)
355,393
355,764
CAD
300,000 City of Montreal 3.500%
September 1, 2023
599,274
606,938
Provincial Bonds (19.6%)
337,386
368,380
CAD
299,607
300,185
CAD
CAD
CAD
355,495
355,666
720,960
711,348
275,839
288,200
333,578
315,017
615,990
618,803
CAD
CAD
CAD
CAD
350,000 Financement Quebec
3.500% December 1, 2017
325,000 Province of Alberta
1.600% June 15, 2018
350,000 Province of British Columbia
2.250% March 1, 2019
480,000 Province of Manitoba
Floating Rate
1.120% April 2, 2018
325,000 Province of Manitoba
5.500% November 15, 2018
325,000 Province of Ontario
5.500% June 2, 2018
650,000 Province of Ontario
4.400% June 2, 2019
975,000 Province of Ontario
4.000% June 2, 2021
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Average
Cost ($)
Fair
Value ($)
653,940
646,853
716,312
716,922
350,193
5,811,823
350,088
5,762,535
–
–
Total Investments (97.3%)
28,911,171
Foreign Exchange Forward Contracts (0.0%)
28,665,695
Face Value
Provincial Bonds (continued)
CAD
CAD
CAD
600,000 Province of Quebec
4.500% December 1, 2018
625,000 Province of Quebec
4.250% December 1, 2021
350,000 Province of Quebec
1.297% April 19, 2022
Commissions and other portfolio
transaction costs (Note 2)
See Schedule A
Total Portfolio (97.3%)
–
1,150
28,911,171
28,666,845
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
September 30, 2016 attributable to AGF Short-Term Income Class (the
“Fund”).
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
CAD
32,894
78,947
458,593
Sold Currency
USD
USD
USD
25,000
60,000
349,000
Forward Rate
Maturity Date
Fair Value ($)
Counterparty
Credit Rating
1.3158
1.3158
1.3140
October 14, 2016
October 14, 2016
October 26, 2016
99
238
813
1,150
Bank of Nova Scotia
Citibank NA
Bank of America
A
A
BBB
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
85
AGF Short-Term Income Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
Investment Objective
The Fund’s investment objective is to provide maximum income while
preserving capital and liquidity by investing primarily in short-term
instruments, government guaranteed securities and corporate paper
with a minimum A credit rating.
Summary of Investment Portfolio
As at September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Sector
September 30, 2016
(%)
Corporate Bonds
Provincial Bonds
Government Bonds
Government Guaranteed Investments
Asset-Backed Securities
Municipal Bonds
Foreign Exchange Forward Contracts
50.0
19.6
14.3
10.9
1.4
1.1
0.0
September 30, 2015
(%)
Corporate Bonds
Government Bonds
Provincial Bonds
Government Guaranteed Investments
Foreign Exchange Forward Contracts
41.5
29.7
13.0
12.1
(0.0)
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, the Fund invested in debt
instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AAA
AA
A
BBB
September 30,
2016
September 30,
2015
29.6
7.1
48.5
14.3
34.5
6.3
49.4
16.2
Interest Rate Risk
As at September 30, 2016 and 2015, the Fund’s exposure to debt
instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
September 30,
2016
September 30,
2015
1,090
10,887
9,897
6,792
3,025
8,735
10,049
7,577
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at September 30, 2016 and 2015, 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 $210,000 (September 30, 2015 – $184,000).
As at September 30, 2016, the Fund did not hold any significant cash
and cash equivalents. As at September 30, 2015, 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 $8,000.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 5 percent change in
benchmarks (September 30, 2015 – 5 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmarks, as at September 30, 2016 and
2015, with all other variables held constant, is included in the following
table. Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
FTSE TMX Canada 91 Day T-Bill Index
Blended Benchmark
September 30,
2016
September 30,
2015
10,588
410
13,573
304
The Blended Benchmark is composed of 50% Bloomberg Barclays
Global Inflation-Linked Bond Index (CAD hedged) (formerly, Barclays
Capital Global Inflation-Linked Bond Index (CAD hedged)) and 50%
FTSE TMX Canada Short Term Bond Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
86
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
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 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 September 30,
2016 and 2015, were as follows:
September 30, 2016
($‘000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
587
(569)
18
0.1
September 30, 2015
($’000)
September 30, 2015
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Euro Currency
United States Dollar
Pound Sterling
Australian Dollar
517
4,861
981
863
–
(4,360)
(526)
(715)
517
501
455
148
1.7
1.6
1.5
0.5
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 (September 30, 2015 –
$32,000).
–
–
–
–
–
–
–
Level 2
–
29,386
–
–
29,386
6
(16)
Level 3
–
–
–
–
–
–
–
Total
–
29,386
–
–
29,386
6
(16)
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the period ended September 30, 2016, the Fund did not hold
financial instruments within level 3 of the fair value hierarchy.
The following table reconciles the Fund’s level 3 fair value
measurements for the period ended September 30, 2015.
September 30, 2015
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
Level 1
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, 2015
Equities
–
–
–
–
–
–
–
Debt
Instruments
400
–
–
(400)
–
–
–
Total
400
–
–
(400)
–
–
–
–
During the period ended September 30, 2015, investments of
approximately $400,000 were transferred from level 3 to level 2 due to a
change in valuation to the use of quoted prices from recognized
investment dealers.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
–
–
–
–
–
28,666
–
–
28,666
1
–
–
–
–
–
–
–
–
–
28,666
–
–
28,666
1
–
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
87
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
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 9)
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)
September 30,
2016
September 30,
2015
$
$
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 9)
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
88
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
15,675
–
447
–
284
–
–
–
66
–
–
–
16,472
–
–
–
–
–
–
–
–
–
–
–
–
–
$
$
–
–
–
–
2
10
47
–
278
–
–
337
16,135
15,547
$
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
4,100
–
4,652
–
7,383
–
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
10.46
–
10.49
–
10.56
–
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
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
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
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 9)
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
2016
$
173
1
1
2015
$
–
–
–
128
303
–
–
–
–
–
–
–
–
–
–
–
303
–
–
21
–
14
10
11
–
–
3
–
–
1
–
7
–
–
–
–
–
–
–
–
–
–
–
–
–
–
67
–
–
(33)
34
–
–
$
269
$
–
$
$
$
$
$
$
$
$
$
87
–
76
–
106
–
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.40
–
0.45
–
0.43
–
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
For the periods ended September 30,
Cash Flows from Operating Activities
Increase (decrease) in net assets attributable to
holders of redeemable shares from operations
2016
$
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
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
269
2015
$
–
–
–
(1)
–
(128)
(15,196)
–
–
35
–
(107)
–
–
–
(66)
–
–
–
–
–
–
–
–
–
2
10
(15,182)
–
–
–
–
–
15,787
–
(158)
15,629
–
–
–
–
447
–
447
–
–
–
$
$
$
$
–
447
447
$
$
–
–
–
$
$
$
1
–
–
$
$
$
–
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
89
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
For the periods ended September 30,
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
90
2016
–
–
–
–
–
–
–
–
–
2015
$
–
–
–
–
–
–
–
–
–
–
–
87
–
76
–
106
–
–
–
–
269
–
–
–
–
–
–
–
–
–
–
4,074
–
6,949
–
4,930
–
–
–
–
15,953
–
–
–
–
–
–
–
–
–
–
68
–
203
–
2,540
–
–
–
–
2,811
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(39)
–
(36)
–
(90)
–
–
–
–
(165)
–
–
–
–
–
–
–
–
–
–
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(90)
–
(2,540)
–
(103)
–
–
–
–
(2,733)
2015
$
–
–
–
–
–
–
–
–
–
–
15,866
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
16,135
–
4,100
–
4,652
–
7,383
–
–
–
–
–
–
–
–
–
–
–
–
–
16,135
$
–
AGF Total Return Bond Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
15,547,099
15,675,241
15,547,099
15,675,241
Fixed Income Fund (97.2%)
4,679,177 AGF Total Return Bond Fund –
Series S Units*
Total Portfolio (97.2%)
* 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
September 30, 2016 attributable to the Fund.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
91
AGF Total Return Bond Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016, the Underlying Fund’s major portfolio
categories, as a percentage of 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 Asset Mix
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
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the Underlying Fund as at
September 30, 2016 are included in the following table:
Portfolio by Country
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
AGF Total Return Bond Fund
% of Underlying
Fund’s Net Assets
15,675
2.4
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at 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
September 30, 2016
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 September 30, 2016, the Underlying Fund’s exposure to debt
instruments by maturity was as follows:
Portfolio by Sector
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
92
September 30, 2016
Fair Value of
Fund’s
Investment
($’000)
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
September 30,
2016
18,863
94,068
82,244
400,922
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
As at 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 $165,000 as a result of the Underlying Fund’s exposure to
interest rate risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 20 percent change in
benchmarks, using historical correlation between the return of the
Mutual Fund Shares as compared to the return of the Fund’s
benchmarks, as at September 30, 2016, with all other variables held
constant, is included in the following table. Regression analysis has
been utilized to estimate the historical correlation. The analysis uses
36 monthly data points, unless the inception of the Fund is less than
three years, in which case since inception data has been used. The
returns of the other series of the Fund are substantially similar to that of
the Mutual Fund Shares, save for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
Bloomberg Barclays Global High-Yield Index
Blended Benchmark
September 30,
2016
1,182
1,544
Currencies to which the Underlying Fund had exposure as at
September 30, 2016, were as follows:
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
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 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 $109,000 as a result of the
Underlying Fund’s exposure to currency risk.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The Blended Benchmark is composed of 40% Bloomberg Barclays
Emerging Markets USD Aggregate Index, 40% Bloomberg Barclays
Global High-Yield Index and 20% Bloomberg Barclays Global Aggregate
Index.
The following table illustrates the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
($’000)
Currency Risk
As at September 30, 2016, the Fund did not have a significant direct
exposure to currency risk.
The amounts in the following table 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 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.
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
–
–
–
15,675
15,675
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
15,675
15,675
–
–
There were no significant transfers between levels 1 and 2 during the
period ended September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the period ended 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.
ANNUAL REPORT 2016
93
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
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 9)
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)
September 30,
2016
September 30,
2015
$
$
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 9)
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
94
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
476,532
231
1,776
–
189
1,025
–
–
42
–
–
–
479,795
656,403
23
2,139
–
561
2,028
–
–
15
–
–
–
661,169
$
$
–
–
80
–
180
368
1,374
–
1
–
–
2,003
477,792
453,063
$
$
–
–
906
–
227
558
1,703
–
–
–
–
3,394
657,775
656,756
$
$
$
$
$
$
$
$
$
415,555
–
44,193
–
13,628
–
–
–
4,416
$
$
$
$
$
$
$
$
$
534,467
–
84,737
–
25,967
–
–
–
12,604
$
$
$
$
$
$
$
$
$
13.21
–
13.69
–
14.30
–
–
–
11.67
$
$
$
$
$
$
$
$
$
13.22
–
13.53
–
13.94
–
–
–
11.38
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
For the periods ended September 30,
Income
Dividends and distributions
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
8,947
29
(20,800)
2015
$
7,262
39
66,586
23,822
11,998
(2,083)
(20,440)
53,447
(10,755)
1,034
(1,049)
267
(883)
(11,638)
14
2,140
13,356
171
41,994
10,934
11,611
824
53
12
44
–
78
1
24
2
–
1,360
3,071
766
54
11
18
–
71
1
21
2
–
1,459
1,089
935
17,338
1,205
16,308
(174)
17,164
(715)
15,593
$
(3,808)
$
26,401
$
$
$
$
$
$
$
$
$
(3,393)
–
(502)
–
114
–
–
–
(27)
$
$
$
$
$
$
$
$
$
19,202
–
4,984
–
1,909
–
–
–
306
$
$
$
$
$
$
$
$
$
(0.09)
–
(0.11)
–
0.08
–
–
–
(0.04)
$
$
$
$
$
$
$
$
$
0.53
–
0.81
–
1.02
–
–
–
0.35
For the periods ended September 30,
2016
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 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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends and distributions received, net of
withholding tax *
Income taxes (paid) recovered *
(3,808)
2015
$
26,401
–
(954)
22,883
(55,831)
(24,856)
(1,571,072)
21,323
(2,590,524)
1,752,886
2,337,832
–
–
–
–
(27)
(15)
–
–
–
–
–
–
–
–
(47)
(190)
175,769
94
293
(261,381)
–
–
59,200
392,217
(235,332)
(176,132)
(135,172)
257,045
–
$
$
(363)
2,139
1,776
954
$
$
(4,336)
5,521
2,139
$
1,742
34
1,776
$
2,139
–
2,139
$
29
$
39
$
$
5,876
–
$
$
6,173
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
95
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
For the periods ended September 30,
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
96
2016
534,467
–
84,737
–
25,967
–
–
–
12,604
2015
$
305,487
–
56,171
–
15,740
–
–
–
1,124
657,775
378,522
(3,393)
–
(502)
–
114
–
–
–
(27)
(3,808)
19,202
–
4,984
–
1,909
–
–
–
306
26,401
48,302
–
6,270
–
1,867
–
–
–
113
56,552
299,653
–
50,105
–
13,908
–
–
–
5,567
369,233
2,638
–
5,645
–
885
–
–
–
1,034
10,202
19,375
–
10,314
–
4,336
–
–
–
9,771
43,796
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(145,323)
–
(50,203)
–
(14,264)
–
–
–
(8,435)
(218,225)
(84,847)
–
(30,068)
–
(4,809)
–
–
–
(3,300)
(123,024)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(21,136)
–
(1,754)
–
(941)
–
–
–
(873)
(24,704)
2015
$
(24,403)
–
(6,769)
–
(5,117)
–
–
–
(864)
(37,153)
(176,175)
252,852
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(179,983)
279,253
415,555
–
44,193
–
13,628
–
–
–
4,416
534,467
–
84,737
–
25,967
–
–
–
12,604
477,792
$
657,775
AGF U.S. Sector Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Average
Cost ($)
No. of Units
Fair
Value ($)
ETFs – United States Equity (99.8%)
No. of Units
Average
Cost ($)
Fair
Value ($)
27,448,134
453,204,220
29,083,275
476,532,025
ETFs – United States Equity (continued)
695,690 The Consumer Discretionary
Select Sector SPDR Fund
294,929 The Consumer Staples Select
Sector SPDR Fund
208,058 The Energy Select Sector
SPDR Fund
1,946,238 The Financial Select Sector
SPDR Fund
712,969 The Health Care Select Sector
SPDR Fund
1,007,439 The Industrial Select Sector
SPDR Fund
683,014 The Materials Select Sector
SPDR Fund
270,832 The Real Estate Select Sector
SPDR Fund
1,375,285 The Technology Select Sector
SPDR Fund
452,500 The Utilities Select Sector
SPDR Fund
72,263,406
73,053,348
19,879,167
20,588,657
17,037,927
19,273,825
48,061,200
49,279,982
65,773,240
67,450,229
72,581,313
77,161,406
39,680,263
42,787,831
Total Portfolio (99.8%)
11,287,967
11,643,772
ETF – Exchange Traded Fund
79,191,603
86,209,700
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
September 30, 2016 attributable to AGF U.S. Sector Class (the “Fund”).
Commissions and other portfolio
transaction costs (Note 2)
(140,947)
Total Investments (99.8%)
453,063,273
Foreign Exchange Forward Contracts (0.0%)
See Schedule A
–
476,532,025
–
151,072
453,063,273
476,683,097
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
CAD
CAD
CAD
CAD
23,204,743
18,072,170
22,296,291
23,334,162
17,234,302
17,301,040
USD
USD
USD
USD
USD
USD
Sold Currency
Forward Rate
Maturity Date
17,636,000
13,735,000
16,968,000
17,738,000
13,173,000
13,218,000
1.3158
1.3158
1.3140
1.3155
1.3083
1.3089
October 14, 2016
October 14, 2016
October 26, 2016
October 27, 2016
October 31, 2016
October 31, 2016
Fair Value ($)
69,662
54,460
39,535
67,582
(43,941)
(36,226)
151,072
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Counterparty
Credit Rating
Bank of Nova Scotia
Citibank NA
Bank of America
Bank of Montreal
Royal Bank of Canada
Toronto-Dominion Bank
A
A
BBB
A
AA
AA
97
AGF U.S. Sector Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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.
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
September 30, 2016 and 2015 are included in the following tables:
Summary of Investment Portfolio
As at September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
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
Portfolio by Country
September 30, 2016
(%)
United States
Foreign Exchange Forward Contracts
99.8
0.0
September 30, 2015
(%)
United States
Foreign Exchange Forward Contracts
99.8
(0.1)
Portfolio by Sector
September 30, 2016
(%)
ETFs – United States Equity
Foreign Exchange Forward Contracts
99.8
0.0
September 30, 2015
(%)
ETFs – United States Short-Term Income
ETFs – United States Equity
Foreign Exchange Forward Contracts
50.0
49.8
(0.1)
September 30, 2016
September 30, 2015
SPDR Barclays 1-3 Month T-Bill ETF
The Materials Select Sector SPDR Fund
The Industrial Select Sector SPDR Fund
The Technology Select Sector SPDR Fund
The Utilities Select Sector SPDR Fund
The Consumer Discretionary Select Sector
SPDR Fund
The Financial Select Sector SPDR Fund
The Health Care 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
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
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
328,572
18,462
52,163
85,065
29,114
8.0
0.7
0.6
0.6
0.3
43,471
44,508
29,132
12,714
13,202
0.3
0.2
0.2
0.1
0.1
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Portfolio by Asset Mix
September 30, 2016
(%)
United States Equity
Foreign Exchange Forward Contracts
99.8
0.0
September 30, 2015
(%)
United States Equity
Foreign Exchange Forward Contracts
99.8
(0.1)
Credit Risk
As at September 30, 2016 and 2015, the Fund had no significant
investments in debt instruments and derivatives. Accordingly, the
Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 75 percent change in
benchmark (September 30, 2015 – 90 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Fund’s benchmark, as at September 30, 2016 and
2015, with all other variables held constant, is included in the following
98
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
table. Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Shares, save
for differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
S&P 500 Net Return Index
September 30,
2016
September 30,
2015
219,275
413,426
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)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
476,532
–
–
–
476,532
–
–
Level 2
–
–
–
–
–
231
(80)
Level 3
–
–
–
–
–
–
–
Total
476,532
–
–
–
476,532
231
(80)
September 30, 2015
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends, distributions and interest
receivables and receivables for investments sold) and financial liabilities
(including payable for cash collateral under securities lending and
payable for investments purchased) that are denominated in foreign
currencies do not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
United States Dollar
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
656,403
–
–
–
656,403
–
–
Level 2
–
–
–
–
–
23
(906)
Level 3
–
–
–
–
–
–
–
Total
656,403
–
–
–
656,403
23
(906)
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
479,569
(121,292) 358,277
75.0
September 30, 2015
($’000)
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
660,900
(163,152) 497,748
75.7
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $7,166,000 (September 30,
2015 – $9,955,000).
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.
ANNUAL REPORT 2016
99
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
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)
September 30,
2016
September 30,
2015
$
$
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
100
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
104,835
382
108
195
–
201
–
87
105,808
87,644
377
350
–
–
183
–
49
88,603
$
$
–
31
75
136
53
194
–
489
105,319
100,166
$
$
–
28
67
227
37
140
–
499
88,104
84,834
$
$
$
$
$
$
$
$
$
66,990
51
4,986
–
16,142
–
6,881
7,308
2,961
$
$
$
$
$
$
$
$
$
62,935
48
3,490
–
11,265
–
3,766
6,600
–
$
$
$
$
$
$
$
$
$
25.40
25.69
27.50
–
13.68
–
13.35
16.76
10.72
$
$
$
$
$
$
$
$
$
23.77
24.01
25.44
–
12.50
–
13.58
16.51
–
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
For the periods ended September 30,
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
STATEMENTS OF CASH FLOWS
2016
$
5,899
3
954
2015
$
4,672
1
3,102
1,859
8,715
8,715
(3,497)
4,278
4,278
1,583
1,427
103
22
12
18
–
30
1
–
2
–
183
1,954
101
20
11
–
–
25
1
–
2
–
167
1,754
(40)
1,914
(35)
1,719
$
6,801
$
2,559
$
$
$
$
$
$
$
$
$
4,325
3
342
–
1,238
–
354
455
84
$
$
$
$
$
$
$
$
$
1,897
2
31
–
277
–
119
233
–
$
$
$
$
$
$
$
$
$
1.61
1.68
2.06
–
1.17
–
0.98
1.10
0.64
$
$
$
$
$
$
$
$
$
0.77
0.81
0.37
–
0.41
–
0.45
0.58
–
For the periods ended September 30,
2016
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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
6,801
2015
$
2,559
(954)
(3,102)
(1,859)
(39,460)
30,822
3,497
(47,120)
39,168
(5,881)
–
(4,628)
–
(18)
–
(44)
–
(38)
–
–
–
3
8
(10,576)
2
4
(9,664)
(492)
(440)
29,898
25,332
(18,825)
10,581
(15,148)
9,744
$
$
5
377
382
$
$
80
297
377
$
–
382
382
$
–
377
377
$
$
$
3
–
(38)
$
$
$
1
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
101
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
For the periods ended September 30,
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
2016
62,935
48
3,490
–
11,265
–
3,766
6,600
–
2015
$
58,538
46
1,417
–
4,953
–
3,613
7,110
–
88,104
75,677
4,325
3
342
–
1,238
–
354
455
84
6,801
1,897
2
31
–
277
–
119
233
–
2,559
13,045
–
1,914
–
6,155
–
3,999
1,808
1,962
28,883
13,855
–
1,760
–
5,962
–
961
1,172
–
23,710
2,582
–
1,527
–
869
–
522
192
934
6,626
3,518
–
1,080
–
1,257
–
104
261
–
6,220
–
–
–
–
–
–
169
91
–
260
–
–
–
–
–
–
108
85
–
193
(13,742)
–
(1,053)
–
(3,162)
–
(1,050)
(1,349)
(19)
(20,375)
(12,990)
–
(655)
–
(895)
–
(801)
(1,736)
–
(17,077)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(2,155)
–
(1,234)
–
(223)
–
(464)
(136)
–
(4,212)
2015
$
(1,883)
–
(143)
–
(289)
–
(38)
(191)
–
(2,544)
11,182
10,502
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(415)
(353)
–
(768)
–
–
–
–
–
–
(300)
(334)
–
(634)
17,215
12,427
66,990
51
4,986
–
16,142
–
6,881
7,308
2,961
62,935
48
3,490
–
11,265
–
3,766
6,600
–
105,319
$
88,104
AGF Elements Balanced Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
11,202,970
11,547,003
4,780,594
5,279,843
897,000
1,049,687
1,744,305
2,106,760
9,183,395
8,462,686
8,261,556
8,403,399
3,190,026
3,111,783
1,854,964
2,080,293
2,326,216
2,103,519
4,839,908
5,221,358
8,830,664
10,482,682
2,157,674
2,149,450
4,289,948
52,356,250
5,239,387
55,690,847
3,066,396
3,123,431
7,210,924
7,278,128
14,775,813
15,661,461
4,293,795
4,204,111
7,259,980
36,606,908
7,330,346
37,597,477
100,166,128
104,835,327
Balanced Fund (10.9%)
1,115,652 AGF Tactical Fund –
Series S Units
Equity Funds (52.9%)
174,195 AGF American Growth Fund –
Series S Units
19,694 AGF Canadian Large Cap
Dividend Fund –
Series S Units
202,184 AGF Canadian Small Cap
Fund – Series S Units
182,819 AGF Canadian Stock Fund –
Series S Units
608,501 AGF Dividend Income Fund –
Series S Units
398,946 AGF EAFE Equity Fund –
Series S Units
147,853 AGF Emerging Markets Fund –
Series S Units
230,902 AGF European Equity Fund –
Series S Units
193,599 AGF Global Dividend Fund –
Series S Units
307,590 AGF Global Equity Fund –
Series S Units
238,298 AGF Global Resources Fund –
Series S Units
195,063 AGF U.S. Risk Managed Fund –
Series S Units
Fixed Income Funds (35.7%)
302,658 AGF Emerging Markets Bond
Fund – Series S Units
584,119 AGF Fixed Income Plus Fund –
Series S Units
1,310,583 AGF Global Bond Fund –
Series S Units
756,135 AGF High Yield Bond Fund –
Series S Units
2,188,163 AGF Total Return Bond Fund –
Series S Units
Total Portfolio (99.5%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
September 30, 2016 attributable to AGF Elements Balanced Portfolio Class
(the “Portfolio”).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
103
AGF Elements Balanced Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Portfolio’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Sector
September 30, 2016
(%)
Equity Funds
Fixed Income Funds
Balanced Funds
52.9
35.7
10.9
September 30, 2015
(%)
Equity Funds
Fixed Income Funds
Balanced Funds
55.6
34.9
9.0
September 30, 2015
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
AGF Global Resources Fund
AGF EAFE Equity Fund
AGF European Equity Fund
AGF Tactical Fund
AGF American Growth Fund
AGF U.S. Risk Managed Fund
AGF Emerging Markets Bond Fund
AGF Global Bond Fund
AGF Global Equity Fund
AGF Fixed Income Plus Fund
AGF Canadian Small Cap Fund
AGF Total Return Bond Fund
AGF Canadian Stock Fund
AGF High Yield Bond Fund
AGF Emerging Markets Fund
AGF Canadian Large Cap Dividend Fund
AGF Global Dividend Fund
1,720
2,613
3,467
7,927
7,830
5,305
4,410
8,876
9,640
8,764
1,749
6,121
7,840
2,578
1,775
3,503
3,526
85.6
4.2
4.1
3.9
3.2
3.2
2.5
2.4
1.8
1.6
1.1
1.1
0.8
0.7
0.3
0.2
0.2
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Interest in Unconsolidated Structured Entities (Note 2)
The Portfolio’s investment details in the underlying funds as at
September 30, 2016 and 2015 are included in the following tables:
Other Price Risk
The Schedule of Investment Portfolio of the Portfolio classifies securities
by asset type.
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
The impact on Net Assets of the Portfolio due to a 25 percent change in
benchmarks (September 30, 2015 – 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 September 30, 2016
and 2015, 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.
September 30, 2016
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
Impact on Net Assets ($’000)
Benchmark
MSCI All Country World Index
Bloomberg Barclays Global Aggregate Index
Blended Benchmark
September 30, September 30,
2016
2015
15,904
8,497
24,481
10,778
5,882
15,358
The Blended Benchmark is composed of 45% MSCI All Country World
Index, 30% Bloomberg Barclays Global Aggregate Index (formerly,
Barclays Capital Global Aggregate Bond Index), 15% S&P/TSX
Composite Index and 10% FTSE TMX Canada Universe Bond Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The Portfolio is indirectly exposed to credit, interest rate and currency
risks, as applicable, of the underlying funds as at September 30, 2016
and 2015.
104
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Portfolio’s
financial instruments within the fair value hierarchy as at September 30,
2016 and 2015.
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
104,835
104,835
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
104,835
104,835
–
–
September 30, 2015
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
87,644
87,644
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
87,644
87,644
–
–
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
105
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
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)
September 30,
2016
September 30,
2015
$
$
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.
ANNUAL REPORT 2016
66,877
419
55
53
–
185
–
25
67,614
43,633
270
55
100
–
130
–
25
44,213
$
$
–
20
48
110
–
118
–
296
67,318
64,078
$
$
–
16
54
63
–
–
–
133
44,080
42,192
$
$
$
$
$
$
$
$
$
52,971
17
3,676
–
8,308
–
–
–
2,346
$
$
$
$
$
$
$
$
$
41,842
36
1,426
–
776
–
–
–
–
$
$
$
$
$
$
$
$
$
23.19
23.25
25.12
–
10.76
–
–
–
10.65
$
$
$
$
$
$
$
$
$
21.95
22.07
23.51
–
9.94
–
–
–
–
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
For the periods ended September 30,
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
STATEMENTS OF CASH FLOWS
2016
$
2,808
2
445
2015
$
1,358
4,613
4,613
2,600
1
1,724
(1,132)
3,193
3,193
993
865
77
21
12
15
–
26
1
–
2
–
118
1,265
67
19
11
–
–
20
1
–
2
–
101
1,086
(29)
1,236
(17)
1,069
$
3,377
$
2,124
$
$
$
$
$
$
$
$
$
2,737
2
218
–
398
–
–
–
22
$
$
$
$
$
$
$
$
$
2,063
1
68
–
(8)
–
–
–
–
$
$
$
$
$
$
$
$
$
1.27
0.98
1.75
–
0.98
–
–
–
0.35
$
$
$
$
$
$
$
$
$
1.06
1.05
1.25
–
(0.24)
–
–
–
–
For the periods ended September 30,
2016
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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
3,377
2015
$
2,124
(445)
(1,724)
(1,358)
(32,947)
14,424
1,132
(29,026)
30,425
(2,753)
–
(2,576)
–
(55)
–
(24)
–
–
–
–
–
4
(6)
(19,759)
–
2
333
–
–
29,502
8,462
(9,594)
19,908
(8,900)
(438)
149
270
419
(105)
375
270
$
$
$
$
–
419
419
$
$
–
270
270
$
$
$
2
–
–
$
$
$
1
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
107
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
For the periods ended September 30,
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
2016
41,842
36
1,426
–
776
–
–
–
–
44,080
2015
$
40,899
35
1,138
–
–
–
–
–
–
42,072
2,737
2
218
–
398
–
–
–
22
3,377
2,063
1
68
–
(8)
–
–
–
–
2,124
16,451
–
2,281
–
6,589
–
–
–
1,558
26,879
6,697
–
193
–
620
–
–
–
–
7,510
2,824
–
1,070
–
1,379
–
–
–
820
6,093
1,139
–
407
–
168
–
–
–
–
1,714
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(8,125)
(21)
(662)
–
(342)
–
–
–
(54)
(9,204)
(7,459)
–
(380)
–
(4)
–
–
–
–
(7,843)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(2,758)
–
(657)
–
(492)
–
–
–
–
(3,907)
2015
$
19,861
(1,497)
–
–
–
–
–
–
–
–
(1,497)
(116)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
23,238
2,008
52,971
17
3,676
–
8,308
–
–
–
2,346
41,842
36
1,426
–
776
–
–
–
–
67,318
$
44,080
AGF Elements Conservative Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
5,219,008
5,368,053
1,907,367
2,026,843
1,180,761
1,342,810
2,838,886
2,703,091
4,606,138
4,700,355
1,364,204
1,326,855
3,625,565
4,007,003
4,708,672
5,354,993
2,331,129
22,562,722
2,676,631
24,138,581
3,283,505
3,333,394
9,152,223
9,298,831
15,205,391
16,039,018
2,691,627
2,683,195
5,963,440
36,296,186
6,015,691
37,370,129
64,077,916
66,876,763
Balanced Fund (8.0%)
518,653 AGF Tactical Fund –
Series S Units
Equity Funds (35.8%)
66,870 AGF American Growth Fund –
Series S Units
25,193 AGF Canadian Large Cap
Dividend Fund –
Series S Units
58,395 AGF Canadian Stock Fund –
Series S Units
340,359 AGF Dividend Income Fund –
Series S Units
170,110 AGF EAFE Equity Fund –
Series S Units
148,573 AGF Global Dividend Fund –
Series S Units
157,130 AGF Global Equity Fund –
Series S Units
99,651 AGF U.S. Risk Managed Fund –
Series S Units
Fixed Income Funds (55.5%)
323,003 AGF Emerging Markets Bond
Fund – Series S Units
746,295 AGF Fixed Income Plus Fund –
Series S Units
1,342,177 AGF Global Bond Fund –
Series S Units
482,589 AGF High Yield Bond Fund –
Series S Units
1,795,729 AGF Total Return Bond Fund –
Series S Units
Total Portfolio (99.3%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
September 30, 2016 attributable to AGF Elements Conservative Portfolio
Class (the “Portfolio”).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
109
AGF Elements Conservative Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Portfolio’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Sector
September 30, 2016
(%)
Fixed Income Funds
Equity Funds
Balanced Funds
55.5
35.8
8.0
September 30, 2015
(%)
Fixed Income Funds
Equity Funds
Balanced Funds
54.6
37.5
6.9
Interest in Unconsolidated Structured Entities (Note 2)
The Portfolio’s investment details in the underlying funds as at
September 30, 2016 and 2015 are included in the following tables:
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
($’000)
% of Underlying
Fund’s Net Assets
16,039
1,327
3,333
5,368
2,677
2,027
6,016
9,299
4,700
2,683
5,355
2,703
4,007
1,343
3.0
2.2
2.0
1.9
1.5
1.2
0.9
0.7
0.7
0.7
0.6
0.3
0.2
0.1
September 30, 2015
AGF Global Bond Fund
AGF EAFE Equity Fund
AGF European Equity Fund
AGF Tactical Fund
AGF U.S. Risk Managed Fund
AGF Fixed Income Plus Fund
AGF Emerging Markets Bond Fund
AGF Total Return Bond Fund
AGF American Growth Fund
AGF Global Equity Fund
AGF High Yield Bond Fund
AGF Canadian Stock Fund
AGF Global Dividend Fund
AGF Canadian Large Cap Dividend Fund
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
9,707
1,302
1,301
3,060
2,191
6,527
1,751
5,217
2,148
3,922
855
1,726
2,190
1,736
2.7
2.1
1.5
1.5
1.3
1.2
1.0
1.0
0.9
0.7
0.2
0.2
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, 2015 – 10 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Portfolio’s benchmarks, as at September 30, 2016
and 2015, 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.
Effective April 1, 2016, the Portfolio’s blended benchmark was changed
from 36% FTSE TMX Canada Universe Bond Index, 30% MSCI All
Country World Index, 24% Bloomberg Barclays Global Aggregate Index
(formerly, Barclays Capital Global Aggregate Bond Index) and 10% S&P/
TSX Composite Index (the “Old Blended Benchmark”) to the Blended
Benchmark (as defined below) to better represent the Portfolio’s global
bias with respect to its fixed income allocation.
Impact on Net Assets ($’000)
Benchmark
FTSE TMX Canada Universe Bond Index
MSCI All Country World Index
Blended Benchmark
Old Blended Benchmark
September 30,
2016
September 30,
2015
13,427
6,628
11,770
N/A
3,985
2,267
N/A
3,923
The Blended Benchmark is composed of 36% Bloomberg Barclays
Global Aggregate Index, 30% MSCI All Country World Index, 24% FTSE
TMX Canada Universe Bond Index and 10% S&P/TSX Composite Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
110
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
The Portfolio is indirectly exposed to credit, interest rate and currency
risks, as applicable, of the underlying funds as at September 30, 2016
and 2015.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Portfolio’s
financial instruments within the fair value hierarchy as at September 30,
2016 and 2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
66,877
66,877
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
66,877
66,877
–
–
Level 1
Level 2
Level 3
Total
–
–
–
43,633
43,633
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
43,633
43,633
–
–
September 30, 2015
($’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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
111
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
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)
September 30,
2016
September 30,
2015
$
$
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.
ANNUAL REPORT 2016
10,877
114
1
7
–
2
–
7
11,008
10,524
108
166
17
–
2
–
7
10,824
$
$
–
4
15
13
–
1
–
33
10,975
10,003
$
$
–
3
12
1
–
166
–
182
10,642
9,431
$
$
$
$
$
$
$
$
$
9,744
1
552
–
677
–
–
–
1
$
$
$
$
$
$
$
$
$
9,643
7
554
–
438
–
–
–
–
$
$
$
$
$
$
$
$
$
29.15
29.33
31.40
–
10.88
–
–
–
11.00
$
$
$
$
$
$
$
$
$
27.46
27.60
29.25
–
9.97
–
–
–
–
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
For the periods ended September 30,
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
STATEMENTS OF CASH FLOWS
2016
$
915
–
229
2015
$
527
–
528
(219)
925
925
18
1,073
1,073
214
211
62
20
12
8
–
25
1
1
2
–
34
379
53
18
11
–
–
19
1
–
2
–
29
344
(99)
280
(72)
272
$
645
$
801
$
$
$
$
$
$
$
$
$
570
1
32
–
42
–
–
–
0
$
$
$
$
$
$
$
$
$
780
1
20
–
(0)
–
–
–
–
$
$
$
$
$
$
$
$
$
1.62
2.02
1.81
–
0.94
–
–
–
1.00
$
$
$
$
$
$
$
$
$
2.18
2.97
1.27
–
(0.01)
–
–
–
–
For the periods ended September 30,
2016
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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
$
$
645
2015
$
801
(229)
(528)
219
(4,073)
4,490
(18)
(6,160)
6,809
(915)
–
(532)
–
–
–
5
–
–
–
–
–
1
3
141
(1)
(2)
374
–
–
2,948
2,301
(3,083)
(135)
(2,679)
(378)
6
108
114
(4)
112
108
$
$
–
114
114
$
$
–
108
108
$
$
$
–
–
–
$
$
$
–
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
113
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
For the periods ended September 30,
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
2016
9,643
7
554
–
438
–
–
–
–
10,642
570
1
32
–
42
–
–
–
0
645
2015
$
9,524
11
362
–
–
–
–
–
–
9,897
780
1
20
–
(0)
–
–
–
–
801
1,985
1
93
–
1
–
–
–
1
2,081
1,744
–
205
–
–
–
–
–
–
1,949
461
–
198
–
206
–
–
–
–
865
582
–
–
–
441
–
–
–
–
1,023
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(2,244)
(8)
(137)
–
(10)
–
–
–
–
(2,399)
(2,225)
(5)
(33)
–
(3)
–
–
–
–
(2,266)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(671)
–
(188)
–
–
–
–
–
–
(859)
2015
$
(312)
(762)
–
–
–
–
–
–
–
–
(762)
(56)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
333
745
9,744
1
552
–
677
–
–
–
1
9,643
7
554
–
438
–
–
–
–
10,975
$
10,642
AGF Elements Global Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
1,896,686
1,962,278
1,767,509
1,861,772
109,581
107,490
171,970
217,802
336,040
322,241
105,106
107,752
601,951
541,733
1,029,867
1,082,026
2,235,695
2,715,114
220,654
222,767
1,527,513
8,105,886
1,735,894
8,914,591
10,002,572
10,876,869
Balanced Fund (17.9%)
189,592 AGF Tactical Fund –
Series S Units
Equity Funds (81.2%)
61,424 AGF American Growth Fund –
Series S Units
8,243 AGF Asian Growth Fund –
Series S Units
20,902 AGF Canadian Small Cap
Fund – Series S Units
41,313 AGF EAFE Equity Fund –
Series S Units
7,658 AGF Emerging Markets Fund –
Series S Units
59,466 AGF European Equity Fund –
Series S Units
40,120 AGF Global Dividend Fund –
Series S Units
79,669 AGF Global Equity Fund –
Series S Units
24,697 AGF Global Resources Fund –
Series S Units
64,627 AGF U.S. Risk Managed Fund –
Series S Units
Total Portfolio (99.1%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
September 30, 2016 attributable to AGF Elements Global Portfolio Class
(the “Portfolio”).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
115
AGF Elements Global Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Portfolio’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Sector
September 30, 2016
(%)
Equity Funds
Balanced Funds
81.2
17.9
September 30, 2015
(%)
Equity Funds
Balanced Funds
85.2
13.7
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 50 percent change in
benchmarks (September 30, 2015 – 70 percent), using historical
correlation between the return of the Mutual Fund Shares as compared
to the return of the Portfolio’s benchmarks, as at September 30, 2016
and 2015, 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 ($’000)
Interest in Unconsolidated Structured Entities (Note 2)
The Portfolio’s investment details in the underlying funds as at
September 30, 2016 and 2015 are included in the following tables:
September 30, 2016
AGF Asian Growth Fund
AGF Global Resources Fund
AGF American Growth Fund
AGF U.S. Risk Managed Fund
AGF European Equity Fund
AGF Tactical Fund
AGF EAFE Equity Fund
AGF Global Equity Fund
AGF Canadian Small Cap Fund
AGF Global Dividend Fund
AGF Emerging Markets Fund
September 30, 2015
AGF Asian Growth Fund
AGF Global Resources Fund
AGF American Growth Fund
AGF U.S. Risk Managed Fund
AGF Tactical Fund
AGF European Equity Fund
AGF Global Equity Fund
AGF EAFE Equity Fund
AGF Canadian Small Cap Fund
AGF Global Dividend Fund
AGF Emerging Markets Fund
116
Fair Value of
Portfolio’s
Investment
($’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
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
105
106
2,546
1,692
1,453
527
2,734
309
210
631
211
35.6
5.3
1.1
1.0
0.7
0.6
0.5
0.5
0.1
0.0
0.0
Benchmark
September 30,
2016
September
30, 2015
5,022
2,651
6,439
4,009
MSCI All Country World Index
S&P/TSX Composite Index
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The Portfolio is indirectly exposed to credit, interest rate and currency
risks, as applicable, of the underlying funds as at September 30, 2016
and 2015.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Portfolio’s
financial instruments within the fair value hierarchy as at September 30,
2016 and 2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
10,877
10,877
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
10,877
10,877
–
–
Level 1
Level 2
Level 3
Total
–
–
–
10,524
10,524
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
10,524
10,524
–
–
September 30, 2015
($’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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
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
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)
September 30,
2016
September 30,
2015
$
$
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
21,194
139
1
52
–
17
–
23
21,426
18,942
151
3
8
–
15
–
23
19,142
$
$
–
7
27
42
9
–
–
85
21,341
19,898
$
$
–
7
26
40
11
1
–
85
19,057
17,466
$
$
$
$
$
$
$
$
$
16,106
3
2,107
–
472
–
1,717
248
688
$
$
$
$
$
$
$
$
$
15,019
3
1,611
–
232
–
1,867
325
–
$
$
$
$
$
$
$
$
$
27.57
27.52
29.86
–
10.77
–
14.22
17.83
10.75
$
$
$
$
$
$
$
$
$
25.96
26.07
27.79
–
9.89
–
14.57
17.71
–
Approved by the Board
W. Robert Farquharson, Director
Louise Morwick, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
117
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
For the periods ended September 30,
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
118
STATEMENTS OF CASH FLOWS
2016
$
1,589
1
313
2015
$
1,050
1
899
(180)
1,723
1,723
(327)
1,623
1,623
376
375
70
21
12
15
–
28
1
–
2
–
50
575
71
19
11
–
–
22
1
–
2
–
47
548
(96)
479
(72)
476
$
1,244
$
1,147
$
$
$
$
$
$
$
$
$
940
0
145
–
33
–
92
17
17
$
$
$
$
$
$
$
$
$
981
3
30
–
(2)
–
115
20
–
$
$
$
$
$
$
$
$
$
1.58
1.45
2.36
–
0.86
–
0.72
0.97
0.57
$
$
$
$
$
$
$
$
$
1.60
2.57
0.85
–
(0.18)
–
0.89
1.12
–
For the periods ended September 30,
2016
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 10)
Amounts paid on redemption of redeemable
shares and on redeemable shares converted
out of the Class (Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
ANNUAL REPORT 2016
$
$
$
1,147
(313)
(899)
180
(8,082)
7,505
327
(12,285)
13,208
(1,587)
–
(1,061)
–
(2)
–
11
–
–
–
–
–
–
–
–
1
(1,054)
–
7
455
(123)
(133)
5,553
4,221
(4,388)
1,042
(4,495)
(407)
(12)
151
139
$
$
48
103
151
$
–
139
139
$
–
151
151
$
$
$
1
–
–
$
$
$
1
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
1,244
2015
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
For the periods ended September 30,
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
2016
15,019
3
1,611
–
232
–
1,867
325
–
19,057
2015
$
15,514
41
621
–
–
–
1,824
335
–
18,335
940
0
145
–
33
–
92
17
17
1,244
981
3
30
–
(2)
–
115
20
–
1,147
3,675
–
342
–
89
–
364
30
545
5,045
2,574
–
639
–
83
–
416
1
–
3,713
355
–
167
–
241
–
–
8
127
898
447
–
369
–
152
–
–
–
–
968
–
–
–
–
–
–
39
9
–
48
–
–
–
–
–
–
27
9
–
36
(3,110)
–
(47)
–
(123)
–
(492)
(125)
(1)
(3,898)
(3,586)
(41)
(48)
–
(1)
–
(340)
(24)
–
(4,040)
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
(773)
–
(111)
–
–
–
–
–
–
(884)
2015
$
1,209
(911)
–
–
–
–
–
(22)
–
–
(933)
(256)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(153)
(16)
–
(169)
–
–
–
–
–
–
(153)
(16)
–
(169)
2,284
722
16,106
3
2,107
–
472
–
1,717
248
688
15,019
3
1,611
–
232
–
1,867
325
–
21,341
$
19,057
119
AGF Elements Growth Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
3,086,067
3,184,788
2,558,637
2,776,134
221,919
209,135
328,273
424,258
695,632
638,278
640,657
635,519
425,031
418,857
375,311
420,036
1,173,161
1,055,903
1,575,081
1,691,170
2,661,469
3,182,219
202,300
212,937
2,424,779
13,282,250
2,754,608
14,419,054
830,345
843,264
1,221,111
1,267,494
640,727
634,845
837,092
3,529,275
844,078
3,589,681
19,897,592
21,193,523
Balanced Fund (14.9%)
307,709 AGF Tactical Fund –
Series S Units
Equity Funds (67.6%)
91,591 AGF American Growth Fund –
Series S Units
16,038 AGF Asian Growth Fund –
Series S Units
40,716 AGF Canadian Small Cap Fund –
Series S Units
13,789 AGF Canadian Stock Fund –
Series S Units
46,019 AGF Dividend Income Fund –
Series S Units
53,700 AGF EAFE Equity Fund –
Series S Units
29,853 AGF Emerging Markets Fund –
Series S Units
115,906 AGF European Equity Fund –
Series S Units
62,706 AGF Global Dividend Fund –
Series S Units
93,375 AGF Global Equity Fund –
Series S Units
23,607 AGF Global Resources Fund –
Series S Units
102,554 AGF U.S. Risk Managed Fund –
Series S Units
Fixed Income Funds (16.8%)
81,712 AGF Emerging Markets Bond
Fund – Series S Units
106,066 AGF Global Bond Fund –
Series S Units
114,181 AGF High Yield Bond Fund –
Series S Units
251,963 AGF Total Return Bond Fund –
Series S Units
Total Portfolio (99.3%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
September 30, 2016 attributable to AGF Elements Growth Portfolio Class
(the “Portfolio”).
120
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Elements Growth Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Portfolio’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Sector
September 30, 2016
(%)
Equity Funds
Fixed Income Funds
Balanced Funds
67.6
16.8
14.9
September 30, 2015
(%)
Equity Funds
Fixed Income Funds
Balanced Funds
72.4
15.0
12.0
September 30, 2015
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 Emerging Markets Bond Fund
AGF Global Bond Fund
AGF Canadian Small Cap Fund
AGF Total Return Bond Fund
AGF High Yield Bond Fund
AGF Emerging Markets Fund
AGF Canadian Stock Fund
AGF Global Dividend Fund
AGF Canadian Large Cap Dividend Fund
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
190
184
3,382
2,296
1,113
2,287
566
3,416
762
959
377
758
373
383
563
955
378
64.4
9.1
1.4
1.4
1.3
1.1
0.9
0.6
0.4
0.3
0.2
0.1
0.1
0.1
0.1
0.0
0.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Interest in Unconsolidated Structured Entities (Note 2)
The Portfolio’s investment details in the underlying funds as at
September 30, 2016 and 2015 are included in the following tables:
Other Price Risk
The Schedule of Investment Portfolio of the Portfolio classifies securities
by asset type.
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
The impact on Net Assets of the Portfolio due to a 25 percent change in
benchmarks (September 30, 2015 – 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 September 30, 2016
and 2015, 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.
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
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
Impact on Net Assets ($’000)
Benchmark
MSCI All Country World Index
Bloomberg Barclays Global Aggregate Index
Blended Benchmark
September 30, September 30,
2016
2015
4,197
2,191
5,141
2,840
1,512
3,377
The Blended Benchmark is composed of 72% MSCI All Country World
Index, 20% Bloomberg Barclays Global Aggregate Index (formerly,
Barclays Capital Global Aggregate Bond Index) and 8% S&P/TSX
Composite Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The Portfolio is indirectly exposed to credit, interest rate and currency
risks, as applicable, of the underlying funds as at September 30, 2016
and 2015.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
121
AGF Elements Growth Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Portfolio’s
financial instruments within the fair value hierarchy as at September 30,
2016 and 2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
21,194
21,194
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
21,194
21,194
–
–
Level 1
Level 2
Level 3
Total
–
–
–
18,942
18,942
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
18,942
18,942
–
–
September 30, 2015
($’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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Portfolio did
not hold financial instruments within level 3 of the fair value hierarchy.
122
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
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
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)
September 30,
2016
September 30,
2015
$
$
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
37,354
1,005
1,376
–
–
129
–
–
39,864
–
–
–
–
–
–
–
–
–
$
$
–
6
13
56
7
810
–
892
38,972
36,790
$
$
–
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
15,103
–
4,776
–
8,904
–
–
2,510
7,679
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
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.
ANNUAL REPORT 2016
123
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
For the periods ended September 30,
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
STATEMENTS OF CASH FLOWS
2016
$
315
2
45
2015
$
–
–
564
926
926
–
–
–
69
–
15
10
11
2
–
3
–
–
1
–
13
124
–
–
–
–
–
–
–
–
–
–
–
–
(31)
93
–
–
$
833
$
–
$
$
$
$
$
$
$
$
$
292
–
102
–
189
–
–
46
204
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.41
–
0.46
–
0.53
–
–
0.39
0.51
$
$
$
$
$
$
$
$
$
–
–
–
–
–
–
–
–
–
For the periods ended September 30,
2016
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
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents beginning of period
Cash and Cash Equivalents End of Period
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
Income taxes (paid) recovered *
833
ANNUAL REPORT 2016
$
–
(45)
–
(564)
(37,238)
1,489
–
–
–
(186)
–
–
–
(129)
–
–
–
–
–
–
–
6
13
(35,821)
–
–
–
(12)
–
37,370
–
(532)
36,826
–
–
1,005
–
1,005
–
–
–
$
$
$
$
–
1,005
1,005
$
–
–
–
$
$
$
2
–
–
$
$
$
–
–
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2015
$
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
For the periods ended September 30,
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
2016
–
–
–
–
–
–
–
–
–
2015
$
–
–
–
–
–
–
–
–
–
–
–
292
–
102
–
189
–
–
46
204
833
–
–
–
–
–
–
–
–
–
–
14,123
–
4,513
–
8,962
–
–
2,243
7,524
37,365
–
–
–
–
–
–
–
–
–
–
766
–
188
–
85
–
–
396
100
1,535
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
12
–
12
–
–
–
–
–
–
–
–
–
–
(78)
–
(23)
–
(332)
–
–
(2)
(149)
(584)
–
–
–
–
–
–
–
–
–
–
For the periods ended September 30,
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
2016
$
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.
ANNUAL REPORT 2016
–
–
(4)
–
–
–
–
(154)
–
(158)
2015
$
–
–
–
–
–
–
–
–
–
–
38,170
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(31)
–
(31)
–
–
–
–
–
–
–
–
–
–
38,972
–
15,103
–
4,776
–
8,904
–
–
2,510
7,679
–
–
–
–
–
–
–
–
–
38,972
$
–
125
AGF Elements Yield Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
4,432,365
4,499,644
6,580,502
11,012,867
6,739,416
11,239,060
2,207,842
2,240,247
5,895,454
5,937,750
7,382,291
7,479,387
2,193,035
2,245,060
8,098,960
25,777,582
8,212,801
26,115,245
36,790,449
37,354,305
Equity Funds (28.9%)
325,825 AGF Dividend Income Fund –
Series S Units
249,889 AGF Global Dividend Fund –
Series S Units
Fixed Income Funds (67.0%)
217,078 AGF Emerging Markets Bond
Fund – Series S Units
476,545 AGF Fixed Income Plus Fund –
Series S Units
625,890 AGF Global Bond Fund –
Series S Units
403,788 AGF High Yield Bond Fund –
Series S Units
2,451,582 AGF Total Return Bond Fund –
Series S Units
Total Portfolio (95.9%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Shares (“Net Assets”) as at
September 30, 2016 attributable to AGF Elements Yield Portfolio Class (the
“Portfolio”).
126
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Elements Yield Portfolio Class (Note 1)
(CLASS OF AGF ALL WORLD TAX ADVANTAGE GROUP LIMITED)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016, the Portfolio’s major portfolio categories, as
a percentage of Net Assets, are included in the following table:
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 September 30, 2016.
Portfolio by Sector
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
September 30, 2016 are included in the following table:
September 30, 2016
Fair Value of
Portfolio’s
Investment
% of Underlying
($’000) Fund’s Net Assets
AGF Global Bond Fund
AGF Emerging Markets Bond Fund
AGF Total Return Bond Fund
AGF Dividend Income Fund
AGF High Yield Bond Fund
AGF Fixed Income Plus Fund
AGF Global Dividend Fund
7,479
2,240
8,213
4,500
2,245
5,938
6,739
1.4
1.3
1.2
0.7
0.6
0.4
0.3
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following table illustrates the classifications of the Portfolio’s
financial instruments within the fair value hierarchy as at September 30,
2016.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
37,354
37,354
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
37,354
37,354
–
–
There were no significant transfers between levels 1 and 2 during the
period ended September 30, 2016.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the period ended September 30, 2016, the Portfolio did not hold
financial instruments within level 3 of the fair value hierarchy.
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, using historical correlation between the return of the
Mutual Fund Shares as compared to the return of the Portfolio’s
benchmarks, as at 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
Bloomberg Barclays Global Aggregate Index
MSCI All Country World Index
Blended Benchmark
September 30, 2016
4,563
1,864
5,862
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
127
AGF American Growth Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
128
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
170,061
–
2,895
–
39
29
–
–
57
–
173,081
226,314
–
15,028
–
201
–
–
–
49
–
241,592
$
$
–
–
–
–
–
6
84
–
29
–
–
119
172,962
138,396
$
$
–
–
–
–
–
–
116
–
–
–
–
116
241,476
179,348
$
$
$
$
$
$
$
$
$
–
–
–
–
–
172,962
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
241,476
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
30.31
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
34.29
–
–
–
AGF American Growth Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
1,591
12
34,431
2015
$
(15,301)
20,733
–
$
2,849
39
67,628
(14,115)
56,401
–
–
–
7
–
–
36
(1,078)
19,662
2,121
58,558
1,994
2,800
62
20
13
17
–
20
1
2
274
230
55
18
10
9
–
3
1
2
376
356
192
2,825
249
3,879
(2,403)
422
(3,274)
605
19,240
$
57,953
$
$
$
$
$
$
$
$
$
–
–
–
–
–
19,240
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
57,953
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
2.85
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
6.82
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
19,240
2015
$
(35)
(1,426)
(34,431)
(67,628)
15,301
(146,755)
14,115
(209,269)
222,138
–
–
281,266
–
–
(8)
68
–
–
–
–
–
6
75,456
–
–
75,079
–
21,948
(109,572)
(87,624)
–
63,234
(138,493)
(75,259)
35
$
57,953
(12,168)
15,028
2,895
$
1,426
$
$
(180)
13,782
15,028
$
2,667
228
2,895
$
13,546
1,482
15,028
$
$
13
1,353
$
$
38
2,512
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
129
AGF American Growth Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
130
2016
–
–
–
–
–
241,476
–
–
–
241,476
2015
$
–
–
–
–
–
258,416
–
–
–
For the periods ended September 30,
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
2016
$
258,416
–
–
–
–
–
19,240
–
–
–
19,240
–
–
–
–
–
57,953
–
–
–
57,953
–
–
–
–
–
21,786
–
–
–
21,786
–
–
–
–
–
63,406
–
–
–
63,406
–
–
–
–
–
48,057
–
–
–
48,057
–
–
–
–
–
14,593
–
–
–
14,593
–
–
–
–
–
(109,540)
–
–
–
(109,540)
–
–
–
–
–
(138,299)
–
–
–
(138,299)
(39,697)
(60,300)
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.
