Interim Financial Statements June 30, 2011

Transcription

Interim Financial Statements
June 30, 2011
LANDRY MORIN CANADIAN MOMENTUM FUND
LANDRY MORIN U.S. MOMENTUM FUND
LANDRY MORIN WORLD MOMENTUM FUND
LANDRY MORIN LONG SHORT MOMENTUM FUND
________________________________________________________________________________
Contents
FINANCIAL STATEMENTS & INVESTMENT PORTFOLIO
Manager’s Responsibility for Financial Reporting……………………………………..1
Landry Morin Canadian Momentum Fund…………………………………………......2
Landry Morin U.S. Momentum Fund…………………………………………………..7
Landry Morin World Momentum Fund…………………………………………….....12
Landry Morin Long Short Momentum Fund………………………………………….18
Notes to Financial Statements…………………………………………………………30
Manager’s Responsibility for Financial Reporting
The following financial statements have been prepared by the Manager, Landry Morin Inc. The Manager is
responsible for the integrity, objectivity and reliability of the data and declaration presented.
The Manager has taken all necessary measures to ensure that the financial information conveyed is relevant
and reliable. The financial statements were prepared in accordance with Canadian generally accepted
accounting principles (as described in note 2) using information available and includes certain amounts that
are based on the Manager’s best estimates and judgment.
1
Landry Morin Canadian Momentum Fund
Statements of Net Assets
As at June 30, 2011 (unaudited) and December 31, 2010
2011
Assets
Cash and cash equivalents
Investments
Accounts receivable relating to securities issued
Amounts receivable relating to portfolio assets sold
Amounts receivable relating to accrued income
Prepaid expenses
$
Liabilities
Accrued expenses
Liabilities for securities redeemed
Accrued management fees and performance fees
Liabilities for portfolio assets purchased
Total net assets and securityholders' equity
$
Total net assets and securityholders' equity, Series B
Securities Outstanding, Series B
Net assets per security, Series B
$
Total net assets and securityholders' equity, Series F
Securities Outstanding, Series F
Net assets per security, Series F
$
Total net assets and securityholders' equity, Series G
Securities Outstanding, Series G
Net assets per security, Series G
$
Total net assets and securityholders' equity, Series I
Securities Outstanding, Series I
Net assets per security, Series I
$
Total net assets and securityholders' equity, Series J
Securities Outstanding, Series J
Net assets per security, Series J
$
$
$
$
$
$
(See accompanying notes to financial statements)
Approved on behalf of Landry Morin Inc.
_________________________
Jean-Luc Landry
President & CEO
_________________________
Richard Morin
Vice President & COO
2
88,129
19,494,798
16,000
9,291
6,389
19,614,607
21,209
4,000
9,039
34,248
19,580,359
2010
$
$
186,995
20,457
9.14
$
9,759,720
510,282
19.13
$
848,909
67,027
12.67
$
3,097,509
249,691
12.41
$
5,687,226
633,994
8.97
$
$
$
$
$
$
142,119
20,282,567
30,000
4,453,759
383
10,550
24,919,378
26,713
664,030
11,559
5,217,898
5,920,200
18,999,178
81,534
8,000
10.19
10,378,933
489,952
21.18
212,807
15,128
14.07
3,133,483
229,438
13.66
5,192,421
525,400
9.88
Statements of Operations (unaudited)
For the Periods Ended June 30
2011
Investment income
Dividend revenue
Interest revenue
$
Expenses
Management fees (note 6)
Performance fees (note 6)
Audit fees
Independent Review Committee fees
Custodial fees
Legal fees
Securityholder reporting costs
Administration fees
Other fees
Net investment loss for the period
Realized and unrealized gain (loss) on investments and transaction costs
Net realized gain (loss)
Change in unrealized loss
Transaction costs (note 6)
Net gain (loss) on investments
60,177
60,177
2010
$
40,124
5,079
45,203
56,144
(2,274)
1,068
663
5,836
341
104,151
1,173
167,102
(106,925)
40,605
321
5,291
1,683
2,093
1,522
36,638
316
88,469
(43,266)
(38,041)
(1,762,634)
(17,447)
(1,818,122)
931,217
(255,181)
(10,391)
665,645
Increase (decrease) in net assets from operations
$
(1,925,047) $
622,379
Decrease in net assets from operations, Series B
Decrease in net assets from operations per security, Series B
$
(40,902) $
(1.69)
-
Increase (decrease) in net assets from operations, Series F
Increase (decrease) in net assets from operations per security, Series F
$
(997,880) $
(2.13)
460,498
1.00
Increase (decrease) in net assets from operations, Series G
Increase (decrease) in net assets from operations per security, Series G
$
(36,450) $
(1.19)
247
0.05
Increase (decrease) in net assets from operations, Series I
Increase (decrease) in net assets from operations per security, Series I
$
(293,731) $
(1.23)
161,634
0.63
Decrease in net assets from operations, Series J
Decrease in net assets from operations per security, Series J
$
(556,084) $
(0.89)
-
3
Statements of Changes in Net Assets (unaudited)
Net assets at the beginning of the period
Capital transactions
Proceeds from the issuance of securities of the investment fund
Aggregate amounts paid on redemption of securities of the investment fund
Net transfer of securities from other funds
Securities issued on reinvestment of distributions
Distributions:
Net investment income
Net assets at the end of the period
$
Net assets at the beginning of the period, Series B
Decrease in net assets from operations, Series B
Capital transactions, Series B
Net assets at the end of the period, Series B
$
Net assets at the beginning of the period, Series F
Capital transactions, Series F
Net transfer of securities (to) other funds
Distributions:
Net assets at the end of the period, Series F
$
Net assets at the beginning of the period, Series G
Capital transactions, Series G
Net assets at the end of the period, Series G
$
Net assets at the beginning of the period, Series I
Increase (decrease) in net assets from operations, Series I
Capital transactions, Series I
Distributions:
Net assets at the end of the period, Series I
$
Net assets at the beginning of the period, Series J
Decrease in net assets from operations, Series J
Capital transactions, Series J
Net assets at the end of the period, Series J
$
$
$
$
$
2011
18,999,178 $
(1,925,047)
2010
8,556,969
622,379
3,375,251
(956,566)
89,641
(2,732)
3,011,100
(1,262,023)
-
634
19,580,359 $
10,928,425
81,534 $
(40,902)
-
285,000
(138,637)
186,995 $
-
10,378,933 $
(997,880)
5,851,284
460,498
1,634,368
(433,105)
(822,596)
(621)
2,680,286
(697,069)
621
9,759,720 $
8,294,999
212,807 $
(36,450)
247
804,152
(143,448)
11,848
848,909 $
96,000
96,247
3,133,483 $
(293,731)
2,705,685
161,634
501,231
(241,376)
(2,111)
$
$
4
-
234,814
(564,954)
-
13
3,097,509 $
2,537,179
5,192,421 $
(556,084)
-
150,500
900,389
5,687,226 $
-
Statement of Investment Portfolio (unaudited)
As at June 30, 2011
Shares/
Units
Security
Average
Cost
Fair
Value
CANADIAN EQUITIES (99.5%)
Materials (34.8%)
First Quantum Minerals Ltd.
Ivanhoe Mines Ltd.
Lundin Mining Corp.
New Gold Inc.
Potash Corp. of Saskatchewan Inc.
Silver Wheaton Corp.
14,900 $
25,300
168,500
120,000
11,400
32,800
1,743,506 $
637,276
1,177,983
1,215,352
668,061
1,040,426
6,482,604
2,094,940
616,308
1,245,215
1,190,400
626,544
1,043,696
6,817,103
Energy (24.0%)
Baytex Energy Corp.
Precision Drilling Corp.
Uranium One Inc.
Vermilion Energy Inc.
34,200
131,500
165,800
12,900
1,944,368
1,855,064
895,376
655,446
5,350,254
1,794,474
1,816,015
439,370
656,223
4,706,082
39,800
1,182,630
1,182,630
1,994,378
1,994,378
284,600
1,991,333
1,991,333
1,969,432
1,969,432
Information Technology (10.0%)
CGI Group Inc., Class 'A'
Open Text Corp.
SXC Health Solutions Corp.
29,200
10,200
11,300
652,474
644,181
647,434
1,944,089
694,960
627,810
640,032
1,962,802
Consumer Staples (6.2%)
Saputo Inc.
Viterra Inc.
