marquest group of funds - Marquest Asset Management Inc.

Transcription

MARQUEST GROUP OF FUNDS
ANNUAL REPORT
Year ended December 31, 2014
ANNUAL REPORT 2014
TABLE OF CONTENTS
Management’s Responsibility for Financial Reporting
3
Auditor's Report
4
Marquest Core Funds:
Marquest Money Market Fund
Marquest Short Term Income Fund (Corporate Class)
6
11
Marquest Canadian Balanced Fund (Corporate Class)
16
Marquest Canadian Bond Fund
21
Marquest Monthly Pay Fund
26
Marquest Monthly Pay Fund (Corporate Class)
32
Marquest Global Balanced Fund (Formerly Marquest Tax Deferred Income Fund)
37
Marquest American Dividend Growth Fund
43
Marquest American Dividend Growth Fund (Corporate Class)
48
Marquest Small Companies Fund
53
Marquest Canadian Resource Fund
59
Marquest Canadian Resource Fund (Corporate Class)
65
Marquest Covered Call Canadian Banks Plus Fund
70
Marquest Covered Call Canadian Banks Plus Fund (Corporate Class)
75
Marquest Dow Jones Canada High Dividend 50 Fund (Corporate Class)
80
Marquest S&P/TSX Canadian Dividend Aristocrats Fund (Corporate Class)
86
Notes to the Financial Statements
92
Management’s Responsibility for Financial Reporting
The accompanying financial statements have been prepared by Marquest Funds Management Inc. the Manager of:
Marquest Global Balanced Fund [Formerly Marquest Tax Deferred Income Fund]
(Collectively the “Funds”)
and approved by the Trustee. The Manager is responsible for the information and representations contained in these
financial statements and other sections of the Annual Report.
The Manager maintains appropriate processes to ensure that relevant and reliable financial information is produced. The
financial statements have been prepared in accordance with International Financial Reporting Standards and include
certain amounts that are based on estimates and judgments. The significant accounting policies which management
believes are appropriate for the Funds are described in Note 2 to the financial statements. Collins Barrow LLP is the
external auditor of the Funds. They have audited the financial statements in accordance with Canadian generally accepted
auditing standards to enable them to express the unit holders their opinion on the financial statements. Their report is set
out on the following page.
"Gerry L. Brockelsby" (signed)
Gerry L. Brockelsby
Director
Marquest Asset Management Inc.
3
"Stephen J. Zamin" (signed)
Stephen J. Zamin
Director
Direct 416.777.7350 • Toll Free 1.877.777.1541 • Fax 416.777.7362 • Client Services 1.888.964.3533
161 Bay Street • Suite 4420 • P.O. Box 204 • Toronto, ON • M5J 2S1 • www.marquest.ca
Collins Barrow Toronto LLP
Collins Barrow Place
11 King Street West
Suite 700, Box 27
Toronto, Ontario
M5H 4C7 Canada
T. 416.480.0160
F. 416.480.2646
INDEPENDENT AUDITORS' REPORT
www.collinsbarrow.com
To the Unitholders or Shareholders of:
Marquest Global Balanced Fund (formerly Marquest Tax Deferred Income Fund)
Marquest S&P TSX Canadian Dividend Aristocrats Fund (Corporate Class)
(collectively the "Marquest Group of Funds" or "Funds")
We have audited the accompanying financial statements of the Funds, which comprise the statements of financial
position as at December 31, 2014, December 31, 2013 and January 1, 2013, the statements of comprehensive
income, changes in net assets attributable to holders of redeemable units/shares and cash flows for the years/period
ended December 31, 2014 and December 31, 2013, as applicable, and a summary of significant accounting policies
and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
International Financial Reporting Standards, and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our
audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for
our audit opinion.
This office is independently owned and operated by Collins Barrow Toronto LLP
The Collins Barrow trademarks are used under License.
4
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as at
December 31, 2014. December 31, 2013 and January 1, 2013 and the results of their financial performance, their
changes in net assets and their cash flows for the years/period ended December 31, 2014 and December 31, 2013,
as applicable, in accordance with International Financial Reporting Standards.
Licensed Public Accountants
Chartered Accountants
Toronto, Canada
March 31, 2015
5
Statement of financial position (Expressed in Canadian Dollars)
As at,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Assets
Investments
Cash
Interest receivable
$
3,099,611
19,238
6,598
3,125,447
$
4,341,951
29,818
16,450
4,388,219
$
$
$
266
347
613
$
$
318
87
405
$
377
102
479
$
3,124,834
$
4,387,814
$
6,381,503
$
3,124,834
$
4,387,814
$
6,381,503
$
10.00
$
10.00
$
10.00
$
$
$
6,221,701
144,179
16,102
6,381,982
Liabilities
Accrued liabilities
Distributions payable
Net assets attributable to holders of redeemable units
$
Class A
Net assets attributable to holders of redeemable units per unit
Class A
Approved on behalf of the Board of Directors of Marquest Asset Management Inc., the Manager of the Fund.
Gerry L. Brockelsby
Director
See accompanying notes
6
Stephen J. Zamin
Director
Statement of comprehensive income (Expressed in Canadian Dollars)
For the years ended December 31,
2014
2013
(Note 14)
Income
Interest for distribution purposes
Securities lending income (note 7)
Total Income
$
44,499
322
44,821
$
62,303
624
62,927
Expenses (note 4)
Management fees
Operating expenses
Audit fees
Custodian fees
Legal fees
Independent review committee fees
Unitholder reporting costs
Interest expense
12,280
149,981
23,378
27,846
21,809
1,657
4,415
241,366
(226,110)
15,256
Expenses absorbed by the Manager (note 4)
Total Expenses
Increase in net assets attributable to holders of redeemable units
17,879
176,374
13,182
13,382
35,138
4,428
6,618
108
267,109
(243,162)
23,947
$
29,565
$
38,980
$
29,565
$
38,980
$
0.08
$
0.07
Increase in net assets attributable to holders of redeemable units per class
Class A
Increase in net assets attributable to holders of redeemable units per unit
Class A
7
Statement of changes in net assets attributable to holders of redeemable units (Expressed in Canadian Dollars)
Class A
2014
Net assets attributable to holders of redeemable units, January 1
$
4,387,814
2013
$
6,381,503
29,565
38,980
(29,565)
(38,980)
2,915,019
26,732
(4,204,731)
(1,262,980)
2,951,740
38,150
(4,983,579)
(1,993,689)
Distributions to holders of redeemable units
From net investment income
Redeemable unit transactions
Proceeds from redeemable units issued
Reinvestment of distributions to holders of redeemable units
Redemption of redeemable units
Net redeemable unit transactions
Net assets attributable to holders of redeemable units, December 31
8
$
3,124,834
$
4,387,814
Statement of cash flow (Expressed in Canadian Dollars)
2014
2013
Cash flows from operating activities
Adjustments for:
Purchases of investments
Proceeds from sale and maturity of investments
Amortization of bonds
Interest receivable
Accrued liabilities
Net cash from operating activities
$
29,565
$
38,980
(11,794,393)
13,009,650
27,083
9,852
(52)
1,281,705
(17,256,414)
19,108,239
27,925
(348)
(59)
1,918,323
(2,573)
2,915,019
(4,204,731)
(1,292,285)
(845)
2,951,740
(4,983,579)
(2,032,684)
Cash flows used in financing activities
Distributions paid to holders of redeemable units, net of reinvested distributions
Proceeds from issuances of redeemable units
Amounts paid on redemption of redeemable units
Net cash used in financing activities
Net decrease in cash
Cash at beginning of period
Cash at end of period
9
$
(10,580)
29,818
19,238 $
(114,361)
144,179
29,818
Schedule of Investment Portfolio
As at December 31, 2014
Maturity
Par Value
200,000
350,000
300,000
400,000
200,000
300,000
400,000
FIXED INCOME AND SHORT TERM NOTES (99.2%)
Corporate Bonds (68.9%)
Bank of Montreal
Bank of Montreal
Daimler Canada Finance Inc.
Enbridge Inc.
Inter Pipeline Corridor Inc.
National Bank of Canada
The Toronto-Dominion Bank
23/03/2015
27/04/2015
26/01/2015
19/08/2015
14/01/2015
27/02/2015
10/02/2015
1.69% $
3.93%
1.28%
2.28%
1.23%
1.19%
1.20%
200,000
550,000
200,000
Canada Government Treasury Bills (30.3%)
Government of Canada
15/01/2015
29/01/2015
26/02/2015
0.97%
0.84%
0.88%
200,144 $
352,804
299,484
401,888
199,818
299,142
398,936
2,152,216
Fair
Value
200,144
352,804
299,484
401,888
199,818
299,142
398,936
2,152,216
199,112
548,621
199,662
947,395
199,112
548,621
199,662
947,395
TOTAL FIXED INCOME AND SHORT TERM NOTES
3,099,611
3,099,611
Total cost and fair value of investments
Other assets (net) (0.8%)
Total net assets
3,099,611
25,223
3,124,834 $
3,099,611
25,223
3,124,834
See accompanying notes.
10
Average
Cost
Yield
$
As at,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Assets
Investments
Cash
Interest receivable
$
1,598,674
62,709
3,608
1,664,991
$
1,454,732
45,042
5,578
1,505,352
$
$
$
123
186,095
186,218
$
$
101
186,095
186,196
$
110
186,095
186,205
$
1,478,773
$
1,319,156
$
1,703,779
$
1,478,773
$
1,319,156
$
1,703,779
$
11.52
$
11.43
$
11.33
$
$
$
1,867,804
15,727
6,453
1,889,984
Liabilities
Accrued liabilities
Payable to other corporate class (note 4)
Net assets attributable to holders of redeemable shares
$
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., the Manager of the Fund.
Gerry L. Brockelsby
Director
11
Stephen J. Zamin
Director
2014
2013
(Note 14)
Income
Interest
Total Income
$
18,239
54
18,293
$
18,144
18,144
Expenses (note 4)
Management fees
Operating expenses
Audit fees
Custodian fees
Legal fees
Shareholder reporting costs
Interest expense
4,657
874
3,978
23,038
17,680
1,657
25
51,909
(45,698)
6,211
Total Expenses
Increase in net assets attributable to holders of redeemable shares
4,696
5,304
11,824
11,492
35,138
4,428
32
12
72,926
(66,653)
6,273
$
12,082
$
11,871
$
12,082
$
11,871
$
0.09
$
0.09
Increase in net assets attributable to holders of redeemable shares per series
Series A
Increase in net assets attributable to holders of redeemable shares per share
Series A
12
Statement of changes in net assets attributable to holders of redeemable shares (Expressed in Canadian Dollars
Series A
2014
Net assets attributable to holders of redeemable shares, January 1
$
1,319,156
2013
$
1,703,779
12,082
11,871
863,874
(716,339)
147,535
105,869
(502,363)
(396,494)
Redeemable share transactions
Proceeds from redeemable shares issued
Redemption of redeemable shares
Net redeemable share transactions
Net assets attributable to holders of redeemable shares, December 31
13
$
1,478,773
$
1,319,156
2014
2013
Adjustments for:
Amortization of bonds
Interest receivable
Accrued liabilities
Net cash from (used in) operating activities
$
12,082
$
11,871
(5,319,764)
5,164,984
10,838
1,970
22
(129,868)
(5,133,243)
5,536,633
9,682
875
(9)
425,809
863,874
(716,339)
147,535
105,869
(502,363)
(396,494)
17,667
45,042
62,709
29,315
15,727
45,042
Proceeds from issuances of redeemable shares
Amounts paid on redemption of redeemable shares
Net cash used (from) in financing activities
Net increase in cash
14
$
$
Maturity
Par Value
100,000
150,000
100,000
150,000
150,000
100,000
150,000
200,000
FIXED INCOME AND SHORT TERM NOTES (108.1%)
Bank of Montreal
Bank of Montreal
Enbridge Inc.
3/23/2015
4/27/2015
1/15/2015
1/26/2015
8/19/2015
1/27/2015
2/27/2015
2/10/2015
1.67%
3.93%
1.25%
1.28%
2.27%
1.18%
1.19%
1.20%
200,000
200,000
100,000
Canada Government Treasury Bills (33.7%)
1/15/2015
1/29/2015
2/26/2015
0.96%
0.87% $
0.87%
100,072
151,202
99,734
149,675
150,708
99,716
149,570
199,468
1,100,145
198,958
199,752 $
99,819
498,529
Fair
Value
100,072
151,202
99,734
149,675
150,708
99,716
149,570
199,468
1,100,145
198,958
199,752
99,819
498,529
TOTAL FIXED INCOME AND SHORT TERM NOTES
1,598,674
1,598,674
Other assets (net) (-8.1%)
Total net assets
1,598,674
(119,901)
1,478,773 $
1,598,674
(119,901)
1,478,773
15
Average
Cost
Yield
$
As at,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Asset
Investments
Cash
Receivable for investment securities sold
$
1,818,904
50,553
85,000
1,954,457
$
$
$
455
59,516
87,596
228,585
376,152
$
$
$
$
$
2,795,608
52,768
2,848,376
$
$
$
571
59,516
800
2,612
63,499
$
520
59,516
1,060
3,009
64,105
1,578,305
$
2,784,877
$
3,319,944
1,424,423
153,882
$
$
$
2,331,663
63,534
389,680
$
$
$
2,451,621
389,687
478,636
13.46
6.60
$
$
$
15.03
15.28
7.95
$
$
$
14.14
14.22
8.13
$
$
3,355,608
28,441
3,384,049
Liabilities
Accrued liabilities
Payable for redeemable shares redeemed
$
Series A
Series F
Series T8
Series A
Series F
Series T8
$
$
$
Gerry L. Brockelsby
Director
16
Stephen J. Zamin
Director
2014
2013
(Note 14)
Income
Distribution from investment trusts
Net realized gain (loss) on sale of investments, including foreign
exchange gain (loss)
Net change in unrealized appreciation in value of investments
Total Income
$
27
15,942
$
557
49,242
11,491
70,863
98,323
(172,437)
383,195
260,557
26,961
201
61,598
13,778
24,425
19,349
1,657
1,800
149,769
(119,993)
29,776
33,711
95
14,064
4,680
12,135
35,138
4,428
185
104,436
(26,039)
78,397
Expenses (note 4)
Management fees
Interest expense
Operating expenses
Audit fees
Custodian fees
Legal fees
Total Expenses
$
68,547
$
182,160
$
$
$
55,975
5,875
6,697
$
$
$
146,550
9,866
25,744
$
$
$
0.43
1.42
0.17
$
$
$
0.85
0.92
0.50
Series A
Series F
Series T8
Series A
Series F
Series T8
17
Statement of changes in net assets attributable to holders of redeemable shares (Expressed in Canadian Dollars)
Series A
2014
$ 2,331,663
55,975
$
Series F
2013
2,451,621
2014
$
63,534
2013
$
389,687
146,550
5,875
9,866
-
-
-
Distibutions to holders of redeemable shares
From net realized gain on sale of investments
Return of capital
Total distributions to holders of redeemable shares
(19,587)
(10,021)
(177,006)
(206,614)
Reinvestment of distributions to holders of redeemable shares
131,245
(887,846)
(756,601)
$ 1,424,423
603,019
(869,527)
(266,508)
$
2,331,663
(69,409)
(69,409)
$
-
$
389,680
2013
$
$
63,534
Total
Series T8 (note 1)
2014
(336,019)
(336,019)
2014
2013
478,636
$ 2,784,877
$ 3,319,944
6,697
25,744
68,547
182,160
(4,439)
(1,462)
(40,095)
(45,996)
(3,553)
(30,350)
(33,903)
(24,026)
(11,483)
(217,101)
(252,610)
(3,553)
(30,350)
(33,903)
1,581
(198,080)
(196,499)
15,732
2,515
(99,044)
(80,797)
131,245
1,581
(1,155,335)
(1,022,509)
618,751
2,515
(1,304,590)
(683,324)
Distributions to holders of redeemable shares
Return of capital
18
$
153,882
$
389,680
$ 1,578,305
$ 2,784,877
2014
2013
Increase (decrease) in net assets attributable to holders of redeemable shares
Adjustments for:
Return of capital on investment
Accrued liabilities
$
68,547
$
182,160
(11,491)
(70,863)
(276,122)
990,000
260,180
(116)
960,135
172,437
(383,195)
(638,665)
1,120,000
289,423
51
742,211
(25,056)
131,245
(1,068,539)
(962,350)
(31,785)
618,751
(1,304,850)
(717,884)
Distributions paid to holders of redeemable shares, net of reinvested distributions
Net increase (decrease) in cash
19
(2,215)
52,768
50,553
24,327
28,441
52,768
Average
Cost
Number of Units
145,066
198,831
MUTUAL FUND TRUSTS (115.2%)
Marquest Canadian Bond Fund, Class F
Marquest Monthly Pay Fund, Class F
TOTAL MUTUAL FUND TRUSTS
Total net assets
20
$
$
Fair
Value
726,773 $
1,151,426
1,878,199
725,332
1,093,572
1,818,904
1,878,199
(240,599)
1,637,600 $
1,818,904
(240,599)
1,578,305
As at,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Assets
Investments
Cash
Interest receivable
Receivable for redeemable units issued
$
4,015,930
38,374
28,497
4,082,801
$
$
$
1,177
4,546
3
5,726
$
$
$
6,481,487 $
111,174
56,991
6,649,652 $
9,734,707
83,915
92,533
2,100
9,913,255
Liabilities
Accrued liabilities
Payable for redeemable units redeemed
$
$
$
1,697
23,312
25,009
$
2,138
1,280
3,418
4,077,075
$
6,624,643
$
9,909,837
$
$
3,342,526
734,549
$
$
5,758,950
865,693
$
$
8,692,517
1,217,320
$
$
4.66
5.00
$
$
4.59
4.88
$
$
4.96
5.22
Class A
Class F
Class A
Class F
Gerry L. Brockelsby
Director
21
Stephen J. Zamin
Director
2014
2013
(Note 14)
Income
Net change in unrealized appreciation (depreciation) in value of investments
Total Income
$
206,686
140
$
340,705
-
34,240
223,222
464,288
(115,279)
(315,099)
(89,673)
54,712
72
65,443
16,568
27,743
19,455
1,657
1,912
187,562
(102,930)
84,632
82,296
13
105,904
16,834
13,165
35,138
4,428
3,320
261,098
(133,762)
127,336
Expenses (note 4)
Management fees
Interest expense
Operating expenses
Audit fees
Custodian fees
Legal fees
Total Expenses
Increase (decrease) in net assets attributable to holders of redeemable units
$
379,656
$
(217,009)
$
$
325,990
53,666
$
$
(192,173)
(24,836)
$
$
0.32
0.37
$
$
(0.13)
(0.11)
Increase (decrease) in net assets attributable to holders of redeemable units per class
Class A
Class F
Increase (decrease) in net assets attributable to holders of redeemable units per unit
Class A
Class F
22
Class F
Class A
2014
$ 5,758,950
2013
$ 8,692,517
2014
$
865,693
2013
$ 1,217,320
325,990
(192,173)
53,666
(24,836)
(104,443)
(25,904)
(110,940)
(241,287)
(188,517)
(161,155)
(349,672)
(22,952)
(5,692)
(6,254)
(34,898)
(28,169)
(26,028)
(54,197)
216,068
125,592
(2,842,787)
(2,501,127)
566,476
190,632
(3,148,830)
(2,391,722)
9,200
34,898
(194,010)
(149,912)
117,607
51,734
(441,935)
(272,594)
Return of capital
Total distributions to holders of redeemable units
$ 3,342,526
$ 5,758,950
$
734,549
$
865,693
Total
2014
$ 6,624,643
2013
$ 9,909,837
379,656
(217,009)
(127,395)
(31,596)
(117,194)
(276,185)
(216,686)
(187,183)
(403,869)
225,268
160,490
(3,036,797)
(2,651,039)
684,083
242,366
(3,590,765)
(2,664,316)
Return of capital
23
$ 4,077,075
$ 6,624,643
2014
2013
Adjustments for:
Interest receivable
Accrued liabilities
$
379,656
$
(217,009)
(34,240)
(223,222)
(7,038,692)
9,761,711
28,494
(520)
2,873,187
115,279
315,099
(4,024,602)
6,847,444
35,542
(441)
3,071,312
(115,692)
225,268
(3,055,563)
(2,945,987)
(161,503)
686,183
(3,568,733)
(3,044,053)
24
$
(72,800)
111,174
38,374 $
27,259
83,915
111,174
Maturity
Par Value
160,000
150,000
200,000
213,000
140,000
151,000
200,000
140,000
100,000
200,000
156,000
154,000
200,000
150,000
FIXED INCOME (98.5%)
Bell Canada
Canadian Western Bank
Enbridge Income Fund
FortisBC Inc.
