NDX Growth & Income Fund

As of June 28, 2019, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was C$8.33 versus C$8.50 on March 29, 2019. The NAV of the Class U unit on of June 28, 2019 was US$8.91 vs. US$8.97 on March 29, 2019. Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period. The Class A units closing price on June 28, 2019 was C$8.28 representing a discount of -0.6 percent to NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

North American equity markets continued their impressive rally from the first quarter of 2019, albeit volatile as markets rose in April, declined significantly in May and advanced strongly in June. Markets have priced in expectations that central banks around the world would be more accommodative with interest rate cuts. The S&P/TSX Index rose 1.7% while the S&P 500 Index rose 3.8%. In Canada, 7 of 10 sectors were positive for the quarter, with Information Technology leading the way up 14.2%, while Health Care lagged, down 9.4%. The U.S. market saw 10 of 11 sectors generate positive performance, with the Financials sector leading the way, up 7.4%, while Energy was the lone sector to be in the red during the quarter, down 3.7%.

The Nasdaq 100 Equal Weighted Index advanced 4.00% in the quarter, building on gains in the first quarter of 2019. Stocks within the portfolio had varying returns. Microsoft Corp was the best performer which increased 14.0% during the quarter, while Xilinx Inc was the worst performing stock, down 20.9% while held in the portfolio.

Volatility levels as measured by the CBOE SPX Volatility Index (“VIX”) remained low for most of the period other than the brief spike in early May as equity markets pulled back on trade war concerns and the effect on the economy. The manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy as the Fund had on average 25.8% of portfolio written during the period vs. 17.2% on average during the previous quarter.

The Fund held an average cash position of 6% during the period vs. 18% during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the third quarter 50% hedged back into Canadian dollars.

As of March 29, 2019, the Net Asset Value “NAV” of the Class A unit, NGI.UN was C$8.50 versus C$8.27 on December 31, 2018. The NAV of the Class U unit on of March 31, 2019 was US$8.97 vs. US$8.55 on December 31, 2018. Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period. The Class A units closing price on March 29, 2019 was C$8.39 representing a discount of 11 cents to NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

After a dreadful fourth quarter of 2018, North American equity markets staged an impressive recovery in the first quarter of 2019 with the S&P/TSX Index advancing 13.3 percent while the S&P 500 Index rose 13.6 percent. As fears of a trade war between the United States and China subsided and central banks around the globe changed to a more accommodative stance on forward looking interest rates, risk assets rallied strongly. In Canada, all 11 sectors were positive for the quarter, with Health Care, the worst performing sector in Q4 leading the way, producing a 49.1 percent return, mostly due to strength in the Cannabis sector. The U.S. market also saw all 11 sectors generate positive performance, with the Information Technology sector leading the way, up 19.9 percent, while the defensive U.S. Health Care sector lagged, up 6.6 percent.

The Nasdaq 100 Equal Weighted Index advanced 18.04 percent in the quarter, erasing the losses sustained in the fourth quarter of 2018. Stocks within the portfolio had varying returns. Cisco Systems Inc was the best performer which increased 25.6 percent during the quarter, while Fox Corp was the worst performing stock, down 11.97 percent while held in the portfolio.

As equity markets rallied, volatility declined, as measured by the Chicago Board Options Exchange Volatility Index. (“VIX”) After starting the year above 25, the VIX declined for most of the period ending the quarter just under 14. The manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy and the Fund had on average 19.8 percent of portfolio written during the period vs. 25.8 percent on average during the previous quarter.

The Fund held an average cash position of 17.9 percent during the period vs. 15.6 percent during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the third quarter 50 percent hedged back into Canadian dollars.