ANNUAL REPORT 2016
–
–
–
–
–
(2,442)
–
–
–
(2,442)
2015
$
–
–
–
–
–
(45,615)
–
–
–
(45,615)
–
–
–
–
–
(2,370)
–
–
–
(2,370)
–
–
–
–
–
(12,223)
–
–
–
(12,223)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(68,514)
(16,940)
–
–
–
–
–
172,962
–
–
–
–
–
–
–
–
241,476
–
–
–
172,962
$
241,476
AGF American Growth Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares
Average
Cost ($)
Fair
Value ($)
2,958,420
5,597,840
3,242,023
1,755,455
3,984,167
10,022,795
5,288,568
3,183,231
1,798,019
3,821,078
3,363,434
20,901,339
4,826,576
28,940,267
3,256,540
4,211,427
7,467,967
3,528,900
4,058,334
7,587,234
4,213,051
2,033,670
4,434,812
2,737,118
2,629,675
8,876,396
2,774,188
9,946,118
2,059,991
5,226,482
3,772,511
5,201,848
3,871,356
11,157,829
3,733,359
12,707,718
4,489,550
2,456,603
6,066,877
2,818,588
3,006,996
5,569,856
15,523,005
3,427,692
6,020,617
18,333,774
2,508,110
2,611,278
2,521,639
2,668,032
4,767,035
9,886,423
4,935,066
10,124,737
4,658,863
7,811,055
3,362,824
4,369,008
3,494,172
2,416,665
3,966,901
3,290,705
2,280,652
1,735,622
3,146,540
2,372,611
42,905,618
5,544,877
7,786,117
3,772,003
5,085,070
3,512,081
3,736,377
9,007,560
5,553,702
2,616,670
1,864,877
4,894,868
2,407,013
55,781,215
2,949,721
5,453,127
8,402,848
3,148,292
5,966,085
9,114,377
4,627,269
4,161,138
8,788,407
5,720,441
5,304,326
11,024,767
Consumer Discretionary (16.7%)
9,124
57,595
57,306
38,649
40,334
15,459
Amazon.com Inc.
Dollar General Corporation
Lennar Corporation ‘A’
LKQ Corporation
Lowe’s Companies Inc.
Ulta Salon, Cosmetics &
Fragrance Inc.
Average
Cost ($)
Fair
Value ($)
4,562,947
6,501,180
Telecommunication Services (3.8%)
Consumer Staples (4.4%)
16,156 Constellation Brands Inc. ‘A’
20,283 Costco Wholesale Corporation
No. of Shares
106,065 T-Mobile US Inc.
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (98.3%)
(77,268)
138,395,511
–
170,061,387
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF American Growth Fund (the “Fund”).
Energy (5.7%)
24,611 Concho Resources Inc.
48,005 Newfield Exploration Company
11,390 Pioneer Natural
Resources Company
Financials (7.3%)
54,224 Primerica Inc.
68,115 Raymond James Financial Inc.
90,138 The Charles Schwab
Corporation
Health Care (10.6%)
38,357 Edwards Lifesciences
Corporation
2,964 Intuitive Surgical Inc.
19,004 Laboratory Corporation of
America Holdings
32,779 UnitedHealth Group Inc.
Industrials (5.9%)
7,264 Acuity Brands Inc.
15,111 Equifax Inc.
64,744 Fortune Brands Home &
Security Inc.
Information Technology (32.2%)
38,939
7,381
44,287
128,556
15,517
120,421
53,526
61,780
34,465
34,695
52,306
32,605
Adobe Systems Inc.
Alphabet Inc. ‘A’
Amphenol Corporation ‘A’
Applied Materials Inc.
Broadcom Limited
Corning Inc.
Facebook Inc. ‘A’
NVIDIA Corporation
Paychex Inc.
PayPal Holdings Inc.
salesforce.com inc.
Vantiv Inc. ‘A’
Materials (5.3%)
28,070 Albemarle Corporation
39,985 Vulcan Materials Company
Real Estate (6.4%)
38,474 American Tower
Corporation ‘A’
11,223 Equinix Inc.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
131
AGF American Growth Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
September 30, 2016
(%)
United States
98.3
September 30, 2015
(%)
United States
93.7
Portfolio by Sector
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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 75 percent change in
benchmark (September 30, 2015 – 90 percent), using historical
correlation between the return of the Series S Units as compared to the
return of the Fund’s benchmark, as at September 30, 2016 and 2015,
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.
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
September 30, 2015
(%)
Benchmark
Information Technology
Consumer Discretionary
Financials
Health Care
Industrials
Energy
Telecommunication Services
Consumer Staples
30.7
17.8
16.4
13.1
5.4
5.2
3.7
1.4
S&P 500 Net Return Index
S&P 500 Index
Portfolio by Asset Mix
September 30, 2016
(%)
United States Equity
98.3
September 30, 2015
(%)
United States Equity
93.7
Effective December 1, 2015, the Fund’s benchmark was changed from
S&P 500 Index to S&P 500 Net Return Index to better reflect the
investment opportunity set of the Fund.
Impact on Net Assets ($’000)
September 30,
2015
166,259
N/A
N/A
241,153
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
payable for cash collateral under securities lending and payable for
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
132
September 30,
2016
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
September 30, 2016
($’000)
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
172,698
– 172,698
99.8
September 30, 2015
($’000)
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
239,860
– 239,860
99.3
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $3,454,000 (September 30,
2015 – $4,797,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
170,061
–
–
–
170,061
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
170,061
–
–
–
170,061
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
226,314
–
–
–
226,314
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
226,314
–
–
–
226,314
–
–
September 30, 2015
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
133
AGF Asian Growth Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
134
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
312
–
–
–
–
7
–
149
–
–
468
282
–
13
–
–
–
–
159
–
–
454
$
$
–
–
–
–
–
1
1
–
–
–
–
149
151
317
249
$
$
–
–
–
–
–
–
–
–
–
–
–
159
159
295
252
$
$
$
$
$
$
$
$
$
–
–
–
–
–
317
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
295
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
13.04
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
12.13
–
–
–
AGF Asian Growth Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
$
7
–
1
2015
$
8
–
82
33
41
–
(26)
64
–
–
–
0
–
–
0
(1)
40
1
65
3
4
62
20
13
8
–
20
–
2
13
1
37
18
11
10
–
3
–
2
10
1
2
144
2
98
(137)
7
(91)
7
33
$
58
$
$
$
$
$
$
$
$
$
–
–
–
–
–
33
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
58
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
1.36
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
1.87
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
$
$
33
2015
$
58
–
–
(1)
(82)
(33)
(225)
26
(228)
222
–
10
540
–
(159)
–
1
–
–
–
–
–
1
(10)
(3)
–
–
159
315
–
91
(101)
(10)
–
91
(410)
(319)
–
–
(13)
13
–
(4)
17
13
$
$
–
–
–
$
$
3
10
13
$
$
–
6
$
$
–
8
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
135
AGF Asian Growth Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
2016
–
–
–
–
–
295
–
–
–
295
2015
$
–
–
–
–
–
555
–
–
–
For the periods ended September 30,
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
2016
$
555
–
–
–
–
–
33
–
–
–
33
–
–
–
–
–
58
–
–
–
58
–
–
–
–
–
91
–
–
–
91
–
–
–
–
–
91
–
–
–
91
–
–
–
–
–
11
–
–
–
11
–
–
–
–
–
22
–
–
–
22
–
–
–
–
–
(102)
–
–
–
(102)
–
–
–
–
–
(409)
–
–
–
(409)
–
(296)
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.
ANNUAL REPORT 2016
–
–
–
–
–
(11)
–
–
–
(11)
2015
$
–
–
–
–
–
(22)
–
–
–
(22)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
22
(260)
–
–
–
–
–
317
–
–
–
–
–
–
–
–
295
–
–
–
317
$
295
AGF Asian Growth Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Average
Cost ($)
No. of Shares
Fair
Value ($)
China (35.2%)
No. of Shares
Average
Cost ($)
Fair
Value ($)
5,918
6,925
The Philippines (2.2%)
120 Alibaba Group Holding
Limited ADR
25 Baidu Inc. ADR
15,000 Bank of China Limited ‘H’
12,000 China Construction Bank
Corporation ‘H’
500 China Mobile Limited
1,200 China Pacific Insurance Group
Company Limited ‘H’
2,888 China Resources Land Limited
5,000 CNOOC Limited
125 Ctrip.com International
Limited ADR
1,500 Ping An Insurance (Group)
Company of China
Limited ‘H’
500 Tencent Holdings Limited
11,144
6,913
8,619
16,655
5,972
8,982
10,396
7,141
11,671
7,937
5,758
7,774
6,929
5,815
10,551
8,136
7,828
7,637
7,707
7,057
87,266
10,199
18,014
111,569
5,027
6,258
10,463
5,602
7,875
10,342
5,425
7,609
32,194
7,033
8,078
41,518
7,185
9,432
5,811
5,208
11,019
6,313
6,192
12,505
9,523
9,073
8,849
8,701
7,203
16,052
7,639
16,340
4,094
5,754
7,798
5,686
6,041
9,101
8,415
6,760
10,522
15,228
7,021
5,990
47,152
7,174
6,075
58,507
8,231
7,869
8,572
9,313
10,578
27,381
22,915
40,097
6,121
5,861
3,001 Metropolitan Bank and
Trust Company
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (98.5%)
(654)
249,157
–
311,827
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
September 30, 2016 of AGF Asian Growth Fund (the “Fund”).
Hong Kong (13.1%)
1,200 AIA Group Limited
6,000 First Pacific Company Limited
300 Hong Kong Exchanges and
Clearing Limited
9,000 SITC International Holdings
Company Limited
6,000 Value Partners Group Limited
India (3.0%)
100 HDFC Bank Limited ADR
Indonesia (3.9%)
4,000 PT Bank Central Asia Tbk
28,000 PT Bumi Serpong Damai Tbk
Malaysia (2.9%)
2,000 Tenaga Nasional Berhad
Singapore (5.2%)
2,800 Singapore Technologies
Engineering Limited
2,000 Singapore
Telecommunications Limited
South Korea (18.5%)
20 LG Chem Limited
8 LG Household & Health
Care Limited
8 NAVER Corporation
25 POSCO
8 Samsung Electronics
Company Limited
150 Shinhan Financial Group
Company Limited
200 Wonik IPS Company Limited
Taiwan (12.7%)
5,000 Advanced Semiconductor
Engineering Inc.
1,000 Taiwan FamilyMart
Company Limited
3,000 Taiwan Semiconductor
Manufacturing
Company Limited
Thailand (1.8%)
300 The Siam Cement Public
Company Limited NVDR
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
137
AGF Asian Growth Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
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
September 30, 2015
(%)
China
South Korea
Hong Kong
Taiwan
Singapore
India
The Philippines
Indonesia
Thailand
37.0
18.5
11.7
11.0
8.0
2.8
2.4
2.3
1.8
Portfolio by Sector
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
September 30, 2015
(%)
Financials
Information Technology
Industrials
Consumer Staples
Telecommunication Services
Materials
Health Care
Consumer Discretionary
Utilities
39.9
22.3
10.2
6.4
4.9
3.9
3.7
2.2
2.0
138
Portfolio by Asset Mix
September 30, 2016
(%)
International Equity
98.5
September 30, 2015
(%)
International Equity
95.5
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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 55 percent change in
benchmarks (September 30, 2015 – 75 percent), using historical
correlation between the return of the Series S Units as compared to the
return of the Fund’s benchmarks, as at September 30, 2016 and 2015,
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 ($’000)
Benchmark
MSCI Pacific Free ex-Japan Index
MSCI All Country Far East ex-Japan Index
September 30,
2016
September 30,
2015
112
159
102
185
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
payable for cash collateral under securities lending and payable for
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
September 30, 2016
($’000)
Hong Kong Dollar
South Korean Won
United States Dollar
New Taiwanese Dollar
Singapore Dollar
Indonesian Rupiah
Malaysian Ringgit
Philippine Peso
Thai Baht
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
123
59
45
41
16
13
9
7
6
–
–
–
–
–
–
–
–
–
123
59
45
41
16
13
9
7
6
38.8
18.6
14.2
12.9
5.1
4.1
2.8
2.2
1.9
September 30, 2015
($’000)
Hong Kong Dollar
South Korean Won
New Taiwanese Dollar
Singapore Dollar
United States Dollar
Philippine Peso
Indonesian Rupiah
Thai Baht
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
135
55
33
24
20
7
7
5
–
–
–
–
–
–
–
–
135
55
33
24
20
7
7
5
45.6
18.5
11.1
8.1
6.8
2.4
2.3
1.7
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
312
–
–
–
312
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
312
–
–
–
312
–
–
Level 1
Level 2
Level 3
Total
282
–
–
–
282
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
282
–
–
–
282
–
–
September 30, 2015
($’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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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 September 30, 2016 and 2015, 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 $6,000 (September 30, 2015 –
$6,000).
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.
ANNUAL REPORT 2016
139
AGF Canadian Asset Allocation Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
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
September 30,
2016
September 30,
2015
$
$
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 9)
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
140
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
542,434
38
5,724
–
282
4,114
–
–
1,969
–
554,561
613,469
15
13,976
–
149
3,962
–
–
2,597
–
634,168
$
$
–
–
45
–
213
333
1,128
173
4,438
–
–
6,330
548,231
503,121
$
$
–
–
–
–
247
394
1,543
304
6,326
–
–
8,814
625,354
604,611
$
$
$
$
$
$
$
$
$
492,667
947
9,148
28,349
–
–
14,160
2,960
–
$
$
$
$
$
$
$
$
$
569,679
1,071
7,185
29,819
–
–
13,661
3,939
–
$
$
$
$
$
$
$
$
$
25.39
25.54
25.99
28.25
–
–
8.08
11.57
–
$
$
$
$
$
$
$
$
$
26.75
26.86
27.53
29.99
–
–
8.39
12.00
–
AGF Canadian Asset Allocation Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
$
6,323
1,440
7,130
12,210
2015
$
8,592
–
4,589
109,665
30,455
57,558
667
(86,630)
36,216
(12,070)
(22)
645
20
163
(11,907)
77
(75)
58,148
4,969
29,355
12,072
14,741
991
46
12
64
–
44
17
2
1,425
99
1,080
45
12
31
–
42
3
2
1,715
422
450
15,222
1,760
19,853
(110)
15,112
(13)
19,840
43,036
$
9,515
$
$
$
$
$
$
$
$
$
38,136
74
734
2,859
–
–
993
240
–
$
$
$
$
$
$
$
$
$
7,989
16
127
1,106
–
–
201
76
–
$
$
$
$
$
$
$
$
$
1.82
1.86
2.32
2.77
–
–
0.62
0.81
–
$
$
$
$
$
$
$
$
$
0.33
0.38
0.47
1.08
–
–
0.12
0.20
–
For the periods ended September 30,
2016
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
underlying 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
43,036
2015
$
–
(3,977)
(12,877)
(97,595)
(30,433)
(421,857)
86,467
(947,527)
535,624
1,001,383
(1,440)
–
–
–
628
(1,192)
–
–
–
–
(34)
(61)
112,586
(47)
(43)
46,984
(2,896)
29,162
(983)
42,740
(147,104)
(120,838)
(162,020)
(120,263)
–
$
9,515
(8,252)
13,976
5,724
$
3,977
$
$
(73,279)
83,278
13,976
$
225
5,499
5,724
$
10,938
3,038
13,976
$
$
7,782
6,202
$
$
3,341
8,226
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
141
AGF Canadian Asset Allocation Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
2016
569,679
1,071
7,185
29,819
–
–
13,661
3,939
–
625,354
2015
$
677,578
1,323
7,792
31,002
–
–
15,085
5,668
–
For the periods ended September 30,
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
2016
$
738,448
38,136
74
734
2,859
–
–
993
240
–
43,036
7,989
16
127
1,106
–
–
201
76
–
9,515
24,129
19
4,050
1,298
–
–
3,643
243
–
33,382
34,150
15
2,639
3,354
–
–
2,350
251
–
42,759
64,236
124
874
4,437
–
–
974
288
–
70,933
3,259
6
82
631
–
–
535
84
–
4,597
(137,358)
(216)
(2,602)
(5,627)
–
–
(3,619)
(1,354)
–
(150,776)
(149,853)
(283)
(3,361)
(5,643)
–
–
(3,273)
(1,902)
–
(164,315)
(46,461)
(116,959)
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.
ANNUAL REPORT 2016
–
–
–
–
–
–
–
–
–
–
2015
$
–
–
–
–
–
–
–
–
–
–
(66,155)
(125)
(1,093)
(4,437)
–
–
(1,492)
(396)
–
(73,698)
(3,444)
(6)
(94)
(631)
–
–
(102)
(21)
–
(4,298)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1,135)
(217)
–
(1,352)
(77,123)
(113,094)
492,667
947
9,148
28,349
–
–
14,160
2,960
–
569,679
1,071
7,185
29,819
–
–
13,661
3,939
–
548,231
$
625,354
AGF Canadian Asset Allocation Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares/
Units
Average
Cost ($)
Fair
Value ($)
2,572,026
4,058,990
3,558,985
2,183,484
4,519,874
1,609,590
710,614
1,620,140
3,510,736
2,141,046
5,422,337
1,288,713
727,972
1,547,037
1,871,414
2,268,104
1,411,013
20,057,140
1,954,172
22,919,107
3,078,894
1,316,753
4,531,410
1,428,728
1,709,370
4,040,426
10,145,443
1,643,102
4,348,606
11,951,846
Consumer Discretionary (4.2%)
No. of Shares
Average
Cost ($)
Fair
Value ($)
1,813,848
993,925
2,456,360
1,141,129
1,220,732
1,387,743
1,140,189
2,253,269
7,421,963
880,292
2,437,524
8,303,048
1,015,280
912,631
1,020,945
1,144,217
9,436,363
1,057,254
10,904,984
1,080,208
1,940,080
1,004,649
1,827,899
17,194,156
1,997,991
1,163,555
1,785,663
19,097,563
1,890,399
3,181,209
1,361,560
1,766,519
1,415,368
5,519,048
1,164,161
2,671,630
1,133,938
1,325,649
3,039,580
921,714
702,682
2,008,756
2,244,779
3,153,056
1,527,130
2,058,655
1,421,853
6,637,313
1,512,658
3,646,710
1,339,006
2,248,359
3,796,481
1,059,347
755,035
1,981,680
1,100,155
960,332
30,162,700
1,320,995
974,469
35,677,526
6,997,974
1,194,364
2,689,947
6,740,178
1,126,799
4,286,834
2,210,245
25,246,341
7,659,053
1,274,570
3,277,867
6,664,232
1,666,938
4,681,116
2,415,380
27,639,156
1,852,573
2,315,891
1,451,439
1,751,950
5,055,962
1,450,766
2,147,630
5,914,287
10,660,185
8,026,081
2,343,542
21,029,808
11,096,937
8,499,862
2,631,977
22,228,776
3,839,712
3,969,657
Health Care (1.5%)
3,695 Amazon.com Inc.
26,722 Canadian Tire Corporation
Limited ‘A’
23,317 Dollar General Corporation
52,937 Dollarama Inc.
23,200 Lennar Corporation ‘A’
15,648 LKQ Corporation
16,330 Lowe’s Companies Inc.
38,771 Restaurant Brands
International Inc.
6,259 Ulta Salon, Cosmetics
& Fragrance Inc.
15,530 Edwards Lifesciences
Corporation
1,200 Intuitive Surgical Inc.
7,694 Laboratory Corporation of
America Holdings
825 Teva Pharmaceutical Industries
Limited
Convertible Preferred 7.000%
13,271 UnitedHealth Group Inc.
Industrials (3.5%)
2,941 Acuity Brands Inc.
61,418 CAE Inc.
127,157 Canadian National
Railway Company
6,118 Equifax Inc.
26,212 Fortune Brands Home &
Security Inc.
42,825 TransForce Inc.
43,205 WSP Global Inc.
Consumer Staples (2.2%)
71,271 Alimentation Couche-Tard
Inc. ‘B’
6,541 Constellation Brands Inc. ‘A’
8,212 Costco Wholesale
Corporation
100,966 METRO INC.
Energy (8.7%)
Information Technology (6.5%)
90,364 Canadian Natural
Resources Limited
9,964 Concho Resources Inc.
166,462 Enbridge Inc.
78,505 Inter Pipeline Limited
56,387 Keyera Corporation
19,436 Newfield Exploration
Company
82,451 Pason Systems Inc.
36,930 Peyto Exploration &
Development Corporation
4,612 Pioneer Natural
Resources Company
92,762 PrairieSky Royalty Limited
220,253 Raging River Exploration Inc.
208,017 Secure Energy Services Inc.
42,351 ShawCor Limited
320,707 Suncor Energy Inc.
29,462 Tourmaline Oil Corporation
216,412 Whitecap Resources Inc.
15,764
2,989
17,930
52,045
6,282
106,214
48,752
21,670
20,036
25,011
44,675
13,953
14,047
21,176
46,794
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.
NVIDIA Corporation
Open Text Corporation
Paychex Inc.
PayPal Holdings Inc.
salesforce.com inc.
The Descartes Systems
Group Inc.
13,200 Vantiv Inc. ‘A’
3,183,893
1,705,636
8,147,351
1,922,629
2,107,022
3,789,866
1,795,476
9,598,199
2,174,588
2,391,937
853,414
1,450,127
1,108,189
1,384,352
1,100,500
1,359,763
1,064,498
2,419,670
2,137,874
1,853,653
1,251,401
11,351,852
891,887
2,150,583
43,591,990
1,123,315
2,481,384
2,369,922
1,928,318
1,370,902
11,680,149
1,047,079
2,371,876
47,975,315
72,676,924
78,983,015
6,656,506
3,624,009
7,612,472
4,372,808
3,882,361
1,407,863
3,662,920
4,413,949
1,518,131
3,824,423
11,066,938
2,388,919
6,216,804
1,339,339
2,145,342
10,386,261
10,132,837
2,542,811
5,813,140
1,527,330
2,105,941
12,284,805
Telecommunication Services (4.1%)
1,497,880
13,638,748
67,913,890
1,511,518
16,700,145
74,360,310
Utilities (0.7%)
Materials (5.0%)
107,950
11,364
12,976
72,706
73,628
197,933
16,188
Equity Fund (14.4%)
2,317,577 AGF Global Equity Fund –
Series S Units
Financials (13.6%)
88,548 Bank of Montreal
62,900 Bank of Nova Scotia
95,685 Brookfield Asset
Management Inc. ‘A’
60,124 Canadian Western Bank
40,325 Intact Financial Corporation
547,425 Manulife Financial
Corporation
30,096 Onex Corporation
209,181 Power Corporation of Canada
21,953 Primerica Inc.
27,576 Raymond James Financial Inc.
151,179 Royal Bank of Canada
36,494 The Charles
Schwab Corporation
286,747 Toronto-Dominion Bank
Agnico Eagle Mines Limited
Albemarle Corporation
CCL Industries Inc. ‘B’
Franco-Nevada Corporation
Intertape Polymer Group Inc.
Teck Resources Limited ‘B’
Vulcan Materials Company
Real Estate (1.1%)
15,576 American Tower
Corporation ‘A’
30,828 Canadian Real Estate
Investment Trust
4,544 Equinix Inc.
183,148 BCE Inc.
196,347 TELUS Corporation
42,940 T-Mobile US Inc.
94,090 Fortis Inc.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
143
AGF Canadian Asset Allocation Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Corporate Bonds (15.4%)
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
USD
USD
USD
CAD
CAD
CAD
CAD
USD
USD
CAD
CAD
CAD
CAD
USD
CAD
CAD
144
Face Value
Average
Cost ($)
Fair
Value ($)
490,045
502,404
1,685,256
1,823,235
1,432,412
1,440,574
481,902
478,206
806,992
851,379
1,088,136
1,213,421
465,750
470,972
893,011
920,368
1,403,329
1,423,601
374,805
385,562
911,162
951,375
854,535
901,872
747,230
688,774
561,705
567,378
1,023,440
997,082
1,038,498
1,032,857
1,355,364
1,384,928
887,699
927,481
1,822,494
1,852,561
1,315,415
1,374,939
909,531
941,652
737,484
760,774
802,544
863,396
476,836
545,910
288,320
298,170
1,984,534
2,047,684
Corporate Bonds (continued)
1,700,000 407 International Inc.
3.600% May 21, 2047
875,000 Aimia Inc.
5.600% May 17, 2019
845,000 Algonquin Power Company
4.650% February 15, 2022
900,000 Anheuser-Busch InBev
Finance Inc.
3.375% January 25, 2023
1,350,000 Bank of America Corporation
3.228% June 22, 2022
1,790,000 Bank of Montreal
2.100% October 6, 2020
2,640,000 Bank of Nova Scotia
2.750% August 13, 2018
825,000 Bell Canada
4.350% December 18, 2045
1,031,000 Brookfield Asset
Management Inc.
4.540% March 31, 2023
925,000 Brookfield Infrastructure
Finance ULC
3.452% March 11, 2022
950,000 Brookfield Renewable Energy
Partners ULC
3.630% January 15, 2027
850,000 Bruce Power
Limited Partnership
3.969% June 23, 2026
265,000 CalAtlantic Group Inc.
Convertible Bonds
1.250% August 1, 2032
718,000 Canadian Natural
Resources Limited
3.900% February 1, 2025
850,000 Canadian Oil Sands Limited
4.500% Series 144A
April 1, 2022
800,000 Canadian Pacific
Railway Company
5.100% January 14, 2022
700,000 Canadian Pacific
Railway Company
6.450% November 17, 2039
925,000 Canadian Western Bank
2.788% September 13, 2021
850,000 CDP Financial Inc.
4.600% July 15, 2020
425,000 Cemex Finance LLC
6.000% April 1, 2024
675,000 Cenovus Energy Inc.
6.750% November 15, 2039
850,000 Choice Properties
Limited Partnership
3.600% September 20, 2022
950,000 CI Financial Corporation
2.645% December 7, 2020
750,000 CIBC Capital Trust
9.976% Series A
June 30, 2108
1,760,000 Citigroup Inc.
3.390% November 18, 2021
800,000 Citigroup Inc. Floating Rate
5.875% Series O
December 29, 2049
950,000 Cominar Real Estate
Investment Trust
4.247% May 23, 2023
4,700,000 CPPIB Capital Inc.
1.000% January 15, 2019
USD
1,708,933
1,807,189
935,035
895,713
CAD
890,427
910,300
CAD
952,146
965,194
USD
1,419,925
1,408,711
CAD
1,799,436
1,834,471
2,729,892
2,711,015
CAD
771,078
865,208
CAD
1,034,533
1,135,891
CAD
923,945
946,154
CAD
953,021
962,895
CAD
CAD
877,070
905,877
388,208
362,225
CAD
USD
CAD
849,803
945,801
USD
1,081,159
1,144,169
CAD
913,888
916,188
895,412
944,665
CAD
925,000
932,608
CAD
971,031
953,740
CAD
574,992
571,518
CAD
746,510
957,071
USD
889,603
903,762
USD
950,000
964,266
CAD
948,285
893,578
1,827,922
1,857,949
CAD
1,057,741
1,060,161
USD
962,949
4,702,988
974,179
4,707,226
CAD
297,000 Ctrip.com International Limited
Convertible Bonds
1.250% October 15, 2018
1,800,000 Enbridge Inc.
4.570% March 11, 2044
1,275,000 Fairfax Financial
Holdings Limited
6.400% May 25, 2021
400,000 FireEye Inc.
Convertible Bonds
1.625% June 1, 2035
775,000 First Capital Realty Inc.
4.323% Series S
July 31, 2025
1,050,000 FortisAlberta Inc.
4.270% September 22, 2045
450,000 Great Canadian
Gaming Corporation
6.625% July 25, 2022
655,000 Greater Toronto
Airports Authority
6.450% December 3, 2027
1,365,000 Heathrow Funding Limited
3.000% June 17, 2021
375,000 Husky Energy Inc.
3.550% March 12, 2025
905,000 Hydro One Inc.
2.770% February 24, 2026
660,000 Intact Financial Corporation
6.400% November 23, 2039
600,000 Intesa Sanpaolo SpA
7.700% December 29, 2049
570,000 Just Energy Group Inc.
Convertible Bonds
6.000% June 30, 2017
800,000 Just Energy Group Inc.
Convertible Bonds
6.500% July 29, 2019
975,000 Leisureworld Senior Care
Limited Partnership
3.474% Series B
February 3, 2021
1,200,000 Loblaw Companies Limited
4.860% September 12, 2023
885,000 Magna International Inc.
3.100% December 15, 2022
1,775,000 Morgan Stanley
3.125% August 5, 2021
925,000 NAV Canada
7.400% June 1, 2027
725,000 Navistar International
Corporation
8.250% November 1, 2021
532,000 Newmont Mining Corporation
Convertible Bonds
1.625% Series B
July 15, 2017
800,000 North West Redwater
Partnership/NWR Financing
Company Limited
4.050% July 22, 2044
465,000 Northland Power Inc.
Convertible Bonds
4.750% June 30, 2020
222,000 Novelis Corporation
5.875% Series 144A
September 30, 2026
1,940,000 OMERS Realty Corporation
2.858% February 23, 2024
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Average
Cost ($)
Face Value
Fair
Value ($)
Corporate Bonds (continued)
CAD
USD
USD
CAD
USD
CAD
CAD
USD
CAD
USD
CAD
CAD
CAD
CAD
USD
USD
CAD
CAD
CAD
CAD
USD
CAD
USD
PEN
330,000 Cemex SAB de CV
Convertible Bonds
3.750% March 15, 2018
320,000 Republic of Hungary
6.250% January 29, 2020
2,190,000 Republic of Peru
7.840% August 12, 2020
Average
Cost ($)
Fair
Value ($)
1,545,345
3,437,868
1,369,211
3,272,354
1,695,072
1,820,037
1,904,797
1,893,027
1,919,875
1,901,602
3,875,562
3,713,569
4,785,142
5,104,905
2,831,488
2,945,611
1,853,690
1,925,405
6,049,544
24,915,170
6,485,357
25,789,513
7,942,169
7,897,249
1,422,638
1,424,059
1,402,380
1,399,664
5,185,362
15,952,549
5,363,436
16,084,408
354,114
378,845
641,872
666,635
949,473
991,588
171,443
168,914
511,077
519,942
637,202
523,140
610,557
476,533
913,716
926,933
455,000
455,569
719,446
5,963,900
844,633
5,952,732
Emerging Markets Bonds (continued)
925,000 Parkland Fuel Corporation
5.750% September 16, 2024
435,000 Pattern Energy Group Inc.
Convertible Bonds
4.000% July 15, 2020
710,000 Prudential Financial Inc.
Floating Rate
5.625% June 15, 2043
1,900,000 PSP Capital Inc.
1.340% August 18, 2021
325,000 Red Hat Inc.
Convertible Bonds
0.250% October 1, 2019
925,000 RioCan Real Estate
Investment Trust
3.287% Series W
February 12, 2024
2,500,000 Royal Bank of Canada
2.480% June 4, 2025
290,000 salesforce.com inc.
Convertible Bonds
0.250% April 1, 2018
410,000 Scotiabank Tier 1 Trust
Floating Rate
7.802% June 30, 2108
331,000 ServiceNow Inc.
Zero Coupon
Convertible Bonds
November 1, 2018
1,880,000 Sun Life Financial Inc.
Floating Rate
2.600% September 25, 2025
475,000 TD Capital Trust IV
Floating Rate
6.631% June 30, 2108
1,650,000 TELUS Corporation
5.150% November 26, 2043
950,000 The Manufacturers Life
Insurance Company
Floating Rate
4.165% June 1, 2022
195,000 The Priceline Group Inc.
Convertible Bonds
0.900% September 15, 2021
625,000 The Royal Bank of Scotland
Group PLC
7.648% August 29, 2049
1,225,000 Thomson Reuters Corporation
4.350% September 30, 2020
975,000 Toromont Industries Limited
3.710% September 30, 2025
2,800,000 Toronto-Dominion Bank
2.045% March 8, 2021
96,000 Tricon Capital Group Inc.
Convertible Bonds
5.600% March 31, 2020
700,000 UBS Group AG Floating Rate
7.000% December 29, 2049
1,705,000 Wells Fargo & Company
3.874% May 21, 2025
MXN
945,313
950,052
555,961
574,265
961,868
1,004,885
1,899,449
1,905,788
CAD
CAD
572,925
539,642
912,143
954,263
CAD
2,487,413
2,487,769
USD
487,102
454,894
USD
CAD
USD
488,113
465,998
507,858
528,706
18,000,000 United Mexican States
8.000% Series M
December 7, 2023
Government Bonds (4.7%)
CAD
1,325,000 Canada Post Corporation
4.360% July 16, 2040
890,000 Government of Canada
Real Return Bonds
4.250% December 1, 2026
1,250,000 Government of Canada
5.750% June 1, 2029
1,900,000 Government of Canada
Real Return Bonds
3.000% December 1, 2036
3,215,000 Government of Canada
5.000% June 1, 2037
2,120,000 U.S. Treasury Inflation Index
Linked Notes
0.125% January 15, 2023
1,390,000 U.S. Treasury
2.250% November 15, 2024
3,512,500 U.S. Treasury
4.500% February 15, 2036
Government Guaranteed Investments (2.9%)
CAD
CAD
1,881,285
1,898,712
CAD
567,606
557,866
1,831,502
1,881,802
989,995
965,279
CAD
271,608
274,698
USD
USD
967,569
981,913
1,333,278
1,335,292
USD
975,000
1,015,475
USD
2,822,789
2,861,621
USD
103,192
106,560
968,890
968,875
1,764,487
82,814,707
1,815,567
84,614,201
USD
CAD
CAD
480,166
485,979
463,210
471,798
949,147
945,366
7,625,000 Canada Housing Trust
2.350% December 15, 2018
1,425,000 Canada Housing Trust
Floating Rate
0.840% September 15, 2019
1,400,000 Canada Housing Trust
1.075% September 15, 2021
4,475,000 Labrador-Island Link
Funding Trust
3.760% Series A
June 1, 2033
High Yield Bonds (1.1%)
USD
Emerging Markets Bonds (0.6%)
USD
Face Value
USD
276,000 Ally Financial Inc.
5.750% November 20, 2025
500,000 Cascades Inc.
5.500% July 15, 2022
725,000 CCO Holdings LLC/
Capital Corporation
5.125% February 15, 2023
125,000 Cott Beverages Inc.
5.375% July 1, 2022
425,000 Frontier Communications
Corporation
7.125% January 15, 2023
500,000 ILFC E-Capital Trust II
Floating Rate
4.250% December 21, 2065
435,000 Neiman Marcus Group
Limited LLC
8.000% October 15, 2021
880,000 Quebecor Media Inc.
6.625% January 15, 2023
455,000 Sirius XM Canada
Holdings Inc.
5.625% April 23, 2021
555,000 Western Digital Corporation
10.500% Series 144A
April 1, 2024
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
145
AGF Canadian Asset Allocation Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Municipal Bond (0.4%)
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
Average
Cost ($)
Fair
Value ($)
476,255
486,845
3,141,464
3,268,119
1,861,275
5,478,994
1,879,263
5,634,227
Supranational Bonds (1.0%)
1,700,000 City of Montreal
3.500% September 1, 2023
1,844,500
1,868,085
1,864,839
1,907,028
1,868,079
1,875,398
5,381,497
5,565,088
2,304,344
2,334,426
1,301,564
1,415,826
941,276
935,678
6,852,147
7,034,327
8,638,037
9,285,332
3,815,917
3,719,405
1,901,045
1,900,475
1,428,043
1,446,235
2,621,606
38,918,394
2,779,206
40,198,424
Provincial Bonds (7.3%)
CAD
Face Value
1,870,000 Province of Alberta
2.200% June 1, 2026
1,700,000 Province of Alberta
3.300% December 1, 2046
3,985,000 Province of British Columbia
5.700% June 18, 2029
2,225,000 Province of Manitoba
2.550% June 2, 2026
1,100,000 Province of Manitoba
4.600% March 5, 2038
925,000 Province of Ontario
1.900% September 8, 2017
6,475,000 Province of Ontario
2.850% June 2, 2023
6,400,000 Province of Ontario
5.600% June 2, 2035
3,450,000 Province of Quebec
4.500% December 1, 2018
1,900,000 Province of Quebec
1.297% April 19, 2022
1,290,000 Province of Quebec
3.500% December 1, 2022
1,875,000 Province of Quebec
5.750% December 1, 2036
IDR 4,760,000,000 European Bank for
Reconstruction
and Development
7.375% April 15, 2019
CAD
2,690,000 Inter-American
Development Bank
4.400% January 26, 2026
CAD
1,875,000 International Bank for
Reconstruction
and Development
1.250% March 18, 2021
Commissions and other portfolio
transaction costs (Note 2)
(540,933)
Total Investments (98.9%)
503,121,178
Foreign Exchange Forward Contracts (-0.0%)
See Schedule A
Total Portfolio (98.9%)
–
503,121,178
–
542,433,550
(6,919)
542,426,631
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF Canadian Asset Allocation Fund (the “Fund”).
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
CAD
146
2,779,382
4,527,530
17,685,667
USD
USD
USD
Sold Currency
Forward Rate
Maturity Date
2,100,000
3,441,000
13,518,000
1.3235
1.3158
1.3083
October 14, 2016
October 14, 2016
October 31, 2016
Fair Value ($)
24,581
13,592
(45,092)
(6,919)
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Counterparty
Credit Rating
Bank of Nova Scotia
Bank of Nova Scotia
Royal Bank of Canada
A
A
AA
AGF Canadian Asset Allocation Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
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)
September 30, 2015
(%)
Canada
United States
Jersey
Norway
Foreign Exchange Forward Contracts
78.2
19.3
0.3
0.3
0.0
Portfolio by Sector
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)
September 30, 2015
(%)
Corporate Bonds
Equity Funds
Financials
Provincial Bonds
Government Bonds
Information Technology
Consumer Discretionary
Government Guaranteed Investments
Energy
Health Care
Industrials
Consumer Staples
Telecommunication Services
Supranational Bonds
Materials
High Yield Bonds
Foreign Exchange Forward Contracts
17.4
14.7
13.9
8.5
7.3
6.4
5.5
5.0
4.7
3.5
3.3
2.9
2.9
1.0
0.8
0.3
0.0
Portfolio by Asset Mix
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)
September 30, 2015
(%)
Canadian Equity
Canadian Fixed Income
United States Equity
United States Fixed Income
International Fixed Income
Foreign Exchange Forward Contracts
44.7
33.5
13.9
5.4
0.6
0.0
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the underlying funds as at
September 30, 2016 and 2015 are included in the following tables:
September 30, 2016
AGF Global Equity Fund
September 30, 2015
AGF Global Equity Fund
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
78,983
9.4
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
91,985
17.5
147
AGF Canadian Asset Allocation Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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
S&P/TSX Composite Index
FTSE TMX Canada Universe Bond Index
Blended Benchmark
September 30,
2015
69,234
47,310
108,011
64,186
33,555
95,649
The Blended Benchmark is composed of 60% S&P/TSX Composite
Index and 40% FTSE TMX Canada Universe Bond Index.
10.0
3.7
9.4
7.6
1.7
0.9
0.3
1.1
13.7
4.3
12.7
9.9
0.8
0.2
0.1
0.0
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
September 30,
2015
2,264
24,811
23,730
132,609
–
9,847
53,072
184,263
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 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 September 30,
2016 and 2015, were as follows:
September 30, 2016
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at September 30, 2016 and 2015, 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 $3,274,000 (September 30, 2015 – $4,461,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 25 percent change in
benchmarks (September 30, 2015 – 20 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at September 30, 2016 and
2015, with all other variables held constant, is included in the following
table. Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
148
September 30,
2016
September 30,
2015
($’000)
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
Benchmark
September 30,
2016
Interest Rate Risk
As at September 30, 2016 and 2015, the Fund’s exposure to debt
instruments by maturity was as follows:
Debt Instruments*
by Maturity Date
Impact on Net Assets ($’000)
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
Mexican Peso
Peruvian New Sol
Indonesian Rupiah
102,310
1,369
945
487
(24,999) 77,311
–
1,369
–
945
–
487
14.1
0.3
0.2
0.1
September 30, 2015
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
108,432
(17,017) 91,415
14.6
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $1,602,000 (September 30,
2015 – $1,828,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’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
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
274,302
–
–
91,985
366,287
–
–
–
247,182
–
–
247,182
15
–
–
–
–
–
–
–
–
274,302
247,182
–
91,985
613,469
15
–
–
–
–
–
–
–
–
Total
280,037
183,414
–
78,983
542,434
38
(45)
September 30, 2015
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
149
AGF Canadian Large Cap Dividend Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
150
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
1,476,595
37
5,443
–
647
1,147
–
–
2,916
622
1,487,407
1,536,447
33
5,920
–
607
12,694
–
–
3,641
535
1,559,877
$
$
–
–
–
–
380
981
2,081
88
2,411
–
–
5,941
1,481,466
1,066,234
$
$
–
–
395
–
391
867
2,671
104
8,955
–
–
13,383
1,546,494
1,179,058
$
$
$
$
$
$
$
$
$
$
138,058
1,160,109
11,556
28,104
485
2,003
124,374
13,941
2,836
–
$
$
$
$
$
$
$
$
$
$
139,310
1,195,658
11,780
20,104
411
756
163,717
11,886
2,872
–
$
$
$
$
$
$
$
$
$
$
11.26
47.74
49.33
50.39
11.12
10.07
53.30
9.23
12.15
–
$
$
$
$
$
$
$
$
$
$
10.18
43.01
44.38
45.08
10.30
9.31
47.15
9.03
11.51
–
AGF Canadian Large Cap Dividend Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
$
41,818
268
92,881
2015
$
56,185
73
354,370
52,972
187,939
(553)
(251,716)
158,912
(11,137)
399
(154)
133
1,404
(9,733)
210
198
188,116
(280)
149,109
22,025
29,586
2,225
85
12
133
–
65
17
2
2,541
2,769
2,892
79
12
168
–
82
6
2
3,369
2,966
937
30,811
1,434
40,596
(1,839)
28,972
(2,072)
38,524
159,144
$
110,585
$
$
$
$
$
$
$
$
$
$
13,596
119,617
1,227
2,681
63
113
20,156
1,391
300
–
$
$
$
$
$
$
$
$
$
$
2,206
100,616
304
172
(22)
(10)
6,970
246
103
–
$
$
$
$
$
$
$
$
$
$
1.05
4.61
4.83
5.45
1.27
1.02
6.24
1.00
1.26
–
$
$
$
$
$
$
$
$
$
$
0.16
2.77
1.19
0.45
(1.27)
(0.54)
2.02
0.19
0.39
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
159,144
2015
$
11
110,585
1,376
(92,328)
(343,233)
(53,371)
(555,093)
250,312
(761,979)
765,248
–
–
1,733,473
–
–
725
977
–
(87)
4
(150)
(11)
114
224,352
(222)
(457)
990,686
(517)
108,380
(7,237)
127,370
(332,681)
(224,818)
(1,108,770)
(988,637)
(11)
(1,376)
(466)
5,920
5,443
$
$
$
$
2,049
5,247
5,920
$
4,365
1,078
5,443
$
5,920
–
5,920
$
$
268
39,785
$
$
77
54,017
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
151
AGF Canadian Large Cap Dividend Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
152
2016
139,310
1,195,658
11,780
20,104
411
756
163,717
11,886
2,872
–
1,546,494
2015
$
157,572
2,039,210
13,201
17,429
–
–
180,076
13,402
3,585
–
2,424,475
For the periods ended September 30,
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
13,596
119,617
1,227
2,681
63
113
20,156
1,391
300
–
159,144
2,206
100,616
304
172
(22)
(10)
6,970
246
103
–
110,585
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
19,742
70,450
523
9,310
225
2,187
11,518
3,342
239
–
117,536
21,450
80,905
1,247
7,560
439
767
17,719
2,489
401
–
132,977
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
–
72
–
–
23
50
–
607
72
–
824
20,208
283,658
1,676
2,677
–
–
29,701
1,129
168
–
339,217
(34,590)
(225,632)
(1,974)
(3,991)
(214)
(1,053)
(71,017)
(2,232)
(504)
–
(341,207)
(41,215)
(1,019,920)
(2,889)
(4,965)
(6)
(1)
(41,048)
(3,311)
(962)
–
(1,114,317)
(222,847)
(642,123)
2016
$
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.
ANNUAL REPORT 2016
–
(56)
–
–
(8)
(17)
–
(141)
(25)
–
(247)
2015
$
(956)
(18,048)
(158)
(506)
–
–
(7,839)
(137)
(30)
–
(27,674)
–
–
–
–
(15)
(33)
–
(85)
(16)
–
(149)
(16,041)
(168,921)
(1,280)
(2,079)
–
–
(18,752)
(985)
(239)
–
(208,297)
–
–
–
–
–
–
–
(827)
(102)
–
(929)
(3,914)
(101,842)
(321)
(184)
–
–
(3,110)
(947)
(154)
–
(110,472)
(65,028)
(877,981)
138,058
1,160,109
11,556
28,104
485
2,003
124,374
13,941
2,836
–
1,481,466
139,310
1,195,658
11,780
20,104
411
756
163,717
11,886
2,872
–
$
1,546,494
AGF Canadian Large Cap Dividend Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares/
Units
Average
Cost ($)
Fair
Value ($)
Consumer Discretionary (4.1%)
No. of Units/
Shares
Fair
Value ($)
8,850,046
5,395,856
11,469,113
7,836,936
3,415,180
42,406,334
3,644,640
49,250,169
2,479,430
2,371,180
5,227,901
6,639,071
1,226,295
1,568,542
5,775,740
14,709,366
11,941,487
22,520,280
4,788,686
6,375,758
13,733,657
27,230,191
5,090,544
5,475,188
4,381,438
14,907,198
42,342,964
5,168,755
11,250,557
24,430,448
2,687,676
14,552,313
9,532,948
2,909,478
26,732,500
11,932,726
4,152,050
5,452,610
8,588,246
5,995,612
5,912,395
2,088,257
6,572,096
11,699,898
7,608,330
3,086,996
854,905
17,840,810
6,503,587
11,397,215
40,406,394
15,830,229
796,195
26,702,153
8,267,687
284,997,995
4,689,192
5,037,240
16,224,502
8,501,517
11,029,892
2,480,910
8,355,414
18,283,102
6,663,926
4,480,956
798,671
18,993,111
7,889,718
23,015,092
57,720,603
18,518,922
1,242,325
54,559,232
13,007,306
419,772,326
8,146,825
11,130,491
4,427,935
11,131,097
8,797,580
20,260,303
6,941,821
14,665,998
4,739,796
5,409,837
2,445,009
42,021,153
2,008,656
58,084,195
9,516,243
5,553,923
5,290,703
11,483,974
8,722,225
7,624,812
5,089,395
16,169,705
19,271,261
2,482,221
24,238,004
2,566,880
ETFs – International Equity (continued)
20,300 Canadian Tire Corporation
Limited ‘A’
46,900 Dollarama Inc.
51,400 IMAX Corporation
87,372 Kia Motors Corporation
227,900 Magna International Inc.
152,713 Omnicom Group Inc.
185,617 Persimmon PLC
154,932 Restaurant Brands
International Inc.
455,761 Singapore Press
Holdings Limited
2,453,041
1,560,156
2,607,946
5,042,005
8,230,607
10,024,379
2,932,009
2,667,014
4,803,967
1,953,569
4,386,941
12,835,328
17,029,905
5,728,811
7,776,636
9,063,522
1,583,053
42,209,832
1,670,554
60,139,611
697,132 iShares MSCI Japan ETF
238,368 iShares MSCI Netherlands ETF
47,790 iShares MSCI South Korea
Capped ETF
ETFs – United States Equity (1.5%)
40,900 SPDR S&P
Pharmaceuticals ETF
262,200 The Financial Select Sector
SPDR Fund
36,484 The Real Estate Select Sector
SPDR Fund
190,500 The Technology Select Sector
SPDR Fund
Consumer Staples (10.7%)
322,402 Alimentation Couche-Tard
Inc. ‘B’
252,890 Altria Group Inc.
92,507 Anheuser-Busch InBev SA/NV
178,633 British American Tobacco PLC
302,500 Cott Corporation
92,000 Henkel AG & Company KGaA
187,900 Loblaw Companies Limited
417,200 Maple Leaf Foods Inc.
173,009 Mondelez International Inc. ‘A’
188,496 Philip Morris International Inc.
57,354 The Kraft Heinz Company
10,010,535
9,117,411
8,098,266
9,130,134
6,598,732
6,962,560
10,092,560
9,718,937
5,796,890
15,894,839
5,138,211
96,559,075
20,498,319
20,978,388
15,896,727
14,975,410
5,647,675
14,046,954
12,683,250
12,561,892
9,964,385
24,042,246
6,735,232
158,030,478
7,591,177
11,342,805
8,629,197
10,346,598
11,337,543
7,306,952
17,424,221
15,922,971
8,725,463
27,438,837
3,697,994
10,040,883
2,599,386
2,261,441
4,913,885
2,677,618
12,686,853
4,335,000
12,910,435
117,933
1,667,793
4,945,320
2,692,440
13,977,390
1,387,548
721,509
6,247,016
3,552,128
7,677,117
3,237,716
1,596,810
9,084,144
4,330,682
8,268,835
1,031,238
18,825,696
4,049,344
6,649,371
11,842,020
5,521,886
10,330,845
4,929,592
4,689,130
2,866,665
7,801,978
3,045,959
185,283,669
14,529,958
3,259,659
10,134,885
5,393,343
5,056,054
2,900,064
9,514,239
2,984,597
201,766,494
4,794,134
9,902,985
10,048,133
4,256,582
12,551,188
9,491,710
Financials (28.4%)
627,933
753,208
173,400
609,076
76,625
529,600
28,600
162,166
726,719
6,100
Energy (13.6%)
246,700 Canadian Natural
Resources Limited
602,100 Cenovus Energy Inc.
4,490,597 CNOOC Limited
504,362 Crescent Point
Energy Corporation
475,873 Enbridge Inc.
127,500 Enbridge Income Fund
Holdings Inc.
112,748 Exxon Mobil Corporation
64,743 Fred. Olsen Energy ASA
103,783 Husky Energy Inc.
120,500 Imperial Oil Limited
97,200 Inter Pipeline Limited
329,500 Keyera Corporation
131,800 Petroleo Brasileiro SA Petrobras Preferred
208,504 Peyto Exploration &
Development Corporation
590,824 Precision Drilling Corporation
336,248 PTT Exploration and Production
Public Company
Limited (Foreign)
1,749,600 Raging River Exploration Inc.
119,244 Royal Dutch Shell PLC ‘B’
717,300 Secure Energy Services Inc.
460,100 Seven Generations
Energy Limited
100,700 ShawCor Limited
278,278 Suncor Energy Inc.
133,776 The Williams Companies Inc.
81,353 TOTAL SA
81,600 Tourmaline Oil Corporation
152,692 TransCanada Corporation
172,474 WPX Energy Inc.
156,000
115,468
524,885
116,300
852,765
203,668
209,278
146,795
72,701
861,000
1,026,100
135,353
162,012
710,320
433,800
22,900
936,800
280,784
AIA Group Limited
Banco Santander SA
Bank of Montreal
Bank of Nova Scotia
BNP Paribas SA
Brookfield Asset Management
Inc. ‘A’
Canadian Imperial Bank
of Commerce
Chubb Limited
Element Financial Corporation
Fairfax Financial
Holdings Limited
Great-West Lifeco Inc.
Hannover Rueck SE
ING Groep NV
Intact Financial Corporation
Intesa Sanpaolo SpA
Invesco Limited
JPMorgan Chase & Company
Komercni Banka AS
Lincoln National Corporation
Lloyds Banking Group PLC
Manulife Financial Corporation
MetLife Inc.
Moody’s Corporation
Royal Bank of Canada
Sun Life Financial Inc.
Thomson Reuters Corporation
Toronto-Dominion Bank
Unum Group
Health Care (3.9%)
106,322
995,225
98,131
45,063
89,622
AbbVie Inc.
Astellas Pharma Inc.
Bristol-Myers Squibb Company
Roche Holding AG
Teva Pharmaceutical Industries
Limited ADR
62,400 Valeant Pharmaceuticals
International Inc.
Industrials (12.9%)
ETFs – International Equity (3.3%)
291,245 Global X MSCI Norway ETF
197,254 iShares MSCI China ETF
275,402 iShares MSCI Germany ETF
Average
Cost ($)
177,481
725,091
409,276
188,546
AGCO Corporation
Brambles Limited
CAE Inc.
Canadian National
Railway Company
121,075 Canadian Pacific
Railway Limited
105,200 Finning International Inc.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
153
AGF Canadian Large Cap Dividend Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
No. of Shares
Average
Cost ($)
Fair
Value ($)
13,769,442
26,692,023
1,293,622
4,954,385
3,841,014
3,083,264
6,756,422
6,528,000
5,771,547
5,519,200
6,575,024
17,058,196
6,554,069
6,415,485
7,097,500
11,000,758
10,349,445
4,631,969
124,923,060
12,649,227
12,966,006
19,932,608
4,380,980
190,906,472
4,502,186
5,687,664
2,904,737
4,876,693
4,361,799
10,966,995
3,134,526
3,337,972
4,196,779
7,257,940
6,015,881
8,107,393
8,227,252
6,704,958
24,207,773
11,098,388
3,047,053
4,524,784
13,842,818
2,076,660
9,062,779
72,547,895
21,810,808
4,656,053
6,252,302
108,314,298
10,260,584
9,990,390
287,741
10,034,641
19,433,205
11,123,616
372,456
15,540,870
3,560,375
5,448,914
5,721,848
2,508,763
1,725,012
6,766,720
3,608,083
11,210,018
3,966,907
2,194,800
1,894,869
6,134,064
4,918,661
4,017,389
6,269,481
731,574
672,820
5,352,111
8,475,523
86,742,547
3,885,700
6,124,032
8,949,160
279,306
244,730
5,921,468
8,642,805
109,526,089
No. of Shares/
Face Value
174,503 Honeywell International Inc.
19,083 Huntington Ingalls
Industries Inc.
594,598 Keppel Corporation Limited
81,600 MacDonald Dettwiler &
Associates Limited
60,772 Northrop
Grumman Corporation
71,658 Schneider Electric SE
124,500 SNC-Lavalin Group Inc.
70,572 The Dun &
Bradstreet Corporation
132,509 Waste Connections Inc.
238,286 Waste Management Inc.
106,000 WSP Global Inc.
280,536 Brookfield Property Partners
Limited Partnership
78,700 Canadian Apartment Properties
105,400 First Capital Realty Inc.
113,699 Forestar Group Inc.
136,600 Keppel Real Estate
Investment Trust
270,200 RioCan Real Estate
Investment Trust
25,471
130,600
2,377
23,010
371,015
81,506
Canon Inc.
CGI Group Inc. ‘A’
Constellation Software Inc.
DH Corporation
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
Materials (7.4%)
273,900
93,541
3,067
669,000
332,236
122,300
183,031
147,500
365,100
131,238
182,000
172,800
378,400
38,708
39,393
130,450
1,529,700
5,979,279
2,274,040
2,382,040
2,678,304
8,416,080
2,409,794
2,316,692
1,746,750
149,186
146,529
7,339,788
20,802,637
7,354,844
22,390,689
4,185,568
12,493,540
6,008,299
14,087,175
7,794,063
17,722,450
13,259,759
37,732,930
15,729,516
53,547,440
2,070,390
6,813,067
3,616,844
8,117,612
13,804,846
4,321,232
8,615,151
19,749,450
1,947,514
1,947,933
649,064
2,596,578
649,032
2,596,965
Telecommunication Services (3.6%)
112,772 AT&T Inc.
232,500 BCE Inc.
296,885 Nippon Telegraph and
Telephone Corporation
282,600 Rogers Communications
Inc. ‘B’
Information Technology (7.3%)
32,173
Fair
Value ($)
Real Estate (1.5%)
Industrials (continued)
115,320
175,500
5,300
117,700
150,885
Average
Cost ($)
Agnico Eagle Mines Limited
Agrium Inc.
Arkema SA
Barrick Gold Corporation
First Quantum
Minerals Limited
Franco-Nevada Corporation
Goldcorp Inc.
Interfor Corporation
Lundin Mining Corporation
Methanex Corporation
Potash Corporation of
Saskatchewan Inc.
Silver Wheaton Corporation
Teck Resources Limited ‘B’
Vale SA ADR
Vale SA Preferred ‘A’
Voestalpine AG
Yamana Gold Inc.
Utilities (1.3%)
149,870 Brookfield Infrastructure
Partners Limited Partnership
107,200 Brookfield Renewable Energy
Partners Limited Partnership
182,100 Emera Inc.
