marquest group of funds - Marquest Asset Management Inc.

Transcription

MARQUEST GROUP OF FUNDS
SEMI-ANNUAL REPORT
Year ended June 30, 2016
ANNUAL REPORT 2016
TABLE OF CONTENTS
Notice to Shareholders/Unitholders
2
Marquest Core Funds:
Marquest Money Market Fund
Marquest Short Term Income Fund (Corporate Class)*
Marquest Canadian Bond Fund
Marquest Canadian Fixed Income Fund
Marquest Monthly Pay Fund
Marquest Monthly Pay Fund (Corporate Class)*
Marquest Global Balanced Fund
Marquest American Dividend Growth Fund
Marquest American Dividend Growth Fund (Corporate Class)*
Marquest Small Companies Fund
Marquest Canadian Resource Fund
Marquest Canadian Resource Fund (Corporate Class)*
Marquest Covered Call Canadian Banks Plus Fund
Marquest Covered Call Canadian Banks Plus Fund (Corporate Class)*
3
8
13
18
23
30
35
42
48
54
60
66
71
76
*All "Corporate Class" Funds are a series of shares of Marquest Corporate Class Funds Ltd., a mutual fund corporation.
Notes to the Financial Statements
81
Notice to Shareholders/Unitholders
Unaudited Semi-Annual Financial Statements
The accompanying semi-annual financial statements have not been reviewed by the external auditors of the
Funds. The external auditors will be auditing the annual financial statements of the Funds in accordance with
International Financial Reporting Standards.
2
MARQUEST MONEY MARKET FUND
INTERIM UNAUDITED FINANCIAL STATEMENTS | June 30, 2016
STATEMENTS OF FINANCIAL POSITION (CDN $)
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Investments at fair value
Cash
Accrued interest receivable
2,188,080
3,657
1,046
2,192,783
2,341,570
8,233
1,348
2,351,151
20
7
35
62
28
32
60
2,192,721
2,351,091
2,183,608
9,113
2,345,994
5,097
10.00
10.00
10.00
10.00
Liabilities (Note 2)
Current Liabilities
Management fees payable
Other payables and accrued expenses
Distribution payable
Net assets attributable to holders of redeemable units (Note 3)
Class A
Class F
Net assets attributable to holders of redeemable units per unit
Class A
Class F
Approved on behalf of the Board of Directors of Marquest Asset Management Inc., the Manager of the Fund.
"Gerry L. Brockelsby"
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Marquest Asset Management Inc.
Andrew A. McKay
Director
The accompanying notes form an integral part of the financial statements
3
STATEMENTS OF COMPREHENSIVE INCOME (CDN $)
For the periods ended June 30,
2016 ($)
2015 ($)
8,868
49
8,917
13,746
162
13,908
Income
Interest for distribution purposes
Securities lending income
Total Income (loss)
Expenses (Note 4)
Management fees
Interest charges
Operating fees
Audit fees
Custodian fees
Legal fees
Independent review committee fees
Unitholder reporting costs
Total Expenses
Expenses waived (Note 4)
Net Expenses
Increase (decrease) in net assets attributable to holders of redeemable units
from operations
3,820
4
73,802
4,963
13,241
4,532
1,140
2,038
103,540
(98,442)
5,098
4,609
65,146
9,004
12,728
1,192
970
2,400
96,049
(89,899)
6,150
3,819
7,758
3,802
17
7,684
74
0.02
0.02
0.03
0.02
from operations per class
Class A
Class F
from operations per unit
Class A
Class F
4
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (CDN $)
2016 ($)
Class A
Net assets attributable to holders of redeemable units, beginning of period
Increase (decrease) increase in net assets attributable to
holders of redeemable units from operations
2,345,994
2015 ($)
2016 ($)
Class F
2015 ($)
3,124,834
5,097
-
3,802
7,684
17
74
(3,802)
(3,802)
(7,684)
(7,684)
(17)
(17)
(74)
(74)
470,039
3,584
(636,009)
(162,386)
175,172
7,667
(756,579)
(573,740)
4,000
16
4,016
36,206
(96)
36,110
(162,386)
(573,740)
4,016
36,110
9,113
36,110
Distributions to holders of redeemable units
From net investment income
Total distributions to holders of redeemable units
Redeemable unit transactions (Note 3)
Proceeds from sale of redeemable units
Reinvestment of distributions to holders of redeemable units
Amounts paid on redemption of redeemable units
Net redeemable unit transactions
Net Increase (decrease) in net assets attributable to holders of redeemable units
Net assets attributable to holders of redeemable units, end of period
2,183,608
2,551,094
2016 ($)
Total
2015 ($)
2,351,091
3,124,834
3,819
7,758
(3,819)
(3,819)
(7,758)
(7,758)
474,039
3,600
(636,009)
(158,370)
211,378
7,667
(756,675)
(537,630)
(158,370)
(537,630)
2,192,721
2,587,204
5
STATEMENTS OF CASH FLOW (CDN $)
2016 ($)
2015 ($)
3,819
7,758
Cash flows from (used in) operating activities
Increase (decrease) in net assets attributable to holders of redeemable units from operations
Adjustments for:
Purchases of investments
Proceeds from sale and maturity of investments
Net cash from (used in) operating activities
(7,486,233)
7,648,892
(8,867)
20
(21)
157,610
(5,416,102)
6,234,050
(11,164)
(81)
814,461
(216)
474,039
(636,009)
(162,186)
(314)
211,378
(756,675)
(545,611)
Cash flows from (used in) financing activities
Distributions paid to holders of redeemable units, net of reinvested distributions
Net cash from (used in) financing activities
Net decrease in cash
Cash (bank indebtedness) at beginning of period
Cash (bank indebtedness) at end of period
Supplementary disclosures on cash flow from operating activities:
Interest received
Interest paid
(4,576)
8,233
3,657
268,850
19,238
288,088
1
(4)
2,582
-
6
SCHEDULE OF INVESTMENT PORTFOLIO (CDN $)
As at June 30, 2016 (unaudited)
Maturity
Par Value
Average
Cost
Yield
Fair
Value
200,000
199,000
180,000
170,000
200,000
SHORT TERM NOTES (99.8%)
Bankers Acceptance (43.2%)
Bank of Nova Scotia
Canadian Imperial Bank of Commerce
National Bank of Canada
Royal Bank of Canada
The Toronto-Dominion Bank
26/08/2016
02/08/2016
11/08/2016
15/08/2016
05/07/2016
0.82% $
0.74%
0.77%
0.80%
0.84%
199,618
198,843
179,780
169,669
199,720
947,630
170,000
120,000
85,000
160,000
200,000
Discount Commercial Paper (33.5%)
Daimler Canada Finance Inc.
FortisBC Energy Inc.
Hydro One
Inter Pipeline Corridor Inc.
Nestle Capital Canada Ltd.
06/09/2016
03/08/2016
21/07/2016
16/08/2016
25/08/2016
0.90%
0.87%
0.75%
0.89%
0.75%
169,686
119,840
84,963
159,728
199,680
733,897
169,686
119,840
84,963
159,728
199,680
733,897
130,000
130,000
167,000
Treasury Bills (19.5%)
Canadian Treasury Bill
14/07/2016
11/08/2016
22/09/2016
0.42%
0.49%
0.50%
129,905
129,903
166,791
426,599
129,905
129,903
166,791
426,599
Bearer Deposit Notes (3.6%)
Vancouver City Savings Credit Union
05/07/2016
0.95%
79,954
79,954
79,954
79,954
TOTAL SHORT TERM NOTES
2,188,080
2,188,080
Total cost and fair value of investments (99.8%)
Other assets (net) (0.2%)
Total net assets
2,188,080
4,641
2,192,721
2,188,080
4,641
2,192,721
80,000
$
$
$
199,618
198,843
179,780
169,669
199,720
947,630
See accompanying notes.
PORTFOLIO CONCENTRATION (CDN $)
Sector
Bankers Acceptance
Bearer Deposit Notes
Discount Commercial Paper
Treasury Bills
Other Assets Less Liabilities
Total
% of Fund's Net Assets
June 30, December 31,
2016
2015
43.22%
30.16%
3.65%
5.10%
33.47%
36.73%
19.45%
27.61%
0.21%
0.40%
100.00%
100.00%
7
MARQUEST SHORT TERM INCOME FUND (CORPORATE CLASS)
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
789,022
633
288
789,943
1,462,933
15,697
975
1,479,605
Payable to other corporate class (Note 4)
5
1
186,095
186,101
16
186,095
186,111
Net assets attributable to holders of redeemable shares (Note 3)
603,842
1,293,494
603,842
1,293,494
11.61
11.58
Current Liabilities
Series A
Net assets attributable to holders of redeemable shares per share
Series A
Approved on behalf of the Board of Directors of Marquest Corporate Class Funds Ltd.
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
8
2016 ($)
2015 ($)
4,117
42
4,159
7,420
103
7,523
1,410
17,542
428
13,083
36
1,140
16
33,655
(31,774)
1,881
2,215
10,823
532
12,362
8
970
17
26,927
(23,973)
2,954
2,278
4,569
2,278
4,569
0.03
0.04
Income
Total Income (loss)
Expenses (Note 4)
Management fees
Operating fees
Audit fees
Custodian fees
Legal fees
Shareholder reporting costs
Total Expenses
Net Expenses
Increase (decrease) in net assets attributable to holders of redeemable shares
from operations
Series A
from operations per share
Series A
9
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES (CDN $)
2016 ($)
Series A
Net assets attributable to holders of redeemable shares, beginning of period
Increase (decrease) in net assets attributable to holders of redeemable shares from operations
1,293,494
2,278
2015 ($)
1,478,773
4,569
Redeemable share transactions (Note 3)
Proceeds from sale of redeemable shares
Amounts paid on redemption of redeemable shares
Net redeemable share transactions
Net Increase (decrease) in net assets attributable to holders of redeemable shares
Net assets attributable to holders of redeemable shares, end of period
22,095
(714,025)
(691,930)
46,422
(220,006)
(173,584)
(689,652)
(169,015)
603,842
1,309,758
10
2016 ($)
2015 ($)
2,278
4,569
Adjustments for:
(3,562,878)
4,241,591
(4,115)
5
(15)
676,866
(3,294,424)
3,653,986
(6,518)
(31)
357,582
22,095
(714,025)
(691,930)
46,422
(218,806)
(172,384)
(15,064)
15,697
633
185,198
62,709
247,907
Interest received
2
902
11
Maturity
Par Value
Average
Cost
Yield
Fair
Value
65,000
35,000
80,000
80,000
SHORT TERM NOTES (130.7%)
Discount Commercial Paper (43.0%)
Daimler Canada Finance Inc.
Hydro One
Inter Pipeline Corridor Inc.
Nestle Capital Canada Ltd.
06/09/2016
21/07/2016
16/08/2016
25/08/2016
0.90% $
0.75%
0.89%
0.75%
64,880 $
34,985
79,864
79,872
259,601
64,880
34,985
79,864
79,872
259,601
55,000
76,000
60,000
50,000
Bankers Acceptance (39.9%)
Bank of Nova Scotia
26/08/2016
02/08/2016
11/08/2016
15/08/2016
0.82%
0.74%
0.77%
0.80%
54,895
75,940
59,929
49,903
240,667
54,895
75,940
59,929
49,903
240,667
Treasury Bills (37.1%)
14/07/2016
11/08/2016
22/09/2016
0.44%
0.50%
0.50%
43,974
114,898
64,919
223,791
43,974
114,898
64,919
223,791
Bearer Deposit Notes (10.7%)
Vancouver City Savings Credit Union
05/07/2016
0.95%
64,963
64,963
64,963
64,963
789,022
789,022
44,000
115,000
65,000
65,000
TOTAL SHORT TERM NOTES
Other assets (net) (-30.7%)
Total net assets
$
789,022
(185,180)
603,842 $
789,022
(185,180)
603,842
Sector
Bankers Acceptance
Bearer Deposit Notes
Discount Commercial Paper
Treasury Bills
Total
2016
2015
39.86%
17.75%
10.76%
8.49%
42.99%
58.66%
37.06%
28.20%
-30.67%
-13.10%
100.00%
100.00%
12
MARQUEST CANADIAN BOND FUND
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
Receivable for investments sold
2,028,139
40,046
10,419
2,078,604
2,265,105
11,919
12,949
43,983
2,333,956
61
32
405
1,629
2,127
100
55,363
3
55,466
2,076,477
2,278,490
2,028,371
48,106
2,231,142
47,348
4.48
4.89
4.50
4.89
Current Liabilities
Payable on redemption of redeemable units
Payable for investments purchased
Class A
Class F
Class A
Class F
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
13
2016 ($)
2015 ($)
28,166
99
314
(4,760)
39,888
63,707
54,965
98
45
99,039
(37,127)
117,020
11,374
38
42,124
2,717
12,693
2,001
1,140
900
72,987
(55,774)
17,213
17,962
4,525
34,241
5,169
14,600
519
970
1,044
79,030
(46,290)
32,740
46,494
84,280
45,237
1,257
67,583
16,697
0.10
0.13
0.10
0.11
Income
Other income
Net realized gain (loss) on sale of investments
Change in net unrealized appreciation (depreciation) on investments
Total Income (loss)
Expenses (Note 4)
Management fees
Interest charges
Operating fees
Audit fees
Custodian fees
Legal fees
Total Expenses
Net Expenses
from operations
Class A
Class F
Class A
Class F
14
2016 ($)
Class A
2,231,142
2015 ($)
3,342,526
2016 ($)
Class F
2015 ($)
47,348
734,549
45,237
67,583
1,257
16,697
(55,404)
(55,404)
(76,478)
(76,478)
(1,170)
(1,170)
(18,476)
(18,476)
346,682
44,383
(583,669)
(192,604)
110,747
52,094
(677,708)
(514,867)
671
671
37,130
18,241
55,371
(202,771)
(523,762)
758
53,592
48,106
788,141
2,028,371
2,818,764
2016 ($)
Total
2,278,490
2015 ($)
4,077,075
46,494
84,280
(56,574)
(56,574)
(94,954)
(94,954)
346,682
45,054
(583,669)
(191,933)
147,877
70,335
(677,708)
(459,496)
(202,013)
(470,170)
2,076,477
3,606,905
15
2016 ($)
2015 ($)
46,494
84,280
Adjustments for:
Net realized loss (gain) on sale of investments
Change in net unrealized depreciation (appreciation) on investments
4,760
(39,888)
(4,421,579)
4,682,404
2,419
61
(68)
274,603
(99,039)
37,127
(6,704,007)
7,220,463
2,447
(301)
540,970
(9,894)
346,682
(583,264)
(246,476)
(20,681)
147,877
(671,930)
(544,734)
28,127
11,919
40,046
(3,764)
38,374
34,610
Interest received
Interest paid
30,585
(38)
57,412
(4,525)
16
Maturity
Par Value
Average
Cost
Coupon
Fair
Value
50,000
25,000
105,000
17,000
100,000
48,000
200,000
200,000
200,000
100,000
154,000
137,000
FIXED INCOME (97.7%)
Corporate Bonds (65.7%)
Canadian Natural Resources Ltd.
Canadian Western Bank
Choice Properties Real Estate Investment Trust
Enbridge Gas Distribution Inc.
Ford Credit Canada Ltd.
FortisBC Inc.
Laurentian Bank of Canada
Manufacturers Life Insurance Co.
Saputo Inc.
TELUS Corp.
TransCanada Pipelines Ltd.