13,300
57,200
632,176
678,336
1,310,512
617,120
596,596
1,213,716
Exchange Traded Funds (4.2%)
iShares S&P/TSX 60 Index Fund
43,500
838,059
838,059
831,285
831,285
Health Care (10.2%)
Valeant Pharmaceuticals International Inc.
Industrials (10.1%)
Bombardier Inc., Class 'B'
TOTAL CANADIAN EQUITIES
19,099,481
19,494,798
(5,588)
$
TOTAL INVESTMENT PORTFOLIO (99.5%)
Cash and Cash Equivalents (0.5%)
Other Assets Less Liabilities (0.0%)
NET ASSETS AT FAIR VALUE (100.0%)
19,093,893 $
$
5
19,494,798
88,129
(2,568)
19,580,359
Fair Value of Financial Instruments
The following is a summary of the inputs used as of June 30, 2011 in valuing the Fund's financial assets and liabilities carried at fair value:
Financial Assets
Equities - Common shares
Total Financial Assets
June 30, 2011
December 31, 2010
Level 1 Quoted prices in
active markets for
identical assets
active markets for
identical assets
19,494,798
19,494,798
20,282,567
20,282,567
There were no significant transfers made between Levels 1 and 2 as a result of changes in the availability of quoted market prices or observable market inputs
during the period. In addition, there were no investments or transactions classified in Level 3 for the year period ended June 30, 2011 and December 31, 2010.
6
Landry Morin U.S. Momentum Fund
(in U.S. Dollars)
2011
Assets
Investments
Other receivables
$
Liabilities
Accrued expenses
$
$
$
$
$
_________________________
Jean-Luc Landry
President & CEO
_________________________
Richard Morin
7
20,277
3,596,550
908
2,110
3,619,845
14,256
2,275
16,531
3,603,314
2010
$
$
2,894,074
244,177
11.85
$
709,240
87,674
8.09
$
$
$
23,834
2,852,217
100,190
891,391
975
1,332
3,869,939
24,523
2,094
876,204
902,821
2,967,118
2,511,100
212,813
11.80
456,018
56,917
8.01
(in U.S. Dollars)
2011
Investment income
Dividend revenue
Less: foreign withholding taxes
$
Expenses
Audit fees
Custodial fees
Legal fees
Administration fees
Other fees
Net realized gain
Net gain on investments
18,793 $
(2,792)
16,001
2010
4,005
(859)
3,146
13,893
121
4,028
18,249
178
36,469
36,469
(20,468)
10,124
5,730
2,306
703
1,522
12,124
108
32,617
32,617
(29,471)
236,925
(221,573)
(1,835)
13,517
530,615
(514,335)
(1,614)
14,666
Decrease in net assets from operations
$
(6,951) $
(14,805)
Decrease in net assets from operations, Series F
Decrease in net assets from operations per security, Series F
$
(6,521) $
(0.03)
(11,614)
(0.06)
Decrease in net assets from operations, Series I
Decrease in net assets from operations per security, Series I
$
(430) $
(0.01)
(3,191)
(0.06)
8
(in U.S. Dollars)
Decrease in net assets from operations
$
Decrease in net assets from operations, Series F
$
Decrease in net assets from operations, Series I
$
9
$
$
$
2011
2,967,118 $
(6,951)
2010
2,821,202
(14,805)
760,468
(117,321)
3,603,314 $
953,061
(1,602,687)
2,156,771
2,511,100 $
(6,521)
2,367,270
(11,614)
465,000
(75,505)
2,894,074 $
934,000
(1,527,020)
1,762,636
456,018 $
(430)
453,932
(3,191)
295,468
(41,816)
709,240 $
19,061
(75,667)
394,135
As at June 30, 2011
(in U.S. Dollars)
Security
Average
Cost
Shares
Fair
Value
U.S. EQUITIES (96.3%)
Consumer Discretionary (32.4%)
Abercrombie & Fitch Co., Class 'A'
CBS Corp., Class 'B'
Goodyear Tire & Rubber Co. (The)
Netflix Inc.
Priceline.com Inc.
3,300
4,300
13,400
1,500
400
242,109
120,206
236,605
300,174
132,859
1,031,953
220,209
121,905
224,450
394,035
204,136
1,164,735
Energy (27.0%)
Anadarko Petroleum Corp.
Cabot Oil & Gas Corp.
Helmerich & Payne Inc.
National-Oilwell Varco Inc.
Tesoro Corp.
1,600
4,200
1,900
1,600
14,200
130,612
241,831
129,703
108,235
326,372
936,753
122,400
276,990
124,849
124,800
323,618
972,657
JDS Uniphase Corp.
NVIDIA Corp.
17,900
11,900
366,375
267,691
634,066
297,856
189,567
487,423
Health Care (7.4%)
Biogen Idec Inc.
2,500
239,989
266,575
Consumer Staples (6.6%)
Green Mountain Coffee Roasters Inc.
Whole Foods Market Inc.
1,400
1,800
113,041
118,165
231,206
124,810
114,210
239,020
Telecommunication Services (3.4%)
MetroPCS Communications Inc.
7,200
121,648
123,480
Materials (3.3%)
Cliffs Natural Resources Inc.
1,300
127,026
120,185
730
94,698
96,331
3,417,339
3,470,406
123,839
126,144
123,839
126,144
Exchange Traded Funds (2.7%)
Standard & Poor's 500 Depository Receipts, Series '1'
TOTAL U.S. Equities
FOREIGN EQUITIES (3.5%)
Baidu Inc., ADR
900
TOTAL FOREIGN EQUITIES
(724)
Other Assets Less Liabilities (-0.4%)
$
3,540,454 $
$
10
3,596,550
20,277
(13,513)
3,603,314
Financial Assets
Exchange Traded Funds
June 30, 2011
December 31, 2010
active markets for
identical assets
(in US dollars)
active markets for
identical assets
(in US dollars)
3,500,219
96,331
3,596,550
2,794,372
57,845
2,852,217
11
Landry Morin World Momentum Fund
(in U.S. Dollars)
2011
Assets
Investments
Margin Deposits
Derivatives
Other receivables
$
Liabilities
Accrued expenses
$
Total net assets and securityholders' equity, Series B
Securities Outstanding, Series B
Net assets per security, Series B
$
$
$
$
$
$
_________________________
Jean-Luc Landry
President & CEO
_________________________
Richard Morin
12
38,474
6,344,555
59,181
690
2,888
113,075
4,461
4,890
6,568,214
18,298
4,871
154,086
177,255
6,390,959
2010
$
$
95,407
7,853
12.15
$
5,763,519
748,360
7.70
$
532,033
46,784
11.37
$
$
$
$
19,776
4,857,203
37,639
6,129
30,288
933,332
1,095
4,055
5,889,517
27,362
3,146
993,621
1,024,129
4,865,388
85,245
7,138
11.94
4,424,269
587,186
7.53
355,874
31,931
11.15
(in U.S. Dollars)
2011
Investment income
Dividend revenue
Interest revenue
$
Expenses
Audit fees
Trustee fees
Custodial fees
Legal fees
Administration fees
Provision for income tax
Loss from derivatives
Other fees
Net investment income (loss) for the year
Realized and unrealized gain on investments and transaction costs
Net gain on investments
2010
130,738 $
0
(4,771)
125,967
19,262
203
(3,935)
15,530
22,058
156
225
255
39,499
57,411
206
119,810
6,157
10,988
5,554
544
832
235
1,184
18,288
14
328
37,967
(22,437)
230,220
(130,418)
(8,833)
90,969
(170,241)
(308,594)
(14,787)
(493,622)
$
97,126
$
(516,059)
Increase (decrease) in net assets from operations, Series B
Increase in net assets from operations per security, Series B
$
1,397
0.18
$
(12,089)
2.64
Increase (decrease) in net assets from operations per security, Series F
$
87,556
0.13
$
(465,565)
(1.23)
Increase (decrease) in net assets from operations per security, Series G
$
8,173
0.19
$
(38,405)
(1.80)
Increase (decrease) in net assets from operations, Series J
Increase (decrease) in net assets from operations per security, Series J
$
-
$
Increase (decrease) in net assets from operations, Series O
Increase (decrease) in net assets from operations per security, Series O
$
-
$
13
-
-
-
(in U.S. dollars)
$
Net assets at the beginning of the period, Series B
Increase (decrease) in net assets from operations, Series B
Capital transactions, Series B
Net assets at the end of the period, Series B
$
$
$
14
$
$
$
$
2011
4,865,388 $
97,126
2010
931,903
(516,059)
1,644,645
(216,200)
6,390,959 $
2,585,404
(124,041)
2,877,207
85,245 $
1,397
(12,089)
9,015
(250)
95,407 $
80,001
(25,000)
42,912
4,424,269 $
87,556
931,903
(465,565)
1,316,130
(64,436)
5,763,519 $
2,209,403
(49,041)
2,626,700
355,874 $
8,173
(38,405)
319,500
(151,514)
532,033 $
296,000
(50,000)
207,595
As at June 30, 2011
(in U.S. dollars)
Shares/
Units
Security
Canada (34.2%)
Landry Morin US Momentum Fund, Class 'F'
Lundin Mining Corp.