Short-Term Investments (0.2%)
CAD
CAD
1,950,000 Government of Canada
Treasury Bill
0.509% December 15, 2016
650,000 Government of Canada
Treasury Bill
0.498% January 12, 2017
Commissions and other portfolio
transaction costs (Note 2)
(1,104,137)
–
Total Investments (99.7%)
1,066,233,780 1,476,594,956
Foreign Exchange Forward Contracts (0.0%)
See Schedule A
–
Total Portfolio (99.7%)
37,346
1,066,233,780 1,476,632,302
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
September 30, 2016 of AGF Canadian Large Cap Dividend Fund (the
“Fund”).
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
154
24,520,637
USD
Sold Currency
Forward Rate
Maturity Date
Fair Value ($)
Counterparty
Credit Rating
18,673,000
1.3132
December 20, 2016
37,346
37,346
Toronto-Dominion Bank
AA
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Canadian Large Cap Dividend Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
September 30, 2016
(%)
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
September 30, 2015
(%)
Canada
United States
Japan
Germany
South Korea
United Kingdom
France
China
Netherlands
Switzerland
Belgium
Bermuda
Australia
Austria
Singapore
Hong Kong
Spain
Israel
Norway
Italy
Thailand
Brazil
Foreign Exchange Forward Contracts
52.3
24.4
5.7
2.3
2.2
2.1
1.6
1.3
1.2
1.1
1.0
0.8
0.5
0.4
0.4
0.4
0.4
0.4
0.3
0.3
0.1
0.1
(0.0)
Portfolio by Sector
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
September 30, 2015
(%)
Financials
Energy
Industrials
Consumer Staples
Health Care
Consumer Discretionary
Information Technology
Materials
Telecommunication Services
ETFs – International Equity
ETFs – United States Equity
Utilities
Short-Term Investments
Foreign Exchange Forward Contracts
31.3
11.9
11.4
9.7
7.1
7.1
6.1
4.5
4.3
2.8
2.1
0.8
0.2
(0.0)
Portfolio by Asset Mix
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
September 30, 2015
(%)
Canadian Equity
United States Equity
International Equity
Short-Term Investments
Foreign Exchange Forward Contracts
52.1
24.4
22.6
0.2
(0.0)
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
155
AGF Canadian Large Cap Dividend Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
September 30, 2016 and 2015 are included in the following tables:
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
September 30, 2015
Global X MSCI Norway ETF
iShares MSCI Netherlands ETF
iShares MSCI China ETF
iShares MSCI France ETF
The Technology Select Sector SPDR Fund
The Financial Select Sector SPDR Fund
iShares MSCI Japan ETF
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
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
4,415
8,318
12,861
1,698
15,903
16,774
15,716
5.3
3.8
0.5
0.3
0.1
0.1
0.1
Impact on Net Assets ($’000)
Benchmark
S&P/TSX Composite Index
S&P/TSX 60 Index
Credit Risk
As at September 30, 2016 and 2015, 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.
283,726
299,190
236,771
241,064
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 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 September 30,
2016 and 2015, were as follows:
September 30, 2016
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
(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
Percentage of
Net Assets (%)
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 impact on Net Assets of the Fund due to a 25 percent change in
benchmarks (September 30, 2015 – 20 percent), using historical
correlation between the return of the Classic Series Units as compared
to the return of the Fund’s benchmarks, as at September 30, 2016 and
2015, 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 Classic Series Units, save for
differences in expense structure.
156
September 30,
2015
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
($’000)
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
September 30,
2016
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
September 30, 2015
($’000)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
South Korean Won
Swiss Franc
Hong Kong Dollar
Australian Dollar
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
443,186
101,749
75,996
32,881
18,731
17,710
12,973
8,586
6,150
899
574
524
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
Percentage of
Net Assets (%)
(38,130) 405,056
– 101,749
–
75,996
–
32,881
–
18,731
–
17,710
–
12,973
–
8,586
–
6,150
–
899
–
574
–
524
26.2
6.6
4.9
2.1
1.2
1.1
0.8
0.6
0.4
0.1
0.0
0.0
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $13,384,000 (September 30,
2015 – $13,637,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
1,472,967
–
–
–
1,472,967
–
–
1,031
–
2,597
–
3,628
37
–
–
–
–
–
–
–
–
1,473,998
–
2,597
–
1,476,595
37
–
Level 1
Level 2
Level 3
September 30, 2015
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
1,532,900
–
–
–
1,532,900
–
–
899
–
2,648
–
3,547
33
(395)
–
–
–
–
–
–
–
Total
1,533,799
–
2,648
–
1,536,447
33
(395)
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
157
AGF Canadian Money Market Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
September 30,
2016
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends 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 9)
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
158
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
147,305
–
6,797
–
104
–
–
629
15
–
154,850
September 30,
2015
$
174,796
–
–
–
1,180
–
–
217
(20)
–
176,173
$
$
–
–
–
–
28
–
149
12
–
–
–
189
154,661
147,174
$
$
–
–
–
–
32
–
370
17
–
–
–
419
175,754
174,665
$
$
$
$
$
$
$
$
$
149,425
–
2,753
2,483
–
–
–
–
–
$
$
$
$
$
$
$
$
$
171,030
–
2,780
1,944
–
–
–
–
–
$
$
$
$
$
$
$
$
$
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
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
–
1,011
–
2015
$
–
1,395
–
–
1,011
–
–
1,395
–
–
–
5
–
–
–
–
1,016
–
1,395
1,512
1,498
743
31
12
10
–
27
2
2
250
–
742
28
11
3
–
27
2
2
240
–
–
2,589
–
2,553
(1,665)
924
(1,261)
1,292
$
92
$
103
$
$
$
$
$
$
$
$
$
79
–
0
13
–
–
–
–
–
$
$
$
$
$
$
$
$
$
90
–
0
13
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.00
–
0.00
0.06
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.00
–
0.00
0.09
–
–
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
92
2015
$
103
–
–
–
–
–
(454,613)
–
(4,024,602)
482,104
–
(412)
4,026,980
–
(217)
(35)
51
–
–
86
–
(4)
–
27,132
–
(160)
2,241
(74)
111,296
(77)
128,591
(131,557)
(20,335)
(131,023)
(2,509)
–
$
$
6,797
–
6,797
–
$
$
(268)
268
–
$
6,797
–
6,797
$
–
–
–
$
$
976
–
$
$
1,532
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
159
AGF Canadian Money Market Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
160
2016
171,030
–
2,780
1,944
–
–
–
–
–
175,754
2015
$
173,014
–
4,357
1
–
–
–
–
–
For the periods ended September 30,
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
2016
$
177,372
79
–
0
13
–
–
–
–
–
92
90
–
0
13
–
–
–
–
–
103
105,336
–
3,581
1,586
–
–
–
–
–
110,503
123,958
–
3,197
2,404
–
–
–
–
–
129,559
9
–
–
14
–
–
–
–
–
23
11
–
–
13
–
–
–
–
–
24
(126,951)
–
(3,608)
(1,060)
–
–
–
–
–
(131,619)
(125,953)
–
(4,774)
(474)
–
–
–
–
–
(131,201)
(21,093)
(1,618)
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.
ANNUAL REPORT 2016
(78)
–
(0)
(14)
–
–
–
–
–
(92)
2015
$
(90)
–
(0)
(13)
–
–
–
–
–
(103)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(21,093)
(1,618)
149,425
–
2,753
2,483
–
–
–
–
–
154,661
171,030
–
2,780
1,944
–
–
–
–
–
$
175,754
AGF Canadian Money Market Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Face Value
Average
Cost ($)
Fair
Value ($)
6,987,190
6,995,141
4,497,030
4,497,494
6,968,710
6,991,748
6,986,490
6,995,241
6,796,925
6,797,068
6,487,845
6,497,863
3,897,231
42,621,421
3,899,186
42,673,741
4,200,000
4,200,000
7,011,921
7,011,921
8,018,212
15,030,133
8,018,212
15,030,133
8,887,273
8,896,643
6,979,210
6,992,779
7,888,703
7,897,667
8,858,404
32,613,590
8,869,177
32,656,266
4,192,818
4,198,908
4,987,000
4,997,590
6,994,820
6,995,652
6,992,020
6,994,205
7,933,225
7,938,781
8,487,760
8,495,248
8,987,580
48,575,223
8,991,129
48,611,513
4,133,482
4,133,482
–
–
147,173,849
147,305,135
Bankers’ Acceptances (27.6%)
CAD 7,000,000 Bank of Montreal
0.771% November 3, 2016
CAD 4,500,000 Bank of Nova Scotia
0.755% October 28, 2016
CAD 7,000,000 Canadian Imperial Bank
of Commerce
0.903% November 18, 2016
CAD 7,000,000 HSBC Bank Canada
0.804% November 1, 2016
CAD 6,810,000 National Bank of Canada
0.774% December 30, 2016
CAD 6,500,000 Royal Bank of Canada
0.754% October 17, 2016
CAD 3,900,000 Toronto-Dominion Bank
0.765% October 11, 2016
Corporate Bond (2.7%)
CAD 4,200,000 Toronto-Dominion Bank
Floating Rate
1.068% June 1, 2017
Government Guaranteed Investments (9.7%)
CAD 7,000,000 Canada Housing Trust
Floating Rate
1.100% March 15, 2017
CAD 8,000,000 Canada Housing Trust
Floating Rate
1.010% September 15, 2017
Promissory Notes (21.1%)
CAD 8,900,000 Province of Alberta
0.576% October 25, 2016
CAD 7,000,000 Province of British Columbia
0.653% November 28, 2016
CAD 7,900,000 Province of Prince
Edward Island
0.570% October 20, 2016
CAD 8,875,000 Province of Saskatchewan
0.601% November 10, 2016
Treasury Bills (31.4%)
CAD 4,200,000 Government of Canada
0.502% October 20, 2016
CAD 5,000,000 Government of Canada
0.536% November 3, 2016
CAD 7,000,000 Government of Canada
0.484% November 17, 2016
CAD 7,000,000 Government of Canada
0.497% December 1, 2016
CAD 7,950,000 Government of Canada
0.503% January 12, 2017
CAD 8,500,000 Province of Newfoundland
and Labrador
0.621% November 3, 2016
CAD 9,000,000 Province of Ontario
0.602% November 30, 2016
Short-Term Deposit (2.7%)
CAD
4,133,482 CIBC Mellon Trust Company
0.048% Demand Deposit
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (95.2%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF Canadian Money Market Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
161
AGF Canadian Money Market Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Sector
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
September 30, 2015
(%)
Treasury Bills
Bankers’ Acceptances
Short-Term Deposits
Promissory Notes
Government Guaranteed Investments
Provincial Bonds
28.7
28.1
16.7
12.8
8.6
4.6
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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
September 30,
2016
September 30,
2015
29.8
30.0
39.8
25.1
16.4
58.0
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.
162
As at September 30, 2016 and 2015, the Fund’s exposure to debt
instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
September 30,
2016
September 30,
2015
147,305
–
–
–
159,689
15,107
–
–
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 5 percent change in
benchmark (September 30, 2015 – 5 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at September 30, 2016 and 2015,
with all other variables held constant, is included in the following table.
Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
September 30,
2016
September 30,
2015
0
145
FTSE TMX Canada 91 Day T-Bill 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 September 30, 2016 and 2015, 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 September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Level 1
Level 2
Level 3
Total
–
–
–
–
–
–
–
–
19,230
128,075
–
147,305
–
–
–
–
–
–
–
–
–
–
19,230
128,075
–
147,305
–
–
September 30, 2015
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
–
–
–
–
–
23,138
151,658
–
174,796
–
–
–
–
–
–
–
–
–
–
23,138
151,658
–
174,796
–
–
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
163
AGF Canadian Small Cap Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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.
ANNUAL REPORT 2016
172,970
–
6,055
–
61
–
–
–
250
–
179,336
146,790
–
8,268
–
42
264
–
–
456
–
155,820
$
$
–
–
–
–
57
253
131
47
301
–
–
789
178,547
118,051
$
$
–
–
–
–
51
194
86
128
10
–
–
469
155,351
126,936
$
$
$
$
$
$
$
$
$
139,202
–
1,561
–
–
37,784
–
–
–
$
$
$
$
$
$
$
$
$
121,778
–
569
–
–
33,004
–
–
–
$
$
$
$
$
$
$
$
$
9.45
–
11.21
–
–
10.42
–
–
–
$
$
$
$
$
$
$
$
$
7.87
–
9.24
–
–
8.43
–
–
–
AGF Canadian Small Cap Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
2,263
52
(2,540)
2015
$
35,065
34,840
–
(17,584)
(14,242)
–
–
–
320
$
2,809
22
511
–
–
6
(72)
35,088
94
(14,142)
3,275
3,360
498
34
12
12
–
22
1
2
381
21
489
30
11
5
–
21
1
2
381
9
187
4,445
291
4,600
(445)
4,000
(394)
4,206
31,088
$
(18,348)
$
$
$
$
$
$
$
$
$
23,280
–
163
–
–
7,645
–
–
–
$
$
$
$
$
$
$
$
$
(14,043)
–
(70)
–
–
(4,235)
–
–
–
$
$
$
$
$
$
$
$
$
1.56
–
1.88
–
–
1.99
–
–
–
$
$
$
$
$
$
$
$
$
(0.85)
–
(1.15)
–
–
(1.17)
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
31,088
2015
$
(18,348)
5
(214)
2,540
(511)
(35,065)
(26,363)
17,584
(35,517)
42,368
–
–
69,637
(3)
–
206
(139)
–
–
–
–
6
59
14,844
(15)
(26)
32,448
(81)
8,367
–
21,129
(25,338)
(17,052)
$
$
(48,025)
(26,896)
(5)
214
(2,208)
8,268
6,055
5,552
2,502
8,268
$
$
799
5,256
6,055
$
$
4,072
4,196
8,268
$
$
52
2,479
$
$
21
2,665
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
165
AGF Canadian Small Cap Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
2016
121,778
–
569
–
–
33,004
–
–
–
155,351
2015
$
158,100
–
859
–
–
41,624
–
–
–
For the periods ended September 30,
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
2016
$
200,583
23,280
–
163
–
–
7,645
–
–
–
31,088
(14,043)
–
(70)
–
–
(4,235)
–
–
–
(18,348)
14,596
–
1,019
–
–
2,061
–
–
–
17,676
3,474
–
264
–
–
17,541
–
–
–
21,279
58
–
–
–
–
–
–
–
–
58
73
–
–
–
–
–
–
–
–
73
(20,452)
–
(190)
–
–
(4,926)
–
–
–
(25,568)
(25,684)
–
(484)
–
–
(21,926)
–
–
–
(48,094)
(7,834)
(26,742)
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.
ANNUAL REPORT 2016
–
–
–
–
–
–
–
–
–
–
2015
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(58)
–
–
–
–
–
–
–
–
(58)
(142)
–
–
–
–
–
–
–
–
(142)
23,196
(45,232)
139,202
–
1,561
–
–
37,784
–
–
–
121,778
–
569
–
–
33,004
–
–
–
178,547
$
155,351
AGF Canadian Small Cap Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares/
Units
Average
Cost ($)
Fair
Value ($)
5,725,259
2,199,210
1,878,443
1,962,310
1,840,897
2,436,500
2,023,000
3,834,600
1,426,250
3,269,340
851,400
14,457,519
1,557,000
14,546,690
300,800
1,888,851
2,348,163
4,537,814
300,800
5,732,000
3,253,750
9,286,550
2,216,981
2,265,584
2,880,305
340,000
2,139,970
1,697,437
1,655,700
1,543,961
2,760,000
2,150,000
3,382,500
488,000
3,330,000
917,874
3,012,800
520,000
1,631,381
2,463,532
2,021,086
788,578
21,644,515
2,431,660
2,366,000
1,805,000
1,181,839
24,345,673
2,689,406
2,542,890
5,232,296
2,717,101
2,564,705
5,281,806
1,382,629
3,079,517
1,531,690
5,500,700
1,964,750
1,303,776
3,447,470
11,178,142
3,255,250
1,080,000
4,822,682
16,190,322
1,703,269
1,320,000
3,703,679
1,418,398
2,010,247
4,819,500
5,075,940
2,053,000
1,890,918
216,967
322,945
1,938,065
1,109,165
12,610,384
1,760,000
193,153
309,447
3,638,169
1,033,250
18,882,459
1,162,314
1,591,275
361,961
1,752,055
403,406
2,473,170
5,322,780
1,418,000
337,856
1,509,300
549,075
8,333,564
1,988,441
9,732,622
5,651,194
23,121,769
Consumer Discretionary (8.1%)
110,000
850,000
70,000
175,000
82,000
50,000
No. of Shares
18,800 Aritzia Inc.*
400,000 Clearwater Seafoods Inc.
125,000 High Liner Foods Inc.
371,455
150,600
30,000
11,863
235,000
259,235
140,000
400,000
37,000
213,331
80,000
200,000
115,000
B2Gold Corporation
Canfor Pulp Products Inc.
CCL Industries Inc. ‘B’
Dominion Diamond Corporation
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
Energy (13.6%)
300,000
250,000
1,650,000
200,000
200,000
3,009,425
280,000
500,000
77,000
Advantage Oil and Gas Limited
Cardinal Energy Limited
Leucrotta Exploration Inc.
Newalta Corporation
Parex Resources Inc.
Petrowest Corporation ‘A’
Raging River Exploration Inc.
RMP Energy Inc.
Seven Generations
Energy Limited
700,000 Spartan Energy Corporation
500,000 Tamarack Valley Energy Limited
107,832 Whitecap Resources Inc.
1,332,113
1,530,905
1,962,669
158,727
2,390,086
978,208
1,277,805
1,545,156
7,578,300
151,253
3,496,800
1,345,430
1,279,777
442,000
384,800
775,405
1,834,584
393,680
2,196,290
15,659,244
889,000
400,000
489,140
1,164,788
3,640,800
432,000
5,040,450
27,450,922
1,466,860
3,217,500
3,571,366
1,197,253
3,383,267
2,172,000
3,700,680
3,269,700
1,704,947
2,875,017
3,763,500
4,275,000
1,240,853
15,439,563
1,339,980
21,738,360
2,392,785
1,967,355
1,718,694
6,078,834
3,525,000
4,864,600
2,415,600
10,805,200
Real Estate (12.2%)
110,000 Altus Group Limited
300,000 DREAM Unlimited
Corporation ‘A’
60,647 FirstService Corporation
105,000 Mainstreet Equity Corporation
195,000 Milestone Apartments Real
Estate Investment Trust
25,000 Morguard Corporation
90,000 WPT Industrial Real Estate
Investment Trust
Utilities (6.1%)
300,000 Algonquin Power &
Utilities Corporation
260,000 Boralex Inc. ‘A’
165,000 Innergex Renewable Energy Inc.
ETFs – United States Equity (3.0%)
16,000 Vanguard Mid-Cap ETF
16,000 Vanguard Small-Cap ETF
Financials (9.1%)
60,661 Canadian Western Bank
335,000 Element Financial Corporation
145,000 Guardian Capital Group
Limited ‘A’
40,000 Home Capital Group Inc.
520,808 Tricon Capital Group Inc.
Health Care (0.7%)
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (96.9%)
(223,470)
118,050,732
–
172,969,751
* Private and/or Restricted
ETF – Exchange Traded Fund
1,000,000 Merus Labs International Inc.
Industrials (10.6%)
12,027
7,848
141,343
25,000
Fair
Value ($)
Materials (15.4%)
AutoCanada Inc.
Diversified Royalty Corporation
Linamar Corporation
Martinrea International Inc.
Quebecor Inc. ‘B’
Sleep Country Canada
Holdings Inc.
Consumer Staples (5.2%)
170,000
62,000
50,000
22,000
Average
Cost ($)
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
September 30, 2016 of AGF Canadian Small Cap Fund (the “Fund”).
Information Technology (12.9%)
9,000
50,000
6,428
90,000
8,216
2,083,391
200,184
Constellation Software Inc.
DH Corporation
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.
ANNUAL REPORT 2016
167
AGF Canadian Small Cap Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
As at September 30, 2016, the total fair value of private and/or restricted
securities held within the Fund represented approximately $8,634,000
(September 30, 2015 – $4,792,000).
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
September 30, 2016 and 2015 are included in the following tables:
September 30, 2016
Portfolio by Country
Vanguard Small-Cap ETF
Vanguard Mid-Cap ETF
September 30, 2016
(%)
Canada
United States
93.9
3.0
September 30, 2015
(%)
September 30, 2015
Canada
United States
90.2
4.3
Vanguard Small-Cap ETF
Vanguard 500 Index Fund ETF
Portfolio by Sector
% of ETF’s
Net Assets
2,565
2,717
0.0
0.0
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
3,326
3,296
0.0
0.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
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
September 30, 2015
(%)
Financials
Materials
Industrials
Energy
Consumer Discretionary
Information Technology
Utilities
ETFs – United States Equity
Consumer Staples
Health Care
26.1
14.7
11.8
9.3
8.4
7.9
6.9
4.3
4.0
1.1
Portfolio by Asset Mix
September 30, 2016
(%)
Canadian Equity
United States Equity
93.9
3.0
September 30, 2015
(%)
Canadian Equity
United States Equity
90.2
4.3
Credit Risk
As at September 30, 2016 and 2015, 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, 2015 – 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 September 30, 2016 and 2015,
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 ($’000)
Benchmark
S&P/TSX Small Cap Index
168
Fair Value of
Fund’s
Investment
($’000)
September 30,
2016
September 30,
2015
16,697
18,457
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.
ANNUAL REPORT 2016
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 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 September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
United States Dollar
Financial
Instruments
Foreign
Exchange
Forward
Contracts Total**
7,421
–
($’000)
United States Dollar
7,421
4.2
Foreign
Exchange
Forward
Contracts Total**
Percentage of
Net Assets (%)
10,694
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
141,998
–
–
–
141,998
–
–
–
–
–
–
–
–
–
4,792
–
–
–
4,792
–
–
146,790
–
–
–
146,790
–
–
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
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 September 30, 2016 and 2015.
September 30, 2016
Percentage of
Net Assets (%)
September 30, 2015
Financial
Instruments
September 30, 2015
10,694
6.9
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $148,000 (September 30,
2015 – $214,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
164,336
–
–
–
164,336
–
–
–
–
–
–
–
–
–
8,634
–
–
–
8,634
–
–
172,970
–
–
–
172,970
–
–
($’000)
Balance at Beginning of period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
Equities
Debt
Instruments
Total
4,792
301
(2)
–
2
–
–
–
–
–
4,792
301
(2)
–
2
3,541
8,634
–
–
3,541
8,634
3,541
September 30, 2015
($’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, 2015
Equities
Debt
Instruments
Total
2,245
1,366
–
(877)
–
–
–
–
–
–
2,245
1,366
–
(877)
–
2,058
4,792
–
–
2,058
4,792
2,058
During the period ended September 30, 2015, investments of
approximately $877,000 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 from time to time depending on company specific factors and
economic or market conditions. As at September 30, 2016 and 2015, if
the value of the level 3 investments increased or decreased by
10 percent, Net Assets would have increased or decreased, respectively,
by approximately $863,000 (September 30, 2015 – $479,000).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
169
AGF Canadian Stock Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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.
ANNUAL REPORT 2016
796,802
391
–
–
374
15,411
–
–
1,397
73
814,448
971,883
132
11,546
–
622
–
–
–
2,771
–
986,954
$
$
1,375
–
275
–
240
667
1,011
80
8,747
–
–
12,395
802,053
720,275
$
$
–
–
474
–
319
708
1,107
30
1,661
–
–
4,299
982,655
983,848
$
$
$
$
$
$
$
$
$
654,333
1,903
11,549
6,218
514
126,090
1,265
181
–
$
$
$
$
$
$
$
$
$
850,866
2,084
8,935
5,197
442
113,700
1,296
135
–
$
$
$
$
$
$
$
$
$
36.57
38.51
41.10
7.99
8.78
46.29
6.59
8.26
–
$
$
$
$
$
$
$
$
$
38.04
40.27
43.25
8.36
8.78
47.98
6.75
8.43
–
AGF Canadian Stock Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
26,521
36
(22,577)
2015
$
38,607
88
192,601
88,492
92,472
4,858
(269,870)
(38,574)
(70,480)
458
5,316
150
(95)
(70,575)
134
(1,515)
96,423
457
(108,558)
14,704
22,597
1,742
52
12
102
–
48
23
2
1,773
1,200
2,197
53
12
89
–
57
10
2
2,623
2,093
2,524
22,182
2,006
31,739
(1,551)
20,631
(1,999)
29,740
$
75,792
$
(138,298)
$
$
$
$
$
$
$
$
$
58,338
187
1,125
708
29
15,273
117
15
–
$
$
$
$
$
$
$
$
$
(122,612)
(342)
(1,420)
(608)
(50)
(13,015)
(216)
(35)
–
$
$
$
$
$
$
$
$
$
2.79
3.57
4.58
0.96
0.94
5.50
0.65
0.83
–
$
$
$
$
$
$
$
$
$
(4.81)
(5.97)
(6.87)
(0.88)
(0.95)
(4.18)
(1.03)
(0.82)
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
75,792
2015
$
(1)
(911)
17,719
(122,121)
(88,950)
(866,910)
269,965
(737,776)
1,104,439
–
–
1,168,512
–
–
1,374
1,420
–
(73)
–
–
(79)
(41)
243,270
(159)
(247)
440,385
(1,655)
54,040
(2,582)
222,088
(308,577)
(256,192)
(664,386)
(444,880)
1
$
(138,298)
(12,922)
11,546
(1,375)
$
911
$
$
(4,495)
15,130
11,546
$
(1,375)
–
(1,375)
$
836
10,710
11,546
$
$
37
26,711
$
$
86
37,899
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
171
AGF Canadian Stock Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
2016
850,866
2,084
8,935
5,197
442
113,700
1,296
135
–
982,655
2015
$
1,323,647
3,176
13,028
3,969
497
218,744
1,968
869
–
For the periods ended September 30,
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
2016
$
1,565,898
58,338
187
1,125
708
29
15,273
117
15
–
75,792
(122,612)
(342)
(1,420)
(608)
(50)
(13,015)
(216)
(35)
–
(138,298)
31,657
10
3,117
726
257
20,050
182
45
–
56,044
188,817
14
2,716
3,244
106
28,403
39
4
–
223,343
101,200
248
1,195
781
26
17,099
68
14
–
120,631
84,956
178
705
579
45
17,922
37
12
–
104,434
(284,955)
(368)
(1,574)
(413)
(214)
(22,933)
(264)
(12)
–
(310,733)
(536,558)
(758)
(5,362)
(1,408)
(111)
(120,432)
(382)
(690)
–
(665,701)
(134,058)
(337,924)
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.
ANNUAL REPORT 2016
(4,814)
(11)
(136)
(139)
(5)
(3,041)
(8)
(2)
–
(8,156)
2015
$
(3,142)
(4)
(29)
(33)
(3)
(912)
(4)
–
–
(4,127)
(97,959)
(247)
(1,113)
(642)
(21)
(14,058)
(66)
(10)
–
(114,116)
(84,242)
(180)
(703)
(546)
(42)
(17,010)
(132)
(25)
–
(102,880)
–
–
–
–
–
–
(60)
(4)
–
(64)
–
–
–
–
–
–
(14)
–
–
(14)
(180,602)
(583,243)
654,333
1,903
11,549
6,218
514
126,090
1,265
181
–
850,866
2,084
8,935
5,197
442
113,700
1,296
135
–
802,053
$
982,655
AGF Canadian Stock Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares
Average
Cost ($)
Fair
Value ($)
14,911,677
15,550,334
7,979,706
7,316,649
16,278,384
13,253,206
16,089,707
91,379,663
14,779,527
16,967,722
8,166,400
9,632,957
17,323,137
14,549,266
15,840,463
97,259,472
10,455,880
7,604,501
14,260,573
5,983,659
12,027,092
11,303,859
61,635,564
11,212,785
7,785,962
15,369,604
8,039,756
13,757,941
17,133,588
73,299,636
16,663,062
5,837,072
10,366,189
10,825,048
9,801,475
14,074,474
16,639,269
14,641,224
15,922,647
12,326,040
19,112,055
15,633,962
15,117,580
17,227,229
14,296,035
8,656,612
18,371,861
14,602,400
7,226,688
16,657,628
12,456,949
7,002,909
14,896,724
14,709,900
6,556,120
195,055,450
13,133,989
7,262,598
14,361,610
17,016,132
7,058,414
193,398,445
Consumer Discretionary (12.1%)
228,220
224,769
145,000
141,528
645,182
152,689
236,374
Cogeco Communications Inc.
Las Vegas Sands Corporation
Magna International Inc.
Nordstrom Inc.
Shaw Communications Inc. ‘B’
Tiffany & Company
Williams-Sonoma Inc.
No. of Shares/
Face Value
AGT Food and Ingredients Inc.
Clearwater Seafoods Inc.
Colgate-Palmolive Company
Imperial Brands PLC
Philip Morris International Inc.
Saputo Inc.
Energy (24.1%)
4,632,597 BlackPearl Resources Inc.
2,085,751 Canadian Energy Services &
Technology Corporation
293,897 Canadian Natural
Resources Limited
1,394,023 Encana Corporation
886,279 Gibson Energy Inc.
545,761 Inter Pipeline Limited
406,111 Keyera Corporation
157,341 Magellan Midstream Partners
Limited Partnership
154,123 Noble Energy Inc.
992,116 Pason Systems Inc.
356,708 Peyto Exploration &
Development Corporation
271,499 PrairieSky Royalty Limited
139,201 Schlumberger Limited
525,676 ShawCor Limited
193,806 Suncor Energy Inc.
Financials (14.5%)
2,258,239 Aberdeen Asset
Management PLC
57,219 Alaris Royalty Corporation
195,722 Bank of Nova Scotia
360,878 Brookfield Asset Management
Inc. ‘A’
110,258 CME Group Inc.
89,606 Intact Financial Corporation
300,651 Lazard Limited ‘A’
851,710 Manulife Financial Corporation
102,491 Royal Bank of Canada
170,884 Toronto-Dominion Bank
12,538,278
1,745,180
8,374,572
12,530,173
1,280,561
13,606,593
9,347,626
15,002,187
6,458,036
17,189,630
15,481,535
3,660,678
4,694,591
94,492,313
16,647,302
15,119,130
8,498,233
14,341,805
15,765,152
8,328,419
9,952,284
116,069,652
16,025,195
2,022,499
946,358
16,551,653
4,894,218
40,439,923
17,224,304
24,586,048
674
15,403,795
5,806,087
63,020,908
247,397
10,199,928
8,985,738
6,417,577
1,159,994
11,960,389
245,537
11,957,246
10,136,130
2,806,836
296,048
11,821,394
Health Care (7.9%)
78,705
632,897
171,248
127,165
31,611
Amgen Inc.
Highland Therapeutics Inc.*
IMRIS Inc.
Perrigo Company PLC
UnitedHealth Group Inc.
Fair
Value ($)
15,064,610
6,631,295
60,666,928
15,109,536
12,343,699
64,716,426
15,089,054
9,062,586
3,810,257
13,750,863
14,734,823
56,447,583
15,489,748
12,457,300
3,649,169
13,805,013
13,128,652
58,529,882
12,290,308
916,625
13,156,814
8,067
–
4,033
14,854,642
12,366,543
15,305,997
14,285,394
479,769
16,238,748
13,262,379
10,408,016
12,637,339
93,454,369
328,752
15,558,531
13,737,802
10,874,470
14,257,387
97,517,247
5,858,509
6,455,683
8,090,114
6,719,979
14,810,093
13,284,821
6,248,125
19,532,946
7,000,000
7,001,500
Industrials (continued)
490,092 Stantec Inc.
315,373 Toromont Industries Limited
Information Technology (7.3%)
183,191
299,346
217,601
157,972
392,306
Consumer Staples (9.1%)
299,247
543,333
158,013
118,987
107,865
375,819
Average
Cost ($)
Analog Devices Inc.
Cisco Systems Inc.
Evertz Technologies Limited
j2 Global Inc.
Spectris PLC
Materials (12.2%)
110,701 Agrium Inc.
806,630 ECI Exploration & Mining Inc.*
403,315 ECI Exploration & Mining Inc.
Warrants June 22, 2017*
1,409,392 First Quantum
Minerals Limited
155,852 Franco-Nevada Corporation
51,772 Major Drilling Group
International Inc.
332,874 Methanex Corporation
816,754 Tahoe Resources Inc.
407,842 Victrex PLC
224,161 WestRock Company
Telecommunication Services (0.8%)
106,547 BCE Inc.
Utilities (2.4%)
292,231 Brookfield Infrastructure
Partners Limited Partnership
168,777 Canadian Utilities Limited ‘A’
Corporate Bond (0.9%)
CAD 7,000,000 Liquor Stores NA Limited
Convertible Bonds
4.700% January 31, 2022
Commissions and other portfolio
transaction costs (Note 2)
(965,020)
Total Investments (99.4%)
720,275,375
Foreign Exchange Forward Contracts (0.0%)
See Schedule A
Total Portfolio (99.4%)
–
796,801,797
–
116,057
720,275,375
796,917,854
* 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
September 30, 2016 of AGF Canadian Stock Fund (the “Fund”).
Industrials (8.1%)
7,117 Brookfield Business Partners
Limited Partnership
298,823 CSX Corporation
206,965 Donaldson Company Inc.
307,860 Monadelphous Group Limited
1,480,238 PyroGenesis Canada Inc.
229,408 SNC-Lavalin Group Inc.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
173
AGF Canadian Stock Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
CAD
CAD
CAD
CAD
CAD
174
31,391,402
28,678,632
18,645,944
59,946,879
14,280,026
67,966,445
48,774,850
USD
USD
USD
USD
USD
USD
USD
Sold Currency
Forward Rate
Maturity Date
23,858,000
21,796,000
14,190,000
45,570,000
10,884,000
51,950,000
37,264,000
1.3158
1.3158
1.3140
1.3155
1.3120
1.3083
1.3089
October 14, 2016
October 14, 2016
October 26, 2016
October 27, 2016
October 31, 2016
October 31, 2016
October 31, 2016
Fair Value ($)
94,239
86,421
33,063
173,621
4,129
(173,288)
(102,128)
116,057
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Counterparty
Credit Rating
Bank of Nova Scotia
Citibank NA
Bank of America
Bank of Montreal
National Bank of Canada
Royal Bank of Canada
Toronto-Dominion Bank
A
A
BBB
A
A
AA
AA
AGF Canadian Stock Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
September 30, 2016
(%)
Canada
United States
United Kingdom
Australia
Foreign Exchange Forward Contracts
60.0
33.5
5.6
0.3
0.0
September 30, 2015
(%)
Canada
United States
United Kingdom
Bermuda
South Africa
Jersey
Taiwan
Australia
Foreign Exchange Forward Contracts
54.3
33.6
5.1
1.7
1.5
1.4
0.8
0.5
(0.0)
Portfolio by Sector
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
September 30, 2015
(%)
Financials
Energy
Information Technology
Materials
Industrials
Consumer Staples
Health Care
Utilities
Telecommunication Services
Consumer Discretionary
Foreign Exchange Forward Contracts
21.0
19.5
15.2
11.5
8.3
6.5
6.4
4.9
3.4
2.2
(0.0)
Portfolio by Asset Mix
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
September 30, 2015
(%)
Canadian Equity
United States Equity
International Equity
Foreign Exchange Forward Contracts
54.3
33.6
11.0
(0.0)
As at September 30, 2016, the total fair value of private and/or restricted
securities held within the Fund represented approximately $24,598,000
(September 30, 2015 – $29,739,000).
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, the Fund had no significant
investments in debt instruments and derivatives. Accordingly, the
Fund was not subject to significant credit risk.
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are non-interest
bearing, accordingly, the Fund is not subject to significant amounts of
risk due to fluctuations in the prevailing levels of market interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 25 percent change in
benchmark (September 30, 2015 – 20 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at September 30, 2016 and 2015,
with all other variables held constant, is included in the following table.
Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
S&P/TSX Composite Index
September 30,
2016
September 30,
2015
217,257
195,624
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.
ANNUAL REPORT 2016
175
AGF Canadian Stock Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION 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 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 September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
Pound Sterling
United States Dollar
Australian Dollar
South African Rand
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
44,629
293,082
2,941
10
– 44,629
(269,568) 23,514
–
2,941
–
10
5.6
2.9
0.4
0.0
September 30, 2015
($’000)
United States Dollar
Pound Sterling
South African Rand
New Taiwanese Dollar
Australian Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
361,445
63,492
15,308
7,747
4,991
(319,419) 42,026
(33,685) 29,807
– 15,308
–
7,747
–
4,991
4.3
3.0
1.6
0.8
0.5
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $1,422,000 (September 30,
2015 – $1,998,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
September 30, 2015
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
942,144
–
–
–
942,144
–
–
Level 2
1
–
–
–
1
132
(474)
Level 3
Total
29,738
–
–
–
29,738
–
–
971,883
–
–
–
971,883
132
(474)
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
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 September 30, 2016 and 2015.
September 30, 2016
($’000)
Balance at Beginning of period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
Equities
Debt
Instruments
Total
29,738
–
(7)
–
(2,245)
–
–
–
–
–
29,738
–
(7)
–
(2,245)
(2,888)
24,598
–
–
(2,888)
24,598
(5,092)
September 30, 2015
($’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, 2015
Debt
Equities Instruments Total
5,786
–
–
–
–
23,952
29,738
–
–
–
–
–
5,786
–
–
–
–
– 23,952
– 29,738
23,952
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 September 30, 2016 and
2015.
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
–
–
176
Level 2
1
7,002
–
–
7,003
391
(275)
Level 3
Total
24,598
–
–
–
24,598
–
–
789,800
7,002
–
–
796,802
391
(275)
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 from time to time depending on company specific factors and
economic or market conditions. As at September 30, 2016 and 2015, if
the value of the level 3 investments increased or decreased by
10 percent, Net Assets would have increased or decreased, respectively,
by approximately $2,460,000 (September 30, 2015 – $2,974,000).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Diversified Income Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
239,002
187
–
–
52
473
–
–
1,988
45
241,747
252,186
17
6,712
–
316
–
–
–
2,546
28
261,805
$
$
619
–
92
–
61
131
585
130
1,673
26
–
3,317
238,430
222,325
$
$
–
–
723
–
83
136
670
168
924
–
–
2,704
259,101
236,367
$
$
$
$
$
$
$
$
$
148,814
–
13,574
–
18,201
57,841
–
–
–
$
$
$
$
$
$
$
$
$
183,610
–
13,641
–
13,766
48,084
–
–
–
$
$
$
$
$
$
$
$
$
15.08
–
16.11
–
10.60
17.09
–
–
–
$
$
$
$
$
$
$
$
$
15.00
–
15.76
–
10.33
16.64
–
–
–
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.
ANNUAL REPORT 2016
177
AGF Diversified Income Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
$
2,350
7,745
5,921
2015
$
1,991
10,411
14,551
858
16,874
914
(430)
26,523
(13,066)
801
1,715
33
505
(12,561)
1
(276)
18,346
(114)
13,849
4,474
5,340
297
27
12
32
–
27
16
2
509
–
321
25
11
17
–
24
7
2
595
282
145
5,541
139
6,763
(635)
4,906
(558)
6,205
13,440
$
7,644
$
$
$
$
$
$
$
$
$
7,159
–
853
–
1,262
4,166
–
–
–
$
$
$
$
$
$
$
$
$
4,964
–
166
–
521
1,993
–
–
–
$
$
$
$
$
$
$
$
$
0.64
–
0.99
–
0.81
1.30
–
–
–
$
$
$
$
$
$
$
$
$
0.38
–
0.24
–
0.43
0.74
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
13,440
ANNUAL REPORT 2016
$
–
7,644
194
(6,835)
(1,485)
(1,659)
(150,659)
(75)
(165,700)
171,838
–
–
190,541
–
–
558
420
–
(17)
–
(13)
(22)
(5)
26,639
(14)
(24)
31,488
(1,327)
34,973
(1,681)
41,812
(67,616)
(33,970)
(67,750)
(27,619)
–
(194)
$
$
(7,331)
6,712
(619)
$
$
3,869
3,037
6,712
$
(619)
–
(619)
$
1,627
5,085
6,712
$
$
8,328
2,327
$
$
10,794
1,752
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2015
AGF Diversified Income Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
2016
183,610
–
13,641
–
13,766
48,084
–
–
–
259,101
2015
$
215,717
–
8,615
–
11,134
43,346
–
–
–
For the periods ended September 30,
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
2016
$
278,812
7,159
–
853
–
1,262
4,166
–
–
–
13,440
4,964
–
166
–
521
1,993
–
–
–
7,644
12,746
–
3,733
–
6,240
15,716
–
–
–
38,435
23,100
–
7,932
–
4,112
10,417
–
–
–
45,561
5,594
–
274
–
738
2,483
–
–
–
9,089
6,756
–
235
–
656
2,448
–
–
–
10,095
(53,697)
–
(4,385)
–
(3,050)
(10,125)
–
–
–
(71,257)
(58,749)
–
(2,843)
–
(1,997)
(7,672)
–
–
–
(71,261)
(23,733)
(15,605)
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.
ANNUAL REPORT 2016
(5,384)
–
(526)
–
(755)
(2,483)
–
–
–
(9,148)
2015
$
–
–
–
–
–
–
–
–
–
–
(3,534)
–
(449)
–
(660)
(2,448)
–
–
–
(7,091)
–
–
–
–
–
–
–
–
–
–
(1,214)
–
(16)
–
–
–
–
–
–
(1,230)
(4,644)
–
(15)
–
–
–
–
–
–
(4,659)
(20,671)
(19,711)
148,814
–
13,574
–
18,201
57,841
–
–
–
183,610
–
13,641
–
13,766
48,084
–
–
–
238,430
$
259,101
179
AGF Diversified Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Average
Cost ($)
Face Value
Fair
Value ($)
Corporate Bonds (35.7%)
CAD
CAD
CAD
CAD
USD
USD
USD
CAD
CAD
CAD
USD
USD
USD
CAD
USD
USD
CAD
CAD
USD
CAD
USD
CAD
CAD
USD
CAD
USD
USD
180
Face Value
Average
Cost ($)
Fair
Value ($)
1,450,000
1,536,043
2,270,532
2,374,409
2,364,780
2,448,296
1,522,072
1,575,888
1,161,000
1,363,014
Corporate Bonds (continued)
1,900,000 Aimia Inc.
5.600% May 17, 2019
1,685,000 Algonquin Power Company
4.650% February 15, 2022
2,000,000 Bell Canada
4.350% December 18, 2045
1,925,000 Brookfield Asset
Management Inc.
4.540% March 31, 2023
650,000 CalAtlantic Group Inc.
Convertible Bonds
1.250% August 1, 2032
1,813,000 Canadian Natural
Resources Limited
3.900% February 1, 2025
1,550,000 Canadian Oil Sands Limited
4.500% Series 144A
April 1, 2022
2,425,000 Canadian Pacific
Railway Company
5.100% January 14, 2022
675,000 Canadian Pacific
Railway Company
6.450% November 17, 2039
625,000 Canadian Western Bank
2.788% September 13, 2021
900,000 Cemex Finance LLC
6.000% April 1, 2024
1,350,000 Cenovus Energy Inc.
6.750% November 15, 2039
1,900,000 Citigroup Inc. Floating Rate
5.875% Series O
December 29, 2049
725,000 Cominar Real Estate
Investment Trust
4.247% May 23, 2023
1,500,000 Credit Suisse Group AG
6.250% December 29, 2049
761,000 Ctrip.com International Limited
Convertible Bonds
1.250% October 15, 2018
640,000 Element Financial
Corporation
Convertible Debentures
5.125% June 30, 2019
2,425,000 Fairfax Financial
Holdings Limited
6.400% May 25, 2021
1,025,000 FireEye Inc.
Convertible Bonds
1.625% June 1, 2035
1,150,000 First Capital Realty Inc.
4.323% Series S
July 31, 2025
1,500,000 First Quantum
Minerals Limited
7.250% October 15, 2019
2,125,000 Great Canadian
Gaming Corporation
6.625% July 25, 2022
700,000 Intact Financial Corporation
6.400% November 23, 2039
1,350,000 Intesa Sanpaolo SpA
7.700% December 29, 2049
2,225,000 Just Energy Group Inc.
Convertible Bonds
6.000% June 30, 2017
1,500,000 Just Energy Group Inc.
Convertible Bonds
6.500% July 29, 2019
1,000,000 Kaiser
Aluminum Corporation
5.875% May 15, 2024
CAD
2,059,390
1,944,976
1,718,025
1,815,214
CAD
1,989,358
2,097,475
USD
1,989,334
2,120,844
USD
952,214
888,477
CAD
2,150,425
2,388,213
USD
1,971,526
2,086,427
2,476,013
2,777,193
CAD
USD
879,340
910,927
USD
625,000
630,141
1,217,628
1,210,274
1,422,288
1,914,143
USD
CAD
2,407,968
2,517,881
USD
734,882
743,452
1,875,960
1,862,149
1,114,620
1,287,304
USD
USD
640,000
739,264
CAD
2,603,182
2,739,916
CAD
1,234,876
1,225,402
CAD
USD
1,162,294
1,263,336
USD
1,870,223
1,869,529
CAD
2,146,531
2,224,036
833,546
956,531
1,658,978
1,549,741
USD
CAD
2,225,066
2,214,765
USD
1,839,033
1,306,100
1,869,529
CAD
1,450,000 Leisureworld Senior Care
Limited Partnership
3.474% February 3, 2021
2,275,000 Morgan Stanley
3.125% August 5, 2021
1,885,000 Navistar International
Corporation
8.250% November 1, 2021
1,102,000 Newmont Mining
Corporation
Convertible Bonds
1.625% Series B
July 15, 2017
1,161,000 Northland Power Inc.
Convertible Bonds
4.750% June 30, 2020
567,000 Novelis Corporation
5.875% Series 144A
September 30, 2026
2,550,000 Parkland Fuel Corporation
5.750% September 16, 2024
1,125,000 Pattern Energy Group Inc.
Convertible Bonds
4.000% July 15, 2020
1,750,000 Prudential Financial Inc.
Floating Rate
5.625% June 15, 2043
645,000 Red Hat Inc.
Convertible Bonds
0.250% October 1, 2019
1,625,000 RioCan Real Estate
Investment Trust
3.287% Series W
February 12, 2024
745,000 salesforce.com inc.
Convertible Bonds
0.250% April 1, 2018
475,000 ServiceNow Inc.
Zero Coupon
Convertible Bonds
November 1, 2018
770,000 Southern
Copper Corporation
6.750% April 16, 2040
1,250,000 TD Capital Trust IV
Floating Rate
6.631% June 30, 2108
2,025,000 TELUS Corporation
3.200% Series CO
April 5, 2021
2,150,000 TELUS Corporation
5.150% November 26, 2043
515,000 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
1,365,000 Thomson
Reuters Corporation
4.350% September 30, 2020
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
1,650,000 Wells Fargo & Company
3.874% May 21, 2025
1,370,988
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
736,401
761,543
2,632,875
2,619,063
1,465,416
1,485,168
1,891,715
2,476,830
719,400
1,070,982
1,620,778
1,676,407
1,259,088
1,168,607
657,776
758,717
778,263
1,100,951
1,480,188
1,468,067
2,018,587
2,127,821
2,387,607
2,452,044
719,268
725,484
2,468,517
2,537,262
1,364,354
1,487,896
1,357,624
1,174,113
1,300,000
1,443,000
2,227,190
2,352,982
1,650,000
80,607,231
1,757,001
85,159,715
Average
Cost ($)
Face Value
Fair
Value ($)
USD
PEN
MXN
860,000 Cemex SAB de CV
Convertible Bonds
3.750% March 15, 2018
830,000 Republic of Hungary
6.250% January 29, 2020
5,710,000 Republic of Peru
7.840% August 12, 2020
31,150,000 United Mexican States
8.000% Series M
December 7, 2023
1,251,341
1,266,491
1,201,452
1,223,727
2,474,612
2,464,857
2,818,389
7,745,794
2,369,496
7,324,571
NOK
EUR
USD
USD
USD
USD
7,340,000 Government of Canada
5.000% June 1, 2037
10,180,122
3,500,000 Kingdom of Norway
3.750% May 25, 2021
631,267
500,000 Republic of Portugal
2.875% October 15, 2025
725,350
7,000,000 U.S. Treasury Inflation Index
Linked Notes
0.125% April 15, 2020
9,453,863
1,825,000 U.S. Treasury Inflation Index
Linked Notes
0.125% January 15, 2023
2,515,065
7,175,000 U.S. Treasury Notes
2.250% November 15, 2024 9,431,435
5,950,000 U.S. Treasury Notes
4.500% February 15, 2036 8,727,027
41,664,129
USD
USD
USD
USD
USD
USD
USD
USD
USD
CAD
CAD
USD
USD
648,528
722,297
9,621,873
2,535,727
9,938,688
10,985,872
46,107,729
1,500,000 Ally Financial Inc.
5.750% November 20, 2025
1,500,000 Cascades Inc.
5.500% July 15, 2022
1,450,000 CCO Holdings LLC/
Capital Corporation
5.125% February 15, 2023
2,315,000 Cott Beverages Inc.
5.375% July 1, 2022
1,165,000 Frontier Communications
Corporation
7.125% January 15, 2023
1,625,000 HCA Inc.
6.500% February 15, 2020
1,035,000 ILFC E-Capital Trust II
Floating Rate
4.250% December 21, 2065
860,000 MGM Resorts International
6.000% March 15, 2023
1,084,000 Neiman Marcus Group
Limited LLC
8.000% October 15, 2021
1,100,000 Post Holdings Inc.
7.375% February 15, 2022
2,075,000 Quebecor Media Inc.
6.625% January 15, 2023
1,658,000 Sirius XM Canada
Holdings Inc.
5.625% April 23, 2021
1,200,000 T-Mobile US Inc.
6.633% April 28, 2021
1,325,000 Western Digital Corporation
10.500% Series 144A
April 1, 2024
12,290,000,000 European Bank for
Reconstruction
and Development
7.375% April 15, 2019
628,037
796,376
476,802
429,588
549,241
532,251
867,200
5,351,523
679,407
749,898
489,984
501,821
617,272
793,462
981,076
5,942,553
599,885
539,475
597,652
756,111
566,661
685,168
718,289
885,569
502,244
695,577
598,726
552,666
522,999
405,289
525,547
673,857
642,154
676,003
587,163
389,387
722,458
483,948
6,908,217
765,359
514,554
7,698,524
CNOOC Limited
671,578
Devon Energy Corporation
1,046,839
Enbridge Inc. Preferred Series 3 624,858
Enbridge Inc. Preferred Series L 894,012
EOG Resources Inc.
465,743
Lone Pine Resources Inc.*
–
Pembina Pipeline Corporation
Preferred 4.500% Series 7
721,070
Precision Drilling Corporation
374,569
Royal Dutch Shell PLC ‘B’
600,952
The Williams Companies Inc.
764,293
TransCanada Corporation
425,911
TransCanada Corporation
Preferred Series 13
1,242,566
7,832,391
578,946
1,018,514
578,759
902,375
596,330
2
Energy (3.2%)
1,893,225
2,058,942
1,925,606
1,999,904
1,898,946
1,983,176
2,712,599
3,128,279
1,269,518
1,425,253
2,216,663
2,361,100
1,324,159
1,082,900
1,166,120
1,224,181
1,310,215
1,187,498
1,360,106
1,518,910
2,075,000
2,185,667
1,664,488
1,660,072
1,398,312
1,656,993
1,717,598
23,932,555
2,016,467
25,489,342
355,800
17,600
36,700
37,300
4,700
1,875,000
36,800
65,000
16,500
12,600
8,000
48,500
1,229,658
695,152
356,200
560,315
507,984
498,480
1,293,495
7,586,552
Financials (4.9%)
Supranational Bond (0.5%)
IDR
560,328
569,305
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
17,575 Koninklijke Ahold
Delhaize NV
11,700 Mondelez International Inc. ‘A’
4,500 PepsiCo Inc.
5,300 Philip Morris International Inc.
5,000 The Kraft Heinz Company
10,000 The Kroger Company
6,500 The Procter &
Gamble Company
8,500 Unilever NV CVA
11,654,744
High Yield Bonds (10.7%)
USD
418,383
653,645
22,041 Compass Group PLC
6,200 Dollar General Corporation
9,000 Las Vegas
Sands Corporation
13,500 Lennar Corporation ‘A’
8,700 Magna International Inc.
4,500 Omnicom Group Inc.
20,000 Persimmon PLC
4,700 The Home Depot Inc.
10,000 The TJX Companies Inc.
Consumer Staples (3.2%)
Government Bonds (19.4%)
CAD
Fair
Value ($)
Consumer Discretionary (2.5%)
Emerging Markets Bonds (3.1%)
USD
Average
Cost ($)
No. of Shares
1,257,002
100,000 Banco Santander SA
32,100 Bank of Nova Scotia Preferred
Series 30
6,337 BNP Paribas SA
680,500 China Construction Bank
Corporation ‘H’
5,300 Chubb Limited
4,000 CME Group Inc.
8,000 Discover Financial Services
4,800 Hannover Rueck SE
22,500 ING Groep NV
115,000 Intesa Sanpaolo SpA
11,077 Invesco Limited
9,050 JPMorgan Chase & Company
593,100 Lloyds Banking Group PLC
13,000 MetLife Inc.
91,000 Mitsubishi UFJ Financial
Group Inc.
85,000 Ping An Insurance (Group)
Company of China
Limited ‘H’
18,750 Power Corporation of Canada
Preferred Series C
14,800 Unum Group
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
603,481
581,704
693,415
494,136
657,087
427,464
706,966
833,373
533,361
605,787
619,086
374,570
480,875
391,349
455,793
703,584
717,991
661,840
873,687
548,500
593,526
674,452
364,431
334,564
454,430
790,633
550,165
757,769
616,524
594,671
359,837
577,966
473,080
646,499
476,812
685,609
181
AGF Diversified Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
No. of Shares
Average
Cost ($)
Fair
Value ($)
574,126
453,147
11,336,980
490,997
580,931
11,677,238
443,438
597,662
549,529
562,664
656,539
620,904
309,380
636,651
662,320
623,482
558,169
292,152
340,744
180,680
428,458
565,923
519,007
681,915
634,774
390,547
461,546
488,717
513,542
422,539
1,995,952
456,793
495,448
8,447,749
1,563,186
813,847
771,427
9,790,186
591,657
674,890
590,141
839,634
513,415
671,646
533,571
533,570
764,801
398,243
843,373
480,434
553,633
1,150,836
742,625
530,487
553,281
520,084
627,335
619,010
400,012
484,279
6,820,275
340,914
653,712
7,791,308
503,295
476,320
475,838
679,694
526,995
596,203
507,331
735,728
1,018,519
741,560
535,906
491,723
627,800
514,696
687,672
706,080
809,431
535,221
586,924
530,251
958,881
7,738,279
1,137,461
756,582
666,378
498,195
805,452
9,371,857
550,436
488,780
1,028,775
463,515
155,681
534,297
0
520,523
542,069
456,289
528,599
263,794
697,212
549,960
497,950
389,840
Financials (continued)
Health Care (4.1%)
8,000
5,000
4,400
5,600
1,200
900
3,200
7,000
1,465
3,900
4,200
37,500 Tahoe Resources Inc.
1,900 Vulcan Materials Company
1,700 Acuity Brands Inc.
69,800 Brambles Limited
7,000 Fortune Brands Home &
Security Inc.
5,000 Honeywell International Inc.
76,800 Keppel Corporation Limited
4,100 Northrop Grumman
Corporation
17,500 Park24 Company Limited
5,800 Schneider Electric SE
3,500 The Dun &
Bradstreet Corporation
7,400 Waste Management Inc.
193,800 Weichai Power Company
Limited ‘H’
9,500 Xylem Inc.
Information Technology (3.9%)
9,100
9,300
1,200
21,000
53,100
33,300
10,500
21,900 Brookfield Office Properties Inc.
Convertible Preferred
5.200% Series K
44,475 Brookfield Office Properties Inc.
Preferred Series P
700 Equinix Inc.
4,200 Life Storage Inc.
620,240
253,476
4,393,661
630,750
283,495
5,062,020
473,765
551,442
813,769
336,401
566,358
2,190,293
712,490
330,841
490,076
2,084,849
616,817
580,127
488,186
333,819
713,929
541,120
527,023
393,947
449,903
2,468,852
877,512
3,053,531
720,392
647,021
711,070
689,996
808,787
487,758
655,291
389,237
3,772,535
729,229
488,369
657,959
392,798
3,605,372
Telecommunication Services (1.3%)
13,400
38,000
33,200
10,271
14,700
Amphenol Corporation ‘A’
Analog Devices Inc.
