mise en page 1 - nbc
TRANSCRIPT
Mise en page 1Interim Financial Statements — For the period ended
June 30, 2017
NBI Funds
Interim Financial Statements — For the period ended June 30, 2017
Table of Contents
Money Market Funds NBI Money Market Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
(formerly National Bank Money Market Fund)
Short Term and Income Funds NBI Short Term Canadian Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
(formerly National Bank Short Term Canadian Income Fund) NBI Floating Rate Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
(formerly National Bank Floating Rate Income Fund) NBI Tactical Mortgage & Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 NBI Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
(formerly National Bank Bond Fund) NBI Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
(formerly National Bank Income Fund) NBI Dividend Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
(formerly National Bank Dividend Fund) NBI Global Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
(formerly National Bank Global Bond Fund) NBI Global Tactical Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
(formerly National Bank Global Tactical Bond Fund) NBI Unconstrained Fixed Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 NBI Corporate Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
(formerly National Bank Corporate Bond Fund) NBI High Yield Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
(formerly National Bank High Yield Bond Fund) NBI Preferred Equity Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
(formerly National Bank Preferred Equity Income Fund) NBI Preferred Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
(formerly National Bank Preferred Equity Fund) NBI Jarislowsky Fraser Select Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
(formerly Jarislowsky Fraser Select Income Fund)
Diversified Funds National Bank Secure Diversified Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 National Bank Conservative Diversified Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 National Bank Moderate Diversified Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 National Bank Balanced Diversified Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 National Bank Growth Diversified Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 NBI Jarislowsky Fraser Select Balanced Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
(formerly Jarislowsky Fraser Select Balanced Fund) NBI Strategic U.S. Income and Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
(formerly National Bank Strategic U.S. Income and Growth Fund)
Canadian Equity Funds NBI Jarislowsky Fraser Select Canadian Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 160
(formerly Jarislowsky Fraser Select Canadian Equity Fund) NBI SmartBeta Canadian Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 NBI Canadian Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
(formerly National Bank Canadian Equity Fund) NBI Canadian All Cap Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
(formerly National Bank Canadian All Cap Equity Fund) NBI Canadian Equity Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
(formerly National Bank Canadian Equity Growth Fund) NBI Small Cap Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
(formerly National Bank Small Cap Fund) NBI Quebec Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
(formerly National Bank Quebec Growth Fund
Global Equity Funds NBI SmartBeta Global Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 NBI Global Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
(formerly National Bank Global Equity Fund)
National Bank Global Diversified Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 NBI Global Real Assets Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 NBI U.S. Dividend Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
(formerly National Bank U.S. Dividend Fund) NBI SmartData U.S. Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
(formerly National Bank Consensus American Equity Fund) NBI U.S. Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
(formerly National Bank U.S. Equity Fund) NBI SmartData International Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
(formerly National Bank Consensus International Equity Fund) NBI Westwood Emerging Markets Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251
(formerly Westwood Emerging Markets Fund)
Specialized Funds NBI Resource Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
(formerly National Bank Resource Fund) NBI Precious Metals Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
(formerly National Bank Precious Metals Fund) NBI Science and Technology Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266
(formerly National Bank Science and Technology Fund)
Index Funds NBI Canadian Index Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
(formerly National Bank Canadian Index Fund) NBI U.S. Index Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
(formerly National Bank U.S. Index Fund) NBI U.S. Currency Neutral Index Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
(formerly National Bank U.S. Currency Neutral Index Fund) NBI International Index Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
(formerly National Bank International Index Fund) NBI International Currency Neutral Index Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
(formerly National Bank International Currency Neutral Index Fund)
Fixed Income Private Portfolios NBI Canadian Short Term Income Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 NBI Municipal Bond Plus Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 NBI Canadian Bond Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 NBI Canadian Diversified Bond Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 NBI U.S. Bond Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327 NBI Corporate Bond Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332 NBI Non-Traditional Fixed Income Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . 339 NBI High Yield Bond Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344 NBI Canadian Preferred Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352
Balanced Private Portfolio NBI Multiple Asset Class Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359
Canadian Equity Private Portfolios NBI Equity Income Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364 NBI Canadian Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369 NBI Canadian High Conviction Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . 374 NBI Canadian Small Cap Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379
Global Equity Private Portfolios NBI North American Dividend Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384 NBI U.S. Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389 NBI U.S. High Conviction Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394 NBI International Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 NBI International High Conviction Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . 406 NBI Non-Traditional Capital Appreciation Private Portfolio . . . . . . . . . . . . . . . . . . . . . 412 NBI Emerging Markets Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417 NBI Real Assets Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428
USD: American Dollar AUD: Australian Dollar CHF: Swiss Franc
DKK: Danish Krone EUR: Euro GBP: Pound Sterling
HKD: Hong Kong Dollar JPY: Japanese Yen NOK: Norwegian Krone
SEK: Swedish Krona SGD: Singapore Dollar
Schedule of Investment This section is for investors who may want to have a detailed list of the specific securities that make up the portfolios. For each security, you will find information such as its average cost and its fair value as at June 30, 2017. Income securities denominated in currencies other than the Canadian Dollar are presented using the following abbreviations:
Financial Statements This section contains four financial statements, each of which has a specific role and contains different information:
• The Statement Interim of Financial Position presents all the items that make up the fund’s net assets as at June 30. The main item is the “Investments” section, which reflects the overall value of the securities portfolio.
• The Statement Interim of Comprehensive Income breaks down the overall income and expenses generated by the fund during the period. • The Statement Interim of Changes in Net Assets Attributable to Holders of Redeemable Units/Shares per Series reconciles the changes in net assets
per Series during the period, listing the unit purchases and redemptions carried out by investors, as well as distributions. • The Statement Interim of Cash Flows reconciles the change in cash during the period detailing cash inflows and outflows by operating, investing and
financing activities.
Finally, the notes to the financial statements provide additional information. For example, they outline the main accounting policies used in the preparation of the financial statements.
Unaudited Interim Financial Statements The accompanying interim financial statements have not been reviewed by the independent auditors of the Funds. The independent auditors will be auditing the annual financial statements of the Funds in accordance with Canadian generally accepted auditing standards.
2
Financial Statements
The accompanying notes are an integral part of these financial statements.
NBI Money Market Fund (formerly National Bank Money Market Fund)
Statements Interim of Financial Position (Unaudited) (in thousands canadian dollars, except per unit amounts)
June 30, December 31, Note 2017 2016 ————————————— ————————————— $ $
Assets
Current assets Investments 5 223,597 250,669 Cash 62 43 Subscriptions receivable 16 114 Interest receivable 181 233 Other assets receivable 18 219 ————————————— ————————————— Total assets 223,874 251,278 ————————————— —————————————
Liabilities
Current liabilities Redeemed units payable 293 291 Accrued expenses 106 115 ————————————— ————————————— Total liabilities (excluding net assets attributable to holders of redeemable units) 399 406 ————————————— —————————————
————————————— ————————————— ————————————— —————————————
Net assets attributable to holders of redeemable units per unit, per series 2 Investor/Advisor Series 10.00 10.00 Series F 10.00 10.00 Institutional Series - 10.00 Series M - 10.00 Series O 10.00 10.00
Approved on the behalf of the board of directors of National Bank Investments Inc. Jonathan Durocher President, Chief Executive Officer and Chairman of the Board Tina Tremblay-Girard Director
Statements Interim of Comprehensive Income for the 6-Month Periods Ended June 30 (Unaudited) (in thousands canadian dollars, except per unit amounts)
Note 2017 2016 ————————————— ————————————— $ $
Expenses 8
Management fees 587 647 Directors’ fees of independent review committee 1 1 Fixed-administration fees 74 81 Fees paid by the manager (109) (110) ————————————— ————————————— Total expenses 553 619 ————————————— —————————————
Increase (decrease) in net assets attributable to holders of redeemable units 555 578 ————————————— ————————————— ————————————— —————————————
Increase (decrease) in net assets attributable to holders of redeemable units per series 2 Investor/Advisor Series 102 81 Series F 3 1 Institutional Series 8 9 Series M 3 4 Series O 439 483 ————————————— ————————————— 555 578 ————————————— ————————————— ————————————— —————————————
Increase (decrease) in net assets attributable to holders of redeemable units per unit, per series 2 Investor/Advisor Series 0.01 0.01 Series F 0.01 0.01 Institutional Series 0.02 0.02 Series M 0.03 0.03 Series O 0.05 0.04
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Financial Statements
The accompanying notes are an integral part of these financial statements.