400
157,552
6,000
3,300
3,100
TOTAL CANADIAN EQUITIES
Average
Cost
Fair
Value
51,634
1,747,257
55,336
51,145
146,725
2,052,097
58,322
1,871,814
45,982
47,260
161,092
2,184,470
2,052,097
2,184,470
FOREIGN EQUITIES (65.2%)
United States (11.6%)
iShares MSCI ACWI Index Fund
iShares MSCI Japan Index Fund
iShares MSCI United Kingdom Index Fund
700
43,500
14,000
35,053
447,697
234,216
716,966
33,733
453,270
249,340
736,343
Australia (6.2%)
Atlas Iron Ltd.
Iluka Resources Ltd.
Lynas Corp. Ltd.
13,000
9,700
60,700
51,993
48,283
118,645
218,921
51,678
173,674
172,354
397,706
Germany (5.2%)
Arques Industries AG
Sky Deutschland AG
Suess MicroTec AG
16,700
35,000
3,500
101,698
140,797
52,971
295,466
92,084
188,673
50,888
331,645
Denmark (4.9%)
DSV AS
NKT Holding AS
Topdanmark AS
4,000
800
900
98,752
53,014
161,113
312,879
95,947
51,141
167,995
315,083
United Kingdom (4.8%)
ARM Holdings PLC
Cookson Group PLC
IMI PLC
16,400
9,200
3,100
105,208
105,306
55,391
265,905
154,813
99,264
52,400
306,477
16,900
6,400
1,500
102,415
52,667
157,531
312,613
97,797
51,727
154,472
303,996
6,800
5,900
156,476
150,722
307,198
136,609
166,512
303,121
7,200
60,300
28,300
98,372
100,604
108,945
307,921
106,643
100,404
93,350
300,397
France (4.8%)
Alcatel SA, Series 'A'
Altran Technologies SA
Arkema
Norway (4.7%)
Aker Solutions ASA
TGS Nopec Geophysical Co. ASA
Mexico (4.7%)
Alfa SA, Series 'A'
Controladora Commerciale Mexicana SA de CV
Grupo Carso SAB de CV, Series 'A1'
15
Shares/
Units
Average
Cost
Fair
Value
1,900
3,200
109,684
168,814
278,498
92,595
203,494
296,089
1,700
5,000
120,617
146,546
267,163
147,021
131,393
278,414
Italy (4.1%)
EXOR SPA
Pirelli & C., SPA
Saipem SPA
3,100
10,500
1,000
92,877
106,681
53,263
252,821
96,938
113,433
51,483
261,854
Hong Kong (4.0%)
Brilliance China Automotive Holdings Ltd.
Galaxy Entertainment Group Ltd.
GCL Poly Energy Holdings Ltd.
SJM Holdings Ltd.
Xinyi Glass Holding Co. Ltd.
500
48,000
91,000
21,000
54,000
437
105,641
54,519
51,234
62,969
274,800
561
102,238
46,935
49,699
53,481
252,914
4,500
56,079
44,866
46,000
50,491
31,180
3,917,721
4,160,085
Security
Switzerland (4.6%)
Actelion Ltd., Registered
Compagnie Financière Richemont SA
Austria (4.4%)
Schoeller-Bleckmann Oilfield Equipment AG
Zumtobel AG, Bearer
Netherlands (0.7%)
STMicroelectronics NV
China (0.5%)
Dongyue Group
TOTAL FOREIGN EQUITIES
DERIVATIVES (0.0%)
Currency Futures (0.0%)
Short Positions (0.0%)
E-Micro USD/JPY Currency Futures March 2011
at JPY 80.43. Current Value (18,498,900)
E-Micro EUR/USD Currency Futures March 2011
at USD $1.4488 Current Value $(615,740)
Mexican Peso Currency Futures March 2011
at USD $8.4825. Current Value $(254,475)
(23)
(2,206)
(34)
3,796
(6)
(900)
TOTAL DERIVATIVES
690
(4,813)
$
Margin Deposits (0.9%)
Other Assets Less Liabilities (-0.9%)
5,965,005
$
$
16
6,345,245
59,181
38,474
(51,941)
6,390,959
Financial Assets
Exchange Traded Funds
Futures
Financial Liabilities
Futures
Total Financial Liabilities
June 30, 2011
December 31, 2010
active markets for
identical assets
(in US dollars)
active markets for
identical assets
(in US dollars)
5,608,212
736,343
3,796
6,348,351
3,441,636
1,415,566
8,317
4,865,519
(3,106)
(3,106)
Total Financial Assets and Liabilities
6,345,245
(2,188)
(2,188)
4,863,331
17
Landry Morin Long Short Momentum Fund
2011
Assets
Investments
Other receivables
Prepaid expenses
$
Liabilities
Accrued expenses
$
Total net assets and securityholders' equity, Series A
Securities Outstanding, Series A
Net assets per security, Series A
$
$
$
$
$
$
$
$
_________________________
Jean-Luc Landry
President & CEO
_________________________
Richard Morin
18
18,703,722
713,094
4,794,130
204,738
14,236
24,429,920
52,958
25,624
4,577,597
4,656,179
19,773,741
2010
$
$
24,950
3,950
6.32
$
13,877,404
1,590,022
8.73
$
236,803
22,438
10.55
$
5,634,584
885,853
6.36
$
$
$
$
$
208,810
20,789,381
5,000
10,796,410
85,486
14,565
31,899,652
71,292
27,271
11,395,046
11,493,609
20,406,043
52,043
8,638 6
6.02
14,425,351
1,741,933
8.28
397,819
39,629
10.04
5,530,830
921,256
6.00
2011
Investment income
Dividend revenue
Interest revenue
Income from derivatives
$
Expenses
Performance fees (note 6)
Audit fees
Trustee fees
Custodial fees
Legal fees
Administration fees
Provision for income tax
Short borrow fees
Carrying charges
Other fees
Amounts that would otherwise have been payable by
the investment fund that were paid by the manager
Change in unrealized gain (loss)
Net gain (loss) on investments
2010
91,867 $
183,351
(16,252)
258,966
15,734
1,324
301,935
318,993
73,919
116
5,052
1,636
27,818
106,641
119,755
91,587
426,524
98,006
2,214
9,493
7,196
6,979
3,989
58,631
14,744
383,659
100
585,011
426,524
(167,558)
585,011
(266,018)
(1,178,811)
2,422,389
(62,458)
1,181,120
2,781,225
(744,260)
2,036,965
Increase in net assets from operations
$
1,013,562
$
1,770,947
Increase in net assets from operations, Series A
Increase in net assets from operations per security, Series A
$
1,488
0.20
$
5,455
0.46
Increase in net assets from operations, Series F
Increase in net assets from operations per security, Series F
$
686,445
0.42
$
1,305,081
0.60
Increase in net assets from operations, Series G
Increase in net assets from operations per security, Series G
$
8,193
0.27
$
7,808
30
Increase in net assets from operations, Series I
Increase in net assets from operations per security, Series I
$
317,436
0.35
$
452,603
0.45
19
Increase in net assets from operations
$
Net assets at the beginning of the period, Series A
Increase in net assets from operations, Series A
Capital transactions, Series A
Net assets at the end of the period, Series A
$
Increase in net assets from operations, Series F
$
Increase in net assets from operations, Series G
$
Increase in net assets from operations, Series I
$
20
$
$
$
$
$
2011
20,406,043 $
1,013,562
2010
28,645,201
1,770,947
1,006,433
(2,574,504)
(77,793)
19,773,741 $
2,143,163
(9,201,152)
23,358,159
52,043 $
1,488
81,992
5,455
(28,581)
24,950 $
(33,937)
53,510
14,425,351 $
686,445
22,920,303
1,305,081
303,998
(1,460,597)
(77,793)
13,877,404 $
687,500
(8,160,733)
16,752,151
397,819 $
8,193
53,000
(222,209)
236,803 $
7,808
389,600
(5,000)
392,408
5,530,830 $
317,436
5,642,906
452,603
649,435
(863,117)
5,634,584 $
1,066,063
(1,001,482)
6,160,090
Statement of Investment Portfolio
As at June 30, 2011 (Unaudited)
Security
JAPANESE EQUITIES (4.3%)
Long Position (9.1%)
ARC Land Sakamoto Co. Ltd.