Applied Materials Inc.
Broadcom Limited
Corning Inc.
FUJIFILM Holdings
Corporation
Microsoft Corporation
Paychex Inc.
Samsung Electronics Company
Limited GDR
Tencent Holdings Limited
The Sage Group PLC
VTech Holdings Limited
Western Digital Corporation
AT&T Inc.
BCE Inc. Preferred Series AK
China Mobile Limited
Freenet AG
Nippon Telegraph and
Telephone Corporation
Utilities (1.5%)
36,700 Brookfield Renewable Power
Preferred Equity Inc.
27,800 Fortis Inc. Preferred
Series F
36,700 Fortis Inc. Preferred
Series M
26,300 National Grid PLC
4,100 NextEra Energy Inc.
5,000 WEC Energy Group Inc.
Commissions and other portfolio
transaction costs (Note 2)
Total Investments (100.3%)
Foreign Exchange Forward Contracts (0.0%)
See Schedule A
Total Portfolio (100.3%)
14,500 Agnico Eagle Mines Limited
3,900 Agrium Inc.
86,400 Banro Corporation Warrants
March 2, 2017*
8,786 Croda International PLC
64,200 First Quantum
Minerals Limited
6,000 Franco-Nevada Corporation
23,000 Goldcorp Inc.
11,000 Silver Wheaton Corporation
(115,446)
–
222,324,676
239,002,349
–
94,544
222,324,676
239,096,893
* Private and/or Restricted
ADR – American Depository Receipt
CVA – Bearer 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
September 30, 2016 of AGF Diversified Income Fund (the “Fund”).
Materials (2.1%)
182
Fair
Value ($)
Real Estate (0.9%)
AbbVie Inc.
Amgen Inc.
Astellas Pharma Inc.
Becton Dickinson
and Company
Bristol-Myers
Squibb Company
Gilead Sciences Inc.
Johnson & Johnson
Medtronic PLC
Roche Holding AG
Straumann Holding AG
Stryker Corporation
Teva Pharmaceutical Industries
Limited ADR
Teva Pharmaceutical Industries
Limited
Convertible Preferred 7.000%
Thermo Fisher Scientific Inc.
UnitedHealth Group Inc.
Industrials (3.3%)
7,000
6,000
18,600
4,500
23,900
10,700
Average
Cost ($)
Materials (continued)
25,000 Virtu Financial Inc.
10,000 Wells Fargo & Company
6,800
3,000
30,500
2,700
No. of Shares
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
3,420,491
3,731,986
1,403,115
1,878,480
23,663,944
18,114,274
22,402,727
15,922,072
17,724,176
Sold Currency Forward Rate
EUR
GBP
JPY
JPY
USD
USD
USD
USD
USD
2,305,000
2,193,000
108,921,000
145,492,000
17,985,000
13,767,000
17,049,000
12,170,000
13,542,000
Maturity Date Fair Value ($)
1.4839 October 28, 2016
1.7018 October 26, 2016
0.0129 October 21, 2016
0.0129 November 4, 2016
1.3158 October 14, 2016
1.3158 October 14, 2016
1.3140 October 26, 2016
1.3083 October 31, 2016
1.3088 October 31, 2016
Counterparty Credit Rating
19,623
Royal Bank of Canada
1,531
Royal Bank of Canada
(7,111)
Citibank NA
(6,143) The Bank of New York Mellon Corporation
71,041
Bank of Nova Scotia
54,586
Citibank NA
39,724
Bank of America
(40,645)
Royal Bank of Canada
(38,062) The Bank of New York Mellon Corporation
94,544
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AA
AA
A
A
A
A
BBB
AA
A
183
AGF Diversified Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio categories,
as a percentage of Net Assets, are included in the following tables:
Portfolio by Country
Portfolio by Sector
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
September 30, 2015
(%)
Corporate Bonds
Government Bonds
High Yield Bonds
Financials
Health Care
Information Technology
Consumer Discretionary
Industrials
Consumer Staples
Energy
Materials
Utilities
Telecommunication Services
Emerging Markets Bonds
Foreign Exchange Forward Contracts
38.3
13.8
12.9
8.6
4.5
4.0
3.5
2.8
2.8
1.8
1.2
1.2
1.1
0.8
(0.3)
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
September 30, 2015
(%)
September 30, 2016
(%)
United States
Canada
Switzerland
Japan
China
Germany
France
United Kingdom
Mexico
Spain
Cayman Islands
Italy
Denmark
New Zealand
Luxembourg
Australia
Belgium
Taiwan
Ireland
Sweden
Netherlands
Foreign Exchange Forward Contracts
44.6
36.8
3.3
3.2
1.3
1.1
0.8
0.8
0.8
0.7
0.6
0.5
0.5
0.5
0.4
0.3
0.3
0.3
0.2
0.2
0.1
(0.3)
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
September 30, 2015
(%)
Canadian Fixed Income
United States Fixed Income
United States Equity
International Equity
International Fixed Income
Canadian Equity
Foreign Exchange Forward Contracts
33.6
27.4
17.2
11.1
4.8
3.2
(0.3)
Portfolio by Asset Mix
184
As at September 30, 2016, the total fair value of private and/or restricted
securities held within the Fund represented approximately $0
(September 30, 2015 – $39,000).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, the Fund invested in debt
instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
September 30,
2016
September 30,
2015
19.6
(0.0)
2.4
19.5
14.7
7.7
2.3
7.4
13.4
0.5
5.3
22.0
11.7
12.3
2.4
4.9
Interest Rate Risk
As at September 30, 2016 and 2015, the Fund’s exposure to debt
instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
September 30,
2016
September 30,
2015
3,791
10,292
38,490
112,765
–
7,695
26,646
136,170
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at September 30, 2016 and 2015, 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 $2,561,000 (September 30, 2015 – $3,031,000).
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Effective June 1, 2016, the Fund’s blended benchmark was changed
from 50% FTSE TMX Canada Universe Bond Index, 20% Bloomberg
Barclays U.S. Corporate High-Yield Bond Index (local$) (formerly,
Barclays Capital U.S. Corporate High-Yield Bond Index (local$)), 15%
S&P/TSX Composite Index, 5% FTSE TMX Canada High Yield Bond
Index, 5% MSCI All Country World Index (local$) and 5% MSCI World
REIT Net Index (local$) (the “Old Blended Benchmark”) to the Blended
Benchmark (as defined below) to better reflect the investment
opportunity set of the Fund.
Impact on Net Assets ($’000)
Benchmark
44,827
48,930
N/A
22,879
N/A
29,613
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 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 September 30, 2016
and 2015, were as follows:
September 30, 2016
($’000)
The impact on Net Assets of the Fund due to a 20 percent change in
benchmarks (September 30, 2015 – 10 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at September 30, 2016 and
2015, with all other variables held constant, is included in the following
table. Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
September 30,
2015
FTSE TMX Canada Universe Bond Index
Blended Benchmark
Old Blended Benchmark
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
September 30,
2016
United States Dollar
Hong Kong Dollar
Euro Currency
Peruvian New Sol
Mexican Peso
Indonesian Rupiah
Swiss Franc
Australian Dollar
Norwegian Krone
Singapore Dollar
Pound Sterling
Japanese Yen
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
139,212
3,941
6,708
2,465
2,369
1,257
852
840
649
398
3,963
3,351
(97,741)
–
(3,401)
–
–
–
–
–
–
–
(3,730)
(3,296)
41,471
3,941
3,307
2,465
2,369
1,257
852
840
649
398
233
55
17.4
1.7
1.4
1.0
1.0
0.5
0.4
0.4
0.3
0.2
0.1
0.0
** Includes both monetary and non-monetary instruments, as applicable
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
185
AGF Diversified Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
September 30, 2015
($’000)
United States Dollar
Euro Currency
Hong Kong Dollar
Swiss Franc
New Zealand Dollar
Pound Sterling
Mexican Peso
Japanese Yen
Danish Krone
Australian Dollar
Swedish Krona
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
130,851
8,482
3,338
3,267
2,374
2,014
1,962
8,217
1,270
910
423
(85,482)
–
–
–
–
–
–
(6,705)
–
–
–
45,369
8,482
3,338
3,267
2,374
2,014
1,962
1,512
1,270
910
423
17.5
3.3
1.3
1.3
0.9
0.8
0.8
0.6
0.5
0.4
0.2
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $1,157,000 (September 30,
2015 – $1,418,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
The following tables reconcile the Fund’s level 3 fair value
measurements for the periods ended September 30, 2016 and 2015. The
level 3 positions held in the Fund were not considered significant.
September 30, 2016
($’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
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
73,664
–
–
–
73,664
–
–
–
165,338
–
–
165,338
187
(92)
Level 1
Level 2
77,255
–
–
–
77,255
–
–
4,383
170,511
–
–
174,894
17
(723)
Level 3
–
–
–
–
–
–
–
($’000)
Balance at Beginning of Period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2015
Total
73,664
165,338
–
–
239,002
187
(92)
September 30, 2015
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 3
37
–
–
–
37
–
–
Total
81,675
170,511
–
–
252,186
17
(723)
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
186
Debt
Instruments
Total
37
–
–
–
(1,911)
–
–
–
–
–
37
–
–
–
(1,911)
1,874
–
–
–
1,874
–
–
September 30, 2015
September 30, 2016
($’000)
Equities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Debt
Equities Instruments Total
352
–
–
–
–
–
–
–
–
–
352
–
–
–
–
(315)
37
–
–
(315)
37
(315)
AGF Dividend Income Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
683,249
–
2,894
–
1,567
1,970
–
–
2,576
–
692,256
470,857
–
1,377
–
364
–
–
–
1,747
–
474,345
$
$
–
735
–
–
138
361
548
23
3,820
–
–
5,625
686,631
650,393
$
$
–
–
–
–
137
347
800
70
–
–
–
1,354
472,991
487,941
$
$
$
$
$
$
$
$
$
417,519
1,969
8,120
21,647
–
234,116
–
3,260
–
$
$
$
$
$
$
$
$
$
418,310
3,059
4,390
17,778
–
27,203
–
2,251
–
$
$
$
$
$
$
$
$
$
13.75
13.77
13.78
13.86
–
13.81
–
12.88
–
$
$
$
$
$
$
$
$
$
12.31
12.32
12.35
12.44
–
12.38
–
11.91
–
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.
ANNUAL REPORT 2016
187
AGF Dividend Income Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
188
STATEMENTS OF CASH FLOWS
2016
$
20,107
870
9,919
2015
$
49,147
80,043
(2,005)
(14,027)
(35,922)
198
58
(1,947)
52
$
22,608
23
(44,526)
–
198
0
(92)
78,056
(36)
(35,760)
7,691
7,102
876
36
12
43
–
35
13
2
955
551
828
35
12
31
–
35
12
2
848
464
880
11,094
1,873
11,242
(1,100)
9,994
(428)
10,814
68,062
$
(46,574)
$
$
$
$
$
$
$
$
$
53,098
287
770
2,889
–
10,660
–
358
–
$
$
$
$
$
$
$
$
$
(41,566)
(440)
(454)
(1,260)
–
(2,702)
–
(152)
–
$
$
$
$
$
$
$
$
$
1.66
1.88
1.75
1.95
–
1.54
–
1.57
–
$
$
$
$
$
$
$
$
$
(1.38)
(1.18)
(1.07)
(0.89)
–
(1.03)
–
(1.00)
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
68,062
ANNUAL REPORT 2016
$
11
(46,574)
(1,320)
(7,914)
44,328
(49,205)
(450,719)
14,027
(1,479,242)
298,031
–
–
1,403,995
–
–
(829)
342
–
–
–
–
1
14
(142,548)
8
13
(64,423)
(948)
232,770
(1,162)
197,067
(87,746)
144,076
(142,534)
53,371
(11)
1,528
1,377
2,894
$
$
1,320
$
$
(11,052)
11,109
1,377
$
1,960
934
2,894
$
1,377
–
1,377
$
$
869
18,730
$
$
22
22,487
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2015
AGF Dividend Income Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
2016
418,310
3,059
4,390
17,778
–
27,203
–
2,251
–
472,991
2015
$
389,170
5,469
6,231
18,631
–
45,761
–
1,218
–
For the periods ended September 30,
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
2016
$
466,480
53,098
287
770
2,889
–
10,660
–
358
–
68,062
(41,566)
(440)
(454)
(1,260)
–
(2,702)
–
(152)
–
(46,574)
27,888
20
4,558
2,824
–
199,641
–
955
–
235,886
181,613
33
1,512
4,751
–
8,769
–
1,503
–
198,181
6,344
37
114
780
–
3,382
–
92
–
10,749
10,368
143
164
805
–
1,592
–
68
–
13,140
(80,964)
(1,395)
(1,561)
(1,844)
–
(3,388)
–
(255)
–
(89,407)
(109,966)
(1,993)
(2,859)
(4,260)
–
(24,625)
–
(286)
–
(143,989)
157,228
67,332
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.
ANNUAL REPORT 2016
(7,096)
(35)
(144)
(729)
–
(3,301)
–
(107)
–
(11,412)
2015
$
–
–
–
–
–
–
–
–
–
–
(10,389)
(109)
(125)
(451)
–
(765)
–
(70)
–
(11,909)
–
–
–
–
–
–
–
–
–
–
(61)
(4)
(7)
(51)
–
(81)
–
(34)
–
(238)
(920)
(44)
(79)
(438)
–
(827)
–
(30)
–
(2,338)
213,640
6,511
417,519
1,969
8,120
21,647
–
234,116
–
3,260
–
418,310
3,059
4,390
17,778
–
27,203
–
2,251
–
686,631
$
472,991
189
AGF Dividend Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Average
Cost ($)
No. of Shares
Fair
Value ($)
Fair
Value ($)
12,841,122
4,905,933
17,747,055
13,516,089
4,968,175
18,484,264
Utilities (2.7%)
Consumer Discretionary (6.3%)
Cineplex Inc.
McDonald’s Corporation
Shaw Communications Inc. ‘B’
The Home Depot Inc.
Average
Cost ($)
Long Positions (continued)
Long Positions:
184,525
62,929
473,474
68,159
No. of Shares/
No. of Contracts
9,209,603
8,701,411
12,478,900
11,616,695
42,006,609
9,329,584
9,524,087
12,712,777
11,506,720
43,073,168
8,122,138
12,858,675
20,980,813
8,876,888
12,956,383
21,833,271
34,130,824
7,559,216
36,974,166
22,598,939
101,263,145
36,853,331
8,190,543
37,279,038
26,332,019
108,654,931
32,050,848
34,768,562
35,092,438
37,492,553
12,971,855
9,739,765
8,410,760
25,134,786
47,092,290
15,403,192
48,148,737
233,720,795
13,507,506
8,055,256
8,646,766
23,239,462
49,198,379
16,476,810
51,177,119
242,886,289
11,024,896
12,665,183
23,690,079
12,991,098
13,010,565
26,001,663
9,885,362
11,284,651
31,099,736
11,580,025
7,517,334
5,285,112
4,080,213
69,447,782
34,945,742
11,738,730
9,129,325
5,152,351
3,933,707
76,184,506
9,571,612
10,447,464
13,872,650
13,303,237
4,658,601
4,163,401
6,611,562
6,647,893
27,796,675
27,128,786
8,272,745
47,339,583
9,135,430
47,075,510
34,657,459
30,790,170
6,593,368
72,040,997
36,810,000
31,597,588
6,897,395
75,304,983
285,692 Emera Inc.
73,818 Southern Company
Commissions and other portfolio
transaction costs (Note 2)
(494,626)
–
Consumer Staples (3.2%)
107,009 Altria Group Inc.
233,357 The Coca-Cola Company
Energy (15.8%)
639,149
204,866
1,023,587
422,597
Enbridge Inc.
Pembina Pipeline Corporation
Suncor Energy Inc.
TransCanada Corporation
Investments – Long Positions (99.5%)
Equity Options Written (-0.1%)
Health Care (3.8%)
83,824 Johnson & Johnson
292,795 Pfizer Inc.
Industrials (11.1%)
48,808 3M Company
407,483 Canadian National
Railway Company
164,145 Emerson Electric Company
29,028 Lockheed Martin Corporation
131,639 Toromont Industries Limited
95,178 WSP Global Inc.
Information Technology (1.5%)
50,131 International Business
Machines Corporation
Materials (1.9%)
111,933 Agrium Inc.
Real Estate (6.8%)
272,831 Cominar Real Estate
Investment Trust
296,384 H&R Real Estate
Investment Trust
996,649 RioCan Real Estate
Investment Trust
258,428 Smart Real Estate
Investment Trust
Telecommunication Services (11.0%)
607,526 BCE Inc.
729,905 TELUS Corporation
101,142 Verizon Communications Inc.
190
683,249,286
Short Positions:
Financials (35.4%)
408,194 Bank of Montreal
539,306 Bank of Nova Scotia
132,778 Canadian Imperial Bank
of Commerce
320,034 CI Financial Corporation
185,872 National Bank of Canada
764,456 Power Financial Corporation
605,444 Royal Bank of Canada
303,720 Thomson Reuters Corporation
878,728 Toronto-Dominion Bank
651,186,494
122 3M Company
Call Options on October 2016
at USD 180.00
242 Agrium Inc.
Call Options on October 2016
at CAD 125.00
267 Altria Group Inc.
Call Options on October 2016
at USD 64.50
1,020 Bank of Montreal
Call Options on October 2016
at CAD 88.00
1,348 Bank of Nova Scotia
Call Options on October 2016
at CAD 71.00
1,306 BCE Inc.
Call Options on October 2016
at CAD 62.00
331 Canadian Imperial Bank
of Commerce
Call Options on October 2016
at CAD 103.50
1,018 Canadian National
Railway Company
Call Options on October 2016
at CAD 88.00
714 Emera Inc.
Call Options on October 2016
at CAD 48.00
410 Emerson Electric Company
Call Options on October 2016
at USD 55.00
1,871 Enbridge Inc.
Call Options on October 2016
at CAD 59.00
125 International Business
Machines Corporation
Call Options on October 2016
at USD 162.50
209 Johnson & Johnson
Call Options on October 2016
at USD 121.00
72 Lockheed Martin Corporation
Call Options on October 2016
at USD 245.00
157 McDonald’s Corporation
Call Options on October 2016
at USD 118.00
512 Pembina Pipeline Corporation
Call Options on October 2016
at CAD 41.00
731 Pfizer Inc.
Call Options on October 2016
at USD 34.50
1,911 Power Financial Corporation
Call Options on October 2016
at CAD 31.00
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
(14,008)
(11,844)
(9,438)
(9,680)
(11,559)
(11,910)
(26,520)
(27,540)
(47,180)
(40,440)
(13,060)
(14,366)
(17,543)
(18,536)
(30,540)
(31,558)
(19,278)
(19,992)
(37,243)
(43,570)
(164,648)
(85,130)
(40,669)
(38,375)
(14,047)
(16,452)
(17,286)
(16,247)
(18,125)
(18,538)
(8,192)
(10,752)
(21,204)
(17,263)
(28,665)
(38,220)
Average
Cost ($)
No. of Contracts
Fair
Value ($)
Short Positions (continued)
Equity Options Written (continued)
2,268 RioCan Real Estate
Investment Trust
Call Options on October 2016
at CAD 28.00
1,513 Royal Bank of Canada
Call Options on October 2016
at CAD 83.00
168 Southern Company
Call Options on October 2016
at USD 52.50
2,558 Suncor Energy Inc.
Call Options on October 2016
at CAD 38.00
1,824 TELUS Corporation
Call Options on October 2016
at CAD 44.50
583 The Coca-Cola Company
Call Options on October 2016
at USD 43.00
170 The Home Depot Inc.
Call Options on October 2016
at USD 133.00
759 Thomson Reuters Corporation
Call Options on October 2016
at CAD 56.00
2,196 Toronto-Dominion Bank
Call Options on October 2016
at CAD 59.00
1,056 TransCanada Corporation
Call Options on October 2016
at CAD 64.00
252 Verizon Communications Inc.
Call Options on October 2016
at USD 53.50
(22,680)
(34,020)
(49,929)
(51,442)
(6,370)
(6,392)
(28,138)
(35,812)
(21,888)
(23,712)
(16,827)
(16,827)
(7,360)
(8,029)
(8,349)
(9,108)
(32,940)
(43,920)
(26,400)
(29,568)
(5,951)
(766,037)
(5,620)
(734,863)
Commissions and other portfolio
transaction costs (Note 2)
(26,990)
–
Investments –
Equity Options Written (-0.1%)
(793,027)
(734,863)
Total Portfolio (99.4%)
650,393,467
682,514,423
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF Dividend Income Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
191
AGF Dividend Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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.
Summary of Investment Portfolio
As at September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
September 30, 2016
(%)
Canada
United States
81.4
18.0
September 30, 2015
(%)
Canada
United States
75.8
23.7
Portfolio by Sector
September 30, 2015
(%)
Canadian Equity
United States Equity
75.8
23.7
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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 25 percent change in
benchmarks (September 30, 2015 – 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 September 30, 2016 and
2015, 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.
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)
September 30, 2015
(%)
Benchmark
Financials
Telecommunication Services
Industrials
Consumer Discretionary
Energy
Consumer Staples
Health Care
Materials
Utilities
41.6
11.9
11.4
11.2
8.9
5.9
4.8
2.3
1.5
S&P/TSX Composite Index
S&P/TSX 60 Index
Portfolio by Asset Mix
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)
192
Impact on Net Assets ($’000)
September 30,
2016
September 30,
2015
148,913
152,213
84,431
82,639
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
payable for cash collateral under securities lending and payable for
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
September 30, 2016
($’000)
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
125,081
–
125,081
18.2
September 30, 2015
($’000)
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
113,616
–
113,616
24.0
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $2,502,000 (September 30,
2015 – $2,272,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
683,249
–
–
–
683,249
–
(735)
Level 2
Level 3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total
683,249
–
–
–
683,249
–
(735)
September 30, 2015
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
470,857
–
–
–
470,857
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
470,857
–
–
–
470,857
–
–
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
193
AGF EAFE Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
194
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
60,718
–
251
–
26
–
–
–
184
170
61,349
60,751
–
1,674
–
33
2,823
–
–
127
267
65,675
$
$
–
–
–
–
1
36
20
–
–
–
–
57
61,292
57,680
$
$
–
–
–
–
1
38
29
–
3,193
–
–
3,261
62,414
58,226
$
$
$
$
$
$
$
$
$
1,800
–
–
–
–
59,492
–
–
–
$
$
$
$
$
$
$
$
$
1,665
–
–
–
–
60,749
–
–
–
$
$
$
$
$
$
$
$
$
7.45
–
–
–
–
7.80
–
–
–
$
$
$
$
$
$
$
$
$
7.46
–
–
–
–
7.75
–
–
–
AGF EAFE Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
2,080
5
335
2015
$
513
2,933
–
(9,808)
39,202
–
–
–
8
–
–
0
(145)
2,796
(882)
38,320
606
3,114
89
20
12
18
–
20
5
2
95
308
206
18
11
43
–
20
4
2
380
474
312
1,487
1,179
5,451
(818)
669
$
5,320
75
43,615
2,127
(1,567)
3,884
$
34,436
$
$
$
$
$
$
$
$
$
3
–
–
–
–
2,124
–
–
–
$
$
$
$
$
$
$
$
$
19,377
–
–
–
–
15,059
–
–
–
$
$
$
$
$
$
$
$
$
0.01
–
–
–
–
0.28
–
–
–
$
$
$
$
$
$
$
$
$
1.60
–
–
–
–
1.19
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
2,127
2015
$
–
34,436
1,263
(335)
(43,615)
(513)
(96,237)
9,808
(267,823)
96,748
–
–
532,434
(282)
–
(57)
248
–
97
–
412
–
(2)
1,828
(64)
(189)
266,628
–
9,104
(12,355)
(3,251)
(341)
11,679
(301,125)
(289,787)
–
(1,263)
(1,423)
1,674
251
(23,159)
26,096
1,674
$
$
$
$
251
–
251
$
$
309
1,365
1,674
$
$
5
1,716
$
$
75
5,224
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
195
AGF EAFE Equity Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
196
2016
1,665
–
–
–
–
60,749
–
–
–
62,414
2015
$
167,300
–
–
–
–
150,826
–
–
–
For the periods ended September 30,
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
2016
$
318,126
3
–
–
–
–
2,124
–
–
–
2,127
19,377
–
–
–
–
15,059
–
–
–
34,436
764
–
–
–
–
8,333
–
–
–
9,097
5,746
–
–
–
–
5,593
–
–
–
11,339
16
–
–
–
–
1,551
–
–
–
1,567
28,450
–
–
–
–
25,618
–
–
–
54,068
(632)
–
–
–
–
(11,714)
–
–
–
(12,346)
(190,417)
–
–
–
–
(110,729)
–
–
–
(301,146)
(1,682)
(235,739)
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.
ANNUAL REPORT 2016
(16)
–
–
–
–
(1,551)
–
–
–
(1,567)
2015
$
(2,314)
–
–
–
–
(3,729)
–
–
–
(6,043)
–
–
–
–
–
–
–
–
–
–
(14,076)
–
–
–
–
(21,889)
–
–
–
(35,965)
–
–
–
–
–
–
–
–
–
–
(12,401)
–
–
–
–
–
–
–
–
(12,401)
(1,122)
(255,712)
1,800
–
–
–
–
59,492
–
–
–
1,665
–
–
–
–
60,749
–
–
–
61,292
$
62,414
AGF EAFE Equity Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares/
Units
Average
Cost ($)
Fair
Value ($)
487,410
573,887
529,582
687,665
459,789
621,860
446,271
772,989
465,525
805,543
4,633,274
533,562
655,661
511,511
671,709
456,004
861,519
4,907,213
632,707
637,630
966,087
431,392
1,397,479
1,159,600
435,089
1,594,689
305,184
644,913
950,097
364,169
922,670
1,286,839
533,310
875,335
217,911
1,626,556
571,133
699,138
239,573
1,509,844
306,681
306,752
643,811
363,259
600,092
712,613
474,145
700,779
596,444
4,091,143
625,917
430,128
438,866
764,671
486,053
761,749
596,014
4,103,398
724,934
989,957
333,441
667,119
475,632
968,238
324,215
522,688
466,335
420,457
761,422
1,090,852
315,547
719,557
493,441
1,017,052
371,938
496,144
524,623
483,287
352,669
273,659
545,427
7,064,771
317,365
307,291
611,911
7,510,430
784,961
779,941
716,519
493,042
1,209,561
657,833
493,648
1,151,481
619,650
606,779
652,866
613,939
503,908
498,853
31,240 Astellas Pharma Inc.
9,566 BANDAI NAMCO
Holdings Inc.
108,352 Fuji Electric Company Limited
33,592 Fukuoka Financial Group Inc.
10,090 Hitachi Chemical
Company Limited
5,635 Hoshizaki Corporation
13,362 Hoya Corporation
8,507 Kao Corporation
499 Keyence Corporation
6,524 Lawson Inc.
4,966 MEIJI Holdings
Company Limited
88,553 Mitsubishi UFJ Financial
Group Inc.
4,487 Murata Manufacturing
Company Limited
16,958 Nippon Steel & Sumitomo
Metal Corporation
22,841 Nippon Telegraph and
Telephone Corporation
54,830 Nissan Motor
Company Limited
2,467 Oracle Corporation Japan
109,056 Osaka Gas Company Limited
12,484 Otsuka Holdings
Company Limited
38,127 Sekisui Chemical
Company Limited
4,554 Sompo Japan Nipponkoa
Holdings Inc.
13,383 Sumitomo Mitsui
Financial Group Inc.
Austria (1.0%)
14,047 Voestalpine AG
Belgium (2.6%)
6,748 Anheuser-Busch InBev SA/NV
5,697 KBC Group NV
China (2.1%)
57,799 Sinopharm Group Company
Limited ‘H’
25,610 Tencent Holdings Limited
Denmark (2.5%)
14,919 Danske Bank AS
12,825 Novo Nordisk AS ‘B’
1,511 Pandora AS
Finland (0.5%)
5,486 Neste Oyj
France (6.7%)
9,279
3,779
3,829
8,107
11,919
6,304
9,590
BNP Paribas SA
Dassault Systemes SA
Ingenico Group SA
Safran SA
SCOR SE
Thales SA
TOTAL SA
Allianz SE
BASF SE
Bayerische Motoren Werke AG
Brenntag AG
Continental AG
Deutsche Telekom AG
Deutsche Wohnen AG
Hannover Rueck SE
Henkel AG & Company KGaA
Infineon Technologies AG
ProSiebenSat.1 Media
SE Preferred
2,001 Siemens AG
10,542 United Internet AG
Hong Kong (1.3%)
422,262 HKT Trust and HKT Limited
5,312
32,019
24,107
15,592
12,030
26,494
19,303
Japan (23.7%)
7,356 ABC-MART Inc.
22,310 Alfresa Holdings Corporation
36,933 Amada Holdings
Company Limited
583,150
635,969
287,501
585,853
153,331
380,569
644,841
181,230
250,659
638,714
636,792
542,726
460,664
648,070
301,029
669,259
698,065
626,358
474,252
672,714
605,463
641,845
608,924
578,680
732,291
756,412
454,914
451,192
1,193,524
1,363,486
707,575
169,196
538,497
697,103
181,610
595,556
658,152
741,190
634,428
712,785
191,099
174,722
636,634
13,648,494
585,232
14,529,757
Heineken NV
ING Groep NV
Koninklijke Ahold Delhaize NV
NN Group NV
Randstad Holding NV
RELX NV
Unilever NV CVA
606,650
526,421
570,734
617,977
686,826
568,406
1,118,082
4,695,096
613,070
518,609
720,875
628,483
718,937
624,549
1,168,522
4,993,045
378,285
384,802
557,227
549,845
903,383
606,107
1,509,490
991,861
619,859
1,611,720
803,297
804,969
750,424
527,945
607,560
311,845
1,200,116
463,832
3,861,722
804,543
555,321
624,598
589,587
1,166,107
490,982
4,231,138
670,810
1,359,059
514,051
708,352
1,136,940
625,612
Norway (0.6%)
17,512 Statoil ASA
Singapore (0.9%)
77,130 Singapore Exchange Limited
Spain (2.6%)
20,394 Industria de Diseno Textil SA
21,900 Red Electrica Corporation
Sweden (1.3%)
19,023 Intrum Justitia AB
Switzerland (6.9%)
3,542
208
2,492
891
3,583
4,148
Italy (1.9%)
19,759 Atlantia SpA
67,859 Snam SpA
Fair
Value ($)
Netherlands (8.2%)
Germany (12.3%)
3,911
9,725
2,862
10,045
1,789
46,253
7,800
3,531
3,436
20,650
5,649
Average
Cost ($)
Japan (continued)
Australia (8.0%)
27,686 AGL Energy Limited
45,205 Amcor Limited
107,350 Fortescue Metals
Group Limited
23,912 iShares MSCI Australia ETF
6,217 Macquarie Group Limited
269,744 Medibank Private Limited
20,466 Newcrest Mining Limited
29,979 Woodside Petroleum Limited
No. of Shares
Actelion Limited
Givaudan SA
Lonza Group AG
Partners Group Holding AG
Roche Holding AG
Swiss Re Limited
United Kingdom (16.0%)
20,330 Admiral Group PLC
171,855 BT Group PLC
24,609 Compass Group PLC
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
197
AGF EAFE Equity Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
No. of Shares/
Units
Average
Cost ($)
Fair
Value ($)
452,057
445,049
842,843
499,896
511,848
935,416
611,376
499,493
669,175
537,399
905,692
571,840
942,827
639,944
9,661,615
626,722
357,888
674,990
569,639
895,538
603,446
921,571
756,466
9,824,324
United Kingdom (continued)
13,299
19,495
13,844
30,158
112,427
36,350
4,303
7,249
13,784
28,315
26,168
Diageo PLC
Experian PLC
Imperial Brands PLC
iShares MSCI United
Kingdom ETF
ITV PLC
National Grid PLC
Randgold Resources Limited
Reckitt Benckiser Group PLC
Rio Tinto PLC
Royal Dutch Shell PLC ‘A’
The Weir Group PLC
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (99.1%)
(132,333)
57,680,123
–
60,717,817
CVA – Bearer Depository Receipt
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
September 30, 2016 of AGF EAFE Equity Fund (the “Fund”).
198
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF EAFE Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
September 30, 2016
(%)
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
September 30, 2015
(%)
United Kingdom
Japan
Germany
France
Denmark
Belgium
Switzerland
Australia
Netherlands
Sweden
China
Spain
Italy
Ireland
Singapore
Israel
ETFs – International
18.5
17.6
11.0
6.7
6.1
6.1
6.0
4.9
4.4
3.7
3.5
2.6
2.2
1.5
1.1
0.9
0.5
Portfolio by Sector
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
September 30, 2015
(%)
Financials
Consumer Discretionary
Industrials
Health Care
Consumer Staples
Information Technology
Materials
Telecommunication Services
Energy
Utilities
ETFs – International Equity
25.4
14.3
12.6
12.0
11.0
6.5
5.4
4.3
2.5
2.3
1.0
Portfolio by Asset Mix
September 30, 2016
(%)
International Equity
99.1
September 30, 2015
(%)
International Equity
97.3
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
September 30, 2016 and 2015 are included in the following tables:
September 30, 2016
iShares MSCI Australia ETF
iShares MSCI United Kingdom ETF
September 30, 2015
iShares MSCI Italy Capped ETF
iShares MSCI EAFE ETF
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
656
627
0.0
0.0
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
323
313
0.0
0.0
199
AGF EAFE Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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 30 percent change in
benchmark (September 30, 2015 – 60 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at September 30, 2016 and 2015,
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 ($’000)
Benchmark
MSCI EAFE Net Index
September 30,
2016
September 30,
2015
16,631
30,716
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
payable for cash collateral under securities lending and payable for
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
200
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
September 30, 2016
($’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
September 30, 2015
($’000)
Euro Currency
Pound Sterling
Japanese Yen
Swiss Franc
Danish Krone
Australian Dollar
Hong Kong Dollar
Swedish Krona
United States Dollar
Singapore Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
20,578
11,396
11,033
4,616
3,646
3,026
2,314
2,280
1,617
513
–
–
–
–
–
–
–
–
–
–
20,578
11,396
11,033
4,616
3,646
3,026
2,314
2,280
1,617
513
33.0
18.3
17.7
7.4
5.8
4.8
3.7
3.7
2.6
0.8
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $1,219,000 (September 30,
2015 – $1,220,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
60,718
–
–
–
60,718
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
60,718
–
–
–
60,718
–
–
Level 1
Level 2
Level 3
Total
60,751
–
–
–
60,751
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
60,751
–
–
–
60,751
–
–
September 30, 2015
($’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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
201
AGF Emerging Markets Balanced Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
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
September 30,
2016
September 30,
2015
$
$
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 9)
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
202
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
36,291
–
378
–
118
9
–
–
72
–
36,868
42,414
–
2,839
–
11
234
–
–
102
–
45,600
$
$
–
–
–
–
15
28
136
–
208
–
–
387
36,481
33,296
$
$
–
–
–
–
18
76
146
–
–
–
–
240
45,360
41,215
$
$
$
$
$
$
$
$
$
33,333
–
3,148
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
42,288
–
3,071
–
1
–
–
–
–
$
$
$
$
$
$
$
$
$
10.62
–
10.92
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
10.10
–
10.43
–
10.55
–
–
–
–
AGF Emerging Markets Balanced Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
1,798
12
556
2015
$
1,796
4,162
–
$
1,678
3
1,179
(1,139)
1,721
–
–
–
–
–
–
–
(13)
4,149
–
1,721
862
1,153
137
23
12
4
–
19
–
2
132
–
144
21
11
–
–
20
–
2
169
–
–
1,191
–
1,520
(60)
1,131
(14)
1,506
3,018
$
215
$
$
$
$
$
$
$
$
$
2,759
–
259
–
0
–
–
–
–
$
$
$
$
$
$
$
$
$
203
–
4
–
8
–
–
–
–
$
$
$
$
$
$
$
$
$
0.76
–
0.95
–
0.15
–
–
–
–
$
$
$
$
$
$
$
$
$
0.04
–
0.01
–
1.39
–
–
–
–
For the periods ended September 30,
2016
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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
3,018
2015
$
–
215
–
(556)
(1,179)
(1,796)
(4,380)
1,139
(302)
15,116
16,856
(1,828)
–
(1,693)
–
30
15
–
–
–
–
(3)
(48)
9,553
(6)
(7)
15,038
(67)
2,831
–
4,054
(14,778)
(12,014)
$
$
(16,290)
(12,236)
–
–
(2,461)
2,839
378
2,802
37
2,839
$
$
–
378
378
$
$
–
2,839
2,839
$
$
12
–
$
$
3
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
203
AGF Emerging Markets Balanced Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
204
2016
42,288
–
3,071
–
1
–
–
–
–
45,360
2015
$
54,678
–
2,714
–
102
–
–
–
–
For the periods ended September 30,
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
2016
$
57,494
2,759
–
259
–
0
–
–
–
–
3,018
203
–
4
–
8
–
–
–
–
215
2,573
–
1,003
–
–
–
–
–
–
3,576
3,475
–
1,244
–
–
–
–
–
–
4,719
1,163
–
126
–
–
–
–
–
–
1,289
–
–
–
–
–
–
–
–
–
–
(14,232)
–
(1,173)
–
(1)
–
–
–
–
(15,406)
(16,068)
–
(891)
–
(109)
–
–
–
–
(17,068)
(10,541)
(12,349)
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.
ANNUAL REPORT 2016
–
–
–
–
–
–
–
–
–
–
2015
$
–
–
–
–
–
–
–
–
–
–
(1,218)
–
(138)
–
–
–
–
–
–
(1,356)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(8,879)
(12,134)
33,333
–
3,148
–
–
–
–
–
–
42,288
–
3,071
–
1
–
–
–
–
36,481
$
45,360
AGF Emerging Markets Balanced Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
15,434,461
17,718,694
17,861,474
18,572,082
33,295,935
36,290,776
Equity Fund (48.6%)
1,259,324 AGF Emerging Markets
Fund – Series S Units
Fixed Income Fund (50.9%)
1,799,620 AGF Emerging Markets Bond
Fund – Series S Units
Total Portfolio (99.5%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF Emerging Markets Balanced Fund (the
“Fund”).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
205
AGF Emerging Markets Balanced Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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.
Summary of Investment Portfolio
As at September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Sector
September 30, 2016
(%)
Fixed Income Funds
Equity Funds
50.9
48.6
September 30, 2015
(%)
Fixed Income Funds
Equity Funds
47.5
46.0
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the underlying funds as at
September 30, 2016 and 2015 are included in the following tables:
September 30, 2016
AGF Emerging Markets Bond Fund
AGF Emerging Markets Fund
September 30, 2015
AGF Emerging Markets Bond Fund
AGF Emerging Markets Fund
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
18,572
17,719
11.0
2.8
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
21,542
20,872
12.4
3.2
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
asset type.
The impact on Net Assets of the Fund due to a 25 percent change in
benchmarks (September 30, 2015 – 15 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at September 30, 2016 and
2015, with all other variables held constant, is included in the following
table. Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
206
September 30,
2015
4,936
6,907
7,745
4,262
5,511
6,147
MSCI Emerging Markets Index
J.P. Morgan GBIEM Global Diversified Index
Blended Benchmark
The Blended Benchmark is composed of 50% MSCI Emerging Markets
Index, 20% J.P. Morgan GBIEM Global Diversified Index, 17.5%
J.P. Morgan CEMBI Broad Diversified Index and 12.5% J.P. Morgan
EMBI Global Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The Fund is indirectly exposed to credit, interest rate and currency risks,
as applicable, of the underlying funds as at September 30, 2016 and
2015.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
–
–
–
36,291
36,291
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
36,291
36,291
–
–
Level 1
Level 2
Level 3
Total
–
–
–
42,414
42,414
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
42,414
42,414
–
–
September 30, 2015
($’000)
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
September 30,
2016
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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
AGF Emerging Markets Bond Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
156,219
–
9,769
–
619
–
–
–
2,212
–
168,819
158,401
147
12,252
–
3
1,541
–
–
2,522
–
174,866
$
$
–
–
–
–
6
28
41
12
–
–
–
87
168,732
150,262
$
$
–
–
–
–
7
53
393
22
1,206
–
–
1,681
173,185
156,463
$
$
$
$
$
$
$
$
$
19,287
–
5,942
–
785
142,718
–
–
–
$
$
$
$
$
$
$
$
$
23,426
–
4,566
–
785
144,408
–
–
–
$
$
$
$
$
$
$
$
$
10.32
–
10.36
–
10.26
10.32
–
–
–
$
$
$
$
$
$
$
$
$
10.19
–
10.23
–
10.15
10.22
–
–
–
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.
ANNUAL REPORT 2016
207
AGF Emerging Markets Bond Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
208
STATEMENTS OF CASH FLOWS
2016
$
$
–
7,834
789
2015
$
–
10,424
3,578
4,019
12,642
94
591
14,593
(629)
(147)
(53)
18
346
(283)
1
(840)
11,767
904
15,215
1,536
2,001
132
21
12
16
–
21
10
2
222
48
119
20
11
54
–
20
5
2
279
55
5
2,025
2
2,568
(1,510)
515
(1,915)
653
11,252
$
14,562
$
$
$
$
$
$
$
$
$
1,358
–
376
–
66
9,452
–
–
–
$
$
$
$
$
$
$
$
$
1,768
–
1,005
–
18
11,771
–
–
–
$
$
$
$
$
$
$
$
$
0.65
–
0.74
–
0.85
0.81
–
–
–
$
$
$
$
$
$
$
$
$
0.67
–
1.27
–
0.44
0.79
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
11,252
ANNUAL REPORT 2016
$
(197)
(883)
(2,949)
(3,872)
(63,908)
(937)
(111,163)
71,327
–
–
101,074
–
–
310
(308)
–
–
–
–
(1)
(25)
14,200
(4)
(5)
73
(311)
38,434
(300)
76,605
(54,806)
(16,683)
(77,197)
(892)
–
$
14,562
–
(2,483)
12,252
9,769
$
197
$
$
(819)
12,874
12,252
$
745
9,024
9,769
$
11,730
522
12,252
$
$
8,097
–
$
$
10,061
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2015
AGF Emerging Markets Bond Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
2016
23,426
–
4,566
–
785
144,408
–
–
–
173,185
2015
$
30,501
–
13,692
–
227
115,145
–
–
–
For the periods ended September 30,
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
2016
$
159,565
1,358
–
376
–
66
9,452
–
–
–
11,252
1,768
–
1,005
–
18
11,771
–
–
–
14,562
1,651
–
2,160
–
–
37,231
–
–
–
41,042
1,533
–
2,567
–
558
73,690
–
–
–
78,348
944
–
194
–
40
8,409
–
–
–
9,587
875
–
311
–
12
8,893
–
–
–
10,091
(6,972)
–
(1,054)
–
(49)
(48,371)
–
–
–
(56,446)
(10,171)
–
(12,615)
–
(5)
(56,198)
–
–
–
(78,989)
(5,817)
9,450
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.
ANNUAL REPORT 2016
(667)
–
(214)
–
(41)
(6,266)
–
–
–
(7,188)
2015
$
(453)
–
(86)
–
(16)
(2,145)
–
–
–
(2,700)
(921)
–
(317)
–
(24)
(8,170)
–
–
–
(9,432)
(159)
–
(77)
–
(1)
(723)
–
–
–
(960)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(4,453)
13,620
19,287
–
5,942
–
785
142,718
–
–
–
23,426
–
4,566
–
785
144,408
–
–
–
168,732
$
173,185
209
AGF Emerging Markets Bond Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Average
Cost ($)
Face Value
Fair
Value ($)
Corporate Bonds (9.3%)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
CLP
USD
USD
Face Value
USD
USD
USD
USD
USD
USD
USD
USD
USD
BRL
USD
MYR
MYR
MYR
THB
210
Fair
Value ($)
188,214
227,076
1,679,344
1,701,473
1,141,583
1,325,151
2,249,030
2,519,792
315,500
335,554
1,485,507
1,655,857
1,554,100
462,339
2,029,286
2,086,985
1,866,264
1,899,374
1,027,149
1,184,953
2,126,350
1,614,265
2,134,191
2,359,415
1,263,508
1,185,812
854,979
872,830
1,005,697
974,821
1,207,922
1,310,819
1,376,184
1,592,319
1,766,604
1,974,128
1,848,126
2,012,588
3,576,865
3,658,854
3,761,472
4,286,010
817,084
843,087
1,405,439
1,404,541
1,517,359
1,467,691
1,980,502
2,027,977
5,279,938
5,253,880
1,556,957
1,645,852
550,865
558,485
2,014,880
1,442,347
3,185,071
3,126,867
1,071,068
1,160,384
Emerging Markets Bonds (continued)
450,000 BLT Finance BV
0.000% June 30, 2017
1,000,000 CNOOC Finance (2013) Limited
3.000% May 9, 2023
900,000 CNOOC Finance (2015)
USA LLC
3.500% May 5, 2025
600,000 Country Garden Holdings
Company Limited
7.500% January 10, 2023
600,000 DBS Bank Limited
2.350% February 28, 2017
1,600,000 Digicel Group Limited
8.250% September 30, 2020
673,000 Fibria Overseas
Finance Limited
5.250% May 12, 2024
800,000 Hyundai Capital Services Inc.
2.875% March 16, 2021
1,800,000 ICICI Bank Limited
3.500% March 18, 2020
183,000 JBS Investments GmbH
7.250% April 3, 2024
700,000 Kookmin Bank
1.625% August 1, 2019
200,000,000 Municipality Finance PLC
3.750% December 20, 2017
1,909,000 Southern Copper Corporation
7.500% July 27, 2035
500,000 STATS ChipPAC Limited
8.500% November 24, 2020
THB
369,962
13,419
THB
1,078,101
1,327,380
USD
1,208,628
1,215,025
USD
USD
732,414
842,521
USD
792,657
791,258
USD
1,644,643
1,823,611
USD
815,240
918,260
CLP
1,076,014
1,084,085
USD
2,425,215
2,442,793
COP
227,144
244,288
COP
914,557
919,008
COP
391,991
396,004
USD
2,545,808
2,948,665
USD
699,290
14,921,664
689,594
15,655,911
HUF
Emerging Markets Bonds (68.9%)
USD
Average
Cost ($)
1,795,000 Akbank T.A.S.
6.500% March 9, 2018
1,600,000 America Movil SAB de CV
3.125% July 16, 2022
2,065,000 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
3,000,000 Cemex SAB de CV
5.700% January 11, 2025
1,300,000 Codelco Inc.
3.000% July 17, 2022
538,480 Dolphin Energy Limited
5.888% June 15, 2019
950,000 DP World Limited
6.850% July 2, 2037
730,000 Ecopetrol SA
5.375% June 26, 2026
7,200,000 Federal Republic of Brazil
10.000% January 1, 2019
2,700,000 Federal Republic of Brazil
4.250% January 7, 2025
2,650,000 Government of Malaysia
4.378% Series 0902
November 29, 2019
9,600,000 Government of Malaysia
3.418% August 15, 2022
2,000,000 Government of Malaysia
3.800% August 17, 2023
75,000,000 Kingdom of Thailand
3.650% December 17, 2021
1,898,661
2,445,145
1,670,912
2,149,172
2,427,996
2,873,721
1,044,981
1,240,730
USD
HUF
IDR
IDR
378,151
525,997
3,767,651
3,983,867
IDR
1,312,577
1,699,538
USD
575,793
750,104
PEN
1,262,651
1,441,344
PEN
897,754
996,942
PLN
2,577,260
2,894,593
USD
3,202,716
3,533,409
PLN
901,232
874,964
3,178,063
3,037,184
664,670
647,552
2,732,528
3,101,538
USD
ZAR
ZAR
PHP
5,000,000 Kingdom of Thailand
4.750% December 20, 2024
45,000,000 Kingdom of Thailand
2.125% December 17, 2026
1,000,000 Malayan Banking Berhad
3.250% September 20, 2022
1,730,000 OAO Gazprom SA
6.510% March 7, 2022
263,000 Petrobras Global Finance BV
6.250% March 17, 2024
1,240,000 Petroleos Mexicanos
6.625% June 15, 2035
1,575,000 PT Berau Coal Energy Tbk
7.250% March 13, 2017
1,500,000 Republic of Argentina
6.250% April 22, 2019
895,000,000 Republic of Chile
5.500% August 5, 2020
800,000 Republic of Colombia
7.375% March 18, 2019
3,338,000,000 Republic of Colombia
7.750% April 14, 2021
5,100,000,000 Republic of Colombia
7.000% Series B
May 4, 2022
2,900,000,000 Republic of Colombia
4.375% March 21, 2023
600,000 Republic of Croatia
6.750% November 5, 2019
800,000 Republic of Ghana
8.125% January 18, 2026
240,000,000 Republic of Hungary
6.500% Series 19/A
June 24, 2019
1,080,000 Republic of Hungary
6.250% January 29, 2020
340,000,000 Republic of Hungary
5.500% Series 25/B
June 24, 2025
19,400,000,000 Republic of Indonesia
7.875% Series FR69
April 15, 2019
34,500,000,000 Republic of Indonesia
8.250% July 15, 2021
3,100,000 Republic of Indonesia
3.750% April 25, 2022
9,000,000,000 Republic of Indonesia
5.625% May 15, 2023
935,000 Republic of Peru
7.125% March 30, 2019
3,400,000 Republic of Peru
7.840% August 12, 2020
5,100,000 Republic of Peru
5.700% August 12, 2024
13,200,000 Republic of Poland
5.750% October 25, 2021
1,100,000 Republic of Poland
5.000% March 23, 2022
1,500,000 Republic of Poland
4.000% October 25, 2023
15,000,000 Republic of South Africa
8.000% Series R204
December 21, 2018
33,700,000 Republic of South Africa
7.750% Series 2023
February 28, 2023
43,000,000 Republic of the Philippines
3.900% November 26, 2022
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Average
Cost ($)
Face Value
Fair
Value ($)
Emerging Markets Bonds (continued)
USD
TRY
TRY
TRY
USD
RUB
RUB
USD
USD
USD
MXN
MXN
USD
Face Value
Average
Cost ($)
Fair
Value ($)
350,730
357,525
348,962
303,905
1,177,021
1,524,890
1,510,057
7,184,786
1,486,796
7,650,038
–
–
Supranational Bonds (continued)
400,000 Republic of the Philippines
5.500% March 30, 2026
3,200,000 Republic of Turkey
9.000% Series 5YR
March 8, 2017
8,100,000 Republic of Turkey
8.500% July 10, 2019
1,000,000 Republic of Turkey
8.500% September 14, 2022
2,200,000 Republic of Turkey
7.375% February 5, 2025
100,000,000 Russian Federation
7.850% March 10, 2018
55,000,000 Russian Federation
7.600% April 14, 2021
963,000 Russian Federation
7.500% March 31, 2030
1,800,000 SM Investments Corporation
4.250% October 17, 2019
3,500,000 United Mexican States
3.625% March 15, 2022
70,500,000 United Mexican States
6.500% Series M
June 9, 2022
41,100,000 United Mexican States
5.750% March 5, 2026
577,000 Vale Overseas Limited
4.375% January 11, 2022
INR
514,142
661,904
1,798,962
1,403,372
3,571,093
3,524,640
415,798
421,836
3,141,816
3,412,304
3,255,555
2,064,606
936,509
1,119,790
1,579,653
1,532,519
1,825,787
2,460,882
4,004,610
4,838,636
5,873,013
4,926,468
3,026,479
2,726,855
COP
BRL
BRL
18,000,000 International Bank for
Reconstruction
and Development
6.375% August 7, 2018
640,000,000 International Bank for
Reconstruction
and Development
8.000% March 2, 2020
3,500,000 International Bank for
Reconstruction
and Development
11.750% November 4, 2020
3,700,000 International
Finance Corporation
10.500% April 17, 2018
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (92.6%)
150,262,141 156,219,354
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF Emerging Markets Bond Fund (the “Fund”).
605,823
748,479
112,879,874 116,209,617
Government Bonds (9.2%)
USD
USD
RON
USD
USD
USD
USD
USD
USD
USD
USD
USD
1,300,000 Dominican Republic
6.600% January 28, 2024
515,500 Government of Belize
5.000% February 20, 2038
5,000,000 Government of Romania
5.950% Series 10YR
June 11, 2021
540,000 Government of Romania
4.375% August 22, 2023
800,000 Islamic Republic of Pakistan
8.250% April 15, 2024
200,000 Kingdom of Morocco
4.250% December 11, 2022
1,200,000 Republic of Guatemala
5.750% June 6, 2022
1,200,000 Republic of Honduras
8.750% December 16, 2020
800,000 Republic of Panama
3.750% March 16, 2025
1,400,000 Republic of Paraguay
4.625% January 25, 2023
1,000,000 Republic of Venezuela
9.250% September 15, 2027
1,200,000 Socialist Republic of Vietnam
6.750% January 29, 2020
1,677,199
1,920,859
407,657
370,280
1,811,214
1,934,784
592,485
783,903
1,114,295
1,149,171
238,900
278,196
1,672,176
1,767,197
1,530,042
1,806,555
1,092,617
1,132,213
1,925,057
1,946,934
572,809
714,357
1,604,823
14,239,274
1,754,007
15,558,456
1,036,543
1,145,332
1,955,148
2,027,716
1,842,868
1,949,206
High Yield Bond (0.7%)
USD
900,000 ESAL GmbH
6.250% February 5, 2023
Supranational Bonds (4.5%)
IDR 19,000,000,000 Inter-American
Development Bank
7.875% March 14, 2023
INR
100,000,000 International Bank for
Reconstruction
and Development
5.000% May 24, 2017
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
211
AGF Emerging Markets Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
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
September 30, 2015
(%)
Mexico
Turkey
Poland
Indonesia
United States
The Philippines
Chile
Colombia
Malaysia
Hungary
Brazil
Russia
Romania
Cayman Islands
Thailand
Peru
Bermuda
Austria
South Africa
China
United Arab Emirates
Republic of Honduras
Vietnam
Sri Lanka
Dominican Republic
Morocco
Panama
Republic of Venezuela
Netherlands
Georgia
France
Namibia
Belize
Republic of Senegal
Foreign Exchange Forward Contracts
11.5
6.7
6.2
5.3
5.1
4.9
4.6
4.6
4.3
3.7
3.6
3.4
3.1
3.0
2.7
2.5
1.7
1.6
1.6
1.5
1.1
1.0
1.0
0.9
0.8
0.8
0.8
0.7
0.7
0.6
0.6
0.3
0.3
0.2
0.1
Portfolio by Sector
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
September 30, 2015
(%)
Emerging Markets Bonds
Government Bonds
Corporate Bonds
Supranational Bonds
Foreign Exchange Forward Contracts
66.5
11.3
9.7
3.9
0.1
Portfolio by Asset Mix
212
September 30, 2016
(%)
International Fixed Income
United States Fixed Income
85.6
7.0
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
September 30, 2015
(%)
International Fixed Income
United States Fixed Income
Foreign Exchange Forward Contracts
86.3
5.1
0.1
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at September 30, 2016 and
2015, 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 ($’000)
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, the Fund invested in debt
instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
September 30,
2016
September 30,
2015
4.5
0.7
21.6
37.9
21.6
8.7
1.7
1.7
3.9
1.5
28.6
36.1
15.7
7.5
2.4
2.9
Interest Rate Risk
As at September 30, 2016 and 2015, the Fund’s exposure to debt
instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
September 30,
2016
September 30,
2015
4,619
24,281
28,925
98,394
3,218
18,220
33,311
103,652
Benchmark
J.P. Morgan GBIEM Global Diversified Index
Blended Benchmark
September 30,
2016
September 30,
2015
24,176
38,151
17,533
23,197
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 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 September 30, 2016 and 2015, 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 $1,752,000 (September 30, 2015 – $1,860,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 25 percent change in
benchmarks (September 30, 2015 – 15 percent), using historical
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
213
AGF Emerging Markets Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
Currencies to which the Fund had exposure as at September 30, 2016
and 2015, were as follows:
September 30, 2016
($’000)
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
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
September 30, 2015
($’000)
United States Dollar
New Turkish Lira
Mexican Peso
Malaysian Ringgit
Indonesian Rupiah
Colombian Peso
Brazilian Real
Thai Baht
Polish Zloty
Peruvian New Sol
New Romanian Leu
Chilean Peso
South African Rand
Philippine Peso
Indian Rupee
Hungarian Forint
Russian Ruble
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
98,198
6,235
8,739
4,866
4,749
4,684
4,656
4,588
8,403
4,003
3,867
3,052
2,757
2,651
1,985
4,987
1,712
10,878 109,076
–
6,235
(3,319)
5,420
–
4,866
–
4,749
–
4,684
–
4,656
–
4,588
(4,197)
4,206
–
4,003
–
3,867
–
3,052
–
2,757
–
2,651
–
1,985
(3,215)
1,772
–
1,712
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 2
Level 3
Total
–
–
–
–
–
–
–
–
156,219
–
–
156,219
–
–
–
–
–
–
–
–
–
–
156,219
–
–
156,219
–
–
Level 1
Level 2
Level 3
Total
–
–
–
–
–
–
–
–
158,401
–
–
158,401
147
–
–
–
–
–
–
–
–
–
158,401
–
–
158,401
147
–
September 30, 2015
($’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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
63.0
3.6
3.1
2.8
2.7
2.7
2.7
2.6
2.4
2.3
2.2
1.8
1.6
1.5
1.1
1.0
1.0
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $3,139,000 (September 30,
2015 – $3,406,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
214
Level 1
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Emerging Markets Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
619,220
–
4,024
–
241
5,563
–
–
547
158
629,753
634,495
–
7,984
–
489
70
–
–
2,731
–
645,769
$
$
–
–
–
–
225
734
1,017
1
877
–
–
2,854
626,899
492,202
$
$
–
–
–
–
224
704
1,460
2
–
–
481
2,871
642,898
548,391
$
$
$
$
$
$
$
$
$
465,342
–
21,034
51,232
343
88,948
–
–
–
$
$
$
$
$
$
$
$
$
472,443
–
25,162
47,201
148
97,944
–
–
–
$
$
$
$
$
$
$
$
$
11.78
–
13.02
13.99
11.72
14.07
–
–
–
$
$
$
$
$
$
$
$
$
10.67
–
11.66
12.37
10.37
12.44
–
–
–
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.