NBI Money Market Fund (continued) (formerly National Bank Money Market Fund)
Statements Interim of Changes in Net Assets Attributable to Holders of Redeemable Units per Series for the 6-Month Periods Ended June 30 (Unaudited) (in thousands canadian dollars) Investor/Advisor Series Series F Institutional Series Series M Series O
————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— $ $ $ $ $ $ $ $ $ $
————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
Redeemable units transactions 6 Proceeds from redeemable units issued 22,285 17,893 6,794 886 853 413 - 2,066 55,981 177,351 Reinvestments of distributions to holders
of redeemable units 102 81 3 1 8 9 3 4 438 483 Redemption of redeemable units (27,743) (31,037) (6,786) (904) (5,770) (924) (1,514) (1,560) (72,050) (226,443) ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— Total redeemable units transactions (5,356) (13,063) 11 (17) (4,909) (502) (1,511) 510 (15,631) (48,609) ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
Distributions to investors 2 Net investment income 102 81 3 1 8 9 3 4 439 483 ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
Redeemable units transaction Redeemable units outstanding, beginning of the period 13,488,013 15,397,886 103,692 109,720 490,947 461,182 151,057 100,215 10,853,432 11,237,133 Redeemable units issued 2,228,529 1,789,421 679,362 88,583 85,331 41,367 - 206,512 5,598,000 17,734,999 Redeemable units issued on reinvestments 10,203 8,078 291 146 765 870 347 442 43,808 48,344 Redeemable units redeemed (2,774,323) (3,103,719) (678,577) (90,146) (577,043) (92,388) (151,404) (155,970) (7,205,000) (22,644,280) ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— Redeemable units outstanding, end of the period 12,952,422 14,091,666 104,768 108,303 - 411,031 - 151,199 9,290,240 6,376,196 ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
4
Financial Statements
The accompanying notes are an integral part of these financial statements.
NBI Money Market Fund (continued) (formerly National Bank Money Market Fund)
Statements Interim of Cash Flows for the 6-Month Periods Ended June 30 (Unaudited) (in thousands canadian dollars)
Note 2017 2016 ————————————— ————————————— $ $ Cash flows from operating activities Increase (decrease) in net assets attributable to holders of redeemable units 555 578 Purchases of investments (574,871) (874,656) Proceeds from sale and maturity of investments 601,722 934,594 Amortization 269 600 Interest receivable 52 1,113 Other assets receivable 201 (34) Accrued expenses (9) (14) Accrued short term interest (49) (33) ————————————— ————————————— Net cash from operating activities 27,870 62,148 ————————————— —————————————
Cash flows used in financing activities 2 Distributions paid to holders of redeemable units, net of reinvested distributions (1) - Proceeds from issuances of redeemable units 86,011 198,593 Amounts paid on redemption of redeemable units (113,861) (260,813) ————————————— ————————————— Net cash used in financing activities (27,851) (62,220) ————————————— —————————————
Net increase (decrease) for the period 19 (72) Cash (bank overdraft), beginning of period 43 90 ————————————— ————————————— Cash (bank overdraft), end of period 62 18 ————————————— —————————————
Included in cash flows from operating activities Interest received 1,160 2,310
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4Money Market Funds
Funds’ Specific Notes
The accompanying notes are an integral part of these financial statements.
NBI Money Market Fund (continued) (formerly National Bank Money Market Fund)
General Information Annual Management Admi- Date Operations Distribution Distribution Fees nistration Commenced of Net Income of Gains (Maximum) Fees (Note 1) (Note 2) (Note 2) (Note 8) (Note 8) ———————————— ————————— ——————— ——————— ——————— % % Investor Series December 21, 1990 M n/a 0.75 0.08 Advisor Series February 8, 2002 M n/a 0.75 0.08 Series F December 24, 2013 M n/a 0.50 0.08 Series O December 14, 2012 M n/a - 0.02
Net Assets/Equity Attributable to Holders of Redeemable Securities per Securities (Note 2)
As at June 30, 2017 —————————————————————————————————————— Transactional Net Asset Value Adjustment Net Asset/Equity Per Unit/Share Per Unit/Share Per Unit/Share ——————————— ——————————— ——————————— $ $ $ Investor/Advisor Series 10.00 - 10.00 Series F 10.00 - 10.00 Series O 10.00 - 10.00
As at December 31, 2016 —————————————————————————————————————— Transactional Net Asset Value Adjustment Net Asset/Equity Per Unit/Share Per Unit/Share Per Unit/Share ——————————— ——————————— ——————————— $ $ $ Investor/Advisor Series 10.00 - 10.00 Series F 10.00 - 10.00 Institutional Series 10.00 - 10.00 Series M 10.00 - 10.00 Series O 10.00 - 10.00
Credit Risk (Note 5)
Percentage of Net Assets as at ————————————————————————————— Debt Securities by Credit Ratings June 30, 2017 December 31, 2016 —————————————————————————— ———————————— ———————————— % %
Investment Grade – AAA 43.1 44.6 Investment Grade – AA 10.8 14.2 Investment Grade – A 46.1 41.1 100.0 99.9
If applicable, the counterparties to futures and OTC had a rating of at least A-1 or A.
This fund has no investments in other mutual funds and/or exchange traded funds.
Credit ratings are obtained from recognized rating companies.
Interest Rate Risk (Note 5)
Debt Securities by Maturity Date June 30, 2017 December 31, 2016 —————————————————————————— ———————————— ———————————— $ $ Under One Year 219,620,907 250,669,297 From 1 year to 3 years 3,976,130 - 223,597,037 250,669,297
This fund has no investments in other mutual funds and/or exchange traded funds.
Based on the assumption that prevailing interest rates would vary of 0.25%, with all others variables held constant, net assets and results of the fund would have varied by approximately $98,236 ($109,928 as at December 31, 2016).
Concentration Risk (Note 5)
Percentage of Net Assets as at ————————————————————————————— Asset Mix June 30, 2017 December 31, 2016 —————————————————————————— ———————————— ———————————— % %
Banker’s Acceptance 29.3 37.7 Canadian T-Bills 8.1 - Cash and Other Net Assets 0.1 0.1 Commercial Papers 20.7 16.6 Corporate Bonds 20.5 19.1 Provincial T-Bills 9.5 10.0 Short Term Notes 11.8 16.5
Fair Value of Financial Instruments Table (Note 5)
June 30, 2017 Level 1 Level 2 Level 3 Total —————————————————— ———————— ———————— ———————— ———————— $ $ $ $ Money Market n/a 177,798,342 n/a 177,798,342 Bonds and Debentures n/a 45,798,695 n/a 45,798,695 Total Investments n/a 223,597,037 n/a 223,597,037
During the period ended June 30, 2017, there were no significant transfers of investments between Level 1, Level 2 and Level 3.
December 31, 2016 Level 1 Level 2 Level 3 Total —————————————————— ———————— ———————— ———————— ———————— $ $ $ $ Money Market n/a 202,741,470 n/a 202,741,470 Bonds and Debentures n/a 47,927,827 n/a 47,927,827 Total Investments n/a 250,669,297 n/a 250,669,297
During the year ended December 31, 2016, there were no significant transfers of investments between Level 1, Level 2 and Level 3.
Positions Held by Related Parties (Note 8)
June 30, 2017 December 31, 2016 ———————————————————— ———————————————————— Units % Units % ———————— ———————— ———————— ———————— Series M - - 102 -
6
4Money Market Funds
Schedule of investments as at June 30, 2017 (in canadian dollars)
The accompanying notes are an integral part of these financial statements.