As of December 31, 2018, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was C$8.27 versus C$9.66 on September 28, 2018. The NAV of the Class U unit on December 31, 2018 was US$8.55 vs. US$10.10 on September 28, 2018. Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period. The Class A units closing price on December 31, 2018 was C$8.12 representing a discount of 15 cents (-1.8%) to NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

North American markets were dreadful in the 4th quarter of 2018, with the S&P 500 Index declined 13.5% and the Nasdaq Composite declined 17.3% weighed down by the implications of tighter global monetary policy, trades wars, soaring valuations along with heightened geopolitical risks. The U.S. market saw 10 of 11 sectors generate negative performance, with Energy leading all declines down 23.8%, while the defensive Utilities sector was the lone sector with a positive return in the quarter, up 1.4%.

The Nasdaq 100 Equal Weighted Index declined 13.8% in the quarter, erasing strong gains in the first nine months of the year. Stocks within the portfolio had varying returns. Twenty-First Century Fox-A was the best performer which increased 4.13% during the quarter, while Nvidia Corp was the worst performing stock, down 41.5% while held in the portfolio.

Equity volatility, as measured by the Chicago Board Options Exchange Volatility Index (“VIX”), started the quarter around 12 and accelerated into year-end, closing above 25. The rise in volatility created more opportunities to utilize the Strathbridge Selective Overwriting (“SSO”) strategy. The Fund had on average 25.8% of portfolio written during the period vs. 7.4% on average during the previous quarter.

The Fund held an average cash position of 15.6% during the period vs. 4.7% during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the third quarter 50% hedged back into Canadian dollars.

As of September 28, 2018, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was C$9.66 versus C$9.21 on June 29, 2018. The NAV of the Class U unit on September 28, 2018 was US$10.10 vs. US$9.54 on June 29, 2018. Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period. The Class A units closing price on September 28, 2018 was C$9.48 which represents a discount of 18 cents (1.9%) to NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

US Equity markers were among the strongest in the third quarter with the S&P 500 Index returning 7.7% and the Nasdaq Composite up 7.4%. The U.S. market saw 8 of 11 sectors with positive performance, also led by Health Care up 14.1%, while the Real Estate, Energy and Materials sectors lagged the broader market with negative returns.

The Nasdaq 100 Equal Weighted Index continued its upward trajectory from the prior quarter. For the quarter, the index moved higher from 3,662.64 on June 29, 2018 to 3849.78 on September 28, 2018. Stocks within the portfolio had varying returns. Illumina Inc was the best performer which increased 31.4% during the quarter, while Netflix Inc was the worst performing stock, down 16.3% in the portfolio.

Equity volatility, as measured by the Chicago Board Options Exchange Volatility Index (“VIX”), remained low and traded in a narrow range between 10 and 16 for most of the quarter. The Fund opportunistically wrote call options during the period as the Fund on average had 7.4% of portfolio written during the period vs. 9.4% on average during the previous quarter.

The Fund held an average cash position of 4.7% during the period vs. 6.9% during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the third quarter 75% hedged back into Canadian dollars.

As of June 29, 2018, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was C$9.21 versus C$8.93 on March 29, 2018. The NAV of the Class U unit on June 29, 2018 was US$9.54 vs. US$9.25 on March 29, 2018. Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period. The Class A units closing price on June 29, 2018 was C$9.13 representing a discount of 0.87% to NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

As noted in our previous quarterly comment, the first quarter of 2018 was especially tumultuous. The second quarter was much more constructive with the broad indices not only re-testing the 2017 highs but moving to new all-time highs. The S&P TSX Index had a total return of 6.75 percent in this period, the S&P 500 advanced 3.43% while the MSCI EAFE Index declined -.88%.

The Nasdaq 100 Equal Weighted Index continued its upward trajectory from the prior quarter. For the quarter, the index was up 2.90 percent. Stocks within the portfolio had varying returns. Twenty-First Century Fox-A was the best performer returning 34.43 percent on a takeover offer from Walt Disney Co., while Mercadolibre Inc was the worst performing stock, down 9.43 percent while held in the portfolio.

Volatility as measured by the VXN index (NDX Volatility index) retreated from elevated levels in the first quarter declining to 20.88 on June 29, 2018 from 26.68 on March 29, 2018.