ANNUAL REPORT 2016
215
AGF Emerging Markets Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
216
STATEMENTS OF CASH FLOWS
2016
$
15,119
27
38,524
2015
$
40,914
94,584
–
(90,275)
(20,124)
–
–
–
38
$
22,234
19
47,898
–
–
37
(222)
94,400
1,465
(18,622)
12,221
15,168
1,373
54
80
262
–
39
22
2
1,476
818
1,460
54
54
460
–
42
21
2
1,810
1,632
919
17,266
1,244
21,947
(1,248)
16,018
(1,665)
20,282
78,382
$
(38,904)
$
$
$
$
$
$
$
$
$
54,401
–
2,672
7,885
45
13,379
–
–
–
$
$
$
$
$
$
$
$
$
(33,948)
–
(1,246)
(1,854)
78
(1,934)
–
–
–
$
$
$
$
$
$
$
$
$
1.28
–
1.41
1.93
2.08
1.91
–
–
–
$
$
$
$
$
$
$
$
$
(0.73)
–
(0.47)
(0.50)
1.54
(0.20)
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
78,382
ANNUAL REPORT 2016
$
(38,904)
(12)
(610)
(38,524)
(47,898)
(40,914)
(190,637)
90,275
(219,115)
280,734
–
–
357,627
(165)
–
2,184
(2,026)
–
(158)
–
–
1
30
(481)
90,605
(60)
(120)
(651)
138,353
(586)
84,591
(320)
126,449
(178,582)
(94,577)
(266,552)
(140,423)
12
(3,972)
7,984
4,024
$
$
610
$
$
(2,070)
9,444
7,984
$
3,754
270
4,024
$
7,984
–
7,984
$
$
27
16,005
$
$
20
17,756
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2015
AGF Emerging Markets Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
2016
472,443
–
25,162
47,201
148
97,944
–
–
–
642,898
2015
$
586,050
–
41,087
47,769
762
146,629
–
–
–
For the periods ended September 30,
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
2016
$
822,297
54,401
–
2,672
7,885
45
13,379
–
–
–
78,382
(33,948)
–
(1,246)
(1,854)
78
(1,934)
–
–
–
(38,904)
45,365
–
4,783
19,167
155
17,745
–
–
–
87,215
78,839
–
7,337
10,341
156
33,043
–
–
–
129,716
6,978
–
331
1,032
4
1,967
–
–
–
10,312
4
–
–
282
5
952
–
–
–
1,243
(106,323)
–
(11,542)
(23,021)
(5)
(40,120)
–
–
–
(181,011)
(158,179)
–
(22,016)
(9,055)
(848)
(79,794)
–
–
–
(269,892)
(83,484)
(138,933)
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.
ANNUAL REPORT 2016
(437)
–
–
(302)
(2)
(590)
–
–
–
(1,331)
2015
$
(323)
–
–
(282)
(5)
(952)
–
–
–
(1,562)
(7,085)
–
(372)
(730)
(2)
(1,377)
–
–
–
(9,566)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(15,999)
(179,399)
465,342
–
21,034
51,232
343
88,948
–
–
–
472,443
–
25,162
47,201
148
97,944
–
–
–
626,899
$
642,898
217
AGF Emerging Markets Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares
Average
Cost ($)
Fair
Value ($)
6,156,777
6,221,422
5,842,530
10,522,806
6,373,819
1,792,552
5,655,741
3,581,099
4,322,249
3,328,986
41,419,782
7,750,640
5,763,973
6,562,233
4,382,979
6,949,175
2,698,609
1,487,796
2,891,342
38,486,747
8,781,935
8,156,680
5,040,240
3,723,181
8,763,421
4,554,631
2,614,923
7,169,554
8,388,495
9,331,785
7,460,349
14,609,596
192,809
294,471
4,402,591
12,256,852
5,430,538
12,769,218
6,891,202
6,497,633
13,790,579
14,195,681
11,164,511
14,498,882
13,226,617
24,880,774
10,670,385
89,716,655
11,273,316
112,509,629
13,370,686
12,773,928
16,765,535
900,389
5,746,658
23,412,582
19,471,629
901,084
8,173,147
28,545,860
4,374,503
7,140,793
5,240,451
5,441,806
3,473,165
10,388,230
7,889,930
11,666,364
7,445,412
5,710,010
2,495,394
8,858,325
9,721,414
2,298,249
10,250,596
16,337,908
5,258,655
52,004,506
7,821,401
79,808,100
7,693,794
12,436,688
5,485,422
13,179,216
10,518,670
22,955,358
6,998,734
7,276,557
Brazil (6.1%)
647,550
1,612,655
410,159
538,129
1,332,257
220,194
206,188
465,406
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 (1.3%)
1,580,752 Eldorado Gold Corporation
Chile (1.1%)
21,231,691 Enersis Americas SA
21,593,905 Enersis SA
36,688 Randgold Resources
Limited ADR
491,144 British American Tobacco
Malaysia Berhad
Hong Kong (4.6%)
2,233,143 AIA Group Limited
487,849 HKT Trust and HKT Limited
546,304 VTech Holdings Limited
India (12.7%)
578,822
500,569
2,453,097
254,228
206,144
454,446
Bharat Forge Limited
HCL Technologies Limited
ITC Limited
Lupin Limited (Foreign)
Mahindra & Mahindra Limited
Oil and Natural Gas
Corporation Limited
480,028 Reliance Industries Limited
1,230,438 UPL Limited (Foreign)
725,976 Zee Entertainment
Enterprises Limited
Indonesia (3.7%)
11,046,208 PT Bank Mandiri (Persero) Tbk
24,277,841 PT Telekomunikasi Indonesia
(Persero) Tbk
Israel (1.2%)
120,547 Teva Pharmaceutical Industries
Limited ADR
218
2,413,086
4,816,651
7,552,854
7,656,552
7,550,355
12,319,710
9,794,303
10,071,105
7,692,735
10,957,518
6,537,245
3,968,934
35,543,572
8,875,250
4,591,762
46,815,345
5,314,528
6,190,798
11,505,326
9,842,463
6,359,312
16,201,775
10,238,900
10,915,223
10,387,738
8,366,586
5,511,697
24,266,021
8,314,302
9,616,859
9,232,396
27,163,557
4,832,061
3,679,590
8,866,079
9,121,807
11,530,162
3,583,346
7,527,923
8,807,141
15,946,952
27,649,345
11,773,889
54,220,378
12,978,608
72,076,525
13,425,793
5,377,326
13,356,793
7,285,615
2,750,403
7,758,888
7,701,994
29,255,516
22,895,429
51,296,725
8,141,032
11,265,639
8,166,372
6,898,422
9,449,220
11,733,610
3,708,549
5,417,951
1,465,689
30,930,862
3,035,954
38,351,576
5,798,693
6,910,337
2,207,787
14,916,817
3,851,472
6,279,240
2,138,348
12,269,060
Mexico (7.5%)
102,025 Fomento Economico Mexicano
SAB de CV ADR
7,339,460 Genomma Lab Internacional
SAB de CV ‘B’
1,590,970 Grupo Financiero Banorte SAB
de CV ‘O’
2,990,659 Kimberly-Clark de Mexico SAB
de CV ‘A’
1,593,781 Wal-Mart de Mexico SAB de CV
Peru (2.6%)
49,285 Credicorp Limited
184,305 Southern Copper Corporation
Singapore (1.7%)
3,512,624 Singapore Technologies
Engineering Limited
South Africa (4.3%)
740,375 MTN Group Limited
721,066 The Foschini Group Limited
1,249,416 Woolworths Holdings Limited
South Korea (11.5%)
162,951
7,063
149,929
8,940
14,525
Hankook Tire Company Limited
Hugel Inc.
Kia Motors Corporation
ORION Corporation
Samsung Electronics
Company Limited
271,363 Shinhan Financial Group
Company Limited
Czech Republic (2.0%)
281,388 Komercni Banka AS
Fair
Value ($)
Malaysia (1.2%)
China (18.0%)
57,141 China Biologic Products Inc.
3,284,168 China Overseas Land &
Investment Limited
1,088,092 China Overseas Property
Holdings Limited
1,211,546 China Resources Gas
Group Limited
7,847,515 CNOOC Limited
2,996,471 Haier Electronics Group
Company Limited
17,304,434 Industrial & Commercial
Bank of China Limited ‘H’
2,099,256 Sinopharm Group Company
Limited ‘H’
690,601 Tencent Holdings Limited
6,408,572 Weichai Power Company
Limited ‘H’
Average
Cost ($)
Jersey (0.8%)
Argentina (1.0%)
166,976 Tenaris SA ADR
No. of Shares
Taiwan (8.2%)
1,910,925 Delta Electronics Inc.
465,428 Eclat Textile Company Limited
838,813 Giant Manufacturing
Company Limited
2,997,394 Taiwan Semiconductor
Manufacturing
Company Limited
Thailand (6.1%)
1,586,867 KASIKORNBANK
PUBLIC COMPANY
LIMITED (Foreign)
2,249,317 PTT Exploration and Production
Public Company
Limited (Foreign)
4,524,046 Thai Oil Public Company
Limited NVDR
276,243 The Siam Cement Public
Company Limited (Foreign)
155,393 The Siam Cement Public
Company Limited NVDR
Turkey (2.0%)
907,311 Turkcell Iletisim Hizmetleri AS
1,806,711 Turkiye Garanti Bankasi AS
86,115 Turkiye Petrol Rafinerileri AS
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
No. of Shares
Average
Cost ($)
Fair
Value ($)
8,598,192
7,753,567
United Arab Emirates (1.2%)
1,839,599 First Gulf Bank PJSC
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (98.8%)
(1,043,708)
492,202,110
–
619,220,391
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
September 30, 2016 of AGF Emerging Markets Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
219
AGF Emerging Markets Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
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
September 30, 2015
(%)
India
China
South Korea
Taiwan
Mexico
Brazil
Thailand
South Africa
Hong Kong
United Kingdom
Czech Republic
Indonesia
Peru
Turkey
Malaysia
Argentina
United Arab Emirates
Chile
United States
Israel
Jersey
Canada
14.5
14.2
11.5
11.0
9.6
4.7
4.2
4.1
3.8
2.9
2.4
2.2
2.0
1.8
1.6
1.5
1.4
1.3
1.2
1.1
0.9
0.8
220
Portfolio by Sector
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
September 30, 2015
(%)
Financials
Consumer Discretionary
Information Technology
Consumer Staples
Energy
Materials
Health Care
Telecommunication Services
Industrials
Utilities
24.6
16.3
15.8
12.3
8.5
6.7
6.7
4.1
2.4
1.3
Portfolio by Asset Mix
September 30, 2016
(%)
International Equity
Canadian Equity
97.5
1.3
September 30, 2015
(%)
International Equity
United States Equity
Canadian Equity
96.7
1.2
0.8
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
The impact on Net Assets of the Fund due to a 25 percent change in
benchmark (September 30, 2015 – 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 September 30, 2016 and 2015,
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 ($’000)
Benchmark
MSCI Emerging Markets Index
September 30,
2016
September 30,
2015
135,240
87,049
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
payable for cash collateral under securities lending and payable for
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
September 30, 2016
($’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
Exchange
Financial Forward
Percentage of
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
September 30, 2015
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
Hong Kong Dollar
Indian Rupee
South Korean Won
New Taiwanese Dollar
United States Dollar
Mexican Peso
Brazilian Real
Thai Baht
South African Rand
Pound Sterling
Czech Koruna
Indonesian Rupiah
New Turkish Lira
Malaysian Ringgit
United Arab Emirates Dinar
Chilean Peso
117,110
93,063
73,742
71,084
67,691
43,883
28,802
26,882
26,681
19,052
15,767
14,681
11,985
10,597
9,078
8,438
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
117,110
93,063
73,742
71,084
67,691
43,883
28,802
26,882
26,681
19,052
15,767
14,681
11,985
10,597
9,078
8,438
18.2
14.5
11.5
11.1
10.5
6.8
4.5
4.2
4.2
3.0
2.5
2.3
1.9
1.6
1.4
1.3
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $12,297,000 (September 30,
2015 – $12,771,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
612,322
–
–
–
612,322
–
–
6,898
–
–
–
6,898
–
–
–
–
–
–
–
–
–
619,220
–
–
–
619,220
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
603,772
–
–
–
603,772
–
–
30,723
–
–
–
30,723
–
–
–
–
–
–
–
–
–
634,495
–
–
–
634,495
–
–
September 30, 2015
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
221
AGF Emerging Markets Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
The following table reconciles the Fund’s level 3 fair value
measurements for the period ended September 30, 2016.
September 30, 2016
($’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
Equities
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.
For the period ended September 30, 2015, the Fund did not hold
financial instruments within level 3 of the fair value hierarchy.
222
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Equity Income Focus Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
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
September 30,
2016
September 30,
2015
$
$
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 9)
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
450,348
–
9,508
–
499
75
–
–
1,240
–
461,670
375,702
–
34,709
–
377
–
–
–
972
–
411,760
$
$
–
–
–
–
155
242
156
74
451
–
–
1,078
460,592
428,667
$
$
–
–
–
–
139
130
256
93
841
–
–
1,459
410,301
373,163
$
$
$
$
$
$
$
$
$
438,034
–
6,307
2,422
2,992
–
10,837
–
–
$
$
$
$
$
$
$
$
$
390,284
–
5,178
2,283
1,018
–
11,538
–
–
$
$
$
$
$
$
$
$
$
10.83
–
11.07
11.34
9.80
–
9.75
–
–
$
$
$
$
$
$
$
$
$
10.55
–
10.66
10.80
9.43
–
9.80
–
–
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.
ANNUAL REPORT 2016
223
AGF Equity Income Focus Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
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 9)
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
224
STATEMENTS OF CASH FLOWS
2016
$
19,679
104
4,160
2015
$
19,142
43,085
–
$
16,523
134
(501)
(9,761)
6,395
–
–
–
–
–
–
–
–
43,085
–
6,395
7,910
6,959
638
36
12
23
–
33
–
2
982
–
526
30
11
–
–
33
–
2
858
–
–
9,636
–
8,419
(146)
9,490
(135)
8,284
33,595
$
(1,889)
$
$
$
$
$
$
$
$
$
31,787
–
535
227
191
–
855
–
–
$
$
$
$
$
$
$
$
$
(1,884)
–
(21)
78
(30)
–
(32)
–
–
$
$
$
$
$
$
$
$
$
0.82
–
0.99
1.10
1.02
–
0.74
–
–
$
$
$
$
$
$
$
$
$
(0.06)
–
(0.06)
0.43
(0.52)
–
(0.03)
–
–
For the periods ended September 30,
2016
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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received *
Distributions from underlying funds received *
$
33,595
ANNUAL REPORT 2016
$
(1,889)
–
–
(4,160)
501
(19,142)
(113,138)
9,761
(175,541)
80,740
121,212
(19,411)
–
(16,661)
–
(268)
131
–
–
–
–
16
112
(41,656)
31
19
(62,436)
(1,012)
88,458
(1,043)
160,448
(70,991)
16,455
(63,412)
95,993
–
–
(25,201)
34,709
9,508
33,557
1,152
34,709
$
$
$
–
9,508
9,508
$
–
34,709
34,709
$
$
107
–
$
$
127
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2015
$
AGF Equity Income Focus Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
2016
390,284
–
5,178
2,283
1,018
–
11,538
–
–
410,301
31,787
–
535
227
191
–
855
–
–
33,595
2015
$
300,672
–
1,788
1
–
–
14,283
–
–
For the periods ended September 30,
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
2016
$
316,744
(1,884)
–
(21)
78
(30)
–
(32)
–
–
(1,889)
83,786
–
2,664
507
2,005
–
1,142
–
–
90,104
149,739
–
4,287
2,496
1,055
–
3,976
–
–
161,553
20,262
–
182
114
92
–
533
–
–
21,183
17,754
–
166
113
11
–
572
–
–
18,616
(67,338)
–
(1,957)
(595)
(209)
–
(2,316)
–
–
(72,415)
(57,705)
–
(778)
(292)
(4)
–
(6,276)
–
–
(65,055)
38,872
115,114
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.
ANNUAL REPORT 2016
(16,574)
–
(259)
(102)
(94)
–
(363)
–
–
(17,392)
2015
$
(6,469)
–
(136)
(64)
(8)
–
(164)
–
–
(6,841)
(2,225)
–
(33)
(12)
(11)
–
(59)
–
–
(2,340)
(11,819)
–
(128)
(49)
(6)
–
(370)
–
–
(12,372)
(1,948)
–
(3)
(0)
–
–
(493)
–
–
(2,444)
(4)
–
–
–
–
–
(451)
–
–
(455)
50,291
93,557
438,034
–
6,307
2,422
2,992
–
10,837
–
–
390,284
–
5,178
2,283
1,018
–
11,538
–
–
460,592
$
410,301
225
AGF Equity Income Focus Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
145,712,799
138,383,245
127,760,049
155,947,333
155,194,353
156,016,928
428,667,201
450,347,506
Balanced Fund (30.0%)
12,684,074 AGF Monthly High Income
Fund – Series S Units
Equity Fund (33.9%)
5,782,252 AGF Global Dividend
Fund – Series S Units
Fixed Income Fund (33.9%)
46,572,217 AGF Total Return Bond
Fund – Series S Units
Total Portfolio (97.8%)
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF Equity Income Focus Fund (the “Fund”).
226
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Equity Income Focus Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Sector
September 30, 2016
(%)
Fixed Income Funds
Equity Funds
Balanced Funds
33.9
33.9
30.0
September 30, 2015
(%)
Equity Funds
Balanced Funds
Fixed Income Funds
40.2
27.5
23.9
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the underlying funds as at
September 30, 2016 and 2015 are included in the following tables:
September 30, 2016
AGF Total Return Bond Fund
AGF Monthly High Income Fund
AGF Global Dividend Fund
September 30, 2015
AGF Total Return Bond Fund
AGF Monthly High Income Fund
AGF Global Dividend Fund
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
156,017
138,383
155,947
23.4
20.9
6.9
Fair Value of
Fund’s
Investment
($’000)
% of Underlying
Fund’s Net Assets
98,067
112,959
164,676
17.9
15.2
8.6
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, 2015 – 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 September 30, 2016 and
2015, 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 ($’000)
Benchmark
September 30,
2016
September 30,
2015
55,314
97,530
108,392
43,169
61,007
78,238
S&P/TSX Composite Index
FTSE TMX Canada Universe Bond Index
Blended Benchmark
The Blended Benchmark is composed of 25% Bloomberg Barclays
Global High-Yield Index (formerly, Barclays Capital Global High-Yield
Bond Index), 25% FTSE TMX Canada Universe Bond Index, 25% MSCI
All Country World Index and 25% S&P/TSX Composite Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
The Fund is indirectly exposed to credit, interest rate and currency risks,
as applicable, of the underlying funds as at September 30, 2016 and
2015.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
450,348
450,348
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
450,348
450,348
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
375,702
375,702
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
375,702
375,702
–
–
September 30, 2015
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
227
AGF European Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
228
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
58,593
–
308
–
45
229
–
–
68
170
59,413
83,753
–
1,301
–
267
–
–
–
151
79
85,551
$
$
–
–
–
–
8
42
3
–
–
–
–
53
59,360
62,175
$
$
–
–
–
–
32
–
–
–
–
–
–
32
85,519
89,915
$
$
$
$
$
$
$
$
$
–
–
–
–
–
59,360
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
85,519
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
9.11
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
10.34
–
–
–
AGF European Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
2,532
3
(7,481)
2015
$
2,580
(2,366)
–
$
1,565
3
6,113
(6,162)
1,519
–
–
–
77
–
–
4
(410)
(2,699)
235
1,758
651
489
71
20
13
15
–
20
2
2
90
246
32
18
11
13
–
3
2
1
73
197
304
1,434
478
1,317
(307)
1,127
(201)
1,116
(3,826)
$
642
$
$
$
$
$
$
$
$
$
–
–
–
–
–
(3,826)
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
642
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
(0.55)
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
0.10
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
(3,826)
2015
$
642
1
(1,321)
7,481
(6,113)
(2,580)
(48,304)
6,162
(160,646)
68,334
–
–
76,844
–
–
83
(151)
–
(91)
–
(79)
(24)
42
21,116
32
–
(84,630)
–
21,090
(43,198)
(22,108)
–
96,347
(11,737)
84,610
(1)
$
$
(992)
1,301
308
1,321
$
$
(20)
–
1,301
$
226
82
308
$
663
638
1,301
$
$
3
2,367
$
$
3
1,141
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
229
AGF European Equity Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
230
2016
–
–
–
–
–
85,519
–
–
–
85,519
2015
$
–
–
–
–
–
–
–
–
–
For the periods ended September 30,
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
2016
$
–
–
–
–
–
–
(3,826)
–
–
–
(3,826)
–
–
–
–
–
642
–
–
–
642
–
–
–
–
–
20,868
–
–
–
20,868
–
–
–
–
–
96,614
–
–
–
96,614
–
–
–
–
–
4,295
–
–
–
4,295
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(43,201)
–
–
–
(43,201)
–
–
–
–
–
(11,737)
–
–
–
(11,737)
(18,038)
84,877
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.
ANNUAL REPORT 2016
–
–
–
–
–
(1,000)
–
–
–
(1,000)
2015
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(3,295)
–
–
–
(3,295)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(26,159)
85,519
–
–
–
–
–
59,360
–
–
–
–
–
–
–
–
85,519
–
–
–
59,360
$
85,519
AGF European Equity Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares
Average
Cost ($)
Fair
Value ($)
1,464,990
254,618
1,719,608
1,563,257
301,377
1,864,634
346,432
879,339
1,782,949
603,897
719,289
1,483,473
397,276
798,243
1,754,982
598,739
640,494
1,540,843
706,554
728,986
1,288,848
595,009
1,216,566
706,401
1,295,880
12,353,623
810,289
776,023
1,277,880
599,938
1,025,380
595,754
1,293,208
12,109,049
948,161
1,256,438
743,748
276,550
179,044
916,782
1,287,710
610,534
256,347
179,187
200,783
403,668
1,262,871
245,380
300,708
1,202,997
448,237
1,257,872
1,459,418
469,937
8,906,727
464,588
1,363,724
1,729,335
410,729
8,968,021
1,406,436
682,345
1,615,835
722,035
428,691
4,855,342
1,469,084
605,154
1,228,919
570,354
179,993
4,053,504
1,566,202
1,144,119
296,410
697,342
3,704,073
1,551,046
1,185,080
305,368
729,473
3,770,967
254,676
235,699
1,279,842
304,848
499,159
324,241
1,206,378
3,869,144
922,966
345,618
504,287
411,633
967,434
3,387,637
270,580
213,208
435,900
706,480
420,256
633,464
Denmark (3.1%)
No. of Shares
9,926
3,412
16,823
15,593
15,078
6,324
3,524
France (20.4%)
7,972
62,245
3,864
10,286
13,133
20,808
ArcelorMittal SA
AXA SA
BNP Paribas SA
Capgemini SA
Carrefour SA
Compagnie de Saint-Gobain SA
Compagnie Generale des
Etablissements Michelin ‘B’
Danone SA
Orange SA
Pernod Ricard SA
Sanofi
Societe Generale SA
TOTAL SA
Germany (15.1%)
4,709
11,480
6,606
11,658
7,700
1,376
4,145
30,814
1,899
11,435
11,261
21,970
Allianz SE
BASF SE
Daimler AG
Deutsche Telekom AG
ElringKlinger AG
Henkel AG & Company
KGaA Preferred
Hugo Boss AG
METRO AG
Muenchener RueckversicherungsGesellschaft AG
SAP SE
Siemens AG
TUI AG
Italy (6.8%)
251,212
32,029
422,417
523,679
58,943
Enel SpA
Eni SpA
Intesa Sanpaolo SpA
Telecom Italia SpA
UniCredit SpA
Fair
Value ($)
242,703
238,802
1,284,888
1,550,789
1,724,705
2,207,834
392,469
7,642,190
292,351
229,924
1,191,452
1,611,942
1,555,649
2,058,180
417,121
7,356,619
383,253
1,455,215
1,008,135
133,630
1,300,866
363,826
905,140
494,600
1,611,786
1,133,013
569,719
1,755,538
1,023,471
389,038
1,577,319
1,226,137
707,451
648,060
699,384
1,201,173
18,586,754
362,236
1,361,326
598,845
131,561
1,239,654
284,501
938,296
471,841
1,562,114
1,075,823
592,819
1,168,101
994,547
227,307
1,379,073
1,146,302
645,354
746,444
651,286
871,710
16,449,140
Switzerland (12.4%)
40,835 Danske Bank AS
10,677 GN Store Nord AS
49,479
28,597
26,017
4,660
18,842
27,177
5,584
Average
Cost ($)
ABB Limited
BB Adamant Biotech AG
LafargeHolcim Limited
Nestle SA
Novartis AG
Roche Holding AG
Swiss Re Limited
United Kingdom (27.7%)
4,257
152,778
209,871
8,842
162,001
73,316
24,962
86,630
55,912
167,859
249,014
1,259,260
53,559
17,752
31,501
33,756
77,531
80,396
30,788
280,201
AstraZeneca PLC
BAE Systems PLC
Barclays PLC
Bovis Homes Group PLC
BP PLC
Centrica 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 (98.7%)
(169,201)
62,174,740
–
58,593,035
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF European Equity Fund (the “Fund”).
Netherlands (6.4%)
17,456
73,167
14,000
30,945
Akzo Nobel NV
ING Groep NV
Refresco Group NV
RELX NV
Spain (5.7%)
16,386 Atresmedia Corporacion de
Medios de Comunicacion SA
116,361 Banco Bilbao Vizcaya
Argentaria SA
11,329 Ebro Foods SA
18,703 Gas Natural SDG SA
23,402 Indra Sistemas SA
72,815 Telefonica SA
Sweden (1.1%)
5,761 Hennes & Mauritz AB ‘B’
44,359 Telefonaktiebolaget
LM Ericsson
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
231
AGF European Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
September 30, 2015
(%)
Financials
Energy
Industrials
Materials
Consumer Discretionary
Telecommunication Services
Health Care
Utilities
Consumer Staples
Information Technology
32.8
11.9
10.0
9.2
9.0
8.2
5.9
5.2
3.8
1.9
September 30, 2016
(%)
Portfolio by Asset Mix
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
September 30, 2016
(%)
International Equity
98.7
September 30, 2015
(%)
International Equity
97.9
September 30, 2015
(%)
United Kingdom
France
Italy
Germany
Spain
Switzerland
Denmark
Finland
Sweden
Norway
Netherlands
31.7
17.2
11.7
11.4
8.7
7.5
2.3
2.0
2.0
1.7
1.7
Portfolio by Sector
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
232
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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 55 percent change in
benchmark (September 30, 2015 – 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 September 30, 2016 and 2015,
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 accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Impact on Net Assets ($’000)
Benchmark
September 30,
2016
September 30,
2015
32,172
53,416
MSCI Europe Index
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
payable for cash collateral under securities lending and payable for
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
Euro Currency
Pound Sterling
Swiss Franc
Danish Krone
Swedish Krona
United States Dollar
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
33,501
16,458
6,176
1,865
633
187
–
–
–
–
–
–
Percentage of
Net Assets (%)
33,501
16,458
6,176
1,865
633
187
56.4
27.7
10.4
3.1
1.1
0.3
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
Percentage of
Net Assets (%)
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
58,593
–
–
–
58,593
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
58,593
–
–
–
58,593
–
–
Level 1
Level 2
Level 3
Total
83,753
–
–
–
83,753
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
83,753
–
–
–
83,753
–
–
September 30, 2015
($’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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
September 30, 2015
($’000)
Euro Currency
Pound Sterling
Swiss Franc
Danish Krone
Swedish Krona
Norwegian Krone
United States Dollar
46,342
27,141
5,095
1,938
1,725
1,481
694
–
–
–
–
–
–
–
46,342
27,141
5,095
1,938
1,725
1,481
694
54.2
31.7
6.0
2.3
2.0
1.7
0.8
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $1,176,000 (September 30,
2015 – $1,688,000).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
233
AGF Fixed Income Plus Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
234
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
1,316,236
372
31,216
–
3,529
2,373
–
–
11,427
–
1,365,153
553,225
2
2,017
–
633
–
–
–
5,730
–
561,607
$
$
–
–
73
–
283
920
731
128
6,705
–
–
8,840
1,356,313
1,286,422
$
$
–
–
457
–
85
491
515
75
–
–
–
1,623
559,984
549,672
$
$
$
$
$
$
$
$
$
1,013,158
–
15,646
35,601
2,912
279,693
–
–
9,303
$
$
$
$
$
$
$
$
$
282,271
–
6,708
18,904
2,754
243,520
–
–
5,827
$
$
$
$
$
$
$
$
$
12.38
–
12.44
12.47
10.41
12.46
–
–
10.23
$
$
$
$
$
$
$
$
$
12.14
–
12.14
12.17
10.16
12.16
–
–
9.94
AGF Fixed Income Plus Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
$
298
32,515
5,469
2015
$
41
14,270
3,510
26,261
64,543
893
(2,396)
15,425
(7,640)
754
1,647
52
(108)
(7,748)
2
(168)
66,074
(305)
7,374
11,820
5,515
948
43
16
64
–
34
11
2
1,508
45
349
24
11
11
–
24
4
2
683
37
7
14,498
10
6,670
(3,864)
10,634
(2,670)
4,000
55,440
$
3,374
$
$
$
$
$
$
$
$
$
38,072
–
525
1,565
151
14,676
–
–
451
$
$
$
$
$
$
$
$
$
861
–
124
588
160
1,707
–
–
(66)
$
$
$
$
$
$
$
$
$
0.70
–
0.67
0.78
0.57
0.67
–
–
0.59
$
$
$
$
$
$
$
$
$
0.04
–
0.31
0.47
0.39
0.15
–
–
(0.22)
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
$
$
55,440
2015
$
–
3,374
(57)
(6,362)
4,130
(27,015)
(1,162,626)
2,504
(555,337)
715,930
–
–
244,060
–
–
(5,697)
(3,105)
–
–
–
–
198
429
(429,703)
42
126
(304,263)
(1,648)
604,351
(412)
385,581
(143,801)
458,902
(79,965)
305,204
–
57
29,199
2,017
31,216
941
1,019
2,017
$
$
5,690
25,526
31,216
$
$
$
$
26,827
253
$
$
(708)
2,725
2,017
11,165
35
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
235
AGF Fixed Income Plus Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
236
2016
282,271
–
6,708
18,904
2,754
243,520
–
–
5,827
559,984
38,072
–
525
1,565
151
14,676
–
–
451
55,440
2015
$
144,328
–
3,722
10,889
3,003
72,437
–
–
–
For the periods ended September 30,
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
2016
$
234,379
861
–
124
588
160
1,707
–
–
(66)
3,374
772,506
–
11,560
17,714
1,046
86,630
–
–
3,651
893,107
185,650
–
4,318
8,012
4,169
199,858
–
–
5,934
407,941
10,811
–
218
765
67
8,313
–
–
102
20,276
3,386
–
150
587
67
5,375
–
–
17
9,582
(78,133)
–
(3,133)
(2,582)
(1,020)
(65,133)
–
–
(516)
(150,517)
(48,267)
–
(1,450)
(585)
(4,495)
(30,482)
–
–
(5)
(85,284)
762,866
332,239
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.
ANNUAL REPORT 2016
(12,369)
–
(232)
(765)
(86)
(8,313)
–
–
(212)
(21,977)
2015
$
(3,687)
–
(156)
(587)
(150)
(5,375)
–
–
(53)
(10,008)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
796,329
325,605
1,013,158
–
15,646
35,601
2,912
279,693
–
–
9,303
282,271
–
6,708
18,904
2,754
243,520
–
–
5,827
1,356,313
$
559,984
AGF Fixed Income Plus Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Average
Cost ($)
Face Value
Fair
Value ($)
Corporate Bonds (44.6%)
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
USD
USD
USD
CAD
CAD
CAD
CAD
USD
USD
CAD
CAD
CAD
CAD
USD
CAD
Face Value
Average
Cost ($)
Fair
Value ($)
33,585,413
33,626,622
3,065,766
3,340,901
1,800,000
1,886,400
12,256,242
13,314,683
9,823,823
9,891,944
3,373,328
3,347,440
6,429,945
6,690,190
9,224,211
9,967,387
3,419,506
3,516,593
6,468,766
6,744,685
9,980,068
10,106,003
2,653,478
2,820,257
5,853,776
6,097,213
6,473,531
6,996,342
5,441,447
5,051,008
3,480,503
3,492,858
6,737,231
6,854,939
6,244,049
6,303,074
10,438,561
10,762,041
6,472,319
6,707,209
13,867,374
14,089,900
9,303,866
9,505,657
627
803
6,598,802
6,831,848
4,615,268
4,744,825
6,037,179
6,783,054
Corporate Bonds (continued)
13,340,000 407 International Inc.
3.600% May 21, 2047
6,932,000 Aimia Inc.
5.600% May 17, 2019
6,005,000 Algonquin Power Company
4.650% February 15, 2022
5,745,000 Anheuser-Busch InBev
Finance Inc.
3.375% January 25, 2023
9,725,000 Bank of America Corporation
3.228% June 22, 2022
12,550,000 Bank of Montreal
2.100% October 6, 2020
17,910,000 Bank of Nova Scotia
2.750% August 13, 2018
6,545,000 Bell Canada
4.350% December 18, 2045
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 Energy
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
4,874,000 Canadian Natural
Resources Limited
3.900% February 1, 2025
5,325,000 Canadian Oil Sands Limited
4.500% Series 144A
April 1, 2022
4,695,000 Canadian Pacific
Railway Company
5.100% January 14, 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
3,085,000 Cemex Finance LLC
6.000% April 1, 2024
4,825,000 Cenovus Energy Inc.
6.750% November 15, 2039
6,065,000 Choice Properties
Limited Partnership
3.600% September 20, 2022
6,250,000 CI Financial Corporation
2.645% December 7, 2020
5,135,000 CIBC Capital Trust
9.976% Series A
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
6,475,000 Cominar Real Estate
Investment Trust
4.247% May 23, 2023
CAD
13,393,372
14,181,120
USD
7,250,351
7,096,092
6,214,673
6,469,055
CAD
5,999,919
6,161,153
CAD
10,228,719
10,147,940
CAD
12,678,596
12,861,795
USD
18,421,622
18,391,776
CAD
6,315,713
6,863,987
CAD
8,657,458
8,872,287
CAD
5,887,036
6,045,154
CAD
6,540,734
6,608,502
CAD
6,942,896
7,193,732
CAD
CAD
2,710,154
2,528,743
CAD
5,967,955
6,420,380
USD
CAD
6,787,407
7,167,885
USD
5,301,771
5,376,876
CAD
7,164,160
7,570,815
7,175,000
7,234,012
CAD
5,903,003
5,901,970
CAD
4,173,758
4,148,550
CAD
5,405,254
6,841,287
CAD
6,360,256
6,448,609
USD
6,280,120
6,343,858
USD
6,403,142
6,118,029
USD
12,872,021
13,111,211
CAD
5,881,339
6,195,313
6,563,254
6,639,797
33,575,000 CPPIB Capital Inc.
1.000% January 15, 2019
1,975,000 Ctrip.com International Limited
Convertible Bonds
1.250% October 15, 2018
1,800,000 Element Financial Corporation
Convertible Debentures
4.250% June 30, 2020
13,145,000 Enbridge Inc.
4.570% March 11, 2044
8,755,000 Fairfax Financial
Holdings Limited
6.400% May 25, 2021
2,800,000 FireEye Inc. Convertible Bonds
1.625% June 1, 2035
6,090,000 First Capital Realty Inc.
4.323% Series S
July 31, 2025
8,625,000 FortisAlberta Inc.
4.270% September 22, 2045
3,360,000 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
2,743,000 Husky Energy Inc.
3.550% March 12, 2025
5,800,000 Hydro One Inc.
2.770% February 24, 2026
5,120,000 Intact Financial Corporation
6.400% November 23, 2039
4,400,000 Intesa Sanpaolo SpA
7.700% December 29, 2049
3,509,000 Just Energy Group Inc.
Convertible Bonds
6.000% June 30, 2017
5,500,000 Just Energy Group Inc.
Convertible Bonds
6.500% July 29, 2019
5,950,000 Leisureworld Senior Care
Limited Partnership
3.474% Series B
February 3, 2021
9,325,000 Loblaw Companies Limited
4.860% September 12, 2023
6,400,000 Magna International Inc.
3.100% December 15, 2022
13,500,000 Morgan Stanley
3.125% August 5, 2021
6,395,000 NAV Canada
7.400% June 1, 2027
600 Navient Corporation
7.250% January 25, 2022
5,260,000 Navistar International
Corporation
8.250% November 1, 2021
3,318,000 Newmont Mining Corporation
Convertible Bonds
1.625% Series B
July 15, 2017
6,285,000 North West Redwater
Partnership/NWR
Financing Company Limited
4.050% July 22, 2044
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
237
AGF Fixed Income Plus Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value
Corporate Bonds (continued)
Corporate Bonds (continued)
CAD
USD
USD
CAD
CAD
USD
USD
CAD
USD
CAD
CAD
USD
CAD
USD
CAD
CAD
CAD
CAD
USD
USD
CAD
CAD
CAD
USD
CAD
238
3,076,000 Northland Power Inc.
Convertible Bonds
4.750% June 30, 2020
1,567,000 Novelis Corporation
5.875% Series 144A
September 30, 2026
14,070,000 OMERS Realty Corporation
2.858% February 23, 2024
6,670,000 Parkland Fuel Corporation
5.750% September 16, 2024
2,690,000 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
1,860,000 Red Hat Inc.
Convertible Bonds
0.250% October 1, 2019
6,045,000 RioCan Real Estate
Investment Trust
3.287% Series W
February 12, 2024
17,420,000 Royal Bank of Canada
2.480% June 4, 2025
2,075,000 salesforce.com inc.
Convertible Bonds
0.250% April 1, 2018
2,983,000 Scotiabank Tier 1 Trust
Floating Rate
7.802% June 30, 2108
1,795,000 ServiceNow Inc.
Zero Coupon
Convertible Bonds
November 1, 2018
13,590,000 Sun Life Financial Inc.
Floating Rate
2.600% September 25, 2025
2,900,000 TD Capital Trust IV
Floating Rate
6.631% June 30, 2108
11,675,000 TELUS Corporation
5.150% November 26, 2043
6,555,000 The Manufacturers Life
Insurance Company
Floating Rate
4.165% June 1, 2022
1,124,000 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
9,340,000 Thomson Reuters
Corporation
4.350% September 30, 2020
6,300,000 Toromont Industries Limited
3.710% September 30, 2025
20,200,000 Toronto-Dominion Bank
2.045% March 8, 2021
4,935,000 TransCanada PipeLines
Limited Floating Rate
6.350% May 15, 2067
1,481,000 Tricon Capital Group Inc.
Convertible Bonds
5.600% March 31, 2020
3,158,735
3,611,224
2,035,185
2,104,652
14,484,905
14,850,984
6,817,875
6,850,646
3,304,399
3,551,203
CAD
7,253,575
13,396,114
13,440,819
Fair
Value ($)
6,005,649
6,186,959
12,755,813 13,283,989
590,455,394 604,906,863
Emerging Markets Bonds (1.7%)
USD
USD
PEN
MXN
6,733,135
4,470,000 UBS Group AG Floating Rate
7.000% December 29, 2049
12,475,000 Wells Fargo & Company
3.874% May 21, 2025
Average
Cost ($)
2,335,000 Cemex SAB de CV
Convertible Bonds
3.750% March 15, 2018
2,230,000 Republic of Hungary
6.250% January 29, 2020
15,580,000 Republic of Peru
7.840% August 12, 2020
125,727,500 United Mexican States
8.000% Series M
December 7, 2023
3,397,536
3,438,670
3,227,999
3,287,844
6,751,304
6,725,478
10,367,408
23,744,247
9,563,750
23,015,742
11,910,948
12,741,635
14,919,583
13,410,715
13,669,510
13,539,405
28,265,507
26,727,920
34,732,193
36,615,587
19,918,308
20,549,807
13,002,211
13,533,238
Government Bonds (13.5%)
CAD
2,821,847
3,088,412
CAD
6,095,879
6,236,235
CAD
17,332,290
17,334,777
CAD
3,417,834
3,254,845
CAD
USD
3,477,579
3,390,417
USD
2,601,428
2,867,152
13,519,505
13,725,262
3,428,973
3,405,916
12,970,427
13,315,171
USD
CAD
CAD
6,660,426
1,539,654
1,583,386
43,335,565 46,694,570
179,753,825 183,812,877
Government Guaranteed Investments (8.7%)
CAD
6,758,807
9,276,000 Canada Post Corporation
4.360% July 16, 2040
6,305,000 Government of Canada
Real Return Bonds
4.250% December 1, 2026
8,900,000 Government of Canada
5.750% June 1, 2029
13,675,000 Government of Canada
Real Return Bonds
3.000% December 1, 2036
23,060,000 Government of Canada
5.000% June 1, 2037
14,790,000 U.S. Treasury Inflation Index
Linked Notes
0.125% January 15, 2023
9,770,000 U.S. Treasury Notes
2.250% November 15, 2024
25,290,000 U.S. Treasury Notes
4.500% February 15, 2036
CAD
55,550,000 Canada Housing Trust
2.350% December 15, 2018
10,100,000 Canada Housing Trust
Floating Rate
0.840% September 15, 2019
10,050,000 Canada Housing Trust
1.075% September 15, 2021
33,905,000 Labrador-Island Link
Funding Trust
3.760% Series A June 1, 2033
57,690,505
57,533,400
10,085,006
10,093,334
10,067,085
10,047,588
38,870,137 40,636,265
116,712,733 118,310,587
High Yield Bonds (3.0%)
6,224,156
6,315,662
USD
USD
10,123,754
10,180,917
6,342,563
6,561,529
20,386,395
5,935,491
1,662,240
20,644,548
5,150,443
USD
USD
USD
1,900,000 Ally Financial Inc.
5.750% November 20, 2025
3,480,000 Cascades Inc.
5.500% July 15, 2022
5,050,000 CCO Holdings LLC/Capital
Corporation
5.125% February 15, 2023
2,605,000 Frontier Communications
Corporation
7.125% January 15, 2023
2,980,000 ILFC E-Capital Trust II
Floating Rate
4.250% December 21, 2065
1,643,910
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
2,437,739
2,607,993
4,455,138
4,639,777
6,613,571
6,906,925
3,066,445
3,186,940
3,433,708
3,117,915
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value/
No. of Shares
High Yield Bonds (continued)
Provincial Bonds (continued)
USD
CAD
CAD
CAD
USD
2,922,000 Neiman Marcus Group
Limited LLC
8.000% October 15,
2021
6,075,000 Quebecor Media Inc.
6.625% January 15, 2023
3,814,000 Sirius XM Canada
Holdings Inc.
5.625% April 23, 2021
4,405,000 Western Digital
Corporation
10.500% Series 144A
April 1, 2024
3,355,336
3,200,987
Supranational Bonds (2.9%)
6,268,984
6,399,000
3,711,880
3,818,767
5,702,752
39,045,553
6,703,802
40,582,106
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
12,600,000 International Bank for
Reconstruction
and Development
1.250% March 18,
2021
13,499,621
13,680,978
13,961,360
14,277,218
Municipal Bond (1.0%)
CAD
12,450,000 City of Montreal
3.500% September 1, 2023
Provincial Bonds (21.3%)
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
14,000,000 Province of Alberta
2.200% June 1, 2026
12,500,000 Province of Alberta
3.300% December 1, 2046
28,855,000 Province of British
Columbia
5.700% June 18, 2029
16,085,000 Province of Manitoba
2.550% June 2, 2026
7,760,000 Province of Manitoba
4.600% March 5, 2038
6,850,000 Province of Ontario
1.900% September 8, 2017
45,725,000 Province of Ontario
2.850% June 2, 2023
46,595,000 Province of Ontario
5.600% June 2, 2035
24,805,000 Province of Quebec
4.500% December 1, 2018
13,350,000 Province of Quebec
1.297% April 19, 2022
8,165,000 Province of Quebec
3.500% December 1, 2022
13,275,000 Province of Quebec
5.750% December 1, 2036
Average
Cost ($)
Fair
Value ($)
18,543,159
279,936,270
19,676,776
288,358,709
3,318,776
3,392,575
21,654,732
22,718,895
12,511,819
37,485,327
12,628,645
38,740,115
–
1
5,796,788
4,828,270
Energy (0.0%)
625,000 Lone Pine Resources
Inc.*
Health Care (0.4%)
13,735,875
13,789,689
38,942,966
40,296,261
16,658,591
16,876,068
9,272,863
9,988,008
6,962,314
6,929,076
48,533,014
49,674,844
63,679,359
67,601,565
Total Portfolio (97.1%)
27,318,914
26,741,982
* Private and/or Restricted
13,357,343
13,353,337
8,970,512
9,153,885
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF Fixed Income Plus Fund (the “Fund”).
4,525 Teva Pharmaceutical Industries
Limited
Convertible Preferred 7.000%
Commissions and other portfolio
transaction costs (Note 2)
(8,057)
–
Total Investments (97.1%)
1,286,421,701 1,316,236,248
Foreign Exchange Forward Contracts (0.0%)
See Schedule A
–
299,291
1,286,421,701 1,316,535,539
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
CAD
CAD
CAD
34,495,280
59,633,555
50,015,543
11,414,961
20,280,321
Sold Currency Forward Rate
USD
USD
USD
USD
USD
26,217,000
45,322,000
38,063,000
8,725,000
15,495,000
1.3158
1.3158
1.3140
1.3083
1.3088
Maturity Date Fair Value ($)
October 14, 2016
October 14, 2016
October 26, 2016
October 31, 2016
October 31, 2016
Counterparty Credit Rating
103,557
Bank of Nova Scotia
179,702
Citibank NA
88,687
Bank of America
(29,104)
Royal Bank of Canada
(43,551) The Bank of New York Mellon Corporation
299,291
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
A
A
BBB
AA
A
239
AGF Fixed Income Plus Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
Summary of Investment Portfolio
As at September 30, 2016 and 2015, 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
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
September 30, 2015
(%)
Corporate Bonds
Provincial Bonds
Government Bonds
Government Guaranteed Investments
High Yield Bonds
Supranational Bonds
Emerging Markets Bonds
Energy
Foreign Exchange Forward Contracts
43.1
20.8
16.2
11.9
4.2
2.4
0.2
0.0
(0.1)
Portfolio by Asset Mix
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
September 30, 2015
(%)
Canadian Fixed Income
United States Fixed Income
International Fixed Income
Canadian Equity
Foreign Exchange Forward Contracts
79.5
15.5
3.8
0.0
(0.1)
As at September 30, 2016, the total fair value of private and/or restricted
securities held within the Fund represented approximately $0
(September 30, 2015 – $13,000).
240
Credit Risk
As at September 30, 2016 and 2015, the Fund invested in debt
instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
September 30,
2016
September 30,
2015
29.0
10.7
26.4
22.2
4.7
2.5
0.7
3.1
31.6
10.0
25.3
20.7
4.3
3.5
0.8
2.9
Interest Rate Risk
As at September 30, 2016 and 2015, the Fund’s exposure to debt
instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
September 30,
2016
September 30,
2015
15,167
176,632
168,872
950,737
–
24,491
128,608
400,113
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at September 30, 2016 and 2015, 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 $23,611,000 (September 30, 2015 – $9,579,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The impact on Net Assets of the Fund due to a 20 percent change in
benchmark (September 30, 2015 – 10 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at September 30, 2016 and 2015,
with all other variables held constant, is included in the following table.
Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
FTSE TMX Canada Universe Bond Index
September 30,
2016
September 30,
2015
273,840
56,028
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 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 September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
United States Dollar
Mexican Peso
Peruvian New Sol
Indonesian Rupiah
Foreign
Exchange
Percentage
Financial Forward
of Net
Instruments Contracts Total** Assets (%)
233,217
9,564
6,725
3,393
(175,541) 57,676
–
9,564
–
6,725
–
3,393
4.3
0.7
0.5
0.3
September 30, 2015
($’000)
United States Dollar
Mexican Peso
Foreign
Exchange
Percentage
Financial Forward
of Net
Instruments Contracts Total** Assets (%)
87,432
1,104
(67,882) 19,550
–
1,104
3.5
0.2
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 September 30, 2016 and 2015.
September 30, 2016
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
4,828
–
–
–
4,828
–
–
Level 3
–
1,311,408
–
–
1,311,408
372
(73)
–
–
–
–
–
–
–
Total
4,828
1,311,408
–
–
1,316,236
372
(73)
September 30, 2015
($’000)
Level 1
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
–
–
–
–
–
–
–
Level 2
Level 3
–
553,212
–
–
553,212
2
(457)
Total
13
–
–
–
13
–
–
13
553,212
–
–
553,225
2
(457)
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
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 September 30, 2016 and 2015. The
level 3 positions held in the Fund were not considered significant.
September 30, 2016
($’000)
Balance at Beginning of period
Investment purchases during the period
Proceeds from sales during the period
Net transfers in (out) during the period
Net realized gain (loss) on investments
Net change in unrealized appreciation
(depreciation) in value of investments
Balance at End of Period
Total change in unrealized appreciation
(depreciation) for assets held as at
September 30, 2016
Equities
Debt
Instruments
Total
13
–
–
–
(624)
–
–
–
–
–
13
–
–
–
(624)
611
–
–
–
611
–
–
September 30, 2015
** Includes both monetary and non-monetary instruments, as applicable
($’000)
As at September 30, 2016 and 2015, 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 $1,547,000 (September 30,
2015 – $413,000).
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, 2015
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Level 2
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Equities
Debt
Instruments
Total
117
–
–
–
–
–
–
–
–
–
117
–
–
–
–
(104)
13
–
–
(104)
13
(104)
241
AGF Flex Asset Allocation Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
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
September 30,
2016
September 30,
2015
$
$
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 9)
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
242
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
22,651
31
227
–
17
107
–
4
12
–
23,049
1,384
0
697
–
319
–
–
–
–
–
2,400
$
$
–
–
20
–
5
–
94
–
97
–
–
216
22,833
22,296
$
$
–
–
0
–
–
6
–
–
851
–
–
857
1,543
1,377
$
$
$
$
$
$
$
$
$
14,173
–
5,002
–
2,156
–
–
–
1,502
$
$
$
$
$
$
$
$
$
965
–
256
–
321
–
–
–
1
$
$
$
$
$
$
$
$
$
9.96
–
9.93
–
10.20
–
–
–
10.34
$
$
$
$
$
$
$
$
$
9.86
–
9.78
–
9.91
–
–
–
10.04
AGF Flex Asset Allocation Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends and distributions
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
$
420
2
(218)
2015
$
–
–
–
348
552
348
7
7
(4)
11
359
–
–
(4)
–
(3)
908
(2)
1
204
0
83
21
12
21
–
22
–
2
46
62
6
9
11
1
–
3
–
–
3
–
58
531
1
34
(139)
392
(27)
7
516
$
(6)
$
$
$
$
$
$
$
$
$
283
–
112
–
115
–
–
–
6
$
$
$
$
$
$
$
$
$
(5)
–
(1)
–
0
–
–
–
0
$
$
$
$
$
$
$
$
$
0.25
–
0.29
–
0.47
–
–
–
0.16
$
$
$
$
$
$
$
$
$
(0.17)
–
(0.13)
–
0.20
–
–
–
0.04
For the periods ended September 30,
2016
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 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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends and distributions received, net of
withholding tax *
516
2015
$
(6)
–
1
(130)
4
(359)
(61,732)
(7)
(547)
40,082
17
–
(4)
–
–
(12)
–
–
–
–
–
5
(6)
(21,640)
–
6
(532)
–
27,769
(6,599)
21,170
–
1,230
–
1,230
–
$
$
(470)
697
227
(1)
$
$
698
–
697
$
–
227
227
$
18
679
697
$
2
$
–
$
345
$
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
243
AGF Flex Asset Allocation Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
244
2016
965
–
256
–
321
–
–
–
1
1,543
283
–
112
–
115
–
–
–
6
516
2015
$
–
–
–
–
–
–
–
–
–
For the periods ended September 30,
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
2016
$
–
(5)
–
(1)
–
0
–
–
–
0
(6)
17,465
–
6,286
–
4,325
–
–
–
1,499
29,575
970
–
257
–
321
–
–
–
1
1,549
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(4,540)
–
(1,652)
–
(2,605)
–
–
–
(4)
(8,801)
–
–
–
–
–
–
–
–
–
–
20,774
1,549
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.
ANNUAL REPORT 2016
–
–
–
–
–
–
–
–
–
–
2015
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
21,290
1,543
14,173
–
5,002
–
2,156
–
–
–
1,502
965
–
256
–
321
–
–
–
1
22,833
$
1,543
AGF Flex Asset Allocation Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Units
Average
Cost ($)
Fair
Value ($)
1,295,922
1,333,667
ETFs – Commodity (5.8%)
No. of Units
Average
Cost ($)
Fair
Value ($)
869,756
907,056
3,964,747
4,078,217
224,184
7,873,259
228,005
8,056,489
ETFs – United States Fixed Income (continued)
8,091 SPDR Gold Shares ETF
8,745 SPDR Barclays Long Term
Treasury ETF
34,701 Vanguard Intermediate-Term
Corporate Bond
Index Fund ETF
1,816 Vanguard Long-Term Corporate
Bond Index Fund ETF
ETFs – International Equity (11.5%)
12,786 iShares Edge MSCI Minimum
Volatility EAFE Index ETF
11,468 Vanguard FTSE All-World ex-US
Index Fund ETF
16,176 Vanguard FTSE Emerging
Markets Index Fund ETF
1,121,529
1,134,633
661,419
683,415
764,394
2,547,342
798,588
2,616,636
ETFs – United States Short-Term Income (9.9%)
37,730 SPDR Barclays 1-3 Month
T-Bill ETF
ETFs – International Fixed Income (5.0%)
30,575 SPDR Barclays Emerging
Markets Local Bond ETF
1,124,757
1,136,398
ETFs – United States Equity (31.7%)
22,773 iShares Edge MSCI USA
Minimum Volatility
Index ETF
7,240 SPDR S&P 500 ETF Trust
9,774 The Consumer Staples Select
Sector SPDR Fund
8,993 The Industrial Select Sector
SPDR Fund
10,963 The Technology Select Sector
SPDR Fund
15,585 Vanguard REIT Index Fund ETF
1,353,646
2,020,585
1,357,314
2,054,529
703,856
682,312
672,322
688,789
668,005
1,774,640
7,193,054
687,215
1,773,550
7,243,709
1,662,533
1,710,928
1,152,039
1,132,283
2,274,857
(12,872)
Total Investments (99.2%)
22,296,319
Foreign Exchange Forward Contracts (0.0%)
See Schedule A
ETFs – United States Fixed Income (35.3%)
35,515 SPDR Barclays High Yield
Bond ETF
14,070 SPDR Barclays Intermediate
Term Treasury ETF
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (99.2%)
2,263,629
–
22,650,528
–
10,744
22,296,319
22,661,272
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
September 30, 2016 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
150,000
3,170,982
2,697,339
2,759,442
2,690,177
2,715,881
2,682,025
2,617,660
2,761,779
Sold Currency Forward Rate
CAD
USD
USD
USD
USD
USD
USD
USD
USD
198,903
2,410,000
2,050,000
2,100,000
2,045,000
2,070,000
2,050,000
2,000,000
2,110,000
0.7541
1.3158
1.3158
1.3140
1.3155
1.3120
1.3083
1.3088
1.3089
Maturity Date Fair Value ($)
October 14, 2016
October 14, 2016
October 14, 2016
October 26, 2016
October 27, 2016
October 31, 2016
October 31, 2016
October 31, 2016
October 31, 2016
Counterparty Credit Rating
(2,131)
Bank of Nova Scotia
9,520
Bank of Nova Scotia
8,128
Citibank NA
4,893
Bank of America
7,791
Bank of Montreal
785
National Bank of Canada
(6,838)
Royal Bank of Canada
(5,621) The Bank of New York Mellon Corporation
(5,783)
Toronto-Dominion Bank
10,744
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
A
A
A
BBB
A
A
AA
A
AA
245
AGF Flex Asset Allocation Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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.