ARCS CO. LTD.
AT-Group Co. Ltd.
Belluna Co. Ltd.
Century Leasing System Inc.
Coca-Cola Central Japan Co. Ltd.
cocokara fine HOLDINGS Inc.
CREATE S D CO. LTD.
HANWA Co. Ltd.
Hosiden Corp.
IT Holdings Corp.
ITC NETWORKS CORP.
ITOCHU ENEX Co. Ltd.
Iwatani International Corp.
J-Oil Mills Inc.
Kajima Corp.
KASUMI CO. LTD.
Keiyo Co. Ltd.
KURABO INDUSTRIES Ltd.
KYOKUYO CO. LTD.
Maeda Corp.
Maeda Road Construction Co. Ltd.
Meiji Holdings Co. Ltd.
Mikuni Coca-Cola Bottling Co. Ltd.
Mitsui Home Co. Ltd.
NACHI-FUJIKOSHI CORP.
NEC Capital Solutions Ltd.
NEC Mobiling Ltd.
NEC Networks & System Integration Corp.
Nippon Paper Group Inc.
Nippon Steel Trading Co. Ltd.
OKUWA CO. LTD.
Relo Holdings Inc.
Sakata Inx Corp.
SAN-AI OIL Co. Ltd.
Sanrio Co. Ltd.
SENKO Co. Ltd.
ShinMaywa Industries Ltd.
Sinanen Co. Ltd.
Units/
Contracts
1,747
1,188
898
3,309
1,008
1,557
1,008
918
2,694
2,016
1,747
3,584
3,494
5,490
5,490
7,286
3,764
4,133
10,082
9,184
5,490
1,796
459
2,296
2,694
84,000
1,188
639
1,557
729
5,490
1,796
1,008
2,694
2,694
4,500
5,490
4,592
4,592
21
Average
Cost
$
22,976
18,296
10,817
20,313
17,762
20,981
22,178
20,457
13,034
20,740
20,479
21,566
19,643
17,511
17,276
19,343
21,053
21,722
18,958
20,430
18,123
15,690
20,336
20,509
14,825
450,419
19,105
19,991
21,044
18,501
17,415
19,148
18,860
14,120
13,802
113,079
18,659
19,447
21,046
Fair
Value
$
26,389
17,831
10,699
20,681
17,370
19,835
24,465
19,363
11,364
17,491
14,823
21,500
18,497
18,632
15,483
19,939
20,421
22,028
19,277
20,084
16,402
16,698
18,540
19,179
12,910
474,806
15,034
20,641
20,839
15,507
14,696
17,256
20,574
11,976
14,777
168,050
17,911
16,682
18,932
Security
Starzen Company Ltd.
Sumikin Bussan Corp.
Taihei Kogyo Co. Ltd.
Taisei Corp.
Takuma Co. Ltd.
TOHO Co. Ltd.
TOKYU COMMUNITY CORP.
TOMOKU CO. LTD.
Toppan Printing Co. Ltd.
Valor Co. Ltd.
Yokohama Reito Co. Ltd.
Short Position (-4.8%)
CMK Corp.
eAccess Ltd.
Hokuriku Electric Power Co.
Mitsumi Electric Co. Ltd.
Units/
Contracts
6,388
7,286
2,694
7,286
63,000
5,490
639
6,388
1,796
2,386
2,935
(48,000)
(400)
(9,400)
(47,000)
NORWEGIAN EQUITIES (4.3%)
AF Gruppen ASA
Aker Solutions ASA
Bonheur ASA
Statoil Fuel & Retail ASA
TGS Nopec Geophysical Co. ASA
2,990
14,900
682
17,000
18,900
Fred. Olsen Energy ASA
(4,700)
UNITED KINGDOM EQUITIES (2.1%)
Aviva PLC
Balfour Beatty PLC
Beazley PLC
BT Group PLC
Chaucer Holdings PLC
Dairy Crest Group PLC
FirstGroup PLC
Go-Ahead Group PLC (The)
Interserve PLC
J Sainsbury PLC
JD Wetherspoon PLC
Kesa Electricals PLC
Legal & General Group PLC
Marks & Spencer Group PLC
2,950
3,808
10,757
7,262
25,286
3,294
3,394
1,029
4,653
3,447
2,917
10,026
11,296
3,605
22
Average
Cost
18,751
17,562
12,626
17,253
301,687
20,248
19,447
18,581
16,281
23,566
20,300
1,745,956
Fair
Value
17,558
16,891
11,203
15,934
305,663
20,141
19,258
16,336
13,328
31,963
18,835
1,794,692
(155,059)
(179,486)
(152,909)
(499,378)
(986,832)
(154,875)
(172,083)
(172,430)
(445,397)
(944,785)
759,124
849,907
22,073
331,043
19,575
159,425
470,298
1,002,414
26,783
288,648
16,929
159,161
514,360
1,005,881
(161,190)
(161,190)
(161,303)
(161,303)
841,224
844,578
20,815
20,063
20,615
21,058
20,816
20,226
19,901
21,721
21,039
20,386
20,572
20,984
20,343
20,616
20,066
18,202
20,784
22,673
20,765
18,884
17,927
25,175
23,232
17,587
19,493
21,391
20,688
20,187
Security
Morgan Sindall Group PLC
Royal Dutch Shell PLC, Class 'B'
Scottish and Southern Energy PLC
Smiths News PLC
WH Smith PLC
WS Atkins PLC
Units/
Contracts
Average
Cost
Fair
Value
1,834
592
1,101
13,368
2,782
1,851
19,620
20,662
21,329
20,387
20,867
20,752
412,772
17,973
20,377
23,763
18,124
21,117
21,452
409,860
AUSTRALIAN EQUITIES (1.5%)
Andritz AG
Atlas Iron Ltd.
Iluka Resources Ltd.
Lynas Corp. Ltd.
Schoeller-Bleckmann Oilfield Equipment AG
voestalpine AG
Zumtobel AG, Bearer
1,600
50,000
36,500
232,300
4,100
3,000
5,600
159,066
192,833
285,864
453,350
335,526
159,899
159,569
1,746,107
158,955
191,665
630,186
636,055
341,921
159,787
141,906
2,260,475
Bluescope Steel Ltd.
Intercell AG
Leighton Holdings Ltd.
Paladin Resources Ltd.
Raiffeisen International Bank-Holding AG
RHI AG
Telekom Austria AG
West Australian Newspapers Holdings Ltd.
(156,000)
(26,500)
(9,100)
(141,000)
(4,400)
(11,200)
(13,800)
(94,000)
(194,092)
(376,682)
(223,755)
(403,145)
(227,934)
(337,000)
(183,740)
(460,952)
(2,407,300)
(195,840)
(106,160)
(196,041)
(367,129)
(218,532)
(325,970)
(170,485)
(393,353)
(1,973,510)
(661,193)
Lundin Mining Corp.
Cameco Corp.
Kinross Gold Corp.
PetroBakken Energy Ltd.
Research In Motion Ltd.
Semafo Inc.
286,965
2,100
34,300
19,000
17,600
263,392
302,203
285,285
795,343
1,646,223
295,260
253,477
262,390
881,936
1,693,063
(11,000)
(19,400)
(16,000)
(13,000)
(36,100)
(297,825)
(296,084)
(290,377)
(566,375)
(290,966)
(1,741,627)
(279,840)
(295,462)
(211,840)
(362,440)
(267,140)
(1,416,722)
(95,404)
23
276,341
Security
Units/
Contracts
Average
Cost
FRANCE EQUITIES (0.7%)
Alcatel SA, Series 'A'
Altran Technologies SA
Arkema
Ciments Français SA
Esso S.A.F.