14/08/2020
18/01/2017
14/09/2020
25/02/2036
10/05/2021
28/10/2044
13/06/2019
01/06/2025
04/06/2025
23/06/2021
05/04/2021
19/07/2023
2.89% $
3.05%
2.30%
5.21%
2.58%
4.00%
2.81%
2.10%
2.48%
2.20%
3.20%
3.69%
110,000
50,000
122,000
268,000
Provincial Bonds (28.3%)
Province of Alberta
Province of Alberta
Province of Alberta
Province of Quebec
01/09/2021
01/09/2023
01/06/2031
01/09/2025
1.35%
3.00%
3.50%
2.75%
109,871
53,716
128,614
281,600
573,801
110,251
54,761
134,264
287,777
587,053
Municipal Bonds (3.7%)
Municipal Finance Authority of British Columbia
02/06/2019
2.05%
75,380
76,910
TOTAL FIXED INCOME
2,005,811
2,028,139
Total net assets
2,005,811
48,338
2,054,149
2,028,139
48,338
2,076,477
75,000
$
50,966
25,658
105,001
19,357
100,000
47,967
205,263
199,992
199,962
100,000
156,917
145,547
1,356,630
$
$
49,948
25,156
106,196
21,022
100,452
51,855
204,301
198,118
196,635
100,592
161,490
148,411
1,364,176
Sector
Corporate Bonds
Municipal Bonds
Provincial Bonds
Total
2016
2015
65.70%
74.44%
3.70%
4.50%
28.27%
20.47%
2.33%
0.59%
100.00%
100.00%
17
MARQUEST CANADIAN FIXED INCOME FUND
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
4,904,946
85,371
29,973
72,456
5,092,746
4,365,195
13,433
25,107
4,403,735
101
36
4,986
5,123
116
11,073
31,830
43,019
5,087,623
4,360,716
245,451
4,842,172
135,848
4,224,868
10.29
10.27
10.16
10.14
Current Liabilities
Class A
Class F
Class A
Class F
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
18
2016 ($)
2015 ($)
68,468
87
2,577
62,112
133,244
36,966
24
32,799
(6,061)
63,728
Net Expenses
17,340
69
27,788
1,700
17,553
855
1,140
384
66,829
(43,322)
23,507
9,279
128
13,878
2,641
17,090
75
970
151
44,212
(31,325)
12,887
from operations
109,737
50,841
4,401
105,336
(185)
51,026
0.18
0.24
(0.05)
0.19
Income
Total Income (loss)
Expenses (Note 4)
Management fees
Interest charges
Operating fees
Audit fees
Custodian fees
Legal fees
Total Expenses
Class A
Class F
Class A
Class F
19
2016 ($)
Class A
2015 ($)
2016 ($)
Class F
2015 ($)
135,848
10
4,224,868
537,864
4,401
(185)
105,336
51,026
(1,519)
(1,519)
(196)
(196)
(43,529)
(43,529)
(23,907)
(23,907)
133,035
810
(27,124)
106,721
143,990
78
144,068
1,049,662
14,837
(509,002)
555,497
3,991,900
8,824
(278,662)
3,722,062
109,603
143,687
617,304
3,749,181
245,451
143,697
4,842,172
4,287,045
2016 ($)
Total
2015 ($)
4,360,716
537,874
109,737
50,841
(45,048)
(45,048)
(24,103)
(24,103)
1,182,697
15,647
(536,126)
662,218
4,135,890
8,902
(278,662)
3,866,130
726,907
3,892,868
5,087,623
4,430,742
20
2016 ($)
2015 ($)
Adjustments for:
109,737
50,841
(2,577)
(62,112)
(13,811,509)
13,252,928
(4,876)
101
(80)
(518,388)
(32,799)
6,061
(18,307,938)
14,491,128
(19,448)
702
(3,811,453)
(56,245)
1,182,697
(536,126)
590,326
(11,497)
4,135,900
(278,662)
3,845,741
71,938
13,433
85,371
34,288
10,776
45,064
Interest received
Interest paid
63,592
(69)
17,518
(128)
21
Maturity
Par Value
Average
Cost
Coupon
Fair
Value
75,000
45,000
125,000
73,000
90,000
100,000
150,000
100,000
41,000
100,000
83,000
100,000
275,000
36,000
182,000
73,000
50,000
50,000
65,000
100,000
50,000
296,000
200,000
66,000
125,000
100,000
49,000
55,000
65,000
300,000
Corporate Bonds (65.8%)
Alimentation Couche-Tard Inc.
Bank of Montreal
Bank of Montreal
Bank of Nova Scotia
Bell Canada
Bell Canada
CI Financial Corp.
Enbridge Inc.
Enbridge Pipelines Inc.
Ford Credit Canada Ltd.
Hydro One Inc.
Laurentian Bank of Canada
OMERS Realty Corp.
Sun Life Financial Inc.
TELUS Corp.
TELUS Corp.
The Bank of Nova Scotia
Thomson Reuters Corp.
Toyota Credit Canada Inc.
TransCanada Pipelines Ltd.
01/11/2017
31/03/2021
01/06/2026
04/06/2021
18/06/2019
17/06/2020
26/04/2021
14/08/2020
14/01/2019
07/12/2020
11/03/2021
17/08/2023
10/05/2021
01/06/2032
13/06/2019
21/02/2024
01/06/2025
18/03/2022
11/04/2022
04/06/2018
02/03/2022
02/03/2022
04/12/2019
23/07/2020
30/03/2027
22/12/2021
14/12/2105
30/09/2020
20/05/2020
19/07/2023
2.86% $
1.88%
3.32%
2.87%
3.35%
3.25%
1.90%
2.89%
3.08%
2.65%
3.16%
3.79%
2.58%
6.93%
2.81%
2.81%
2.10%
2.11%
3.26%
4.74%
1.97%
4.38%
5.05%
5.05%
2.58%
2.62%
4.78%
4.35%
2.05%
3.69%
76,144
44,998
124,983
76,008
94,965
104,100
149,922
101,932
42,275
100,000
85,357
111,195
275,000
52,393
186,790
75,367
49,998
50,455
66,982
110,286
50,000
307,100
220,814
75,320
120,625
102,227
51,685
60,228
65,078
318,717
3,350,944
45,000
125,000
168,000
50,000
225,000
100,000
50,000
200,000
462,000
Provincial Bonds (29.6%)
Financement-Quebec
OPB Finance Trust
Province of Alberta
Province of Alberta
Province of Manitoba
Province of New Brunswick
Province of New Brunswick
Province of Ontario
Province of Quebec
01/12/2019
24/02/2022
01/09/2021
01/06/2031
05/09/2021
03/12/2021
02/06/2023
02/06/2022
01/09/2025
2.45%
1.88%
1.35%
3.50%
1.55%
3.35%
2.85%
3.15%
2.75%
46,862
122,950
166,908
53,100
224,984
108,070
52,475
216,500
480,632
1,472,481
47,048
126,160
168,383
55,026
227,584
109,797
53,576
220,044
496,094
1,503,712
Municipal Bonds (1.0%)
City of Montreal
01/12/2019
5.45%
55,232
53,304
TOTAL FIXED INCOME
4,878,657
4,904,946
Total net assets
4,878,657
182,677
5,061,334
4,904,946
182,677
5,087,623
47,000
$
$
$
76,179
45,657
126,518
77,224
94,123
105,253
152,364
99,895
41,677
101,831
85,383
108,260
276,242
52,056
185,915
74,098
49,529
50,866
65,686
106,630
50,580
300,945
220,689
73,858
120,824
104,976
49,634
59,864
66,187
324,987
3,347,930
Sector
Corporate Bonds
Municipal Bonds
Provincial Bonds
Total
2016
2015
65.81%
62.28%
1.05%
1.23%
29.56%
36.59%
3.58%
-0.10%
100.00%
100.00%
22
MARQUEST MONTHLY PAY FUND
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
Cash held as collateral
Accrued dividend receivable
Receivable on sale of redeemable units
Prepaid fees
83,422,564
15,313,794
6,868,171
232,048
4,070
148,926
41,713
106,031,286
109,150,611
3,651,561
16,405,277
288,695
703,950
41,713
130,241,807
6,225
3,077
253,829
435,570
1,748,737
484,318
2,931,756
11,959
428,610
895
590,192
1,031,656
103,099,530
129,210,151
98,292,192
3,445,027
1,285,061
77,250
123,660,223
3,764,099
1,664,750
121,079
2.72
11.90
3.58
12.29
3.31
13.12
4.18
13.44
Current Liabilities
Written covered call/put options at fair value
Class A
Class AA
Class F
Class F-AA
Class A
Class AA
Class F
Class F-AA
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
23
2016 ($)
2015 ($)
1,283,623
143
6,699
3,176
(1,410,902)
(146,447)
(1,293,794)
(1,726,551)
(311,390)
(3,595,443)
2,561,503
34,550
10,863
2,973
3,857,244
(116,414)
(9,825,554)
(3,474,835)
1,244,652
31,658
265,868
31,928
794,598
56,076
53,802
62,133
1,140
27,941
2,569,796
(379,941)
2,189,855
1,995,389
28,424
141,284
241
823,194
103,082
25,019
17,717
970
35,656
3,170,976
(11,560)
3,159,416
(5,785,298)
(6,634,251)
(5,552,813)
(162,004)
(65,737)
(4,744)
(6,372,125)
(149,949)
(105,787)
(6,390)
(0.15)
(0.54)
(0.17)
(0.66)
(0.16)
(0.42)
(0.14)
(0.49)
Income
Dividends
Other income
Net realized gain (loss) on option contracts
Foreign exchange gain (loss) on cash
Change in unrealized appreciation (depreciation) in option contracts
Total Income (loss)
Expenses (Note 4)
Management fees
Foreign taxes withheld (Note 8)
Transaction costs (Note 6)
Interest charges
Operating fees
Audit fees
Custodian fees
Legal fees
Total Expenses
Expense waived (Note4)
Net Expenses
from operations
Class A
Class AA
Class F
Class F-AA
Class A
Class AA
Class F
Class F-AA
24
2016 ($)
Class A
123,660,223
2015 ($)
189,239,609
2016 ($)
Class AA
3,764,099
2015 ($)
7,140,245
(5,552,813)
(6,372,125)
(162,004)
(149,949)
(16,540,046)
(16,540,046)
(17,817,984)
(17,817,984)
(205,152)
(205,152)
(153,169)
(153,169)
5,411,361
5,900,778
(14,587,311)
(3,275,172)
16,159,717
7,307,215
(33,211,704)
(9,744,772)
869,660
65,975
(887,551)
48,084
545,432
68,827
(3,162,808)
(2,548,549)
(25,368,031)
(33,934,881)
(319,072)
(2,851,667)
98,292,192
155,304,728
From net realized gain on sale of investments
Return of capital
2016 ($)
Class F
1,664,750
2015 ($)
4,693,534
3,445,027
4,288,578
2016 ($)
Class F-AA
2015 ($)
121,079
181,636
(65,737)
(105,787)
(4,744)
(6,390)
(166,571)
(166,571)
(326,069)
(326,069)
(4,912)
(4,912)
(5,945)
(5,945)
53,942
113,102
(314,425)
(147,381)
153,787
215,522
(1,406,253)
(1,036,944)
4,912
(39,085)
(34,173)
36,350
5,498
(7,000)
34,848
(379,689)
(1,468,800)
(43,829)
22,513
3,224,734
77,250
204,149
1,285,061
2016 ($)
Total
129,210,151
2015 ($)
201,255,024
(5,785,298)
(6,634,251)
(16,916,681)
(16,916,681)
(18,303,167)
(18,303,167)
6,334,963
6,084,767
(15,828,372)
(3,408,642)
16,895,286
7,597,062
(37,787,765)
(13,295,417)
(26,110,621)
(38,232,835)
103,099,530
163,022,189
25
2016 ($)
2015 ($)
(5,785,298)
(6,634,251)
1,293,794
1,410,902
1,726,551
(105,874)
(130,848,735)
153,460,105
56,647
6,225
256,986
21,471,303
116,414
(3,857,244)
9,825,554
(34,269,081)
64,180,492
203,501
(355)
105,272
29,670,302
(9,084,072)
7,034,843
(16,003,153)
(18,052,382)
(8,961,363)
16,841,293
(37,851,059)
(29,971,129)
(1,293,794)
3,418,921
20,056,838
22,181,965
(116,414)
(300,827)
3,443,413
3,026,172
1,340,270
(31,658)
143
(31,928)
2,765,004
(28,424)
34,195
(241)
Adjustments for:
Foreign exchange loss (gain) on cash
Change in fair value of option contracts
Dividends received
Foreign taxes paid
Interest received
Interest paid
26
Maturity/
Expiry Date
Number of Shares
115,000
FIXED INCOME (0.1%)
Cooltech Corp.
TOTAL FIXED INCOME
145,000
45,000
50,000
50,000
40,000
125,000
40,000
35,000
156,000
41,000
75,000
55,000
75,000
40,000
50,000
CANADIAN EQUITIES (73.6%)
Energy (14.1%)
Advantage Oil & Gas Ltd.
Canyon Services Group Inc.
Cenovus Energy Inc.
Crescent Point Energy Corp.
Crew Energy Inc.
Enbridge Inc.
Husky Energy Inc.
Petrowest Corp.
PHX Energy Services Corp.
Secure Energy Services Inc.
Suncor Energy Inc.
TORC Oil & Gas Ltd.
TransCanada Corp.
Whitecap Resources Inc.
70,000
61,700
150,000
65,784
195,000
80,000
168,700
80,000
Materials (12.3%)
Altius Minerals Corp.
Barrick Gold Corp.
Eldorado Gold Corp.
Goldcorp Inc.
Interfor Corp.
Methanex Corp.
SEMAFO Inc.
Tahoe Resources Inc.
23,000
5,000
50,000
161,300
50,000
50,000
57,000
12,200
43,900
Financials (10.7%)
Altus Group Ltd.
Bank of Montreal
Brookfield Asset Management Inc.
Diversified Royalty Corp.
Kew Media Group Inc.
Power Financial Corp.
The Bank of Nova Scotia
150,000
325,000
100,000
100,000
Utilities (9.1%)
Algonquin Power & Utilities Corp.
Crius Energy Trust
Hydro One Ltd.
Northland Power Inc.
50,000
50,000
50,000
Consumer Discretionary (7.7%)
Cineplex Inc.
Restaurant Brands International Inc.
Thomson Reuters Corp.
19/05/2017
Coupon/
Exercise
Price
1.00% $
Average
Cost*
(Premiums)
148,798
148,798
Fair
Value
$
149,351
149,351
1,001,332
1,556,146
273,070
862,236
691,204
723,862
1,765,661
604,066
79,865
110,700
629,269
1,952,764
625,250
1,772,437
367,127
13,014,989
1,046,900
1,793,700
282,500
893,500
816,400
726,250
2,189,200
551,950
74,880
110,290
662,250
1,971,200
615,000
2,338,400
494,000
14,566,420
787,500
1,399,076
839,895
1,650,737
2,596,249
3,314,292
940,022
1,221,503
12,749,274
756,000
1,702,673
871,500
1,626,180
2,158,650
3,007,200
1,045,940
1,548,000
12,716,143
494,721
396,836
1,636,447
346,895
500,000
1,421,863
2,433,413
802,684
2,476,476
10,509,335
512,210
409,750
2,137,000
351,634
501,250
1,482,500
2,419,080
772,382
2,435,572
11,021,378
854,294
2,778,114
2,365,000
1,921,340
7,918,748
1,783,500
2,723,500
2,596,000
2,220,000
9,323,000
1,241,655
2,172,739
1,645,474
5,059,868
2,579,000
2,689,000
2,613,500
7,881,500
*Average cost includes transaction costs.
27
Maturity/
Expiry Date
Number of Shares
30,000
7,500
20,000
85,000
25,800
46,500
70,000
210,000
15,000
31,500
CANADIAN EQUITIES (CONT.) (73.6%)
Industrials (7.5%)
Canadian National Railway Co.
Canadian Pacific Railway Ltd.
MacDonald Dettwiler & Associates Ltd.
Transcontinental Inc., Class A
WSP Global Inc.
Information Technology (5.2%)
CGI Group Inc.
CounterPath Corp.
Pure Technologies Ltd.
Shopify Inc.
The Descartes Systems Group Inc.
Average
Cost*
(Premiums)
Coupon/
Exercise
Price
$
1,650,112
1,378,544
891,588
1,207,071
1,086,667
6,213,982
Fair
Value
$
2,288,700
1,247,475
1,685,400
1,488,350
1,019,616
7,729,541
2,571,822
176,400
1,048,150
512,841
745,997
5,055,210
2,566,335
207,273
1,236,900
599,221
778,365
5,388,094
2,820,257
850,943
3,671,200
3,057,000
832,000
3,889,000
50,000
20,000
Telecommunication Services (3.8%)
BCE Inc.
TELUS Corp.
60,000
Consumer Staples (3.2%)
Alimentation Couche Tard Inc.
3,555,909
3,328,800
TOTAL CANADIAN EQUITIES
67,748,515
75,843,876
2,346,732
2,253,000
4,599,732
2,922,500
2,307,600
5,230,100
1,000,055
966,558
227,389
523,820
751,209
281,455
481,623
763,078
50,000
60,000
FOREIGN EQUITIES (7.2%)
Utilities (5.1%)
Brookfield Infrastructure Partners LP
Brookfield Renewable Partners LP
25,000
Financials (0.9%)
Weyerhaeuser Co.
4,000
5,000
Splunk Inc.
Visa Inc.
6,000
Starbucks Corp.