NBI Money Market Fund (continued) (formerly National Bank Money Market Fund)
Money Market (79.5%) Canadian T-Bills (8.1%)
Government of Canada 0.51%, due July 10, 2017 400,000 399,928 399,950 0.51%, due August 24, 2017 5,800,000 5,792,460 5,795,622 0.53%, due September 7, 2017 12,000,000 11,984,785 11,988,087
————————— ————————— 18,177,173 18,183,659
————————— ————————— Provincial T-Bills (9.5%)
Province of Manitoba 0.54%, due July 26, 2017 3,100,000 3,097,985 3,098,855 Province of New Brunswick 0.56%, due August 3, 2017 1,250,000 1,248,388 1,249,367 Province of Nova Scotia 0.85%, due September 29, 2017 7,100,000 7,084,806 7,085,136 Province of Quebec 0.85%, due September 29, 2017 7,000,000 6,985,020 6,985,346 Province of Saskatchewan 0.54%, due July 19, 2017 2,900,000 2,898,405 2,899,224
————————— ————————— 21,314,604 21,317,928
————————— ————————— Bankers’ Acceptances (29.3%)
Bank of Montreal 0.69%, due July 4, 2017 7,000,000 6,997,080 6,999,602 0.79%, due August 1, 2017 2,500,000 2,495,150 2,498,329 Bank of Nova Scotia 0.71%, due July 4, 2017 5,000,000 4,997,200 4,999,710 0.68%, due July 10, 2017 3,000,000 2,998,440 2,999,499 0.72%, due August 4, 2017 2,000,000 1,997,800 1,998,664 1.05%, due August 21, 2017 4,000,000 3,979,280 3,994,162 0.77%, due August 28, 2017 1,500,000 1,497,120 1,498,164 0.78%, due August 29, 2017 2,000,000 1,995,560 1,997,481 Canadian Imperial Bank of Commerce 0.68%, due July 5, 2017 3,500,000 3,498,495 3,499,738 1.05%, due July 7, 2017 1,500,000 1,484,415 1,499,744 0.80%, due July 28, 2017 1,000,000 998,100 999,410 0.97%, due September 26, 2017 1,000,000 997,670 997,696 First Banks Inc. 0.83%, due July 13, 2017 3,100,000 3,094,017 3,099,155 HSBC Bank Canada 0.76%, due July 24, 2017 4,000,000 3,995,080 3,998,082 Royal Bank of Canada 0.80%, due July 10, 2017 7,800,000 7,787,244 7,798,467 0.75%, due July 21, 2017 2,735,000 2,730,898 2,733,877 0.77%, due August 29, 2017 1,500,000 1,497,150 1,498,132 0.76%, due August 31, 2017 1,234,000 1,231,668 1,232,437 Toronto-Dominion Bank 0.81%, due August 1, 2017 2,600,000 2,594,748 2,598,211 0.90%, due August 3, 2017 800,000 799,328 799,348 0.80%, due August 14, 2017 2,000,000 1,996,020 1,998,076 1.05%, due November 2, 2017 3,000,000 2,968,920 2,989,412 1.12%, due January 9, 2018 2,800,000 2,769,144 2,783,679
————————— ————————— 65,400,527 65,511,075
————————— ————————— Commercial Paper (20.8%)
Bay Street 1.05%, due November 21, 2017 4,200,000 4,178,370 4,182,816 Canadian Master Trust 1.06%, due August 30, 2017 4,000,000 3,979,200 3,993,067 Central 1 Credit Union 0.86%, due July 17, 2017 1,000,000 997,860 999,624 Credit Union Central of Alberta 0.87%, due July 28, 2017 3,000,000 2,997,780 2,998,066 Credit Union Central of Saskatchewan 0.86%, due July 19, 2017 3,500,000 3,497,515 3,498,509 Enbridge Pipelines Inc. 0.92%, due July 6, 2017 4,000,000 3,991,360 3,999,498 Greater Toronto Airports Authority 0.81%, due September 13, 2017 2,700,000 2,694,870 2,695,586 Honda Canada Finance Inc. 0.85%, due July 5, 2017 590,000 588,490 589,945 Inter Pipeline Corridor Inc. 0.90%, due August 30, 2017 800,000 798,232 798,821
Commercial Paper (20.8%) (continued) Merit Trust 1.03%, due August 18, 2017 2,500,000 2,489,600 2,496,627 Plaza Trust 1.03%, due August 18, 2017 2,200,000 2,190,716 2,197,029 Prime Trust 1.03%, due August 18, 2017 2,000,000 1,991,680 1,997,302 SAFE Trust 0.97%, due July 4, 2017 3,000,000 2,992,830 2,999,761 Sound Trust 0.97%, due July 4, 2017 3,000,000 2,992,830 2,999,761 0.97%, due July 19, 2017 500,000 498,780 499,761 Storm King Funding Canada 0.99%, due July 17, 2017 4,000,000 3,988,840 3,998,266 Toyota Credit Canada Inc. 0.58%, due July 17, 2018 4,000,000 3,972,120 3,976,130 Zeus Receivables Trust 1.04%, due December 1, 2017 1,500,000 1,492,260 1,493,493
————————— ————————— 46,333,333 46,414,062
————————— ————————— Short-Term Notes (11.8%)
BNP Paribas Canada 0.89%, due July 11, 2017 4,000,000 3,991,240 3,999,027 Fédération des caisses Desjardins 0.74%, due August 15, 2017 4,000,000 3,995,404 3,996,342 Manulife Financial Corp. 1.00%, due August 28, 2017 4,300,000 4,278,801 4,293,207 Ontario Teachers Finance Trust 0.76%, due July 21, 2017 700,000 698,649 699,709 0.83%, due August 25, 2017 3,000,000 2,988,510 2,996,261 0.83%, due September 22, 2017 4,100,000 4,083,026 4,092,301 PSP Capital Inc. 0.69%, due August 14, 2017 6,300,000 6,284,313 6,294,771
————————— ————————— 26,319,943 26,371,618
Total Money Market 177,545,580 177,798,342 ————————— ————————— Bonds and Debentures (20.5%) Corporations (20.5%)
Bank of Montreal Floating, due September 29, 2017 500,000 500,000 500,000 2.24%, due December 11, 2017 5,000,000 5,051,550 5,024,385 Bank of Nova Scotia 2.37%, due January 11, 2018 3,000,000 3,035,370 3,019,494 BMW Canada Inc. 2.39%, due November 27, 2017 1,250,000 1,260,612 1,257,155 Caisse Centrale Desjardins du Québec 3.50%, due October 5, 2017 5,000,000 5,116,800 5,031,497 Canadian Imperial Bank of Commerce Floating, due July 17, 2017 3,000,000 3,001,170 3,000,940 Floating, due September 1, 2017 2,500,000 2,507,525 2,505,263 2.35%, due October 18, 2017 8,000,000 8,075,770 8,028,821 Central 1 Credit Union Floating, due August 21, 2017 3,000,000 3,014,700 3,012,897 Royal Bank of Canada 2.36%, due September 21, 2017 6,400,000 6,457,002 6,418,243 Toronto-Dominion Bank Floating, due September 28, 2017 8,000,000 8,000,000 8,000,000
————————— ————————— 46,020,499 45,798,695
Cash and Other Net Assets (0.0%) (122,501) —————————
Net Assets (100%) 223,474,536 ————————— ————————— * Average cost of Investments as of December 31, 2016 is $250,639,167.
Par Average Fair Value Cost Value ————————— ————————— ————————— $ $
Par Average Fair Value Cost Value ————————— ————————— ————————— $ $
7
Financial Statements
The accompanying notes are an integral part of these financial statements.
NBI Short Term Canadian Income Fund (formerly National Bank Short Term Canadian Income Fund)
Statements Interim of Financial Position (Unaudited) (in thousands canadian dollars, except per unit amounts)
June 30, December 31, Note 2017 2016 ————————————— ————————————— $ $
Assets
Current assets Investments 5 358,174 419,713 Cash 96 8 Subscriptions receivable 41 121 Proceeds from sale of investments receivable 14,066 - Interest receivable 1,140 1,316 ————————————— ————————————— Total assets 373,517 421,158 ————————————— —————————————
Liabilities
Current liabilities Redeemed units payable 512 549 Investments payable 200 - Accrued expenses 133 139 ————————————— ————————————— Total liabilities (excluding net assets attributable to holders of redeemable units) 845 688 ————————————— —————————————
Net assets attributable to holders of redeemable units 372,672 420,470 ————————————— ————————————— ————————————— —————————————
————————————— ————————————— ————————————— —————————————
Net assets attributable to holders of redeemable units per unit, per series 2 Investor Series 9.32 9.35 Series O 9.49 9.52 Series R 9.15 9.24
Approved on the behalf of the board of directors of National Bank Investments Inc. Jonathan Durocher President, Chief Executive Officer and Chairman of the Board Tina Tremblay-Girard Director
Statements Interim of Comprehensive Income for the 6-Month Periods Ended June 30 (Unaudited) (in thousands canadian dollars, except per unit amounts)
Note 2017 2016 ————————————— ————————————— $ $
Income 2
Interest income for distribution purposes 3,392 5,121 Income from securities lending - 1 Changes in fair value Net realized gains (losses) on sale of investments (1,648) (4,083) Change in net unrealized appreciation/depreciation on investments 216 2,066 ————————————— ————————————— Total income 1,960 3,105 ————————————— —————————————
Expenses 8
Management fees 555 607 Directors’ fees of independent review committee 2 2 Fixed-administration fees 270 298 Fees paid by the manager (2) (2) ————————————— ————————————— Total expenses 825 905 ————————————— —————————————
Increase (decrease) in net assets attributable to holders of redeemable units 1,135 2,200 ————————————— ————————————— ————————————— —————————————
Increase (decrease) in net assets attributable to holders of redeemable units per series 2 Investor Series 656 1,355 Series O 467 813 Series R 12 32 ————————————— ————————————— 1,135 2,200 ————————————— ————————————— ————————————— ————————————— Increase (decrease) in net assets attributable to holders of redeemable units per unit, per series 2 Investor Series 0.02 0.04 Series O 0.05 0.06 Series R 0.02 0.04
8
Financial Statements
The accompanying notes are an integral part of these financial statements.