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
September 30, 2016 and 2015 are included in the following tables:
Summary of Investment Portfolio
As at September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
September 30, 2016
Portfolio by Country
September 30, 2016
(%)
United States
ETFs – International
Foreign Exchange Forward Contracts
82.7
16.5
0.0
September 30, 2015
(%)
United States
ETFs – International
Foreign Exchange Forward Contracts
85.8
3.9
0.0
Portfolio by Sector
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
September 30, 2015
(%)
ETFs – United States Fixed Income
ETFs – United States Short-Term Income
ETFs – United States Equity
ETFs – International Equity
Foreign Exchange Forward Contracts
54.4
27.0
4.4
3.9
0.0
Portfolio by Asset Mix
September 30, 2016
(%)
United States Equity
International Equity
Foreign Exchange Forward Contracts
82.7
16.5
0.0
September 30, 2015
(%)
United States Equity
International Equity
Foreign Exchange Forward Contracts
85.8
3.9
0.0
SPDR Barclays Emerging Markets Local
Bond ETF
SPDR Barclays Intermediate Term Treasury ETF
SPDR Barclays Long Term Treasury ETF
SPDR 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 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
September 30, 2015
SPDR Barclays Short Term Treasury ETF
SPDR Barclays Long Term Treasury ETF
SPDR Barclays Intermediate Term Treasury ETF
SPDR Barclays 1-3 Month T-Bill ETF
Vanguard Intermediate-Term Corporate Bond
Index Fund ETF
Vanguard Long-Term Corporate Bond
Index Fund ETF
iShares MSCI EAFE Minimum Volatility ETF
iShares MSCI USA Minimum Volatility ETF
SPDR Barclays High Yield Bond ETF
Vanguard Pacific Stock Index Fund ETF
Vanguard European Stock Index Fund ETF
Vanguard REIT Index Fund ETF
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
1,136
1,132
907
2,264
0.4
0.2
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
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
97
210
139
416
0.1
0.1
0.0
0.0
313
0.0
27
34
48
53
13
13
21
0.0
0.0
0.0
0.0
0.0
0.0
0.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
246
Credit Risk
As at September 30, 2016 and 2015, the Fund had no significant
investments in debt instruments and derivatives. Accordingly, the
Fund was not subject to significant credit risk.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
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.
As at September 30, 2016, the Fund did not hold any significant cash
and cash equivalents. As at September 30, 2015, 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 $2,000.
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
22,651
(21,886)
765
3.4
September 30, 2015
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
United States Dollar
The impact on Net Assets of the Fund due to a 5 percent change in
benchmark (September 30, 2015 – 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 September 30, 2016 and 2015,
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.
As at September 30, 2016 and 2015, 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 $15,000 (September 30, 2015 –
$15,000).
Impact on Net Assets ($’000)
Benchmark
FTSE TMX Canada 91 Day T-Bill Index
September 30,
2016
(1,902)
September 30,
2015
(3,558)
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.
1,300
(566)
734
47.6
** Includes both monetary and non-monetary instruments, as applicable
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 September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
22,651
–
–
–
22,651
–
–
Level 2
–
–
–
–
–
31
(20)
Level 3
–
–
–
–
–
–
–
Total
22,651
–
–
–
22,651
31
(20)
September 30, 2015
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
1,384
–
–
–
1,384
–
–
–
–
–
–
–
0
0
–
–
–
–
–
–
–
1,384
–
–
–
1,384
0
0
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
247
AGF Floating Rate Income Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
248
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
266,708
336
16,804
–
768
1,691
–
–
1,304
–
287,611
355,485
540
12,118
–
248
2,632
–
–
2,246
–
373,269
$
$
–
–
330
–
67
302
1,315
126
6,861
–
–
9,001
278,610
245,344
$
$
–
–
4,866
–
88
265
797
282
500
–
–
6,798
366,471
317,048
$
$
$
$
$
$
$
$
$
226,626
–
31,532
12,981
3,903
–
812
559
2,197
$
$
$
$
$
$
$
$
$
290,012
–
50,236
11,595
7,374
–
1,629
1,250
4,375
$
$
$
$
$
$
$
$
$
9.73
–
9.76
9.77
9.64
–
7.81
8.96
9.61
$
$
$
$
$
$
$
$
$
9.60
–
9.62
9.62
9.50
–
8.08
8.98
9.48
AGF Floating Rate Income Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
$
–
16,330
15,824
2015
$
–
20,894
36,710
(17,073)
15,081
(7,139)
19,142
76,746
(80,782)
4,332
(2,807)
–
5,397
(75,385)
–
6,671
18,945
1,213
2,574
3,854
4,951
659
28
12
19
–
37
2
2
558
–
584
28
11
22
–
56
2
2
690
–
–
5,171
–
6,346
(33)
5,138
(94)
6,252
13,807
$
(3,678)
$
$
$
$
$
$
$
$
$
10,901
–
1,590
829
277
–
44
19
147
$
$
$
$
$
$
$
$
$
(4,158)
–
(29)
34
281
226
(17)
(9)
(6)
$
$
$
$
$
$
$
$
$
0.40
–
0.39
0.67
0.51
–
0.30
0.22
0.45
$
$
$
$
$
$
$
$
$
(0.14)
–
(0.00)
0.03
0.19
0.27
(0.07)
(0.05)
(0.02)
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
$
$
13,807
2015
$
–
(3,678)
(1,771)
(8,685)
44,072
12,741
(90,116)
(24,539)
(170,398)
177,807
–
–
233,773
–
–
942
37
–
–
–
–
(21)
37
106,512
(13)
(5)
77,478
(2,718)
17,815
(3,624)
111,924
(116,923)
(101,826)
(183,416)
(75,116)
–
1,771
4,686
12,118
16,804
2,362
7,985
12,118
$
$
16,804
–
16,804
$
$
12,118
–
12,118
$
$
17,271
–
$
$
20,931
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
249
AGF Floating Rate Income Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
250
2016
290,012
–
50,236
11,595
7,374
–
1,629
1,250
4,375
366,471
10,901
–
1,590
829
277
–
44
19
147
13,807
2015
$
311,503
–
88,840
9,338
20,125
8,422
2,545
1,899
2,755
For the periods ended September 30,
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
2016
$
445,427
(4,158)
–
(29)
34
281
226
(17)
(9)
(6)
(3,678)
12,693
–
6,013
2,421
151
–
99
11
419
21,807
92,033
–
16,715
2,988
2,246
2,593
111
217
2,735
119,638
7,049
–
1,069
399
232
–
40
12
112
8,913
7,986
–
1,776
425
600
220
67
38
121
11,233
(85,233)
–
(25,873)
(1,639)
(3,867)
–
(909)
(695)
(2,697)
(120,913)
(107,136)
–
(54,438)
(629)
(15,156)
(11,241)
(898)
(810)
(1,021)
(191,329)
(90,193)
(60,458)
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.
ANNUAL REPORT 2016
(8,796)
–
(1,503)
(624)
(264)
–
(74)
(34)
(159)
(11,454)
2015
$
–
–
–
–
–
–
–
–
–
–
(10,216)
–
(2,628)
(561)
(722)
(220)
(75)
(57)
(209)
(14,688)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(17)
(4)
–
(21)
–
–
–
–
–
–
(104)
(28)
–
(132)
(87,861)
(78,956)
226,626
–
31,532
12,981
3,903
–
812
559
2,197
290,012
–
50,236
11,595
7,374
–
1,629
1,250
4,375
278,610
$
366,471
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Face Value
Average
Cost ($)
Fair
Value ($)
Face Value
Consumer Discretionary (19.7%)
Consumer Discretionary (continued)
USD 2,093,454 1011778 B.C. Unlimited
Liability Company
Term Loan B2
December 10, 2021
USD
190,000 ALM Media Holdings Inc.
First Lien Term Loan
July 31, 2020*
USD 1,521,367 Amaya Holdings BV
USD First Lien Term Loan
August 1, 2021
USD
91,875 Amaya Holdings BV
USD Second Lien
Term Loan
August 1, 2022
USD
645,125 AMC Entertainment Inc.
New Term Loan
December 15, 2022
USD
864,551 Apex Tool Group LLC
Term Loan B
January 31, 2020
USD
562,165 Ascena Retail Group Inc.
Term Loan B
August 21, 2022
USD 1,225,000 Bombardier Recreational
Products Inc.
Term Loan B
June 30, 2023
USD
45,667 Boyd Gaming Corporation
Term Loan B
August 14, 2020
USD
225,000 Boyd Gaming Corporation
Term Loan B2
September 15, 2023
USD
300,000 Camelot UK Holdco Limited
Term Loan B
September 7, 2023
USD
148,500 CDS U.S. Intermediate
Holdings Inc.
First Lien Term Loan
July 8, 2022
USD
628,875 Centerplate Inc.
Term Loan A
November 26, 2019
USD
746,250 Charter Communications
Operating LLC
Term Loan I
January 24, 2023
USD
219,132 CityCenter Holdings LLC
Term Loan B
October 16, 2020
USD
600,000 ClubCorp Club Operations Inc.
Term Loan
December 15, 2022
USD
361,542 Crossmark Holdings Inc.
First Lien Term Loan
December 20, 2019
USD 1,738,756 CS Intermediate Holdco 2 LLC
New Term Loan B
April 4, 2021
USD 1,715,838 Cumulus Media Holdings Inc.
Term Loan
December 23, 2020
USD
260,211 David’s Bridal Inc.
New Term Loan B
October 11, 2019
USD
266,018 Emerald Expositions
Holding Inc.
Term Loan B
June 17, 2020
USD
2,611,906
2,761,384
204,210
244,410
USD
USD
1,703,377
1,990,345
USD
98,746
120,046
875,101
852,266
904,804
1,117,234
710,252
710,664
1,585,307
1,608,143
USD
47,024
60,100
USD
288,809
296,812
USD
394,468
393,708
USD
USD
USD
USD
USD
183,072
194,581
USD
669,073
812,677
USD
969,629
984,753
USD
239,736
289,108
USD
811,174
789,138
USD
365,745
303,568
USD
1,982,202
2,290,190
USD
1,814,015
1,566,385
266,189
321,470
USD
USD
288,844
348,130
323,741 Entercom Radio LLC
New Term Loan B
November 23, 2018
632,385 Evergreen Acqco 1
Limited Partnership
New Term Loan
July 9, 2019
1,146,551 Federal-Mogul
Holdings Corporation
New Term Loan C
April 15, 2021
198,598 Garda World
Security Corporation
Delayed Draw Term Loan
November 6, 2020
973,801 Garda World
Security Corporation
New Term Loan B
November 6, 2020
675,000 Harbor Freight Tools USA Inc.
Term Loan B
August 19, 2023
289,063 Horizon Global Corporation
Term Loan B
June 30, 2021
699,982 J.Crew Group Inc.
New Term Loan B
March 5, 2021
450,000 J.D. Power and Associates
First Lien Term Loan
September 7, 2023
694,561 Jo-Ann Stores Inc.
Term Loan
March 16, 2018
396,000 KUEHG Corporation
First Lien Term Loan
August 13, 2022
650,000 Landry’s Inc.
Term Loan B
October 4, 2023
990,412 Laureate Education Inc.
Term Loan B
June 15, 2018
275,000 LSC Communications Inc.
Term Loan B
September 26, 2022
173,122 Merrill Communications LLC
Term Loan
June 1, 2022
341,500 Michaels Stores Inc.
Term Loan B1
January 27, 2023
1,354,476 Monitronics International Inc.
Term Loan B2
September 22, 2022
1,096,543 MPG Holdco I Inc.
Term Loan B
October 20, 2021
929,612 Nord Anglia Education
Finance LLC
Term Loan
March 31, 2021
671,339 NPC International Inc.
Term Loan B
December 28, 2018
198,595 Penton Media Inc.
Term Loan
October 3, 2019
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Average
Cost ($)
Fair
Value ($)
346,069
423,776
655,269
756,648
1,258,945
1,450,441
218,416
257,294
1,092,184
1,261,608
863,172
889,994
364,994
381,132
771,392
722,866
571,408
594,805
694,110
910,091
510,022
521,480
847,760
857,031
1,034,852
1,291,251
354,890
355,374
214,001
211,228
449,338
449,338
1,766,096
1,768,120
1,336,149
1,440,150
1,217,717
1,222,654
927,153
881,865
239,371
260,221
251
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 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
252
938,150 PetSmart Inc.
Tranche B-1 Loan
March 11, 2022
219,938 Pier 1 Imports (U.S.) Inc.
Term Loan B
April 30, 2021
647,964 Pilot Travel Centers LLC
Term Loan B
May 25, 2023
299,250 Prime Security Services
Borrower LLC Incremental
Term Loan B1
May 2, 2022
474,069 RGIS Services LLC
Term Loan C
October 18, 2017
880,379 Scientific Games
International Inc.
Term Loan B1
October 18, 2020
1,356,213 Serta Simmons Holdings LLC
Term Loan
October 1, 2019
1,029,000 ServiceMaster Company
Term Loan B
July 1, 2021
180,886 SGS Cayman
Limited Partnership
Term Loan B
April 23, 2021
2,172,500 Sinclair Television Group Inc.
Term Loan B1
July 30, 2021
1,188,548 Spin Holdco Inc.
New Term Loan B
November 14, 2019
282,244 SRAM LLC
New Term Loan B
April 10, 2020
633,750 Stena International SARL
Term Loan B
March 3, 2021
777,076 Sutherland Global Services Inc.
Term Loan B
April 23, 2021
750,000 The Goodyear Tire &
Rubber Company
New Second Lien Term Loan
April 30, 2019
368,494 The Men’s Wearhouse Inc.
Term Loan B
June 18, 2021
510,081 The Neiman Marcus Group
Limited LLC
Term Loan
October 25, 2020
420,750 TI Group Automotive
Systems LLC
USD Term Loan
June 30, 2022
140,399 Tower Automotive Holdings
USA LLC
New Term Loan
April 23, 2020
528,774 Travelport Finance
(Luxembourg) SARL
Term Loan B
September 2, 2021
388,830
396,159
145,500 Tropicana Entertainment Inc.
Term Loan
November 27, 2020
USD
375,000 UFC Holdings LLC
First Lien Term Loan
August 18, 2023
USD 1,037,375 Weight Watchers
International Inc.
Term Loan B2
April 2, 2020
USD
274,313 Yum! Brands Inc.
First Lien Term Loan B
June 16, 2023
474,160
570,644
Consumer Staples (4.4%)
1,160,725
1,232,345
240,112
258,971
849,157
854,135
USD
USD
911,320
1,158,107
USD
1,443,958
1,782,897
USD
1,087,529
1,363,075
USD
209,063
235,533
USD
2,647,887
2,858,525
USD
1,211,610
1,547,134
USD
284,835
359,181
USD
698,281
702,574
USD
898,123
1,011,839
USD
918,186
988,355
400,743
479,820
581,335
617,099
517,403
553,153
USD
USD
USD
652,788 AdvancePierre Foods Inc.
Term Loan June 2, 2023
564,167 Albertsons LLC
Term Loan B4
August 25, 2021
920,219 Albertsons LLC
Term Loan B6
June 22, 2023
424,945 Clearwater Seafoods Limited
Partnership
USD Term Loan B
June 26, 2019
1,267,500 Del Monte Foods Inc.
First Lien Term Loan
February 18, 2021
315,000 Flavors Holdings Inc.
First Lien Term Loan
April 3, 2020
550,000 Galleria Company
USD Term Loan B
January 26, 2023
509,250 JBS USA LLC
Incremental Term Loan
September 18, 2020
283,290 Keurig Green Mountain Inc.
USD Term Loan B
March 3, 2023
544,500 KIK Custom Products Inc.
Term Loan B
August 26, 2022
487,500 PFS Holding Corporation
First Lien Term Loan
January 31, 2021
500,000 Rite Aid Corporation
Second Lien Term Loan
August 21, 2020
554,769 Spectrum Brands Inc.
USD Term Loan
June 23, 2022
1,870,689 Supervalu Inc. Refinance
Term Loan B
March 21, 2019
USD
183,736
USD
USD
687,912
Fair
Value ($)
152,691
190,412
487,749
494,705
1,039,031
1,032,647
357,689
50,551,782
362,455
54,892,162
842,498
860,886
720,156
744,230
1,182,964
1,218,147
446,559
557,274
1,347,718
1,560,351
338,115
343,009
716,408
723,827
523,828
666,023
385,190
376,029
701,731
713,166
530,047
598,003
522,627
657,205
682,379
729,558
2,430,100
11,370,320
2,453,568
12,201,276
245,999
210,420
298,461
333,580
259,818
327,988
512,029
567,205
Corporate Bonds (7.7%)
USD
156,462
Average
Cost ($)
696,182
195,000 Acosta Inc.
7.750% October 1, 2022
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
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value
Corporate Bonds (continued)
Corporate 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
USD
500,000 AmeriGas Finance
LLC/Corporation
7.000% May 20, 2022
88,236 Ardagh Packaging Finance PLC/
MP Holdings USA Inc.
7.000% November 15, 2020
175,000 Blue Racer Midstream LLC/
Finance Corporation
6.125% November 15, 2022
1,000,000 CBC Ammo LLC/FinCo Inc.
7.250% November 15, 2021
500,000 Compass Investors Inc.
7.750% January 15, 2021
500,000 Concho Resources Inc.
5.500% April 1, 2023
250,000 ConvaTec Healthcare E SA
10.500% December 15, 2018
250,000 CSC Holdings LLC
6.750% November 15, 2021
500,000 Denbury Resources Inc.
5.500% May 1, 2022
350,000 Digicel Group Limited
6.000% April 15, 2021
330,000 Dollar Tree Inc.
5.750% March 1, 2023
500,000 Dynegy Inc.
7.375% November 1, 2022
500,000 Endeavor Energy Resources
Limited Partnership
7.000% August 15, 2021
500,000 Gulfport Energy Corporation
6.625% May 1, 2023
750,000 Hot Topic Inc.
9.250% June 15, 2021
35,000 Micron Technology Inc.
5.500% February 1, 2025
140,000 Netflix Inc.
5.500% February 15, 2022
120,000 Netflix Inc.
5.875% February 15, 2025
500,000 NPC International/Operating
Company A/B Inc.
10.500% January 15, 2020
90,000 Nuance Communications Inc.
5.375% August 15, 2020
250,000 Opal Acquisition Inc.
8.875% December 15, 2021
250,000 PBF Holding Company LLC/
Finance Corporation
8.250% February 15, 2020
500,000 Reliance Intermediate Holdings
Limited Partnership
6.500% April 1, 2023
500,000 Rexel SA
5.250% June 15, 2020
500,000 Rite Aid Corporation
6.125% April 1, 2023
500,000 Seven Generations
Energy Limited
8.250% May 15, 2020
34,000 SunCoke Energy Inc.
7.625% August 1, 2019
400,000 SunCoke Energy Partners
Limited Partnership/
Finance Corporation
7.375% February 1, 2020
500,000 Sunoco Limited Partnership/
Finance Corporation
6.375% April 1, 2023
549,582
693,694
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 Unitymedia Hessen GmbH &
Company KG/NRW GmbH
5.500% January 15, 2023
290,000 Valeant Pharmaceuticals
International Inc.
6.125% April 15, 2025
431,525 Vander Intermediate Holding II
Corporation
9.750% February 1, 2019
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 Zebra Technologies
Corporation
7.250% October 15, 2022
USD
USD
96,820
119,524
USD
217,693
224,426
1,053,123
1,279,151
USD
USD
630,003
665,815
532,576
676,474
280,659
333,727
273,433
346,847
551,377
470,662
350,671
405,642
USD
421,265
465,955
USD
653,648
647,775
583,627
674,014
623,139
672,374
999,921
1,043,000
44,207
45,000
175,279
197,678
169,790
170,029
580,681
685,494
91,061
121,027
266,951
268,950
USD
USD
USD
USD
USD
USD
USD
USD
USD
338,319
637,523
688,774
513,328
683,723
631,529
707,909
USD
USD
USD
531,378
697,793
36,995
42,153
USD
USD
532,654
490,669
USD
643,732
674,014
Fair
Value ($)
632,902
688,774
313,028
386,632
540,972
674,834
344,008
399,390
527,695
680,574
372,038
327,676
530,240
294,392
373,579
430,320
306,712
332,907
314,562
348,487
660,512
19,174,364
710,913
21,244,704
990,001
960,735
343,868
389,482
468,962
573,327
189,255
172,033
1,516,094
1,581,445
86,088
79,947
123,369
91,031
128,956
66,883
904,199
920,585
40,493
41,227
880,836
1,048,812
119,000
124,211
644,305
658,759
Energy (3.3%)
USD
269,164
Average
Cost ($)
969,927 Arch Coal Inc.
Term Loan B
May 16, 2018
293,842 CITGO Holding Inc.
Term Loan B
May 12, 2018
441,000 Citgo Petroleum Corporation
New Term Loan B
July 29, 2021
190,500 Drillships Ocean Ventures Inc.
Term Loan B
July 25, 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
714,372 Granite Acquisition Inc.
Term Loan B
December 19, 2021
31,992 Granite Acquisition Inc.
Term Loan C
December 19, 2021
863,781 MEG Energy Corporation
Refinance Term Loan
March 31, 2020
98,366 Murray Energy
Term Loan B1
April 16, 2017
591,602 Murray Energy
Term Loan B2
April 16, 2020
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
253
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
Face Value
Energy (continued)
Financials (continued)
USD
USD 1,350,000 ESH Hospitality Inc.
Term Loan B
August 30, 2023
USD
413,881 First Data Corporation
Term Loan
July 8, 2022
USD 2,402,399 Guggenheim Partners LLC
Term Loan
July 22, 2020
USD
349,340 Harbourvest Partners LLC
New Term Loan
February 4, 2021
USD
921,619 Hub International Limited
Term Loan B
October 2, 2020
USD 1,261,785 IG Investment Holdings LLC
Term Loan B
October 29, 2021
USD
771,875 MCS AMS Sub-Holdings LLC
Term Loan B
October 15, 2019
USD
162,500 Medley LLC Term Loan
June 15, 2019*
USD
522,375 MGM Growth Properties
Operating Partnership
Limited Partnership
Term Loan B
April 25, 2023
USD
304,918 MIP Delaware LLC
Term Loan B1
March 9, 2020
USD
246,193 NXT Capital Inc. Incremental
Term Loan
September 4, 2018
USD
356,179 Ocwen Financial Corporation
Term Loan
February 15, 2018
USD
227,857 PGX Holdings Inc.
First Lien Term Loan
September 29, 2020
USD
650,000 Quality Care Properties Inc.
First Lien Term Loan
September 12, 2022
USD
634,876 RE/MAX International Inc.
New Term Loan B
July 31, 2020
USD
285,742 Realogy Group LLC
Term Loan B
July 20, 2022
USD
287,000 Salient Partners Limited
Partnership
Term Loan
May 19, 2021
USD
39,756 Sheridan Investment Partners II
Limited Partnership
Term Loan A
December 16, 2020
USD
285,792 Sheridan Investment Partners II
Limited Partnership
Term Loan B
December 16, 2020
USD
14,827 Sheridan Investment Partners II
Limited Partnership
Term Loan M
December 16, 2020
USD
339,205 Starwood Property Trust Inc.
Term Loan B
April 17, 2020
USD
USD
USD
USD
USD
370,313 Paragon Offshore
Finance Company
Term Loan B
July 18, 2021
1,250,000 Samson Investment Company
New Second Lien Term Loan
September 25, 2018
898,136 Seadrill Partners Finco LLC
Term Loan B
February 21, 2021
1,337,155 Sheridan Production
Partners I LLC
Term Loan B2
October 1, 2019
177,184 Sheridan Production
Partners I LLC
Term Loan B2 I-A
October 1, 2019
108,225 Sheridan Production
Partners I LLC
Term Loan B2 I-M
October 1, 2019
395,027
113,361
1,337,096
446,883
973,078
585,841
1,474,432
1,109,582
195,374
147,029
119,336
10,929,769
89,806
9,200,979
193,182
197,037
860,106
873,560
1,673,716
1,716,943
867,214
959,648
117,094
117,045
552,796
697,430
703,424
720,518
1,180,398
1,522,654
805,585
943,792
Financials (11.7%)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
254
149,625 Alliant Holdings I Inc.
Incremental
Term Loan B2
August 12, 2022
666,563 Alliant Holdings I Inc.
Term Loan B
August 12, 2022
1,302,725 AmWINS Group LLC
Term Loan B
September 6, 2019
943,828 Aretec Group Inc.
Second Lien Term Loan
May 23, 2021
89,214 Aretec Group Inc.
Exit Term Loan
May 25, 2023
544,298 Armor Holding II LLC
First Lien Term Loan
June 26, 2020
546,690 AssuredPartners Inc.
First Lien Term Loan
October 21, 2022
1,158,191 Asurion LLC
New Term Loan B1
May 24, 2019
725,000 Asurion LLC
New Second Lien Term Loan
March 3, 2021
838,753 Bronco Midstream
Funding LLC
Term Loan B
August 15, 2020
964,453 Citco Funding LLC
Term Loan
June 29, 2018
390,000 Corporate Capital Trust Inc.
Term Loan B
May 20, 2019
550,000 Cunningham Lindsey US Inc.
Second Lien Term Loan
June 10, 2020*
1,387,487 DTZ U.S. Borrower LLC
First Lien Term Loan
November 4, 2021
864,915
1,015,121
989,977
1,267,686
422,413
510,381
576,444
590,030
1,796,824
1,816,522
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Average
Cost ($)
Fair
Value ($)
1,770,098
1,782,519
517,828
545,933
2,542,581
3,162,664
386,052
453,733
1,009,052
1,208,362
1,558,893
1,663,675
793,905
908,864
175,540
219,822
684,867
691,113
319,041
400,537
305,040
322,185
472,900
465,536
250,223
298,190
835,712
838,910
651,780
830,496
375,480
377,106
339,014
358,645
42,026
31,555
302,111
226,842
15,673
11,768
353,979
444,278
Face Value
Average
Cost ($)
Fair
Value ($)
Face Value
Financials (continued)
Health Care (continued)
USD
USD
675,863 Toys ‘R’ Us Property
Company I LLC
New Term Loan B
August 21, 2019
USD
796,066 USI Inc.
Term Loan B
December 27, 2019
USD
880,002 Walker & Dunlop Inc.
Term Loan B
December 11, 2020
USD 1,022,952 Walter Investment
Management Corporation
Term Loan
December 19, 2020
696,066
834,975
USD
849,124
1,044,182
USD
1,026,971
1,151,633
USD
1,078,355
28,956,399
1,227,987
32,449,877
Health Care (10.7%)
USD 1,551,131 Acadia Healthcare
Company Inc.
Term Loan B
February 11, 2022
USD
247,808 ADMI Corporation
Term Loan B
April 30, 2022
USD
358,251 Akorn Inc.
Term Loan B
April 16, 2021
USD
575,173 Alere Inc.
Term Loan B
June 18, 2022
USD
72,180 Alkermes Inc.
Term Loan
September 25, 2019
USD
524,991 Alliance Healthcare
Services Inc.
New Term Loan B
June 3, 2019
USD
356,250 AMAG Pharmaceuticals Inc.
First Lien Term Loan
August 13, 2021
USD
561,607 Amneal Pharmaceuticals LLC
New Term Loan
November 1, 2019
USD
450,000 Arbor Pharmaceuticals
Term Loan B
June 28, 2023
USD
320,135 Auris Luxembourg III SARL
USD Term Loan B4
January 15, 2022
USD
680,181 CareCore National LLC
Term Loan B
March 5, 2021
USD
547,250 CHG Healthcare Services Inc.
Term Loan B
June 7, 2023
USD
360,537 Community Health
Systems Inc.
Term Loan G
December 31, 2019
USD
663,378 Community Health
Systems Inc. Incremental
Term Loan H
January 27, 2021
USD
198,410 Concentra Inc.
First Lien Term Loan
June 1, 2022
USD
366,563 DPx Holdings BV
USD Incremental Term Loan
March 11, 2021
USD
USD
2,003,988
2,045,181
USD
318,545
326,737
USD
481,591
474,707
USD
705,952
747,785
USD
74,007
94,579
USD
USD
543,054
654,324
USD
464,650
467,382
USD
715,439
735,879
USD
555,195
590,378
USD
417,070
420,001
811,803
874,516
USD
706,289
721,683
USD
440,162
463,480
USD
USD
811,911
853,782
USD
246,071
407,038
259,979
942,875 Endo Luxembourg Finance
Company I SARL
Term Loan B
September 26, 2022
446,998 Greatbatch Limited
Term Loan B
October 27, 2022
567,813 Horizon Pharma Inc.
Term Loan B
May 7, 2021
478,813 Iasis Healthcare LLC
Term Loan B2
May 3, 2018
1,508,858 IMS Health Inc.
New USD Term Loan
March 17, 2021
319,375 Indivior Finance SARL
USD Term Loan B
December 19, 2019
564,958 inVentiv Health Inc.
Incremental Term Loan B3
May 15, 2018
1,000,000 inVentiv Health Inc.
Term Loan B4
May 15, 2018
610,940 Kindred Healthcare Inc.
New Term Loan
April 9, 2021
979,912 Kinetic Concepts Inc.
USD Term Loan F1
November 4, 2020
499,646 MMM Holdings Inc.
MMM Term Loan
December 12, 2017
645,821 MPH Acquisition Holdings LLC
Term Loan B
June 7, 2023
363,240 MSO of Puerto Rico Inc.
MSO Term Loan
December 12, 2017
1,022,438 NBTY Inc.
USD Term Loan B
May 5, 2023
332,851 New Millennium HoldCo Inc.
Exit Term Loan
December 21, 2020
693,248 Onex Carestream Finance
Limited Partnership
First Lien Term Loan
June 7, 2019
504,239 Opal Acquisition Inc.
First Lien Term Loan
November 27, 2020
695,175 Ortho-Clinical Diagnostics Inc.
Term Loan B
June 30, 2021
719,021 PRA Holdings Inc.
New First Lien Term Loan
September 23, 2020
400,000 Radnet Management Inc.
Term Loan B
July 1, 2023
272,250 Sterigenics-Nordion
Holdings LLC
Term Loan B
May 15, 2022
Average
Cost ($)
Fair
Value ($)
1,167,229
1,233,912
579,010
578,229
692,858
737,492
488,473
620,720
1,682,393
1,986,144
383,164
417,957
559,068
741,197
1,190,984
1,312,770
674,256
798,517
1,248,796
1,295,773
517,798
593,237
836,976
857,422
376,436
431,280
1,284,017
1,345,858
421,038
202,512
717,886
842,204
559,506
614,678
820,178
892,654
782,414
946,183
507,355
523,687
328,165
356,732
480,110
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
255
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
Face Value
Health Care (continued)
Industrials (continued)
USD
USD
483,750 Steward Health Care
System LLC
Term Loan B
April 12, 2020
USD 1,161,279 Valeant Pharmaceuticals
International Inc.
Term Loan B F1
April 1, 2022
494,388
634,656
USD
1,519,941
27,535,094
1,526,968
29,701,285
USD
High Yield Bonds (2.8%)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
250,000 CCO Holdings LLC/Capital
Corporation
5.250% September 30, 2022
250,000 CHS/Community Health
Systems Inc.
8.000% November 15, 2019
250,000 CHS/Community Health
Systems Inc.
7.125% July 15, 2020
300,000 Frontier Communications
Corporation
6.250% September 15, 2021
500,000 HCA Inc.
6.500% February 15, 2020
500,000 HRG Group Inc.
7.875% July 15, 2019
210,000 Intelsat (Luxembourg) SA
7.750% June 1, 2021
10,000 Intelsat Jackson Holdings SA
7.500% April 1, 2021
500,000 MGM Resorts International
6.000% March 15, 2023
500,000 Reynolds Group Issuer Inc.
9.875% August 15, 2019
500,000 Sabine Pass Liquefaction LLC
5.625% February 1, 2021
500,000 Sirius XM Radio Inc.
6.000% July 15, 2024
100,000 Sprint Communications Inc.
7.000% March 1, 2020
1,000,000 Sprint Communications Inc.
7.000% August 15, 2020
225,000 Tenet Healthcare Corporation
8.125% April 1, 2022
280,000 United Rentals (North
America) Inc.
6.125% June 15, 2023
USD
246,265
342,747
USD
270,552
321,428
273,013
304,864
367,019
378,334
564,567
726,492
672,968
691,234
217,610
92,296
10,940
9,905
640,681
711,733
545,467
675,654
501,164
692,874
563,808
699,433
113,660
140,706
1,107,720
1,318,510
254,879
295,189
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
362,199
6,712,512
385,254
7,786,653
USD
Industrials (6.6%)
USD 1,219,658 ADS Waste Holdings Inc.
Term Loan B2
October 9, 2019
USD
222,750 AlixPartners LLP
Term Loan B
July 28, 2022
USD
638,950 Ameriforge Group Inc.
First Lien Term Loan
December 19, 2019
USD
70,293 Coinamatic Canada Inc.
Canadian First Lien
Term Loan
May 14, 2022
USD
458,445 CPI Buyer LLC First Lien Term
Loan August 15, 2021
USD
372,551 CPM Holdings Inc.
Term Loan B
April 11, 2022
256
USD
1,348,670
1,601,731
USD
289,427
292,359
USD
636,041
377,222
USD
89,900
92,222
486,741
596,946
481,128
490,601
USD
USD
183,843 Delachaux SA
USD Term Loan B2
October 28, 2021
738,008 Doosan Infracore
International Inc.
Term Loan B
May 28, 2021
171,502 Electrical Components
International Inc.
Term Loan B
May 28, 2021
298,125 EnergySolutions LLC
Term Advance
May 29, 2020
145,875 EWT Holdings III Corporation
First Lien Term Loan
January 15, 2021
130,935 Filtration Group Corporation
Second Lien Term Loan
November 21, 2021
509,250 Gardner Denver Inc.
USD Term Loan
July 30, 2020
627,777 Gates Global LLC
Initial Dollar Term Loan
July 6, 2021
200,000 GFL Environmental Inc.
USD Term Loan B
September 23, 2023
225,000 Global Brass and Copper Inc.
Term Loan B
July 18, 2023
674,320 Husky Injection Molding
Systems Limited
First Lien Term Loan
June 30, 2021
190,989 Husky Injection Molding
Systems Limited
Second Lien Term Loan
June 30, 2022
278,462 Manitowoc Foodservice Inc.
Term Loan B
March 3, 2023
363,151 Milacron LLC
Term Loan B
September 28, 2020
613,723 Paladin Brands Holding Inc.
Term Loan B
August 16, 2019
545,665 Pelican Products Inc.
Term Loan
April 10, 2020
1,731,929 Rexnord LLC
First Lien Term Loan B
August 21, 2020
324,188 Sensus USA Inc.
Term Loan
April 5, 2023
1,141,132 Silver II US Holdings LLC
Term Loan
December 13, 2019
119,143 STS Operating Inc.
Term Loan
February 12, 2021
243,144 Tecomet Inc.
First Lien Term Loan
December 5, 2021
335,087 Tervita Corporation
Term Loan
May 15, 2018
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Average
Cost ($)
Fair
Value ($)
227,120
232,147
873,658
977,912
192,173
224,299
318,385
389,169
154,486
191,381
135,582
171,566
521,955
646,564
674,356
810,376
262,740
261,898
289,040
299,248
718,383
882,187
203,469
249,393
379,566
369,209
443,353
478,222
626,465
716,605
601,818
701,568
1,961,835
2,270,312
409,178
427,090
1,156,763
1,397,550
130,675
138,334
265,578
315,005
345,116
433,757
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value
Industrials (continued)
Information Technology (continued)
USD
USD
USD
USD
USD
USD
299,250 The Hertz Corporation
Term Loan B
June 30, 2023
299,001 TransDigm Inc.
Term Loan C
February 28, 2020
757,563 TransDigm Inc.
Term Loan D
June 4, 2021
123,438 Trinseo Materials Operating
SCA Term Loan B
November 5, 2021
401,380 WASH Multifamily Laundry
Systems LLC
First Lien Term Loan
May 14, 2022
384,426
394,985
USD
307,661
821,952
148,038
392,111
991,710
162,430
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
513,333
16,399,011
526,590
18,502,699
USD
Information Technology (12.1%)
USD
USD
466,688 Answers Corporation
First Lien Term Loan
October 3, 2021
509,875 Ascend Learning LLC
New Term Loan B
July 31, 2019
394,000 Auction.com LLC
Term Loan B
May 12, 2019
1,896,554 Avago Technologies Cayman
Limited
USD Term Loan B3
February 1, 2023
525,000 Avast Software BV
USD Term Loan B
July 19, 2022
309,735 Campaign Monitor Finance Pty.
Limited
First Lien Term Loan
March 18, 2021
858,655 CCC Information Services Inc.
Term Loan
December 20, 2019
545,495 CommScope Inc.
Term Loan B5
December 29, 2022
300,000 Cypress Semiconductor
Corporation
Term Loan B
July 5, 2021
2,151,701 EIG Investors Corporation
Term Loan
November 9, 2019
371,262 Global Healthcare Exchange
Term Loan B
August 15, 2022
844,151 Go Daddy Operating
Company LLC
New Term Loan B
May 13, 2021
949,138 Hyland Software Inc.
Term Loan
July 1, 2022
953,176 Infor (US) Inc.
USD Term Loan B5
June 3, 2020
816,750 Informatica Corporation
USD Term Loan
August 5, 2022
501,752
312,258
634,228
670,602
471,349
518,201
2,497,201
2,516,955
USD
682,849
691,644
USD
USD
USD
USD
USD
333,023
394,166
USD
985,555
1,123,696
USD
693,582
719,912
USD
382,451
397,193
USD
2,587,661
2,732,943
USD
480,873
487,686
USD
922,392
1,112,606
1,211,236
1,249,891
USD
USD
1,020,781
1,240,694
USD
1,013,218
1,038,624
410,426 Information Resources Inc.
Term Loan B
September 30, 2020
699,129 ION Trading
Technologies Limited
Term Loan
August 11, 2023
615,625 IPC Corporation
Term Loan B
August 6, 2021
1,197,775 Kronos Inc.
Second Lien Term Loan
April 30, 2020
196,055 Lattice Semiconductor
Corporation
Term Loan
March 10, 2021
344,619 M/A-COM Technology
Solutions Holdings Inc.
Term Loan
May 7, 2021
415,625 MA FinanceCo. LLC
Term Loan C
November 20, 2019
413,180 MA FinanceCo. LLC
Term Loan B2
November 20, 2021
1,015,185 Magic Newco LLC
First Lien Term Loan
December 12, 2018
170,625 Match Group Inc.
Term Loan B1
November 16, 2022
201,698 Mitel US Holdings Inc.
Term Loan
April 29, 2022
375,000 MTS Systems Corporation
Term Loan B
July 5, 2023
293,260 NXP BV
Term Loan F
December 7, 2020
1,178,864 Renaissance Learning Inc.
New First Lien Term Loan
April 9, 2021
100,000 Renaissance Learning Inc.
New Second Lien Term Loan
April 11, 2022
1,101,719 RP Crown Parent LLC
Term Loan
December 21, 2018
955,500 SkillSoft Corporation
First Lien Term Loan
April 28, 2021
151,250 Smart Technologies Inc.
New Term Loan
January 31, 2018*
78,584 SS&C Technologies Holdings
Europe SARL
Term B2 Loan
July 8, 2022
632,360 SS&C Technologies Inc.
Term Loan B1
July 8, 2022
295,857 SunEdison Semiconductor BV
First Lien Term Loan
May 27, 2019
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Average
Cost ($)
Fair
Value ($)
420,666
539,091
905,200
917,222
737,132
759,209
1,300,688
1,599,706
244,889
255,928
399,451
454,383
441,477
546,074
538,716
544,782
1,057,337
1,333,870
223,502
225,251
251,678
266,272
483,887
495,671
388,032
386,306
1,392,718
1,538,877
109,217
128,243
1,184,289
1,440,983
1,046,515
1,105,020
147,883
201,250
96,792
103,816
778,884
835,402
319,187
387,180
257
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value
Information Technology (continued)
Materials (continued)
USD
USD 1,208,106 Hilex Poly Company LLC
Term Loan B
December 5, 2021
USD
149,250 Huntsman International LLC
Term Loan B
April 1, 2023
USD 2,101,612 Ineos U.S. Finance LLC
USD 6 Year Term Loan
May 4, 2018
USD
221,623 Ineos U.S. Finance LLC
USD Term Loan
March 31, 2022
USD
400,000 Kraton Polymers LLC
Term Loan B
January 6, 2022
USD
121,875 Kronos Worldwide Inc.
Term Loan
February 18, 2020
USD 1,723,069 MacDermid Inc.
Term Loan B2
June 7, 2020
USD
456,603 Minerals Technologies Inc.
Term Loan B1
May 9, 2021
USD
621,669 Neenah Foundry Company
Term Loan
April 26, 2017
USD
962,813 Novelis Inc.
Term Loan B
June 2, 2022
USD
210,788 Orion Engineered
Carbons GmbH
USD Term Loan
July 25, 2021
USD
127,116 Oxbow Carbon LLC
New Term Loan B
July 19, 2019
USD 1,000,000 Oxbow Carbon LLC
Second Lien Term Loan
January 17, 2020
USD
643,970 OXEA Finance LLC
USD Term Loan B2
January 15, 2020
USD
324,188 PQ Corporation
USD Term Loan
November 4, 2022
USD 1,441,387 Reynolds Group Holdings Inc.
USD Term Loan
February 5, 2023
USD
443,250 SIG Combibloc US Acquisition
Inc. USD Term Loan
March 13, 2022
USD
122,500 Solenis International Limited
Partnership
USD First Lien Term Loan
July 31, 2021
USD
351,596 Tank Holding Corporation
Refinance Term Loan
March 16, 2022
USD
368,214 TricorBraun Inc.
Term Loan B
May 3, 2018
USD 1,164,929 Tronox Pigments
(Netherlands) BV
Term Loan B
March 19, 2020
USD
668,250 Univar Inc. Term Loan
July 1, 2022
USD
USD
USD
USD
USD
917,645 Syniverse Holdings Inc.
Term Loan B
April 23, 2019
475,000 Uber Technologies
Term Loan B
July 13, 2023
452,725 Veritas US Inc.
USD Term Loan B1
January 27, 2023
650,000 Vertafore Inc.
First Lien Term Loan
June 30, 2023
491,576 Wall Street Systems Delaware
Inc. Term Loan B
August 23, 2023
618,450 Western Digital Corporation
Term Loan B
April 29, 2023
945,700
1,061,443
605,266
623,047
499,870
554,355
832,917
854,499
633,970
646,132
799,748
31,203,762
819,996
33,831,079
Materials (10.7%)
USD 2,021,461 Axalta Coating Systems U.S.
Holdings Inc.
USD Term Loan
February 1, 2020
USD
249,181 Berry Plastics Holding
Corporation
Term Loan G
January 6, 2021
USD
321,386 Berry Plastics Holding
Corporation
Term Loan H
October 1, 2022
USD
703,250 CPG International Inc.
New Term Loan
September 30, 2020
USD
271,124 Dynacast International LLC
Term Loan B
January 28, 2022
USD
216,409 Emerald Performance Materials
LLC
New First Lien Term Loan
August 1, 2021
USD
250,000 Emerald Performance Materials
LLC
New Second Lien Term Loan
August 1, 2022
USD
66,363 Fairmount Santrol Inc.
Extended Term Loan B1
July 15, 2018
USD
606,250 Fairmount Santrol Inc.
Tranche B-2 Term Loan
September 5, 2019
USD
62,560 Flint Group GmbH
USD Term Loan C
September 7, 2021
USD
378,439 Flint Group US LLC
USD First Lien
Term Loan B2
September 7, 2021
USD 1,281,292 FMG Resources (August 2006)
Pty. Limited
New Term Loan B
June 30, 2019
USD
196,004 Gemini HDPE LLC
Term Loan B
August 7, 2021
258
2,331,483
321,739
415,194
2,666,973
326,822
422,539
731,630
923,782
339,776
356,590
231,293
284,983
267,194
327,168
85,664
80,970
672,657
710,365
76,963
81,871
466,339
492,977
1,345,744
1,678,890
209,485
258,433
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Average
Cost ($)
Fair
Value ($)
1,409,975
1,594,881
196,619
197,155
2,329,953
2,762,953
279,898
291,589
467,517
528,142
152,505
155,097
2,136,939
2,261,791
563,815
602,035
649,863
807,443
1,202,247
1,267,583
278,226
277,580
138,952
166,353
1,053,418
1,259,472
673,885
801,909
405,033
427,710
1,893,580
1,895,971
582,006
582,006
130,000
159,977
440,452
446,285
371,958
483,682
1,360,864
1,511,135
820,835
876,528
Average
Cost ($)
Face Value
Fair
Value ($)
Face Value/
No. of Shares
Average
Cost ($)
Fair
Value ($)
1,418,596
1,525,126
683,366
870,801
738,118
741,179
307,750
304,730
274,012
259,533
29,298
3,451,140
25,662
3,727,031
9,187
–
9,188
18,375
12,024
12,024
43,028
64,949
211,327
9,821
16,204
172,222
188,426
30,009
342,616
372,625
–
–
Total Investments (95.7%)
245,344,354
Foreign Exchange Forward Contracts (0.0%)
266,708,293
Materials (continued)
Utilities (1.3%)
USD 1,307,921 Zekelman Industries Inc.
Term Loan B
June 14, 2021
USD
123,438 Zep Inc.
Term Loan
June 27, 2022
USD 1,160,313 Calpine Corporation
Term Loan B5
May 27, 2022
USD
662,365 Dynegy Holdings Inc.
Term Loan B2
April 23, 2020
USD
559,351 Eastern Power LLC
Term Loan B
October 2, 2021
USD
243,218 Invenergy Thermal Operating I
LLC
Term Loan B
October 19, 2022
USD
244,981 Lonestar Generation LLC
Term Loan B
February 22, 2021
USD
23,425 Southcross Holdings Borrower
Limited Partnership
Exit Term Loan B
April 13, 2023
1,673,091
1,739,521
150,805
26,857,597
161,944
29,871,105
Telecommunication Services (4.6%)
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
519,750 Ancestry.com Inc.
Term Loan B
August 17, 2022
196,000 AP NMT Acquisition BV
USD First Lien Term Loan
August 13, 2021
197,495 Block Communications Inc.
Term Loan B
November 7, 2021
1,271,813 CSC Holdings LLC
Term Loan B
October 9, 2022
146,417 Entravision Communications
Corporation
New Term Loan
May 31, 2020
249,915 Extreme Reach Inc.
First Lien Term Loan
February 7, 2020
1,069,463 Getty Images Inc.
Term Loan B
October 18, 2019
212,500 Hubbard Radio LLC
Term Loan B
May 27, 2022
1,525,000 Intelsat Jackson Holdings SA
Term Loan B2
June 30, 2019
366,563 MCC Iowa LLC
Term Loan J
June 30, 2021
224,438 Numericable U.S. LLC
USD Term Loan B7
January 15, 2024
294,741 ProQuest LLC
New Term Loan B
October 24, 2021
236,632 SurveyMonkey Inc.
Term Loan B
February 5, 2019
225,000 Telenet International Finance
SARL
Term Loan AD
June 30, 2024
1,764,522 Univision Communications Inc.
Term Loan C3
March 1, 2020
900,000 UPC Financing Partnership
USD Term Loan AN
August 31, 2024
369,787 Ziggo Financing Partnership
USD Term Loan B1
January 15, 2022
219,149 Ziggo Financing Partnership
USD Term Loan B2A
January 15, 2022
68,096 Ziggo Financing Partnership
USD Term Loan B3
January 15, 2022
673,780
682,170
214,798
227,732
249,943
259,914
1,659,428
1,668,554
Energy – Equity (0.0%)
150,940
191,371
269,084
328,559
1,046,669
1,175,081
26 Southcross Holdings Borrower
Limited Partnership
26 Southcross Holdings Borrower
Limited Partnership ‘A’
Financials – Equity (0.0%)
8,251 RCS Capital Corporation
Health Care – Equity (0.0%)
260,455
272,284
1,615,740
1,901,760
397,329
482,415
288,862
296,383
400,373
386,444
305,616
307,344
288,038
297,587
2,028,770
2,317,135
1,169,210
1,185,183
406,451
484,081
240,927
286,884
75,035
11,741,448
89,143
12,840,024
17,613 Millennium Labs
Materials – Equity (0.1%)
12,932 Alpha Natural Resources
Holdings Inc. Preferred ‘A’
8,705 Contura Energy Inc.
Commissions and other portfolio
transaction costs (Note 2)
See Schedule A
Total Portfolio (95.7%)
–
6,274
245,344,354
266,714,567
* 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
September 30, 2016 of AGF Floating Rate Income Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
259
AGF Floating Rate Income Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
USD
CAD
CAD
CAD
4,000,000
94,860,000
89,621,924
94,368,176
CAD
USD
USD
USD
Sold Currency
Forward Rate
Maturity Date
5,284,898
72,065,255
68,483,787
72,059,879
0.7569
1.3163
1.3087
1.3096
October 31, 2016
October 31, 2016
November 30, 2016
December 30, 2016
Fair Value ($)
(38,335) State Street Global Market LLC**
336,281
Citibank NA
(184,975) JP Morgan Chase & Company
(106,697) State Street Global Market LLC**
6,274
** Credit Rating is that of the parent company
260
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Counterparty
Credit Rating
A
A
A
A
AGF Floating Rate Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Sector
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
September 30, 2015
(%)
Term Loans:
Consumer Discretionary
Industrials
Materials
Health Care
Financials
Information Technology
Energy
Consumer Staples
Utilities
Telecommunication Services
Subtotal
Corporate Bonds
High Yield Bonds
Consumer Discretionary – Equity
Foreign Exchange Forward Contracts
16.5
12.7
11.8
11.1
10.8
8.3
5.9
5.3
0.9
0.8
84.1
10.2
2.7
0.0
(1.2)
Portfolio by Asset Mix
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
September 30, 2015
(%)
United States Fixed Income
International Fixed Income
Canadian Fixed Income
United States Equity
Foreign Exchange Forward Contracts
82.1
10.6
4.3
0.0
(1.2)
As at September 30, 2016, the total fair value of private and/or restricted
securities held within the Fund represented approximately $1,256,000
(September 30, 2015 – $1,439,000).
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, the Fund invested in debt
instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
A
BBB
BB
B
CCC
CC
C
Not Rated
September 30,
2016
September 30,
2015
6.0
0.6
26.4
51.6
8.6
0.0
0.3
8.1
1.3
0.5
28.0
57.2
7.0
0.0
–
4.3
Interest Rate Risk
As at September 30, 2016 and 2015, the Fund’s exposure to debt
instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
September 30,
2016
September 30,
2015
1,265
41,931
125,073
97,980
–
32,433
155,640
167,350
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at September 30, 2016 and 2015, 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 $787,000 (September 30, 2015 – $1,257,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
261
AGF Floating Rate Income Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
The impact on Net Assets of the Fund due to a 40 percent change in
benchmark (September 30, 2015 – 50 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at September 30, 2016 and 2015,
with all other variables held constant, is included in the following table.
Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
September 30,
2016
Benchmark
S&P/LSTA Leveraged Loan Index
(3,805)
September 30,
2015
(5,879)
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 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 September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
279,138
(273,559)
5,579
2.0
September 30, 2015
($’000)
United States Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
364,557
(371,536)
(6,979)
(1.9)
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $112,000 (September 30, 2015 –
$140,000).
262
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’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)
September 30, 2015
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
–
–
–
–
–
–
–
Level 2
–
354,046
–
–
354,046
540
(4,866)
Level 3
62
1,377
–
–
1,439
–
–
Total
62
355,423
–
–
355,485
540
(4,866)
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
The following tables reconcile the Fund’s level 3 fair value
measurements for the periods ended September 30, 2016 and 2015. The
level 3 positions held in the Fund were not considered significant.
September 30, 2016
($’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 $1,998,000 were transferred from level 3
to level 2 primarily due to a change in valuation to the use of quoted
prices from recognized investment dealers.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
September 30, 2015
($’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, 2015
Debt
Equities Instruments Total
–
–
–
5
–
1,005 1,005
144
144
(93)
(93)
1,011 1,016
13
13
57
62
(703) (646)
1,377 1,439
(646)
During the period ended September 30, 2015, investments of
approximately $2,146,000 were transferred into level 3 from level 2 due
to a change in valuation requiring the use of unobservable inputs, while
investments of approximately $1,130,000 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.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
263
AGF Global Balanced Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
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
September 30,
2016
September 30,
2015
$
$
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 9)
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
264
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
148,350
41
3,212
–
64
187
–
–
586
78
152,518
128,136
16
9,933
–
177
962
–
–
626
40
139,890
$
$
–
–
1
–
47
215
150
15
342
–
–
770
151,748
137,679
$
$
–
–
33
–
64
204
194
25
416
–
–
936
138,954
129,086
$
$
$
$
$
$
$
$
$
123,441
–
2,167
22,533
–
–
2,648
959
–
$
$
$
$
$
$
$
$
$
126,309
–
1,299
7,606
–
–
3,108
632
–
$
$
$
$
$
$
$
$
$
22.80
–
22.67
23.12
–
–
7.40
9.95
–
$
$
$
$
$
$
$
$
$
20.95
–
20.58
20.94
–
–
7.37
9.62
–
AGF Global Balanced Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
$
2,818
27
1,279
687
2015
$
3,012
–
1,326
16,770
11,621
16,432
3
(8,849)
12,259
(1,106)
57
60
12
(96)
(1,202)
48
359
16,863
485
11,590
2,614
2,806
428
30
12
53
–
27
10
2
328
323
428
28
11
54
–
28
8
2
346
401
67
3,894
362
4,474
(27)
3,867
(17)
4,457
12,996
$
7,133
$
$
$
$
$
$
$
$
$
10,630
–
169
1,883
–
–
243
71
–
$
$
$
$
$
$
$
$
$
6,661
–
62
222
–
–
182
6
–
$
$
$
$
$
$
$
$
$
1.84
–
2.15
2.39
–
–
0.62
0.84
–
$
$
$
$
$
$
$
$
$
1.02
–
1.03
1.01
–
–
0.40
0.13
–
For the periods ended September 30,
2016
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
underlying 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
12,996
2015
$
7,133
2
(737)
(690)
(15,664)
(11,678)
(79,942)
8,945
(153,525)
72,767
184,074
(27)
–
–
–
40
27
–
(38)
–
9
(17)
11
(6,576)
(24)
(21)
30,217
(218)
30,313
(272)
15,647
(30,238)
(143)
(36,442)
(21,067)
$
$
(2)
737
(6,719)
9,933
3,212
9,150
46
9,933
$
$
1,113
2,099
3,212
$
$
2,901
7,032
9,933
$
$
1,318
2,497
$
$
1,333
2,637
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
265
AGF Global Balanced Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
266
2016
126,309
–
1,299
7,606
–
–
3,108
632
–
138,954
2015
$
144,215
–
1,237
3,255
–
–
3,879
258
–
For the periods ended September 30,
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
2016
$
152,844
10,630
–
169
1,883
–
–
243
71
–
12,996
6,661
–
62
222
–
–
182
6
–
7,133
15,556
–
889
13,588
–
–
346
423
–
30,802
10,798
–
700
4,232
–
–
90
401
–
16,221
4
–
–
157
–
–
55
15
–
231
562
–
17
108
–
–
44
6
–
737
(29,054)
–
(190)
(544)
–
–
(869)
(139)
–
(30,796)
(35,342)
–
(695)
(103)
–
–
(814)
(19)
–
(36,973)
237
(20,015)
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.