Glacier Credit Card Trust
Loblaw Companies Ltd.
Manufacturers Life Insurance Co.
OMERS Realty Corp.
Royal Bank of Canada
Saputo Inc.
Sun Life Financial Inc.
TELUS Corp.
Thomson Reuters Corp.
TransCanada PipeLines Ltd.
225,000
75,000
350,000
560,000
185,000
36,000
Provincial Bonds (37.4%)
Financement-Quebec
Province of Nova Scotia
Province of Ontario
Province of Ontario
Province of Ontario
Province of Quebec
100,000
Municipal Bonds (2.5%)
Municipal Finance Authority of British Columbia
25
Fair
Value
4.40% $
3.05%
3.95%
4.00%
2.57%
3.75%
2.64%
3.36%
2.77%
2.65%
4.38%
3.20%
3.31%
5.10%
171,976 $
153,945
200,000
212,853
140,000
159,003
199,994
145,628
99,958
200,000
164,830
156,917
200,000
160,860
2,365,964
171,235
153,356
204,930
220,287
142,056
159,500
201,481
145,873
102,653
202,372
163,994
157,990
203,093
159,944
2,388,764
12/1/2019
6/1/2042
3/8/2018
9/8/2019
6/2/2021
6/1/2032
2.45%
4.40%
4.20%
2.10%
4.00%
6.25%
228,150
87,161
379,330
562,706
205,572
49,925
1,512,844
231,547
89,353
379,664
568,728
205,830
50,631
1,525,753
6/2/2019
2.05%
100,506
101,413
TOTAL FIXED INCOME
3,979,314
4,015,930
Total net assets
3,979,314
61,145
4,040,459 $
4,015,930
61,145
4,077,075
3/16/2018
1/18/2017
11/19/2024
10/28/2044
9/20/2019
3/12/2019
1/15/2025
6/5/2023
12/11/2018
11/26/2019
3/2/2022
4/5/2021
11/12/2021
1/11/2017
Average
Cost
Coupon
$
As at,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Assets
Investments
Cash
Income receivable
Prepaid fees
$
197,430,359
3,443,413
222,908
554,089
41,713
201,692,482
$
206,909,102
4,279,411
67,120
937,446
39,141
212,232,220
$
$
$
125,223
310,641
1,594
437,458
$
$
105,793
313,639
419,432
$
92,825
286,494
379,319
$
201,255,024
$
211,812,788
$
207,196,438
$
$
$
$
189,239,609
7,140,245
4,693,534
181,636
$
$
$
$
$
197,360,705
5,492,347
7,520,646
69,249
1,369,841
$
$
$
$
$
196,814,504
9,769,651
612,283
$
$
$
$
$
4.61
15.60
5.50
15.74
-
$
$
$
$
$
5.43
16.21
6.24
16.15
10.60
$
$
$
$
$
5.63
6.25
10.05
$
$
$
202,715,786
3,688,823
134,267
1,036,881
207,575,757
Liabilities
Accrued liabilities
$
Class A
Class AA*
Class F
Class F-AA
Class T8*
Class A
Class AA*
Class F
Class F-AA*
Class T8*
Gerry L. Brockelsby
Director
* See note 1 for the commencement date of each class
26
Stephen J. Zamin
Director
2014
2013
(Note 14)
Income
Dividends
Distribution from income trusts
Other income
Net realized (loss) gain on sale of investments, including foreign
exchange (loss) gain
Total Income
$
7,337,044
18,920
673,806
82,209
10,409
$
(5,349,983)
6,116,525
8,888,930
8,565,045
42,617
236,594
79,494
374,950
7,474,892
17,185,199
33,958,791
Expenses (note 4)
Management fees
Withholding taxes
Transaction costs (note 6)
Interest expense
Operating expenses
Audit fees
Custodian fees
Legal fees
4,592,685
10,334
278,819
53
1,898,752
227,066
53,596
69,604
1,657
55,222
7,187,788
7,187,788
Total Expenses
4,389,741
14,457
210,918
2,381,959
20,486
23,505
35,138
4,428
71,835
7,152,467
(288,155)
6,864,312
$
1,701,142
$
27,094,479
$
$
$
$
$
1,410,510
4,407
143,144
6,007
137,074
$
$
$
$
$
25,525,700
260,585
1,149,138
3,399
155,657
$
$
$
$
$
0.04
0.01
0.13
0.55
1.07
$
$
$
$
$
0.71
1.83
0.83
1.78
1.37
Class A
Class AA
Class F
Class F-AA
Class T8*
Class A
Class AA
Class F
Class F-AA
Class T8*
27
Class AA*
Class A
2014
$
197,360,705
2013
$
196,814,504
2014
$
5,492,347
2013
$
-
1,410,510
25,525,700
4,407
260,585
(34,596,666)
(34,596,666)
(1,198,000)
(1,196,424)
(29,687,686)
(32,082,110)
(329,924)
(329,924)
(56,745)
(13,035)
(69,780)
55,086,613
15,598,938
(45,620,491)
25,065,060
43,598,661
17,064,188
(53,560,238)
7,102,611
5,045,856
245,301
(3,317,742)
1,973,415
5,496,842
62,709
(258,009)
5,301,542
Return of capital
$
189,239,609
$
197,360,705
$
7,140,245
Class F
2014
$
7,520,646
2013
$
9,769,651
2014
$
69,249
143,144
1,149,138
6,007
(977,222)
(977,222)
(102,794)
(802)
(1,121,233)
(1,224,829)
(10,255)
(10,255)
888,378
677,194
(3,558,606)
(1,993,034)
2,270,174
913,747
(5,357,235)
(2,173,314)
220,637
10,255
(114,257)
116,635
$
5,492,347
Class F-AA*
2013
$
3,399
Return of capital
(841)
(11)
(852)
$
4,693,534
$
7,520,646
$
181,636
$
1,369,841
2013
$
$
69,249
Total
Class T8*
2014
65,850
852
66,702
2014
2013
612,283
$ 211,812,788
$ 207,196,438
137,074
155,657
1,701,142
27,094,479
(69,811)
(69,811)
(445)
(92,109)
(92,554)
(35,983,878)
(35,983,878)
(1,358,825)
(1,197,226)
(30,914,074)
(33,470,125)
111,275
21,507
(1,569,886)
(1,437,104)
832,110
13,498
(151,153)
694,455
61,352,759
16,553,195
(54,180,982)
23,724,972
52,263,637
18,054,994
(59,326,635)
10,991,996
Return of capital
28
$
-
$
1,369,841
$ 201,255,024
$ 211,812,788
2014
2013
Adjustments for:
Net realized (loss) gain on sale of investments, including foreign
exchange (loss) gain
Income receivable
Prepaid fees
Accrued liabilities
Return of capital on investments
$
1,701,142
$
27,094,479
5,349,983
(6,116,525)
(98,715,364)
108,997,779
386,051
(2,572)
19,430
11,619,924
(7,474,892)
(17,185,199)
(58,407,817)
78,536,658
99,435
(39,141)
12,968
354,145
22,990,636
(19,429,089)
61,196,971
(54,183,980)
(12,416,098)
(15,415,131)
52,330,784
(59,299,490)
(22,383,837)
Foreign exchange loss (gain) on cash
29
$
(39,824)
(835,998)
4,279,411
3,443,413 $
(16,211)
590,588
3,688,823
4,279,411
Number of
Shares, Units
or Par Value
1,000,000
100,000
100,000
Maturity
SHORT TERM NOTES (0.5%)
TOTAL SHORT TERM NOTES
CANADIAN INCOME TRUSTS (4.2%)
Real Estate Income Trust (4.2%)
Brookfield Asset Management Inc.
RioCan Real Estate Investment Trust
TOTAL CANADIAN INCOME TRUSTS
184,700
100,000
170,000
200,000
80,000
155,315
216,200
CANADIAN EQUITIES (89.0%)
Financials (26.5%)
Bank of Nova Scotia
Davis & Henderson Income Corp.
Great-West Lifeco Inc.
Manulife Financial Corp.
Power Financial Corp.
75,000
220,000
150,000
100,000
12,000
107,000
100,000
180,000
125,000
100,000
Industrial (17.5%)
AG Growth International Inc.
Bird Construction Inc.
Black Diamond Group Limited
Canadian National Railway Co.
Canadian Pacific Railway Ltd.
Russel Metals Inc.
Stantec Inc.
Transcontinental Inc.
TransForce Inc.
Westshore Terminals Investment Corp.
115,875
225,000
62,000
80,000
85,000
125,000
100,000
70,025
200,000
150,000
40,000
Energy (16.8%)
Arc Resources Ltd.
Cameco Corp.
Canadian Natural Resources Ltd.
Crescent Point Energy Corp.
Enbridge Inc.
Inter Pipeline Ltd.
Pembina Pipeline Corp.
Suncor Energy Inc.
Surge Energy Inc.
Veresen Inc.
Vermilion Energy Inc.
35,000
125,000
30,000
450
116,650
80,000
Consumer Discretionary (9.9%)
AutoCanada Inc.
Cineplex Inc.
Magna International Inc.
Restaurant Brands International LP
Restaurant Brands International Inc.
*Average cost includes transaction costs.
30
1/12/2015
Yield
1.18% $
Average
Fair
Cost*
Value
998,190
998,190
$
998,190
998,190
4,909,342
2,400,185
7,309,527
5,822,000
2,643,000
8,465,000
9,906,713
1,776,579
4,072,691
4,544,195
2,191,792
9,067,430
7,841,482
39,400,882
12,247,457
3,667,000
5,710,300
4,436,000
2,894,400
12,462,476
12,001,262
53,418,895
2,626,934
2,260,551
3,619,091
4,209,951
2,650,287
2,164,397
1,524,716
2,556,150
1,823,157
2,383,211
25,818,445
4,238,250
2,624,600
1,911,000
8,002,000
2,685,000
2,771,300
3,193,000
2,980,800
3,698,750
3,163,000
35,267,700
2,662,369
4,725,606
2,996,351
3,018,310
3,629,141
3,028,750
3,080,752
2,372,086
1,088,143
1,668,620
1,586,120
29,856,248
2,915,415
4,286,250
2,227,040
2,152,800
5,077,900
4,492,500
4,234,000
2,583,923
736,000
2,754,000
2,280,000
33,739,828
2,644,316
3,104,139
3,471,623
18,563
4,889,796
2,632,759
16,761,196
1,557,500
5,603,750
3,776,700
19,728
5,307,575
3,749,600
20,014,853
Schedule of Investment Portfolio (continued)
Number of
Shares, Units
or Par Value
100,000
597,500
112,000
90,000
26,800
60,000
200,000
75,000
CANADIAN EQUITIES (CONT.) (89.0%)
Materials (9.8%)
Alamos Gold Inc.
Canexus Corporation
First Quantum Minerals Ltd.
Goldcorp Inc.
LyondellBasell Industries NV
Potash Corp of Saskatchewan Inc.
Teck Resources Ltd.
West Fraser Timber Co., Ltd.
500,000
75,000
Utilities (4.0%)
Algonquin Power & Utilities Corp.
AltaGas Ltd.
180,000
30,000
76,000
Value
1,044,900
3,709,047
2,606,548
2,562,957
3,006,413
2,323,554
3,589,320
3,809,865
22,652,604
$
830,000
1,947,850
1,849,120
1,935,900
2,464,357
2,464,200
3,176,000
4,985,250
19,652,677
4,820,000
3,250,500
8,070,500
Consumer Staples(3.1%)
Saputo Inc.
5,390,069
6,285,600
Information Technology (1.4%)
MacDonald Dettwiler & Associates Ltd.
1,337,381
2,848,500
145,595,967
179,298,553
FOREIGN EQUITIES (4.4%)
PulteGroup Inc.
4,795,010
4,971,216
Utilities (1.9%)
Brookfield Infrastructure Partners LP
3,291,436
3,697,400
TOTAL FOREIGN EQUITIES
8,086,446
8,668,616
Total investments
Total net assets
31
Fair
Cost*
2,847,648
1,531,494
4,379,142
TOTAL CANADIAN EQUITIES
200,000
$
Average
161,990,130
197,430,359
(226,943)
161,763,187
197,430,359
3,824,665
3,824,665
$ 165,587,852 $ 201,255,024
Statements of financial position (Expressed in Canadian Dollars)
As at,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Assets
Investments
Cash
Receivable for redeemable shares issued
$
1,603,422
99,335
7,672
1,710,429
$
2,500,738
100,828
2,601,566
$
$
$
616
7,052
87,470
95,138
$
$
775
8,975
9,750
$
781
10,943
10,656
22,380
$
1,615,291
$
2,591,816
$
4,377,499
$
$
$
$
1,589,235
26,056
-
$
$
$
$
1,032,384
59,652
1,486,083
13,697
$
$
$
$
1,031,042
1,494,691
1,486,350
365,416
$
$
$
$
10.01
10.41
-
$
$
$
$
11.29
11.61
10.03
10.42
$
$
$
$
10.16
10.32
9.80
9.93
$
$
$
4,398,804
1,075
4,399,879
Liabilities
Accrued liabilities
Bank indebtedness
$
Series A
Series F
Series T8
Series T-F8
Series A
Series F
Series T8
Series T-F8
Gerry L. Brockelsby
Director
32
Stephen J. Zamin
Director
Statements of comprehensive income (Expressed in Canadian Dollars)
2014
2013
(Note 14)
Income
Net realized loss on sale of investments, including foreign
exchange loss
Total Income
$
-
$
942
38,889
(97,534)
149,639
52,105
(685,722)
1,063,289
417,398
31,813
12,495
10,534
39,472
17,999
1,657
365
114,335
(69,523)
44,812
35,158
22,594
4,680
18,753
35,138
4,428
500
405
121,656
(26,347)
95,309
Expenses (note 4)
Management fees
Operating expenses
Audit fees
Custodian fees
Legal fees
Interest expense
Total Expenses
$
7,293
$
322,089
Increase (decrease) in net assets attributable to holders of redeemable shares per series
Series A
Series F
Series T8
Series T-F8
$
$
$
$
(121,135)
1,233
126,230
965
$
$
$
$
108,207
52,416
154,818
6,648
$
$
$
$
(1.00)
0.32
0.92
0.95
$
$
$
$
0.97
1.26
1.04
0.26
Increase (decrease) in net assets attributable to holders of redeemable shares per share
Series A
Series F
Series T8
Series T-F8
33
Statements of changes in net assets attributable to holders of redeemable shares (Expressed in Canadian Dollars)
Series F
Series A
2014
$ 1,032,384
2013
$ 1,031,042
(121,135)
108,207
(216,481)
(216,481)
-
2014
$
2013
59,652
$ 1,494,691
1,233
52,416
Distibutions to holders of redeemable shares
Return of capital
(3,722)
(3,722)
-
1,589,056
89,577
(784,166)
894,467
$ 1,589,235
2014
470,531
(577,396)
(106,865)
$ 1,032,384
10,139
(41,246)
(31,107)
$
Series T8
2013
26,056
2014
28,294
(1,515,749)
(1,487,455)
$
59,652
Series T-F8
2013
$ 1,486,083
$ 1,486,350
126,230
154,818
965
6,648
(74,435)
(74,435)
(119,841)
(119,841)
(523)
(523)
(19,720)
(19,720)
9,061
7,415
(1,554,354)
(1,537,878)
114,729
15,109
(165,082)
(35,244)
(14,139)
(14,139)
557,318
752
(896,717)
(338,647)
$
13,697
$
365,416
Return of capital
$
-
$ 1,486,083
$
-
$
13,697
Total
2014
2013
$ 2,591,816
$ 4,377,499
7,293
322,089
Return of capital
(295,161)
(295,161)
(139,561)
(139,561)
1,608,256
96,992
(2,393,905)
(688,657)
1,170,872
15,861
(3,154,944)
(1,968,211)
34
$ 1,615,291
$ 2,591,816
Statements of cash flow (Expressed in Canadian Dollars)
2014
2013
Adjustments for:
exchange loss
Accrued liabilities
$
7,293
$
322,089
97,534
(149,639)
(566,890)
1,168,506
340,133
(159)
896,778
685,722
(1,063,289)
(1,557,543)
3,410,403
422,773
(6)
2,220,149
(119,674)
1,608,256
(2,386,853)
(898,271)
(125,668)
1,171,947
(3,154,944)
(2,108,665)
Cash (bank indebtness) at beginning of period
35
$
(1,493)
100,828
99,335 $
111,484
(10,656)
100,828
Average
Cost
Number of Units
291,531
Marquest Monthly Pay Fund, Class F
Total net assets
36
$
$
Fair
Value
1,827,593 $
1,827,593
1,603,422
1,603,422
1,827,593
11,869
1,839,462 $
1,603,422
11,869
1,615,291
Marquest Global Balanced Fund
(Formerly Marquest Tax Deferred Income Fund)
As at,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Assets
Investments
Cash
Futures contract
Income receivable
Dividends receivable
Forward agreement
$
15,526,071
257,170
51,594
58,222
24,574
25,000
1,180,459
17,123,090
$
10,416,184
9,754
10,938
33,660
2,926,279
13,396,815
$
$
$
10,862
1,394,950
1,405,812
$
$
15,004
7,074
22,078
$
12,606
145
281,580
294,331
$
15,717,278
$
13,374,737
$
11,206,556
$
$
$
13,911,745
1,805,533
-
$
$
$
11,724,350
1,489,377
161,010
$
$
$
9,789,731
1,287,456
129,369
$
$
$
17.45
19.53
-
$
$
$
17.41
19.16
11.20
$
$
$
15.45
16.72
10.02
$
$
$
9,153,261
509,341
13,736
31,816
9,790
1,782,943
11,500,887
Liabilities
Accrued liabilities
Payable for investment securities purchased
$
Class A
Class F
Class T8
Class A
Class F
Class T8
Gerry L. Brockelsby
Director
37
Stephen J. Zamin
Director
2014
2013
(Note 14)
Income
Dividends
Other income
Income (loss) from derivatives
Net realized gain on sale of investments, including foreign
exchange gain
Net change in unrealized (depreciation) appreciation in value of investments
Change in unrealized (depreciation) appreciation of forward agreement
Change in unrealized depreciation in value of futures contract
Total Income
$
165,782
97,565
373
67
4,908,943
$
89,348
47,377
151
(26,419)
228,943
(1,066,783)
(2,926,279)
(99)
1,408,512
1,172,610
546,525
1,143,336
(2,452)
2,970,476
315,372
20,182
7,633
296
99,257
22,151
40,919
20,384
55,905
1,657
2,900
586,656
(28,824)
557,832
286,570
14,644
618
907
98,849
20,486
18,394
35,138
93,698
4,428
2,383
576,115
(14,498)
561,617
Expenses (note 4)
Management fees
Withholding taxes
Transaction costs
Interest expense
Operating expenses
Audit fees
Custodian fees
Legal fees
Forward agreement fees
Expenses absorbed by the Manager (Note 4)
Total expenses
$
850,680
$
2,408,859
$
$
$
721,866
117,630
11,184
$
$
$
2,108,152
272,603
28,104
$
$
$
1.01
1.46
0.79
$
$
$
2.97
3.53
1.97
Class A
Class F
Class T8
Class A
Class F
Class T8
38
Class A
2014
$ 11,724,350
721,866
Class F
2013
$
9,789,731
2014
$
2,108,152
1,489,377
2013
$
1,287,456
117,630
272,603
Return of capital
(775,495)
(775,495)
(768,749)
(768,749)
(87,261)
(87,261)
(83,392)
(83,392)
5,441,047
255,364
(3,455,387)
2,241,024
2,624,936
238,027
(2,267,747)
595,216
338,890
35,339
(88,442)
285,787
4,000
25,327
(16,617)
12,710
$ 13,911,745
$ 11,724,350
$
1,805,533
$
161,010
2013
$
11,184
1,489,377
Total
Class T8*
2014
$
129,369
28,104
2014
$ 13,374,737
$
850,680
2013
$ 11,206,556
2,408,859
Return of capital
(7,626)
(7,626)
- $
(11,463) $
(11,463) $
(870,382)
(870,382)
(863,604)
(863,604)
5,779,937
292,293
(3,709,987)
2,362,243
2,643,936
263,354
(2,284,364)
622,926
39
1,590
(166,158)
(164,568)
$
-
15,000
15,000
$
161,010
$
$
$
$
$ 15,717,278
$ 13,374,737
2014
2013
Adjustments for:
exchange gain
Change in unrealized (depreciation) appreciation of forward agreement
Margin deposits receivable on futures contract
Interest receivable
Dividend receivable
Accrued liabilities
Net cash used in operating activities
$
850,680
$
2,408,859
(228,943)
1,066,783
2,926,279
(21,191,828)
14,140,786
(40,656)
(24,562)
(24,574)
(4,142)
(2,530,177)
(1,172,610)
(546,525)
(1,143,336)
(3,689,634)
3,863,526
2,798
(1,844)
2,398
(276,368)
(578,089)
5,754,937
(2,322,111)
2,854,737
(600,250)
2,653,726
(2,277,435)
(223,959)
Net cash from (used in) financing activities
Foreign exchange loss(gain) on cash
40
$
(77,144)
247,416
9,754
257,170 $
740
(499,587)
509,341
9,754
Number of
Shares, Units or
Par Value
Maturity
150,000
150,000
100,000
200,000
173,000
150,000
250,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
150,000
FIXED INCOME (23.4%)
International Bond (17.8%)
Berry Plastics Corp.