NBI Short Term Canadian Income Fund (continued) (formerly National Bank Short Term Canadian Income Fund)
Statements Interim of Changes in Net Assets Attributable to Holders of Redeemable Units per Series for the 6-Month Periods Ended June 30 (Unaudited) (in thousands canadian dollars) Investor Series Series O Series R
Note 2017 2016 2017 2016 2017 2016 ————————— ————————— ————————— ————————— ————————— —————————
————————— ————————— ————————— ————————— ————————— —————————
Increase (decrease) in net assets attributable to holders of redeemable units 656 1,355 467 813 12 32
————————— ————————— ————————— ————————— ————————— ————————— Redeemable units transactions 6 Proceeds from redeemable units issued 52,689 37,811 76,635 147,126 456 767 Reinvestments of distributions to holders
of redeemable units 1,713 2,887 765 1,458 37 43 Redemption of redeemable units (65,953) (57,954) (111,592) (218,134) (1,132) (1,806) ————————— ————————— ————————— ————————— ————————— ————————— Total redeemable units transactions (11,551) (17,256) (34,192) (69,550) (639) (996) ————————— ————————— ————————— ————————— ————————— —————————
Distributions to investors 2 Net investment income 1,721 2,909 765 1,458 32 67 Return of capital - - - - 33 22 ————————— ————————— ————————— ————————— ————————— ————————— Total distributions to investors 1,721 2,909 765 1,458 65 89 ————————— ————————— ————————— ————————— ————————— —————————
————————— ————————— ————————— ————————— ————————— —————————
Net assets attributable to holders of redeemable units, end of the period 305,479 338,557 61,745 100,866 5,448 7,473
————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— Redeemable units transaction Redeemable units outstanding, beginning of the period 34,024,113 37,895,071 10,103,434 17,796,929 664,633 908,430 Redeemable units issued 5,639,085 4,017,442 8,054,497 15,343,941 49,465 82,031 Redeemable units issued on reinvestments 183,519 307,092 80,436 152,184 3,972 4,591 Redeemable units redeemed (7,059,789) (6,157,102) (11,735,105) (22,745,301) (122,896) (192,971) ————————— ————————— ————————— ————————— ————————— ————————— Redeemable units outstanding, end of the period 32,786,928 36,062,503 6,503,262 10,547,753 595,174 802,081 ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
9
Financial Statements
The accompanying notes are an integral part of these financial statements.
NBI Short Term Canadian Income Fund (continued) (formerly National Bank Short Term Canadian Income Fund)
Statements Interim of Cash Flows for the 6-Month Periods Ended June 30 (Unaudited) (in thousands canadian dollars)
Note 2017 2016 ————————————— ————————————— $ $ Cash flows from operating activities Increase (decrease) in net assets attributable to holders of redeemable units 1,135 2,200 Adjustments for: Net realized (gains) losses on sale of investments 1,648 4,083 Change in net unrealized appreciation/depreciation on investments (216) (2,066) Purchases of investments (878,120) (641,224) Proceeds from sale and maturity of investments 924,361 728,345 Interest receivable 176 1,537 Accrued expenses (6) (16) ————————————— ————————————— Net cash from operating activities 48,978 92,859 ————————————— —————————————
Cash flows used in financing activities 2 Distributions paid to holders of redeemable units, net of reinvested distributions (36) (68) Proceeds from issuances of redeemable units 129,860 185,495 Amounts paid on redemption of redeemable units (178,714) (278,300) ————————————— ————————————— Net cash used in financing activities (48,890) (92,873) ————————————— —————————————
Net increase (decrease) for the period 88 (14) Cash (bank overdraft), beginning of period 8 34 ————————————— ————————————— Cash (bank overdraft), end of period 96 20 ————————————— —————————————
Included in cash flows from operating activities Interest received 3,568 6,658
10
Funds’ Specific Notes
The accompanying notes are an integral part of these financial statements.
NBI Short Term Canadian Income Fund (continued) (formerly National Bank Short Term Canadian Income Fund)
General Information Annual Management Admi- Date Operations Distribution Distribution Fees nistration Commenced of Net Income of Gains (Maximum) Fees (Note 1) (Note 2) (Note 2) (Note 8) (Note 8) ———————————— ————————— ——————— ——————— ——————— % % Investor Series March 5, 1997 M A 0.30 0.14 Series O November 10, 2011 M A - 0.02 Series R May 27, 2011 M A 0.30 0.14
Net Assets/Equity Attributable to Holders of Redeemable Securities per Securities (Note 2)
As at June 30, 2017 —————————————————————————————————————— Transactional Net Asset Value Adjustment Net Asset/Equity Per Unit/Share Per Unit/Share Per Unit/Share ——————————— ——————————— ——————————— $ $ $ Investor Series 9.32 - 9.32 Series O 9.50 (0.01) 9.49 Series R 9.16 (0.01) 9.15
As at December 31, 2016 —————————————————————————————————————— Transactional Net Asset Value Adjustment Net Asset/Equity Per Unit/Share Per Unit/Share Per Unit/Share ——————————— ——————————— ——————————— $ $ $ Investor Series 9.35 - 9.35 Series O 9.53 (0.01) 9.52 Series R 9.24 - 9.24
Credit Risk (Note 5)
Percentage of Net Assets as at ————————————————————————————— Debt Securities by Credit Ratings June 30, 2017 December 31, 2016 —————————————————————————— ———————————— ———————————— % % Investment Grade – AAA 20.9 23.6 Investment Grade – AA 33.1 24.6 Investment Grade – A 39.9 49.0 Not Rated 2.3 2.7 96.2 99.9
If applicable, the counterparties to futures and OTC had a rating of at least A-1 or A.
This fund has no investments in other mutual funds.
Credit ratings are obtained from recognized rating companies.
Interest Rate Risk (Note 5)
Debt Securities by Maturity Date June 30, 2017 December 31, 2016 —————————————————————————— ———————————— ———————————— $ $ Under One Year 324,649,576 404,004,186 From 1 Year to 3 Years 33,524,679 15,709,141 358,174,255 419,713,327
This fund has no investments in other mutual funds.
Based on the assumption that prevailing interest rates would vary of 0.25%, with all others variables held constant, net assets and results of the fund would have varied by approximately $379,809 ($326,112 as at December 31, 2016).
Concentration Risk (Note 5)
Percentage of Net Assets as at ————————————————————————————— Asset Mix June 30, 2017 December 31, 2016 —————————————————————————— ———————————— ———————————— % % Banker’s Acceptance 11.7 21.2 Canadian T-Bills 0.6 0.4 Cash and Other Net Assets 3.8 0.1 Commercial Papers 27.7 13.8 Corporate Bonds 40.5 44.6 Municipal Bonds 2.3 2.6 Provincial Bonds 6.0 - Provincial T-Bills 0.9 1.2 Short Term Notes 6.5 16.1
Fair Value of Financial Instruments Table (Note 5)
June 30, 2017 Level 1 Level 2 Level 3 Total —————————————————— ———————— ———————— ———————— ———————— $ $ $ $ Money Market n/a 176,380,070 n/a 176,380,070 Bonds and Debentures n/a 181,794,185 n/a 181,794,185 Total Investments n/a 358,174,255 n/a 358,174,255
During the period ended June 30, 2017, there were no significant transfers of investments between Level 1, Level 2 and Level 3.
December 31, 2016 Level 1 Level 2 Level 3 Total —————————————————— ———————— ———————— ———————— ———————— $ $ $ $ Money Market n/a 221,312,453 n/a 221,312,453 Bonds and Debentures n/a 198,400,874 n/a 198,400,874 Total Investments n/a 419,713,327 n/a 419,713,327
During the year ended December 31, 2016, there were no significant transfers of investments between Level 1, Level 2 and Level 3.
Positions Held by Related Parties (Note 8)
June 30, 2017 December 31, 2016 ———————————————————— ———————————————————— Units % Units % ———————— ———————— ———————— ———————— Series O 113 - 112 -
Losses (Note 9)
(in thousands canadian dollars) 2016 2015 ———————————— ———————————— $ $ Capital Losses 11,566 6,676
Income from Securities Lending (Note 2)
The following table shows a reconciliation of the total income generated from securities lending transactions of the Fund and the revenue from securities lending disclosed in the Fund’s Statement of Comprehensive Income. June 30, 2017 June 30, 2016 ———————————————————— ———————————————————— $ % $ % Total Income - - 2 100 Net Income Received by the Fund - - 1 50 Net Income Received by
Natcan Trust Company - - 1 50
11
4Short Term and Income Funds
The accompanying notes are an integral part of these financial statements.