483,771
445,091
1,000
Industrials (0.0%)
Brookfield Business Partners LP
27,159
24,510
6,861,926
7,429,337
TOTAL FOREIGN EQUITIES
28
Maturity/
Expiry Date
Number of Shares
Average
Cost*
(Premiums)
Coupon/
Exercise
Price
Fair
Value
CANADIAN CALL OPTIONS (-0.2%)
Alimentation Couche-Tard
Bank Of Nova Scotia
Barrick Gold Corp.
Barrick Gold Corp.
Cenovus Energy Inc.
CGI Group Inc.
CGI Group Inc.
Crescent Point Energy
Goldcorp Inc.
Husky Energy Inc.
Husky Energy Inc.
Methanex Corp.
Suncor Energy
TransCanada Corp.
TOTAL CANADIAN CALL OPTIONS
15/07/2016
15/07/2016
15/07/2016
19/08/2016
15/07/2016
15/07/2016
17/07/2016
15/07/2016
15/07/2016
15/07/2016
15/07/2016
15/07/2016
19/08/2016
15/07/2016
19/08/2016
19/08/2016
$56.00 $
$65.00
$27.00
$27.00
$21.00
$56.00
$60.00
$23.00
$24.00
$15.00
$16.00
$42.00
$38.00
$18.00
$21.00
$58.00
(60)
FOREIGN CALL OPTIONS (0.0%)
Starbucks Corp.
TOTAL FOREIGN CALL OPTIONS
15/07/2016
$57.50
(2,883)
(2,883.00)
(4,364)
(4,364.00)
(50)
(125)
(150)
(150)
(150)
(70)
(54)
(170)
(125)
(200)
CANADIAN PUT OPTIONS (-0.3%)
Concordia International
Crescent Point Energy
Husky Energy Inc.
Methanex Corp.
Paramount Resources
Paramount Resources
Royal Bank
Suncor Energy
TOTAL CANADIAN PUT OPTIONS
15/07/2016
15/07/2016
15/07/2016
19/08/2016
15/07/2016
19/08/2016
15/07/2016
15/07/2016
19/08/2016
19/08/2016
$30.00
$32.00
$34.00
$21.00
$14.00
$40.00
$9.00
$9.00
$74.00
$33.00
(13,750)
(31,281)
(52,500)
(24,300)
(3,900)
(18,900)
(1,350)
(14,450)
(31,000)
(10,000)
(201,431)
(17,125)
(67,812)
(103,125)
(21,150)
(825)
(27,475)
(486)
(1,530)
(19,625)
(7,600)
(266,753)
(360)
(72)
(125)
(75)
(150)
(104)
(104)
(140)
(400)
(150)
(500)
(90)
(125)
(150)
(150)
(150)
Total cost and fair value of investments and option contracts (80.4%)
Transaction costs (note 6)
Total investments
Total net assets
$
(18,900) $
(27,900)
(3,024)
(2,196)
(13,750)
(17,500)
(10,200)
(17,700)
(9,600)
(56)
(5,512)
(6,968)
(3,120)
(936)
(11,200)
(770)
(60,800)
(49,800)
(9,300)
(13,875)
(35,500)
(14,750)
(8,550)
(1,350)
(3,125)
(4,125)
(12,600)
(23,175)
(8,400)
(9,375)
(11,850)
(22,725)
(225,431.00)
(213,201.00)
74,329,494
82,938,246
(79,107)
74,250,387
82,938,246
20,161,284
20,161,284
94,411,671 $ 103,099,530
Sector
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Information Technology
Materials
Real Estate Income Trust
Telecommunication Services
Utilities
Fixed Income
Call Options
Put Options
Total
2016
2015
8.07%
16.78%
3.23%
5.65%
14.13%
4.59%
11.63%
26.03%
0.00%
2.32%
7.53%
6.80%
5.97%
9.30%
12.33%
3.03%
0.00%
2.53%
3.77%
3.22%
14.11%
4.22%
0.14%
0.00%
-0.21%
-0.08%
-0.26%
-0.37%
19.56%
15.98%
100.00%
100.00%
29
MARQUEST MONTHLY PAY FUND (CORPORATE CLASS)
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
Distributions receivable from underlying funds
439,273
48,202
9,203
496,678
592,625
48,336
640,961
17
8
2,000
2,025
32
2,714
2,746
494,653
638,215
467,826
26,827
610,058
28,157
6.80
7.07
7.84
8.15
Current Liabilities
Series A
Series F
Series A
Series F
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
30
2016 ($)
2015 ($)
59,266
(67,542)
(13,066)
(21,342)
90,875
(130,971)
17,098
(22,998)
3,484
21,429
703
25,695
347
1,140
156
52,954
(47,984)
7,911
24
10,725
519
17,131
6
970
12
37,298
(26,137)
4,970
11,161
(26,312)
(34,159)
(26,050)
(262)
(33,512)
(647)
(0.36)
(0.06)
(0.27)
(0.28)
Income
Distributions from underlying funds
Total Income (loss)
Expenses (Note 4)
Management fees
Interest charges
Operating fees
Audit fees
Custodian fees
Legal fees
Total Expenses
Net Expenses
from operations
Series A
Series F
Series A
Series F
31
2016 ($)
Series A
2015 ($)
2016 ($)
Series F
2015 ($)
610,058
Increase (decrease) in net assets attributable to holders of redeemable
shares from operations
(26,050)
(33,512)
(262)
(647)
(50,808)
(50,808)
(77,994)
(77,994)
(3,488)
(3,488)
(1,718)
(1,718)
38,120
(103,494)
(65,374)
6,333
51,527
(672,669)
(614,809)
12,219
3,155
(12,954)
2,420
4,252
248
(13,109)
(8,609)
(142,232)
(726,315)
(1,330)
(10,974)
467,826
862,920
26,827
15,082
1,589,235
28,157
26,056
Distributions to holders of redeemable shares
Total distributions to holders of redeemable shares
Reinvestment of distributions to holders of redeemable shares
2015 ($)
2016 ($)
Total
638,215
(26,312)
(34,159)
(54,296)
(54,296)
(79,712)
(79,712)
12,219
41,275
(116,448)
(62,954)
10,585
51,775
(685,778)
(623,418)
(143,562)
(737,289)
494,653
878,002
1,615,291
32
2016 ($)
2015 ($)
(26,312)
(34,159)
67,542
13,066
(59,266)
(1,615)
133,625
(9,203)
17
(24)
117,830
130,971
(17,098)
(79,040)
804,689
(11,834)
(347)
793,182
(13,735)
12,219
(116,448)
(117,964)
(111,214)
10,585
(692,830)
(793,459)
(134)
48,336
48,202
(277)
99,335
99,058
Adjustments for:
Non-cash distributions from underlying funds
Distributions receivable from underlying funds
Distributions paid to holders of redeemable shares, net of reinvested distributions
Interest paid
-
(24)
33
Average
Cost
Number of Units
122,702
MUTUAL FUND TRUSTS (88.8%)
Marquest Monthly Pay Fund, Class F
TOTAL MUTUAL FUND TRUSTS
Total net assets
$
$
Fair
Value
688,483 $
688,483
439,273
439,273
688,483
55,380
743,863 $
439,273
55,380
494,653
Sector
Consumer Staples
Energy
Financials
Healthcare
Industrials
Materials
Real Estate Income Trust
Utilities
Fixed Income
Call Options
Put Options
Total
% of Underlying Fund's Net Assets
June 30,
December 31,
2016
2015
8.07%
16.78%
3.23%
5.65%
14.13%
4.59%
11.63%
26.03%
0.00%
2.32%
7.53%
6.80%
5.97%
9.30%
12.33%
3.03%
0.00%
2.53%
3.77%
3.22%
14.11%
4.22%
0.14%
0.00%
-0.21%
-0.08%
-0.26%
-0.37%
19.56%
15.98%
100.00%
100.00%
34
MARQUEST GLOBAL BALANCED FUND
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
Futures contract
18,569,885
947,091
161,221
33,594
102,117
22,148
96,930
19,932,986
20,932,847
245,768
221,631
37,567
93,046
150
21,531,009
1,141
576
156,195
436,120
48,196
642,228
1,903
76,239
78,142
19,290,758
21,452,867
16,921,952
2,368,806
19,280,235
2,172,632
16.95
19.51
17.35
19.77
Current Liabilities
Class A
Class F
Class A
Class F
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
35
2016 ($)
2015 ($)
183,576
212,529
612
67
765,468
529,644
(11,833)
(1,092,925)
(49,818)
537,320
207,479
162,838
294
642
1,805
(117,801)
2,736
1,224,730
(60,966)
1,421,757
219,792
17,058
10,681
131
165,853
11,491
21,752
11,888
1,140
5,346
465,132
(106,991)
358,141
199,347
27,739
3,271
414
101,488
13,514
19,744
1,985
970
3,994
372,466
(41,572)
330,894
Income
Dividends
Other income
Net realized gain (loss) on futures contracts
Change in unrealized appreciation (depreciation) in value of futures contract
Total Income (loss)
Expenses (Note 4)
Management fees
Interest charges
Operating fees
Audit fees
Custodian fees
Legal fees
Total Expenses
Net Expenses
from operations
179,179
1,090,863
142,411
36,768
950,682
140,181
0.13
0.31
1.06
1.43
Class A
Class F
Class A
Class F
36
2016 ($)
Class A
19,280,235
2015 ($)
13,911,745
2016 ($)
Class F
2,172,632
2015 ($)
1,805,533
142,411
950,682
36,768
140,181
(572,498)
(572,498)
(492,409)
(492,409)
(64,044)
(64,044)
(53,315)
(53,315)
1,713,640
292,368
(3,934,204)
(1,928,196)
4,611,783
226,763
(1,431,494)
3,407,052
255,276
33,940
(65,766)
223,450
204,661
25,560
(45,997)
184,224
(2,358,283)
3,865,325
196,174
271,090
16,921,952
17,777,070
2,368,806
2,076,623
2016 ($)
Total
21,452,867
179,179
2015 ($)
15,717,278
1,090,863
(636,542)
(636,542)
(545,724)
(545,724)
1,968,916
326,308
(3,999,970)
(1,704,746)
4,816,444
252,323
(1,477,491)
3,591,276
(2,162,109)
4,136,415
19,290,758
19,853,693
37
2016 ($)
2015 ($)
Adjustments for:
Change in value of futures contracts
179,179
1,090,863
11,833
(765,468)
1,092,925
60,410
(7,223,396)
9,587,634
3,973
(9,295)
1,141
9,354
2,948,290
(2,736)
(1,805)
(1,224,730)
(29,274)
(5,484,848)
4,218,170
(6,980)
(30,078)
3,237
(1,468,181)
(262,038)
1,946,918
(3,920,014)
(2,235,134)
(242,420)
4,841,444
(2,850,805)
1,748,219
(11,833)
713,156
245,768
947,091
2,736
280,038
257,170
539,944
Dividends received
Foreign taxes paid
Interest received
Interest paid
187,549
(17,058)
203,234
(131)
200,499
(27,739)
132,760
(414)
38
Number of
Shares, Units
or Par Value
Maturity
Coupon
Average
Cost*
Fair
Value
200,000
200,000
200,000
200,000
100,000
200,000
175,000
200,000
250,000
200,000
150,000
200,000
150,000
200,000
200,000
150,000
150,000
100,000
United States Corporate Bond (21.8%)
AES Corp.
Calpine Corp.
CHS Community Health Systems Inc.
Crown Cork & Seal Co., Inc.
Dynegy Inc.
First Data Corp.
Frontier Communications Corp.
Hexion Inc.
L Brands Inc.
Neenah Paper Inc.
Neiman Marcus Group Ltd., LLC
New Albertsons Inc.
NRG Energy Inc.
NRG Yield Inc.
Post Holdings Inc.
PulteGroup Inc.
Rite Aid Corp.
Rite Aid Corp.
01/07/2021
15/01/2025
01/02/2022
15/12/2026
01/11/2019
01/12/2023
15/04/2020
01/02/2018
15/07/2037
15/05/2021
15/10/2021
01/08/2029
15/07/2022
15/08/2024
15/12/2022
15/05/2033
15/06/2021
01/04/2023
7.38% $
5.75%
6.88%
7.38%
6.75%
7.00%
8.50%
8.88%
7.60%
5.25%
8.00%
7.45%
6.25%
5.38%
6.00%
6.38%
6.75%
6.13%
281,244
255,224
232,826
267,173
131,761
266,577
240,940
230,148
299,769
229,019
175,668
234,917
172,300
235,542
225,632
164,322
172,391
131,024
3,946,477
200,000
250,000
200,000
150,000
300,000
250,000
Canadian Corporate Bond (7.3%)
1011778 B.C. Unlimited Liability Company
Atlantic Power Limited Partnership
AutoCanada Inc.
Canexus Corp.
Cascades Inc.
MEG Energy Corp.
01/04/2022
23/06/2036
25/05/2021
31/12/2020
15/07/2022
30/01/2023
6.00%
5.95%
5.63%
6.00%
5.50%
6.38%
267,872
185,104
203,083
112,500
359,783
281,256
1,409,598
270,049
185,625
198,917
131,430
380,357
241,883
1,408,261
5,356,075
5,608,945
317,976
276,701
214,588
415,531
293,134
248,018
1,765,948
318,384
318,880
206,254
361,845
367,380
359,434
1,932,177
405,423
394,186
407,801
1,207,410
411,515
404,602
402,785
1,218,902
254,057
70,225
232,291
556,573
285,705
63,400
169,965
519,070
TOTAL FIXED INCOME
14,400
8,000
5,000
25,500
18,000
9,095
Energy (10.0%)
ARC Resources Ltd.
Canadian Natural Resources Ltd
Vermilion Energy Inc.
Cameco Corp.
Crescent Point Energy Corp.
Keyera Corp.
6,500
5,300
7,260
Financials (6.3%)
Bank of Nova Scotia
31,500
10,000
4,500
Materials (2.7%)
First Quantum Minerals Ltd.
Kinross Gold Corp.
West Fraser Timber Co. Ltd.
$
294,157
253,571
228,571
287,013
130,682
263,961
242,045
226,623
338,475
258,442
159,740
253,247
189,935
259,740
267,208
203,084
205,067
139,123
4,200,684
7,000
BCE Inc.
361,371
427,980
5,200
Industrials (2.1%)
Canadian National Railway Co.
389,189
396,708
39
Number of
Shares, Units
or Par Value
10,000
1,000
2,000
Maturity
Utilities (1.4%)
Hydro One Ltd.
Cineplex Inc.
Restaurant Brands International Inc.
Average
Cost*
Coupon
$
220,750
Fair
Value
$
259,600
49,324
109,035
158,359
51,580
108,052
159,632
4,659,600
4,914,069
252,626
346,109
108,419
370,920
210,076
274,856
271,234
119,631
333,948
2,287,819
317,221
333,036
114,156
400,053
315,064
365,818
290,987
119,532
366,753
2,622,620
391,414
145,122
330,501
140,111
285,307
1,292,455
396,566
265,330
334,273
190,558
324,623
1,511,350
371,550
422,772
262,757
1,057,079
430,844
403,506
338,071
1,172,421
191,654
365,166
289,342
846,162
179,766
383,455
286,777
849,998
323,247
302,636
625,883
337,174
310,844
648,018
285,229
271,627
556,856
376,125
266,468
642,593
2,000
2,600
1,500
4,000
2,000
8,000
6,800
500
2,000
UNITED STATES EQUITIES (41.7%)
Health Care (13.6%)
Aetna Inc.
Celgene Corp.
Cerner Corp.
HCA Holdings Inc.
Johnson & Johnson
Pfizer Inc.
Roche Holding AG
Shire PLC
UnitedHealth Group Inc.
9,700
1,600
3,500
1,500
1,500
D.R. Horton Inc.
Home Depot Inc.
Time Warner Inc.
The Walt Disney Co.
Whirlpool Corp.
5,000
5,000
5,500
Financials (6.1%)
HDFC Bank Ltd.
JPMorgan Chase & Co.
Wells Fargo & Co.
200
1,900
3,800
Alphabet Inc., Class C
Broadcom Ltd.
WebMD Health Corp.
2,300
2,500
Diageo PLC
CVS Health Corp.
9,200
2,000
Industrials (3.3%)
General Electric Co.
Siemens AG
3,000
Energy (1.6%)
Schlumberger Ltd.
343,509
308,104
Telefonica Brazil SA
247,699
277,299
14,713
14,468
7,272,175
8,046,871
15,700
1,000
Materials (0.1%)
Freeport-McMoRan Inc.