Calfrac Holdings LP
Crown Cork & Seal Co., Inc.
EV Energy Partners LP
First Data Corp.
HJ Heinz Co.
L Brands Inc.
MTR Gaming Group Inc.
Neenah Paper Inc.
Neiman Marcus Group Ltd., LLC
NRG Energy Inc.
Post Holdings Inc.
PulteGroup Inc.
Rite Aid Corp.
Ruby Tuesday Inc.
250,000
150,000
150,000
100,000
100,000
150,000
Canadian Bond (5.6%)
Atlantic Power Limited Partnership
AutoCanada Inc.
Cascades Inc.
Cascades Inc.
Millar Western Forest Products Ltd.
Niska Gas Storage Partners LLC
TOTAL FIXED INCOME
6/23/2036
5/25/2021
1/15/2020
7/15/2022
4/1/2021
4/1/2019
5.50% $
7.50%
7.38%
8.00%
11.25%
4.25%
7.60%
11.50%
5.25%
8.00%
6.25%
6.00%
6.38%
6.75%
7.63%
5.95%
5.63%
7.88%
5.50%
8.50%
6.50%
Average
Cost*
162,233
174,308
120,991
227,891
217,752
165,943
299,768
181,373
166,002
175,668
172,300
163,927
164,322
172,391
164,323
2,729,192
Fair
Value
$
176,561
147,677
128,566
198,061
227,930
175,910
318,519
188,940
178,081
184,596
182,859
162,662
174,606
180,253
171,132
2,796,353
185,104
153,458
156,207
110,540
116,113
154,226
875,648
3,604,840
180,625
148,438
181,556
115,680
120,458
131,606
878,363
3,674,716
282,800
162,544
206,001
306,716
958,061
236,504
137,160
372,436
316,068
1,062,168
265,468
234,377
328,472
828,317
300,560
232,085
319,738
852,383
9,400
7,200
4,594
7,465
Energy (6.8%)
ARC Resources Ltd.
Cameco Corp.
Keyera Corp.
Pembina Pipeline Corp.
8,500
3,500
5,760
Financials (5.4%)
Alaris Royalty Corp.
Bank of Nova Scotia
3,400
Magna International Inc.
410,020
428,026
8,000
Industrial (1.6%)
Westshore Terminals Investment Corp.
270,090
253,040
4,000
Telecommunication Services (1.4%)
BCE Inc.
199,714
213,120
2,666,202
2,808,737
41
5/15/2022
12/1/2020
12/15/2026
4/15/2019
1/15/2021
10/15/2020
7/15/2037
8/1/2019
5/15/2021
10/15/2021
7/15/2022
12/15/2022
5/15/2033
6/15/2021
5/15/2020
Coupon
Average
Cost*
Number of Shares
5,300
2,500
4,600
5,000
12,000
7,600
3,000
5,000
6,500
4,400
4,500
4,000
5,000
1,900
UNITED STATES EQUITIES (57.6%)
Health Care (18.7%)
Abbvie Inc.
Aetna Inc.
Johnson & Johnson
Novo Nordisk A/S
Pfizer Inc.
Roche Holding AG
Sanofi
UnitedHealth Group Inc.
$
Comcast Corp.
Home Depot Inc.
Lennar Corp.
Time Warner Inc.
Walt Disney Co.
Whirlpool Corp.
10,100
2,000
6,500
5,500
Industrials (7.3%)
General Electric Co.
Siemens AG
Tata Motors Ltd.
Volkswagen AG
36,340
8,500
Financials (5.7%)
Banco Santander SA
Wells Fargo & Co.
1,500
2,000
3,000
Consumer Staples (4.5%)
Anheuser-Busch InBev NV
Diageo PLC
Nestle SA
3,000
1,000
Materials (2.2%)
LyondellBasell Industries NV
Syngenta AG
3,100
Energy (2.0%)
Schlumberger Ltd.
2,300
1
Verizon Communications Inc.
Vodafone Group
TOTAL UNITED STATES EQUITIES
Fair value, futures contract (0.3%)
Total investments
Total net assets
42
$
338,637
228,270
483,175
254,493
385,009
303,144
168,039
496,676
2,657,443
Fair
Value
$
401,719
257,219
557,145
245,086
432,955
299,204
158,484
585,438
2,937,250
377,096
399,086
238,760
359,620
383,146
331,950
2,089,658
436,736
534,960
233,556
395,752
545,479
426,360
2,572,843
281,238
271,627
261,278
278,305
1,092,448
295,617
259,448
318,310
274,309
1,147,684
392,002
406,080
798,082
350,617
539,711
890,328
178,952
266,128
246,968
692,048
195,142
264,290
253,482
712,914
364,256
77,169
441,425
275,860
74,406
350,266
370,595
306,672
130,702
57
130,759
124,621
40
124,661
8,272,458
9,042,618
14,543,500
65,348
(5,771)
14,603,077
139,613
14,742,690 $
15,526,071
51,594
15,577,665
139,613
15,717,278
As at,
December 31,
2014
Assets
Current assets
Investments
Cash
Income receivable
$
$
708,663
76,568
1,131
22,954
809,316
Liabilities
Accrued liabilities
$
$
392
35,816
543
36,751
$
772,565
$
$
759,089
13,476
$
$
10.60
10.66
Class A
Class F
Class A
Class F
Gerry L. Brockelsby
Director
See note 1 for the commencement date of each class
43
Stephen J. Zamin
Director
For the period from July 17 to December 31,
2014
Income
Dividends
Other income
exchange gain
Total Income
$
4,850
1,515
2,034
33,929
42,328
Expenses (note 4)
Management fees
Withholding taxes
Interest expense
Operating expenses
Audit fees
Custodian fees
Legal fees
3,006
718
603
57
9,946
5,615
11,794
17,929
1,657
291
51,616
(46,472)
5,144
Total Expenses
$
37,184
$
$
32,974
4,210
$
$
0.64
0.69
Class A
Class F
Increase in net assets attributable to holders of redeemable unit per unit
Class A
Class F
44
Class A
2014
$
Class F
2014
- $
32,974
Total
2014
- $
4,210
37,184
Return of capital
(664)
(1,745)
(5,195)
(7,604)
(31)
(31)
(682)
(744)
(695)
(1,776)
(5,877)
(8,348)
882,592
6,172
(155,045)
733,719
162,429
744
(153,163)
10,010
1,045,021
6,916
(308,208)
743,729
45
$
759,089
$
13,476
$
772,565
2014
Adjustments for:
exchange gain
Dividend receivable
Accrued liabilities
$
37,184
(2,034)
(33,929)
(894,686)
237,165
(1,131)
392
(657,039)
(889)
1,045,021
(308,208)
735,924
Net cash from financing activities
46
$
(2,317)
78,885
76,568
Average
Cost*
Number of Shares
200
195
675
135
145
350
Industrial (15.3%)
Caterpillar Inc.
Deere & Co.
United Parcel Service Inc., Class B
United Technologies Corp.
Waste Management Inc.
270
305
160
340
575
Health Care (13.8%)
Baxter International Inc.
Bristol-Myers Squibb Co.
Johnson & Johnson Ltd.
Merck & Co Inc.
Pfizer Inc.
175
675
575
95
230
Apple Inc.
Cisco Systems Inc.
EMC Corp.
International Business Machines Corp.
QUALCOMM Inc.
325
250
225
350
Financials (11.1%)
JPMorgan Chase & Co.
Northern Trust Corp.
State Street Corp.
Wells Fargo & Co.
165
250
230
210
Energy (10.6%)
Chevron Corp.
ConocoPhillips
EI Du Pont de Nemours & Co.
Schlumberger Ltd.
385
385
230
General Mills Inc.
Kraft Foods Group Inc.
Procter & Gamble Co.
535
260
490
AT&T Inc.
Viacom Inc.
140
270
McDonalds Corp.
Target Corp.
230
285
22,436 $
18,532
19,524
15,172
17,582
18,413
111,659
21,203
19,982
19,757
17,383
19,314
20,805
118,444
22,167
18,001
18,954
22,735
19,517
101,374
22,920
20,853
19,379
22,364
20,746
106,262
20,290
19,223
19,026
19,190
19,127
96,856
22,373
21,746
19,807
17,654
19,801
101,381
21,942
19,116
18,708
20,496
80,262
23,557
19,517
20,458
22,223
85,755
21,762
20,132
17,702
22,360
81,956
21,439
19,997
19,697
20,775
81,908
22,394
24,875
21,945
69,214
23,781
27,942
24,266
75,989
20,662
22,653
26,843
70,158
20,815
22,660
26,550
70,025
14,636
19,546
34,182
15,194
23,739
38,933
Utilities (2.9%)
Duke Energy Corp.
19,320
22,255
Materials (1.0%)
Freeport-McMoRan Copper & Gold Inc.
10,100
7,711
675,081
708,663
Total investments
Total net assets
675,081
(347)
674,734
63,902
738,636 $
708,663
708,663
63,902
772,565
47
$
Fair
Value
$
As at ,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current assets
Investments
Cash
Income receivable
$
3,631,030
152,159
6,228
119,020
3,908,437
$
3,840,849
519,868
5,873
92,473
4,459,063
$
$
$
1,859
345
133,992
136,196
$
$
1,820
345
52
1,942
4,159
$
349
345
47,486
636
48,816
$
3,772,241
$
4,454,904
$
1,013,172
$
$
$
3,188,508
583,733
-
$
$
$
2,917,800
647,646
889,458
$
$
$
635,539
84,453
293,180
$
$
$
16.69
17.15
-
$
$
$
14.32
14.55
11.23
$
$
$
11.59
11.65
9.79
$
$
$
1,005,553
55,266
1,169
1,061,988
Liabilities
Current liabilities
Accrued liabilities
$
Series A
Series F
Series T8
Series A
Series F
Series T8
Gerry L. Brockelsby
Director
48
Stephen J. Zamin
Director
2014
2013
(Note 14)
Income
Dividends
Other income
exchange gain
$
112,536
45
103
216
$
66,848
1,139
33
-
296,474
299,936
709,310
39,769
498,700
606,489
79,114
16,519
998
136
10,077
9,678
37,230
17,933
1,657
294
173,636
(55,674)
117,962
55,362
10,080
902
10
22,191
15,476
19,250
35,138
4,428
555
163,392
(34,404)
128,988
Expenses (note 4)
Management fees
Withholding taxes
Interest expense
Operating expenses
Audit fees
Custodian fees
Legal fees
Total Expenses
$
591,348
$
477,501
$
$
$
444,209
86,415
60,724
$
$
$
312,108
51,557
113,836
$
$
$
2.37
2.50
0.87
$
$
$
2.30
2.21
1.91
Series A
Series F
Series T8
Series A
Series F
Series T8
49
Series A
2014
2013
$ 2,917,800
444,209
$
635,539
2014
$
312,108
647,646
Series F
2013
$
84,453
86,415
51,557
Return of capital
(562)
(562)
-
(126)
(126)
-
1,302,511
450
(1,475,900)
(172,939)
2,601,344
(631,191)
1,970,153
93,926
70
(244,198)
(150,202)
605,210
(93,574)
511,636
$ 3,188,508
2014
$
889,458
$ 2,917,800
Series T8
2013
$
$
583,733
$
647,646
Total
2014
2013
293,180
$ 4,454,904
$ 1,013,172
60,724
113,836
591,348
477,501
(37,383)
(37,383)
(49,444)
(49,444)
(688)
(37,383)
(38,071)
(49,444)
(49,444)
36,663
22,089
(971,551)
(912,799)
574,162
31,847
(74,123)
531,886
1,433,100
22,609
(2,691,649)
(1,235,940)
3,780,716
31,847
(798,888)
3,013,675
Return of capital
50
$
-
$
889,458
$ 3,772,241
$ 4,454,904
Statement of cash flow
2014
2013
Adjustments for:
exchange gain
Income receivable
Accrued liabilities
$
591,348
$
477,501
(296,474)
(299,936)
(500,087)
1,418,723
(355)
39
913,258
(39,769)
(498,700)
(2,637,979)
205,999
(4,704)
1,471
(2,496,181)
(17,404)
1,433,100
(2,691,701)
(1,276,005)
(16,291)
3,780,716
(798,836)
2,965,589
Net cash (used) in from financing activities
51
$
(4,962)
(367,709)
519,868
152,159 $
(4,806)
464,602
55,266
519,868
Average
Cost*
Number of Shares
1,000
1,000
3,500
700
750
1,800
Industrials (16.1%)
Caterpillar Inc.
Deere & Co.
United Parcel Service Inc., Class B
United Technologies Corp.
Waste Management Inc.
1,400
1,600
800
1,600
3,000
Health Care (14.3%)
Baxter International Inc.
Bristol-Myers Squibb Co.
Johnson & Johnson Ltd.
Merck & Co Inc.
Pfizer Inc.
900
3,500
3,000
500
1,200
Apple Inc.
Cisco Systems Inc.
EMC Corp.
International Business Machines Corp.
QUALCOMM Inc.
1,700
1,300
1,200
1,800
Financials (11.9%)
JPMorgan Chase & Co.
Northern Trust Corp.
State Street Corp.
Wells Fargo & Co.
800
1,250
1,200
1,000
Energy (10.7%)
Chevron Corp.
ConocoPhillips
EI Du Pont de Nemours & Co.
Schlumberger Ltd.
2,000
2,000
1,200
General Mills Inc.
Kraft Foods Group Inc.
Procter & Gamble Co.
2,800
2,400
1,300
AT&T Inc.
Viacom Inc.
700
1,400
McDonalds Corp.
Target Corp.
1,200
1,500
91,023 $
84,585
78,389
60,033
86,520
70,982
471,532
106,015
102,471
102,442
90,134
99,899
106,995
607,956
101,733
60,622
68,169
73,315
89,868
393,707
118,844
109,395
96,895
105,243
108,239
538,616
60,649
73,132
75,200
98,350
71,340
378,671
115,063
112,759
103,339
92,915
103,311
527,387
80,862
69,694
70,122
64,709
285,387
123,222
101,486
109,107
114,292
448,107
97,838
102,755
62,478
85,864
348,935
103,946
99,986
102,769
98,926
405,627
91,941
103,476
96,466
291,883
123,539
145,152
126,606
395,297
101,710
121,958
113,969
337,637
108,936
130,039
113,306
352,281
68,889
93,434
162,323
75,970
123,092
199,062
Utilities (3.1%)
Duke Energy Corp.
83,085
116,112
Materials (1.1%)
Freeport-McMoRan Copper & Gold Inc.
50,588
40,585
2,803,748
3,631,030
Total investments
Total net assets
2,803,748
(807)
2,802,941
141,211
2,944,152 $
3,631,030
3,631,030
141,211
3,772,241
52
$
Fair
Value
$
As at,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Assets
Investments
Cash
Interest receivable
$
$
1,697,837
1,256,677
309
67,841
3,022,664
$
$
3,778,900
817,356
574
118,738
427
1,343
4,717,338
$
$
6,670,171
1,629,568
7,438
427
1,343
8,308,947
Liabilities
Accrued liabilities
$
$
$
2,095
2,281
4,376
$
$
2,722
7,743
10,465
$
4,020
13,689
17,709
$
3,018,288
$
4,706,873
$
8,291,238
$
$
3,003,963
14,325
$
$
4,658,399
48,474
$
$
8,144,431
146,807
$
$
11.30
12.74
$
$
10.67
11.89
$
$
11.56
12.71
Class A
Class F
Class A
Class F
Gerry L. Brockelsby
Director
53
Stephen J. Zamin
Director
2014
2013
(Note 14)
Income
Dividends
Other income
Total Income
$
4,976
8,573
686
6,579
42
$
193,471
214,442
428,769
24,601
12,335
677
9,590
(3,410,368)
3,163,454
(199,711)
Expenses (note 4)
Management fees
Operating expenses
Audit fees
Custodian fees
Legal fees
Withholding taxes
102,757
81,724
16,076
12,130
32,559
18,098
1,657
470
265,471
(50,031)
215,440
Total Expenses
167,750
64,006
41,034
26,306
14,178
35,138
4,428
892
353,732
(37,484)
316,248
$
213,329
$
(515,959)
$
$
210,391
2,938
$
$
(508,712)
(7,247)
$
$
0.61
1.82
$
$
(0.93)
(1.11)
Class A
Class F
Increase (decrease) in net assets attributable to holders of redeemable units per unit
Class A
Class F
54
Class A
2014
$
4,658,399
210,391
Class F
2013
$ 8,144,431
2014
$
(508,712)
48,474
2013
$
146,807
2,938
(7,247)
115,920
(1,980,747)
(1,864,827)
$
3,003,963
242,443
(3,219,763)
(2,977,320)
$ 4,658,399
1,233
(38,320)
(37,087)
$
14,325
14,800
(105,886)
(91,086)
$
48,474
Total
2014
$ 4,706,873
213,329
2013
$ 8,291,238
(515,959)
55
117,153
(2,019,067)
(1,901,914)
$ 3,018,288
257,243
(3,325,649)
(3,068,406)
$ 4,706,873
2014
2013
Adjustments for:
Interest receivable
Dividend receivable
Accrued liabilities
$
213,329
$
(515,959)
(193,471)
(214,442)
(6,417,037)
8,957,190
427
265
(627)
2,345,634
3,410,368
(3,163,454)
(3,793,665)
6,314,933
6,864
(1,298)
2,257,789
118,496
(2,024,529)
(1,906,033)
257,243
(3,331,595)
(3,074,352)
Foreign exchange (gain) loss on cash
56
$
(280)
439,321
817,356
1,256,677 $
4,351
(812,212)
1,629,568
817,356
Number of
Shares, Units or
Warrants
267
160,000
164,173
1,501,000
1,000,000
22,025
44,899
76,962
139,279
20,041
62,509
11,216
77,167
34,614
107,900
107,900
6,410
29,252
538
200,000
1,274,110
412,500
1,500,000
750,000
200,000
100,000
438,046
219,023
1,162,500
4,700,000
4,225,000
87,743
2,661
81,286
478,106
72,274
75,633
200,000
750,000
750,000
1,403,000
500
Expiry
Date
Constellation Software Inc.