Schedule of investments as at June 30, 2017 (in canadian dollars)
NBI Short Term Canadian Income Fund (continued) (formerly National Bank Short Term Canadian Income Fund)
Money Market (47.4%) Canadian T-Bills (0.6%)
Government of Canada 0.51%, due July 10, 2017 1,100,000 1,099,802 1,099,802 0.77%, due September 7, 2017 1,000,000 998,710 998,574
————————— ————————— 2,098,512 2,098,376
————————— ————————— Provincial T-Bills (0.9%)
Province of New Brunswick 1.71%, due August 3, 2017 500,000 499,355 499,230 Province of Quebec 0.85%, due June 1, 2018 3,000,000 2,975,610 2,975,610
————————— ———————&m
NBI Funds
Interim Financial Statements — For the period ended June 30, 2017
Table of Contents
Money Market Funds NBI Money Market Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
(formerly National Bank Money Market Fund)
Short Term and Income Funds NBI Short Term Canadian Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
(formerly National Bank Short Term Canadian Income Fund) NBI Floating Rate Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
(formerly National Bank Floating Rate Income Fund) NBI Tactical Mortgage & Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 NBI Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
(formerly National Bank Bond Fund) NBI Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
(formerly National Bank Income Fund) NBI Dividend Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
(formerly National Bank Dividend Fund) NBI Global Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
(formerly National Bank Global Bond Fund) NBI Global Tactical Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
(formerly National Bank Global Tactical Bond Fund) NBI Unconstrained Fixed Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 NBI Corporate Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
(formerly National Bank Corporate Bond Fund) NBI High Yield Bond Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
(formerly National Bank High Yield Bond Fund) NBI Preferred Equity Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
(formerly National Bank Preferred Equity Income Fund) NBI Preferred Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
(formerly National Bank Preferred Equity Fund) NBI Jarislowsky Fraser Select Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
(formerly Jarislowsky Fraser Select Income Fund)
Diversified Funds National Bank Secure Diversified Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 National Bank Conservative Diversified Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 National Bank Moderate Diversified Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 National Bank Balanced Diversified Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 National Bank Growth Diversified Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 NBI Jarislowsky Fraser Select Balanced Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
(formerly Jarislowsky Fraser Select Balanced Fund) NBI Strategic U.S. Income and Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
(formerly National Bank Strategic U.S. Income and Growth Fund)
Canadian Equity Funds NBI Jarislowsky Fraser Select Canadian Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 160
(formerly Jarislowsky Fraser Select Canadian Equity Fund) NBI SmartBeta Canadian Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 NBI Canadian Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
(formerly National Bank Canadian Equity Fund) NBI Canadian All Cap Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
(formerly National Bank Canadian All Cap Equity Fund) NBI Canadian Equity Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
(formerly National Bank Canadian Equity Growth Fund) NBI Small Cap Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
(formerly National Bank Small Cap Fund) NBI Quebec Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
(formerly National Bank Quebec Growth Fund
Global Equity Funds NBI SmartBeta Global Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 NBI Global Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
(formerly National Bank Global Equity Fund)
National Bank Global Diversified Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 NBI Global Real Assets Income Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 NBI U.S. Dividend Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
(formerly National Bank U.S. Dividend Fund) NBI SmartData U.S. Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
(formerly National Bank Consensus American Equity Fund) NBI U.S. Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
(formerly National Bank U.S. Equity Fund) NBI SmartData International Equity Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
(formerly National Bank Consensus International Equity Fund) NBI Westwood Emerging Markets Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251
(formerly Westwood Emerging Markets Fund)
Specialized Funds NBI Resource Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
(formerly National Bank Resource Fund) NBI Precious Metals Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
(formerly National Bank Precious Metals Fund) NBI Science and Technology Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266
(formerly National Bank Science and Technology Fund)
Index Funds NBI Canadian Index Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
(formerly National Bank Canadian Index Fund) NBI U.S. Index Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
(formerly National Bank U.S. Index Fund) NBI U.S. Currency Neutral Index Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
(formerly National Bank U.S. Currency Neutral Index Fund) NBI International Index Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
(formerly National Bank International Index Fund) NBI International Currency Neutral Index Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
(formerly National Bank International Currency Neutral Index Fund)
Fixed Income Private Portfolios NBI Canadian Short Term Income Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 NBI Municipal Bond Plus Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 NBI Canadian Bond Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311 NBI Canadian Diversified Bond Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320 NBI U.S. Bond Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327 NBI Corporate Bond Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332 NBI Non-Traditional Fixed Income Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . 339 NBI High Yield Bond Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344 NBI Canadian Preferred Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352
Balanced Private Portfolio NBI Multiple Asset Class Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359
Canadian Equity Private Portfolios NBI Equity Income Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364 NBI Canadian Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 369 NBI Canadian High Conviction Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . 374 NBI Canadian Small Cap Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379
Global Equity Private Portfolios NBI North American Dividend Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384 NBI U.S. Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389 NBI U.S. High Conviction Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . 394 NBI International Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 NBI International High Conviction Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . 406 NBI Non-Traditional Capital Appreciation Private Portfolio . . . . . . . . . . . . . . . . . . . . . 412 NBI Emerging Markets Equity Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417 NBI Real Assets Private Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428
USD: American Dollar AUD: Australian Dollar CHF: Swiss Franc
DKK: Danish Krone EUR: Euro GBP: Pound Sterling
HKD: Hong Kong Dollar JPY: Japanese Yen NOK: Norwegian Krone
SEK: Swedish Krona SGD: Singapore Dollar
Schedule of Investment This section is for investors who may want to have a detailed list of the specific securities that make up the portfolios. For each security, you will find information such as its average cost and its fair value as at June 30, 2017. Income securities denominated in currencies other than the Canadian Dollar are presented using the following abbreviations:
Financial Statements This section contains four financial statements, each of which has a specific role and contains different information:
• The Statement Interim of Financial Position presents all the items that make up the fund’s net assets as at June 30. The main item is the “Investments” section, which reflects the overall value of the securities portfolio.
• The Statement Interim of Comprehensive Income breaks down the overall income and expenses generated by the fund during the period. • The Statement Interim of Changes in Net Assets Attributable to Holders of Redeemable Units/Shares per Series reconciles the changes in net assets
per Series during the period, listing the unit purchases and redemptions carried out by investors, as well as distributions. • The Statement Interim of Cash Flows reconciles the change in cash during the period detailing cash inflows and outflows by operating, investing and
financing activities.
Finally, the notes to the financial statements provide additional information. For example, they outline the main accounting policies used in the preparation of the financial statements.
Unaudited Interim Financial Statements The accompanying interim financial statements have not been reviewed by the independent auditors of the Funds. The independent auditors will be auditing the annual financial statements of the Funds in accordance with Canadian generally accepted auditing standards.
2
Financial Statements
The accompanying notes are an integral part of these financial statements.
NBI Money Market Fund (formerly National Bank Money Market Fund)
Statements Interim of Financial Position (Unaudited) (in thousands canadian dollars, except per unit amounts)
June 30, December 31, Note 2017 2016 ————————————— ————————————— $ $
Assets
Current assets Investments 5 223,597 250,669 Cash 62 43 Subscriptions receivable 16 114 Interest receivable 181 233 Other assets receivable 18 219 ————————————— ————————————— Total assets 223,874 251,278 ————————————— —————————————
Liabilities
Current liabilities Redeemed units payable 293 291 Accrued expenses 106 115 ————————————— ————————————— Total liabilities (excluding net assets attributable to holders of redeemable units) 399 406 ————————————— —————————————
————————————— ————————————— ————————————— —————————————
Net assets attributable to holders of redeemable units per unit, per series 2 Investor/Advisor Series 10.00 10.00 Series F 10.00 10.00 Institutional Series - 10.00 Series M - 10.00 Series O 10.00 10.00
Approved on the behalf of the board of directors of National Bank Investments Inc. Jonathan Durocher President, Chief Executive Officer and Chairman of the Board Tina Tremblay-Girard Director
Statements Interim of Comprehensive Income for the 6-Month Periods Ended June 30 (Unaudited) (in thousands canadian dollars, except per unit amounts)
Note 2017 2016 ————————————— ————————————— $ $
Expenses 8
Management fees 587 647 Directors’ fees of independent review committee 1 1 Fixed-administration fees 74 81 Fees paid by the manager (109) (110) ————————————— ————————————— Total expenses 553 619 ————————————— —————————————
Increase (decrease) in net assets attributable to holders of redeemable units 555 578 ————————————— ————————————— ————————————— —————————————
Increase (decrease) in net assets attributable to holders of redeemable units per series 2 Investor/Advisor Series 102 81 Series F 3 1 Institutional Series 8 9 Series M 3 4 Series O 439 483 ————————————— ————————————— 555 578 ————————————— ————————————— ————————————— —————————————
Increase (decrease) in net assets attributable to holders of redeemable units per unit, per series 2 Investor/Advisor Series 0.01 0.01 Series F 0.01 0.01 Institutional Series 0.02 0.02 Series M 0.03 0.03 Series O 0.05 0.04
3
Financial Statements
The accompanying notes are an integral part of these financial statements.