TOTAL UNITED STATES EQUITIES
40
Number of
Shares, Units
or Par Value
Maturity
Fair value, futures contract (0.8%)
Total investments
Total net assets
Coupon
Average
Cost*
Fair
Value
$ 17,287,850 $ 18,569,885
161,221
(5,746)
17,282,104
18,731,106
559,652
559,652
$ 17,841,756 $ 19,290,758
Sector
Canadian Bonds
Canadian Equities
United States Bonds
United States Equities
Total
2016
2015
7.30%
6.89%
25.47%
12.87%
21.78%
18.52%
41.71%
59.30%
3.74%
2.42%
100.00%
100.00%
41
MARQUEST AMERICAN DIVIDEND GROWTH FUND
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
Futures contract
5,667,797
1,047,385
176,535
8,341
20,000
6,920,058
4,373,911
146,175
6,153
219,843
4,746,082
384
100
5,315
127,255
17,087
22,500
172,641
334
1,492
12,572
14,398
6,747,417
4,731,684
6,185,153
562,264
4,366,440
365,244
10.71
10.96
11.05
11.23
Current Liabilities
Written covered call options at fair value
Class A
Class F
Class A
Class F
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
42
2016 ($)
2015 ($)
81,988
329
(2,314)
135,273
13,089
(4,401)
(2,903)
234
(2,478)
218,817
18,636
94
296
15,970
(8,231)
14,651
41,416
Net Expenses
58,863
10,741
1,180
47
55,501
3,665
25,922
3,070
1,140
1,380
161,509
(75,338)
86,171
14,126
2,729
852
12
19,666
3,360
17,565
201
970
405
59,886
(38,558)
21,328
from operations
132,646
20,088
118,749
13,897
19,729
359
0.24
0.33
0.16
0.07
Income
Dividends
Other income
Total Income (loss)
Expenses (Note 4)
Management fees
Interest charges
Operating fees
Audit fees
Custodian fees
Legal fees
Total Expenses
Class A
Class F
Class A
Class F
43
2016 ($)
Class A
2015 ($)
2016 ($)
Class F
4,366,440
759,089
365,244
118,749
19,729
13,897
(225,840)
(225,840)
(28,883)
(28,883)
(19,841)
(19,841)
(1,246)
(1,246)
2,111,749
129,708
(315,653)
1,925,804
1,899,704
24,021
(142,290)
1,781,435
216,289
19,609
(32,934)
202,964
54,129
1,246
(297)
55,078
1,818,713
1,772,281
197,020
54,191
6,185,153
2,531,370
562,264
67,667
2015 ($)
13,476
359
2016 ($)
Total
2015 ($)
4,731,684
772,565
132,646
20,088
(245,681)
(245,681)
(30,129)
(30,129)
2,328,038
149,317
(348,587)
2,128,768
1,953,833
25,267
(142,587)
1,836,513
2,015,733
1,826,472
6,747,417
Increase (decrease) increase in net assets attributable to holders of
redeemable units from operations
2,599,037
0
44
2016 ($)
2015 ($)
Adjustments for:
132,646
20,088
4,401
2,314
2,903
(176,535)
22,500
(1,596,244)
643,059
(2,188)
384
946
(965,814)
8,231
(15,970)
(14,651)
(1,565,026)
216,856
(1,487)
1,506
(1,350,453)
(91,849)
2,308,038
(344,764)
1,871,425
(3,877)
1,933,469
(142,317)
1,787,275
(4,401)
905,611
146,175
1,047,385
(8,231)
436,822
76,568
505,159
79,800
(10,741)
(47)
17,149
(2,729)
94
(12)
Dividends received
Foreign taxes paid
Interest received
Interest paid
45
Average
Cost*
Number of Shares
1,800
750
2,100
1,750
3,900
1,000
2,400
Health Care (16.7%)
Bristol-Myers Squibb Co.
Johnson & Johnson
Merck & Co., Inc.
Novartis AG
Pfizer Inc.
Stryker Corp.
Teva Pharmaceutical Industries Ltd.
6,000
1,200
4,000
1,000
1,100
1,800
Industrial (13.0%)
ABB Ltd.
Caterpillar Inc.
United Parcel Service Inc., Class B
United Technologies Corp.
Waste Management Inc.
1,200
4,000
700
1,500
2,300
Apple Inc.
Cisco Systems Inc.
International Business Machines Corp.
KLA-Tencor Corp.
QUALCOMM Inc.
1,150
1,500
1,400
2,600
Diageo PLC
Nestle SA
Procter & Gamble Co.
Unilever PLC
2,000
1,800
2,200
2,600
Financials (9.3%)
Northern Trust Corp.
State Street Corp.
Wells Fargo & Co.
2,500
1,500
4,000
AT&T Inc.
Verizon Communications Inc.
Vodafone Group PLC
800
1,500
1,500
1,000
Energy (6.0%)
Chevron Corp.
ConocoPhillips
Royal Dutch Shell PLC
Schlumberger Ltd.
1,000
800
2,600
McDonalds Corp.
Toyota Motor Corp.
Viacom Inc.
1,500
500
Utilities (3.7%)
Duke Energy Corp.
NextEra Energy Inc.
$
141,810
94,154
147,792
190,735
159,436
123,305
179,460
1,036,692
Fair
Value
$
171,935
118,149
157,118
187,523
178,336
155,623
156,561
1,125,245
152,353
124,368
133,820
124,096
146,729
109,832
791,198
154,519
118,145
163,532
139,896
146,500
154,917
877,509
168,453
136,801
138,762
101,317
171,689
717,022
148,987
149,039
137,982
142,695
160,014
738,717
163,695
151,361
143,911
141,576
600,543
168,587
150,604
153,945
161,774
634,910
157,473
157,627
188,676
172,364
676,140
161,403
154,894
154,057
159,816
630,170
107,173
88,129
157,580
352,882
140,292
108,779
160,468
409,539
100,882
113,089
101,343
105,914
421,228
108,914
84,935
109,091
102,701
405,641
138,809
101,191
162,186
402,186
156,286
103,886
140,029
400,201
138,495
63,185
201,680
167,124
84,675
251,799
46
Average
Cost*
Number of Shares
1,700
1,500
UNITED STATES EQUITIES (CONT.) (84.0%)
Materials (2.9%)
EI Du Pont de Nemours & Co.
The Mosaic Co.
$
(5)
(3)
(4)
(6)
(5)
CALL OPTIONS (-0.3%)
Duke Energy Corp.
Pfizer Inc.
Viacom Inc.
TOTAL CALL OPTIONS
145,111
81,866
226,977
Fair
Value
$
5,426,548
21/10/2016
16/12/2016
20/01/2017
16/12/2016
21/10/2016
Total investments
Total net assets
$82.50
$32.00
$75.00
$35.00
$55.00
(1,948)
(1,305)
(4,753)
(8,338)
(3,766)
(20,110)
$
5,406,438
(2,918)
5,403,520
925,585
6,329,105 $
143,066
51,000
194,066
5,667,797
(2,922)
(1,383)
(5,130)
(6,117)
(6,948)
(22,500)
5,645,297
176,535
5,821,832
925,585
6,747,417
Sector
Consumer Staples
Energy
Financials
Healthcare
Industrials
Materials
Utilities
Call Options
Total
2016
2015
5.93%
9.41%
6.01%
9.34%
16.68%
13.00%
10.95%
2.88%
6.07%
3.73%
-0.33%
16.33%
100.00%
2.43%
9.83%
13.02%
12.46%
14.76%
13.73%
11.75%
1.14%
7.13%
6.19%
0.00%
7.56%
100.00%
47
MARQUEST AMERICAN DIVIDEND GROWTH FUND (CORPORATE CLASS)
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
Futures contract
4,687,350
320,334
165,037
6,912
50,000
5,229,633
4,639,091
141,867
6,442
229,656
5,017,056
268
77
2,363
345
32
27,651
30,736
338
345
683
5,198,897
5,016,373
3,941,794
1,257,103
3,950,627
1,065,746
19.04
19.74
18.75
19.39
Current Liabilities
Payable on redemption of redeemable shares
Payable to other corporate class (Note 4)
Series A
Series F
Series A
Series F
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
48
2016 ($)
2015 ($)
73,969
82
35,917
123,483
12,772
(1,543)
(81,618)
182
(4,255)
158,989
55,992
145
87
8
141,846
(5,192)
80,946
273,832
46,612
9,554
549
19
26,900
1,091
22,962
784
1,140
353
109,964
(40,076)
69,888
38,836
8,210
455
15,490
1,111
17,377
110
970
221
82,780
(24,741)
58,039
89,101
215,793
59,533
29,568
179,648
36,145
0.29
0.50
0.96
1.06
Income
Dividends
Other income
Total Income (loss)
Expenses (Note 4)
Management fees
Interest charges
Operating fees
Audit fees
Custodian fees
Legal fees
Total Expenses
Net Expenses
from operations
Series A
Series F
Series A
Series F
49
2016 ($)
Series A
3,950,627
59,533
2015 ($)
3,188,508
179,648
2016 ($)
Series F
1,065,746
2015 ($)
583,733
29,568
36,145
(5,341)
(5,341)
(1,346)
(1,346)
(3,800)
(3,800)
(1,249)
(1,249)
330,247
4,507
(397,779)
(63,025)
266,749
1,053
(400,749)
(132,947)
367,859
3,342
(205,612)
165,589
16,000
723
(23,700)
(6,977)
45,355
191,357
27,919
3,233,863
1,257,103
611,652
(8,833)
3,941,794
2016 ($)
Total
5,016,373
89,101
2015 ($)
3,772,241
215,793
(9,141)
(9,141)
(2,595)
(2,595)
698,106
7,849
(603,391)
102,564
282,749
1,776
(424,449)
(139,924)
182,524
73,274
5,198,897
3,845,515
50
2016 ($)
2015 ($)
89,101
215,793
1,543
(35,917)
81,618
(165,037)
27,651
(554,397)
689,544
(470)
268
288
134,192
5,192
(141,846)
(80,946)
(638,425)
647,629
417
195
8,009
(1,260)
648,106
(601,028)
45,818
(819)
282,749
(415,817)
(133,887)
(1,543)
180,010
141,867
320,334
(5,192)
(125,878)
152,159
21,089
73,499
(9,554)
(19)
56,409
(8,210)
145
-
Adjustments for:
Dividends received
Foreign taxes paid
Interest received
Interest paid
51
(CORPORATE CLASS)
Average
Cost*
Number of Shares
1,500
800
1,800
1,400
3,200
900
1,700
Health Care (18.3%)
Bristol-Myers Squibb Co.
Johnson & Johnson
Merck & Co., Inc.
Novartis AG
Pfizer Inc.
Stryker Corp.
Teva Pharmaceutical Industries Ltd.
4,500
1,100
3,200
800
900
1,600
Industrials (14.0%)
ABB Ltd.
Caterpillar Inc.
United Parcel Service Inc., Class B
United Technologies Corp.
850
3,000
500
1,500
1,900
Apple Inc.
Cisco Systems Inc.
International Business Machines Corp.
KLA-Tencor Corp.
QUALCOMM Inc.
900
1,300
1,200
2,000
Diageo PLC
Nestle SA
Unilever PLC
1,600
1,400
1,600
2,000
Financials (9.3%)
Northern Trust Corp.
State Street Corp.
Wells Fargo & Co.
750
1,400
1,400
1,000
Energy (7.4%)
Chevron Corp.
ConocoPhillips
Royal Dutch Shell PLC
Schlumberger Ltd.
2,200
3,000
1,500
AT&T Inc.
Vodafone Group PLC
Verizon Communications Inc.
600
700
2,000
McDonalds Corp.
Toyota Motor Corp.
Viacom Inc.
1,300
500
Utilities (4.4%)
Duke Energy Corp.
NextEra Energy Inc.
$
65,716
72,011
87,441
153,863
103,441
108,723
129,300
720,495
Fair
Value
$
143,279
126,026
134,673
150,019
146,327
140,061
110,897
951,282
114,120
100,071
71,670
75,620
105,896
63,095
530,472
115,890
108,300
130,826
111,917
119,864
137,704
724,501
57,279
62,685
98,350
101,317
119,977
439,608
105,532
111,779
98,558
142,695
132,186
590,750
127,716
131,750
96,466
105,267
461,199
131,938
130,523
131,953
124,442
518,856
87,609
84,048
104,901
88,245
364,803
129,122
120,473
112,042
122,935
484,572
91,723
114,050
92,580
85,864
384,217
102,107
79,273
101,818
102,701
385,899
80,702
118,184
76,224
275,110
123,457
120,351
108,779
352,587
66,583
88,543
136,588
291,714
93,771
90,900
107,714
292,385
92,661
62,099
154,760
144,840
84,675
229,515
52
(CORPORATE CLASS)
Average
Cost*
Number of Shares
1,300
1,400
UNITED STATES EQUITIES (CONT.) (90.2%)
Materials (3.0%)
The Mosaic Co.
$
(5)
(2)
(3)
(2)
(2)
(4)
(2)
(5)
(4)
ABB Ltd.
AT&T Inc.
Duke Energy Corp.
Pfizer Inc.
Stryker Corp.
Viacom Inc.
TOTAL CALL OPTIONS
117,783
77,844
195,627
Fair
Value
$
3,818,005
16/12/2016
21/10/2016
21/10/2016
21/10/2016
16/12/2016
20/01/2017
16/12/2016
16/12/2016
21/10/2016
Total investments
Total net assets
$20.00
$39.00
$75.00
$65.00
$32.00
$75.00
$105.00
$35.00
$55.00
(844)
(311)
(2,493)
(1,454)
(870)
(4,754)
(2,857)
(6,948)
(3,014)
(23,545)
$
3,794,460
(1,583)
3,792,877
374,162
4,167,039 $
109,403
47,600
157,003
4,687,350
(471)
(1,110)
(4,305)
(836)
(922)
(5,130)
(4,221)
(5,097)
(5,559)
(27,651)
4,659,699
165,036
4,824,735
374,162
5,198,897
Sector
Consumer Staples
Energy
Financials
Healthcare
Industrials
Materials
Utilities
Call Options
Total
2016
2015
5.63%
2.62%
9.98%
9.88%
7.42%
12.52%
9.32%
12.64%
18.30%
14.63%
13.95%
14.43%
11.36%
11.59%
3.02%
1.07%
6.78%
7.65%
4.42%
5.45%
-0.53%
0.00%
10.35%
7.52%
100.00%
100.00%
53
MARQUEST SMALL COMPANIES FUND
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
1,274,666
637,894
1,062
4,395
1,918,017
1,744,024
297,829
2,159
137,531
2,181,543
141
43
16,547
16,731
189
1,971
224,977
227,137
1,901,286
1,954,406
1,874,149
27,137
1,932,208
22,198
10.10
11.64
9.49
10.86
Current Liabilities
Class A
Class F
Class A
Class F
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
54
2016 ($)
2015 ($)
3,817
954
90,077
71,128
165,976
3,569
58
481
3
121,172
2
118,204
243,489
Net Expenses
25,225
16,185
23,164
1,373
16,147
486
1,140
218
83,938
(34,913)
49,025
39,121
17,577
16,484
2,965
15,391
132
970
265
92,905
(24,441)
68,464
from operations
116,951
175,025
115,372
1,579
174,044
981
0.59
0.74
0.71
0.87
Income
Dividends
Other income
Total Income (loss)
Expenses (Note 4)
Management fees
Operating fees
Audit fees
Custodian fees
Legal fees
Total Expenses
Class A
Class F
Class A
Class F
55
2016 ($)
Class A
1,932,208
2015 ($)
3,003,963
2016 ($)
Class F
22,198
2015 ($)
14,325
115,372
174,044
1,579
981
66,017
(239,448)
(173,431)
85,911
(525,492)
(439,581)
3,360
3,360
-
(58,059)
(265,537)
4,939
981
27,137
15,306
1,874,149
2,738,426
2016 ($)
Total
1,954,406
2015 ($)
3,018,288
116,951
175,025
69,377
(239,448)
(170,071)
85,911
(525,492)
(439,581)
(53,120)
(264,556)
1,901,286
2,753,732
56
2016 ($)
2015 ($)
116,951
175,025
Adjustments for:
(90,077)
(71,128)
(1,719,862)
2,242,399
1,097
141
16,039
495,560
(2)
(121,172)
(118,204)
(1,878,965)
1,681,999
(89)
17,087
(244,321)
69,377
(224,872)
(155,495)
85,911
(527,243)
(441,332)
340,065
297,829
637,894
2
(685,653)
1,256,677
571,026
Dividends received
Interest received
4,914
-
3,480
58
57
Number of
Shares, Units
or Warrants
Expiry
Date
43,686
32,200
102
1,400,000
3,335,980
160,000
134,700
700,000
9,977
1,369
1,000,000
321,100
75,000
22,025
30,000
25,564
AcuityAds Holding Inc.