Echoworx Corporation, Restricted Shares
Engagement Labs Inc.
Intercable ICH Inc.
Mediascrape, Restricted Shares
Obsidian Strategies Inc., Class A
QHR Corp.
Slyce Inc.
Smart Employee Benefits Inc.
Sphere 3D Corporation, Warrants (Restricted)
VersaPay Corp.
Health Care (12.3%)
Aptose Biosciences Inc.
Patient Home Monitoring Corp.
ProMetic Life Sciences Inc.
Revive Therapeutics Ltd.
Revive Therapeutics Ltd., Warrants
Sophiris Bio Inc., Warrants (Restricted)
Titan Medical Inc., Warrants
Valeant Pharmaceuticals International Inc.
Materials (8.6%)
AGR-O Phosphate Inc., Restricted Shares
Alpaca Resources Inc., Restricted Shares
Brazilian Resources Inc., Restricted Shares
Cordillera Gold Ltd.
Cordillera Gold Ltd., Warrants (Restricted)
Desiree Resources Inc., Restricted Shares
Desiree Resources Inc., Warrants (Restricted)
Nemaska Lithium Inc.
Nemaska Lithium Inc., Warrants
NovaDx Ventures Corp.
Precision Assessment Technology Corp.
Royal Coal Corp., Warrants (Restricted)
Veris Gold Corp., Warrants
Industrial (2.8%)
Eurocontrol Technics Group Inc.
Opsens Inc.
Opsens Inc., Warrants
Pueblo Potash Inc., Restricted Shares
Shamika Resources Inc.
Shamika Resources Inc., Warrants
Synergex Corporation
Windtronics LLC., Restricted Shares
Average
Cost*
$
11/12/2015
18/12/2016
3/16/2015
19/02/2017
$4.50
$0.85
$33.80
$2.00
1/1/2049
$0.25
12/31/2015
$0.35
11/16/2015
$0.25
8/12/2015
12/2/2016
$0.20
$0.50
Financials (4.3%)
Gluskin Sheff + Associates Inc.
Terra Firma Capital Corp.
57
Strike
Price
2/18/2016
$1.05
1/1/2049
$0.30
79,578
150,960
102,918
1,171,904
300,000
33,038
62,419
55,436
86,234
100,972
2,143,459
Fair
Value
$
92,232
28,800
77,161
56,573
68,496
61,979
45,092
88,138
518,471
69,808
11,575
38,250
64,740
78,872
263,245
77,055
67,135
66,113
64,740
7,020
89,486
371,549
113,706
375,000
150,000
40,000
74,468
575,700
1,211,044
2,539,918
12,741
150,000
1
20,000
72,278
5,813
4
260,837
76,808
51,210
128,018
73,683
56,087
129,770
62,472
43,448
3,025
150,000
1,598,515
150,000
2,007,460
28,686
51,316
3,800
1
1
83,804
Number of
Shares, Units or
Warrants
84,171
84,850
50,000
600,000
3,451,000
1,100,000
41,487
13,300
500,000
275,000
1,400,000
4,584,500
3,335,980
Expiry
Date
Energy (2.6%)
Fission Uranium Corp.
Nexgen Energy Ltd., Warrants
Nuwest Oil & Gas Ltd., Restricted Shares
Poplar Point Energy Inc.
Royal Coal Corp.
SonnenEnergy Corp.
Strike
Price
Average
Cost*
$
26/03/2016
$0.65
CPN International Inc., Restricted Shares
Frankly Inc.
PCC Communications Inc., Restricted Shares
167,866
5,625
19,231
$
72,388
7,212
79,600
40,565
40,565
62,312
664,003
16,830
743,145
1
5
16,680
16,686
9,598,051
1,501,282
Financial (5.4%)
Currency Exchange International Corp.
95,999
163,391
Industrial (1.1%)
Bluemetric Environmental Inc.
81,382
31,895
1
1,238
49,586
31
226,968
196,555
CY Oriental Holdings Ltd.
Futura Loyalty Group Inc.
Knightscove Media Corp., Class A
ZipLocal Inc.
EFactor Group Corp.
Energy (0.0%)
Evergreen Energy Inc., Restricted Shares
Total investments
Total net assets
58
88,380
25,000
250,000
699,984
550,000
1,613,364
118,876
40,565
1
159,442
6,333
Fair
Value
$
9,825,019
(17,541)
9,807,478
1,320,451
11,127,929 $
1,697,837
1,697,837
1,320,451
3,018,288
As at,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Assets
Investments
Cash
Miscellaneous receivable
$
$
2,524,103
927,414
593
392
3,452,502
$
$
6,310,908
506,241
2,682
500
430,149
47,127
7,297,607
$
$
13,244,926
532,917
17,438
1,576
13,796,857
Liabilities
Accrued liabilities
$
$
1,129
42,573
43,702
$
$
$
1,906
38,313
40,219
$
$
3,098
87,221
90,319
3,408,800
$
7,257,388
$
13,706,538
$
$
$
383,594
3,025,206
-
$
$
$
781,147
6,473,756
2,485
$
$
$
2,021,133
11,683,673
1,732
$
$
$
4.64
5.04
-
$
$
$
6.80
7.31
10.35
$
$
$
12.16
12.97
18.20
Class A
Class F
Class I
Class A
Class F
Class I
Gerry L. Brockelsby
Director
59
Stephen J. Zamin
Director
Marquest Asset Management Inc
2014
2013
(Note 14)
Income
Dividends
Other income
exchange loss
Change in unrealized appreciation (depreciation) in value of investments
Interest
Total Income
$
20,916
1,960
18
$
33,837
4,085
10,515
(2,447,219)
819,898
(1,604,427)
(6,446,598)
(466,672)
3,819
(6,861,014)
88,247
129
230,948
1,585
9,028
10,749
36,096
17,904
1,657
264
396,607
(47,436)
349,171
156,182
134
289,295
342
51,042
20,486
28,106
35,138
4,428
450
585,603
(35,525)
550,078
Expenses (note 4)
Management fees
Withholding taxes
Interest expense
Operating expenses
Audit fees
Custodian fees
Legal fees
Total Expenses
Decrease in net assets attributable to holders of redeemable units
$
(1,953,598) $ (7,411,092)
$
$
$
(179,975) $ (725,124)
(1,773,663) $ (6,684,811)
40 $
(1,157)
Decrease in net assets attributable to holders of redeemable units per class
Class A
Class F
Class I
Decrease in net assets attributable to holders of redeemable units per unit
Class A
Class F
Class I
60
$
$
$
(1.81) $
(2.07) $
4.98 $
(5.56)
(5.54)
(6.60)
Class F
Class A
2014
$
Decrease in net assets from operations
781,147
2013
$
2,021,133
2014
$
6,473,756
2013
$
11,683,673
(179,975)
(725,124)
(1,773,663)
(6,684,811)
99,378
(316,956)
(217,578)
92,948
(607,810)
(514,862)
7,735,254
(9,410,141)
(1,674,887)
18,350,105
(16,875,211)
1,474,894
$
383,594
$
781,147
$
3,025,206
$
Decrease in net assets from operations
2,485
2013
$
40
6,473,756
Total
Class I
2014
$
1,732
2014
$
7,257,388
2013
$
13,706,538
(1,157)
(1,953,598)
(7,411,092)
1,910
1,910
7,834,632
(9,729,622)
(1,894,990)
18,444,963
(17,483,021)
961,942
61
(2,525)
(2,525)
$
-
$
2,485
$
3,408,800
$
7,257,388
2014
2013
Decrease in net assets attributable to holders of redeemable units
Adjustments for:
exchange loss
Change in unrealized appreciation (depreciation) in value of investments
Dividend receivable
Accrued liabilities
$
(1,953,598) $
(7,411,092)
2,447,219
(819,898)
(18,626,669)
20,833,288
430,149
2,089
(777)
2,311,803
6,446,598
466,672
(39,958,129)
39,524,848
406,897
(428,573)
14,756
(1,192)
(939,215)
7,834,740
(9,725,362)
(1,890,622)
18,444,463
(17,531,929)
912,534
Net cash (used in) from financing activities
Foreign exchange loss(gain) on cash
62
$
(8)
421,173
506,241
927,414 $
5
(26,676)
532,917
506,241
Number of
Shares, Units
or Warrants
256,987
438,655
5,933
373,388
708,230
440,250
1
303,192
525,554
307,975
987,000
2,756,000
795,455
576,458
281,250
361,416
871,644
666,319
155,001
1,042,203
347,571
133,367
491,414
65,000
22,779
63,750
810,000
27,327
4,500,000
13,704
3,000,000
1,500,000
3,075,167
1,063,636
1,152,181
395,000
281,250
1,900,000
773,121
116,750
3,780,200
105,900
61,000
16,000,000
70,116
74,445
994,750
994,750
Expiry
Date
Base Metals (33.6%)
Argex Titanium Inc.
Azincourt Uranium Inc.
Cameco Corp.
Canada Zinc Metals Corp.
Chibougamau Independent Mines Inc.
Commerce Resources Corp., Warrants
Encanto Potash Corp.
Encanto Potash Corp., Warrants
Encanto Potash Corp., Warrants
Falco Resources Ltd.
Gespeg Copper Resources Inc.
Logan Copper Inc.
Lomiko Metals Inc., Warrants
Macusani Yellowcake Inc.
Metanor Resources Inc., Warrants
Miocene Metals Ltd., Restricted Shares
Nemaska Lithium Inc.
Nemaska Lithium Inc., Warrants
Puma Exploration Inc.
Rockex Mining Corporation, Warrants
Royal Nickel Corp.
Royal Nickel Corp., Warrants
Talon Metals Corp.
Triaxon Oil Corp., Restricted Shares
Uranium Participation Corp.
VMS Ventures Inc., Warrants
World Wide Minerals Ltd.
Precious Metals (21.6%)
Azincourt Uranium Inc., Warrants (Restricted)
Campbell Resources Inc.
Continental Gold Ltd.
Cordillera Gold Ltd.
Cordillera Gold Ltd., Warrants (Restricted)
Gowest Gold Ltd., Warrants
Horizonte Minerals PLC
Integra Gold Corp.
International Roraima Gold Corporation
Metanor Resources Inc.
Northern Star Mining Corp.
Prima Diamond Corp.
Red Ore Gold Inc.
Red Pine Exploration Inc., Warrants
Rosehearty Energy Inc.
Shear Diamonds Ltd.
Starfield Resources Inc.
Xmet Inc.
Xmet Inc., Warrants
63
Strike
Price
Average
Cost*
$
14/09/2015
$0.35
18/08/2015
15/10/2015
$0.30
$0.30
13/09/2015
$0.15
13/05/2016
$0.30
28/10/2015
$0.18
19/09/2015
$0.65
11/07/2016
$0.80
15/11/2015
$0.35
01/10/2015
$0.40
31/12/2049
19/12/2014
$0.25
$0.14
01/05/2017
$0.10
02/12/2016
02/12/2016
$0.50
$0.50
19/08/2015
$0.18
168,326
52,885
127,799
192,036
53,117
44
168,172
85,540
468,520
50,192
17,500
115,839
30,225
218,146
216,714
130,000
128,761
2,223,816
43,853
300,000
117,000
443,590
45,000
48,000
154,624
11,675
10,590
21,602
800,000
115,391
99
2,111,424
Fair
Value
$
118,214
13,160
113,024
106,416
33,641
1
132,429
29,610
3
1
25,941
3,614
143,821
1
24,025
1
111,223
12,003
127,768
32,500
117,312
1
1,144,709
25,352
300,000
2
3
66,477
224,675
21,094
2
36,723
4
2,118
16
59,685
1
736,152
Number of
Shares, Units
or Warrants
74,224
681,818
15,196
227,191
200,863
204,222
126,986
58,725
1,000,000
1,428,572
57,865
Expiry
Date
Oil & Gas (18.9%)
Andora Energy Corp., Restricted Shares
Aroway Energy Inc, Warrants
Canyon Services Group Inc.
Fission 3.0 Corp.
Fission Uranium Corp.
Great Prairie Energy Services Inc.
NexGen Energy Ltd.
NexGen Energy Ltd., Warrants
Poplar Point Energy Inc.
Rallyemont Energy Inc., Class A, Restricted Shares
Spartan Energy Corp.
Average
Cost*
$
12/12/2014
$0.65
26/03/2016
$0.65
325,000
172,169
15,146
131,531
79,852
69,215
340,000
500,000
185,469
1,818,382
Fair
Value
$
31,916
1
136,612
18,175
172,742
36,249
48,255
4,992
32,857
161,443
643,242
6,153,622
2,524,103
Total investments
Total net assets
6,153,622
(10,220)
6,143,402
884,697
7,028,099 $
2,524,103
2,524,103
884,697
3,408,800
64
Strike
Price
$
As at,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Assets
Investments
Cash
Refundable taxes receivable
Receivable from other corporate classes (note 4)
Income receivable
$
$
Liabilities
Accrued liabilities
$
3,024,145
1,124,991
18,059
2,500,674
245,956
6,913,825
$
$
6,482,917 $
223,728
11,106
4,511,597
245,956
5,024
11,480,328 $
$
$
2,181
25,541
27,722
$
3,014
25,397
28,411
$
3,637
56,524
60,161
$
6,886,103
$
11,451,917 $
16,485,729
Series A
Series F
$
$
6,846,785
39,318
$
$
11,409,277 $
42,640 $
16,422,260
63,469
Series A
Series F
$
$
4.11
4.29
$
$
5.13
5.30
$
11,633,486
112,865
34,671
4,513,888
245,956
5,024
16,545,890
$
$
Gerry L. Brockelsby
Director
65
Stephen J. Zamin
Director
7.83
7.99
2013
(Note 14)
2014
Income
exchange loss
Total Income
$
Expenses (note 4)
Management fees
Interest expense
Operating expenses
Audit fees
Custodian fees
Legal fees
Total Expenses
112
$
22,266
(3,810,691)
2,039,602
(1,770,977)
(7,810,395)
1,137,099
(6,651,030)
114,186
5,180
5,650
9,176
27,084
17,811
1,657
165
180,909
(4,216)
176,693
176,352
2,850
176,264
4,098
26,802
35,138
4,428
5,185
431,117
(52,611)
378,506
Decrease in net assets attributable to holders of redeemable shares
$
(1,947,670) $
(7,029,536)
Decrease in net assets attributable to holders of redeemable shares per series
Series A
Series F
$
$
(1,938,668) $
(9,002) $
(7,008,662)
(20,874)
Decrease in net assets attributable to holders of redeemable shares per share
Series A
Series F
$
$
(0.94) $
(1.12) $
(2.67)
(2.73)
66
Series F
Series A
2014
2014
2013
11,409,277 $
16,422,260 $
42,640
(1,938,668)
(7,008,662)
(9,002)
(20,874)
6,665,304
(9,289,128)
(2,623,824)
18,352,979
(16,357,300)
1,995,679
13,645
(7,965)
5,680
34,531
(34,486)
45
$
2013
$
6,846,785
$
11,409,277 $
39,318
$
63,469
$
42,640
Total
2014
2013
11,451,917 $
16,485,729
(1,947,670)
(7,029,536)
Proceeds from shares issued
Value of shares redeemed
Net capital share transactions
6,678,949
(9,297,093)
(2,618,144)
18,387,510
(16,391,786)
1,995,724
67
$
$
6,886,103
$
11,451,917
2014
Adjustments for:
exchange loss
Interest receivable
Refundable taxes receivable
Receivable from other corporate classes
Accrued liabilities
$
Net cash (used in) from financing activities
68
$
2013
(1,947,670) $
(7,029,536)
3,810,691
(2,039,602)
(12,515,738)
14,196,468
5,024
2,010,923
(833)
3,519,263
7,810,395
(1,137,099)
(33,486,390)
31,987,228
2,291
(623)
(1,853,734)
6,678,949
(9,296,949)
(2,618,000)
18,387,510
(16,422,913)
1,964,597
901,263
223,728
1,124,991
$
110,863
112,865
223,728
Average
Cost
Number of Units
6,157,597
Marquest Canadian Resource Fund, Class F
Total net assets
69
$
$
Fair
Value
6,157,597 $
6,157,597
3,024,145
3,024,145
6,157,597
3,861,958
10,019,555 $
3,024,145
3,861,958
6,886,103
As at ,
December 31,
2014
Assets
Current Assets
Investments
Cash
$
$
393,238
10,244
1,316
79,062
483,860
Liabilities
Accrued liabilities
Written covered call options
$
$
151
59,106
3,082
452
62,791
$
421,069
$
$
276,125
144,944
$
$
9.64
9.83
Class A*
Class F*
Class A*
Class F*
Gerry L. Brockelsby
Director
70
Stephen J. Zamin
Director
2014
Investment Income
Dividends
Income from derivatives
Other income
exchange gain
Net change in unrealized depreciation in value of investments
Total Income
$
4,019
3,862
524
1,415
(4,941)
4,879
Expenses (note 4)
Management fees
Operating expenses
Audit fees
Custodian fees
Legal fees
Interest expense
540
399
3,640
4,900
15,893
17,756
1,657
106
44,891
(43,872)
1,019
Total expenses
$
3,860
$
$
733
3,127
$
$
0.03
0.19
Class A*
Class F*
Class A*
Class F*
71
$
Class A
Class F
Total
2014
2014
2014
- $
733
- $
-
3,127
3,860
(1,483)
(4,837)
(6,320)
(1,276)
(2,556)
(3,832)
(2,759)
(7,393)
(10,152)
339,066
2,795
(60,149)
281,712
299,576
2,436
(156,363)
145,649
638,642
5,231
(216,512)
427,361
72
$
276,125
$
144,944
$
421,069
2014
Adjustments for:
exchange gain
Net change in unrealized depreciation in value of investments
Appreciation (depreciation) on option premium
Dividend receivable
Accrued liabilities
$
3,860
(1,415)
4,941
428
(702,036)
226,234
(1,316)
151
(469,153)
Cash flows from financing activities
(1,839)
638,642
(157,406)
479,397
73
$
10,244
10,244
Average
Cost*
Number of Shares
476
583
389
610
33
596
447
239
899
787
554
484
473
704
Financials (93.4%)
Bank of Montreal
Bank of Nova Scotia
Canadian Imperial Bank of Commerce
Fairfax Financial Holdings Ltd.
Industrial Alliance Insurance & Financial Services Inc.
Intact Financial Corp.