ANNUAL REPORT 2016
(4)
–
–
(157)
–
–
(10)
(3)
–
(174)
2015
$
–
–
–
–
–
–
–
–
–
–
(585)
–
(22)
(108)
–
–
(11)
(10)
–
(736)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(225)
(40)
–
(265)
–
–
–
–
–
–
(262)
(10)
–
(272)
12,794
(13,890)
123,441
–
2,167
22,533
–
–
2,648
959
–
126,309
–
1,299
7,606
–
–
3,108
632
–
151,748
$
138,954
AGF Global Balanced Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares/Units/
Face Value
Average
Cost ($)
Fair
Value ($)
1,033,152
1,171,615
174,183
1,207,335
186,276
1,357,891
918,207
795,415
Australia (0.9%)
AUD
No. of Shares/Units/
Face Value
8,816
12,060
2,461
18,607
11,484
11,303
2,682
17,523 Voestalpine AG
Belgium (1.4%)
12,427 Anheuser-Busch InBev SA/NV
1,915,834
2,135,499
84,181
82,177
28,000
96,922
41,880
28,348
CAD
16,626
1,696
2,487
12,618
2,509
80,000
CAD
250,000
CAD
1,550,000
USD
200,000
USD
300,000
Brazil (0.7%)
EUR
Fair
Value ($)
704,986
105,678
72,035
664,656
248,189
489,407
716,388
111,796
79,663
677,667
271,597
489,307
68,458
945,222
57,739
61,311
122,554
106,086
75,713
968,298
60,276
67,572
138,293
103,697
79,563
79,200
251,657
258,866
1,543,018
1,620,587
250,147
249,271
321,509
415,359
366,529
389,858
545,177
708,132
299,165
310,411
338,097
408,615
463,250
505,995
415,100
417,757
480,326
26,577,386
529,210
28,398,660
214,553
219,907
1,117,128
1,899,457
3,016,585
981,504
1,685,993
2,667,497
587,374
647,682
1,022,024
895,166
Arkema SA
BNP Paribas SA
Schneider Electric SE
TOTAL SA
39,042
817,117
888,606
700,571
2,445,336
50,033
694,316
880,425
679,171
2,303,945
Hannover Rueck SE
Henkel AG & Company KGaA
iShares MSCI Germany ETF
KfW 2.050% February 16, 2026
1,975,478
1,539,525
1,341,866
414,127
5,270,996
2,179,463
1,886,872
1,274,996
548,662
5,889,993
Canada (continued)
97,398 Brambles Limited
165,000 New South Wales
Treasury Corporation
4.000% April 20, 2023
Austria (0.5%)
BRL
Average
Cost ($)
17,705 Petroleo Brasileiro SA –
Petrobras Preferred
5,804 Vale SA ADR
4,563 Vale SA Preferred Series A
600,000 Federal Republic of Brazil
10.000% January 1, 2019
400,000 Federal Republic of Brazil
2.875% April 1, 2021
204,248
241,216
577,296
975,902
600,421
1,008,787
3,821,062
4,417,843
4,123,441
448,731
831,762
4,587,802
444,573
766,236
EUR
250,000
USD
500,000
244,647
434,219
240,039
663,548
262,840
439,822
253,887
643,526
AUD
270,000
USD
300,000
EUR
325,000
253,898
60,055
256,252
66,397
USD
300,000
605,719
633,080
EUR
340,000
215,235
219,975
88,823
84,096
215,926
89,158
171,685
359,399
294,629
521,233
235,178
412,198
533,890
213,167
124,368
88,864
123,760
66,334
565,220
278,609
135,583
209,458
84,195
204,690
88,274
191,226
387,126
314,460
554,977
230,189
386,805
532,863
222,495
125,259
94,522
139,095
77,723
588,266
252,175
146,337
220,693
80,239
81,398
342,286
138,013
133,984
81,888
336,982
144,156
137,674
127,813
130,689
Canada (18.7%)
313,990 AGF Emerging Markets Fund –
Series S Units
508,625 AGF Global Resources Fund –
Series S Units
6,266 Agnico Eagle Mines Limited
6,440 Agrium Inc.
4,134 Alimentation Couche-Tard
Inc. ‘B’
5,116 Bank of Montreal
3,652 Bank of Nova Scotia
10,621 BCE Inc.
5,555 Brookfield Asset Management
Inc. ‘A’
3,564 CAE Inc.
7,382 Canadian National
Railway Company
5,245 Canadian Natural
Resources Limited
1,787 Canadian Real Estate
Investment Trust
1,558 Canadian Tire Corporation
Limited ‘A’
3,496 Canadian Western Bank
757 CCL Industries Inc. ‘B’
6,195 CGI Group Inc. ‘A’
3,070 Dollarama Inc.
9,625 Enbridge Inc.
5,456 Fortis Inc.
4,220 Franco-Nevada Corporation
24,586 Goldcorp Inc.
2,346 Intact Financial Corporation
4,522 Inter Pipeline Limited
4,175 Intertape Polymer Group Inc.
3,279 Keyera Corporation
1,163 Kinaxis Inc.
31,781 Manulife Financial Corporation
5,855 METRO INC.
1,732 Onex Corporation
2,597 Open Text Corporation
4,779 Pason Systems Inc.
2,224 Peyto Exploration &
Development Corporation
12,126 Power Corporation of Canada
5,389 PrairieSky Royalty Limited
12,795 Raging River Exploration Inc.
2,234 Restaurant Brands
International Inc.
Royal Bank of Canada
Secure Energy Services Inc.
ShawCor Limited
Suncor Energy Inc.
Teck Resources Limited ‘B’
TELUS Corporation
The Descartes Systems
Group Inc.
Toronto-Dominion Bank
Tourmaline Oil Corporation
TransForce Inc.
Whitecap Resources Inc.
WSP Global Inc.
Crew Energy Inc.
8.375% October 21, 2020
Government of Canada
1.750% September 1, 2019
Government of Canada
1.500% June 1, 2026
Just Energy Group Inc.
Convertible Bonds
6.500% July 29, 2019
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
Cayman Islands (0.1%)
USD
130,000 Ctrip.com International Limited
Convertible Bonds
1.250% October 15, 2018
China (1.8%)
603,198 CNOOC Limited
26,497 iShares MSCI China ETF
Colombia (0.4%)
COP 1,400,000,000 Republic of Colombia
7.000% Series B
May 4, 2022
Czech Republic (0.6%)
19,719 Komercni Banka AS
France (1.5%)
412
10,293
9,626
10,928
Germany (3.9%)
JPY
15,511
12,358
36,994
35,000,000
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
267
AGF Global Balanced Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
No. of Shares/Units/
Face Value
Average
Cost ($)
Fair
Value ($)
642,024
735,454
Hong Kong (0.5%)
Hungary (0.4%)
NZD
608,975
638,689
NOK
275,000 Republic of Ireland
1.000% May 15, 2026
12,039 Teva Pharmaceutical Industries
Limited ADR
EUR
EUR
114,548 Intesa Sanpaolo SpA
200,000 Cassa di Risparmio di Parma e
Piacenza SpA
0.875% June 16, 2023
200,000 Intesa Sanpaolo SpA
7.700% December 29, 2049
125,000 Republic of Italy Inflation Index
Linked Notes
2.350% September 15, 2024
295,000 Republic of Italy
2.000% December 1, 2025
NOK
930,147
726,708
Peru (0.4%)
297,537
333,249
284,230
309,668
252,731
229,591
PEN
PEN
JPY
JPY
PLN
PLN
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*
135,000,000 Japan Government Twenty
Year Bond
1.200% September 20, 2035
NOK
GBP
JPY
43,000 Beverage Packaging Holdings
(Luxembourg) II SA/
Beverage Packaging
Holdings II Issuer Inc.
5.625% December 15, 2016
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*
MXN
5,000,000 United Mexican States
6.500% Series M
June 9, 2022
8,500,000 United Mexican States
5.750% March 5, 2026
442,371
1,483,660
468,340
1,557,575
Portugal (1.3%)
2,483,558
543,051
976,157
1,507,054
2,302,817
2,721,473
585,923
974,941
1,540,601
3,252,287
USD
1,806,902
2,380,563
446,903
469,561
1,492,737
11,559,179
2,032,231
13,957,580
56,740
56,278
322,388
332,377
328,542
376,176
433,412
81,506
616,086
15,842
571,773
318,247
314,999
571,641
1,587,480
597,341
1,499,955
402,150
388,506
233,826
635,976
258,468
646,974
518,790
517,428
372,018
890,808
363,015
880,443
EUR
EUR
310,000 Republic of Portugal
4.750% June 14, 2019
650,000 Republic of Portugal
5.125% October 15, 2024
375,000 Republic of Portugal
2.875% October 15, 2025
498,960
502,561
833,073
849,418
552,065
1,884,098
541,723
1,893,702
610,164
414,162
19,628
19,683
232,279
862,071
224,397
658,242
455,597
642,567
489,613
589,314
436,581
609,142
2,302,350
3,837,095
2,929,909
4,617,978
1,001,175
588,539
299,627
305,981
740,943
716,386
151,393
2,193,138
188,155
1,799,061
2,202,094
1,970,307
173,344
138,522
Singapore (0.4%)
79,870 Keppel Corporation Limited
18,349 Keppel Real Estate
Investment Trust
61,220 Singapore Press
Holdings Limited
South Korea (3.0%)
6,420 iShares MSCI South Korea
Capped ETF
11,737 Kia Motors Corporation
320 Samsung Electronics
Company Limited
3,091 Samsung Electronics Company
Limited GDR
Spain (1.2%)
EUR
554,925
1,262,595
702,279
1,467,110
EUR
EUR
427,856
349,395
636,431
1,064,287
563,948
913,343
101,175 Banco Santander SA
200,000 Banco Bilbao Vizcaya
Argentaria SA
0.625% May 17, 2021
465,000 Kingdom of Spain
1.150% July 30, 2020
100,000 Kingdom of Spain
4.400% October 31, 2023
Switzerland (1.3%)
6,054 Roche Holding AG
Thailand (0.1%)
Netherlands (1.4%)
70,505 ING Groep NV
32,019 iShares MSCI Netherlands ETF
268
1,300,000 Republic of Poland
5.750% October 25, 2021
975,000 Republic of Poland
4.000% October 25, 2023
216,727
Mexico (0.6%)
MXN
900,000 Republic of Peru
7.840% August 12, 2020
650,000 Republic of Peru
5.700% August 12, 2024
206,791
Luxembourg (1.0%)
USD
385,002
Poland (0.6%)
Japan (9.2%)
133,684
15,491
20,268
93,643
3,422
39,879
8,697 Fred. Olsen Energy ASA
39,122 Global X MSCI Norway ETF
1,700,000 Kingdom of Norway
3.750% May 25, 2021
3,200,000 Kingdom of Norway
3.000% March 14, 2024
431,007
Italy (1.0%)
USD
375,000 New Zealand Government
5.500% April 15, 2023
407,876
Israel (0.5%)
EUR
Fair
Value ($)
Norway (1.0%)
110,000,000 Republic of Hungary
5.500% Series 25/B
June 24, 2025
Ireland (0.3%)
EUR
Average
Cost ($)
New Zealand (0.3%)
84,347 AIA Group Limited
HUF
Face Value/
No. of Shares/Units
1,408,955
1,052,065
2,461,020
1,141,963
1,052,704
2,194,667
45,167 PTT Exploration and
Production Public Company
Limited (Foreign)
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Face Value/
No. of Shares
Average
Cost ($)
Fair
Value ($)
EUR
1,400,000 Republic of Turkey
8.500% July 10, 2019
250,000 Republic of Turkey
4.350% November 12, 2021
USD
580,528
609,197
402,841
983,369
394,238
1,003,435
1,694,464
190,941
936,166
599,042
555,277
2,011,582
107,283
769,522
543,947
625,429
405,874
489,231
547,281
571,674
341,026
345,633
United Kingdom (4.5%)
USD
23,995
115,655
24,933
16,018
49,837
350,000
EUR
375,000
USD
220,000
GBP
130,000
GBP
100,000
GBP
200,000
GBP
250,000
British American Tobacco PLC
Lloyds Banking Group PLC
Persimmon PLC
Royal Dutch Shell PLC ‘B’
The Sage Group PLC
HSBC Holdings PLC
4.000% March 30, 2022
Lloyds Bank PLC
1.000% November 19, 2021
The Royal Bank of Scotland
Group PLC
7.648% August 29, 2049
United Kingdom
Treasury Notes
3.750% September 7, 2021
United Kingdom
Treasury Notes
2.750% September 7, 2024
United Kingdom
Treasury Notes
2.000% September 7, 2025
Yorkshire Building Society
4.750% April 12, 2018
4,322
27,358
28,112
9,766
18,182
23,240
21,761
8,164
20,514
25,320
9,480
USD
7,716
17,964
37,717
32,008
10,949
23,168
43,000
USD
51,000
AbbVie 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.
The Dun &
Bradstreet Corporation
The Kraft Heinz Company
The Williams Companies Inc.
Unum Group
Waste Management Inc.
Western Digital Corporation
WPX Energy Inc.
American Axle &
Manufacturing Inc.
6.250% March 15, 2021
Ball Corporation
5.250% July 1, 2025
USD
USD
USD
USD
IDR
AUD
NZD
239,116
259,078
195,566
199,178
410,011
379,474
453,705
6,568,469
451,520
6,753,551
1,147,472
1,516,553
2,231,532
530,658
1,121,708
2,967,031
1,642,352
253,061
3,079,986
1,181,760
1,542,576
2,817,968
807,113
932,499
3,590,852
1,734,208
234,638
3,585,541
United States (37.6%)
14,282
23,840
33,970
15,149
13,182
21,783
15,145
15,273
23,441
2,564
Average
Cost ($)
Fair
Value ($)
176,371
170,861
459,817
512,976
145,714
153,723
68,310
77,497
98,983
100,240
572,779
586,971
121,456
143,153
226,013
247,635
444,877
521,860
173,104
200,918
341,650
378,144
569,054
614,622
115,459
111,050
67,648
72,859
172,668
195,270
493,010
562,360
134,717
141,533
54,781
57,824
198,937
196,075
90,696
87,848
551,719
624,070
477,531
563,314
115,622
122,700
370,412
401,211
1,227,087
1,237,098
396,401
395,645
1,253,166
1,268,179
United States (continued)
Turkey (0.7%)
TRY
Face Value
393,058
516,080
896,973
1,324,516
1,387,310
690,129
1,087,538
1,190,342
2,899,717
1,679,945
1,953,107
2,700,759
900,719
1,122,353
2,455,942
601,931
1,059,828
1,338,499
3,091,323
2,291,567
2,287,634
3,229,510
1,461,497
708,373
1,103,246
1,639,744
2,005,015
1,100,413
343,154
1,699,182
906,110
724,241
1,747,238
2,677,467
839,895
400,913
NZD
BRL
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
47,108
58,953
69,534
72,095
USD
125,000 CalAtlantic Group Inc.
Convertible Bonds
1.250% August 1, 2032
363,000 Caterpillar Inc.
3.400% May 15, 2024
116,000 Citigroup Inc. Floating Rate
5.875% Series O
December 29, 2049
66,000 Frontier Communications
Corporation
7.875% January 15, 2027
74,000 HCA Holdings Inc.
5.375% February 1, 2025
5,500,000,000 Inter-American
Development Bank
7.875% March 14, 2023*
125,000 International Bank for
Reconstruction
and Development
5.750% October 1, 2020*
250,000 International Bank for
Reconstruction
and Development
3.500% January 22, 2021*
500,000 International Bank for
Reconstruction
and Development
4.625% October 6, 2021*
500,000 International
Finance Corporation
10.500% April 17, 2018*
282,000 JPMorgan Chase & Company
3.125% January 23, 2025
433,000 Kraft Heinz Foods Company
3.950% July 15, 2025
81,000 Level 3 Financing Inc.
5.375% August 15, 2022
58,000 Meritor Inc.
6.250% February 15, 2024
134,000 Micron Technology Inc.
7.500% September 15, 2023
393,000 Pfizer Inc.
3.400% May 15, 2024
100,000 Prudential Financial Inc.
Floating Rate
5.625% June 15, 2043
41,000 Sabine Pass Liquefaction LLC
5.625% March 1, 2025
125,000 salesforce.com inc.
Convertible Bonds
0.250% April 1, 2018
72,000 Tenet Healthcare Corporation
6.750% June 15, 2023
453,000 The Goldman Sachs Group Inc.
3.750% May 22, 2025
399,000 The Procter &
Gamble Company
3.100% August 15, 2023
86,000 T-Mobile US Inc.
6.375% March 1, 2025
300,000 U.S. Treasury Notes
1.625% April 30, 2019
900,000 U.S. Treasury Inflation Index
Linked Notes
0.125% April 15, 2020
300,000 U.S. Treasury Notes
1.250% March 31, 2021
940,000 U.S. Treasury Inflation Index
Linked Notes
0.125% July 15, 2024
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
269
AGF Global Balanced Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
Face Value
Average
Cost ($)
Fair
Value ($)
613,231
618,748
1,258,981
1,281,350
405,165
413,081
391,906
512,980
90,727
51,049,823
91,656
57,112,086
United States (continued)
USD
USD
USD
USD
USD
450,000 U.S. Treasury Inflation Index
Linked Notes
0.375% July 15, 2025
975,000 U.S. Treasury Notes
1.625% February 15, 2026
300,000 U.S. Treasury Inflation Index
Linked Notes
0.625% February 15, 2043
385,000 Verizon Communications Inc.
2.450% November 1, 2022
69,000 Wynn Las Vegas LLC/Wynn
Las Vegas
Capital Corporation
5.500% March 1, 2025
Commissions and other portfolio
transaction costs (Note 2)
(145,129)
–
Total Investments (97.8%)
137,678,933 148,350,243
Foreign Exchange Forward Contracts (0.0%)
See Schedule A
–
Total Portfolio (97.8%)
40,192
137,678,933 148,390,435
* Supranational Security
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
September 30, 2016 of AGF Global Balanced Fund (the “Fund”).
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
NZD
CAD
CAD
CAD
CAD
CAD
CAD
270
500,000
1,938,031
2,134,044
840,675
1,103,288
3,790,705
229,058
CAD
EUR
EUR
GBP
NZD
USD
USD
Sold Currency
Forward Rate
Maturity Date
477,206
1,306,000
1,438,000
494,000
1,150,000
2,881,000
175,000
1.0478
1.4839
1.4840
1.7018
0.9594
1.3158
1.3089
October 12, 2016
October 28, 2016
October 28, 2016
October 26, 2016
October 12, 2016
October 14, 2016
October 31, 2016
Fair Value ($)
155
11,090
12,365
345
5,357
11,380
(500)
40,192
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Counterparty
Credit Rating
Bank of America
Royal Bank of Canada
Toronto-Dominion Bank
Royal Bank of Canada
Bank of America
Bank of Nova Scotia
Toronto-Dominion Bank
BBB
AA
AA
AA
BBB
A
AA
AGF Global Balanced Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
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
September 30, 2015
(%)
United States
Japan
Canada
United Kingdom
Germany
South Korea
Portugal
France
China
Netherlands
Spain
Switzerland
Belgium
Norway
Australia
Brazil
Poland
Luxembourg
Austria
Mexico
Singapore
Hong Kong
Israel
Russia
New Zealand
Italy
Turkey
Hungary
Peru
Malaysia
Chile
Thailand
Foreign Exchange Forward Contracts
38.0
9.2
8.4
4.5
3.8
3.4
3.0
2.4
1.9
1.9
1.8
1.7
1.4
1.4
1.2
1.0
0.7
0.7
0.7
0.6
0.6
0.6
0.5
0.5
0.4
0.4
0.3
0.3
0.3
0.3
0.2
0.1
(0.0)
Portfolio by Sector
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
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
271
AGF Global Balanced Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
September 30, 2015
(%)
Financials
Industrials
Consumer Staples
Government Bonds
Information Technology
Health Care
Corporate Bonds
Energy
Provincial Bonds
ETFs – International Equity
Emerging Markets Bonds
Consumer Discretionary
Telecommunication Services
Others
Supranational Bonds
Materials
High Yield Bonds
Government Guaranteed Investments
Foreign Exchange Forward Contracts
16.9
10.0
9.9
7.7
7.0
5.9
5.1
5.1
5.0
4.2
4.1
3.0
2.2
1.8
1.8
1.7
0.6
0.2
(0.0)
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
September 30, 2015
(%)
International Equity
United States Equity
International Fixed Income
Canadian Fixed Income
United States Fixed Income
Canadian Equity
Foreign Exchange Forward Contracts
32.7
32.4
13.1
5.8
5.6
2.6
(0.0)
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the underlying funds and exchange
traded funds as at September 30, 2016 and 2015 are included in the
following tables:
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
272
Global X MSCI Norway ETF
iShares MSCI Netherlands ETF
AGF Emerging Markets Fund
iShares MSCI China ETF
iShares MSCI France 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
% of Underlying
Fund’s Net Assets
597
1,124
2,549
1,738
230
2,124
0.7
0.5
0.4
0.1
0.0
0.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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
Portfolio by Asset Mix
September 30, 2016
September 30, 2015
Fair Value of
Fund’s
Investment
($’000)
AAA
AA
A
BBB
BB
B
CCC
Not Rated
September 30,
2016
September 30,
2015
8.4
2.2
8.5
4.3
2.6
0.7
0.1
0.4
5.1
2.6
15.9
3.6
4.0
0.3
0.0
0.2
Interest Rate Risk
As at September 30, 2016 and 2015, the Fund’s exposure to debt
instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
September 30,
2016
September 30,
2015
56
3,331
5,473
29,125
224
1,900
7,664
24,326
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable.
As at September 30, 2016 and 2015, 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 $603,000 (September 30, 2015 – $491,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The impact on Net Assets of the Fund due to a 50 percent change in
benchmarks (September 30, 2015 – 70 percent), using historical
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at September 30, 2016 and
2015, with all other variables held constant, is included in the following
table. Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
MSCI All Country World Index
Bloomberg Barclays Global Aggregate Index
Blended Benchmark
September 30, September 30,
2016
2015
53,491
32,030
65,325
77,035
34,309
87,184
The Blended Benchmark is composed of 70% MSCI All Country World
Index and 30% Bloomberg Barclays Global Aggregate Index (formerly,
Barclays Capital Global Aggregate 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
(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 September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
Australian Dollar
Hong Kong Dollar
Norwegian Krone
South Korean Won
Mexican Peso
Czech Koruna
Polish Zloty
Singapore Dollar
Colombian Peso
Peruvian New Sol
Hungarian Forint
New Turkish Lira
Indonesian Rupiah
New Zealand Dollar
Brazilian Real
Thai Baht
72,487
18,037
13,670
5,723
1,970
1,811
1,717
1,261
1,234
913
895
880
658
648
647
639
609
587
1,203
568
139
(4,009) 68,478
(4,049) 13,988
– 13,670
(840) 4,883
–
1,970
–
1,811
–
1,717
–
1,261
–
1,234
–
913
–
895
–
880
–
658
–
648
–
647
–
639
–
609
–
587
(621)
582
–
568
–
139
45.1
9.2
9.0
3.2
1.3
1.2
1.1
0.8
0.8
0.6
0.6
0.6
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.1
September 30, 2015
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
South Korean Won
Swiss Franc
Australian Dollar
Hong Kong Dollar
Norwegian Krone
Polish Zloty
Mexican Peso
Singapore Dollar
New Turkish Lira
New Zealand Dollar
Chilean Peso
Hungarian Forint
Peruvian New Sol
Brazilian Real
Malaysian Ringgit
Thai Baht
70,993
22,137
11,765
6,275
2,531
2,381
1,899
1,775
1,328
1,036
853
842
825
625
446
396
395
378
359
122
(3,892) 67,101
(5,437) 16,700
(666) 11,099
–
6,275
–
2,531
–
2,381
–
1,899
–
1,775
–
1,328
–
1,036
–
853
–
842
–
825
–
625
–
446
–
396
–
395
–
378
–
359
–
122
48.3
12.0
8.0
4.5
1.8
1.7
1.4
1.3
1.0
0.7
0.6
0.6
0.6
0.5
0.3
0.3
0.3
0.3
0.3
0.1
** Includes both monetary and non-monetary instruments, as applicable
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
273
AGF Global Balanced Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
As at September 30, 2016 and 2015, 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 $2,336,000 (September 30,
2015 – $2,347,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’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
–
–
–
–
–
–
–
Total
101,359
37,985
–
9,006
148,350
41
(1)
September 30, 2015
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
91,352
–
–
2,549
93,901
–
–
Level 2
121
34,114
–
–
34,235
16
(33)
Level 3
–
–
–
–
–
–
–
Total
91,473
34,114
–
2,549
128,136
16
(33)
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
274
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Global Bond Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
511,324
523
22,226
–
1,193
1,306
–
–
4,628
41
541,241
348,318
119
12,751
–
158
4,897
–
–
4,116
–
370,359
$
$
–
–
17
–
19
101
182
15
1,614
–
–
1,948
539,293
483,377
$
$
–
–
212
–
19
102
451
18
3,743
–
–
4,545
365,814
325,278
$
$
$
$
$
$
$
$
$
70,221
–
4,075
–
680
464,317
–
–
–
$
$
$
$
$
$
$
$
$
65,786
–
3,368
–
1
296,659
–
–
–
$
$
$
$
$
$
$
$
$
11.89
–
11.91
–
10.93
11.95
–
–
–
$
$
$
$
$
$
$
$
$
11.49
–
11.52
–
10.28
11.58
–
–
–
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.
ANNUAL REPORT 2016
275
AGF Global Bond Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
276
STATEMENTS OF CASH FLOWS
2016
$
$
–
12,142
11,426
2015
$
–
9,991
9,056
4,907
28,475
1,891
17,202
36,249
(9,560)
599
2,490
31
(69)
(9,629)
9
(1,519)
29,477
1,570
28,199
4,454
3,402
209
24
12
43
–
22
11
2
585
–
190
22
11
50
–
19
11
2
445
9
8
5,370
–
4,161
(4,036)
1,334
(2,811)
1,350
28,143
$
26,849
$
$
$
$
$
$
$
$
$
3,379
–
231
–
25
24,508
–
–
–
$
$
$
$
$
$
$
$
$
4,897
–
257
–
0
21,695
–
–
–
$
$
$
$
$
$
$
$
$
0.57
–
0.71
–
0.74
0.84
–
–
–
$
$
$
$
$
$
$
$
$
0.81
–
0.85
–
0.28
1.05
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
$
$
28,143
ANNUAL REPORT 2016
$
51
26,849
(6)
(13,317)
504
(5,506)
(422,878)
(17,133)
(300,551)
279,558
–
–
246,150
–
–
(512)
(1,023)
–
(41)
–
–
–
(1)
(134,503)
(1)
(16)
(45,227)
(107)
185,095
(197)
113,914
(40,959)
144,029
(57,776)
55,941
(51)
6
9,526
12,751
22,226
10,714
2,031
12,751
$
$
19,447
2,779
22,226
$
12,751
–
12,751
$
$
11,632
–
$
$
8,959
–
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2015
$
AGF Global Bond Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
2016
65,786
–
3,368
–
1
296,659
–
–
–
365,814
2015
$
68,982
–
3,487
–
–
210,609
–
–
–
For the periods ended September 30,
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
2016
$
283,078
3,379
–
231
–
25
24,508
–
–
–
28,143
4,897
–
257
–
0
21,695
–
–
–
26,849
13,831
–
1,603
–
658
170,437
–
–
–
186,529
6,337
–
1,325
–
1
106,777
–
–
–
114,440
964
–
70
–
1
12,703
–
–
–
13,738
2,613
–
152
–
–
13,190
–
–
–
15,955
(12,690)
–
(1,109)
–
(4)
(27,286)
–
–
–
(41,089)
(14,232)
–
(1,690)
–
–
(42,422)
–
–
–
(58,344)
159,178
72,051
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.
ANNUAL REPORT 2016
(570)
–
(52)
–
(1)
(7,985)
–
–
–
(8,608)
2015
$
(479)
–
(36)
–
–
(4,719)
–
–
–
(5,234)
(901)
–
(69)
–
–
(7,626)
–
–
–
(8,596)
(1,910)
–
(94)
–
–
(5,564)
–
–
–
(7,568)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
173,479
82,736
70,221
–
4,075
–
680
464,317
–
–
–
65,786
–
3,368
–
1
296,659
–
–
–
539,293
$
365,814
277
AGF Global Bond Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Average
Cost ($)
Face Value
Fair
Value ($)
AUD
AUD
650,000 International Bank for
Reconstruction
and Development
5.750% October 1, 2020*
5,400,000 New South Wales
Treasury Corporation
4.000% April 20, 2023
950,000 Province of Ontario
6.250% September 29, 2020
EUR
640,357
744,395
5,798,493
6,096,294
BRL
16,000,000 Federal Republic of Brazil
10.000% January 1, 2019
5,000,000 International Finance
Corporation
10.500% April 17, 2018*
CAD
CAD
CAD
CAD
615,000 Crew Energy Inc.
8.375% October 21, 2020
7,350,000 Government of Canada
1.750% September 1, 2019
12,200,000 Government of Canada
1.500% June 1, 2026
4,000,000 Government of Canada Real
Return Bonds
3.000% December 1, 2036
2,000,000 Province of Alberta
3.300% December 1, 2046
COP 19,000,000,000 Republic of Colombia
7.000% Series B
May 4, 2022
6,432,428
1,854,870
7,775,339
2,009,184
8,441,612
628,573
608,850
JPY
7,492,540
7,610,674
JPY
12,141,300
12,755,588
7,678,614
7,818,039
2,197,740
30,138,767
2,206,350
30,999,501
IDR 20,000,000,000 European Bank for
Reconstruction
and Development
9.250% December 2, 2020*
IDR 53,600,000,000 Inter-American Development
Bank
7.875% March 14, 2023*
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
278
4,100,074
91,323,031
7,448,366
8,070,700
2,176,119
2,208,479
5,534,970
7,711,089
5,720,295
7,928,774
6,554,583
6,886,895
3,468,284
4,389,243
15,630,183
20,698,645
11,027,616
11,572,973
5,301,320
41,981,986
6,819,086
50,366,842
8,440,451
7,019,344
5,463,685
13,904,136
5,042,359
12,061,703
6,032,067
6,296,486
4,068,235
4,457,433
4,003,893
4,696,741
4,628,412
12,700,540
5,316,521
14,470,695
1,611,937
1,661,887
7,195,811
7,133,807
7,112,220
15,919,968
7,448,089
16,243,783
3,134,390
3,021,717
4,503,899
7,638,289
4,771,711
7,793,428
5,050,812
5,015,067
Japanese Yen (9.4%)
JPY
JPY
JPY
440,000,000 Development Bank of
Japan Inc.
2.300% March 19, 2026*
275,000,000 European Investment Bank
2.150% January 18, 2027*
1,375,000,000 Japan Government Twenty
Year Bond
1.200% September 20, 2035
885,000,000 Japan Government Twenty
Year Bond
0.400% March 20, 2036
435,000,000 KfW
2.050% February 16, 2026
Mexican Peso (2.2%)
MXN
8,123,082
8,789,976
MXN
Euro Currency (16.9%)
EUR
4,189,547
87,567,432
Indonesian Rupiah (1.5%)
5,920,469
Colombian Peso (1.6%)
2,600,000 Republic of Turkey
4.350% November 12, 2021
HUF 1,390,000,000 Republic of Hungary
5.500% Series 25/B
June 24, 2025
1,092,187
7,932,876
Canadian Dollar (5.7%)
CAD
Fair
Value ($)
Hungarian Forint (1.5%)
1,056,071
7,494,921
Brazilian Real (1.6%)
BRL
Average
Cost ($)
Euro Currency (continued)
Australian Dollar (1.5%)
AUD
Face Value
2,000,000 Banco Bilbao Vizcaya
Argentaria SA
0.625% May 17, 2021
2,996,266
2,000,000 Banco Popular Espanol SA
1.000% April 7, 2025
3,024,176
2,100,000 Cassa di Risparmio di Parma e
Piacenza SpA
0.875% June 16, 2023
2,984,411
4,615,000 Federal Republic of Brazil
2.875% April 1, 2021
6,705,091
3,455,000 Kingdom of Spain
1.150% July 30, 2020
5,505,290
2,066,000 Kingdom of Spain
4.400% October 31, 2023
3,269,882
3,840,000 Lloyds Bank PLC
1.000% November 19, 2021
5,599,702
3,350,000 Province of British Columbia
0.875% October 8, 2025
4,911,488
3,750,000 Province of Ontario
0.875% January 21, 2025
5,345,189
5,000,000 Province of Quebec
0.875% January 15, 2025
7,193,765
8,800,000 Republic of Ireland
1.000% May 15, 2026
13,155,916
5,100,000 Republic of Italy Inflation Index
Linked Notes
2.350% September 15, 2024
8,505,028
2,350,000 Republic of Italy
2.000% December 1, 2025
3,507,998
3,150,000 Republic of Portugal
4.750% June 14, 2019
5,073,116
3,800,000 Republic of Portugal
2.875% October 15, 2025
5,600,567
100,450,000 United Mexican States
6.500% Series M
June 9, 2022
76,000,000 United Mexican States
5.750% March 5, 2026
New Turkish Lira (1.2%)
3,059,811
TRY
3,113,568
New Zealand Dollar (2.7%)
NZD
3,251,516
6,927,353
NZD
5,322,821
3,887,284
5,853,942
NZD
14,470,000 Republic of Turkey
8.500% July 10, 2019
4,500,000 International Bank for
Reconstruction
and Development
3.500% January 22, 2021*
4,500,000 International Bank for
Reconstruction
and Development
4.625% October 6, 2021*
4,600,000 New Zealand Government
5.500% April 15, 2023
Norwegian Krone (3.0%)
5,224,094
NOK
5,838,411
NOK
7,782,499
NOK
10,000,000 European Investment Bank
1.500% May 12, 2022*
38,500,000 Kingdom of Norway
3.750% May 25, 2021
39,900,000 Kingdom of Norway
3.000% March 14, 2024
13,792,225
Peruvian New Sol (1.4%)
PEN
8,842,465
PEN
3,730,842
5,106,670
5,489,456
7,000,000 Republic of Peru
7.840% August 12, 2020
12,000,000 Republic of Peru
5.700% August 12, 2024
Polish Zloty (2.1%)
PLN
12,600,000 Republic of Poland
5.750% October 25, 2021
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Average
Cost ($)
Face Value
Fair
Value ($)
17,000,000 Republic of Poland
4.000% October 25, 2023
USD
6,329,037
11,379,849
6,329,501
11,344,568
Pound Sterling (5.2%)
GBP
GBP
GBP
GBP
GBP
3,675,000 European Investment Bank
2.500% October 31, 2022*
5,996,639
2,150,000 United Kingdom Treasury Notes
3.750% September 7, 2021
4,123,355
1,000,000 United Kingdom Treasury Notes
2.750% September 7, 2024
1,955,658
6,750,000 United Kingdom Treasury Notes
2.000% September 7, 2025
13,051,279
1,200,000 Yorkshire Building Society
4.750% April 12, 2018
2,177,783
27,304,714
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
568,000 American Axle &
Manufacturing Inc.
6.250% March 15, 2021
647,000 Ball Corporation
5.250% July 1, 2025
529,000 Beverage Packaging Holdings
(Luxembourg) II SA/
Beverage Packaging
Holdings II Issuer Inc.
5.625% December 15, 2016
1,475,000 CalAtlantic Group Inc.
Convertible Bonds
1.250% August 1, 2032
5,032,000 Caterpillar Inc.
3.400% May 15, 2024
1,300,000 Cemex SAB de CV
5.700% January 11, 2025
316,000 Cheniere Corpus Christi
Holdings LLC
7.000% Series 144A
June 30, 2024
1,172,000 Citigroup Inc. Floating Rate
5.875% Series O
December 29, 2049
5,000 Cott Beverages Inc.
5.375% July 1, 2022
1,352,000 Ctrip.com International Limited
Convertible Bonds
1.250% October 15, 2018
849,000 Frontier
Communications Corporation
7.875% January 15, 2027
1,378,000 HCA Holdings Inc.
5.375% February 1, 2025
4,690,000 HSBC Holdings PLC
4.000% March 30, 2022
1,500,000 Intesa Sanpaolo SpA
7.700% December 29, 2049
4,397,000 JPMorgan Chase & Company
3.125% January 23, 2025
1,600,000 Just Energy Group Inc.
Convertible Bonds
6.500% July 29, 2019
5,298,000 Kraft Heinz Foods Company
3.950% July 15, 2025
775,000 Level 3 Financing Inc.
5.375% August 15, 2022
782,000 Meritor Inc.
6.250% February 15, 2024
2,813,000 Micron Technology Inc.
7.500% September 15, 2023
5,439,000 Pfizer Inc.
3.400% May 15, 2024
3,050,000 Province of British Columbia
2.650% September 22, 2021
USD
USD
6,912,226
USD
4,284,746
1,991,782
USD
12,807,263
2,167,295
28,163,312
United States Dollar (37.3%)
USD
Fair
Value ($)
United States Dollar (continued)
Polish Zloty (continued)
PLN
Average
Cost ($)
Face Value
USD
USD
USD
669,777
778,721
880,477
914,616
USD
USD
USD
698,031
692,356
USD
2,120,240
2,016,160
USD
6,457,250
7,111,010
USD
1,729,472
1,726,343
USD
436,564
447,742
1,468,591
1,553,135
6,631
6,757
2,231,168
2,287,037
USD
879,634
996,892
USD
1,873,571
1,866,623
USD
5,648,181
6,555,695
1,895,484
1,721,934
5,531,915
5,896,097
USD
USD
USD
USD
4,700,000 Province of Manitoba
3.050% May 14, 2024
5,165,330
6,656,437
3,200,000 Province of Ontario
2.450% June 29, 2022
3,572,509
4,358,558
2,700,000 Province of Quebec
2.875% October 16, 2024
3,730,906
3,759,813
1,100,000 Prudential Financial Inc.
Floating Rate
5.625% June 15, 2043
1,498,750
1,556,865
1,250,000 Realogy Group LLC/CoIssuer Corporation
4.875% Series 144A
June 1, 2023
1,689,809
1,666,586
5,850,000 Republic of Portugal
5.125% October 15, 2024
7,622,577
7,644,760
565,000 Sabine Pass Liquefaction LLC
5.625% March 1, 2025
760,073
796,846
1,300,000 salesforce.com inc.
Convertible Bonds
0.250% April 1, 2018
2,068,946
2,039,180
949,000 Tenet Healthcare Corporation
6.750% June 15, 2023
1,194,886
1,157,888
5,786,000 The Goldman Sachs Group Inc.
3.750% May 22, 2025
7,318,025
7,971,006
5,471,000 The Procter & Gamble Company
3.100% August 15, 2023
6,841,182
7,724,036
2,200,000 The Royal Bank of Scotland
Group PLC
7.648% August 29, 2049
3,410,271
3,456,332
1,144,000 T-Mobile US Inc.
6.375% March 1, 2025
1,575,746
1,632,197
5,000,000 U.S. Treasury Notes
1.625% April 30, 2019
6,348,001
6,686,845
7,900,000 U.S. Treasury Inflation Index
Linked Notes 0.125%
April 15, 2020
10,764,072 10,858,971
3,100,000 U.S. Treasury Notes
1.250% March 31, 2021
4,096,145
4,088,332
8,200,000 U.S. Treasury Inflation Index
Linked Notes
0.125% July 15, 2024
10,934,232 11,062,836
6,500,000 U.S. Treasury Inflation Index
Linked Notes
0.375% July 15, 2025
8,884,595
8,937,477
22,700,000 U.S. Treasury Notes
1.625% February 15, 2026
29,735,943 29,832,459
6,500,000 U.S. Treasury Inflation Index
Linked Notes
0.625% February 15, 2043
8,857,556
8,950,097
5,080,000 Verizon Communications Inc.
2.450% November 1, 2022
5,300,361
6,768,675
945,000 Wynn Las Vegas LLC/Wynn
Las Vegas
Capital Corporation
5.500% March 1, 2025
1,242,536
1,255,290
190,256,886 201,096,794
Commissions and other portfolio
transaction costs (Note 2)
–
–
1,998,747
1,994,164
6,940,755
7,520,245
1,104,697
1,062,515
908,618
982,342
3,867,339
4,099,203
* Supranational Security
6,999,587
7,782,897
3,297,706
4,222,824
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF Global Bond Fund (the “Fund”).
Total Investments (94.8%)
Foreign Exchange Forward Contracts (0.1%)
See Schedule A
Total Portfolio (94.9%)
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
483,377,431 511,324,081
–
506,055
483,377,431 511,830,136
279
AGF Global Bond Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
NZD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
280
10,000
16,328,182
12,899,925
26,395,064
14,170,655
13,273,036
47,485,778
7,981,672
CAD
EUR
EUR
EUR
GBP
NZD
USD
USD
Sold Currency
Forward Rate
Maturity Date
9,544
11,010,000
8,693,000
17,786,000
8,327,000
13,835,000
36,090,000
6,098,000
1.0478
1.4830
1.4839
1.4840
1.7018
0.9594
1.3158
1.3089
October 12, 2016
October 28, 2016
October 28, 2016
October 28, 2016
October 26, 2016
October 12, 2016
October 14, 2016
October 31, 2016
Fair Value ($)
3
83,453
73,819
152,670
5,814
64,453
142,556
(16,713)
506,055
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Counterparty
Credit Rating
Bank of America
Bank of Montreal
Royal Bank of Canada
Toronto-Dominion Bank
Royal Bank of Canada
Bank of America
Bank of Nova Scotia
Toronto-Dominion Bank
BBB
A
AA
AA
AA
BBB
A
AA
AGF Global Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
September 30, 2015
(%)
Summary of Investment Portfolio
As at September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Government Bonds
Corporate Bonds
Emerging Markets Bonds
Provincial Bonds
Supranational Bonds
High Yield Bonds
Government Guaranteed Investments
Foreign Exchange Forward Contracts
43.3
17.6
13.3
11.7
6.7
2.0
0.6
(0.0)
Portfolio by Currency
Portfolio by Asset Mix
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.
September 30, 2016
(%)
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
International Fixed Income
United States Fixed Income
Canadian Fixed Income
Foreign Exchange Forward Contracts
49.3
32.2
13.3
0.1
September 30, 2015
(%)
International Fixed Income
United States Fixed Income
Canadian Fixed Income
Foreign Exchange Forward Contracts
52.7
26.2
16.3
(0.0)
September 30, 2015
(%)
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Canadian Dollar
Norwegian Krone
New Zealand Dollar
Mexican Peso
Polish Zloty
Australian Dollar
Hungarian Forint
New Turkish Lira
Malaysian Ringgit
Chilean Peso
Peruvian New Sol
Brazilian Real
Foreign Exchange Forward Contracts
38.4
24.8
4.8
4.8
4.7
3.4
3.0
2.3
2.2
1.4
1.0
1.0
1.0
0.9
0.8
0.7
(0.0)
Credit Risk
As at September 30, 2016 and 2015, 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:
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
Percentage of Net Assets (%)
Credit Rating
AAA
AA
A
BBB
BB
B
CCC
Not Rated
September 30,
2016
September 30,
2015
31.7
9.9
29.1
15.8
8.4
2.6
0.3
1.2
30.9
7.8
29.5
13.9
15.0
1.1
0.2
0.3
Portfolio by Sector
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
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
281
AGF Global Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
Interest Rate Risk
As at September 30, 2016 and 2015, the Fund’s exposure to debt
instruments by maturity was as follows:
September 30, 2016
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
September 30,
2016
September 30,
2015
692
42,630
58,811
409,191
1,927
13,651
61,368
271,372
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at September 30, 2016 and 2015, 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 $8,632,000 (September 30, 2015 – $5,364,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
currency.
The impact on Net Assets of the Fund due to a 20 percent change in
benchmark (September 30, 2015 – 10 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at September 30, 2016 and 2015,
with all other variables held constant, is included in the following table.
Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Impact on Net Assets ($’000)
Benchmark
Bloomberg Barclays Global Aggregate Index
(formerly, Barclays Capital Global
Aggregate Bond Index)
September 30, September 30,
2016
2015
66,229
21,645
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 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.
282
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
($’000)
United States Dollar
Japanese Yen
Euro Currency
Norwegian Krone
Pound Sterling
Mexican Peso
Polish Zloty
Colombian Peso
Brazilian Real
Hungarian Forint
Australian Dollar
Indonesian Rupiah
Peruvian New Sol
New Turkish Lira
New Zealand Dollar
Financial
Instruments
Foreign
Exchange
Forward
Contracts
221,849
50,367
91,323
16,244
28,163
12,062
11,345
8,790
8,442
8,071
7,933
7,929
7,793
6,296
14,471
Total**
Percentage of
Net Assets (%)
(55,341) 166,508
–
50,367
(55,313) 36,010
–
16,244
(14,165) 13,998
–
12,062
–
11,345
–
8,790
–
8,442
–
8,071
–
7,933
–
7,929
–
7,793
–
6,296
(13,199)
1,272
30.9
9.4
6.7
3.0
2.6
2.2
2.1
1.6
1.6
1.5
1.5
1.5
1.4
1.2
0.2
September 30, 2015
($’000)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
United States Dollar
Euro Currency
Pound Sterling
Norwegian Krone
Japanese Yen
Mexican Peso
Polish Zloty
New Zealand Dollar
New Turkish Lira
Australian Dollar
Hungarian Forint
Malaysian Ringgit
Chilean Peso
Peruvian New Sol
Brazilian Real
153,644
90,700
17,556
12,292
17,693
8,266
8,004
7,885
7,420
5,181
3,680
3,565
3,461
3,074
2,561
(38,855)
(57,583)
–
–
(5,960)
–
–
–
–
–
–
–
–
–
–
114,789
33,117
17,556
12,292
11,733
8,266
8,004
7,885
7,420
5,181
3,680
3,565
3,461
3,074
2,561
31.4
9.1
4.8
3.4
3.2
2.3
2.2
2.2
2.0
1.4
1.0
1.0
0.9
0.8
0.7
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $7,261,000 (September 30,
2015 – $4,852,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
–
–
–
–
–
–
–
Level 2
–
511,324
–
–
511,324
523
(17)
Level 3
–
–
–
–
–
–
–
Total
–
511,324
–
–
511,324
523
(17)
September 30, 2015
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
–
–
–
–
–
–
–
Level 2
–
348,318
–
–
348,318
119
(212)
Level 3
–
–
–
–
–
–
–
Total
–
348,318
–
–
348,318
119
(212)
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
283
AGF Global Convertible Bond Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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.
ANNUAL REPORT 2016
18,652
12
–
–
–
224
–
1
100
–
18,989
18,210
5
4,602
–
68
–
–
–
103
–
22,988
$
$
421
–
15
–
5
–
32
1
–
9
–
483
18,506
16,971
$
$
–
–
75
–
6
9
62
1
705
–
–
858
22,130
18,402
$
$
$
$
$
$
$
$
$
11,710
–
5,461
–
426
–
–
464
445
$
$
$
$
$
$
$
$
$
12,772
–
7,865
–
507
–
–
557
429
$
$
$
$
$
$
$
$
$
9.99
–
10.09
–
10.24
–
–
9.16
10.24
$
$
$
$
$
$
$
$
$
9.73
–
9.78
–
9.86
–
–
9.39
9.87
AGF Global Convertible Bond Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
$
232
214
(1,131)
2015
$
64
44
(105)
1,873
1,188
(275)
(192)
(189)
(663)
67
(208)
5
(70)
(733)
0
25
1,010
30
(892)
307
143
102
21
12
12
–
25
3
2
55
31
60
19
11
9
–
21
–
1
29
9
6
576
3
305
(178)
398
(119)
186
612
$
(1,078)
$
$
$
$
$
$
$
$
$
289
–
265
–
22
–
–
15
21
$
$
$
$
$
$
$
$
$
(626)
–
(383)
–
(22)
–
–
(29)
(18)
$
$
$
$
$
$
$
$
$
0.22
–
0.32
–
0.51
–
–
0.25
0.47
$
$
$
$
$
$
$
$
$
(0.75)
–
(0.83)
–
(0.66)
–
–
(0.74)
(0.51)
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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
612
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
$
–
(1,078)
(17)
1,406
768
(1,940)
(15,495)
262
(21,707)
14,600
–
(1)
3,242
–
–
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
2015
$
$
3
(103)
–
–
–
–
(1)
(9)
(825)
6
9
(18,618)
(20)
5,341
(5)
24,112
(9,519)
(4,198)
(904)
23,203
–
17
(5,023)
4,602
(421)
4,585
–
4,602
$
$
(421)
–
(421)
$
$
1,171
3,431
4,602
$
$
218
200
$
$
69
48
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
285
AGF Global Convertible Bond Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
2016
12,772
–
7,865
–
507
–
–
557
429
22,130
289
–
265
–
22
–
–
15
21
612
2015
$
–
–
–
–
–
–
–
–
–
For the periods ended September 30,
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
2016
$
–
(626)
–
(383)
–
(22)
–
–
(29)
(18)
(1,078)
3,081
–
2,126
–
122
–
–
22
–
5,351
13,995
–
9,053
–
532
–
–
600
450
24,630
12
–
25
–
2
–
–
19
4
62
–
–
–
–
–
–
–
9
–
9
(4,431)
–
(4,788)
–
(223)
–
–
(120)
(5)
(9,567)
(597)
–
(805)
–
(3)
–
–
(8)
(3)
(1,416)
(4,154)
23,223
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.
ANNUAL REPORT 2016
(13)
–
(32)
–
(4)
–
–
–
(4)
(53)
2015
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(29)
–
(29)
–
–
–
–
–
–
–
(15)
–
(15)
(3,624)
22,130
11,710
–
5,461
–
426
–
–
464
445
12,772
–
7,865
–
507
–
–
557
429
18,506
$
22,130
AGF Global Convertible Bond Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
Average
Cost ($)
Face Value
Fair
Value ($)
Corporate Bonds (83.3%)
EUR
JPY
CAD
USD
EUR
CAD
EUR
USD
USD
USD
EUR
CAD
USD
CAD
CAD
USD
USD
EUR
USD
USD
USD
USD
CAD
Face Value
Average
Cost ($)
Fair
Value ($)
234,900
249,271
257,250
260,000
215,562
518,156
375,126
319,025
445,203
442,746
210,786
250,910
497,468
536,260
192,475
218,364
154,915
182,730
236,357
209,781
112,277
109,400
521,037
528,060
454,273
561,000
208,601
234,122
170,360
172,546
398,052
436,063
212,196
206,239
266,625
314,868
429,379
465,644
217,027
256,555
255,686
321,962
244,831
479,202
Corporate Bonds (continued)
200,000 adidas AG Convertible Bonds
0.250% June 14, 2019
40,000,000 Advantest Corporation
Zero Coupon Convertible Bonds
March 14, 2019
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
181,251 Cap Gemini SA
Zero Coupon Convertible Bonds
January 1, 2019
375,000 Cardinal Energy Limited
Convertible Debentures
5.500% December 31, 2020
93,438 Compagnie Generale des
Etablissements Michelin
Zero Coupon Convertible Bonds
January 1, 2017
175,000 CSG Systems International Inc.
Convertible Bonds
4.250% Series 144A
March 15, 2036
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
175,000 DH Corporation
Convertible Bonds
6.000% September 30, 2018
200,000 Dycom Industries Inc.
Convertible Bonds
0.750% September 15, 2021
103,000 Element Financial Corporation
Convertible Debentures
5.125% June 30, 2019
125,000 Element Financial Corporation
Convertible Debentures
4.250% June 30, 2020
100,000 Finisar Corporation
Convertible Bonds
0.500% December 15, 2033
300,000 FireEye Inc. Convertible Bonds
1.625% June 1, 2035
150,000 Fomento de Construcciones y
Contratas SA
Convertible Bonds
6.500% October 30, 2020
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
130,000 Intel Corporation
Convertible Bonds
2.950% December 15, 2035
250,000 Intesa Sanpaolo SpA
7.700% December 29, 2049
308,000 Just Energy Group Inc.
Convertible Bonds
6.000% June 30, 2017
USD
323,929
558,300
CAD
436,140
298,190
329,612
307,573
375,000
556,969
345,200
307,550
352,320
412,500
JPY
USD
USD
USD
USD
136,136
192,130
CAD
240,981
250,398
USD
195,818
243,590
USD
257,294
271,738
USD
400,495
404,938
USD
242,994
183,750
CAD
312,865
286,005
121,739
118,975
USD
USD
125,000
131,000
USD
130,493
154,892
361,419
358,654
212,993
219,410
112,110
96,600
328,987
382,515
JPY
202,940
235,470
USD
293,310
286,989
298,838
306,583
USD
USD
CHF
USD
200,000 Just Energy Group Inc.
Convertible Bonds
6.500% July 29, 2019
200,000 Kelt Exploration Limited
Convertible Bonds
5.000% May 31, 2021
20,000,000 Kyudenko Corporation
Zero Coupon Convertible Bonds
Series 2 March 15, 2019
135,000 Lennar Corporation
Convertible Bonds
3.250% November 15, 2021
645,108 Liberty Interactive LLC
Convertible Bonds
3.500% January 15, 2031
150,000 Microchip Technology Inc.
Convertible Bonds
1.625% February 15, 2025
375,000 Newmont Mining Corporation
Convertible Bonds
1.625% Series B July 15, 2017
186,000 Northland Power Inc.
Convertible Bonds
4.750% June 30, 2020
50,000 Novellus Systems Inc.
Convertible Bonds
2.625% May 15, 2041
160,000 NRG Yield Inc.
Convertible Bonds
3.500% February 1, 2019
70,000 ON Semiconductor Corporation
Convertible Bonds
2.625% Series B
December 15, 2026
400,000 Pattern Energy Group Inc.
Convertible Bonds
4.000% July 15, 2020
425,000 Premium Brands Holdings
Corporation
Convertible Bonds
5.000% April 30, 2020
141,000 Red Hat Inc. Convertible Bonds
0.250% October 1, 2019
110,000 salesforce.com inc.
Convertible Bonds
0.250% April 1, 2018
273,000 ServiceNow Inc.
Zero Coupon
Convertible Bonds
November 1, 2018
160,000 Silver Standard Resources Inc.
Convertible Bonds
2.875% Series 144A
February 1, 2033
200,000 Stillwater Mining Company
Convertible Bonds
1.750% October 15, 2032
290,000 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
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
287
AGF Global Convertible Bond Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016 CONTINUED
Face Value/
No. of Shares
Average
Cost ($)
Fair
Value ($)
Corporate Bonds (continued)
JPY
USD
CAD
CAD
USD
USD
200,000 Cemex SAB de CV
Convertible Bonds
3.750% March 15, 2018
Average
Cost ($)
Fair
Value ($)
871,962
682,893
82,090
83,905
213,980
220,851
179,639
177,830
232,726
626,345
232,609
631,290
Health Care (3.7%)
20,000,000 Terumo Corporation
Zero Coupon Convertible Bonds
December 4, 2019
246,000 The Priceline Group Inc.
Convertible Bonds
0.900% September 15, 2021
250,000 TransGlobe Energy Corporation
Convertible Bonds
6.000% March 31, 2017
70,000 Tricon Capital Group Inc.
Convertible Bonds
5.600% March 31, 2020
200,000 Vector Group Limited
Convertible Bonds
1.750% April 15, 2020
72,000 XPO Logistics Inc.