Opsens Inc.
Constellation Software Inc.
Futura Loyalty Group Inc.
ZipLocal Inc.
Echoworx Corporation (Restricted)
Eight Solutions Inc., Warrants (Restricted)
Enablence Technologies Inc.
GoldMoney Inc.
Kinaxis Inc.
Mediascrape (Restricted)
Memex Inc.
Memex Inc., Warrants
Obsidian Strategies Inc., Class A
TIO Networks Corp.
Wi-Lan Inc.
200,000
1,000,000
274,110
64,091
412,500
1,500,000
750,000
57,712
200,000
197,880
242,858
151,428
1,162,500
4,700,000
150,000
750,000
750,000
26,163
45,185
42,558
Materials (18.5%)
AGR-O Phosphate Inc. (Restricted)
Alpaca Resources Inc. (Restricted)
Alpaca Resources Inc. (Restricted)
Balmoral Resources Ltd.
Brazilian Resources Inc. (Restricted)
Cordillera Gold Ltd.
Cordillera Gold Ltd., Warrants (Restricted)
Dalradian Resources Inc.
Desiree Resources Inc. (Restricted)
Encanto Potash Corp.
Encanto Potash Corp., Warrants
Noront Resources Ltd., Warrants
NovaDx Ventures Corp.
Precision Assessment Technology Corp.
Sandspring Resources Ltd.
Shamika Resources Inc.
Shamika Resources Inc., Warrants
Torex Gold Resources Inc.
Veris Gold Corp., Warrants
1,167
5,927
200,000
1,403,000
16,613
500
Industrials (9.1%)
New Flyer Industries Inc.
PFB Corporation
Pueblo Lithium Inc. (Restricted)
Synergex Corporation
Tree Island Steel Ltd.
Windtronics LLC. (Restricted)
500,000
16,485
107,900
7,150
17,331
30,450
Health Care (4.8%)
Avivagen Inc.
ProMetic Life Sciences Inc.
Revive Therapeutics Ltd., Warrants
Theratechnologies Inc., Warrants
Titan Medical Inc., Warrants
Titan Medical Inc., Warrants
Strike
Price
Average
Cost*
$
27/08/2017
$0.60
02/06/2017
$0.25
01/01/2049
$0.25
03/12/2018
17/03/2019
$0.16
$0.50
01/01/2049
$0.30
02/12/2016
02/12/2016
$0.50
$0.50
18/12/2016
06/08/2017
19/02/2017
16/11/2020
$0.85
$3.00
$2.00
$1.60
30,580
20,694
51,796
62,312
16,830
150,960
64,840
46,593
53,792
300,000
63,992
33,038
56,487
52,570
1,004,484
Fair
Value
$
58,977
47,978
51,002
1
3
28,800
47,250
44,996
71,024
41,743
67,800
83,850
543,424
100,000
13,706
42,621
375,000
150,000
62,906
40,000
20,777
16
575,699
1,211,043
45,000
150,000
59,890
2,846,658
1
56,400
75,000
1
56,558
18,799
1
85,501
1
60,437
352,699
28,987
52,890
1,598,515
54,072
150,000
1,884,464
46,948
54,706
3,800
1
66,950
172,405
36,350
18,217
2,860
8,524
65,951
37,500
45,993
3,325
520
3,350
90,688
58
Number of
Shares, Units
or Warrants
Expiry
Date
2,163
1,501,000
275,000
4,584,500
Cara Operations Ltd.
Intercable ICH Inc.
CY Oriental Holdings Ltd.
Knightscove Media Corp., Class A
50,000
328,000
328,000
3,451,000
184,500
Energy (2.6%)
Nuwest Oil & Gas Ltd. (Restricted)
Pele Mountain Resources Inc.
Pele Mountain Resources Inc., Warrants (Restricted)
Royal Coal Corp.
Toro Oil & Gas Ltd.
600,000
1,100,000
Utilites (0.0%)
Poplar Point Energy Inc.
SonnenEnergy Corp.
41,487
500,000
CPN International Inc. (Restricted)
Peace Country Communications Ltd. (Restricted)
19,231
225,000
Information Technology(0.0%)
Evergreen Energy Inc. (Restricted)
Energy (0.0%)
Standard Drilling Inc. (Restricted)
Total investments
Total net assets
Strike
Price
Average
Cost*
$
05/02/2019
$0.05
Fair
Value
52,864
1,171,903
664,003
1,888,770
$
64,998
5
65,003
25,000
16,400
699,983
42,435
783,818
9,840
40,590
50,430
250,000
550,000
800,000
-
118,875
1
118,876
-
9,393,021
1,274,649
49,586
17
1
-
49,587
17
9,442,608
(15,959)
9,426,649
626,620
$ 10,053,269 $
1,274,666
1,274,666
626,620
1,901,286
Sector
Consumer Staples
Energy
Financials
Healthcare
Industrials
Materials
Total
2016
2015
3.42%
5.70%
0.00%
7.14%
2.65%
0.59%
0.00%
4.13%
4.77%
16.21%
9.07%
17.13%
28.58%
26.46%
18.55%
11.88%
32.96%
10.76%
100.00%
100.00%
59
MARQUEST CANADIAN RESOURCE FUND
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
2,731,269
927,132
646
90,444
3,749,491
1,422,861
1,400,112
1,539
2,824,512
134
40
22,161
22,335
120
26,226
67,523
93,869
3,727,156
2,730,643
678,065
3,049,091
306,474
2,424,169
5.55
6.12
3.54
3.89
Current Liabilities
Class A
Class F
Class A
Class F
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
60
2016 ($)
2015 ($)
3,469
91
663,414
825,948
1,492,922
4,384
117
6
(1,573,193)
1,385,696
(182,990)
20,146
42,551
20,428
1,179
15,401
267
1,140
120
101,232
(32,305)
68,927
23,028
36,779
14,018
2,659
15,528
78
970
157
93,217
(26,112)
67,105
Income
Dividends
Other income
Total Income (loss)
Expenses (Note 4)
Management fees
Operating fees
Audit fees
Custodian fees
Legal fees
Total Expenses
Net Expenses
from operations
1,423,995
(250,095)
187,648
1,236,347
(36,183)
(213,912)
1.93
2.21
(0.42)
(0.33)
Class A
Class F
Class A
Class F
61
2016 ($)
Class A
2015 ($)
306,474
383,594
2016 ($)
Class F
2,424,169
187,648
(36,183)
216,275
(32,332)
183,943
65,982
(48,376)
17,606
32,521
(643,946)
(611,425)
371,591
(18,577)
624,922
678,065
365,017
2015 ($)
3,025,206
1,236,347
(213,912)
918,347
(1,215,370)
(297,023)
(510,935)
3,049,091
2,514,271
2016 ($)
Total
2,730,643
2015 ($)
3,408,800
1,423,995
(250,095)
248,796
(676,278)
(427,482)
984,329
(1,263,746)
(279,417)
996,513
(529,512)
3,727,156
2,879,288
62
2016 ($)
2015 ($)
Adjustments for:
1,423,995
(250,095)
(663,414)
(825,948)
(3,786,819)
3,767,255
893
134
42,471
(41,433)
1,573,193
(1,385,696)
(2,798,751)
2,706,524
116
36,452
(118,257)
248,796
(680,343)
(431,547)
984,721
(1,303,593)
(318,872)
(472,980)
1,400,112
927,132
(437,129)
927,414
490,285
Dividends received
4,362
4,500
63
Number of
Shares, Units
or Warrants
150,000
32,422
4,500,000
3,000,000
1,500,000
114,041
111,150
111,150
140,617
395,000
1,900,000
116,750
3,780,200
200,000
61,000
51,698
157,777
78,888
70,116
74,445
756,519
17,624
Expiry
Date
Precious Metals (30.4%)
Algold Resources Ltd., Warrants
Asanko Gold Inc.
Campbell Resources Inc.
Cordillera Gold Ltd.
Cordillera Gold Ltd., Warrants
Dalradian Resources Inc.
Globex Mining Enterprises Inc.
Globex Mining Enterprises Inc., Warrants (Restricted)
Integra Gold Corp.
International Roraima Gold Corporation
Northern Star Mining Corp.
Red Ore Gold Inc.
Red Pine Exploration Inc., Warrants
Sandspring Resources Ltd.
Shear Diamonds Ltd.
Torex Gold Resources Inc.
Treasury Metals Inc.
Treasury Metals Inc., Warrants (Restricted)
Wolfden Resources Corp.
Yamana Gold Inc.
120,937
33,600
1,266,666
458,334
458,334
149,377
580,952
435,714
83,651
42,060
135,800
87,532
60,000
2,756,000
71,871
61,427
242,858
1,885,600
202,348
133,367
16,000,000
810,000
Base Metals (22.1%)
Balmoral Resources Ltd.
Canada Carbon Inc.
Commerce Resources Corp.
Copper Fox Metals Inc.
Copper Fox Metals Inc., Warrants (Restricted)
Critical Elements Corp.
Encanto Potash Corp.
Encanto Potash Corp., Warrants
Falco Resources Ltd.
Hudson Resources Inc.
Laramide Resources Ltd., Warrants (Restricted)
Lithium Americas Corp.
Lithium Americas Corp., Warrants
Logan Copper Inc.
Nemaska Lithium Inc.
Noront Resources Ltd.
Noront Resources Ltd., Warrants
Pele Mountain Resources Inc., Warrants
Royal Nickel Corp.
Royal Nickel Corp., Warrants
Starfield Resources Inc.
World Wide Minerals Ltd.
74,224
29,080
227,191
27,828
84,175
1,000,000
7,735
Oil & Gas (20.8%)
Andora Energy Corp. (Restricted)
Canadian Energy Services & Technology Corp.
Fission 3.0 Corp.
High Arctic Energy Services Inc.
NexGen Energy Ltd.
Poplar Point Energy Inc.
Raging River Exploration Inc.
Strike
Price
04/12/2016
$0.30 $
31/12/2049
$0.25
14/12/2031
$0.55
01/05/2017
$0.50
24/09/2018
02/12/2016
02/12/2016
$0.55
$0.20
$0.90
09/06/2018
$0.15
03/12/2018
$0.16
12/24/2017
$0.50
09/06/2017
$0.90
17/03/2019
13/04/2018
$0.50
$0.07
11/07/2016
$0.80
Average
Cost*
70,586
300,000
124,304
44,460
54,138
48,000
11,675
60,000
21,602
118,342
71,000
80,702
117,640
1,122,449
Fair
Value
$
3,000
160,165
150,000
2
111,760
44,460
112,494
2
4
114,000
119,422
91,511
1,578
105,912
118,433
1,132,743
53,388
12,180
95,000
55,000
34,007
61,000
45,678
20,290
75,284
12
468,520
17,847
21,493
26
127,000
800,000
1,886,725
106,424
9,240
88,667
55,000
94,108
55,190
80,305
17,665
95,410
21,000
3
95,588
19,964
2
83,974
667
16
1
823,224
325,000
120,481
15,146
115,737
42,873
340,000
74,449
31,916
118,356
19,311
112,982
223,906
79,516
64
Number of
Shares, Units
or Warrants
31,963
368,000
Expiry
Date
Oil & Gas (Cont.) (20.8%)
Spartan Energy Corp.
Toro Oil & Gas Ltd.
Strike
Price
Average
Cost*
$
88,908
84,640
1,207,234
Fair
Value
$
108,355
80,960
775,302
4,216,408
2,731,269
Total investments
Total net assets
4,216,408
(7,847)
4,208,561
995,887
5,204,448 $
2,731,269
2,731,269
995,887
3,727,156
$
Sector
Base Metals
Oil & Gas
Precious Metals
Total
2016
2015
22.09%
10.29%
20.80%
17.38%
30.39%
24.44%
26.72%
47.89%
100.00%
100.00%
65
MARQUEST CANADIAN RESOURCE FUND (CORPORATE CLASS)
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
Refundable taxes receivable (note 4)
Receivable from other corporate classes (note 4)
3,044,336
197,482
22,161
1,517,053
186,440
4,967,472
2,439,729
183,313
8,080
1,517,053
186,440
4,334,615
145
73
22,161
22,379
188
8,330
8,518
4,945,093
4,326,097
4,916,247
28,846
4,297,571
28,526
4.54
4.82
3.51
3.70
Current Liabilities
Payable on redemption of redeemable shares
Series A
Series F
Series A
Series F
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
66
2016 ($)
2015 ($)
(364,198)
1,596,131
1,231,933
2
(956,416)
739,398
(217,016)
24,713
28,296
1,190
12,428
896
1,140
403
69,066
(31,925)
37,141
33,509
10,076
591
12,645
19
970
38
57,848
(7,482)
50,366
Income
Total Income (loss)
Expenses (Note 4)
Management fees
Operating fees
Audit fees
Custodian fees
Legal fees
Total Expenses
Net Expenses
from operations
1,194,792
(267,382)
1,188,524
6,268
(265,767)
(1,615)
1.03
1.02
(0.17)
(0.18)
Series A
Series F
Series A
Series F
67
2016 ($)
Series A
4,297,571
1,188,524
2015 ($)
6,846,785
(265,767)
2016 ($)
Series F
2015 ($)
28,526
39,318
6,268
(1,615)
10,606
(16,554)
(5,948)
(1,531)
(1,531)
43,583
(613,431)
(569,848)
29,206
(1,191,903)
(1,162,697)
618,676
(1,428,464)
4,916,247
5,418,321
320
(3,146)
28,846
36,172
2016 ($)
Total
4,326,097
2015 ($)
6,886,103
1,194,792
(267,382)
54,189
(629,985)
(575,796)
29,206
(1,193,434)
(1,164,228)
618,996
(1,431,610)
4,945,093
5,454,493
68
2016 ($)
2015 ($)
Adjustments for:
1,194,792
(267,382)
364,198
(1,596,131)
(32,521)
645,766
145
(115)
576,134
956,416
(739,398)
(918,347)
1,232,398
(722)
262,965
54,189
(616,154)
(561,965)
29,206
(1,210,490)
(1,181,284)
14,169
183,313
197,482
(918,319)
1,124,991
206,672
Interest received
-
2
69
(CORPORATE CLASS)
Average
Cost
Number of Units
497,441
MUTUAL FUND TRUSTS (61.6%)
Marquest Canadian Resources Fund, Class F
TOTAL MUTUAL FUND TRUSTS
Total net assets
$
$
3,766,802
3,766,802
3,766,802
1,900,757
5,667,559
Fair
Value
$
$
3,044,336
3,044,336
3,044,336
1,900,757
4,945,093
Sector
Base Metals
Oil & Gas
Precious Metals
Total
% of Underlying Fund's Net Assets
June 30,
December 31,
2016
2015
22.09%
10.29%
20.80%
17.38%
30.39%
24.44%
26.72%
47.89%
100.00%
100.00%
70
MARQUEST COVERED CALL CANADIAN BANKS PLUS FUND
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
5,038,776
421,757
21,265
6,000
5,487,798
2,148,824
153,253
9,309
85,000
2,396,386
250
31
2,899
4,450
7,630
112
167,769
7,007
1,109
175,997
5,480,168
2,220,389
5,036,309
443,859
1,975,846
244,543
8.79
8.97
8.76
8.94
Current Liabilities
Class A
Class F
Class A
Class F
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
71
2016 ($)
2015 ($)
78,534
2
(13,413)
60,143
(4)
63,784
1,411
190,457
16,989
2
(691)
14,845
(2)
(41,850)
(10,707)
Net Expenses
32,870
2,000
51,972
3,415
30,284
2,788
1,254
1,140
125,723
(86,616)
39,107
7,586
471
21
24,250
3,928
25,854
301
970
606
63,987
(54,826)
9,161
from operations
151,350
(19,868)
133,167
18,183
(18,149)
(1,719)
0.32
0.43
(0.21)
(0.08)
Income
Dividends
Other income
Total Income (loss)
Expenses (Note 4)
Management fees
Interest charges
Operating fees
Audit fees
Custodian fees
Legal fees
Total Expenses
Class A
Class F
Class A
Class F
72
2016 ($)
Class A
2015 ($)
2016 ($)
Class F
2015 ($)
1,975,846
276,125
244,543
144,944
133,167
(18,149)
18,183
(1,719)
(36,848)
(58,917)
(95,765)
(5,941)
(10,960)
(16,901)
(4,581)
(6,296)
(10,877)
(2,361)
(2,554)
(4,915)
3,063,386
89,657
(129,982)
3,023,061
1,216,089
12,699
(29,877)
1,198,911
183,621
9,353
(964)
192,010
108,410
4,173
(308)
112,275
3,060,463
1,163,861
199,316
105,641
5,036,309
1,439,986
443,859
250,585
2016 ($)
Total
2015 ($)
2,220,389
421,069
151,350
(19,868)
(41,429)
(65,213)
(106,642)
(8,302)
(13,514)
(21,816)
3,247,007
99,010
(130,946)
3,215,071
1,324,499
16,872
(30,185)
1,311,186
3,259,779
1,269,502
5,480,168
1,690,571
73
2016 ($)
2015 ($)
151,350
(19,868)
Adjustments for:
4
13,413
(63,784)
3,341
(6,824,542)
3,815,192
(11,956)
250
1,919
(2,914,813)
2
691
41,850
1,705
(1,550,969)
501,093
(2,707)
809
(1,027,394)
(11,740)
3,326,007
(130,946)
3,183,321
(6,547)
1,243,599
(84,572)
1,152,480
(4)
268,508
153,253
421,757
(2)
125,086
10,244
135,328
66,578
-
14,282
(21)
Dividends received
Interest paid
74
Expiry Date
Number of Shares
6,159
7,813
4,939
10,110
392
7,448
6,239
2,927
14,402
11,538
8,301
6,510
5,964
9,017
(50)
(50)
(20)
(50)
Exercise
Financials (92.0%)
Bank of Montreal
Bank of Nova Scotia
Fairfax Financial Holdings Ltd.