NBI Money Market Fund (continued) (formerly National Bank Money Market Fund)
Statements Interim of Changes in Net Assets Attributable to Holders of Redeemable Units per Series for the 6-Month Periods Ended June 30 (Unaudited) (in thousands canadian dollars) Investor/Advisor Series Series F Institutional Series Series M Series O
————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— $ $ $ $ $ $ $ $ $ $
————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
Redeemable units transactions 6 Proceeds from redeemable units issued 22,285 17,893 6,794 886 853 413 - 2,066 55,981 177,351 Reinvestments of distributions to holders
of redeemable units 102 81 3 1 8 9 3 4 438 483 Redemption of redeemable units (27,743) (31,037) (6,786) (904) (5,770) (924) (1,514) (1,560) (72,050) (226,443) ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— Total redeemable units transactions (5,356) (13,063) 11 (17) (4,909) (502) (1,511) 510 (15,631) (48,609) ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
Distributions to investors 2 Net investment income 102 81 3 1 8 9 3 4 439 483 ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
Redeemable units transaction Redeemable units outstanding, beginning of the period 13,488,013 15,397,886 103,692 109,720 490,947 461,182 151,057 100,215 10,853,432 11,237,133 Redeemable units issued 2,228,529 1,789,421 679,362 88,583 85,331 41,367 - 206,512 5,598,000 17,734,999 Redeemable units issued on reinvestments 10,203 8,078 291 146 765 870 347 442 43,808 48,344 Redeemable units redeemed (2,774,323) (3,103,719) (678,577) (90,146) (577,043) (92,388) (151,404) (155,970) (7,205,000) (22,644,280) ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— Redeemable units outstanding, end of the period 12,952,422 14,091,666 104,768 108,303 - 411,031 - 151,199 9,290,240 6,376,196 ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
4
Financial Statements
The accompanying notes are an integral part of these financial statements.
NBI Money Market Fund (continued) (formerly National Bank Money Market Fund)
Statements Interim of Cash Flows for the 6-Month Periods Ended June 30 (Unaudited) (in thousands canadian dollars)
Note 2017 2016 ————————————— ————————————— $ $ Cash flows from operating activities Increase (decrease) in net assets attributable to holders of redeemable units 555 578 Purchases of investments (574,871) (874,656) Proceeds from sale and maturity of investments 601,722 934,594 Amortization 269 600 Interest receivable 52 1,113 Other assets receivable 201 (34) Accrued expenses (9) (14) Accrued short term interest (49) (33) ————————————— ————————————— Net cash from operating activities 27,870 62,148 ————————————— —————————————
Cash flows used in financing activities 2 Distributions paid to holders of redeemable units, net of reinvested distributions (1) - Proceeds from issuances of redeemable units 86,011 198,593 Amounts paid on redemption of redeemable units (113,861) (260,813) ————————————— ————————————— Net cash used in financing activities (27,851) (62,220) ————————————— —————————————
Net increase (decrease) for the period 19 (72) Cash (bank overdraft), beginning of period 43 90 ————————————— ————————————— Cash (bank overdraft), end of period 62 18 ————————————— —————————————
Included in cash flows from operating activities Interest received 1,160 2,310
5
4Money Market Funds
Funds’ Specific Notes
The accompanying notes are an integral part of these financial statements.
NBI Money Market Fund (continued) (formerly National Bank Money Market Fund)
General Information Annual Management Admi- Date Operations Distribution Distribution Fees nistration Commenced of Net Income of Gains (Maximum) Fees (Note 1) (Note 2) (Note 2) (Note 8) (Note 8) ———————————— ————————— ——————— ——————— ——————— % % Investor Series December 21, 1990 M n/a 0.75 0.08 Advisor Series February 8, 2002 M n/a 0.75 0.08 Series F December 24, 2013 M n/a 0.50 0.08 Series O December 14, 2012 M n/a - 0.02
Net Assets/Equity Attributable to Holders of Redeemable Securities per Securities (Note 2)
As at June 30, 2017 —————————————————————————————————————— Transactional Net Asset Value Adjustment Net Asset/Equity Per Unit/Share Per Unit/Share Per Unit/Share ——————————— ——————————— ——————————— $ $ $ Investor/Advisor Series 10.00 - 10.00 Series F 10.00 - 10.00 Series O 10.00 - 10.00
As at December 31, 2016 —————————————————————————————————————— Transactional Net Asset Value Adjustment Net Asset/Equity Per Unit/Share Per Unit/Share Per Unit/Share ——————————— ——————————— ——————————— $ $ $ Investor/Advisor Series 10.00 - 10.00 Series F 10.00 - 10.00 Institutional Series 10.00 - 10.00 Series M 10.00 - 10.00 Series O 10.00 - 10.00
Credit Risk (Note 5)
Percentage of Net Assets as at ————————————————————————————— Debt Securities by Credit Ratings June 30, 2017 December 31, 2016 —————————————————————————— ———————————— ———————————— % %
Investment Grade – AAA 43.1 44.6 Investment Grade – AA 10.8 14.2 Investment Grade – A 46.1 41.1 100.0 99.9
If applicable, the counterparties to futures and OTC had a rating of at least A-1 or A.
This fund has no investments in other mutual funds and/or exchange traded funds.
Credit ratings are obtained from recognized rating companies.
Interest Rate Risk (Note 5)
Debt Securities by Maturity Date June 30, 2017 December 31, 2016 —————————————————————————— ———————————— ———————————— $ $ Under One Year 219,620,907 250,669,297 From 1 year to 3 years 3,976,130 - 223,597,037 250,669,297
This fund has no investments in other mutual funds and/or exchange traded funds.
Based on the assumption that prevailing interest rates would vary of 0.25%, with all others variables held constant, net assets and results of the fund would have varied by approximately $98,236 ($109,928 as at December 31, 2016).
Concentration Risk (Note 5)
Percentage of Net Assets as at ————————————————————————————— Asset Mix June 30, 2017 December 31, 2016 —————————————————————————— ———————————— ———————————— % %
Banker’s Acceptance 29.3 37.7 Canadian T-Bills 8.1 - Cash and Other Net Assets 0.1 0.1 Commercial Papers 20.7 16.6 Corporate Bonds 20.5 19.1 Provincial T-Bills 9.5 10.0 Short Term Notes 11.8 16.5
Fair Value of Financial Instruments Table (Note 5)
June 30, 2017 Level 1 Level 2 Level 3 Total —————————————————— ———————— ———————— ———————— ———————— $ $ $ $ Money Market n/a 177,798,342 n/a 177,798,342 Bonds and Debentures n/a 45,798,695 n/a 45,798,695 Total Investments n/a 223,597,037 n/a 223,597,037
During the period ended June 30, 2017, there were no significant transfers of investments between Level 1, Level 2 and Level 3.
December 31, 2016 Level 1 Level 2 Level 3 Total —————————————————— ———————— ———————— ———————— ———————— $ $ $ $ Money Market n/a 202,741,470 n/a 202,741,470 Bonds and Debentures n/a 47,927,827 n/a 47,927,827 Total Investments n/a 250,669,297 n/a 250,669,297
During the year ended December 31, 2016, there were no significant transfers of investments between Level 1, Level 2 and Level 3.
Positions Held by Related Parties (Note 8)
June 30, 2017 December 31, 2016 ———————————————————— ———————————————————— Units % Units % ———————— ———————— ———————— ———————— Series M - - 102 -
6
4Money Market Funds
Schedule of investments as at June 30, 2017 (in canadian dollars)
The accompanying notes are an integral part of these financial statements.