Rallye SA
Suez Environnement SA
Veolia Environnement
Viel et Compagnie
Vinci SA
56,100
42,000
3,300
221
143
445
1,014
651
4,935
349
326,463
330,718
334,347
20,399
20,127
19,639
20,585
19,781
21,336
20,557
1,133,952
Areva SA
Carrefour SA
EDF Group
SR.Teleperformance
Ubisoft Entertainment SA
(4,500)
(7,700)
(4,300)
(5,600)
(18,000)
(161,091)
(337,753)
(168,552)
(158,681)
(175,135)
(1,001,212)
GERMAN EQUITIES (0.6%)
Allianz AG, Registered
Arques Industries AG
Deutsche Telekom AG, Registered
Hannover Rueckversicherungs AG, Registered
KHD Humboldt Wedag International AG
Munchener Rueckversicherungs-Gesellschaft AG, Registered
Sky Deutschland AG
Suess MicroTec AG
Wuerttembergische Lebensversicherung AG, Series 'D'
ADVA AG Optical Networking
Celesio AG
Phoenix Solar AG
Praktiker Bau- und Heimwerkermaerkte Holding AG, Class 'A'
RWE AG, Class 'A'
Wincor Nixdorf AG
SPAIN (0.2%)
Ferrovial SA
Repsol YPF SA
Fair
Value
313,050
327,341
327,706
22,534
18,757
17,830
19,516
17,717
24,169
21,570
1,110,190
(162,012)
(305,180)
(163,175)
(158,832)
(174,140)
(963,339)
132,740
146,851
148
66,600
1,527
361
2,058
130
120,800
11,900
788
20,436
386,680
20,684
19,747
19,791
20,108
475,231
174,481
20,284
1,157,442
19,881
354,123
23,001
18,185
17,278
19,145
627,945
166,844
19,737
1,266,139
(31,200)
(9,900)
(7,700)
(23,000)
(3,700)
(2,700)
(230,254)
(189,465)
(220,975)
(187,272)
(225,089)
(181,022)
(1,234,077)
(186,850)
(193,105)
(185,101)
(188,849)
(198,780)
(188,521)
(1,141,206)
1,713
647
24
(76,635)
124,933
20,482
20,696
41,178
20,892
21,655
42,547
Security
HONG KONG (0.2%)
iShares MSCI Hong Kong Index Fund
Units/
Contracts
ITALIAN EQUITIES (0.1%)
Davide Campari-Milano SPA
Enel SPA
EXOR SPA
Hera SPA
Pirelli & C., SPA
Banco Popolare Scarl
Mediaset SPA
UBI Banca - Unione di Banche Italiane SCPA
UBI Banca - Unione di Banche Italiane SCPA, Rights, 2011/06/24
IRELAND (0.1%)
Greencore Group PLC
Short Position (0.0%)
Greencore Group PLC
Fair
Value
2,262
42,738
40,309
895
392
19,517
20,350
39,867
17,144
18,512
35,656
1,905
25,999
25,222
20,000
3,606
9,800
8,918
49,600
158,786
20,958
302,535
20,204
494,650
997,133
158,675
22,625
295,508
18,206
516,704
1,011,718
NETHERLAND EQUITIES (0.2%)
Grontmij NV, CVA
Hunter Douglas NV
SINGAPORE (0.1%)
iShares MSCI Singapore Index Fund
Average
Cost
(158,000)
(36,000)
(86,000)
(55,204)
(463,613)
(162,445)
(640,900)
(1,266,958)
(352,183)
(163,309)
(467,865)
(4,944)
(988,301)
(269,825)
23,417
14,278
21,290
19,299
(1,148)
(1,776)
(1,585)
19,514
17,714
SWEDEN (0.1%)
Peab AB
2,383
19,357
16,467
SWISS EQUITIES (0.1%)
Compagnie Financière Richemont SA
Compagnie Financiere Tradition SA
Highlight Communications AG
Syngenta AG
4,300
161
3,326
400
242,174
20,420
20,457
129,043
412,094
263,683
19,746
20,840
128,374
432,643
25
Security
Novartis AG, Registered
Transocean Ltd.
Units/
Contracts
(2,300)
(4,400)
A.P. Moller - Maersk AS, Class 'B'
Christian Hansen Holdings A/S
FLSmidth & Co. AS
Vestas Wind Systems AS
(126,202)
(283,817)
(410,019)
iShares MSCI South Korea Index Fund
BERMUDA EQUITIES (-2.2%)
Frontline Ltd.
U.S. EQUITIES (-10.1%)
Ameren Corp.
Atmos Energy Corp.
Avista Corp.
Baker Hughes Inc.
Barnes & Noble Inc.
Black Hills Corp.
(135,899)
(280,406)
(416,305)
16,338
583
17,344
12,766
6,600
661
6,500
2,600
2,700
156,748
19,669
164,417
166,921
464,354
972,109
152,661
17,546
164,614
160,273
485,992
981,086
(20)
(8,600)
(2,300)
(18,900)
(165,634)
(187,356)
(187,370)
(523,735)
(1,064,095)
(91,986)
SOUTH KOREAN EQUITIES (0%)
DC Chemical Co. Ltd.
Hyundai Hysco
S-Oil Corp.
Fair
Value
2,075
ISREAL (0.1%)
IDB Holding Corp. Ltd.
DENMARK (0.0%)
DSV AS
East Asiatic Co. Ltd. AS (AS det Ostasiatiske Kompagni)
H. Lundbeck AS
NKT Holding AS
Topdanmark AS
Average
Cost
(166,434)
(197,308)
(188,465)
(424,401)
(976,608)
4,478
400
7,200
3,900
201,123
332,313
465,271
998,707
145,716
331,930
484,742
962,388
(15,600)
(868,796)
(978,402)
129,911
(16,014)
(30,700)
(718,633)
(429,620)
575
504
715
3,300
1,040
533
16,354
16,471
16,236
235,254
16,425
16,569
15,897
15,805
17,678
230,677
16,638
15,383
26
Security
Cal-Maine Foods Inc.
CenterPoint Energy Inc.
Central Vermont Public Service Corp.
Christopher & Banks Corp.
CMS Energy Corp.
ConAgra Foods Inc.
ConocoPhillips
Constellation Energy Group Inc.
CoreLogic Inc.
Deluxe Corp.
DTE Energy Co.
Federal Signal Corp.
Fidelity National Financial Inc., Class 'A'
FirstEnergy Corp.
Halliburton Co.
Harsco Corp.
Hawaiian Electric Industries Inc.
Hot Topic Inc.
Huntington Ingalls Industries Inc., Callable
iShares MSCI Australia Index Fund
Laclede Group Inc. (The)
Lockheed Martin Corp.
MeadWestvaco Corp.
Mercury General Corp.
National-Oilwell Varco Inc.
Netflix Inc.
Nicor Inc.
NiSource Inc.
Northrop Grumman Corp.
NorthWestern Corp.
NV Energy Inc.
NVIDIA Corp.
Oneok Inc.
Overseas Shipholding Group Inc.
Pepco Holdings Inc.
PNM Resources Inc.
Priceline.com Inc.
R.R. Donnelley & Sons Co.
Raytheon Co.
RPM International Inc.
Snyders-Lance Inc.
Sonoco Products Co.
Standard Register Co. (The)
Supervalu Inc.
UIL Holdings Corp.
United Online Inc.
Unitrin Inc.
Units/
Contracts
574
1,036
762
2,830
851
726
236
508
822
666
357
2,321
1,162
422
5,000
516
666
3,009
43
5,477
423
210
572
386
9,900
1,900
332
888
241
583
1,145
25,500
283
500
885
1,254
900
928
324
707
786
461
5,120
2,201
544
2,292
608
27
Average
Cost
16,319
16,777
16,403
16,219
16,638
16,253
16,904
16,423
16,524
16,325
16,554
16,209
15,673
16,549
233,528
16,692
16,626
16,400
1,607
136,683
16,113
16,410
16,417
16,425
658,127
457,995
16,796
16,578
16,740
16,505
16,500
569,175
16,705
16,661
16,478
16,386
402,014
16,488
16,235
16,607
16,344
16,429
16,479
16,099
16,464
16,260
16,402
Fair
Value
17,646
19,281
25,586
16,128
16,117
18,027
17,075
18,507
12,896
15,516
17,140
14,570
17,256
17,925
245,414
16,131
15,163
21,501
1,411
137,160
15,341
16,352
18,329
14,673
744,632
481,293
17,435
17,203
16,042
18,586
16,485
391,713
20,151
12,435
16,590
20,170
442,909
17,531
15,500
15,653
16,356
15,763
15,256
19,930
16,634
13,239
17,343
Security
Universal Corp.
Verizon Communications Inc.
WGL Holdings Inc.
Williams Cos. Inc.
Avon Products Inc.
Cisco Systems Inc.
Goldman Sachs Group Inc. (The)
Google Inc., Class 'A'
Hewlett-Packard Co.
iShares 100% Hedged to CAD Dollars Index Fund
iShares CDN S&P 500 Hedged to Canadian Dollars Index Fund
iShares MSCI Japan Index Fund
PowerShares QQQ Fund, Series '1'
Royal Caribbean Cruises Ltd.