Great-West Lifeco Inc.
Industrial Alliance Insurance & Financial Services Inc.
Intact Financial Corp.
Manulife Financial Corp.
Bank of Nova Scotia
TOTAL CALL OPTIONS
Average
Cost*
(Premiums)
$
15/07/2016
15/07/2016
15/07/2016
15/07/2016
Total investments and option contracts
Total net assets
$66.00
$36.00
$92.00
$80.00
506,519 $
485,877
483,037
258,873
273,502
264,467
253,313
261,854
285,848
498,992
275,602
496,965
259,884
507,166
5,111,899
(2,450)
(1,600)
(700)
(3,650)
(8,400)
$
5,103,499
(1,224)
5,102,275
445,842
5,548,117 $
Fair
Value
504,730
494,641
479,281
249,212
272,765
253,828
253,366
270,133
254,483
509,864
246,125
496,973
253,112
500,263
5,038,776
(825)
(625)
(2,500)
(500)
(4,450)
5,034,326
5,034,326
445,842
5,480,168
Sector
Financials
Call Options
Total
2016
2015
91.94%
96.78%
-0.08%
-0.05%
8.14%
3.27%
100.00%
100.00%
75
(CORPORATE CLASS)
As at,
June 30,
2016 ($)
December 31,
2015 ($)
Assets (Note 2)
Current Assets
Cash
11,487,848
764,259
48,826
137,246
12,438,179
11,582,662
575,134
55,557
345,310
12,558,663
584
74
8,762
10,150
19,570
691
4,181
6,408
11,280
12,418,609
12,547,383
11,680,067
738,542
11,947,348
600,035
9.62
9.69
9.65
9.72
Current Liabilities
Series A
Series F
Series A
Series F
"Andrew A. McKay"
Gerry L. Brockelsby
Director
Andrew A. McKay
Director
76
(CORPORATE CLASS)
2016 ($)
2015 ($)
237,896
9
431
202
(424,920)
200,150
(18)
532,532
(6,402)
539,880
151,493
130
98
3
108,809
117,213
(47)
(476,884)
(99,185)
106,374
9,931
178
124,837
8,036
24,915
8,610
1,140
3,872
287,893
(158,091)
129,802
76,243
2,283
30
72,979
8,246
30,414
1,363
970
2,744
195,272
(107,229)
88,043
410,078
(187,228)
386,243
23,835
(178,314)
(8,914)
0.32
0.36
(0.22)
(0.25)
Income
Dividends
Other income
Total Income (loss)
Expenses (Note 4)
Management fees
Interest charges
Operating fees
Audit fees
Custodian fees
Legal fees
Total Expenses
Net Expenses
from operations
Series A
Series F
Series A
Series F
77
(CORPORATE CLASS)
2016 ($)
Series A
11,947,348
2015 ($)
6,968,685
2016 ($)
Series F
2015 ($)
600,035
381,258
386,243
(178,314)
23,835
(8,914)
(221,954)
(184,732)
(406,686)
(61,349)
(125,852)
(187,201)
(15,942)
(10,434)
(26,376)
(4,331)
(5,564)
(9,895)
1,524,011
382,315
(2,153,164)
(246,838)
3,679,812
170,417
(883,917)
2,966,312
203,876
17,120
(79,948)
141,048
77,682
6,647
(41,549)
42,780
2,600,797
138,507
23,971
9,569,482
738,542
405,229
2016 ($)
Total
2015 ($)
(267,281)
11,680,067
12,547,383
7,349,943
410,078
(187,228)
(237,896)
(195,166)
(433,062)
(65,680)
(131,416)
(197,096)
1,727,887
399,435
(2,233,112)
(105,790)
3,757,494
177,064
(925,466)
3,009,092
(128,774)
12,418,609
2,624,768
9,974,711
78
(CORPORATE CLASS)
2016 ($)
2015 ($)
Adjustments for:
410,078
(187,228)
18
424,920
(532,532)
3,742
(13,986,901)
14,179,396
6,731
584
9,314
515,350
47
(108,809)
476,884
16,873
(6,867,460)
4,391,916
(5,594)
2,695
(2,280,676)
(29,046)
1,727,887
(2,025,048)
(326,207)
(94,274)
3,436,874
(924,466)
2,418,134
(18)
189,143
575,134
764,259
(47)
137,458
282,299
419,710
Dividends received
Interest received
Interest paid
244,627
9
(178)
145,899
130
(30)
79
(CORPORATE CLASS)
Expiry Date
Number of Shares
14,026
17,820
11,249
23,047
897
16,951
14,222
6,682
32,856
26,289
18,930
14,831
13,600
20,575
(100)
(100)
(50)
(100)
Exercise
Financials (92.5%)
Bank of Montreal
Bank of Nova Scotia
Fairfax Financial Holdings Ltd.
Industrial Alliance Insurance & Financial Services Inc.
Manulife Financial Corp.
Bank of Nova Scotia
TOTAL CALL OPTIONS
Average
Cost*
(Premiums)
$
15/07/2016
15/07/2016
15/07/2016
15/07/2016
Total investments and option contracts
Total net assets
$66.00
$36.00
$92.00
$80.00
1,153,835
1,140,571
1,099,664
686,224
613,183
601,291
626,533
596,645
717,489
1,138,909
630,213
1,133,601
600,222
1,156,260
11,894,640
(4,900)
(3,200)
(1,750)
(7,300)
(17,150)
Fair
Value
$
1,149,430
1,128,183
1,091,603
568,109
624,160
577,690
577,555
616,682
580,566
1,161,711
561,275
1,132,199
577,184
1,141,501
11,487,848
(1,650)
(1,250)
(6,250)
(1,000)
(10,150)
11,877,490
11,477,698
(5,693)
11,871,797
11,477,698
940,911
940,911
$ 12,812,708 $ 12,418,609
Sector
Financials
Call Options
Total
2016
2015
92.50%
92.31%
-0.08%
-0.05%
7.58%
7.74%
100.00%
100.00%
80
Marquest Group of Funds
Notes to Financial Statements (Expressed in Canadian Dollars)
For the period ended June 30, 2016 (unaudited)
1. THE FUNDS
The Funds are comprised of 9 mutual funds trusts (“Trust Funds”) established under the laws of Ontario by declarations of trusts as amended and restated from time to time.
Marquest Corporate Class Funds Ltd. (the “Corporation”), was incorporated by articles of incorporation, under the laws of Ontario on March 11, 2004 as amended on May 26,
2004, and amended again on July 14, 2010. The Corporation has 5 classes of mutual fund shares. The Funds are referred to individually as a “Fund” and collectively as the
“Funds”. The Funds’ registered office is 161 Bay Street, Suite 4420, P.O. Box 204, Toronto, Ontario M5J 2S1. The Funds invest in Canadian, U.S. and International equities,
Fixed income securities, Canadian short-term debt securities and derivatives. Most of the Funds’ investments are listed and traded on stock exchange markets in Canada and the
U.S. although the Funds may also invest in private equity securities. The Fund manager (“Fund Manager”) is Marquest Asset Management Inc. The Funds’ investment activities
and administration is managed by the Manager. The Funds’ custodian is RBC Investor Trust Services.
The Funds’ active classes launch dates were as follows:
Name of Fund
Class A
Class F
Classes AA
and F-AA
10-Aug-87
17-Jul-14
-
4-Jun-98
7-Feb-06
-
1-Dec-14
1-Dec-14
-
24-Jun-03
7-Feb-06
28-May-13
27-Sep-04
7-Feb-06
-
24-Jun-02
7-Feb-06
-
31-Oct-06
7-Sep-06
17-Jul-14
17-Jul-14
-
Marquest Covered Call Banks Plus Fund
17-Jul-14
17-Jul-14
-
The Corporation’s class active series launch dates were as follows:
Name of Class
Series A
Series F
Marquest Short Term Income Fund (Corporate Class)
25-Jun-04
-
Marquest Canadian Resource Fund (Corporate Class)
25-Jun-04
22-Jul-10
22-Jul-10
22-Jul-11
Marquest American Dividend Growth Fund (Corporate Class)
Marquest Monthly Pay Fund (Corporate Class)
30-Jun-11
30-Jun-11
Marquest Covered Call Canadian Banks Plus Fund (Corporate Class)
10-Nov-11
10-Nov-11
2. SIGNIFICANT ACCOUNTING POLICIES
These semi-annual financial statements have been prepared in accordance with International Standard 34, Interim Financial Reporting, as issued by the International Accounting
Standards Board. Significant accounting policies used in preparing the semi-annual financial statements are consistent with those used in preparing the annual financial
statements. These semi-annual financial statements do not include all the information and disclosures required in annual financial statements and, accordingly, should be read in
conjunction with the Funds’ most recent December 31, 2015, annual financial statements.
These semi-annual financial statements were authorized for issue by the Manager on August 26, 2016.
3. REDEEMABLE PARTICIPATING UNITS / SHARES
The Funds are authorized to issue an unlimited number of units/shares as follows:
Name of Fund
Name of Series
Unit Types Available
A, F
A, F
A, F
A, F, AA, F-AA
A, F
A, F
A, F
A, F
A, F
Series Available
A, F
A, F
A, F
A, F
A, F
81
3. REDEEMABLE PARTICIPATING UNITS / SHARES (continued)
During the periods ended, June 30, 2016 and June 30, 2015 the following units/shares were issued (including shares issued on fund mergers and transfers from other classes)
and redeemed (including transfers to other classes):
June 30, 2016
Outstanding,
Beginning of Period
Units/Shares
Issued
Units/Shares
Reinvested
Units/Shares
Redeemed
Outstanding,
Ending of Period
Class A
Class F
234,598
510
47,004
400
358
1
(63,601)
-
218,359
911
Series A
111,726
1,906
-
(61,610)
52,022
Class A
Class F
495,982
9,691
77,331
-
9,963
139
(130,700)
-
452,576
9,830
Class A
Class F
13,372
416,756
13,060
103,393
79
1,459
(2,667)
(50,066)
23,844
471,542
37,311,038
286,922
397,829
9,011
1,762,682
71,228
14,331
-
2,036,808
5,433
30,205
393
(4,944,588)
(74,005)
(83,042)
(3,117)
36,165,940
289,578
359,323
6,287
77,819
3,456
1,667
5,380
429
(14,446)
(1,758)
68,753
3,794
1,111,480
109,886
103,053
13,322
17,329
1,754
(233,491)
(3,518)
998,371
121,444
Series A
Series F
395,139
32,514
199,845
20,135
12,288
1,822
(29,888)
(3,167)
577,384
51,304
Series A
Series F
210,656
54,965
18,046
19,463
254
180
(21,893)
(10,931)
207,063
63,677
Class A
Class F
225,597
27,362
352,413
21,156
10,178
1,042
(15,040)
(104)
573,148
49,456
1,238,231
61,719
161,588
21,064
39,878
1,767
(225,505)
(8,340)
1,214,192
76,210
Class A
Class F
203,636
2,044
6,575
287
-
(24,675)
-
185,536
2,331
Class A
Class F
86,472
623,554
41,914
5,262
-
(6,287)
(130,799)
122,099
498,017
1,224,638
7,705
9,699
2,271
-
(152,251)
(3,989)
1,082,086
5,987
Class A
Class AA
Class F
Class F-AA
Series A
Series F
Class A
Class F
Series A
Series F
Matrix Canadian Resource Fund (Corporate Class)
Series A
Series F
82
3. REDEEMABLE PARTICIPATING UNITS / SHARES (continued)
June 30, 2015
Outstanding,
Beginning of Period
Units/Shares
Issued
Units/Shares
Reinvested
Units/Shares
Redeemed
Outstanding,
Ending of Period
Class A
Class F
312,482
-
17,517
3,621
767
-
(75,658)
(10)
255,108
3,611
Series A
128,338
4,022
-
(19,059)
113,301
Class A
Class F
717,139
146,965
23,401
7,278
11,032
3,595
(143,250)
-
608,322
157,838
1
53,595
13,942
389,433
8
856
27,110
13,951
416,774
41,087,920
457,769
853,220
11,538
3,683,187
35,565
28,443
2,313
1,692,777
4,493
41,118
355
(7,560,194)
(204,343)
(262,850)
(460)
38,903,690
293,484
659,931
13,746
Series A
Series F
158,699
2,503
678
410
5,339
25
(68,992)
(1,327)
95,724
1,611
Class A
Class F
797,341
92,436
248,683
9,936
12,348
1,237
(78,262)
(2,229)
980,110
101,380
71,592
1,264
171,750
4,796
2,167
111
(13,160)
(26)
232,349
6,145
191,044
34,035
14,942
875
58
39
(22,539)
(1,301)
183,505
33,648
28,634
14,744
129,619
11,518
1,363
439
(3,190)
(31)
156,426
26,670
Series A
Series F
665,223
36,140
360,666
7,412
16,898
655
(86,674)
(4,052)
956,113
40,155
Class A
Class F
265,894
1,125
7,175
-
-
(44,632)
-
228,437
1,125
Class A
Class F
82,663
600,598
13,805
180,068
-
(10,520)
(237,963)
85,948
542,703
1,667,680
9,175
7,305
-
-
(288,934)
(357)
1,386,051
8,818
Class A
Class F
Class A
Class AA
Class F
Class F-AA
Series A
Series F
Series A
Series F
Class A
Class F
Matrix Canadian Resource Fund (Corporate Class)
Series A
Series F
-
83
4. EXPENSES AND RELATED PARTY TRANSACTIONS
The following summarizes the annual management fee for the Funds:
Class A
Class F
Series A
Series F
Class A
Class F
Class A
Class F
Class A
Class AA
Class F
Class F-AA
Series A
Series F
Class A
Class F
Class A
Class F
Series A
Series F
Series A
Series F
Series A
Series F
Class A
Class F
Class A
Class F
Series A
Series F
0.50%
0.20%
0.60%
0.30%
1.00%
0.40%
1.40%
0.65%
2.00%
2.00%
0.75%
0.75%
2.00%
0.75%
2.10%
1.10%
2.00%
1.00%
2.00%
1.00%
1.65%
0.65%
1.65%
0.65%
2.50%
1.25%
2.00%
1.00%
2.00%
1.00%
per annum on average net asset value
As the Manager of the Funds and Trustee of the Trust Funds, the Funds are dependent on Marquest Asset Management Inc. for administration and management of all matters
relating to their operations.
Marquest Canadian Resource Fund (Corporate Class) and Marquest Monthly Pay Fund (Corporate Class) invest solely in securities of their respective Marquest Mutual Funds and
do not pay duplicate management fees. The rates listed above indicate the management fees directly borne by the Corporation. During the period ended June 30, 2016, the
Manager chose to charge Marquest Money Market Fund and Marquest Short Term Income Fund (Corporate Class) a 0.30% management fee (2015 – 0.30%).
The Manager has, at its discretion, agreed to waive certain expenses associated with some of the Funds. The waived amounts are shown in the Statements of Comprehensive
Income as expenses waived.