NBI Money Market Fund (continued) (formerly National Bank Money Market Fund)
Money Market (79.5%) Canadian T-Bills (8.1%)
Government of Canada 0.51%, due July 10, 2017 400,000 399,928 399,950 0.51%, due August 24, 2017 5,800,000 5,792,460 5,795,622 0.53%, due September 7, 2017 12,000,000 11,984,785 11,988,087
————————— ————————— 18,177,173 18,183,659
————————— ————————— Provincial T-Bills (9.5%)
Province of Manitoba 0.54%, due July 26, 2017 3,100,000 3,097,985 3,098,855 Province of New Brunswick 0.56%, due August 3, 2017 1,250,000 1,248,388 1,249,367 Province of Nova Scotia 0.85%, due September 29, 2017 7,100,000 7,084,806 7,085,136 Province of Quebec 0.85%, due September 29, 2017 7,000,000 6,985,020 6,985,346 Province of Saskatchewan 0.54%, due July 19, 2017 2,900,000 2,898,405 2,899,224
————————— ————————— 21,314,604 21,317,928
————————— ————————— Bankers’ Acceptances (29.3%)
Bank of Montreal 0.69%, due July 4, 2017 7,000,000 6,997,080 6,999,602 0.79%, due August 1, 2017 2,500,000 2,495,150 2,498,329 Bank of Nova Scotia 0.71%, due July 4, 2017 5,000,000 4,997,200 4,999,710 0.68%, due July 10, 2017 3,000,000 2,998,440 2,999,499 0.72%, due August 4, 2017 2,000,000 1,997,800 1,998,664 1.05%, due August 21, 2017 4,000,000 3,979,280 3,994,162 0.77%, due August 28, 2017 1,500,000 1,497,120 1,498,164 0.78%, due August 29, 2017 2,000,000 1,995,560 1,997,481 Canadian Imperial Bank of Commerce 0.68%, due July 5, 2017 3,500,000 3,498,495 3,499,738 1.05%, due July 7, 2017 1,500,000 1,484,415 1,499,744 0.80%, due July 28, 2017 1,000,000 998,100 999,410 0.97%, due September 26, 2017 1,000,000 997,670 997,696 First Banks Inc. 0.83%, due July 13, 2017 3,100,000 3,094,017 3,099,155 HSBC Bank Canada 0.76%, due July 24, 2017 4,000,000 3,995,080 3,998,082 Royal Bank of Canada 0.80%, due July 10, 2017 7,800,000 7,787,244 7,798,467 0.75%, due July 21, 2017 2,735,000 2,730,898 2,733,877 0.77%, due August 29, 2017 1,500,000 1,497,150 1,498,132 0.76%, due August 31, 2017 1,234,000 1,231,668 1,232,437 Toronto-Dominion Bank 0.81%, due August 1, 2017 2,600,000 2,594,748 2,598,211 0.90%, due August 3, 2017 800,000 799,328 799,348 0.80%, due August 14, 2017 2,000,000 1,996,020 1,998,076 1.05%, due November 2, 2017 3,000,000 2,968,920 2,989,412 1.12%, due January 9, 2018 2,800,000 2,769,144 2,783,679
————————— ————————— 65,400,527 65,511,075
————————— ————————— Commercial Paper (20.8%)
Bay Street 1.05%, due November 21, 2017 4,200,000 4,178,370 4,182,816 Canadian Master Trust 1.06%, due August 30, 2017 4,000,000 3,979,200 3,993,067 Central 1 Credit Union 0.86%, due July 17, 2017 1,000,000 997,860 999,624 Credit Union Central of Alberta 0.87%, due July 28, 2017 3,000,000 2,997,780 2,998,066 Credit Union Central of Saskatchewan 0.86%, due July 19, 2017 3,500,000 3,497,515 3,498,509 Enbridge Pipelines Inc. 0.92%, due July 6, 2017 4,000,000 3,991,360 3,999,498 Greater Toronto Airports Authority 0.81%, due September 13, 2017 2,700,000 2,694,870 2,695,586 Honda Canada Finance Inc. 0.85%, due July 5, 2017 590,000 588,490 589,945 Inter Pipeline Corridor Inc. 0.90%, due August 30, 2017 800,000 798,232 798,821
Commercial Paper (20.8%) (continued) Merit Trust 1.03%, due August 18, 2017 2,500,000 2,489,600 2,496,627 Plaza Trust 1.03%, due August 18, 2017 2,200,000 2,190,716 2,197,029 Prime Trust 1.03%, due August 18, 2017 2,000,000 1,991,680 1,997,302 SAFE Trust 0.97%, due July 4, 2017 3,000,000 2,992,830 2,999,761 Sound Trust 0.97%, due July 4, 2017 3,000,000 2,992,830 2,999,761 0.97%, due July 19, 2017 500,000 498,780 499,761 Storm King Funding Canada 0.99%, due July 17, 2017 4,000,000 3,988,840 3,998,266 Toyota Credit Canada Inc. 0.58%, due July 17, 2018 4,000,000 3,972,120 3,976,130 Zeus Receivables Trust 1.04%, due December 1, 2017 1,500,000 1,492,260 1,493,493
————————— ————————— 46,333,333 46,414,062
————————— ————————— Short-Term Notes (11.8%)
BNP Paribas Canada 0.89%, due July 11, 2017 4,000,000 3,991,240 3,999,027 Fédération des caisses Desjardins 0.74%, due August 15, 2017 4,000,000 3,995,404 3,996,342 Manulife Financial Corp. 1.00%, due August 28, 2017 4,300,000 4,278,801 4,293,207 Ontario Teachers Finance Trust 0.76%, due July 21, 2017 700,000 698,649 699,709 0.83%, due August 25, 2017 3,000,000 2,988,510 2,996,261 0.83%, due September 22, 2017 4,100,000 4,083,026 4,092,301 PSP Capital Inc. 0.69%, due August 14, 2017 6,300,000 6,284,313 6,294,771
————————— ————————— 26,319,943 26,371,618
Total Money Market 177,545,580 177,798,342 ————————— ————————— Bonds and Debentures (20.5%) Corporations (20.5%)
Bank of Montreal Floating, due September 29, 2017 500,000 500,000 500,000 2.24%, due December 11, 2017 5,000,000 5,051,550 5,024,385 Bank of Nova Scotia 2.37%, due January 11, 2018 3,000,000 3,035,370 3,019,494 BMW Canada Inc. 2.39%, due November 27, 2017 1,250,000 1,260,612 1,257,155 Caisse Centrale Desjardins du Québec 3.50%, due October 5, 2017 5,000,000 5,116,800 5,031,497 Canadian Imperial Bank of Commerce Floating, due July 17, 2017 3,000,000 3,001,170 3,000,940 Floating, due September 1, 2017 2,500,000 2,507,525 2,505,263 2.35%, due October 18, 2017 8,000,000 8,075,770 8,028,821 Central 1 Credit Union Floating, due August 21, 2017 3,000,000 3,014,700 3,012,897 Royal Bank of Canada 2.36%, due September 21, 2017 6,400,000 6,457,002 6,418,243 Toronto-Dominion Bank Floating, due September 28, 2017 8,000,000 8,000,000 8,000,000
————————— ————————— 46,020,499 45,798,695
Cash and Other Net Assets (0.0%) (122,501) —————————
Net Assets (100%) 223,474,536 ————————— ————————— * Average cost of Investments as of December 31, 2016 is $250,639,167.
Par Average Fair Value Cost Value ————————— ————————— ————————— $ $
Par Average Fair Value Cost Value ————————— ————————— ————————— $ $
7
Financial Statements
The accompanying notes are an integral part of these financial statements.
NBI Short Term Canadian Income Fund (formerly National Bank Short Term Canadian Income Fund)
Statements Interim of Financial Position (Unaudited) (in thousands canadian dollars, except per unit amounts)
June 30, December 31, Note 2017 2016 ————————————— ————————————— $ $
Assets
Current assets Investments 5 358,174 419,713 Cash 96 8 Subscriptions receivable 41 121 Proceeds from sale of investments receivable 14,066 - Interest receivable 1,140 1,316 ————————————— ————————————— Total assets 373,517 421,158 ————————————— —————————————
Liabilities
Current liabilities Redeemed units payable 512 549 Investments payable 200 - Accrued expenses 133 139 ————————————— ————————————— Total liabilities (excluding net assets attributable to holders of redeemable units) 845 688 ————————————— —————————————
Net assets attributable to holders of redeemable units 372,672 420,470 ————————————— ————————————— ————————————— —————————————
————————————— ————————————— ————————————— —————————————
Net assets attributable to holders of redeemable units per unit, per series 2 Investor Series 9.32 9.35 Series O 9.49 9.52 Series R 9.15 9.24
Approved on the behalf of the board of directors of National Bank Investments Inc. Jonathan Durocher President, Chief Executive Officer and Chairman of the Board Tina Tremblay-Girard Director
Statements Interim of Comprehensive Income for the 6-Month Periods Ended June 30 (Unaudited) (in thousands canadian dollars, except per unit amounts)
Note 2017 2016 ————————————— ————————————— $ $
Income 2
Interest income for distribution purposes 3,392 5,121 Income from securities lending - 1 Changes in fair value Net realized gains (losses) on sale of investments (1,648) (4,083) Change in net unrealized appreciation/depreciation on investments 216 2,066 ————————————— ————————————— Total income 1,960 3,105 ————————————— —————————————
Expenses 8
Management fees 555 607 Directors’ fees of independent review committee 2 2 Fixed-administration fees 270 298 Fees paid by the manager (2) (2) ————————————— ————————————— Total expenses 825 905 ————————————— —————————————
Increase (decrease) in net assets attributable to holders of redeemable units 1,135 2,200 ————————————— ————————————— ————————————— —————————————
Increase (decrease) in net assets attributable to holders of redeemable units per series 2 Investor Series 656 1,355 Series O 467 813 Series R 12 32 ————————————— ————————————— 1,135 2,200 ————————————— ————————————— ————————————— ————————————— Increase (decrease) in net assets attributable to holders of redeemable units per unit, per series 2 Investor Series 0.02 0.04 Series O 0.05 0.06 Series R 0.02 0.04
8
Financial Statements
The accompanying notes are an integral part of these financial statements.