Total investments
Total net assets
74
$
$
Fair
Value
39,069 $
40,600
40,727
23,308
16,901
19,171
20,493
19,524
19,429
40,799
19,137
39,654
19,761
39,791
398,364
39,118
38,658
38,838
19,978
20,090
20,020
19,860
20,040
19,940
38,909
20,044
38,836
19,828
39,079
393,238
398,364
(209)
398,155
27,831
425,986 $
393,238
393,238
27,831
421,069
(Corporate Class)
As at ,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Assets
Investments
Cash
$
7,148,803
282,299
19,588
7,450,690
$
$
$
2,866
77,919
19,962
100,747
$
1,984
26,593
59,017
87,594
$
7,349,943
$
5,932,715
$ 3,799,106
$
$
6,968,685
381,258
$
$
5,707,129
225,586
$ 3,708,404
$
90,702
$
$
10.48
10.55
$
$
10.95
11.01
$
$
5,778,130
225,975
16,204
6,020,309
$ 3,798,961
21,367
16,012
17,648
$ 3,853,988
Liabilities
Accrued liabilities
$
$
$
1,049
28,979
10,274
14,580
54,882
Series A
Series F
Series A
Series F
$
$
10.59
10.62
Gerry L. Brockelsby
Director
75
Stephen J. Zamin
Director
Marquest Asset Management In
(Corporate Class)
2014
2013
(Note 14)
Investment Income
Dividends
Income from derivatives
Other income
exchange gain
Total Income
$
235,153
194
195,913
229
246
$ 168,149
197
151,734
-
548,132
(237,704)
742,163
604,513
76,205
1,000,798
Expenses (note 4)
Management fees
Transaction costs
Interest expense
Operating expenses
Audit fees
Custodian fees
Legal fees
126,421
15,801
3
115,071
18,682
60,499
20,819
1,657
3,362
362,315
(204,283)
158,032
Total expenses
90,412
8,165
69
103,368
16,058
26,457
35,138
4,428
3,638
287,733
(83,021)
204,712
$
584,131
$ 796,086
$
$
551,346
32,785
$ 773,295
$ 22,791
$
$
0.92
1.03
Series A
Series F
Series A
Series F
76
$
$
1.77
2.04
(Corporate Class)
Series A
2014
$
5,707,129
Series F
2013
$
3,708,404
2014
$
225,586
2013
$
90,702
551,346
773,295
32,785
22,791
(85,275)
(738,715)
(823,990)
(59,274)
(594,172)
(653,446)
(7,523)
(41,371)
(48,894)
(2,394)
(21,783)
(24,177)
2,085,214
720,622
(1,271,636)
1,534,200
2,109,295
576,706
(807,125)
1,878,876
263,666
35,909
(127,794)
171,781
140,909
19,367
(24,006)
136,270
$
6,968,685
$
5,707,129
$
381,258
$
225,586
Total
2014
2013
$ 5,932,715
584,131
796,086
(92,798)
(780,086)
(872,884)
(61,668)
(615,955)
(677,623)
2,348,880
756,531
(1,399,430)
1,705,981
2,250,204
596,073
(831,131)
2,015,146
$
3,799,106
77
$ 7,349,943
$
5,932,715
(Corporate Class)
2014
2013
Adjustments for:
exchange gain
Appreciation (depreciation) on option premium
Dividend receivable
Accrued liabilities
$
584,131
$
796,086
(548,132)
237,704
17,874
(17,450,749)
16,392,538
(3,384)
882
(769,136)
(604,513)
(76,205)
(14,580)
(12,644,420)
11,363,646
(192)
935
(1,179,243)
(97,451)
2,348,880
(1,426,023)
825,406
(32,807)
2,250,204
(833,517)
1,383,880
78
$
54
56,324
225,975
282,299
-
$
(29)
204,608
21,367
225,975
Average
Cost*
Number of Shares
8,819
10,203
6,826
9,957
656
11,466
8,255
4,644
17,151
13,406
10,752
8,672
8,876
12,594
Financials (97.3%)
Bank of Montreal
Bank of Nova Scotia
Fairfax Financial Holdings Ltd.
Industrial Alliance Insurance & Financial Services Inc.
Total investments
Total net assets
79
$
$
Fair
Value
731,571 $
719,659
714,665
384,658
267,954
348,131
394,344
356,396
358,785
704,418
349,807
702,835
366,849
713,995
7,114,067
724,745
676,561
681,508
326,092
399,360
385,143
366,770
389,399
380,409
662,793
389,007
695,841
372,082
699,093
7,148,803
7,114,067
(4,524)
7,109,543
201,140
7,310,683 $
7,148,803
7,148,803
201,140
7,349,943
Marquest Dow Jones Canada High Dividend 50 Fund
(Corporate Class)
Statements of financial position (Expressed in Canadian Dollars)
As at,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Assets
Investments
Cash
$
1,437,430
82,789
6,416
1,526,635
$
$
$
564
25,000
114,576
140,140
$
$
$
2,707,319 $
50,203
13,269
2,770,791 $
2,874,535
691
17,679
2,892,905
Liabilities
Accrued liabilities
Net assets
$
$
$
888
2,316
3,204
$
754
2,243
2,997
1,386,495
$
2,767,587
$
2,889,908
$
$
$
1,069,042
129,317
188,136
$
$
$
2,299,437
194,092
274,058
$
$
$
2,434,142
208,356
247,410
$
$
$
7.97
7.83
7.83
$
$
$
11.57
11.78
10.77
$
$
$
10.22
10.30
9.85
Series A
Series F
Series T8
Series A
Series F
Series T8
Gerry L. Brockelsby
Director
80
Stephen J. Zamin
Director
Marquest Asset Management Inc
(Corporate Class)
Statements of comprehensive income (Expressed in Canadian Dollars)
2014
2013
(Note 14)
Income
Dividends
Interest
Other income
exchange gain
Total Income
$
90,808
10
9,045
359
7
$
146,770
36
3,408
23
418,125
(435,626)
82,728
58,870
368,170
577,277
38,814
143
2,251
154
19,863
10,206
41,035
37,206
1,657
580
151,909
(105,581)
46,328
48,618
659
60
31,351
16,058
18,788
35,138
4,428
939
156,039
(41,473)
114,566
Expenses (note 4)
Management fees
Withholding taxes
Interest expense
Operating expenses
Audit fees
Custodian fees
Legal fees
Total Expenses
$
36,400
$
462,711
$
$
$
44,724 $
(4,025) $
(4,299) $
387,473
30,868
44,370
$
$
$
0.29 $
(0.25) $
(0.18) $
1.77
2.19
1.64
Increase (decrease) in net assets attributable to holders of redeemable shares per series
Series A
Series F
Series T8
Increase (decrease) in net assets attributable to holders of redeemable shares per share
Series A
Series F
Series T8
81
(Corporate Class)
Statements of changes in net assets attributable to holders of redeemable shares (Expressed in Canadian Dollars)
Series F
Series A
2014
2013
2014
$ 2,434,142
44,724
387,473
(4,025)
30,868
(41,267)
(316,496)
(357,763)
(75,807)
(28,309)
(104,116)
(5,928)
(45,467)
(51,395)
(6,694)
(6,694)
52,662
285,456
(1,255,474)
(917,356)
166,418
93,376
(677,856)
(418,062)
25,907
(35,262)
(9,355)
71,751
4,950
(115,139)
(38,438)
$
194,092
2013
$ 2,299,437
$
208,356
Return of capital
$ 1,069,042
$ 2,299,437
$
129,317
Series T8*
2014
$
274,058
2013
$
247,410
$
194,092
Total
2014
2013
$ 2,767,587 $ 2,889,908
(4,299)
44,370
36,400
462,711
(6,850)
(52,540)
(59,390)
(9,226)
(12,391)
(21,617)
(54,045)
(414,503)
(468,548)
(91,727)
(40,700)
(132,427)
1,780
17,219
(41,232)
(22,233)
39,553
5,530
(41,188)
3,895
54,442
328,582
(1,331,968)
(948,944)
277,722
103,856
(834,183)
(452,605)
Return of capital
82
$
188,136
$
274,058
$ 1,386,495 $ 2,767,587
(Corporate Class)
Statements of cash flow (Expressed in Canadian Dollars)
2014
2013
Adjustments for:
exchange gain
Dividend receivable
Accrued liabilities
$
36,400
$
462,711
(418,125)
435,626
(1,009,436)
2,261,838
6,853
(324)
1,312,832
(58,870)
(368,170)
(166,308)
760,570
4,410
134
634,477
(27,706)
54,442
(1,306,968)
(1,280,232)
(28,498)
277,722
(834,183)
(584,959)
83
$
(14)
32,586
50,203
82,789 $
(6)
49,512
691
50,203
Average
Cost*
Number of Shares
4,066
866
821
349
374
1,548
279
620
2,857
958
1,812
1,745
670
969
807
1,797
468
597
544
750
334
433
Financials (49.8%)
AGF Management Ltd., Class B
Alaris Royalty Corp.
Allied Properties Real Estate Investment Trust
Bank of Montreal
Bank of Nova Scotia
Calloway Real Estate Investment Trust
CI Financial Corp.
Cominar Real Estate Investment Trust
Davis & Henderson Income Corp.
Dream Office Real Estate Investment Trust
First Capital Realty Inc.
Genworth MI Canada Inc.
Granite Real Estate Investment Trust
H&R Real Estate Investment Trust
IGM Financial Inc.
Laurentian Bank of Canada
Power Corp of Canada
924
766
1,106
2,578
2,065
1,112
1,093
2,116
969
787
10,031
997
390
2,526
Energy (22.5%)
Baytex Energy Corp.
Bonterra Energy Corp.
Calfrac Well Services Ltd.
Canadian Energy Services & Technology Corp.
Canadian Oil Sands Ltd.
Crescent Point Energy Corp.
Ensign Energy Services Inc.
Freehold Royalties Ltd.
Gibson Energy Inc.
Husky Energy Inc.
Lightstream Resources Ltd.
Mullen Group Ltd.
Vermilion Energy Inc.
Whitecap Resources Inc.
519
1,099
593
3,812
1,021
Cineplex Inc.
Corus Entertainment Inc.
Dorel Industries Inc., Class B
Reitmans Canada Ltd., Class A
Shaw Communications Inc., Class B
845
1,051
873
Industrial (7.6%)
AG Growth International Inc.
Russel Metals Inc.
WSP Global Inc.
1,463
528
BCE Inc.
Rogers Communications Inc., Class B
84
$
Fair
Value
46,802 $
25,600
25,132
25,454
24,228
38,446
26,911
13,581
46,731
17,304
56,129
32,192
12,745
37,292
17,899
39,779
20,132
27,465
20,323
18,238
20,207
22,405
614,995
34,520
30,622
30,738
28,681
24,800
42,260
27,855
20,020
53,169
35,130
45,572
32,562
24,777
39,981
27,107
39,049
21,673
29,832
26,895
23,820
26,800
24,036
689,899
43,444
36,877
13,446
9,471
44,777
45,705
17,123
43,005
27,703
20,247
92,875
20,785
18,224
31,727
465,409
17,852
31,904
11,071
16,370
21,517
29,924
11,149
40,458
26,347
21,643
11,937
21,246
22,230
28,897
312,545
14,243
24,849
21,411
43,512
20,643
124,658
23,267
25,222
23,732
29,390
32,008
133,619
30,318
27,457
31,078
88,853
47,751
27,221
30,433
105,405
70,584
21,182
91,766
77,948
23,850
101,798
Average
Cost*
Number of Shares
202
1,623
731
Material (6.8%)
Agrium Inc.
Norbord Inc.
Potash Corp of Saskatchewan Inc.
21,392 $
48,274
28,472
98,138
22,220
41,922
30,022
94,164
1,483,819
1,437,430
Total investments
Total net assets
1,483,819
(828)
1,482,991
(50,935)
1,432,056 $
1,437,430
1,437,430
(50,935)
1,386,495
85
$
Fair
Value
$
Marquest S&P/TSX Canadian Dividend Aristocrats Fund
(Corporate Class)
As at,
December 31,
2014
December 31,
2013
(Note 14)
January 1,
2013
(Note 14)
Assets
Current Assets
Investments
Cash
Receivable for redeemable shares issued
$
$
1,712,038
84,445
5,587
1,802,070
$
$
4,061,277 $
84,784
10,712
4,156,773 $
3,948,228
44,067
14,908
10,000
4,017,203
$
671
8,461
9,132
$
1,057
3,403
10,062
14,522
$
795
2,718
19,998
23,511
$
1,792,938
$
4,142,251
$
3,993,692
$
$
$
1,497,336
46,373
249,229
$
$
$
2,453,551
1,406,956
281,744
$
$
$
1,961,266
1,721,528
310,898
$
$
$
10.76
12.31
10.75
$
$
$
11.25
11.34
10.41
$
$
$
10.59
10.56
10.19
Liabilities
Accrued liabilities
Series A
Series F
Series T8
Series A
Series F
Series T8
Gerry L. Brockelsby
Director
86
Stephen J. Zamin
Director
(Corporate Class)
2014
2013
(Note 14)
Investment Income
Dividends
Other income
Total Income
(Note 13)
$
95,035
5,165
153
5
$
187,319
8,683
252
492,182
(212,450)
380,090
(9,257)
367,741
361
555,099
43,208
10
1,586
482
35,372
11,966
50,775
37,632
1,657
1,034
183,722
(132,493)
51,229
57,837
4,660
112
65,885
16,058
19,988
35,138
4,428
2,161
206,267
(61,374)
144,893
Expenses (note 4)
Management fees
Withholding taxes
Interest expense
Operating expenses
Audit fees
Custodian fees
Legal fees
Total Expenses
$
328,861
$
410,206
$
$
$
232,754
65,464
30,643
$
$
$
219,863
163,149
27,194
$
$
$
1.35
2.04
1.19
$
$
$
0.98
1.07
0.88
Series A
Series F
Series T8
Series A
Series F
Series T8
87
(Corporate Class)
Series A
2014
Series F
2013
2014
2013
$ 2,453,551
$ 1,961,266
$ 1,406,956
$ 1,721,528
232,754
219,863
65,464
163,149
(29,389)
(204,219)
(233,608)
(24,971)
(69,083)
(94,054)
(1,495)
(10,375)
(11,870)
(27,055)
(36,276)
(63,331)
111,437
223,816
(1,290,614)
(955,361)
853,277
92,056
(578,857)
366,476
14,389
5,220
(1,433,786)
(1,414,177)
279,603
38,568
(732,561)
(414,390)
Return of capital
$ 1,497,336
$ 2,453,551
$
46,373
Total
Series T8
2014
$
281,744
2013
$
$ 1,406,956
2014
2013
310,898
$ 4,142,251
$ 3,993,692
30,643
27,194
328,861
410,206
(2,583)
(17,935)
(20,518)
(2,281)
(22,457)
(24,738)
(33,467)
(232,529)
(265,996)
(54,307)
(127,816)
(182,123)
33,918
11,827
(88,385)
(42,640)
70,124
13,110
(114,844)
(31,610)
159,744
240,863
(2,812,785)
(2,412,178)
1,203,004
143,734
(1,426,262)
(79,524)
Return of capital
88
$
249,229
$
281,744
$ 1,792,938
$ 4,142,251
(Corporate Class)
For the years ended December 31
2014
2013
Adjustments for:
Dividend receivable
Accrued liabilities
$
328,861
$
410,206
(492,182)
212,450
(548,758)
3,177,752
5,125
(386)
2,682,862
9,257
(367,741)
(2,445,155)
2,690,648
4,196
262
301,673
(20,075)
159,744
(2,822,847)
(2,683,178)
(37,704)
1,213,004
(1,436,198)
(260,898)
Cash at beginning of year
Cash at end of year
89
$
(23)
(339)
84,784
84,445 $
(58)
40,717
44,067
84,784
Average
Cost*
Number of Shares
3,183
235
1,456
28
152
90
4,078
608
185
890
305
2,581
Industrial (17.0%)
Bird Construction Inc.
Boyd Group Income Fund
CAE Inc.
Canadian Pacific Railway Ltd.
Canadian National Railway Co.
CCL Industries Inc., Class B
Exchange Income Corp.
Finning International Inc.
Methanex Corp.
Ritchie Bros Auctioneers Inc.
SNC-Lavalin Group Inc.
Transcontinental Inc., Class A
6,636
476
466
911
732
244
745
342
806
540
Financials (16.9%)
AGF Management Ltd., Class B
Bank of Nova Scotia
Genworth MI Canada Inc.
Gluskin Sheff + Associates Inc.
Home Capital Group Inc.
IGM Financial Inc.
Laurentian Bank of Canada
148
854
296
267
1,731
950
125
1,373
791
690
Canadian Tire Corp Ltd., Class A
Cineplex Inc.
Cogeco Cable Inc.
Cogeco Inc.
Corus Entertainment Inc., Class B
Dorel Industries Inc., Class B
Restaurant Brands International Inc.
Shaw Communications Inc., Class B
Uni-Select Inc.
859
397
437
1,244
1,799
153
261
545
172
549
519
Energy (12.4%)
Cameco Corp.
Canadian Natural Resources Ltd.
Enbridge Inc.
Enbridge Income Fund Holdings Inc.
Ensign Energy Services Inc.
Imperial Oil Ltd.
Keyera Corp.
Pason Systems Inc.
ShawCor Ltd.
Suncor Energy Inc.
TransCanada Corp.
90
$
Fair
Value
42,447 $
7,619
16,768
2,418
6,814
3,880
96,284
15,120
8,469
18,971
12,478
29,250
260,518
37,973
11,186
21,956
6,265
12,163
11,328
94,610
15,340
9,873
27,786
13,515
42,741
304,736
76,502
26,155
13,235
32,460
18,920
6,240
32,364
21,418
36,174
21,983
285,451
56,340
31,564
15,262
33,689
20,269
11,710
34,501
28,677
40,276
29,975
302,263
10,769
27,649
12,936
12,962
40,250
31,834
5,206
29,010
24,184
19,838
214,638
18,166
38,285
21,205
16,314
39,726
38,019
5,688
43,044
37,074
21,114
278,635
17,934
12,558
17,549
28,999
27,619
6,678
12,112
8,262
6,228
18,569
23,156
179,664
16,364
14,260
26,106
50,195
18,350
7,658
21,159
11,930
7,293
20,258
29,635
223,208
Average
Cost*
Number of Shares
2,411
57
287
2,033
10,903
377
646
1,183
1,052
Computer Modelling Group Ltd.
Constellation Software Inc.
Enghouse Systems Limited
Evertz Technologies Ltd.
Wi-Lan Inc.
24,183 $
6,087
9,439
32,906
38,718
111,333
28,787
19,690
11,908
35,781
37,942
134,108
15,094
22,372
38,730
34,503
110,699
17,968
26,428
45,711
40,986
131,093
45,252
36,653
29,719
111,624
52,481
39,388
37,952
129,821
11,153
19,878
13,298
9,980
11,855
66,164
15,859
19,578
20,806
15,749
20,496
92,488
28,794
49,420
78,214
32,557
41,811
74,368
10,513
26,493
6,654
43,660
12,929
18,403
9,986
41,318
1,461,965
1,712,038
Total investments
Total net assets
1,461,965
(962)
1,461,003
80,900
1,541,903 $
1,712,038
1,712,038
80,900
1,792,938
Utilities (7.3%)
Atco Ltd., Class I
Canadian Utilities Ltd., Class A
Emera Inc.
Fortis Inc.
985
872
906
BCE Inc.
Rogers Communications Inc., Class B
TELUS Corp.
181
864
223
451
724
Empire Co., Ltd., Class A
High Liner Foods Incorporated
Metro Inc., Class A
Saputo Inc.
The Jean Coutu Group PJC Inc., Class A
711
1,759
Real Estate Investment Trusts (4.1%)
Canadian Real Estate Investment Trust
Northern Property Real Estate Investment Trust
226
3,223
305
Materials (2.3%)
Franco-Nevada Corporation
Major Drilling Group International
Stella-Jones Inc.
91
$
Fair
Value
$
Marquest Group of Funds
Notes to Financial Statements (Expressed in Canadian Dollars)
For the years ended December 31, 2014 and December 31, 2013
1. THE FUNDS
The Funds are comprised of 8 mutual funds established under the laws of Ontario by declarations of trusts as amended and restated from time to time. Matrix Corporate Class
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 8 classes of mutual fund shares. The Funds are referred to individually as a “Fund” and collectively as the “Funds”. The Fund’s 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 and fixed incomes, Canadian short-term
government debt securities as well as derivatives. Most of the Funds’ investments are listed and traded on stock exchange markets in Canada and the U.S. although the Funds’
also invests in private equity securities. On September 16, 2013 Marquest Asset Management Inc. became the manager (‘the Manager”) of the Funds. The Funds’ investment
activities and administrator is managed by the Manager. The Funds’ custodian is RBC Investor and Treasury Services.