GERMANY BONDS (-0.1%)
Q-Cells SE, Convertible, Callable, 6.75%, 2015/10/21
Units/
Contracts
Average
Cost
Fair
Value
428
462
455
7,800
16,256
16,497
16,447
240,321
3,723,968
15,514
16,537
16,796
225,872
3,710,791
(8,800)
(28,400)
(1,700)
(500)
(6,600)
(63,570)
(54,100)
(62,241)
(25,400)
(9,800)
(240,525)
(513,665)
(231,758)
(258,058)
(238,952)
(1,194,093)
(823,770)
(667,744)
(1,358,421)
(366,962)
(5,893,948)
(237,858)
(427,497)
(218,192)
(244,161)
(232,300)
(1,158,245)
(819,074)
(625,998)
(1,396,848)
(354,958)
(5,715,131)
(2,169,980)
(2,004,340)
(169)
(11,281)
(3,032)
TOTAL LONG POSITION
TOTAL SHORT POSITION
16,156,650
16,831,192
(17,756,632)
(16,118,098)
(11,142)
$
Cash and cash equivalents (94.6%)
Other assets less liabilities (1.8%)
(1,611,124)
$
$
28
713,094
18,703,722
356,925
19,773,741
June 30, 2011
December 31, 2010
Level 2 Securities that
Level 2 Securities that are
are valued based on
valued based on inputs
inputs other than quoted
other than quoted prices
prices that are
that are observable, either
observable, either
directly as prices or
directly as prices or
active markets for
indirectly as derived from
active markets for
indirectly as derived from
identical assets
prices.
identical assets
prices.
Financial Assets
Short-Term Investments
Investment Funds
Futures
16,195,137
16,195,137
Financial Liabilities
Bonds
Total Financial Liabilities
(16,101,873)
(16,101,873)
Total Financial Assets and Liabilities
18,758,987
636,055
19,395,042
(4,944)
(11,281)
(16,225)
93,264
19,378,817
21,038,436
17,990,622
39,029,058
-
(18,225,734)
(18,225,734)
(13,944)
(13,944)
20,803,324
(13,944)
29
________________________________________________________________________________
Notes to the Financial Statements
June 30, 2011
1.
ESTABLISHMENT OF THE FUNDS
The Landry Morin Funds (the “Funds”) consist of a group of funds that were established April 15, 2003 under the
laws of the Province of Ontario. The Funds are governed by an Amended and Restated Trust Agreement date March
28, 2011. Landry Morin Inc, a company duly incorporated under the Canada Business Corporation Act, is the
manager (the “Manager”) of the Funds and Computershare Trust Company of Canada is the Trustee (the “Trustee”).
The Manager is responsible for managing the Funds in accordance with the established investment policies as
follows:
a)
Landry Morin Canadian Momentum Fund invests primarily in Canadian securities
b) Landry Morin U.S. Momentum Fund invests primarily in U.S. securities
c)
Landry Morin World Momentum Fund invests primarily in Canadian, U.S., European and other developed
market issuers.
d) Landry Morin Long Short Momentum Fund invests in a market neutral portfolio of primarily large
capitalization issuers in Canadian, U.S. and other developed markets.
Units of the Canadian Momentum Fund, the US Momentum Fund and the World Momentum Fund are offered
pursuant to a prospectus dated April 5th 2011 and units of the Long Short Momentum Fund are offered pursuant to a
Confidential Offering Memorandum dated December 15th 2010 (the “Offering Documents”).
2.
SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in accordance with Canadian Generally Accepted Accounting
Principles (“GAAP”). The following is a summary of significant accounting policies followed by the Funds in the
preparation of these financial statements.
Valuation of financial instruments
Market value is determined as follows:
 Short-term investments are valued at amortized cost which approximates their fair value.
 Securities listed upon a recognized public stock exchange are valued at their closing bid prices on the
financial statement date. Securities with no available bid prices are valued at their closing sale prices.
The Long Short Momentum Fund (as prescribed by the Confidential Offering Memorandum) may make short sales
whereby a security that it does not own is sold in anticipation of a decline in the market value of the security.
Securities which are sold short are valued at their ask prices on the financial statement date. Securities with no
available ask prices are valued at their closing price reported by the principal securities exchange on the financial
statement date. To enter a short sale, the Fund may need to borrow the security for delivery to the buyer. While the
transaction is open, the Fund will also incur a liability for any paid dividends or interest which is due to the lender of
the security.
The bid or ask price used is the one obtained on the primary exchange for the security. In the case of dealer markets,
the price obtained may not represent the most advantageous available in an active market.
30
________________________________________________________________________________
June 30, 2011
Use of estimates
The preparation of financial statements requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of changes in net assets during the period. Actual results could differ from those
estimates.
Other financial assets and liabilities
The fair values of other financial assets and liabilities approximate their carrying value due to the short-term nature of
these instruments.
Investment transactions and income
Investment transactions are accounted for as of the trade date. Realized gains and losses from investment transactions
are calculated on an average cost basis. The difference between market value and average cost, as recorded in the
financial statements, is included in the statements of operations as part of unrealized gain (loss) on investments.
Interest income is accrued daily and dividend income is recognized on the ex-dividend date.
Foreign currency translation
Investments and other assets and liabilities denominated in foreign currencies are translated into Canadian dollars
(except for Landry Morin U.S. Momentum Fund and Landry Morin World Momentum Fund, which are valued in
U.S. dollars) at the exchange rates prevailing on the valuation date. Investment transactions, income and expenses are
translated at the exchange rates prevailing on the respective dates of such transactions.
Net assets per security
Net assets per security represents net assets by series divided by the number of securities outstanding by series at
period end.
Increase (decrease) in net assets from operations per security
Increase (decrease) in net assets from operations per security in the Statements of Operations represents the increase
(decrease) in net assets from operations by series, divided by the average number of securities outstanding by series
during the period.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash and investments in short term instruments with maturity of less than 90
days. These short term investments are recorded at amortized cost which approximates current market value.
31
________________________________________________________________________________
June 30, 2011
3.
ADOPTION OF NEW ACCOUNTING STANDARDS
On January 1, 2009, the Funds adopted EIC-173, Credit Risk and the Fair Value of Financial Assets and Financial
Liabilities. EIC-173 clarifies how the Funds’ own credit risk and counterparty risk should be taken into account in
determining the fair value of financial instruments. The adoption of EIC-173 did not have an impact on the valuation
of the Funds’ financial instruments or its net assets.
On January 1, 2009 the Funds adopted the amendments to the Canadian Institute of Chartered Accountants ("CICA")
Section 3862, Financial Instruments – Disclosures (“Section 3862”). The amendments to Section 3862 requires the
Funds to present a classification of fair value measurements of each Fund’s investments based on a three level fair
value hierarchy and a reconciliation of transactions and transfers within that hierarchy. The hierarchy of fair
valuation inputs is summarized as follows:
 Level 1: securities that are valued based on quoted prices in active markets.
 Level 2: securities that are valued based on inputs other than quoted prices that are observable, either
directly as prices or indirectly as derived from prices.
 Level 3: securities that are valued with no observable market data.
Change in valuation methods may result in transfers into or out of an investment’s assigned level. The new reporting
standards do no impact the net asset value of the Funds or the net asset value per unit used to process capital unit
transactions.
The summary of fair value hierarchy is provided in the Supplementary Schedules following the statement of
investment portfolio to the financial statements for each Fund.
Effective September 8, 2008, amendments to National Instrument 81-106 (“NI 81-106”) came into force to address
certain implications of Section 3855. The amendments permit investment funds to report two different net asset
values: (i) one for financial statements, which will be prepared in accordance with GAAP including Section 3855
(and referred to as “net assets”); and (ii) another for all other purposes, including unit pricing for investor transactions
(referred to as “net asset value”. These amendments to NI 81-106 will not impact the Pricing NAV of the Funds nor
cause a significant change to the Funds’ current valuation practices.
For financial statement reporting purposes, the Funds are required to disclose the differences between net assets and
net asset value, including any differences in valuation principles or practices for the purposes of calculating net asset
value versus those required under GAAP.