The Manager, its officers and directors and other Funds invest in units/shares of the Funds from time to time in the normal course of business. All transactions with the Manager
are measured at the exchange amounts, and occur within the normal course of business.
Amounts payable to and receivable from other corporate classes, are non-interest bearing and due on demand. These balances arose as a result of the Marquest Canadian
Resource Fund (Corporate Class), remitting the corporation’s aggregate taxes owing on behalf of the other corporate classes and itself. These transactions are measured at the
exchange amounts, and occur within the normal course of business.
Included in the each of the Funds’ expenses in the Statements of Comprehensive Income, is the corresponding component of sales tax. The Harmonized Sales Tax (HST)
combines the GST rate of 5% with the provincial sales tax of certain provinces. Each Fund’s HST rate is calculated using the proportionate investment holding by unitholder’s
provincial residency as at September 30 of the prior year. HST rate are determined for expenses attributable to a Fund’s individual class/series, were applicable.
From time to time, the Manager may earn fees and commissions on securities transactions in which the Fund participates. The fees and commissions are based on standard
agreements at market prices. For the period ended June 30, 2016, approximately $1,620 (2015 - $nil) was received by the Manager in related fees and commissions under the
standing instructions given by the IRC.
84
5. DERIVATIVE TRANSACTIONS
The Manager may choose to use options, forward contracts, forward currency contracts and swaps to hedge against losses from changes in prices of the Funds’ investments and
from exposure to foreign currencies or gain exposure to individual securities and markets instead of buying and selling securities directly. There can be no assurance that the
hedging strategies will be effective. Losses may also arise if the counter party does not perform under the contract.
The Funds will only use derivatives as permitted by securities regulations.
The chart below outlines the futures contracts as at June 30, 2016 and December 31, 2015, held by the Funds:
As ofJune 30, 2016
Local
Currency
Number of Contracts
Bought (Sold)
US $
US $
US $
C$
USD
45
0.75549
16-Sep
3,399,709
3,470,400
(70,691)
(91,806)
USD
9
0.77140
16-Sep
694,260
694,080
180
234
(Corporate Class)
USD
7
0.77140
16-Sep
539,980
539,840
140
182
Local
Currency
Number of Contracts
Bought (Sold)
USD
65
Future Security
Delivery
Price
IMM Canadian Dollar Future
Maturity
Date
Notional
Cost
$
Current
Value
Unrealized
Gain (loss)
Unrealized
Gain (loss)
As of December 31, 2015
Future Security
IMM Canadian Dollar Future
Delivery
Price
Maturity
Date
$
0.72795
16-Mar
Notional
Cost
Current
Value
Unrealized
loss
Unrealized
loss
US $
US $
US $
C$
4,731,675
4,701,450
30,225
41,986
6. BROKERAGE COMMISSIONS ON SECURITIES TRANSACTIONS AND SOFT DOLLARS
Certain Funds have incurred brokerage commissions, a portion of which may have been received by the Funds’ investment advisers in the form of investment or research
services. For the period ended June 30, 2016 the total soft dollars benefits received for the Funds was $8,583 (June 30 2015- nil).
No soft dollar services were included in the Transaction costs on the Statements of Comprehensive Income.
7. SECURITIES LENDING TRANSACTIONS
The Funds have entered into a securities lending program with its custodian, RBC Investor and Treasury Services. The aggregate fair value of all securities loaned by a Fund
cannot exceed 50% of the assets of the Fund. The Funds receive collateral of at least 105% of the value of the securities on loan. Collateral held is generally comprised of cash
and securities of, or guaranteed by, the Government of Canada or a province thereof.
The aggregate fair value of securities loaned and collateral held under securities lending transactions at June 30, 2016 and December 31, 2015 are as follows:
June 30, 2016
December 31, 2015
Outstanding loans
$
296,740
64,928
85,981
14,832,710
3,043,517
106,075
1,874,629
116,867
220,519
Outstanding loans
$
99,984
164,973
371,445
161,561
4,815,325
2,301,703
204,121
599,729
258,380
76,490
Collateral amount
$
Collateral as percentage
of securities loaned
311,579
68,175
90,281
15,574,353
3,195,699
111,381
1,968,364
122,713
231,548
Collateral amount
$
105
105
105
105
105
105
105
105
105
Collateral as percentage
of securities loaned
104,983
173,222
390,019
169,641
5,056,101
2,416,792
214,333
629,716
271,302
80,316
105
105
105
105
105
105
105
105
105
105
85
7. SECURITIES LENDING TRANSACTIONS (continued)
Securities lending income reported in the Statements of Comprehensive Income is net of a securities lending charge which the Fund’s custodian, RBC Investor Services Trust, is
entitled to receive.
June 30, 2016
Marquest Covered Call Canadian Banks Plus Fund (Corporate Clas
June 30, 2015
Marquest Covered Call Canadian Banks Plus Fund (Corporate Clas
Gross securities
lending income
$
98
64
198
134
14,200
1,331
154
1,044
3,145
303
Gross securities
lending income
$
324
159
196
29
22,263
611
134
152
990
241
Securities
lending charge
$
49
22
99
47
7,100
665
54
365
1,572
152
Securities
lending charge
$
162
56
98
5
11,132
306
47
54
495
121
%
50
34
50
35
50
50
35
35
50
50
%
50
35
50
17
50
50
35
36
50
50
Net securities
lending income
$
49
42
99
87
7,100
666
100
679
1,573
151
Net securities
lending income
$
162
103
98
24
11,131
305
87
98
495
120
Withholding
taxes
$
Net income
received
$
401
54
18
248
619
60
Withholding
taxes
$
49
42
99
87
6,699
612
82
431
954
91
Net income
received
$
268
11
14
3
162
103
98
24
10,863
294
87
98
481
117
8. TAXATION AND DISTRIBUTION
Taxation of Open - End Mutual Fund Trusts
Each of the Funds, other than the Corporation, Canadian Fixed Income Fund, Canadian Covered Call Fund and American Growth Dividend Fund, qualify as mutual fund trusts
under the provisions of the Income Tax Act (Canada) and, accordingly, are not subject to tax on that portion of their income, including net realized capital gains for their taxation
year, that is paid or payable to their unitholders. However, such part of each of the Fund’s taxable income and net realized capital gains that is not so paid or payable will be
taxable in the Fund. Income tax on their net realized capital gains not paid or payable will be generally recoverable by virtue of refunding provisions contained in the Income Tax
Act (Canada) and provincial income tax legislation, as redemptions occur. It is the intention of each of the Funds to pay all net taxable income and sufficient net taxable gains so
that each of the Funds will not be subject to income taxes. Occasionally, the Funds may distribute more than it earns. This excess distribution is a return of capital and is not
taxable to unit holders.
Taxation of Unit Trusts
The Canadian Fixed Income Fund, Canadian Covered Call Fund and American Growth Dividend Fund did not quality as mutual fund trusts as at their taxation year end of
December 31, 2015. A unit trust is not subject to tax on that portion of their income, including net realized capital gains for their taxation year, that is paid or payable to their
unitholders. However, such part of each of the unit trusts’ taxable income and net realized capital gains that is not so paid or payable will be taxable in the Fund. It is the intention
of each of the Funds to pay all net taxable income and sufficient net taxable gains so that each of the unit trusts will not be subject to income taxes. The unit trust may be subject
to alternative minimum tax.
Taxation of Open-End Mutual Fund Corporations
Under the Income Tax Act (Canada), the Corporation qualifies as a mutual fund corporation and computes its net income (loss) and net capital gains (losses) for income tax
purposes as a single entity. A mutual fund corporation is subject to a special 33 1/3% tax on taxable dividends received from corporations resident in Canada and to tax at normal
corporate rates on other income and net taxable realized capital gains for the year. The special 33 1/3% tax is refundable on payments of taxable dividends to shareholders at the
rate of $1 for each $3 of such dividend paid. All the tax on net taxable realized capital gains is refundable when the gains are distributed to shareholders as capital gains dividends
or through redemption of shares at the request of shareholders.
While the Corporation is taxed as a single legal entity, the individual mutual fund share series recognize, for accounting purposes, the impact of current and future taxes based on
the net income (loss) and increase (decrease) in net assets from realized and unrealized gains (losses), respectively, of each series. The mutual fund share series offsets the
future tax liability for refundable taxes payable with the refund expected upon payment of capital gains or ordinary dividends or upon redemption of shares. As a result, the future
tax liability for refundable taxes payable is eliminated. The mutual fund share series with negative taxable income does not recognize a tax asset for unused tax losses as future
utilization is not probable and a full valuation allowance has been recorded. Further, unused tax losses of one mutual fund share series may be used to offset taxable income of
another series. Therefore, where a mutual fund share series has positive net taxable income, the current tax liability has been offset with the utilization of unused tax losses from
other series to the extent possible. Any residual taxable income would be refundable upon payment of capital gains or ordinary dividends by the Corporation.
Certain Funds have accumulated net realized capital and non-capital losses. Non-capital losses may be carried forward to reduce future taxable income for up to twenty years.
86
8. TAXATION AND DISTRIBUTION (continued)
The non-capital losses for carry forward are as follows:
Year
Incurred
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Year
Expires
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Marquest
Small Companies
Fund
$
505,842
221,620
388,192
185,120
110,710
16,694
$
1,428,178
Marquest
Canadian Resource
Fund
$
3,078
261,646
204,708
81,004
42,706
$
593,142
Marquest
Global Balanced
Fund
$
1,829
432,024
238,976
196,659
83,192
$
952,680
In addition, certain Funds have net capital losses as follows:
$
1,185,652
6,691,676
10,055,120
9,440
Withholding Taxes
Certain Funds holding foreign securities may be subject to withholding tax, which are the taxes imposed by certain foreign countries for the investment income received from these
securities. Withholding taxes are accrued based on the accrual of the related foreign investment income and are included in “Withholding taxes” on the Statements of
Comprehensive Income and “Accrued liabilities” on the Statements of Financial Position.
9. FUND/SERIES MERGERS
The acquisition method of accounting was adopted for the merger of mutual funds whereby the continuing fund is the acquiring fund and the terminated fund is the acquired fund.
This identification was based on aspects of the continuing fund such as investment objectives and portfolio composition.
Effective as of the close of business, as set out below, the continuing funds acquired the portfolio assets of the corresponding terminated funds in exchange for shares in the
continuing fund. The value of the shares of the continuing fund issued in connection with these mergers was equal to the fair value of the investments transferred from the
respective terminated funds:
Terminating Fund
Marquest Donation Mining 2015 LP
Class
Merger Date
04/12/2015
Continuing Fund
Class
A
87
9. FUND/SERIES MERGERS (continued)
Continuing Fund
Class
A
Net Assets Acquired
567,156
Shares Issued
Exchange Ratio
48,977
3.666000
As a result of the mergers, in accordance with the Income Tax Act (Canada), all unrealized losses and certain elected unrealized gains of the terminating funds’ portfolios were
realized on the merger date. The financial statements of the continuing funds do not include the operating results of the terminated funds prior to the merger date.
10. RECONCILIATION OF NET ASSET VALUE
In accordance with Canadian securities regulations, a reconciliation between the net asset value and the net assets of an investment fund is required for financial reporting
periods.
For investments that are traded in an active market where quoted prices are readily and regularly available, IFRS 13, Fair Value Measurements requires that for an asset or a
liability measured at fair value has a bid price and an ask price, the price within the bid-ask spread that is most representative of fair value in the circumstances shall be used to
measure fair value regardless of where the input is categorized within the fair value hierarchy, rather than the use of closing sale prices currently used for the purpose of
determining net asset value. The Fund uses last traded close price unless the close price falls outside the bid-ask spread. As at June 30, 2016 and December 31, 2015 there were
no differences between the net asset value per unit/share and the net asset per unit/share of the funds.
11. CAPITAL MANAGEMENT DISCLOSURES
Units/Shares issued and outstanding represent the capital of the Funds. The Funds have no restrictions or specific capital requirements and are authorized to issue an unlimited
number of redeemable, transferable units/shares of each class/series available, as specified in the Funds’ Simplified Prospectus. Restrictions and specific requirements on capital
for each fund class are only applicable for minimum subscriptions as outlined in the Simplified Prospectus. The Statements of Changes in Financial Position and note 3 outline the
relevant changes in each of the Fund’s units/shares for the period. In accordance with the Funds’ investment objectives, portfolio management of the Funds’ capital will
encompass appropriate investing of subscriptions and the maintenance of sufficient liquidity levels for capital redemptions
12. FINANCIAL INSTRUMENTS
(a) Fair Value
Financial instruments of the Funds include cash, income receivable, dividends receivable, accrued interest receivable, miscellaneous receivable, margin deposits on futures
contracts, receivable for redeemable units/shares issued, receivable for investment securities sold, receivable from other corporate classes, accrued liabilities, payable for
redeemable units/shares redeemed, payable for investment securities purchased, distributions payable, and payable to other corporate classes. There are no significant
differences between the carrying values of these financial instruments and their fair values due to their short term nature. Investments and futures contract are carried at their fair
values as described in note 2. of the annual audited financial statements
88
12. FINANCIAL INSTRUMENTS (continued)
(a) Fair Value (continued)
The following tables present the Funds’ financial instruments measured at fair value classified by the fair value hierarchy set out in IFRS 13 Fair Value Measurement as of June
30, 2016 and December 31, 2015:
As of June 30, 2016
Level 1
$
Level 2
$
Level 3
$
Totals
$
-
2,188,080
-
-
789,022
-
789,022
-
2,028,139
-
2,028,139
-
4,904,946
83,273,213
-
439,273
-
12,403,486
6,166,399
2,188,080
-
4,904,946
149,351
83,422,564
-
439,273
-
18,569,885
5,517,193
150,604
-
5,667,797
4,556,827
130,523
-
4,687,350
5,038,776
-
-
5,038,776
11,487,848
-
-
11,487,848
1,070,042
96,991
107,633
1,274,666
2,408,784
140,545
181,940
2,731,269
3,044,336
-
Level 1
$
Level 2
$
-
3,044,336
Level 3
$
Totals
$
-
2,341,570
-
2,341,570
-
1,462,933
-
1,462,933
-
2,265,105
-
2,265,105
-
4,365,195
-
4,365,195
-
109,150,611
109,150,611
-
592,625
-
14,540,794
6,392,053
-
592,625
-
20,932,847
4,260,197
113,714
-
4,373,911
4,504,701
134,390
-
4,639,091
2,148,824
-
-
2,148,824
11,582,662
-
-
11,582,662
1,636,375
33
107,616
1,132,708
108,213
181,940
2,439,729
-
1,744,024
1,422,861
-
2,439,729
Fair values are classified as Level 1 when the related securities or derivatives are actively traded and a quoted price is available. If an instrument classified as Level 1
subsequently ceases to be actively traded, it is transferred out of Level 1. In such cases, instruments are reclassified into Level 2, unless the measurement of its far values
requires the use of significant unobservable inputs, in which case it is classified as Level 3.
During the period ended June 30, 2016, the following transfer of financial instruments fair value between Level 1 and Level 2 occurred:
June 30, 2016
Marquest Canadian Resources Fund
Transfer from Level 1 to Level 2
$
-
Transfer from Level 2 to Level 1
$
640,575
During the year ended December 31, 2015, no financial instruments were transferred between Level 1 and Level 2.
89
The Manager is responsible for performing the fair value measurements included in the financial statements of the Fund, including Level 3 measurements. The Manager obtains
pricing from a third party pricing vendor, as applicable, which is monitored by the Chief Investment Officer and the Chief Compliance Officer each day. At each financial reporting
date, the Chief Financial Officer (CFO), of the Manager reviews and approves all Level 3 fair value measurements.
Realized and unrealized gains and losses related to Level 3 securities, are included in the Statements of Comprehensive Income “Net realized gain (loss) on the sale of
investment including foreign exchange gain (loss)” and “Net change in unrealized appreciation (depreciation) in value of investments” respectively. Transfers in and out of Level 3
are due to the changes in the observability of market data, such as a recent new transaction or due to the passage of time, respectively.