On November 11, 2013 the name of the Fund family was changed from the Matrix Funds to the Marquest Group of Funds. The Funds active classes launch dates were as
follows:
Name of Fund
Classes AA
and F-AA
Class A
Class F
10-Aug-87
17-Jul-14
-
4-Jun-98
7-Feb-06
-
24-Jun-03
7-Feb-06
28-May-13
27-Sep-04
7-Feb-06
-
24-Jun-02
7-Feb-06
-
Marquest American Dividend Growth
Fund
31-Oct-06
7-Sep-06
17-Jul-14
17-Jul-14
-
17-Jul-14
17-Jul-14
-
Marquest Covered Call Banks Plus Fund
During the year the Marquest Tax Deferred Income Fund changed its name to the Marquest Global Balanced Income Fund. As of July 17th 2014, Class I, Class T8 of the Funds’
were no longer available for subscriptions.
8
The Corporation’s class active series launch dates were as follows:
Name of Class
Series A
Series F
Series T8
25-Jun-04
-
-
25-Jun-04
1-Jan-11
6-Dec-08
25-Jun-04
22-Jul-10
-
22-Jul-10
22-Jul-11
-
30-Jun-11
30-Jun-11
-
(Corporate Class)
10-Nov-11
1-Dec-11
10-Nov-11
Marquest S&P/TSX Canadian Dividend Aristocrats
Fund (Corporate Class)
10-Nov-11
10-Nov-11
2-Dec-11
(Corporate Class)
10-Nov-11
10-Nov-11
-
(Corporate Class)
As of July 17th 2014, Marquest Dow Jones Canada High Dividend 50 Fund (Corporate Class), Marquest Canadian Balanced Fund (Corporate Class) and Marquest S&P/TSX
Canadian Dividend Aristocrats Fund (Corporate Class) were no longer available for subscriptions.
These financial statements are presented in Canadian dollars (CAD). These financial statements were authorized for issue by the Manager on March 31, 2015.
2. SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis of Preparation and Adoption of IFRS
These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) applicable to the preparation of annual
financial statements as published by the International Accounting Standards Board (IASB) and interpretations of the IFRS Interpretations Committee. The Fund
adopted IFRS effective January 1, 2014, with a transition date of January 1, 2013 and had previously presented its financial statements in accordance with Canadian
generally accepted accounting principles as defined in Part V of the CICA Handbook. The Fund has consistently applied the same accounting policies in its opening
IFRS statement of financial position at January 1, 2013 and throughout all periods presented, as if these policies had always been in effect. Note 14 discloses the
impact of the transition to IFRS on the Funds reported statement of financial position, financial performance and cash flows, including the nature and effect of
significant changes in accounting policies from those used in the Fund’s financial statements for the year ended December 31, 2013.
(b)
Significant accounting judgments, estimates and assumptions
The preparation of these financial statements requires the Fund Manager to make certain estimates, judgments and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these
estimates. These financial statements include estimates which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the financial
statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the
estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future
economic
conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
92
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
(b)
Significant accounting judgments, estimates and assumptions (continued)
Critical accounting estimates
The Funds holds financial instruments that are not quoted in active markets, including derivatives. Fair values may be determined using reputable pricing vendors or
indicate prices from market makers/brokers. Broker quotes as obtained from pricing sources may be indicative and not executable or binding. Securities not listed
upon a recognized public stock exchange, or securities for which a last sale or closing price are unavailable or securities for which market quotations are, in the
Manager’s opinion, inaccurate, unreliable or not reflective of all available material information, are valued at their estimated fair value, determined by using appropriate
and accepted industry valuation techniques including valuation models. The estimated fair value of a security determined using valuation models requires the use of
inputs and assumptions based on observable market data including volatility and other applicable rates or prices. The estimates include consideration of liquidity and
model inputs related to items such as credit risk (both own and counterparty’s) and volatility. Changes in assumption about these factors could affect the reported fair
value of financial instruments and the level where the instruments are disclosed in the fair value hierarchy. To assess the significance, the Funds performs sensitivity
analysis of these estimates to the fair value of the fund holdings (see Note 12(a)).
(c)
Functional currency
The Funds’ subscriptions and redemptions are denominated in Canadian dollars (CAD), which is also its functional and presentation currency.
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into Canadian dollars at the prevailing rate of exchange on each
valuation date. Purchases and sales of investments, income and expenses are translated at the rate of exchange prevailing on the respective dates of such
transactions. Foreign exchange gains and losses on the sale of investments are included in "Net realized gain on sale of investments including foreign exchange
gain”. Unrealized foreign exchange gains and losses are included in "Net change in unrealized appreciation (depreciation) in value of investments”.
(d)
Financial instruments
The Fund recognizes a financial asset or a financial liability when it becomes a party to the contractual provisions of the instrument. Purchases or sales of financial
assets that require delivery of assets within the time frame generally established by regulation or convention in the market place (regular way trades) are recognized
on the trade date, i.e., the date that the Fund commits to purchase or sell the asset.
The Fund classifies its financial assets and financial liabilities at initial recognition into the following categories, in accordance with IAS 39 Financial Instruments:
Recognition and Measurement.
Financial assets and liabilities at fair value through profit or loss
The category of financial assets and liabilities at fair value through the profit or loss is sub-divided into:
• Financial assets and liabilities held for trading: financial assets are classified as held for trading if they are acquired for the purpose of selling and/or repurchasing in
the near term. These assets are acquired principally for the purpose of generating a profit from short-term fluctuations in price. All derivatives are classified as held for
trading. The Fund’s policy is not to apply hedge accounting.
• Financial instruments designated as at fair value through profit or loss upon initial recognition: these include the portfolio’s investments. Financial assets and
liabilities are designated upon initial recognition on the basis that they are part of a group of financial assets which are managed and have their performance evaluated
on a fair value basis, in accordance with risk management and investment strategies of the Fund, as set out in the Fund’s simplified prospectus.
Financial assets and financial liabilities at fair value through profit or loss are recorded in the statement of financial position at fair value. Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of
financial assets and liabilities traded in active markets are based on quoted market prices at the close of trading on the reporting date. In circumstances where the
close price is not within the bid-ask spread, management will determine the point within the bid-ask spread that is most representative of fair value. All transaction
costs for such instruments are recognised directly in profit or loss.
For all other financial instruments not traded in an active market, the fair value is determined by using valuation techniques deemed to be appropriate in the
circumstances. Valuation techniques include discounted cash flow analysis and option pricing models, which considers factors such as the market value of the
underlying security, strike price, volatility and terms of the warrants or options.
Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss are measured at fair value. Gains and losses arising from
changes in the fair value of the ‘financial assets or financial liabilities at fair value through profit or loss’ category are presented in the statement of comprehensive
income within other net changes in unrealized appreciation (depreciation) in value of investments in the period in which they arise. Interest and dividend earned or
paid on these instruments are recorded separately in interest revenue or expense and dividend revenue or expense.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Financial assets classified as
loans and receivables are measured at amortized cost. Transaction costs are included in the initial carrying amount of the asset.
Other financial liabilities
This category includes all financial liabilities, other than those classified at fair value through profit or loss. Financial liabilities classified as other financial liabilities are
subsequently measured at amortized cost. Transaction costs are included in the initial carrying amount of the liability.
93
(d)
Financial instruments (continued)
Classification of its financial instruments is as follows:
Investments
FVTPL
Futures contract
FVTPL
Forward agreement
FVTPL
FVTPL
Cash
Interest receivable
Receivable for redeemable shares/units issued
Receivable from other corporate classes
Income receivable
Loan and receivables
Accrued liabilities
Payable for redeemable shares/units redeemed
Payable for investments securities purchased
Payable to other corporate class
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the fair value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The breakdown of the Fund into the three-level hierarchy is provided in Note 12 (a).
Financial assets are de-recognized when the rights to receive cash flows from the investments have expired or the Fund has transferred substantially all risks and
rewards of ownership. The Fund derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. On de-recognition of a
financial asset, the difference between the carrying amount of the asset and the consideration received is recognized in statement of comprehensive income.
A financial asset not classified at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence of impairment. A
financial asset or a group of financial assets is ‘impaired’ if there is objective evidence of impairment as a result of one or more events that occurred after the initial
recognition of the asset(s) and that loss event(s) had an impact on the estimated future cash flows of that asset(s) that can be estimated reliably.
Objective evidence that financial assets are impaired includes significant financial difficulty of the borrower or issuer, default or delinquency by a borrower,
restructuring of the amount due on terms that the Fund would not otherwise consider, indications that a borrower or issuer will enter bankruptcy, or adverse changes in
the payment status of the borrowers.
An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount and the present value of the
estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognized in profit or loss and reflected in an allowance account
against receivables. If an event occurring after the impairment was recognized causes the amount of impairment loss to decrease, then the decrease in impairment
loss is reversed through profit or loss to the extent that the carrying amount of the financial asset at the date of impairment reversed does not exceed the carrying
amount that would have been determined if no impairment had been recognized.
94
(e)
Cash
Cash in the statement of financial position comprises cash on hand and short-term deposits in banks that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value, with original maturities of three months or less.
Short-term investments that are not held for the purpose of meeting short-term cash commitments and restricted margin accounts are not considered as ‘cash’.
For the purpose of the statement of cash flows, cash consist of cash as defined above, net of outstanding bank overdrafts when applicable.
(f)
Redeemable participating shares/units
Redeemable shares/units are redeemable at the share/unitholder’s option and are classified as other financial liabilities. They are measured at the redeemable
amount.
Net asset value per unit of each series/class is calculated daily (unless such day is not a business day, in which case the last business day prior to such day is used)
(each a "valuation day") by dividing the net asset value of each series/class by the outstanding units of that series/class. The net asset value of each series/class is
computed by calculating the fair value of the assets less liabilities of the series/class.
(g)
Valuation of Fund units/shares
The value at which units/shares are issued or redeemed is the Net Asset Value per unit. Net asset value per unit/share for each class/series is calculated at the end of
each day on which the Funds’ Manager is open for business (“valuation day’) by dividing the net asset value (“Transactional NAV”) of each class/series by its
outstanding units/shares. The net asset value of each class/series is computed by calculating the value of the class’/series’ proportionate share of a fund’s assets less
the class’/series’ proportionate share of the fund’s common liabilities and less class-specific liabilities. Expenses directly attributable to a class/series are charged to
that class while common fund expenses are allocated to each class/series in a reasonable manner as determined by the Manager. Other income and realized and
unrealized gains and losses are allocated to each class/series of a fund based on that class’/series’ prorata share of total net asset value of that fund. Amounts
received on the issuance of units/shares and amounts paid on the redemption of units/shares are included on the statement of changes in financial position.
(h)
Increase in net assets attributable to holders of redeemable units/shares per unit
Increase in net assets attributable to holders of redeemable units/shares per unit is based on the increase in net assets attributable to each series of the Fund divided
by the weighted average number of units of that series outstanding during the year.
(i)
Investment income recognition
Dividend income
Dividend income is recognized in profit or loss on the date on which the right to receive payment is established. For quoted equity securities, this is usually the exdividend date. For unquoted equity securities, this is usually the date on which the shareholders approve the payment of a dividend.
Interest for distribution purposes as disclosed in statement of comprehensive income on debt securities at fair value through profit or loss is recognized on accrual
basis and represents the coupon interest received accounted for on an accrual basis.
Distributions from investment trust
Distributions from income trusts, mutual funds and REIT’s are recognized on the ex-distribution date and are recorded as income, capital gains or a return of capital,
based on best information available to the Manager. Distributions from investment trusts that are treated as a return of capital for income tax purposes reduce the
average cost of the underlying investment.
Realized and unrealized gains and losses
Realized gains and losses on investments, and unrealized appreciation and depreciation on investments, are calculated on an average cost basis.
(j)
Valuation of investments
I.
II.
III.
IV.
(k)
Securities listed upon a recognized public stock exchange are valued at their close prices on the valuation date. In circumstances where the close price is not
within the bid-ask spread, management will determine the point within the bid-ask spread that is most representative of fair value.
Securities not listed upon a recognized public stock exchange, or securities for which a close price, last sale or closing price are unavailable or securities for
which market quotations are, in the Manager’s opinion, inaccurate, unreliable or not reflective of all available material information, are valued at their estimated
fair value, determined by using appropriate and accepted industry valuation techniques including valuation models. The estimated fair value of a security
determined using valuation models requires the use of inputs and assumptions based on observable market data including volatility and other applicable rates or
prices. In limited circumstances, the estimated fair value of a security may be determined using valuation techniques that are not supported by observable
market data.
Short-term notes, treasury bills and bonds are valued at the average close quotations from recognized investment dealers.
Warrants which do not have a quoted close price are carried at the difference between the exercise price and the quoted close price of the underlying security if
the exercise price is lower than the quoted close price.
Investment transactions
Investment transactions are accounted for on the date the order to buy or sell is executed. Realized gains or losses from investment transactions and unrealized
appreciation or depreciation are calculated on an average cost basis.
95
(l)
Derivative contracts
The fair value of futures contracts fluctuates daily, and cash settlements made daily by the Funds are equal to the unrealized gains or losses on a “mark to market”
basis. The unrealized gains or losses are recorded and reported as such until the Funds close out the contract or the contract expires. Margin paid or deposited in
respect of futures contracts is reflected in the Statements of financial position. Any change in the variation margin requirement is settled daily.
The fair value of the forward agreement is based on an amount equal to the gain or loss that would be realized if the position was to be closed out.
Realized gains and losses on the settlement of derivative contracts, (i.e. used to gain exposure to a particular market, security or currency) are included in income
under “Income from derivatives”, in the Statements of comprehensive income. Unrealized gains and losses are included in “net change in unrealized appreciation
(depreciation) in value of investments”, in the Statements of comprehensive income.
(m)
Options
Certain Funds may write or purchase call and put options on futures and swaps. The premium received from writing a call or put option is recorded as a liability in the
Statements of financial position. The premium paid from purchasing a call or put option is recorded as an asset in the Statements of financial position. The premium is
valued at an amount equal to the fair value of the option that would have the effect of closing the position. The difference between the premium and the fair value is
shown as net change in unrealized appreciation (depreciation) in value of investments in the Statements of comprehensive income.
When a written option expires, the Fund will realize a gain equal to the premium received. When a written option is closed, the Fund will realize a gain or loss equal to
the difference between the proceeds and the premium received. When a written call option is exercised, the premium received is added to the proceeds from the sale
of the underlying investment to determine the realized gain or loss.
When a written put option is exercised, the premium received will reduce the cost of the investment the Fund purchased upon exercise of the option. When a
purchased option expires, the Fund will realize a loss equal to the premium paid. When a purchased option is closed, the gain or loss the Fund will realize will be the
difference between the proceeds and the premium paid.
When a purchased put option is exercised, the premium paid is deducted from the proceeds from the sale of the underlying investments to determine the realized gain
or loss. When a purchased call option is exercised, the premium received will increase the cost of the investment the Fund purchased upon exercise of the option.
Payments received or paid upon early termination are recorded as “Income from derivatives” in the Statements of comprehensive income.
The gain or loss that the Fund realizes when a written or purchased option is expired, closed or exercised is recorded as “Income from derivatives” in the Statements
of comprehensive income
(n)
Distributions to unitholders/shareholders
Distributions are rmade/calculated by the Funds on the business day immediately following record date.
(o)
Transaction costs
Transaction costs are expensed and are included in “Transaction costs” in the of Statements of comprehensive income. Transaction costs are incremental costs that
are directly attributable to the acquisition, issue or disposal of an investment, which include fees and commissions paid to agents, advisors, brokers, and dealers,
levies by regulatory agencies and securities exchanges, and transfer taxes and duties.
96
3. REDEEMABLE PARTICIPATING UNITS / SHARES
The Funds are authorized to issue an unlimited number of units/shares as follows:
Name of Fund
Unit Types Available*
A,F
A, F
A, F, AA, F-AA
A, F
A, F
A, F
A, F
A, F
Name of Series
Series Available*
A,F
A, F
A, F
A, F
A, F
As of July 17, 2014, Marquest Canadian Balanced Fund, Marquest Dow Jones Canada High Dividend 50 Fund and Marquest S&P/TSX Canadian Dividend Aristocrats are no
longer available for sale. Also as of July 17, 2014 the I, O, T8, T-F8 units/shares are no longer offered.
During the years ended, December 31, 2014 and December 31, 2013 the following units/shares were issued (including shares issued on fund mergers and transfers from other
classes) and redeemed (including transfers to other classes):
December 31, 2014
Outstanding,
Beginning of Year
Units/Shares
Issued
Units/Shares
Reinvested
Units/Shares
Redeemed
Outstanding,
Ending of Year
Class A
438,780
291,502
2,673
(420,473)
312,482
Series A
115,441
75,292
-
(62,395)
128,338
Series A
Series F
Series T8
155,106
4,158
49,013
8,683
-
205
(57,958)
(4,158)
(25,903)
105,831
23,315
1,254,087
177,478
46,292
1,847
26,918
7,007
(610,158)
(39,367)
717,139
146,965
36,314,171
338,915
1,204,643
4,288
129,190
10,525,435
307,486
143,484
13,805
10,405
3,055,029
15,063
112,862
628
1,996
(8,806,715)
(203,695)
(607,769)
(7,183)
(141,591)
41,087,920
457,769
853,220
11,538
-
Series A
Series F
Series T8
Series T-F8
91,469
5,136
148,106
1,314
130,049
792
908
-
8,606
734
-
(71,425)
(3,425)
(149,748)
(1,314)
158,699
2,503
-
Series A
Series F
Series T8
198,803
16,474
25,443
4,472
166
33,510
3,126
2,027
(102,675)
(3,091)
(3,614)
134,109
16,509
24,022
Class A
Class F
Class A
Class AA
Class F
Class F-AA
Class T8
97
3. REDEEMABLE PARTICIPATING UNITS / SHARES (continued)
December 31, 2014
Outstanding,
Beginning of Year
Units/Shares
Issued
Units/Shares
Reinvested
Units/Shares
Redeemed
Outstanding,
Ending of Year
Series A
Series F
Series T8
218,188
124,075
27,076
9,696
1,249
3,193
20,297
449
1,102
(109,011)
(122,006)
(8,183)
139,170
3,767
23,188
Class A
Class F
Class T8
673,233
77,733
14,381
305,552
17,362
-
14,506
1,806
140
(195,950)
(4,465)
(14,521)
797,341
92,436
-
-
86,614
16,243
594
74
(15,616)
(15,053)
71,592
1,264
203,761
44,502
79,209
84,407
5,969
3,224
27
4
1,936
(97,151)
(16,440)
(84,369)
191,044
34,035
-
-
34,461
29,783
287
246
(6,114)
(15,285)
28,634
14,744
Series A
Series F
521,270
20,498
190,507
24,008
67,329
3,319
(113,883)
(11,685)
665,223
36,140
Class A
Class F
436,470
4,078
10,714
102
-
(181,290)
(3,055)
265,894
1,125
Class A
Class F
Class I
114,855
885,456
240
15,238
934,948
-
-
(47,430)
(1,219,806)
(240)
82,663
600,598
-
2,222,105
8,046
1,213,161
2,582
-
(1,767,586)
(1,453)
1,667,680
9,175
Series A
Series F
Series A
Series F
Series T8
Series A
Series F
Series A
Series F
98
3. REDEEMABLE PARTICIPATING UNITS / SHARES (continued)
December 31, 2013
Outstanding,
Beginning of Year
Units/Shares
Issued
Units/Shares
Reinvested
Units/Shares
Redeemed
Outstanding,
Ending of Year
Class A
638,149
295,174
3,815
(498,358)
438,780
Series A
150,324
9,291
-
(44,174)
115,441
Series A
Series F
Series T8
173,351
27,396
58,909
42,134
1,980
312
(60,379)
(23,238)
(12,188)
155,106
4,158
49,013
1,754,079
233,386
116,307
22,596
39,967
10,268
(656,266)
(88,772)
1,254,087
177,478
34,979,740
1,561,908
60,942
7,980,428
351,211
367,076
4,233
81,635
3,161,115
3,991
149,280
55
1,333
(9,807,112)
(16,287)
(873,621)
(14,720)
36,314,171
338,915
1,204,643
4,288
129,190
Series A
Series F
Series T8
Series T-F8
101,491
144,770
151,731
36,816
45,129
2,625
11,730
56,171
1,542
75
(55,151)
(142,259)
(16,897)
(91,748)
91,469
5,136
148,106
1,314
Series A
Series F
Series T8
238,064
20,238
25,110
15,824
6,614
3,835
8,713
456
544
(63,798)
(10,834)
(4,046)
198,803
16,474
25,443
Series A
Series F
Series T8
185,274
162,970
30,515
77,712
25,618
6,634
8,470
3,540
1,277
(53,268)
(68,053)
(11,350)
218,188
124,075
27,076
Marquest Global Balanced Fund Fund (formerly Marquest Tax Deferred Income Fund)
Class A
633,810
Class F
76,999
Class T8
12,910
164,740
229
1,471
14,601
1,423
-
(139,918)
(918)
-
673,233
77,733
14,381
Series A
Series F
Series T8
54,835
7,249
29,945
196,770
44,220
53,217
2,939
(47,844)
(6,967)
(6,892)
203,761
44,502
79,209
Series A
Series F
350,174
8,543
189,852
12,374
52,447
1,751
(71,203)
(2,170)
521,270
20,498
Class A
Class F
704,563
11,553
21,488
1,207
-
(289,581)
(8,682)
436,470
4,078
Class A
Class F
Class I
166,202
900,992
95
9,303
1,694,250
145
-
(60,650)
(1,709,786)
-
114,855
885,456
240
2,096,073
7,944
2,675,096
5,737
-
(2,549,064)
(5,635)
2,222,105
8,046
Class A
Class F
Class A
Class AA
Class F
Class F-AA
Class T8
Series A
Series F
99
4. EXPENSES AND RELATED PARTY TRANSACTIONS
The following summarizes the annual management fee for the Funds:
Marquest S&P/TSX Canadian Divident Aristocrats Fund (Corporate Class)
(formerly Marquest Tax Deferred Income Fund)
Class A
0.50%
Class F
Series A
Series F
Series A
Series F
Series T8
Class A
Class F
Class A
Class AA
Class F
Class F-AA
Class T8
Series A
Series F
Series T8
Series T-F8
Series A
Series F
Series T8
Series A
Series F
Series T8
Class A
Class F
Class T8
Class A
Class F
Series A
Series F
Series T8
Series A
Series F
Series A
Series F
Class A
Class F
Class A
Class F
Class I
Series A
Series F
1.00%
0.60%
0.30%
1.75%
0.75%
1.75%
1.00%
0.40%
2.00%
2.00%
0.75%
0.75%
2.00%
2.00%
0.75%
2.00%
0.75%
1.65%
0.65%
1.65%
1.60%
0.60%
1.60%
2.10%
1.10%
2.10%
2.00%
1.00%
2.00%
1.00%
2.00%
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
per annum on average net asset
value
(As negotiated by the Manager with each investor)
As the Manager and Trustee of the 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), Marquest Canadian Balanced 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 year ended December 31, 2014, the Manager chose to charge Marquest Money Market Fund and Marquest Short Term Income Fund (Corporate Class) a
0.30% management fee (2013 – 0.30%).