32
________________________________________________________________________________
June 30, 2011
The difference between net assets and net asset value for each series of units of the Funds are as follows:
Net Asset
Value
Per Security
Section 3855
Adjustment Net Assets
Net Asset
Value
Per Security
Section 3855
Adjustment Net Assets
Series B
$
9.16 $
(0.02) $
Series F
$
19.17 $
(0.04) $
Series G
$
12.69 $
(0.02) $
Series I
$
12.43 $
(0.02) $
Series J
$
8.99 $
(0.02) $
9.14
19.13
12.67
12.41
8.97
$
$
$
$
$
10.21
21.22
14.09
13.68
9.90
$
$
$
$
$
(0.02)
(0.04)
(0.02)
(0.02)
(0.02)
$
$
$
$
$
10.19
21.18
14.07
13.66
9.88
Landry Morin U.S. Momentum Fund*
Series F
$
11.88 $
(0.03) $
Series I
$
8.11 $
(0.02) $
11.85
8.09
$
$
11.81
8.02
$
$
(0.01) $
(0.01) $
11.80
8.01
Landry Morin World Momentum Fund*
Series B
$
7.66 $
0.04 $
Series F
$
11.31 $
0.06 $
Series G
$
12.09 $
0.06 $
7.70
11.37
12.15
$
$
$
11.96
7.55
11.16
$
$
$
(0.02) $
(0.02) $
(0.01) $
11.94
7.53
11.15
Series A
$
6.29 $
0.03 $
6.32
Series F
$
8.69 $
0.04 $
8.73
Series G
$
10.51 $
0.04 $
10.55
Series I
$
6.33 $
0.03 $
6.36
$
$
$
$
6.05
8.32
10.08
6.03
$
$
$
$
(0.02)
(0.04)
(0.04)
(0.03)
6.03
8.28
10.04
6.00
$
$
$
$
* In US Dollars
4.
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
(a) Risk Management
The Funds’ investment activities expose them to a variety of financial risks. The Manager seeks to minimize
potential adverse effects of these risks for the Funds’ performance by employing professional, experienced portfolio
advisors, by daily monitoring of the Funds’ positions and market events, by diversifying their investment portfolio
within the constraints of the investment objective, and periodically may use derivatives to hedge certain risk
exposures. To assist in managing risks, the Manager maintains a governance structure that oversees the Funds’
investment activities and monitors compliance with the Funds’ stated investment strategy, internal guidelines and
securities regulations.
33
________________________________________________________________________________
June 30, 2011
The Funds’ investment objective seeks long term capital growth by investing directly or indirectly in exchange-listed
equity securities of Canadian, United States, European or other developed market issuers (refer to Note 1). The
portfolio manager, when investing, uses a proprietary methodology based primarily on price momentum as
investment criteria.
No changes affecting the overall level of risk of the Funds were made during the period. The risks of the Funds
remain as discussed in the Offering Documents. Significant risks that are relevant to the Funds are discussed below.
(b) Currency risk
Currency risk is the risk that financial instruments which are denominated in currencies other than the reporting
currency of a Fund will fluctuate due to changes in exchange rates. As at June 30, 2011, substantially all of the assets
of the Canadian and US Funds were invested in instruments denominated in their respective reporting currency. As at
June 30, 2011 and December 31, 2010 the World Momentum Fund had a currency exposure similar to the MSCI
World Index. The Long Short Momentum Fund had no material currency exposure.
(c) Interest rate risk
Interest rate risk arises on interest-bearing financial instruments such as bonds or debentures. The Funds invest the
majority of their cash in Canadian T-bills that have short maturity (1 year or shorter). As such, the Funds are not
subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates.
(d) Credit risk
Credit risk on financial instruments is the risk of a financial loss occurring as a result of the default of a counterparty
on its obligation to the Funds. Credit risk typically arises out of exposure to debt instruments, such as bonds, or
derivatives. As at June 30, 2011 and December 31, 2010, the Funds had no significant investments in debt
instruments. Credit and counterparty risk is managed by dealing with counterparties the manager believes to be
creditworthy.
(e) Liquidity risk
Liquidity risk is the possibility that investments in a fund cannot be readily converted into cash when required. The
Funds will endeavour to maintain sufficient liquidity to meet expenses and redemption of units. However,
unexpectedly heavy demand for redemptions of units could result in the Funds to dispose of investments at a time
when it is not optimal to do so in order to meet redemption request.
As at June 30, 2011 and December 31, 2010 the Funds directly or indirectly invest the majority of its assets in cash,
T-bills and investments that are traded in an active market and can readily be disposed of. Therefore, the Funds are
considered relatively liquid.
(f) Other market risk
Other market risk is the risk that the value of financial instruments will fluctuate as a result of changes in market
prices (other than those arising from interest rate risk or currency risk), whether caused by factors specific to an
individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. All
securities present a risk of loss of capital.
Because the Landry Morin Long Short Momentum Fund is dollar neutral (approximately equal amount invested in
long positions and short positions in each market it invests), it has shown low correlation with overall equity markets.
If equity prices on global stock exchanges had increased or decreased by 10% as at the year end, with all other
factors remaining constant, net assets of each Fund could possibly have increased or decreased by the amount shown
in the table below.
34
________________________________________________________________________________
June 30, 2011
Fund
Canadian Momentum Fund
US Momentum Fund
Impact on Net Assets
Reference index
(in thousand of dollars)
S&P/TSX 60 Total Return
Index
2,334*
S&P 100 Total Return Index
440*
MSCI World Index (with net
dividends reinvested)
752*
World Momentum Fund
Long Short Momentum
Fund
S&P500 Total Return Index
311*
*This estimate is based on the Funds’ historical beta with their respective reference index (using net monthly returns
since inception).
In practice, actual results may differ from this sensitivity analysis and the difference could be material.
5.
SECURITYHOLDERS’ EQUITY
Securities of the Funds are redeemable at the option of the holder in accordance with the provisions of the Trust
Agreement. Series B and G units are available to all investors. Series A, F, I and J units are offered only to certain
investors at the discretion of the Manager, including institutional investors or other eligible investors.
No series takes priority or preference over another and all series’ contribute in proportion to the allocation of the
Funds.
35
________________________________________________________________________________
June 30, 2011
The change in the number of securities is as follows as of June 30, 2011 and December 31, 2010:
SECURITYHOLDERS’ EQUITY
Average
Funds
Year
Beginning
Purchases
Reinvestm ents
Redem ptions
End of
num ber
of year
during year
during year
during year
year
of securities
Landry Morin Canadian Mom entum Fund
Series B
Series F
Series G
Series I
Series J
2010
2011
8,000
10,500
28,265
-
(2,500)
(15,808)
8,000
20,457
10,031
24,167
2010
373,218
193,173
3,786
(80,225)
489,952
477,732
2011
489,952
85,542
(29)
(65,183)
510,282
468,112
2010
-
15,128
-
-
15,128
9,081
2011
15,128
62,298
-
(10,399)
67,027
30,600
2010
272,935
86,140
472
(130,109)
229,438
250,391
2011
229,438
38,776
(154)
(18,368)
249,692
238,205
2010
2011
525,400
525,400
-
-
525,400
525,400
108,594
-
-
633,994
623,182
Landry Morin U.S. Mom entum Fund
Series F
Series I
2010
244,578
124,772
-
(156,537)
212,813
190,124
2011
212,813
37,651
-
(6,287)
244,177
222,423
2010
69,726
5,003
-
(17,812)
56,917
61,093
2011
56,917
35,818
-
(5,062)
87,673
77,277
5,750
Landry Morin World Mom entum Fund
Series B
Series F
Series G
2010
-
9,922
-
(2,784)
7,138
2011
7,138
736
-
(21)
7,853
7,306
2010
141,116
510,053
-
(63,983)
587,186
434,746
2011
587,186
169,518
-
(8,345)
748,360
678,752
2010
-
37,382
-
(5,451)
31,931
25,112
2011
31,931
27,848
-
(12,995)
46,784
43,508
10,265
Landry Morin Long Short Mom entum Fund
Series A
Series F
Series G
Series I
2010
14,143
-
-
(5,505)
8,638
2011
8,638
-
-
(4,688)
3,950
7,700
2010
2,904,283
154,155
-
(1,316,505)
1,741,933
2,086,276
2011
1,741,933
36,629
-
(188,540)
1,590,022
1,663,936
2010
-
50,564
-
(10,935)
39,629
34,605
2011
39,629
5,414
-
(22,604)
22,439
29,482
2010
2011
996,324
921,256
-
(312,292)
(145,582)
921,256
885,852
1,007,155
904,921
237,224
110,178
36
________________________________________________________________________________
June 30, 2011
6.