Convertible Bonds
4.500% October 1, 2017
262,100
640 Teva Pharmaceutical Industries
Limited
Convertible Preferred 7.000%
299,379
Real Estate (0.5%)
333,679
346,542
245,312
250,675
75,189
77,700
265,792
298,961
245,013
13,782,327
212,300
15,414,937
Emerging Markets Bond (1.6%)
USD
No. of Shares
961 Welltower Inc.
Convertible Preferred
6.500% Series I
Utilities (3.4%)
3,383 Dominion Resources Inc.
Convertible Preferred 6.375%
2,900 Exelon Corporation Convertible
Preferred 6.500%
3,000 NextEra Energy Inc. Convertible
Preferred 6.371%
Commissions and other portfolio
transaction costs (Note 2)
(1,612)
Total Investments (100.8%)
16,970,937
Foreign Exchange Forward Contracts (-0.0%)
264,387
294,533
366,187
411,359
259,903
292,530
324,886
584,789
407,951
700,481
231,591
253,928
162,871
394,462
179,081
433,009
See Schedule A
–
–
18,652,407
(3,216)
Consumer Staples (2.2%)
2,300 Post Holdings Inc.
Convertible Preferred
5.250%
Total Portfolio (100.8%)
Energy (3.8%)
16,438 Repsol SA
5,000 WPX Energy Inc.
Convertible Preferred 6.250%
Series A
16,970,937
18,649,191
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF Global Convertible Bond Fund (the “Fund”).
Financials (2.3%)
158 Bank of America Corporation
Convertible Preferred
7.250% Series L
105 Wells Fargo & Company
Convertible Preferred
7.500% Series L
Schedule A
Foreign Exchange Forward Contracts
Purchased Currency
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
CAD
288
1,023,921
936,814
625,833
951,305
760,818
557,768
1,906,365
2,343,174
569,341
700,262
Sold Currency Forward Rate
EUR
690,000
JPY 72,723,000
JPY 48,472,000
USD
723,000
USD
579,000
USD
424,000
USD 1,453,000
USD 1,791,000
USD
435,000
USD
535,000
Maturity Date Fair Value ($)
1.4839 October 28, 2016
0.0129 October 21, 2016
0.0129 November 4, 2016
1.3158 October 14, 2016
1.3140 October 26, 2016
1.3155 October 27, 2016
1.3120 October 31, 2016
1.3083 October 31, 2016
1.3088 October 31, 2016
1.3089 October 31, 2016
Counterparty Credit Rating
5,859
Royal Bank of Canada
(4,748)
Citibank NA
(2,047) The Bank of New York Mellon Corporation
2,866
Citibank NA
1,350
Bank of America
1,616
Bank of Montreal
551
National Bank of Canada
(5,974)
Royal Bank of Canada
(1,223) The Bank of New York Mellon Corporation
(1,466)
Toronto-Dominion Bank
(3,216)
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AA
A
A
A
BBB
A
A
AA
A
AA
AGF Global Convertible Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
September 30, 2015
(%)
Corporate Bonds
Financials
Utilities
Energy
Consumer Staples
High Yield Bonds
Health Care
Telecommunication Services
Foreign Exchange Forward Contracts
72.3
2.1
2.1
2.0
1.3
1.2
1.1
0.2
(0.3)
Portfolio by Asset Mix
Portfolio by Country
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)
September 30, 2015
(%)
United States
Japan
Canada
Spain
France
Germany
Cayman Islands
Switzerland
Norway
Luxembourg
Netherlands
Foreign Exchange Forward Contracts
40.8
9.8
8.9
7.0
3.7
3.3
2.7
2.1
1.6
1.3
1.1
(0.3)
Portfolio by Sector
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)
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)
September 30, 2015
(%)
International Fixed Income
United States Fixed Income
Canadian Fixed Income
United States Equity
International Equity
Foreign Exchange Forward Contracts
32.4
32.2
8.9
8.6
0.2
(0.3)
As at September 30, 2016, the Fund did not hold any private and/or
restricted securities. As at September 30, 2015, the total fair value of
private and/or restricted securities held within the Fund represented
approximately $500,000.
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, the Fund invested in debt
instruments, foreign exchange forward contracts, preferred shares,
short-term investments and cash and cash equivalents, as applicable,
with the following credit ratings:
Percentage of Net Assets (%)
Credit Rating
AA
A
BBB
BB
B
CCC
Not Rated
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
September 30,
2016
(0.0)
(1.0)
18.1
9.4
4.5
0.5
65.4
September 30,
2015
0.0
22.2
14.5
6.0
5.4
1.0
53.7
289
AGF Global Convertible Bond Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
Interest Rate Risk
As at September 30, 2016 and 2015, the Fund’s exposure to debt
instruments by maturity was as follows:
($’000)
Debt Instruments*
by Maturity Date
Less than 1 year
1-3 years
3-5 years
Greater than 5 years
September 30,
2016
September 30,
2015
1,285
5,179
5,383
3,862
634
3,596
7,778
4,250
* Excludes cash and cash equivalents and preferred shares but includes
short-term investments, as applicable
As at September 30, 2016 and 2015, 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 $172,000 (September 30, 2015 – $203,000).
As at September 30, 2016, the Fund did not hold any significant cash
and cash equivalents. As at September 30, 2015, 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 $12,000.
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
payable for cash collateral under securities lending and payable for
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
United States Dollar
Euro Currency
Swiss Franc
Japanese Yen
($’000)
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
market segment.
United States Dollar
Euro Currency
Japanese Yen
Swiss Franc
Impact on Net Assets ($’000)
Benchmark
Bloomberg Barclays Global Convertibles
Index (formerly, Barclays Capital Global
Convertibles Index)
September 30,
2016
September 30,
2015
1,874
1,813
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
290
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
September 30, 2015
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The impact on Net Assets of the Fund due to a 15 percent change in
benchmark (September 30, 2015 – 10 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at September 30, 2016 and 2015,
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.
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
11,879
3,216
2,176
455
(7,580)
(1,634)
(1,036)
–
4,299
1,582
1,140
455
19.4
7.1
5.2
2.1
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $108,000 (September 30,
2015 – $150,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’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.
ANNUAL REPORT 2016
Level 1
2,943
–
–
–
2,943
–
–
Level 2
–
15,709
–
–
15,709
12
(15)
Level 3
–
–
–
–
–
–
–
Total
2,943
15,709
–
–
18,652
12
(15)
September 30, 2015
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
1,952
–
–
–
1,952
–
–
Level 2
–
15,758
–
–
15,758
5
(75)
Level 3
–
500
–
–
500
–
–
Total
1,952
16,258
–
–
18,210
5
(75)
economic or market conditions. As at September 30, 2016, the Fund did
not hold any level 3 investments. As at September 30, 2015, if the value
of the level 3 investments increased or decreased by 10 percent, Net
Assets would have increased or decreased, respectively, by
approximately $50,000.
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
The following tables reconcile the Fund’s level 3 fair value
measurements for the periods ended September 30, 2016 and 2015.
September 30, 2016
($’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
500
–
–
(500)
–
–
–
Total
500
–
–
(500)
–
–
–
–
During the period ended September 30, 2016, investments of
approximately $500,000 were transferred from level 3 to level 2 due to a
change in valuation to the use of quoted prices from recognized
investment dealers.
September 30, 2015
($’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, 2015
Equities
Debt
Instruments
Total
–
–
–
–
–
–
500
–
–
–
–
500
–
–
–
–
–
–
500
–
500
–
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 from time to time depending on company specific factors and
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
291
AGF Global Dividend Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
292
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
2,078,303
–
166,761
–
5,127
11,299
–
–
4,498
2,194
2,268,182
1,737,582
–
189,750
–
2,444
–
–
–
4,630
914
1,935,320
$
$
–
–
–
–
565
1,010
898
90
5,668
–
–
8,231
2,259,951
1,727,225
$
$
–
–
–
–
498
801
651
78
17,791
–
–
19,819
1,915,501
1,544,930
$
$
$
$
$
$
$
$
$
1,459,128
–
53,268
249,894
11,015
454,165
15,452
14,192
2,837
$
$
$
$
$
$
$
$
$
1,298,294
–
50,904
130,985
6,362
403,919
13,507
11,412
118
$
$
$
$
$
$
$
$
$
25.64
–
26.50
26.49
16.83
26.97
13.75
17.06
11.03
$
$
$
$
$
$
$
$
$
24.28
–
24.89
24.92
15.83
25.38
13.82
16.64
10.09
AGF Global Dividend Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
$
65,476
164
8,250
2015
$
47,992
305
76,113
158,426
232,316
–
34,661
159,071
–
–
–
265
–
–
341
(16,048)
216,533
12,877
172,289
30,569
20,712
2,401
54
12
259
–
74
36
2
3,643
7,970
1,504
42
11
190
–
45
34
2
2,420
5,986
1,609
46,629
2,039
32,985
(4,990)
41,639
(3,735)
29,250
174,894
$
143,039
$
$
$
$
$
$
$
$
$
106,140
–
4,218
19,002
834
42,464
1,132
984
120
$
$
$
$
$
$
$
$
$
73,395
–
5,065
19,694
738
41,812
1,188
1,149
(2)
$
$
$
$
$
$
$
$
$
1.85
–
2.28
2.11
1.53
2.60
1.02
1.25
0.91
$
$
$
$
$
$
$
$
$
1.89
–
2.99
3.70
2.11
3.28
1.56
2.00
(0.95)
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
$
$
174,894
2015
$
143,039
(598)
(12,562)
(8,250)
(76,113)
(158,426)
(620,930)
(34,661)
(1,156,109)
423,463
–
–
397,799
(1,332)
–
132
(2,333)
–
(1,280)
–
(427)
67
209
(190,719)
290
386
(742,023)
(4,376)
512,068
(2,408)
1,185,382
(340,560)
167,132
(324,404)
858,570
598
12,562
(23,587)
189,750
166,761
116,547
60,641
189,750
$
$
164,792
1,969
166,761
$
$
137,151
52,599
189,750
$
$
173
57,657
$
$
295
37,912
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
293
AGF Global Dividend Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
294
2016
1,298,294
–
50,904
130,985
6,362
403,919
13,507
11,412
118
1,915,501
106,140
–
4,218
19,002
834
42,464
1,132
984
120
174,894
2015
$
543,413
–
29,821
150,062
3,944
167,606
8,557
8,135
–
For the periods ended September 30,
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
2016
$
911,538
73,395
–
5,065
19,694
738
41,812
1,188
1,149
(2)
143,039
247,166
–
24,577
107,889
5,429
129,911
5,502
4,056
2,939
527,469
885,344
–
23,319
30,053
3,907
240,530
6,112
3,840
121
1,193,226
28,431
–
793
9,020
298
15,745
571
298
1
55,157
2,942
–
491
3,234
118
5,360
287
250
–
12,682
(189,393)
–
(26,206)
(7,982)
(1,598)
(122,129)
(3,999)
(1,880)
(338)
(353,525)
(202,224)
–
(7,233)
(68,824)
(2,227)
(46,029)
(1,817)
(1,514)
(1)
(329,869)
229,101
876,039
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.
ANNUAL REPORT 2016
(6,313)
–
(265)
(4,675)
(161)
(8,177)
(62)
(103)
(1)
(19,757)
2015
$
(4,576)
–
(559)
(3,234)
(118)
(5,360)
(80)
(43)
–
(13,970)
(25,197)
–
(753)
(4,345)
(149)
(7,568)
(84)
(70)
(2)
(38,168)
–
–
–
–
–
–
(532)
(316)
–
(848)
–
–
–
–
–
–
(1,115)
(505)
–
(1,620)
–
–
–
–
–
–
(208)
(89)
–
(297)
344,450
1,003,963
1,459,128
–
53,268
249,894
11,015
454,165
15,452
14,192
2,837
1,298,294
–
50,904
130,985
6,362
403,919
13,507
11,412
118
2,259,951
$
1,915,501
AGF Global Dividend Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares
Average
Cost ($)
Fair
Value ($)
20,718,004
21,278,837
17,414,216
25,538,866
39,244,633
40,026,396
39,982,172
34,802,828
6,003,383
45,985,555
5,814,411
40,617,239
52,947,802
49,756,527
36,815,848
13,548,315
34,168,693
16,239,536
25,793,119
25,317,919
34,296,304
29,160,842
164,932,347
29,025,983
26,438,258
34,712,279
34,107,782
174,692,531
30,865,145
45,823,954
76,689,099
31,047,383
56,676,438
87,723,821
21,111,856
21,662,541
21,059,752
17,710,572
11,319,455
12,046,551
42,123,006
25,099,675
59,293,936
33,994,696
31,721,257
19,887,044
118,830,982
54,810,624
38,436,382
186,535,638
11,315,460
12,119,243
7,661,938
7,960,242
25,685,476
36,221,117
35,340,922
61,026,398
34,898,850
71,119,967
23,001,650
23,315,649
53,908,049
49,384,032
16,423,187
119,715,268
60,294,665
52,849,731
17,377,902
130,522,298
28,370,513
31,865,100
13,672,316
15,027,927
11,327,443
53,370,272
11,448,837
58,341,864
Austria (0.9%)
468,773 Voestalpine AG
Belgium (1.1%)
148,617 Anheuser-Busch InBev SA/NV
Canada (1.8%)
1,846,797 Goldcorp Inc.
China (1.8%)
21,388,601 CNOOC Limited
7,087,726 Industrial & Commercial
Bank of China Limited ‘H’
Czech Republic (2.2%)
1,096,052 Komercni Banka AS
France (7.7%)
506,539 BNP Paribas SA
30,418 Hermes International
129,742 LVMH Moet Hennessy Louis
Vuitton SE
289,059 Schneider Electric SE
558,528 TOTAL SA
96,429 Unibail-Rodamco SE
Germany (3.9%)
809,468 Freenet AG
403,360 Hannover Rueck SE
No. of Shares
488,176
3,388,131
963,286
11,259,030
1,378,659
British American Tobacco PLC
British Land Company PLC
Close Brothers Group PLC
Lloyds Banking Group PLC
Royal Dutch Shell PLC ‘B’
Italy (0.5%)
4,140,769 Intesa Sanpaolo SpA
199,565
521,046
768,888
1,451,087
335,256
149,297
402,092
405,858
406,813
1,045,073
511,894
207,518
451,726
396,013
211,104
421,096
547,464
105,840
786,734
570,802
3M Company
AbbVie Inc.
Altria Group Inc.
AT&T Inc.
Bristol-Myers Squibb Company
Broadcom Limited
Chubb Limited
Honeywell International Inc.
JPMorgan Chase & Company
Mondelez International Inc. ‘A’
National Retail Properties Inc.
Northrop Grumman Corporation
Omnicom Group Inc.
Philip Morris International Inc.
Tanger Factory Outlet
Centers Inc.
The Kraft Heinz Company
The TJX Companies Inc.
Visa Inc. ‘A’
Waste Management Inc.
Western Digital Corporation
2,912,632 Astellas Pharma Inc.
637,913 Japan Tobacco Inc.
918,183 Nippon Telegraph and
Telephone Corporation
905,755 Park24 Company Limited
Netherlands (0.5%)
748,244 ING Groep NV
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (92.0%)
Japan (8.3%)
30,222,258
44,219,906
22,787,145
18,497,263
46,931,773
162,658,345
40,925,448
36,441,045
22,441,191
10,443,975
46,817,155
157,068,814
33,625,487
38,433,957
37,930,126
57,056,612
19,746,624
23,677,359
45,065,467
43,746,978
27,102,296
46,490,151
21,480,033
29,291,104
37,451,267
38,632,747
46,140,415
43,113,788
63,782,795
77,311,433
23,716,125
33,791,527
66,283,466
62,080,141
35,540,303
60,190,567
34,149,809
58,248,581
50,374,564
50,510,579
11,226,371
37,942,138
42,225,932
11,167,858
45,702,191
53,205,250
701,199,948
10,790,279
49,450,417
53,710,391
11,483,456
65,810,245
43,786,060
940,264,941
United States (41.6%)
Israel (0.8%)
293,402 Teva Pharmaceutical Industries
Limited ADR
Fair
Value ($)
United Kingdom (7.0%)
Hong Kong (1.0%)
1,447,953 VTech Holdings Limited
Average
Cost ($)
(2,977,679)
–
1,727,225,301 2,078,302,537
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
September 30, 2016 of AGF Global Dividend Fund (the “Fund”).
Singapore (0.4%)
2,171,715 Singapore Press
Holdings Limited
South Korea (3.1%)
19,028 Samsung Electronics
Company Limited
729,682 Shinhan Financial Group
Company Limited
Spain (1.0%)
4,008,167 Banco Santander SA
Switzerland (5.8%)
583,256 Nestle SA
162,387 Roche Holding AG
93,588 Sonova Holding AG
Thailand (2.6%)
4,488,487 KASIKORNBANK PUBLIC
COMPANY LIMITED NVDR
5,794,213 Thai Oil Public Company
Limited NVDR
586,000 The Siam Cement Public
Company Limited NVDR
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
295
AGF Global Dividend Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
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
September 30, 2015
(%)
United States
France
Japan
United Kingdom
Switzerland
Germany
South Korea
China
Czech Republic
Belgium
Hong Kong
Singapore
Austria
Australia
New Zealand
Canada
Brazil
Norway
Thailand
48.3
7.5
7.0
6.9
3.2
3.0
2.7
2.5
1.8
1.7
1.1
1.1
0.8
0.8
0.7
0.6
0.4
0.3
0.3
Portfolio by Sector
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
September 30, 2015
(%)
Financials
Consumer Staples
Industrials
Health Care
Energy
Consumer Discretionary
Telecommunication Services
Information Technology
Materials
ETFs – International Equity
24.0
16.1
13.3
7.9
7.7
7.2
6.6
5.3
1.5
1.1
Portfolio by Asset Mix
September 30, 2016
(%)
International Equity
United States Equity
Canadian Equity
48.6
41.6
1.8
September 30, 2015
(%)
United States Equity
International Equity
Canadian Equity
48.3
41.8
0.6
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016, 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, 2015 are
included in the following table:
September 30, 2015
Global X MSCI Norway ETF
iShares MSCI Australia ETF
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
6,514
14,631
7.9
0.9
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, the Fund had no significant
investments in debt instruments and derivatives. Accordingly, the
Fund was not subject to significant credit risk.
296
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Interest Rate Risk
The majority of the Fund’s financial assets and liabilities are noninterest bearing, accordingly, the Fund is not subject to significant
amounts of risk due to fluctuations in the prevailing levels of market
interest rates.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The impact on Net Assets of the Fund due to a 55 percent change in
benchmarks (September 30, 2015 – 75 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmarks, as at September 30, 2016 and
2015, with all other variables held constant, is included in the following
table. Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used. The returns of the other series of the
Fund are substantially similar to that of the Mutual Fund Units, save for
differences in expense structure.
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
Swiss Franc
South Korean Won
Hong Kong Dollar
Thai Baht
Czech Koruna
Singapore Dollar
MSCI World Index
MSCI All Country World Index
September 30,
2016
September 30,
2015
997,325
1,016,378
1,298,648
1,335,223
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 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.
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
September 30, 2015
Impact on Net Assets ($’000)
Benchmark
Foreign
Exchange
Financial Forward
Instruments Contracts
($’000)
United States Dollar
Euro Currency
Pound Sterling
Japanese Yen
Hong Kong Dollar
Swiss Franc
South Korean Won
Czech Koruna
Singapore Dollar
New Zealand Dollar
Brazilian Real
Thai Baht
Foreign
Exchange
Financial Forward
Instruments Contracts
999,068
299,828
150,371
143,851
73,283
61,225
51,152
35,384
22,429
13,085
7,797
6,174
–
–
–
–
–
–
–
–
–
–
–
–
Total**
Percentage of
Net Assets (%)
999,068
299,828
150,371
143,851
73,283
61,225
51,152
35,384
22,429
13,085
7,797
6,174
52.2
15.7
7.8
7.5
3.8
3.2
2.7
1.8
1.2
0.7
0.4
0.3
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $44,862,000 (September 30,
2015 – $37,273,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
297
AGF Global Dividend Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
2,078,303
–
–
–
2,078,303
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
2,078,303
–
–
–
2,078,303
–
–
Level 1
Level 2
Level 3
Total
1,737,582
–
–
–
1,737,582
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,737,582
–
–
–
1,737,582
–
–
September 30, 2015
($’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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
298
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Global Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
835,056
–
6,154
–
107
–
–
–
1,898
543
843,758
518,094
–
5,531
–
423
1,166
–
–
1,208
156
526,578
$
$
–
–
–
–
176
924
1,011
88
1,100
–
–
3,299
840,459
706,267
$
$
–
–
–
–
62
188
371
283
–
–
–
904
525,674
441,919
$
$
$
$
$
$
$
$
$
458,527
–
16,175
7,661
1,302
356,654
–
–
140
$
$
$
$
$
$
$
$
$
146,768
–
4,926
6,176
246
367,557
–
–
1
$
$
$
$
$
$
$
$
$
32.34
–
38.16
34.85
10.97
34.08
–
–
11.02
$
$
$
$
$
$
$
$
$
29.41
–
34.39
31.36
9.74
30.67
–
–
9.91
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.
ANNUAL REPORT 2016
299
AGF Global Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
300
STATEMENTS OF CASH FLOWS
2016
$
$
17,834
13
13,156
2015
$
11,941
10
16,436
52,614
83,617
–
11,805
40,192
–
–
–
95
–
–
101
(433)
83,279
(157)
40,136
9,181
5,716
813
62
12
74
–
31
22
2
1,166
2,019
403
27
11
75
–
23
4
2
711
1,397
192
13,574
304
8,673
(4,376)
9,198
(2,989)
5,684
74,081
$
34,452
$
$
$
$
$
$
$
$
$
28,832
–
1,166
842
84
43,152
–
–
5
$
$
$
$
$
$
$
$
$
13,727
–
196
759
(3)
19,773
–
–
(0)
$
$
$
$
$
$
$
$
$
3.42
–
4.47
4.00
1.28
3.82
–
–
0.96
$
$
$
$
$
$
$
$
$
2.56
–
1.71
4.08
(1.26)
2.40
–
–
(0.09)
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
74,081
ANNUAL REPORT 2016
$
34,452
(12)
(221)
(13,156)
(16,436)
(52,614)
(48,690)
(11,805)
(202,130)
119,701
–
–
86,473
–
–
(690)
(291)
–
(387)
–
(29)
114
736
79,083
(2)
(32)
(110,021)
(199)
60,727
(1)
215,798
(139,000)
(78,472)
(102,861)
112,936
$
$
12
221
611
5,531
6,154
2,915
2,395
5,531
$
$
4,917
1,237
6,154
$
3,127
2,404
5,531
$
$
14
15,137
$
$
9
10,221
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
2015
$
AGF Global Equity Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
2016
146,768
–
4,926
6,176
246
367,557
–
–
1
525,674
28,832
–
1,166
842
84
43,152
–
–
5
74,081
2015
$
150,912
–
3,438
2,147
–
221,403
–
–
–
For the periods ended September 30,
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
2016
$
377,900
13,727
–
196
759
(3)
19,773
–
–
(0)
34,452
334,585
–
12,200
2,006
984
33,019
–
–
245
383,039
13,528
–
2,723
4,636
249
195,878
–
–
1
217,015
172
–
26
103
1
5,916
–
–
–
6,218
164
–
2
103
–
3,784
–
–
–
4,053
(51,658)
–
(2,113)
(1,363)
(12)
(87,074)
–
–
(111)
(142,331)
(31,246)
–
(1,431)
(1,366)
–
(69,497)
–
–
–
(103,540)
246,926
117,528
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.
ANNUAL REPORT 2016
(172)
–
(30)
(103)
(1)
(5,916)
–
–
–
(6,222)
2015
$
(317)
–
(2)
(103)
–
(3,784)
–
–
–
(4,206)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
314,785
147,774
458,527
–
16,175
7,661
1,302
356,654
–
–
140
146,768
–
4,926
6,176
246
367,557
–
–
1
840,459
$
525,674
301
AGF Global Equity Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares/
Units
Australia (1.3%)
912,261 Brambles Limited
Austria (0.9%)
164,124 Voestalpine AG
Belgium (2.4%)
116,387 Anheuser-Busch InBev SA/NV
Average
Cost ($)
Fair
Value ($)
9,093,575
10,973,720
7,575,771
7,450,019
15,116,963
20,000,350
792,236
470,956
365,184
1,628,376
907,761
454,684
203,634
1,566,079
6,956,576
5,540,120
12,496,696
7,176,442
4,990,889
12,167,331
9,768,225
13,536,925
23,305,150
9,193,112
15,791,079
24,984,191
9,594,561
8,384,167
361,819
7,068,870
7,627,802
6,476,872
21,535,363
468,515
6,502,952
8,245,864
6,361,196
21,578,527
16,638,796
13,046,878
12,191,362
41,877,036
20,412,567
17,672,900
11,941,821
50,027,288
5,918,905
6,888,513
7,460,547
6,806,270
3,727,449
3,121,310
19,246,492
5,595,661
25,490,147
5,487,689
8,370,791
12,612,805
19,061,479
9,131,483
14,429,657
30,456,687
15,589,659
80,476,887
22,297,151
107,292,814
10,233,255
8,679,786
18,913,041
10,696,021
9,859,886
20,555,907
1,633,399
5,661,731
7,295,130
148,373
5,355,347
5,503,720
4,878,952
3,879,154
173,693
184,355
2,088,232
7,140,877
2,101,780
6,165,289
4,127,245
4,585,352
Brazil (0.2%)
165,823 Petroleo Brasileiro SA –
Petrobras Preferred
63,013 Vale SA ADR
32,778 Vale SA Preferred ‘A’
Canada (1.4%)
60,316 Agrium Inc.
230,277 Goldcorp Inc.
China (3.0%)
5,649,765 CNOOC Limited
248,172 iShares MSCI China ETF
Czech Republic (1.0%)
184,689 Komercni Banka AS
France (2.6%)
3,858
96,404
90,155
102,353
Arkema SA
BNP Paribas SA
Schneider Electric SE
TOTAL SA
Germany (5.9%)
145,274 Hannover Rueck SE
115,748 Henkel AG & Company KGaA
346,492 iShares MSCI Germany ETF
Hong Kong (0.8%)
790,023 AIA Group Limited
No. of Shares
Italy (0.4%)
1,072,890 Intesa Sanpaolo SpA
Japan (12.8%)
1,252,125 Astellas Pharma Inc.
145,087 Canon Inc.
189,834 FUJIFILM Holdings
Corporation
877,084 iShares MSCI Japan ETF
32,046 Keyence Corporation
373,520 Nippon Telegraph and
Telephone Corporation
Netherlands (2.4%)
660,374 ING Groep NV
299,898 iShares MSCI Netherlands ETF
Norway (0.7%)
81,454 Fred. Olsen Energy ASA
366,425 Global X MSCI Norway ETF
Singapore (0.7%)
748,083 Keppel Corporation Limited
171,863 Keppel Real Estate
Investment Trust
573,408 Singapore Press
Holdings Limited
109,926 Kia Motors Corporation
2,991 Samsung Electronics
Company Limited
28,949 Samsung Electronics Company
Limited GDR
302
6,045,241
5,519,376
4,041,609
5,693,576
18,857,444
33,071,539
27,440,290
43,238,594
7,505,308
5,512,432
16,970,663
18,451,696
1,467,147
1,297,429
14,497,500
1,427,658
7,101,506
5,344,750
4,115,413
32,486,827
18,841,051
1,004,836
7,207,610
5,094,620
5,857,931
38,006,048
10,370,053
13,531,782
19,474,156
6,201,963
9,041,647
26,424,290
14,859,823
2,598,305
26,053,773
11,068,509
14,448,322
26,393,582
7,559,230
8,733,674
33,632,976
16,243,046
2,197,637
33,582,117
3,489,914
4,832,516
7,625,126
9,689,258
18,993,789
5,151,962
9,518,449
10,169,485
21,147,659
15,316,935
17,292,033
24,716,093
8,435,330
10,512,204
23,002,612
5,637,668
9,926,310
12,536,502
28,955,955
21,461,688
21,425,856
30,248,338
11,789,545
7,064,971
6,386,673
14,118,887
18,696,247
8,942,788
3,422,518
342,088,124
15,914,238
8,486,622
6,785,503
16,364,892
25,077,831
7,866,275
3,755,016
415,084,449
Spain (0.7%)
South Korea (5.1%)
60,125 iShares MSCI South Korea
Capped ETF
Fair
Value ($)
South Korea (continued)
947,636 Banco Santander SA
Switzerland (2.2%)
56,695 Roche Holding AG
Thailand (0.2%)
423,043 PTT Exploration and Production
Public Company
Limited (Foreign)
United Kingdom (4.5%)
224,744
1,083,254
233,531
150,025
466,786
British American Tobacco PLC
Lloyds Banking Group PLC
Persimmon PLC
Royal Dutch Shell PLC ‘B’
The Sage Group PLC
United States (49.4%)
133,767
223,294
318,169
141,882
123,461
204,026
141,852
143,048
219,548
24,009
40,476
256,241
263,300
91,468
170,292
217,668
203,832
76,460
192,133
237,153
88,788
Israel (0.8%)
112,756 Teva Pharmaceutical Industries
Limited ADR
Average
Cost ($)
72,268
168,307
353,263
299,795
102,546
216,995
AbbVie 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.
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 (99.4%)
(478,870)
706,267,065
–
835,056,143
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
September 30, 2016 of AGF Global Equity Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
AGF Global Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
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 September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
Portfolio by Sector
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
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
September 30, 2015
(%)
Financials
Industrials
Consumer Staples
Information Technology
Health Care
Energy
ETFs – International Equity
Consumer Discretionary
Telecommunication Services
Materials
25.4
14.9
14.8
10.4
8.9
7.6
6.3
4.5
3.2
2.6
September 30, 2015
(%)
United States
Japan
Germany
South Korea
United Kingdom
France
China
Netherlands
Switzerland
Belgium
Australia
Canada
Austria
Singapore
Hong Kong
Spain
Israel
Norway
Italy
Thailand
Brazil
48.5
12.8
5.1
5.1
4.8
3.6
2.9
2.8
2.6
2.1
1.2
1.1
1.0
0.9
0.9
0.9
0.8
0.7
0.6
0.1
0.1
Portfolio by Asset Mix
September 30, 2016
(%)
United States Equity
International Equity
Canadian Equity
49.4
48.6
1.4
September 30, 2015
(%)
International Equity
United States Equity
Canadian Equity
49.0
48.5
1.1
Interest in Unconsolidated Structured Entities (Note 2)
The Fund’s investment details in the exchange traded funds as at
September 30, 2016 and 2015 are included in the following tables:
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
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
9,860
5,355
15,791
11,942
4,585
14,430
4.0
3.6
0.6
0.2
0.1
0.1
303
AGF Global Equity Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION CONTINUED
September 30, 2015
Global X MSCI Norway ETF
iShares MSCI Netherlands ETF
iShares MSCI China ETF
iShares MSCI France ETF
iShares MSCI Japan ETF
Fair Value of
Fund’s
Investment
($’000)
% of ETF’s
Net Assets
3,380
6,367
9,845
1,300
12,030
4.1
2.9
0.4
0.3
0.0
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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 50 percent change in
benchmark (September 30, 2015 – 70 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at September 30, 2016 and 2015,
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 ($’000)
Benchmark
MSCI All Country World Index
September 30,
2016
September 30,
2015
401,784
363,435
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
payable for cash collateral under securities lending and payable for
304
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
September 30, 2016
($’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**
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
–
–
–
–
–
–
–
–
–
–
–
–
–
Percentage of
Net Assets (%)
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
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
Percentage of
Net Assets (%)
September 30, 2015
($’000)
United States Dollar
Euro Currency
Japanese Yen
Pound Sterling
South Korean Won
Swiss Franc
Hong Kong Dollar
Australian Dollar
Singapore Dollar
Thai Baht
Brazilian Real
Norwegian Krone
310,231
77,967
55,996
25,487
14,339
13,600
10,229
6,742
5,087
688
440
416
–
–
–
–
–
–
–
–
–
–
–
–
310,231
77,967
55,996
25,487
14,339
13,600
10,229
6,742
5,087
688
440
416
59.0
14.8
10.7
4.8
2.7
2.6
1.9
1.3
1.0
0.1
0.1
0.1
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $16,799,000 (September 30,
2015 – $10,424,000).
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
833,759
–
–
–
833,759
–
–
1,297
–
–
–
1,297
–
–
–
–
–
–
–
–
–
835,056
–
–
–
835,056
–
–
($’000)
Level 1
Level 2
Level 3
Total
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
517,406
–
–
–
517,406
–
–
688
–
–
–
688
–
–
–
–
–
–
–
–
–
518,094
–
–
–
518,094
–
–
September 30, 2015
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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.
ANNUAL REPORT 2016
305
AGF Global Resources Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
306
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
6,820
–
365
–
25
–
–
–
7
–
7,217
1,534
–
452
–
18
–
–
–
4
1
2,009
$
$
–
–
–
–
–
1
40
–
–
–
–
41
7,176
6,175
$
$
–
–
–
–
–
–
–
–
–
–
–
–
2,009
1,998
$
$
$
$
$
$
$
$
$
–
–
–
–
–
7,176
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
2,009
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
9.02
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
7.31
–
–
–
AGF Global Resources Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
97
3
(673)
2015
$
1,109
536
–
(624)
(1,230)
–
–
–
2
–
–
0
(6)
532
$
48
1
(655)
(2)
(1,232)
49
24
67
20
12
4
–
20
–
2
19
10
36
18
11
6
–
3
–
2
12
5
26
229
34
151
(193)
36
(113)
38
496
$
(1,270)
$
$
$
$
$
$
$
$
$
–
–
–
–
–
496
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
(1,270)
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
0.81
–
–
–
$
$
$
$
$
$
$
$
$
–
–
–
–
–
(4.92)
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
$
$
496
2015
$
–
(1,270)
(21)
673
655
(1,109)
(8,368)
624
(8,390)
3,518
–
–
7,156
–
–
(3)
(3)
–
1
–
(1)
–
1
(4,791)
–
–
(1,250)
–
8,132
(3,428)
4,704
–
9,524
(7,907)
1,617
–
21
(87)
452
365
367
64
452
$
$
87
278
365
$
$
75
377
452
$
$
3
84
$
$
1
39
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
307
AGF Global Resources Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
308
2016
–
–
–
–
–
2,009
–
–
–
2,009
–
–
–
–
–
496
–
–
–
496
$
2015
For the periods ended September 30,
–
–
–
–
–
1,646
–
–
–
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
2016
$
1,646
–
–
–
–
–
(1,270)
–
–
–
(1,270)
–
–
–
–
–
8,139
–
–
–
8,139
–
–
–
–
–
9,540
–
–
–
9,540
–
–
–
–
–
50
–
–
–
50
–
–
–
–
–
18
–
–
–
18
–
–
–
–
–
(3,468)
–
–
–
(3,468)
–
–
–
–
–
(7,907)
–
–
–
(7,907)
4,721
1,651
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.
ANNUAL REPORT 2016
–
–
–
–
–
(50)
–
–
–
(50)
2015
$
–
–
–
–
–
(18)
–
–
–
(18)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
5,167
363
–
–
–
–
–
7,176
–
–
–
–
–
–
–
–
2,009
–
–
–
7,176
$
2,009
AGF Global Resources Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares
Average
Cost ($)
Fair
Value ($)
145,560
51,581
89,432
71,940
74,079
185,067
78,542
106,548
69,652
48,483
127,367
21,890
114,263
73,537
75,584
58,505
150,858
20,057
118,535
64,643
79,861
81,780
32,687
98,414
40,044
37,055
135,058
38,089
94,529
71,986
36,361
82,967
40,247
94,870
32,796
40,080
140,190
45,492
97,566
58,939
41,665
109,343
11,360
207,687
1,667
139,368
11,481
34,728
73,297
3,303
307,925
1,899
159,517
5,536
33,094
62,069
182,372
130,062
6,068
246,521
108,281
40,549
73,371
2,837,740
297,578
206,970
8,190
247,328
120,784
49,721
78,035
3,287,163
27,053
41,510
208,922
203,913
73,078
80,380
96,643
106,649
39,883
69,412
76,050
321,260
506,605
39,516
78,432
71,403
331,622
520,973
100,290
122,594
111,542
86,558
79,302
175,931
166,281
124,071
85,910
111,264
106,903
144,388
119,768
107,888
112,820
201,214
155,121
134,140
104,675
121,569
Canada (45.8%)
20,116
1,107
4,490
12,664
4,325
3,597
25,071
6,295
2,265
15,477
5,965
3,706
4,382
6,319
51,384
5,061
7,857
2,300
10,658
8,028
16,175
6,232
18,494
71
14,825
5,323
3,570
11,368
9,423
5,840
2,423
6,791
7,181
1,399
7,120
No. of Shares
Average
Cost ($)
Fair
Value ($)
175,303
36,483
96,426
96,832
75,477
184,929
41,452
86,386
108,606
73,830
216,808
68,445
76,603
37,971
134,949
37,197
37,773
73,274
110,258
2,437,542
195,347
74,952
77,648
38,028
140,767
43,069
37,864
76,333
91,317
2,579,014
United States (continued)
Advantage Oil and Gas Limited
Agnico Eagle Mines Limited
ARC Resources Limited
Asanko Gold Inc.
Cameco Corporation
Canadian Natural
Resources Limited
Capstone Mining Corporation
Cenovus Energy Inc.
Detour Gold Corporation
Eldorado Gold Corporation
Encana Corporation
First Quantum
Minerals Limited
Goldcorp Inc.
HudBay Minerals Inc.
Ikkuma Resources Corporation
Inter Pipeline Limited
Kelt Exploration Limited
Keyera Corporation
Kinross Gold Corporation
Lundin Mining Corporation
NuVista Energy Limited
Oryx Petroleum
Corporation Limited
Parex Resources Inc.
PrairieSky Royalty Limited
Raging River Exploration Inc.
RMP Energy Inc.
Secure Energy Services Inc.
SEMAFO Inc.
Seven Generations
Energy Limited
Silver Wheaton Corporation
Spartan Energy Corporation
Suncor Energy Inc.
Tahoe Resources Inc.
Tourmaline Oil Corporation
Whitecap Resources Inc.
1,615
704
1,228
5,088
2,433
1,846
559
1,656
865
1,600
2,998
367
1,361
1,511
Exxon Mobil Corporation
Halliburton Company
Hess Corporation
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
Spectra Energy Corporation
US Concrete Inc.
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (95.0%)
(12,313)
6,175,270
–
6,819,602
ADR – American Depository Receipt
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF Global Resources Fund (the “Fund”).
Finland (0.6%)
4,606 Outokumpu Oyj
France (2.8%)
3,281 TOTAL SA
Russia (1.1%)
3,834 PJSC MMC Norilsk Nickel ADR
Switzerland (1.5%)
186 Syngenta AG
United Kingdom (7.3%)
1,999
21,741
1,631
10,189
BHP Billiton PLC
Glencore PLC
Rio Tinto PLC
Royal Dutch Shell PLC ‘A’
United States (35.9%)
542 Air Products and
Chemicals Inc.
1,737 Anadarko Petroleum Corporation
887 Chevron Corporation
612 Cimarex Energy Company
1,655 Continental Resources Inc.
3,477 Devon Energy Corporation
1,747 Eastman Chemical Company
840 Ecolab Inc.
825 EOG Resources Inc.
1,276 EQT Corporation
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
309
AGF Global Resources Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
Investment Objective
The Fund’s investment objective is to provide long-term capital
appreciation by investing primarily in equity securities of a diversified
group of companies engaged either directly or indirectly in the natural
resource sector.
Summary of Investment Portfolio
As at September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
September 30, 2016
(%)
Canada
United States
United Kingdom
France
Switzerland
Russia
Finland
45.8
35.9
7.3
2.8
1.5
1.1
0.6
September 30, 2015
(%)
Canada
United States
United Kingdom
France
Russia
Finland
Australia
33.3
31.6
6.8
2.6
1.6
0.5
0.0
Portfolio by Sector
September 30, 2016
(%)
Oil, Gas & Consumable Fuels
Metals & Mining
Chemicals
Energy Equipment & Services
Construction Materials
62.0
17.9
12.3
1.5
1.3
September 30, 2015
(%)
Oil, Gas & Consumable Fuels
Metals & Mining
Chemicals
Energy Equipment & Services
40.5
19.0
11.4
5.5
September 30, 2015
(%)
Canadian Equity
United States Equity
International Equity
33.3
31.6
11.5
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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.
As at September 30, 2016, the Fund did not hold any significant cash
and cash equivalents. As at September 30, 2015, 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 $1,000.
In practice, the actual trading results may differ from this sensitivity
analysis and the difference could be material.
Other Price Risk
The Schedule of Investment Portfolio of the Fund classifies securities by
geographic region.
The impact on Net Assets of the Fund due to a 55 percent change in
benchmarks (September 30, 2015 – 75 percent), using historical
correlation between the return of the Series S Units as compared to the
return of the Fund’s benchmarks, as at September 30, 2016 and 2015,
with all other variables held constant, is included in the following table.
Regression analysis has been utilized to estimate the historical
correlation. The analysis uses 36 monthly data points, unless the
inception of the Fund is less than three years, in which case since
inception data has been used.
Impact on Net Assets ($’000)
Benchmark
Portfolio by Asset Mix
September 30, 2016
(%)
Canadian Equity
United States Equity
International Equity
45.8
35.9
13.3
MSCI World Index
Blended Benchmark
September 30,
2016
September 30,
2015
1,053
4,633
291
1,828
The Blended Benchmark is composed of 60% MSCI World Energy Index
and 40% MSCI World Materials Index.
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
310
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
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 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 September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
($’000)
United States Dollar
Pound Sterling
Euro Currency
Swiss Franc
Australian Dollar
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
2,739
527
245
107
2
–
–
–
–
–
2,739
527
245
107
2
Percentage of
Net Assets (%)
38.2
7.3
3.4
1.5
0.0
United States Dollar
Pound Sterling
Euro Currency
Australian Dollar
Level 3
Total
–
–
–
–
–
–
–
–
–
–
–
–
–
–
6,820
–
–
–
6,820
–
–
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
1,534
–
–
–
1,534
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
1,534
–
–
–
1,534
–
–
There were no significant transfers between levels 1 and 2 during the
periods ended September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, the Fund did not
hold financial instruments within level 3 of the fair value hierarchy.
September 30, 2015
($’000)
Level 2
6,820
–
–
–
6,820
–
–
September 30, 2015
($’000)
September 30, 2016
Level 1
Foreign
Exchange
Financial
Forward
Instruments Contracts Total**
730
146
62
2
–
–
–
–
730
146
62
2
Percentage of
Net Assets (%)
36.3
7.3
3.1
0.1
** Includes both monetary and non-monetary instruments, as applicable
As at September 30, 2016 and 2015, 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 $72,000 (September 30, 2015 –
$19,000).
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 September 30, 2016 and
2015.
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
311
AGF Global Select Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
312
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
38,860
–
423
–
34
–
–
–
10
5
39,332
35,094
–
3,145
–
30
–
–
–
4
9
38,282
$
$
–
–
–
–
17
84
21
–
–
–
–
122
39,210
32,206
$
$
–
–
–
–
16
102
27
–
–
–
–
145
38,137
29,512
$
$
$
$
$
$
$
$
$
37,751
–
1,459
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
36,902
–
1,235
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
13.59
–
16.08
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
12.24
–
14.23
–
–
–
–
–
–
AGF Global Select Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
251
2
3,866
2015
$
1,072
5,191
–
$
298
1
9,177
(1,852)
7,624
–
–
–
6
–
–
0
61
5,258
361
7,985
873
894
205
24
12
9
–
21
1
2
114
33
184
22
12
7
–
18
–
2
112
32
80
1,374
61
1,344
(34)
1,340
(7)
1,337
3,918
$
6,648
$
$
$
$
$
$
$
$
$
3,761
–
157
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
6,480
–
168
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
1.28
–
1.67
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
2.02
–
2.09
–
–
–
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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
3,918
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
$
6,648
(4)
(382)
(3,866)
(9,177)
(1,072)
(38,237)
1,852
(33,295)
39,409
–
–
42,110
–
–
(6)
10
–
4
–
1
1
(18)
129
–
6
7,773
Cash Flows from Financing Activities
Distributions paid to holders of redeemable units,
net of reinvestments
Proceeds from redeemable units issued (Note 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
2015
$
$
–
4,515
(1)
4,061
(7,370)
(2,855)
(10,484)
(6,424)
4
382
(2,726)
3,145
423
1,349
1,414
3,145
$
$
252
171
423
$
$
3,124
21
3,145
$
$
2
213
$
$
1
277
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
313
AGF Global Select Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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
314
2016
36,902
–
1,235
–
–
–
–
–
–
38,137
2015
$
36,715
–
1,160
–
–
–
–
–
–
For the periods ended September 30,
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
2016
$
37,875
3,761
–
157
–
–
–
–
–
–
3,918
6,480
–
168
–
–
–
–
–
–
6,648
4,330
–
461
–
–
–
–
–
–
4,791
3,616
–
703
–
–
–
–
–
–
4,319
1
–
–
–
–
–
–
–
–
1
1
–
–
–
–
–
–
–
–
1
(7,242)
–
(394)
–
–
–
–
–
–
(7,636)
(9,909)
–
(796)
–
–
–
–
–
–
(10,705)
(2,844)
(6,385)
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.
ANNUAL REPORT 2016
–
–
–
–
–
–
–
–
–
–
2015
$
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(1)
–
–
–
–
–
–
–
–
(1)
(1)
–
–
–
–
–
–
–
–
(1)
1,073
262
37,751
–
1,459
–
–
–
–
–
–
36,902
–
1,235
–
–
–
–
–
–
39,210
$
38,137
AGF Global Select Fund (Note 1)
SCHEDULE OF INVESTMENT PORTFOLIO AS AT SEPTEMBER 30, 2016
No. of Shares
Average
Cost ($)
Fair
Value ($)
1,406,772
2,017,570
607,030
1,020,430
1,564,799
1,711,573
1,304,842
1,222,645
436,476
514,809
1,274,429
1,681,337
981,244
849,753
488,462
1,599,867
2,088,329
1,185,144
2,086,561
3,271,705
1,068,998
1,136,413
1,110,761
1,175,507
1,683,131
1,476,371
637,630
1,059,075
619,241
1,252,718
1,170,651
1,181,311
2,351,962
1,319,296
1,424,590
2,743,886
655,642
714,529
1,097,896
630,031
982,070
1,177,750
728,634
910,082
764,754
1,121,586
2,132,206
993,154
1,149,795
1,663,486
982,243
1,257,740
836,390
1,528,200
1,079,727
1,397,948
1,300,323
733,234
15,102,357
898,608
934,825
770,429
1,580,219
1,246,317
1,548,784
1,408,823
603,165
17,726,233
Argentina (5.1%)
8,314 MercadoLibre Inc.
Canada (2.6%)
18,122 Shopify Inc. ‘A’
China (4.4%)
12,332 Alibaba Group Holding
Limited ADR
Denmark (3.1%)
15,677 Chr. Hansen Holding AS
France (1.3%)
15,000 Talend SA ADR
Germany (4.3%)
7,384 adidas AG
Israel (2.2%)
15,215 Mobileye NV
Japan (8.3%)
26,629 M3 Inc.
47,890 Sony Corporation ADR
Netherlands (2.9%)
23,915 InterXion Holding NV
Norway (3.0%)
50,000 Marine Harvest ASA ADR
South Korea (3.8%)
88,469 LG Display Company
Limited ADR
Spain (2.7%)
21,776 Industria de Diseno Textil SA
Taiwan (3.2%)
18,437 Silicon Motion Technology
Corporation ADR
United Kingdom (7.0%)
16,000 ASOS PLC
34,000 Ted Baker PLC
United States (45.2%)
44,957
2,203
10,000
1,941
25,108
5,080
9,885
11,789
24,596
4,000
20,692
13,318
25,268
9,442
44,679
8x8 Inc.
Acuity Brands Inc.
Albemarle Corporation
Amazon.com Inc.
Applied Materials Inc.
Broadcom Limited
Facebook Inc. ‘A’
Fortune Brands Home &
Security Inc.
IMAX Corporation
Monster Beverage Corporation
Raymond James Financial Inc.
salesforce.com inc.
T-Mobile US Inc.
Vulcan Materials Company
WisdomTree Investments Inc.
Commissions and other portfolio
transaction costs (Note 2)
Total Portfolio (99.1%)
(32,496)
32,205,505
–
38,860,025
ADR – American Depository Receipt
Note: Percentages shown relate investments at fair value to total Net Assets
Attributable to Holders of Redeemable Units (“Net Assets”) as at
September 30, 2016 of AGF Global Select Fund (the “Fund”).
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
315
AGF Global Select Fund (Note 1)
NOTES TO FINANCIAL STATEMENTS — FUND SPECIFIC INFORMATION
Investment objective
The Fund’s investment objective is to provide superior capital growth by
investing primarily in shares of companies around the world with
superior growth potential.
Summary of Investment Portfolio
As at September 30, 2016 and 2015, the Fund’s major portfolio
categories, as a percentage of Net Assets, are included in the following
tables:
Portfolio by Country
September 30, 2016
(%)
United States
Japan
United Kingdom
Argentina
China
Germany
South Korea
Taiwan
Denmark
Norway
Netherlands
Spain
Canada
Israel
France
45.2
8.3
7.0
5.1
4.4
4.3
3.8
3.2
3.1
3.0
2.9
2.7
2.6
2.2
1.3
September 30, 2015
(%)
United States
Japan
Spain
United Kingdom
Netherlands
Denmark
Taiwan
South Korea
57.3
13.6
4.1
3.8
3.7
3.3
3.3
2.9
Portfolio by Sector
September 30, 2016
(%)
Information Technology
Consumer Discretionary
Materials
Financials
Consumer Staples
Industrials
Telecommunication Services
Health Care
40.7
27.1
9.6
5.6
5.0
4.2
3.9
3.0
September 30, 2015
(%)
Information Technology
Consumer Discretionary
Health Care
Financials
Telecommunication Services
Consumer Staples
35.5
34.3
12.1
5.3
3.5
1.3
316
Portfolio by Asset Mix
September 30, 2016
(%)
International Equity
United States Equity
Canadian Equity
51.3
45.2
2.6
September 30, 2015
(%)
United States Equity
International Equity
57.3
34.7
Interest in Unconsolidated Structured Entities (Note 2)
As at September 30, 2016 and 2015, the Fund had no investments in
underlying funds or exchange traded funds.
DISCUSSION OF FINANCIAL INSTRUMENT RISK MANAGEMENT (Note 4)
Credit Risk
As at September 30, 2016 and 2015, 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 50 percent change in
benchmark (September 30, 2015 – 70 percent), using historical
correlation between the return of the Mutual Fund Units as compared to
the return of the Fund’s benchmark, as at September 30, 2016 and 2015,
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 ($’000)
Benchmark
MSCI All Country World Index
September 30,
2016
September 30,
2015
22,990
31,531
The historical correlation may not be representative of the future
correlation, and accordingly the impact on Net Assets could be
materially different.
Currency Risk
The amounts in the following tables are based on the fair value of the
Fund’s financial instruments (including cash and cash equivalents) as
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
well as the underlying principal amounts of foreign exchange forward
contracts, as applicable. Other financial assets (including cash collateral
received for securities on loan, dividends and interest receivables and
receivables for investments sold) and financial liabilities (including
payable for cash collateral under securities lending and payable for
investments purchased) that are denominated in foreign currencies do
not expose the Fund to significant currency risk.
Currencies to which the Fund had exposure as at September 30,
2016 and 2015, were as follows:
September 30, 2016
($’000)
United States Dollar
Pound Sterling
Euro Currency
Danish Krone
Japanese Yen
Singapore Dollar
Australian Dollar
Norwegian Krone
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
31,206
2,749
2,746
1,223
1,185
1
1
1
–
–
–
–
–
–
–
–
31,206
2,749
2,746
1,223
1,185
1
1
1
79.6
7.0
7.0
3.1
3.0
0.0
0.0
0.0
September 30, 2015
($’000)
United States Dollar
Japanese Yen
Euro Currency
Pound Sterling
Danish Krone
Singapore Dollar
Australian Dollar
Foreign
Exchange
Financial Forward
Percentage of
Instruments Contracts Total** Net Assets (%)
29,893
4,030
1,582
1,461
1,249
1
1
–
–
–
–
–
–
–
29,893
4,030
1,582
1,461
1,249
1
1
78.4
10.6
4.1
3.8
3.3
0.0
0.0
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (Note 4)
The following tables illustrate the classifications of the Fund’s financial
instruments within the fair value hierarchy as at September 30, 2016 and
2015.
September 30, 2016
($’000)
Equities
Debt Instruments
Short-Term Investments
Investments in Underlying Funds
Total Investments
Derivative Assets
Derivative Liabilities
Level 1
Level 2
Level 3
Total
38,860
–
–
–
38,860
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
38,860
–
–
–
38,860
–
–
Level 1
Level 2
Level 3
Total
35,094
–
–
–
35,094
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
35,094
–
–
–
35,094
–
–
September 30, 2015
($’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 September 30, 2016 and 2015.
Reconciliation of Level 3 Fair Value Measurement (Note 4)
For the periods ended September 30, 2016 and 2015, 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 September 30, 2016 and 2015, 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 $782,000 (September 30,
2015 – $764,000).
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.
ANNUAL REPORT 2016
317
AGF Global Sustainable Growth Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF FINANCIAL POSITION
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 9)
Receivable for units issued
Receivable for investments sold
Receivable for foreign exchange forward contracts
Receivable from Manager (Note 7(b))
Dividends and interest receivable
Tax reclaims receivable
September 30,
2016
September 30,
2015
$
$
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 9)
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
318
Adrian Basaraba, Director
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
46,646
–
1,697
–
15
173
–
–
53
23
48,607
42,220
–
1,620
–
52
134
–
–
46
11
44,083
$
$
–
–
–
–
16
92
59
9
215
–
–
391
48,216
37,947
$
$
–
–
–
–
20
83
75
13
83
–
–
274
43,809
37,807
$
$
$
$
$
$
$
$
$
46,246
–
1,970
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
42,728
–
1,081
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
18.69
–
19.77
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
16.57
–
17.33
–
–
–
–
–
–
AGF Global Sustainable Growth Equity Fund (Note 1)
THOUSANDS OF DOLLARS EXCEPT PER UNIT AMOUNTS
STATEMENTS OF COMPREHENSIVE INCOME
For the periods ended September 30,
Income
Dividends
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 9)
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
STATEMENTS OF CASH FLOWS
2016
$
$
654
8
2,121
2015
$
585
1
5,619
4,286
7,069
–
(2,666)
3,539
(924)
–
–
10
207
(717)
1
(31)
7,048
(26)
2,797
997
1,144
158
23
12
8
–
22
–
2
118
95
142
21
11
7
–
19
–
2
127
66
46
1,481
97
1,636
(10)
1,471
(4)
1,632
5,577
$
1,165
$
$
$
$
$
$
$
$
$
5,352
–
193
32
–
–
–
–
–
$
$
$
$
$
$
$
$
$
1,136
–
29
–
–
–
–
–
–
$
$
$
$
$
$
$
$
$
2.11
–
2.53
0.09
–
–
–
–
–
$
$
$
$
$
$
$
$
$
0.41
–
0.45
–
–
–
–
–
–
For the periods ended September 30,
2016
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 reinvested
(Increase) decrease in receivable from Manager
(Increase) decrease in dividends 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 10)
Amounts paid on redemption of redeemable units
(Note 10)
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
Cash and cash equivalents comprise:
Cash (overdraft) at bank
Short-term deposits
Interest received, net of withholding tax *
Dividends received, net of withholding tax *
5,577
2015
$
4
1,165
52
(2,121)
(4,695)
(4,286)
(19,063)
2,459
(33,351)
21,137
–
–
40,367
–
–
(7)
20
–
(12)
–
(6)
(4)
9
1,234
(2)
(2)
6,007
–
13,175
1
4,940
(14,328)
(1,153)
(10,072)
(5,131)
(4)
(52)
$
$
81
1,620
1,697
$
$
876
796
1,620
$
442
1,255
1,697
$
40
1,580
1,620
$
$
8
552
$
$
1
533
* Included as part of Cash Flows from Operating Activities
The accompanying notes are an integral part of these financial statements.
ANNUAL REPORT 2016
319
AGF Global Sustainable Growth Equity Fund (Note 1)
THOUSANDS OF DOLLARS
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS
For the periods ended September 30,
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 Unit