The following tables summarize the changes in Level 3 securities for the period ended June 30, 2016 and year ended December 31, 2015:
June 30, 2016
Total Level 3 fair value, beginning of year
Purchased
Sold
Transfers in
Net change in unrealized appreciation (depreciation) in value of investments
Net realized gain (loss) on the sale of investments
Total Level 3 fair value, end of year
December 31, 2015
Total Level 3 fair value, beginning of year
Sold
Transfers in
Net change in unrealized appreciation (depreciation) in value of investments
Net realized gain (loss) on the sale of investments
Total Level 3 fair value, end of year
Marquest Monthly Pay
Fund
$
Marquest Small
Companies Fund
Marquest Canadian
Resource Fund
$
148,798
553
149,351
$
107,616
17,271
(17,254)
107,633
$
181,940
181,940
$
221,163
1,262,771
(1,376,318)
107,616
397,297
(68,464)
414,643
(561,536)
181,940
Certain Funds hold Level 3 securities in which there is uncertainty in estimating the fair value; stemming from current financial issues and lack of market quotations. Level 3
requires a significant unobservable data in its determination of fair value. The Marquest Canadian Resource Fund and the Marquest Small Companies Fund both hold private
equity investments classified as Level 3.
As at June 30, 2016 the Marquest Monthly Pay Fund, the Marquest Small Companies Fund and the Marquest Canadian Resource Fund have investments of $149,351, $107,633
and $181,940 (Dec 2015 - $0, $107,616 and $181,940) respectively in Level 3 securities. The fair value of the securities during the period was calculated using a key number of
valuation techniques and unobservable inputs which may include; financial analysis of the company’s financial statements, financial disclosures, non-listed transaction prices,
analysis of underlying commodity or sector prices and overall prevailing market and economic conditions.
The Manager estimates fair values for these securities using the best information available as of June 30, 2016 and December 31, 2015. The following tables outline the estimates
of fair values as well as ranges of these fair values using alternative assumptions that are reasonable in Management’s view. Impairment losses are reflected in the Funds’
Statements of Comprehensive Income in the “Net change in unrealized appreciation (depreciation) in value of investments”.
90
Fair Value of Fund Holdings Based On Alternative Assumptions
as at June 30, 2016
Fund
Fair Value as reported
Potential
-25%
+25%
$
107,633
$ 103,320
$ 111,947
$
181,940
$
$
-
-
Fair Value of Fund Holdings Based On Alternative Assumptions
as at December 31, 2015
Fund
Fair Value as reported
Potential
-25%
+25%
$
107,616
$
-
$ 451,696
$
181,940
$
78,279
$ 285,601
(b) Risk Management and Disclosures
The Funds’ investment activities expose them to a variety of financial risks. The Investment Portfolios present the securities held by the Funds as at December 31, 2015, and
groups the securities by asset type, geographic region and/or market segment. Significant risks that are relevant to the Funds are discussed below. The sensitivity analyses shown
in the notes below may differ from actual trading, and the differences could be material.
The Manager seeks to minimize potential adverse effects of these risks on the Funds’ performance by employing professional, experienced portfolio advisers, daily monitoring of
the Funds’ positions and market events; by diversifying the Investment Portfolios within the constraints of the investment objectives and periodically may use derivatives to hedge
certain risk exposure. To assist in managing risks, the Manager also uses internal guidelines that identify the target exposure for each type of risk, maintains a governance
structure that oversees the Funds’ investment activities and monitors compliance with the Funds’ stated investment strategies and securities regulations.
(i) Market Risk
Foreign exchange risk
Foreign exchange risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Funds invest in securities and other
investments that are denominated in currencies other than the Canadian Dollar and also holds foreign currency denominated cash and other net assets. Accordingly, the value of
the Funds’ assets may be affected favourably or unfavourably by fluctuations in currency rates and therefore the Funds will necessarily be subject to foreign exchange risks. The
primary purpose of the Funds’ foreign currency economic hedging activities is to protect against the volatility associated with investments and other assets and liabilities
denominated in foreign currencies in the normal course of business.
Certain Funds, in normal course of operations will invest in securities in a foreign currency. Consequently, some of the assets and revenues are exposed to foreign exchange
fluctuations.
The tables below indicate the foreign currencies to which the Funds have significant exposure as at June 30, 2016 and December 31, 2015 in Canadian dollar terms. The tables
also illustrate the potential impact to the Funds’ net asset value, as a result of a 5% change in these currencies relative to the Canadian dollar, the functional currency, with all
other variables held constant.
91
(b) Risk Management and Disclosures (continued)
(i) Market Risk (continued)
Foreign exchange risk (continued)
% of Net Assets
Potential Impact on Net Assets
attributable to holders
of redeemable shares
%
$
As of June 30, 2016
Fair Value
$
Currency
United States Dollars
4,422,281
4.3
221,114
13,904,623
72.1
695,231
5,852,659
86.7
292,633
(Corporate Class)
4,714,034
90.7
235,702
% of Net Assets
%
$
Fair Value
$
Currency
40,048,262
31.0
2,002,413
17,818,848
83.1
890,942
4,373,191
92.4
218,660
(Corporate Class)
4,610,209
91.9
230,510
Interest rate risk
Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair values of financial instruments.
Certain Funds invest in fixed income securities which bear interest at fixed rates of interest, and as such, are subject to interest rate price risk resulting from changes in fair value
from market fluctuations in interest rates.
The tables below summarize the Funds which have a significant exposure to interest rate price risk by remaining term to maturity as at June 30, 2016 and December 31, 2015.
The tables also illustrate the potential impact to the Funds’ net asset value, as a result of a 100 basis point % change in the interest rate, assuming a parallel shift in the yield curve
with all other variables held constant.
As of June 30, 2016
Less than 1 year
$
1-5 years
$
6-10 years
$
> 10 years
$
attributable to holders of
Total
redeemable shares
$
$
2,188,080
-
-
-
2,188,080
789,022
-
-
-
789,022
947
25,156
149,351
-
799,889
995,953
207,141
2,028,139
134,668
1,969,322
2,658,084
277,540
4,904,946
255,057
1,393,206
2,948,296
1,267,443
Less than 1 year
$
2,407
1-5 years
$
6-10 years
$
> 10 years
$
149,351
1,329
5,608,945
324,758
attributable to holders of
Total
redeemable shares
$
$
2,341,570
-
-
-
2,341,570
2,576
1,462,933
-
-
-
1,462,933
1,463
74,888
819,518
1,209,156
161,543
2,265,105
142,022
47,354
2,451,430
1,766,207
100,204
4,365,195
212,585
299,733
537,800
3,302,898
1,310,392
5,450,823
339,041
92
(i) Market Risk (continued)
Equity and other price risk
Other price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest
rate or foreign exchange risk). The investments of the Funds are subject to normal market fluctuations and the risks inherent in investment in financial markets. The maximum risk
resulting from financial instruments held by the Funds is equivalent to the fair value of the financial instruments. The Manager moderates this risk through a careful selection of
securities within specified limits and the Funds' market price risk is managed through diversification of the investment portfolio.
The most significant exposure to other price risk arises from its investments in equity securities and cash held as collateral. As of June 30, 2016 and December 31, 2015, had the
prices on the respective stock exchanges for these securities raised or lowered by 10%, with all other variables held constant, net assets attributable to holders of redeemable
shares would have increased or decreased respectively as follows:
As of June 30, 2016
% of Net Assets
in Equity Securities
$
%
$
83,273,213
439,273
12,960,940
5,667,797
4,687,350
5,038,776
11,487,848
1,274,666
2,731,269
3,044,336
80.8
88.8
67.2
84.0
90.2
92.0
92.5
67.0
73.3
61.6
Fair Value of Investments
in Equity Securities
$
%
$
Fair Value of Investments
% of Net Assets
109,150,611
592,625
15,482,024
4,373,911
4,639,091
2,148,824
11,582,662
1,744,024
1,422,861
2,439,729
8,327,321
43,927
1,296,094
566,780
468,735
503,878
1,148,785
127,467
273,127
304,434
84.4
92.9
72.2
92.4
92.5
96.8
92.3
89.2
52.1
56.4
10,915,061
59,263
1,548,202
437,391
463,909
214,882
1,158,266
174,402
142,286
243,973
(ii) Liquidity Risk
Liquidity risk is defined as the risk that the Funds will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another
financial asset.
The Funds may invest in securities, which are not actively traded on a stock exchange. The fair values of these securities may not be indicative of what the Funds could realize on
the immediate sale as it may take a significant amount of time to liquidate positions without causing a significant negative impact on the fair value. There can be no assurance that
an active trading market for these securities will exist at all times, or that the prices at which these securities trade accurately reflect their values. Additionally for net asset value
purposes, in accordance with securities regulation, the Funds must maintain at least 85% of their assets in liquid investments (i.e. investments that are traded in an active market
and can readily be disposed of).
In addition, the Funds have financial liabilities outstanding including accrued liabilities, bank indebtedness, payable for units/shares redeemed, payable for investment securities
purchased, payable to other corporate classes, distributions payable and redeemable shares/units. These financial liabilities are all current and due within 30 days. Redeemable
units/shares are redeemable on demand at the holder’s option. However, the Manager does not expect that all units will be redeemed immediately as holders of these instruments
typically retain them for a longer period.
Liquidity risk is managed by investing the majority of the Fund's assets in investments that are traded in an active market and can be readily disposed of. On a weekly basis,
quantitative monitoring measures are used to screen the Funds’ portfolio for securities that may be considered for potential reclassification as illiquid. In addition, the Fund aims to
retain sufficient cash to maintain liquidity. Accordingly, the Fund's liquidity risk is considered minimal.
93
(iii) Credit Risk
Funds that invest in fixed income securities are subject to credit risk. This means that the value of these securities depends, in part, upon the ability of borrowers to pay all
amounts owed to their lenders. Fixed income securities issued by borrowers with a high credit rating are considered to be less risky and therefore are generally worth more than
securities issued by borrowers with a low credit rating.
The Funds limit their exposure to credit loss by placing their cash and short-term investments with high credit quality institutions. To maximize the credit quality of its investments,
the Funds’ Manager performs ongoing credit evaluations based upon factors surrounding the credit risk of customers, historical trends and other information. The carrying
amounts of other assets (excluding refundable taxes receivable) also represent the maximum credit risk exposure as they will be settled in the short–term.
The maximum exposure to any one debt issuer as of June 30, 2016 was Province of Alberta representing 14.4% of the net assets of the Marquest Canadian Bond Fund, Province
of Quebec representing 9.8% of the net assets of the Marquest Canadian Fixed Income Fund, Government of Canada representing 19.5% of the net assets of the Marquest
Money Market Fund and Government of Canada representing 37.1% of the net assets of the Marquest Short Term Income Fund (Corporate Class).
The maximum exposure to any one debt issuer as of December 31, 2015 was Province of Quebec representing 12.5% of the net assets of the Marquest Canadian Bond Fund,
Province of Quebec representing 10.7% of the net assets of the Marquest Canadian Fixed Income Fund, Government of Canada representing 14.9% of the net assets of the
Marquest Money Market Fund and Government of Canada representing 32.8% of the net assets of the Marquest Short Term Income Fund (Corporate Class).
The Funds invest in debt instruments, which have an investment grade as rated primarily by DBRS and Standard & Poor’s.
Ratings for securities that subject the Funds to significant credit risk at June 30, 2016 and December 31, 2015 are noted below.
As of June 30, 2016
AAA
$
AA
A
$
$
BBB
$
BB
B
CCC
$
$
$
Unrated
$
Total
$
1,194,448
993,632
-
-
-
-
-
-
2,188,080
404,529
384,493
-
-
-
-
-
-
789,022
76,910
134,264
910,859
795,855
-
-
-
110,251
2,028,139
1,116,559
1,921,317
1,698,687
-
-
-
168,383
4,904,946
-
-
-
149,351
149,351
131,430
5,608,945
-
-
-
-
-
-
-
-
-
983,800
BB
B
CCC
$
$
$
AA
A
$
$
888,939
1,452,631
-
-
-
-
-
-
2,341,570
544,424
918,509
-
-
-
-
-
-
1,462,933
102,561
175,147
936,599
1,050,798
-
-
-
-
2,265,105
2,302,903
1,018,547
-
-
-
-
4,365,195
-
1,043,745
-
299,733
BBB
2,280,330
$
AAA
2,213,385
$
-
-
1,854,815
2,197,104
Unrated
$
962,821
Total
$
136,350
94
5,450,823
(iii) Credit Risk (continued)
All transactions in listed securities are settled for upon delivery using approved brokers. The risk of default is considered minimal, as delivery of securities sold is only made once
the broker has received payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail if either party fails to meet its
obligation.
The Funds may engage in securities lending transactions with counter parties, whereby the Funds temporarily exchange securities for collateral with a commitment by the
counterparty to deliver the same securities on a future date. Refer to note 7.
(iv) Concentration Risk
Portfolio concentration risk is the risk of loss in the total value of the portfolio investments of the Fund due to an over-concentration of investments in a particular instrument, sector
or country. A summary of the Portfolio’s concentration risk by industry sector as at June 30, 2016 and December 31, 2015, is shown in Fund’s Schedule of Investment Portfolio.
13. INTERESTS IN OTHER ENTITIES
Marquest Monthly Pay Fund – Corporate Class and Marquest Canadian Resource Fund – Corporate Class invest in other investment funds (“underlying funds”). Each underlying
fund invests in a portfolio of assets to generate returns in the form of investment income and capital appreciation for its unitholders. Each underlying fund finances its operations
primarily through the issuance of redeemable units, which are puttable at the unitholder’s option and entitle the unitholder to a proportionate share of the underlying fund’s net
asset. The Fund’s interest in the underlying funds, held in the form of redeemable units, are reported in its Schedule of Investments at fair value, which represent the Fund’s
maximum exposure on these investments.
As of June 30, 2016
Total Fair Value of Underlying
Fund Held in Investments
$
439,273
3,044,336
Total Fair Value of Underlying
Fund Held in Investments
$
592,625
2,439,729
Accrued Investment Income
due from Underlying fund
% of Funds Net Assets
$
%
-
88.8
61.6
Accrued Investment Income
due from Underlying fund
% of Funds Net Assets
$
%
-
92.9
56.4
Distributions earned from underlying funds are included in “Income distribution from underlying funds” in the Statements of Comprehensive Income. The total realized and change
in unrealized gains (losses) arising from the underlying funds in the Statements of Comprehensive Income for the period ended June 30, 2016 and year ended December 31, 2015
are listed in the table below.
As of June 30, 2016
Distributions
$
59,266
-
Realized Gains / (Losses)
$
$
155,524
-
$
67,542
364,198
Distributions
Change in Unrealized Gains /
Losses
Realized Gains / (Losses)
(13,066)
1,596,131
Change in Unrealized Gains /
Losses
$
$
(203,031)
(1,530,963)
(11,972)
814,855
The Funds does not provide any additional significant financial or other support to the underlying funds.
95
13. INTERESTS IN OTHER ENTITIES (continued)
% of net assets as
at June 30, 2016
Ownership % as at
June 30, 2016
% of net assets as
Ownership % as at
at December 31,
December 31, 2015
2015
Fund
Underlying Fund
Marquest Monthly Pay Fund (Corporate
Class)
Marquest Monthly Pay Fund F Class
88.8%
34.2%
92.9%
35.6%
(Corporate Class)
Marquest Canadian Resource Fund F Class
61.6%
99.8%
56.4%
100.6%
14. FUTURE ACCOUNTING PRONOUNCEMENTS
IFRS 9 Financial Instruments was issued in final form in July 2014 by the IASB and will replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 uses a single
approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple rules in IAS 39. The approach in IFRS 9 is based on how an
entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. Most of the requirements in IAS 39
for classification and measurement of financial liabilities were carried forward unchanged to IFRS 9. The new standard also requires a single impairment method to be used,
replacing the multiple impairment methods in IAS 39. IFRS 9 also includes requirements relating to a new hedge accounting model, which represents a substantial overhaul of
hedge accounting which will allow entities to better reflect their risk management activities in the financial statements. The most significant improvements apply to those that
hedge non-financial risk, and so these improvements are expected to be of particular interest to non-financial institutions. IFRS 9 is effective for annual periods beginning on or
after January 1, 2018. The Manager is currently assessing the impact on the financial statements of adopting IFRS.
96
TORONTO
161 Bay Street
Suite 4420, P.O. Box 204
Toronto, ON M5J 2S1
Phone 416.777.7350
Toll Free 1.877.777.1541
MONTREAL
1155 Robert-Bourassa Boulevard
Suite 905
Montreal, QC H3B 3A7
Phone 514.227.0666
Toll Free 1.866.687.9363
VANCOUVER
1055 West Hastings
Suite 300
Vancouver, BC V6E 2E9
Phone 604.895.7281
CLIENT SERVICES
Phone 416.365.4077
Toll free 1.888.964.3533
[email protected]
WWW.MARQUEST.CA

marquest group of funds - Marquest Asset Management Inc.

Transcription

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