The Funds bear all of their own expenses relating to their operation and the carrying on of their businesses. These items include legal and audit fees, interest, capital taxes and
administrative costs relating to the issue and redemption of units/shares as well as the cost of financial and other reports and compliance with all applicable laws, regulations and
policies. Brokerage commissions paid on securities transactions are not considered to be part of total expenses.
The Manager has, at its discretion, agreed to absorb certain expenses associated with some of the Funds. The absorbed 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.
100
4. EXPENSES AND RELATED PARTY TRANSACTIONS (Continued)
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 Statement/s 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. HST rate are determined for expenses attributable to a Fund’s individual class/series, were applicable.
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 December 31, 2014, December 31, 2013 and January 1, 2013, held by the Marquest Global Balanced Fund:
As of December 31, 2014
Future Security
IMM Canadian Dollar Future
Local
Currency
Number of Contracts
Bought (Sold)
USD
25
Local
Currency
Number of Contracts
Bought (Sold)
Delivery
Price
$
0.86445
Maturity Date
Notional Cost Current Value Unrealized loss Unrealized loss
U$
U$
U$
C$
11,875
2,161,125
2,149,250
13,754
15-Mar
Future Security
USD
5
Local
Currency
Number of Contracts
Bought (Sold)
Delivery
Price
$
0.9649
Maturity Date
U$
U$
U$
C$
12,850
482,450
469,600
13,655
14-Mar
As of January 1, 2013
Future Security
USD
5
Delivery
Price
$
1.0262
Maturity Date
U$
U$
U$
C$
11,250
513,100
501,850
11,203
13-Mar
6. BROKERAGE COMMISSIONS ON SECURITIES TRANSACTIONS
No soft dollar services were included in the Transaction costs on the Statements of comprehensive income.
101
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 may comprise cash and/or securities.
The aggregate fair value of securities loaned and collateral held under securities lending transactions at December 31, 2014, December 31, 2013 and January 1, 2013 are as
follows:
December 31, 2014
December 31, 2013
Marquest Canadian Resources Fund
January 1, 2013
Marquest Canadian Resources Fund
102
$
$
$
Outstanding loans
949,250 $
499,639
571,850
32,371,762
690,775
421,104
1,396,330
342,414
408,333
89,346
Collateral amount
996,715
524,624
600,444
33,990,361
725,321
442,166
1,466,151
359,536
428,751
93,813
Outstanding loans
300,669 $
73,067,029
208,240
416,804
Collateral amount
315,704
76,720,388
218,654
437,645
Outstanding loans
273,941 $
62,943,158
196,343
96,136
6,570
2,046,353
Collateral amount
287,639
66,090,325
206,161
100,944
6,899
2,148,679
8. TAXATION AND DISTRIBUTION
Taxation of Open - End Mutual Fund Trusts
Each of the Funds, other than the Corporation, 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 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. The non-capital losses for carry forward are as follows:
Year
Incurred
2006
2007
2008
2009
2010
2011
2012
2013
2014
Year
Expires
2026
2027
2028
2029
2030
2031
2032
2033
2034
Marquest
Small Companies
Fund
$
505,842
221,620
388,192
185,120
110,710
$
1,411,484
Marquest
Canadian Resource
Fund
$
3,078
261,646
204,708
81,004
$
550,436
Marquest
Global Balanced
Fund
$
28,829
432,024
238,976
196,659
83,192
$
979,680
In addition, certain Funds have net capital losses as follows:
Marquest
Marquest
Marquest
Marquest
103
Global Balanced Fund
Small Companies Fund
Canadian Resource Fund
Monthly Pay Fund
$
1,227,721
6,691,676
9,060,818
1,649,440
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
Class
Merger Date
Continuing Fund
Matrix Explorer 2012 Short Duration FT National Class
26/04/2013
Matrix Explorer 2012 Short Duration FT Quebec Class
26/04/2013
Matrix Explorer 2011 - I FT National Class
25/01/2013
Matrix Explorer 2011 - I FT Quebec Class
25/01/2013
Matrix Explorer 2011 - II FT National Class
25/01/2013
Matrix Explorer 2011 - II FT Quebec Class
25/01/2013
Matrix 2012 - I FT National Class
14/03/2014
Matrix 2012 - I FT Québec Class
14/03/2014
Class
Marquest International Balanced Fund
A
05/09/2014
F
05/09/2014
A
F
T8
05/09/2014
A
Marquest International Income Balanced Fund
A
05/09/2014
A
Marquest International Income Balanced Fund
F
05/09/2014
F
T8
05/09/2014
T8
05/09/2014
A
T-F8
05/09/2014
F
(Corporate Class)
T8
05/09/2014
(Corporate Class)
A
T8
05/09/2014
A
104
AA
9. FUND MERGERS (continued)
Continuing Fund
Class
Net Assets Acquired
Shares Issued
Exchange Ratio
4,757,677
752,797
0.720046
5,853,535
926,192
0.617462
927,619
119,053
0.285659
1,638,205
210,152
0.250776
584,799
74,982
0.417032
5,414,480
578,794
0.447924
1,179,589
214,471
0.868200
5,451,548
991,191
0.798218
A
3,075,223
171,704
0.475034
F
92,489
4,638
0.447544
A
55,214
3,083
0.610207
A
1,077,292
60,150
0.567536
23,489
1,178
0.525519
AA
1,466,154
84,700
0.642533
A
1,370,635
111,163
0.843615
F
10,139
791
0.853017
A
681,138
44,115
0.748627
A
147,739
8,249
0.638309
F
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 December 31, 2014, December 31, 2013 and
January 1, 2013 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 year. 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
105
12. FINANCIAL INSTRUMENTS
(a) Fair Value
Financial instruments of the Funds include cash, income receivable, dividends receivable, 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, futures contract and Forward Agreement are carried at their fair
values as described in note 2.
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
December 31, 2014, December 31, 2013 and January 1, 2013
-
Level 2
$
3,099,611
-
1,598,674
Level 1
$
1,818,904
196,432,169
Level 3
$
-
Totals
$
3,099,611
-
1,598,674
-
1,818,904
4,015,930
-
4,015,930
998,190
-
197,430,359
-
1,603,422
-
-
1,603,422
1,437,430
-
-
1,437,430
1,712,038
-
-
1,712,038
-
15,526,071
10,764,909
4,761,162
708,663
-
-
708,663
3,631,030
-
-
3,631,030
393,238
-
-
393,238
7,148,803
-
-
7,148,803
1,430,308
46,366
221,163
1,697,837
2,126,793
13
397,297
2,524,103
3,024,145
106
-
-
3,024,145
12. FINANCIAL INSTRUMENTS (continued)
Level 1
$
-
Level 2
$
4,341,951
-
1,454,732
2,795,608
204,911,504
Level 3
$
-
Totals
$
4,341,951
-
1,454,732
-
2,795,608
6,481,487
-
6,481,487
1,997,598
-
206,909,102
-
2,500,738
-
-
2,500,738
2,707,319
-
-
2,707,319
4,061,277
-
-
4,061,277
9,760,245
-
10,416,184
3,840,849
-
-
3,840,849
5,778,130
-
-
5,778,130
2,969,654
422,611
386,635
3,778,900
5,351,224
347,744
611,940
6,310,908
6,482,917
-
-
Level 2
$
6,221,701
-
1,867,804
Level 1
$
655,939
3,355,608
199,095,932
-
6,482,917
Level 3
$
-
Totals
$
6,221,701
-
1,867,804
-
3,355,608
9,734,707
-
9,734,707
3,619,854
-
202,715,786
-
4,398,804
-
-
4,398,804
2,874,535
-
-
2,874,535
3,948,228
-
-
3,948,228
8,505,186
-
9,153,261
1,005,553
-
-
1,005,553
3,798,961
-
-
3,798,961
5,717,721
417,024
535,426
6,670,171
10,945,714
1,094,209
1,205,003
13,244,926
11,633,486
648,075
-
-
11,633,486
Fair values are classified as Level 1 when the related securities or derivatives is 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 require the use of
significant unobservable inputs, in which case it is classified as Level 3.
107
(a) Fair Value (continued)
During the years ended December 31, 2014, December 31, 2013 and January 1, 2013 the following transfer of financial instruments fair value between Level 1 and Level 2
occurred:
December 31, 2014
December 31, 2013
Transfer from Level 1 to Level 2
$
558,653
-
1,238
-
$
$
58,118
-
67
-
January 1, 2013
$
$
$
-
10,500
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 years ended December 31, 2014, December 31, 2013 and January 1, 2013.
December 31, 2014
Total Level 3 fair value, beginning of year
Transfers in
Total Level 3 fair value, end of year
December 31, 2013
Transfers in
Transfers out
January 1, 2013
Purchased
Transfers in
$
386,635
5,812
(171,284)
221,163
$
535,426
317,008
(465,799)
386,635
$
872,919
375,000
46,845
(759,338)
535,426
$
611,940
35,602
(250,245)
397,297
$
1,205,003
498,972
(428,571)
(663,464)
611,940
$
1,075,001
158,000
10,000
(37,998)
1,205,003
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.
The Marquest Canadian Resource Fund and the Marquest Small Companies Funds has investment of $397,297 and $221,164 respectively in level 3 securities as at December
31, 2014. The fair value of the securities during the year 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/sector prices and overall prevailing market
and economic conditions.
108
(a) Fair Value (continued)
The Manager estimates fair values for these securities using the best information available as at of December 31, 2014, December 31, 2013 and January 1, 2013. The following
tables outline the estimates of fair values as well as ranges of these fair values using alternative assumption that are reasonably possible. Impairment losses are reflected in the
Funds’ Statements of Comprehensive Income in the “Change in unrealized appreciation (depreciation) in value of investments”.
Fair Value of Fund Holdings Based On Alternative Assumptions
as at December 31, 2014
Fund
Potential
Fair Value as reported
-25%
+25%
$
221,163
$
178,342
$
263,984
$
397,297
$
334,736
$
459,858
as at December 31, 2013
Fund
Potential
-25%
+25%
$
386,635
$
270,185
$
503,084
$
611,940
$
446,074
$
777,806
as at January 1, 2013
Fund
Potential
-25%
+25%
$
535,426
$
345,592
$
725,261
$
1,205,003
$
1,195,504
$
1,214,503
(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, 2014, 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. 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.
109
(b) Risk Management and Disclosures (continued)
(i) Market Risk (continued)
Foreign exchange risk (continued)
The tables below indicate the foreign currencies to which the Funds have significant exposure as at December 31, 2014, December 31, 2013 and January 1, 2013 in Canadian
dollar terms. The tables also illustrate the potential impact to the Funds’ net asset value, as a result of a 10% change in these currencies relative to the Canadian dollar, the
functional currency, with all other variables held constant.
Currency
Fair Value
$
% of Net Assets
Potential Impact on Net Assets
attributable to holders
of redeemable shares
%
$
United States Dollars
12,459,918
79.3
622,996
709,794
91.9
35,490
(Corporate Class)
3,637,259
96.4
181,863
Currency
Fair Value
$
% of Net Assets
%
$
(Corporate Class)
9,531,599
71.3
476,580
3,841,169
86.2
192,058
Currency
Fair Value
$
% of Net Assets
%
$
(Corporate Class)
110
8,096,997
72.3
404,850
1,005,875
99.3
50,294
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 December 31, 2014, December 31, 2013
and January 1. 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.
attributable to holders of
Less than 1 year
1-5 years
6-10 years
> 10 years
Total
redeemable shares
$
$
$
$
$
$
Marqquest Money Market Fund
3,099,611
-
-
-
3,099,611
5,889
1,598,674
-
-
-
1,598,674
2,878
-
2,372,468
1,081,710
561,752
4,015,930
237,743
-
518,607
2,353,792
802,317
3,674,716
228,200
Less than 1 year
1-5 years
6-10 years
> 10 years
Total
redeemable shares
$
$
$
$
$
$
4,341,951
-
-
-
4,341,951
16,499
1,454,732
-
-
-
1,454,732
5,092
100,242
-
2,413,719
1,434,902
2,532,624
6,481,487
441,037
822,573
1,834,682
485,893
3,143,148
155,240
Less than 1 year
1-5 years
6-10 years
> 10 years
Total
redeemable shares
$
$
$
$
$
$
6,221,701
-
-
-
6,221,701
41,685
1,867,804
-
-
-
1,867,804
38,850
111
380,948
-
3,478,480
2,905,086
2,970,193
9,734,707
669,748
1,068,742
2,863,331
4,194,066
8,126,139
221,027
(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. As of January 1, 2013, December 31, 2013 and December 31, 2014, 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:
Marquest Global Balanced Fund (formerly Marquest Tax deferred Income Fund)
% of Net Assets
in Equity Securities
$
%
$
1,818,904
196,432,169
1,603,422
1,437,430
1,712,038
11,851,355
708,663
3,631,030
393,238
7,148,803
1,697,837
2,524,103
3,024,145
115.2
97.6
99.3
103.7
95.5
75.4
91.7
96.3
93.4
97.3
56.3
74.1
43.9
Fair Value of Investments
$
%
$
112
% of Net Assets
2,795,608
204,911,368
2,500,738
2,707,319
4,061,277
9,887,615
3,840,849
5,778,130
3,768,900
6,310,908
6,482,917
100.4
96.7
96.5
97.8
98.0
73.9
86.2
97.4
79.2
87.0
56.6
181,890
19,643,217
160,342
143,743
171,204
1,185,136
70,866
363,103
39,324
714,880
169,784
252,410
302,415
279,561
20,491,137
250,074
270,732
406,128
988,762
384,085
577,813
376,890
631,091
648,292
% of Net Assets
$
%
$
3,355,608
199,093,750
8,804
2,874,535
3,948,228
6,643,305
1,005,553
3,798,961
6,570,171
12,935,316
11,633,486
101.1
96.1
100.5
99.5
98.9
59.3
99.2
100.0
73.6
94.4
70.6
335,561
19,909,375
880
287,454
394,823
664,331
100,555
379,896
657,017
1,293,532
1,163,349
(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, distributions payable and payable to other corporate classes. These financial liabilities are all current and are due within 30 days.
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. In addition, the Fund
aims to retain sufficient cash to maintain liquidity. Accordingly, the Fund's liquidity risk is considered minimal.
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.
(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 December 31, 2014 was Province of Ontario representing 28.3% of the net assets of the Marquest Canadian Bond Fund,
Government of Canada representing 30.3% of the Marquest Money Market Fund and 33.7% of the Marquest Short Term Income Fund (Corporate Class).
The maximum exposure to any one debt issuer as of December 31, 2013 was Municipal Finance Authority of British Columbia representing 12.0% of the net assets of the
Marquest Canadian Bond Fund, Government of Canada representing 36.6% of the Marquest Money Market Fund, and 44.6% of the Marquest Short Term Income Fund
(Corporate Class).
The maximum exposure to any one debt issuer as of January 01, 2013 was Canada Housing Trust representing 15.6% of the net assets of the Marquest Canadian Bond Fund,
Government of Canada representing 26.5% of the Marquest Money Market Fund, and 37.9% 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.
113
Ratings for securities that subject the Funds to significant credit risk at January 01, 2013 and December 31, 2013 and December 31, 2014 are noted below.
AAA
$
AA
A
$
$
BBB
$
BB
B
CCC
$
$
$
Unrated
$
Total
$
1,346,331
798,444
954,836
-
-
-
-
-
3,099,611
697,997
498,695
401,982
-
-
-
-
-
1,598,674
243,469
1,402,749
1,050,306
-
-
-
-
4,015,930
-
-
-
-
998,190
-
3,740,064
1,319,406
-
998,190
-
-
-
65,348
-
-
AAA
364,849
BB
B
CCC
$
$
$
AA
A
$
$
2,003,939
1,384,132
953,880
-
-
-
-
-
4,341,951
787,679
324,952
342,101
-
-
-
-
-
1,454,732
1,626,317
649,092
3,078,027
-
-
-
-
-
-
-
-
1,951,590
$
AAA
$
1,997,598
-
BBB
1,358,277
$
729,794
-
-
-
-
589,752
Unrated
$
1,899,229
337,342
AA
A
BBB
BB
B
CCC
$
$
$
$
$
$
Total
$
398,257
-
316,825
Unrated
$
6,481,487
1,997,598
3,143,148
Total
$
3,816,824
574,725
685,265
-
-
-
-
1,144,887
6,221,701
1,185,271
174,903
271,921
-
-
-
-
235,709
1,867,804
2,927,033
1,739,824
3,797,320
-
-
-
-
9,734,706
-
-
-
-
1,996,060
-
-
114
1,996,060
-
1,270,529
-
-
-
-
465,812
2,776,132
652,122
300,000
4,194,066
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.
As at December 31, 2010 the Marquest Small Companies Fund held CPN International Inc. valued at $50,000. The debenture would have otherwise been past due from its
previously extended maturity date of November 5, 2010. In 2010, the debenture was renegotiated and the maturity and terms were extended to December 20, 2012. As of
December 31, 2012, the Manager estimated that the debenture’s principal amount will not be fully repaid, accordingly reflected a full write-down of $50,000 in the Statements of
comprehensive income for the year ended December 31, 2012. During the year ended December 31, 2013 the Manager wrote off the debenture and has reflected a realized loss
of $50,000 in the Statements of comprehensive income.