EXPENSES AND BROKERAGE COMMISSIONS
a) Expenses
In addition to management fees, performance fees, commissions on transactions and administration fees, each fund
assumes its own operating charges, which include, among other things, custody, filing and administration costs, as
well as legal and audit fees.
b) Transaction Costs
The total transaction costs paid by the Funds with respect to security transactions for the periods ended June 30, 2011
and June 30, 2010 are as follows:
Funds
Landry Morin Canadian Momentum
Landry Morin U.S. Momentum*
Landry Morin World Momentum*
Landry Morin Long Short Momentum
2011
$
17,447
1,835
8,259
62,458
2010
$
10,391
1,614
14,787
-
* In US Dollars
7.
DISTRIBUTIONS
Securityholders are entitled to distributions at year end. Net investment income and net capital gains realized on the
Funds are reinvested in additional securities of its own fund or at the option of the securityholders, paid in cash. The
distribution amounts are determined by the registrar and are allocated to the securityholders of each Fund.
At the valuation date, each securityholder of a Fund is entitled to receive an amount equal to the Fund’s net income
for the year, divided by the number of securities outstanding, and multiplied by the number of securities held by the
securityholder at fiscal year end.
Distributions paid in cash will be made in the respective currencies of a Fund.
Unless the securityholder provides written instructions to the registrar to receive distributions in cash, the amount of
the distribution will automatically be reinvested in additional securities of its own fund.
8.
INCOME TAX STATUS
The U.S. Momentum Fund is a unit trust while the Canadian Momentum Fund, the World Momentum Fund and the
Long Short Momentum Fund qualify as mutual fund trusts under the Income Tax Act (Canada). The Funds are
subject to federal and provincial taxes applicable on their assessed income, including taxable capital gains for the
fiscal year, so far as those were not distributed to the security holders. Unit trusts are subject to alternative minimum
tax.
37
________________________________________________________________________________
June 30, 2011
Tax loss carry forwards
The following Funds have accumulated net realized capital losses/non-capital losses that are available for utilization
against net realized gains or net income for tax purposes in future years as follows. Capital losses have no expiry
date. Non-capital losses can be carried forward for up to 20 years.
Total
Capital
Losses ($)
–
869,096
1,418,564
6,125,116
Landry Morin U.S. Momentum Fund*
Landry Morin World Momentum Fund*
Non-Capital Losses by Expiry Date ($)
2026
–
9,485
–
–
2028
–
32,713
76,032
–
2029
–
31,933
12,650
1,218,760
2030
–
–
75,306
336,340
* In US Dollars
9.
RELATED PARTY TRANSACTIONS
a) Management Fees
In consideration for management services and investment advice provided to the Funds, the Manager is entitled to a
management fee.
The management fee with respect to Series A securities is 1/12 of 2%, Series B securities is 1/12 of 2.25%, Series F
securities is 1/12 of 1%, and Series G securities is 1/12 of 1.5%, calculated on a daily basis to the net asset value of
the Funds and payable monthly. No management fee is charged to Series I and J securities; instead a negotiated fee is
paid by these unitholders to the Manager directly.
b) Performance Fees
The Manager receives a performance-based fee for the Funds. The Manager will charge a performance fee of 20% of
the return of the Funds in excess of their benchmark return. The performance fee is payable only if the Funds have
outperformed their benchmark since the last time a performance fee was paid. Performance fees are calculated daily
and crystallized and paid quarterly.
For performance fee calculation purposes, the benchmarks of the Funds are as follows:
Funds
Index
S&P/TSX60 Total Return Index (+ 2% for Class I
Securities)
S&P100 Total Return Index (+ 2% for Class I Securities)
MSCI World Index (with net dividends reinvested)
38
________________________________________________________________________________
June 30, 2011
c)
Higher of Three Month T- Bills or 5% (2% for Class I
Securities, Three Month T-Bills for Classes B and G)
Other
In the normal course of business many transactions between the Funds and some officers of the Fund Manager take
place. On June 30, 2011 and December 31, 2010 the percentages of net assets owned as a result of securities held by
related parties are as follows:
Funds
2011
2010
%
0.39
%
0.45
-
-
9.27
11.66
5.16
5.00
10. RESPONSIBILITY OF THE TRUSTEE
The trust must indemnify and save harmless the trustee, its affiliates or any director, officer, employee or agent of the
trustee from and against:
a)
all claims whatsoever, (including legal fees, other costs, charges and expenses in connection therewith)
brought, commenced or prosecuted against it for or in respect of any act, deed, matter or thing whatsoever
made, done, acquiesced in or omitted in or about or in relation to the execution of the trustee’s and
manager’s duties;
b) all other costs, charges, and expenses which it sustains or incurs in or about or in relation to the affairs of the
Funds and the execution of the trustee's and manager’s duties; and
c)
any personal liabilities of the trustee incurred in connection with the failure of any Fund, or the manager, on
behalf of the Funds, to report, remit or withhold taxes as required by the tax act or otherwise failing to
comply with the tax act, so long as the trustee has relied in good faith on the manager in the performance of
its duties hereunder and such personal liabilities have not been caused by the trustee’s bad faith, willful
misconduct, gross negligence, reckless disregard of its duties or the breach by the trustee of its standard of
care. This indemnification shall survive the resignation or removal of the Trustee or Manager and the
termination of this Master Trust Agreement solely to the extent that such liabilities have been incurred in
connection with taxation years occurring during the term of this Master Trust Agreement.
11. FUTURE ACCOUNTING STANDARDS
International Financial Reporting Standards (“IFRS”) will replace Canadian GAAP for publicly accountable
enterprises, which include investment funds and other reporting issuers. Under the previous transition rules for
publicly accountable enterprises the Funds would adopt IFRS for their fiscal period beginning January 1, 2011.
39
________________________________________________________________________________
June 30, 2011
On January 12, 2011, the Canadian Accounting Standards Board amended the requirement to prepare financial
statements in accordance with IFRS as issued by the International Accounting Standards Board, permitting
investment companies, which include investment funds, to defer adoption of IFRS to fiscal years beginning on or
after January 1, 2013. The Funds has elected to defer adoption of IFRS to January 1, 2013
In preparing to meet the requirements, the Manager has taken the following steps in managing the transition to IFRS:

Established a working group to identify key differences between Canadian GAAP and IFRS and to coordinate
the implementation of the transition plan,

Identified areas where changes in disclosure will be required under IFRS standards,

Evaluated current information technology & reporting systems for readiness in IFRS implementation,

Assessed the likely impacts on business activity and operational areas such as internal controls, staffing and
training requirements.
The major changes identified for IFRS financial statements include the addition of a Statement of cash flows and the
classification of unitholders’ equity (puttable instruments) as a liability within the statement of net asset’s, unless
certain conditions are met.
Based on the current evaluation of the differences between Canadian GAAP and IFRS, the adoption of IFRS is
expected to have no impact on the calculation of net assets or net asset value. IFRS is expected to affect the overall
presentation of financial statements and result in additional disclosure in the accompanying notes. However, the
Manager’s assessment may change if new standards are issued or if the interpretations of current standards are
revised.
12. COMPARATIVE FINANCIAL STATEMENTS
The comparative financial statements have been reclassified from statements previously presented to conform to the
presentation of the 2010 annual financial statements.
40
________________________________________________________________________________
June 30, 2011
MANAGER
Landry Morin Inc.
1010 Sherbrooke West, Suite 2105
Montreal, Quebec H3A 2R7
Tel: 514-985-1138
Fax: 514-282-1123
www.landrymorin.com
CUSTODIANS
J.P. Morgan
383 Madison Avenue
New York, NY, 10179
Tel: 212-272-2000
www.jpmorgan.com
CIBC Mellon Trust Company
320 Bay Street
P.O. Box 1
Toronto, Ontario M5H 4A6
Tel: 416-643-5500
Fax: 416-643-5501
www.cibcmellon.com
TRANSFER AGENT, REGISTRAR AND
VALUATION AGENT
CIBC Mellon Global Securities Services Company
320 Bay Street
P.O. Box 1
Toronto, Ontario M5H 4A6
Tel: 416-643-5500
Fax: 416-643-5501
www.cibcmellon.com
TRUSTEE
Computershare Trust Company of Canada
1500 University Street 7th Floor
Montreal, Quebec H3A 3S8
Tel: 514-982-7888
Fax: 514-982-7635
www.computershare.com
AUDITORS
KPMG LLP
Bay Adelaide Centre
333 Bay Street, Suite 4600
Toronto, Ontario M5H 2S5
www.kpmg.ca
41

Interim Financial Statements June 30, 2011

Transcription

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