NBI Short Term Canadian Income Fund (continued) (formerly National Bank Short Term Canadian Income Fund)
Statements Interim of Changes in Net Assets Attributable to Holders of Redeemable Units per Series for the 6-Month Periods Ended June 30 (Unaudited) (in thousands canadian dollars) Investor Series Series O Series R
Note 2017 2016 2017 2016 2017 2016 ————————— ————————— ————————— ————————— ————————— —————————
————————— ————————— ————————— ————————— ————————— —————————
Increase (decrease) in net assets attributable to holders of redeemable units 656 1,355 467 813 12 32
————————— ————————— ————————— ————————— ————————— ————————— Redeemable units transactions 6 Proceeds from redeemable units issued 52,689 37,811 76,635 147,126 456 767 Reinvestments of distributions to holders
of redeemable units 1,713 2,887 765 1,458 37 43 Redemption of redeemable units (65,953) (57,954) (111,592) (218,134) (1,132) (1,806) ————————— ————————— ————————— ————————— ————————— ————————— Total redeemable units transactions (11,551) (17,256) (34,192) (69,550) (639) (996) ————————— ————————— ————————— ————————— ————————— —————————
Distributions to investors 2 Net investment income 1,721 2,909 765 1,458 32 67 Return of capital - - - - 33 22 ————————— ————————— ————————— ————————— ————————— ————————— Total distributions to investors 1,721 2,909 765 1,458 65 89 ————————— ————————— ————————— ————————— ————————— —————————
————————— ————————— ————————— ————————— ————————— —————————
Net assets attributable to holders of redeemable units, end of the period 305,479 338,557 61,745 100,866 5,448 7,473
————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— Redeemable units transaction Redeemable units outstanding, beginning of the period 34,024,113 37,895,071 10,103,434 17,796,929 664,633 908,430 Redeemable units issued 5,639,085 4,017,442 8,054,497 15,343,941 49,465 82,031 Redeemable units issued on reinvestments 183,519 307,092 80,436 152,184 3,972 4,591 Redeemable units redeemed (7,059,789) (6,157,102) (11,735,105) (22,745,301) (122,896) (192,971) ————————— ————————— ————————— ————————— ————————— ————————— Redeemable units outstanding, end of the period 32,786,928 36,062,503 6,503,262 10,547,753 595,174 802,081 ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— ————————— —————————
9
Financial Statements
The accompanying notes are an integral part of these financial statements.
NBI Short Term Canadian Income Fund (continued) (formerly National Bank Short Term Canadian Income Fund)
Statements Interim of Cash Flows for the 6-Month Periods Ended June 30 (Unaudited) (in thousands canadian dollars)
Note 2017 2016 ————————————— ————————————— $ $ Cash flows from operating activities Increase (decrease) in net assets attributable to holders of redeemable units 1,135 2,200 Adjustments for: Net realized (gains) losses on sale of investments 1,648 4,083 Change in net unrealized appreciation/depreciation on investments (216) (2,066) Purchases of investments (878,120) (641,224) Proceeds from sale and maturity of investments 924,361 728,345 Interest receivable 176 1,537 Accrued expenses (6) (16) ————————————— ————————————— Net cash from operating activities 48,978 92,859 ————————————— —————————————
Cash flows used in financing activities 2 Distributions paid to holders of redeemable units, net of reinvested distributions (36) (68) Proceeds from issuances of redeemable units 129,860 185,495 Amounts paid on redemption of redeemable units (178,714) (278,300) ————————————— ————————————— Net cash used in financing activities (48,890) (92,873) ————————————— —————————————
Net increase (decrease) for the period 88 (14) Cash (bank overdraft), beginning of period 8 34 ————————————— ————————————— Cash (bank overdraft), end of period 96 20 ————————————— —————————————
Included in cash flows from operating activities Interest received 3,568 6,658
10
Funds’ Specific Notes
The accompanying notes are an integral part of these financial statements.
NBI Short Term Canadian Income Fund (continued) (formerly National Bank Short Term Canadian Income Fund)
General Information Annual Management Admi- Date Operations Distribution Distribution Fees nistration Commenced of Net Income of Gains (Maximum) Fees (Note 1) (Note 2) (Note 2) (Note 8) (Note 8) ———————————— ————————— ——————— ——————— ——————— % % Investor Series March 5, 1997 M A 0.30 0.14 Series O November 10, 2011 M A - 0.02 Series R May 27, 2011 M A 0.30 0.14
Net Assets/Equity Attributable to Holders of Redeemable Securities per Securities (Note 2)
As at June 30, 2017 —————————————————————————————————————— Transactional Net Asset Value Adjustment Net Asset/Equity Per Unit/Share Per Unit/Share Per Unit/Share ——————————— ——————————— ——————————— $ $ $ Investor Series 9.32 - 9.32 Series O 9.50 (0.01) 9.49 Series R 9.16 (0.01) 9.15
As at December 31, 2016 —————————————————————————————————————— Transactional Net Asset Value Adjustment Net Asset/Equity Per Unit/Share Per Unit/Share Per Unit/Share ——————————— ——————————— ——————————— $ $ $ Investor Series 9.35 - 9.35 Series O 9.53 (0.01) 9.52 Series R 9.24 - 9.24
Credit Risk (Note 5)
Percentage of Net Assets as at ————————————————————————————— Debt Securities by Credit Ratings June 30, 2017 December 31, 2016 —————————————————————————— ———————————— ———————————— % % Investment Grade – AAA 20.9 23.6 Investment Grade – AA 33.1 24.6 Investment Grade – A 39.9 49.0 Not Rated 2.3 2.7 96.2 99.9
If applicable, the counterparties to futures and OTC had a rating of at least A-1 or A.
This fund has no investments in other mutual funds.
Credit ratings are obtained from recognized rating companies.
Interest Rate Risk (Note 5)
Debt Securities by Maturity Date June 30, 2017 December 31, 2016 —————————————————————————— ———————————— ———————————— $ $ Under One Year 324,649,576 404,004,186 From 1 Year to 3 Years 33,524,679 15,709,141 358,174,255 419,713,327
This fund has no investments in other mutual funds.
Based on the assumption that prevailing interest rates would vary of 0.25%, with all others variables held constant, net assets and results of the fund would have varied by approximately $379,809 ($326,112 as at December 31, 2016).
Concentration Risk (Note 5)
Percentage of Net Assets as at ————————————————————————————— Asset Mix June 30, 2017 December 31, 2016 —————————————————————————— ———————————— ———————————— % % Banker’s Acceptance 11.7 21.2 Canadian T-Bills 0.6 0.4 Cash and Other Net Assets 3.8 0.1 Commercial Papers 27.7 13.8 Corporate Bonds 40.5 44.6 Municipal Bonds 2.3 2.6 Provincial Bonds 6.0 - Provincial T-Bills 0.9 1.2 Short Term Notes 6.5 16.1
Fair Value of Financial Instruments Table (Note 5)
June 30, 2017 Level 1 Level 2 Level 3 Total —————————————————— ———————— ———————— ———————— ———————— $ $ $ $ Money Market n/a 176,380,070 n/a 176,380,070 Bonds and Debentures n/a 181,794,185 n/a 181,794,185 Total Investments n/a 358,174,255 n/a 358,174,255
During the period ended June 30, 2017, there were no significant transfers of investments between Level 1, Level 2 and Level 3.
December 31, 2016 Level 1 Level 2 Level 3 Total —————————————————— ———————— ———————— ———————— ———————— $ $ $ $ Money Market n/a 221,312,453 n/a 221,312,453 Bonds and Debentures n/a 198,400,874 n/a 198,400,874 Total Investments n/a 419,713,327 n/a 419,713,327
During the year ended December 31, 2016, there were no significant transfers of investments between Level 1, Level 2 and Level 3.
Positions Held by Related Parties (Note 8)
June 30, 2017 December 31, 2016 ———————————————————— ———————————————————— Units % Units % ———————— ———————— ———————— ———————— Series O 113 - 112 -
Losses (Note 9)
(in thousands canadian dollars) 2016 2015 ———————————— ———————————— $ $ Capital Losses 11,566 6,676
Income from Securities Lending (Note 2)
The following table shows a reconciliation of the total income generated from securities lending transactions of the Fund and the revenue from securities lending disclosed in the Fund’s Statement of Comprehensive Income. June 30, 2017 June 30, 2016 ———————————————————— ———————————————————— $ % $ % Total Income - - 2 100 Net Income Received by the Fund - - 1 50 Net Income Received by
Natcan Trust Company - - 1 50
11
4Short Term and Income Funds
The accompanying notes are an integral part of these financial statements.
Schedule of investments as at June 30, 2017 (in canadian dollars)
NBI Short Term Canadian Income Fund (continued) (formerly National Bank Short Term Canadian Income Fund)
Money Market (47.4%) Canadian T-Bills (0.6%)
Government of Canada 0.51%, due July 10, 2017 1,100,000 1,099,802 1,099,802 0.77%, due September 7, 2017 1,000,000 998,710 998,574
————————— ————————— 2,098,512 2,098,376
————————— ————————— Provincial T-Bills (0.9%)
Province of New Brunswick 1.71%, due August 3, 2017 500,000 499,355 499,230 Province of Quebec 0.85%, due June 1, 2018 3,000,000 2,975,610 2,975,610
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