13. OTHER INFORMATION
On September 25, 2007, the Manager transferred at par, extendible Series E Notes of Rocket Trust and Gemini Trust in the amount of $3,356,000 from the Marquest Money
Market Fund and the Marquest Short Term Income Fund (Corporate Class) to the Mavrix Explorer 2006 – I and Mavrix Explorer 2006 - ll LP in the amount of $306,000 and
$256,000 respectively. On March 25, 2008, as a result of the rollover of the Mavrix Explorer 2006 – l LP and the Mavrix Explorer 2006 – ll LP into the Marquest Canadian
Resource Fund (Corporate Class) the Manager transferred at par, extendible Series E Notes of Rocket Trust and Gemini Trust in the amounts of $306,000 and $256,000
respectively into the Marquest Canadian Resource Fund. These securities are considered non-bank sponsored asset-backed commercial paper (“ABCP”).
On December 12, 2007 the Manager had agreed to reimburse the Funds for any shortfall should the ABCP realize less than par value at maturity upon sale. An independent
valuation done as at January 31, 2008 indicated a valuation range of between 95.09% and 100% of par for these securities.
In 2009 the ABCP’s were restructured and a series of new notes were issued to replace the ABCP. On September 11, 2013 the Marquest Monthly Pay Fund, Marquest Canadian
Resource Fund, Marquest Money Market Fund and Marquest Short Term Income Fund sold these securities inclusive of accrued interest of $2,297, $437, $nil and $nil for
$1,409,905, $268,469, $5,765 and $2,853 respectively. As per the previous manager guarantee, the shortfalls stemming from the difference of the sale of the securities and the
par values were reimbursed to the Funds; $211,123, $40,496, $5,023 and $2,485 respectively. Accordingly, no realized losses were reflected in the Statements of comprehensive
income.
14. TRANSITIONS TO IFRS
Statement of cash flows
Under Canadian GAAP, the Fund was exempt from providing a statement of cash flows. IAS 1 Presentation of financial statements requires that a complete set of financial
statements include a statement of cash flows for the current and comparative periods, without exception.
Exceptions that are mandated by IFRS 1 First-time adoption of International Reporting Standards
Estimates – IFRS 1 prohibits use of hindsight to create or revise previous estimates. The estimates the Company previously made under Canadian GAAP have not been revised
for application of IFRS.
a. Classification of redeemable units/shares issued by the Fund
Under Canadian GAAP, the Fund accounted for its redeemable units/shares as equity. Under IFRS, IAS 32 Financial Instruments presentation requires that units or shares of an
entity which include a contractual obligation for the issuer to repurchase or redeem them for cash or another financial asset be classified as financial liability. The Fund’s units do
not meet the criteria in IAS 32 for classification as equity and therefore, have been classified as financial liabilities on transition to IFRS.
b. Revaluation of investments at FVTPL
Under Canadian GAAP, the Fund measured the fair values of its investments in accordance with Section 3855, Financial Instruments – Recognition and Measurement, which
required the use of bid prices for long positions and ask prices for short positions, to the extent such prices are available. Under IFRS, the Fund measures the fair values of its
investments using the guidance in IFRS 13, Fair Value Measurement, which requires that if an asset or a liability has a bid price and an ask price, then its fair value is to be based
on a price within the bid-ask spread that is most representative of fair value. It also allows the use of mid-market pricing or other pricing conventions that are used by market
participants as a practical expedient for fair value measurements within a bid-ask spread. As a result, upon adoption of IFRS an adjustment was recognized to increase the
carrying amount of the Fund’s investments at January 1, 2013 and as at December 31, 2013 and the Fund’s increase (decrease) in net assets attributable to holders of
redeemable units for the years ended January 1, 2013 and December 31, 2013. The tables below summarize the adjustments by Fund:
115
14. TRANSITIONS TO IFRS (continued)
b. Revaluation of investments at FVTPL (continued)
Previously reported
under Canadian GAAP
Bid-ask spread
adjustment
Reported Under
IFRS
$
$
$
As at January 1, 2013
Investments
Net assets attributable to holders of redeemable units per class
Class A
Net assets attributable to holders of redeemable units per class per unit
Class A
Investments
Class A
Class A
For the year ended December 31, 2013
Class A
Increase (decrease) in net assets attributable to holders of redeemable units per class per unit
Class A
6,221,701
6,381,503
-
6,221,701
6,381,503
6,381,503
-
6,381,503
10.00
-
10.00
4,341,951
4,387,814
-
4,341,951
4,387,814
4,387,814
4,387,814
10.00
-
38,980
-
38,980
38,980
-
38,980
0.07
-
0.07
10.00
b. Revaluation of investments at FVTPL(continued)
Previously reported
under Canadian GAAP
$
Bid-ask spread
adjustment
$
1,867,804
1,703,779
-
1,867,804
1,703,779
1,703,779
-
1,703,779
11.33
-
11.33
1,454,732
1,319,156
-
1,454,732
1,319,156
1,319,156
-
1,319,156
11.43
-
11.43
11,871
-
11,871
11,871
-
11,871
0.09
-
0.09
Marquest Short Term income Fund (Corporate Class)
Investments
Class A
Class A
Investments
Class A
Class A
Class A
Class A
116
Reported Under
IFRS
$
Previously reported
under Canadian GAAP
$
Investments
Class A
Class F
Class T8
Class A
Class F
Class T8
Investments
Class A
Class F
Class T8
Class A
Class F
Class T8
Class A
Class F
Class T8
Class A
Class F
Class T8
Reported Under
IFRS
$
3,355,608
3,319,944
-
3,355,608
3,319,944
2,451,621
389,687
478,636
-
2,451,621
389,687
478,636
14.14
14.22
8.13
-
14.14
14.22
8.13
2,795,608
2,784,877
-
2,795,608
2,784,877
2,331,663
63,534
389,680
-
2,331,663
63,534
389,680
15.03
15.28
7.95
-
15.03
15.28
7.95
383,195
182,160
-
383,195
182,160
146,550
9,866
25,744
-
146,550
9,866
25,744
0.85
0.92
0.50
-
0.85
0.92
0.50
Previously reported
under Canadian GAAP
$
Bid-ask spread
adjustment
$
Investments
Class A
Class F
Class A
Class F
Investments
Class A
Class F
Class A
Class F
Class A
Class F
Class A
Class F
117
Bid-ask spread
adjustment
$
Reported Under
IFRS
$
9,722,774
9,897,904
11,933
11,933
9,734,707
9,909,837
8,682,050
1,215,854
10,467
1,466
8,692,517
1,217,320
4.95
5.21
0.01
0.01
4.96
5.22
6,471,905
6,615,061
9,582
9,582
6,481,487
6,624,643
5,750,620
864,441
8,330
1,252
5,758,950
865,693
4.59
4.87
0.01
4.59
4.88
(312,748)
(214,658)
(2,351)
(2,351)
(315,099)
(217,009)
(190,036)
(24,622)
(2,137)
(214)
(192,173)
(24,836)
(0.13)
(0.11)
-
(0.13)
(0.11)
Previously reported
under Canadian GAAP
$
Investments
Class A
Class F
Class T8
Class A
Class F
Class T8
Investments
Class A
Class AA
Class F
Class F-A
Class T8
Class A
Class AA
Class F
Class F-A
Class T8
Class A
Class AA
Class F
Class F-AA
Class T8
Class A
Class AA
Class F
Class F-AA
Class T8
118
Bid-ask spread
adjustment
$
Reported Under
IFRS
$
202,362,067
206,842,719
353,719
353,719
202,715,786
207,196,438
196,478,506
9,752,975
611,238
335,998
16,676
1,045
196,814,504
9,769,651
612,283
5.62
6.24
10.03
0.01
0.01
0.02
5.63
6.25
10.05
206,782,376
211,686,062
126,726
126,726
206,909,102
211,812,788
197,242,627
5,489,059
7,516,147
69,207
1,369,022
118,078
3,288
4,499
42
819
197,360,705
5,492,347
7,520,646
69,249
1,369,841
5.43
16.20
6.24
16.14
10.60
0.01
0.01
-
5.43
16.21
6.24
16.15
10.60
17,412,192
27,321,472
(226,993)
(226,993)
17,185,199
27,094,479
25,743,620
257,297
1,161,315
3,357
155,883
(217,920)
3,288
(12,177)
42
(226)
25,525,700
260,585
1,149,138
3,399
155,657
0.72
1.81
0.84
1.76
1.38
(0.01)
0.02
(0.01)
0.02
(0.01)
0.71
1.83
0.83
1.78
1.37
Previously reported
under Canadian GAAP
$
Investments
Class A
Class F
Class T8
Class T-F8
Class A
Class F
Class T8
Class T-F8
Investments
Class A
Class F
Class T8
Class T-F8
Class A
Class F
Class T8
Class T-F8
Class A
Class F
Class T8
Class T-F8
Class A
Class F
Class T8
Class T-F8
119
Bid-ask spread
adjustment
$
Reported Under
IFRS
$
4,398,804
4,377,499
-
4,398,804
4,377,499
1,031,042
1,494,691
1,486,350
365,416
-
1,031,042
1,494,691
1,486,350
365,416
10.16
10.32
9.80
9.93
-
10.16
10.32
9.80
9.93
2,500,738
2,591,816
-
2,500,738
2,591,816
1,032,384
59,652
1,486,083
13,697
-
1,032,384
59,652
1,486,083
13,697
11.29
11.61
10.03
10.42
-
11.29
11.61
10.03
10.42
1,063,289
322,089
-
1,063,289
322,089
108,207
52,416
154,818
6,648
-
108,207
52,416
154,818
6,648
0.97
1.26
1.04
0.26
-
0.97
1.26
1.04
0.26
Previously reported
under Canadian GAAP
$
Investments
Class A
Class F
Class T8
Class A
Class F
Class T8
Investments
Class A
Class F
Class T8
Class A
Class F
Class T8
Class A
Class F
Class T8
Class A
Class F
Class T8
Class A
Class F
Class T8
Class A
Class F
Class T8
Class A
Class F
Class T8
Class A
Class F
Class T8
120
Reported Under
IFRS
$
2,867,424
2,882,797
7,111
7,111
2,874,535
2,889,908
2,428,153
207,844
246,800
5,989
512
610
2,434,142
208,356
247,410
10.20
10.27
9.83
0.02
0.03
0.02
10.22
10.30
9.85
2,705,680
2,765,948
1,639
1,639
2,707,319
2,767,587
2,298,075
193,977
273,896
1,362
115
162
2,299,437
194,092
274,058
11.56
11.77
10.77
0.01
0.01
-
11.57
11.78
10.77
373,698
468,183
(5,529)
(5,472)
368,169
462,711
392,100
31,265
44,818
(4,627)
(397)
(448)
387,473
30,868
44,370
1.79
2.21
1.66
(0.02)
(0.02)
(0.02)
1.77
2.19
1.64
Previously reported
under Canadian GAAP
$
Investments
Class A
Class F
Class T8
Class A
Class F
Class T8
Investments
Bid-ask spread
adjustment
$
Bid-ask spread
adjustment
$
Reported Under
IFRS
$
3,940,449
3,985,913
7,779
7,779
3,948,228
3,993,692
1,957,447
1,718,175
310,291
3,819
3,353
607
1,961,266
1,721,528
310,898
10.57
10.54
10.17
0.02
0.02
0.02
10.59
10.56
10.19
4,058,135
4,139,109
3,142
3,142
4,061,277
4,142,251
2,451,690
1,405,890
281,529
1,861
1,066
215
2,453,551
1,406,956
281,744
11.24
11.33
10.40
0.01
0.01
0.01
11.25
11.34
10.41
372,378
414,843
(4,637)
(4,637)
221,821
165,436
27,586
(1,958)
(2,287)
(392)
0.99
1.09
0.89
(0.01)
(0.02)
(0.01)
367,741
410,206
219,863
163,149
27,194
0.98
1.07
0.88
Previously reported
under Canadian GAAP
$
Investments
Class A
Class F
Class T8
Class A
Class F
Class T8
Investments
Class A
Class F
Class T8
Class A
Class F
Class T8
Class A
Class F
Class T8
Class A
Class F
Class T8
121
Reported Under
IFRS
$
9,131,077
11,184,372
22,184
22,184
9,153,261
11,206,556
9,770,352
1,284,907
129,113
19,379
2,549
256
9,789,731
1,287,456
129,369
15.42
16.69
10.00
0.03
0.03
0.02
15.45
16.72
10.02
10,408,685
13,367,238
7,499
7,499
10,416,184
13,374,737
11,717,776
1,488,542
160,920
6,574
835
90
11,724,350
1,489,377
161,010
17.41
19.15
11.19
0.01
0.01
17.41
19.16
11.20
561,210
2,423,544
-
14,685
14,685
546,525
2,408,859
2,120,957
274,317
28,270
-
12,805
1,714
166
2,108,152
272,603
28,104
2.99
3.55
1.98
-
Previously reported
under Canadian GAAP
$
Investments
Class A
Class F
Class T8
Class A
Class F
Class T8
Investments
Class A
Class F
Class T8
Class A
Class F
Class T8
Class A
Class F
Class T8
Class A
Class F
Class T8
Bid-ask spread
adjustment
$
(0.02)
0.02
0.01
Bid-ask spread
adjustment
$
2.97
3.53
1.97
Reported Under
IFRS
$
1,005,666
1,013,285
(113)
(113)
1,005,553
1,013,172
635,610
84,463
293,212
(71)
(10)
(32)
635,539
84,453
293,180
11.59
11.65
9.79
-
11.59
11.65
9.79
3,840,459
4,454,514
390
390
3,840,849
4,454,904
2,917,545
647,589
889,380
255
57
78
2,917,800
647,646
889,458
14.32
14.55
11.23
-
14.32
14.55
11.23
498,197
476,998
503
503
498,700
477,501
311,782
51,490
113,726
326
67
110
312,108
51,557
113,836
2.30
2.21
1.91
-
2.30
2.21
1.91
Previously reported
under Canadian GAAP
$
Investments
Class A
Class F
Class A
Class F
Investments
Class A
Class F
Class A
Class F
Class A
Class F
Class A
Class F
122
Reported Under
IFRS
$
3,793,598
3,793,743
5,363
5,363
3,798,961
3,799,106
3,703,169
90,574
5,235
128
3,708,404
90,702
10.58
10.60
0.01
0.02
10.59
10.62
5,776,753
5,931,338
1,377
1,377
5,778,130
5,932,715
5,705,804
225,534
1,325
52
5,707,129
225,586
10.95
11.00
0.01
10.95
11.01
84,977
800,072
(8,772)
(3,986)
777,205
22,867
(3,910)
(76)
1.78
2.05
Previously reported
under Canadian GAAP
$
Investments
Class A
Class F
Class A
Class F
Investments
Class A
Class F
Class A
Class F
Class A
Class F
Class A
Class F
Bid-ask spread
adjustment
$
-
0.01
0.01
Bid-ask spread
adjustment
$
76,205
796,086
773,295
22,791
1.77
2.04
Reported Under
IFRS
$
6,431,483
8,052,550
238,688
238,688
6,670,171
8,291,238
7,909,969
142,581
234,462
4,226
8,144,431
146,807
11.23
12.34
0.33
0.37
11.56
12.71
3,746,687
4,674,660
32,213
32,213
3,778,900
4,706,873
4,626,519
48,141
31,880
333
4,658,399
48,474
10.60
11.81
0.07
0.08
10.67
11.89
3,369,929
(309,484)
(206,475)
(206,475)
(306,130)
(3,354)
(202,582)
(3,893)
(0.56)
(0.51)
(0.37)
(0.60)
3,163,454
(515,959)
(508,712)
(7,247)
(0.93)
(1.11)
Previously reported
under Canadian GAAP
$
Investments
Class A
Class F
Class I
Class A
Class F
Class I
Investments
Class A
Class F
Class I
Class A
Class F
Class I
Class A
Class F
Class I
Class A
Class F
Class I
Reported Under
IFRS
$
13,111,418
13,573,030
133,508
133,508
13,244,926
13,706,538
2,001,444
11,569,870
1,716
19,689
113,803
16
2,021,133
11,683,673
1,732
12.04
12.84
18.03
0.12
0.13
0.17
12.16
12.97
18.20
6,116,715
7,063,195
194,193
194,193
6,310,908
7,257,388
760,244
6,300,532
2,419
20,903
173,224
66
781,147
6,473,756
2,485
6.62
7.12
10.07
0.18
0.19
0.28
6.80
7.31
10.35
(527,357)
(7,471,777)
60,685
60,685
(466,672)
(7,411,092)
(726,338)
(6,744,232)
(1,207)
1,214
59,421
50
(725,124)
(6,684,811)
(1,157)
(6.57)
(5.59)
(6.88)
1.01
0.05
0.28
(5.56)
(5.54)
(6.60)
Previously reported
under Canadian GAAP
$
Bid-ask spread
adjustment
$
11,633,486
16,485,729
-
11,633,486
16,485,729
16,422,260
63,469
-
16,422,260
63,469
7.83
7.99
-
7.83
7.99
6,482,917
11,451,917
-
6,482,917
11,451,917
11,409,277
42,640
-
11,409,277
42,640
5.13
5.30
-
5.13
5.30
Investments
Class A
Class F
Class A
Class F
Investments
Class A
Class F
Class A
Class F
Class A
Class F
Class A
Class F
123
Bid-ask spread
adjustment
$
Reported Under
IFRS
$
1,137,099
(7,029,536)
-
(7,008,662)
(20,874)
-
1,137,099
(7,029,536)
(7,008,662)
(20,874)
(2.67)
(2.73)
-
(2.67)
(2.73)
15. INTERESTS IN OTHER ENTITIES
Marquest Monthly Pay Fund – Corporate Class, Marquest Canadian Resource Fund – Corporate Class and Marquest Canadian Balanced 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.
Total Fair Value of Underlying
Fund Held in Investments
Accrued Investment Income
due from Underlying fund
$
1,818,904
1,603,422
3,024,145
% of Funds Net Assets
$
%
-
115.2
99.3
43.9
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 Statement of comprehensive income for the period ended December 31, 2014 December 31, 2013 and
January1, 2013 are listed in the table below.
Distributions
Realized Gains / (Losses)
$
$
15,942
-
$
$
$
383,195
1,063,289
1,137,099
Change in Unrealized Gains /
Losses
$
$
(49,789)
(73,497)
(3,425,682)
91,277
452,986
-
Losses
(172,437)
(685,722)
(7,810,395)
Distributions
70,863
149,639
2,039,602
$
49,242
38,889
-
$
11,491
(97,534)
(3,810,691)
Distributions
Losses
176,406
(123,602)
(1,959,576)
The Funds does not provide any additional significant financial or other support to the underlying funds.
% of net assets as Ownership % as Ownership % as Ownership % as
at January 01,
at December 31, at December 31, at December
2013
31, 2013
2014
2014
Fund
Underlying Fund
Marquest Monthly Pay Fund F Class
Marquest Canadian Bond Fund F Class
Marquest Monthly Pay Fund F Class
99.3%
46.0%
69.3%
34.2%
98.7%
23.3%
33.3%
98.4%
25.9%
45.1%
79.9%
24.4%
Marquest Canadian Resource Fund F Class
Marquest Canadian Resource Fund F Class
43.9%
99.9%
99.2%
99.5%
124
16. 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 Fund is currently assessing the impact of adopting the IFRS 9 on the financial statements.
17. STATEMENT OF PORTFOLIO TRANSACTIONS
An unaudited statement of portfolio transactions for the Funds’ for the year ended December 31, 2014 may be obtained, without charge, by writing to the Manager.
161 Bay Street, Suite 4420
Toronto, Ontario
M5J 2S1
125
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.

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