Fund saw more in its covered-call writing strategy and, on average, the Fund was written on 6.9% during the quarter versus 5.7% in the previous quarter.

As of March 29, 2018, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was C$8.93 versus C$8.92 on December 29, 2017. The NAV of the Class U unit on March 29, 2018 was US$9.25 vs. US$9.37 on December 29, 2017. Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period. The Class A units closing price on March 29, 2018 was C$9.00 representing a premium of 0.78% to NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets experienced heightened volatility in the first quarter on fears surrounding rising interest rates, trade policy and market valuations. The S&P/TSX Composite Index declined 4.52% while the S&P 500 Index in the U.S. was down 0.76% and the MSCI EAFE Index off 1.58%.

The Nasdaq 100 Equal Weighted Index continued its upward trajectory from the prior quarter. For the quarter, the index ended up moving higher from 3,505 on December 29, 2017 to 3,569 on March 29, 2018. Stocks within the portfolio had varying returns. Amazon.com Inc was the best performer which increased 23.76% during the quarter, while Charter Communications Inc-A was the worst performing stock, down 15.68% while held in the portfolio.

Volatility as measured by the VXN index (NDX Volatility index) was quiet going into year-end but spiked up in early February to over 33% when the market saw several days of marked weakness, however, has since returned to 20% near the long-term average of the index.

The Fund saw more opportunities in its covered-call writing strategy and, on average, the Fund was written on 9.4% during the quarter versus 2.7% in the previous quarter.

The U.S. dollar exposure was 50% hedged back into Canadian dollars throughout the period. The U.S. Dollar increased 2.51% vs. the Canadian dollar during the quarter.

As of December 29, 2017, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was C$8.92 versus C$8.54 on September 29, 2017. The NAV of the Class U unit on December 29, 2017 was US$9.37 vs. US$8.99 on September 29, 2017. Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period. The Class A units closing price on December 29, 2017 was C$8.81 representing a discount of 1.21% to NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets continued to move higher in the fourth quarter on the back of a global synchronized recovery and the passage of the U.S. Tax Cuts and Jobs Act. The S&P/TSX Composite Index increased 4.44% while the S&P 500 Index in the U.S. was up 6.64% and the MSCI EAFE Index up 4.30%.

The Nasdaq 100 Equal Weighted Index continued its upward trajectory from the prior quarter. For the quarter, the index ended up moving higher from 3,362 on September 29, 2017 to 3,505 on December 29, 2017. Stocks within the portfolio had varying returns. Ross Stores Inc was the best performer which increased 24.55% during the quarter, while Symantec Corp was the worst performing stock, down 12.59% while held in the portfolio.

Volatility remained low through most of the quarter and hit an all-time low towards the end of November as stocks rallied and investor sentiment was on the rise.

Given the extreme low levels of volatility, the Fund saw less opportunities in its covered-call writing strategy and, on average, the Fund was written on 3.5% during the quarter versus 3.8% in the previous quarter.

The U.S. dollar was mostly hedged back into Canadian dollars throughout the period and ended the year with approximately 100% of the U.S. dollar exposure hedged. The U.S Dollar increased .3% vs. the Canadian dollar during the quarter.

As of September 30, 2017, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was C$8.54 versus C$8.04 on June 30, 2017. The NAV of the Class U unit on September 30, 2017was US$8.99 vs. US$8.36 on June 30, 2017. Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period. The Class A units closing price on September 30, 2017 was C$8.33 representing a discount of 2.46% to NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets for the most part continued their strong post-Trump election rally into the second third of 2017. The Nasdaq Composite Index was one of the strongest performing indices in the third quarter with a total return of 6.07 %, while the S&P 500 Index in the U.S. was up 4.48%.

The Nasdaq 100 Equal Weighted Index continued its upward trajectory from the prior quarter. For the quarter, the index ended up moving higher from 3,228 on June 30, 2017 to 3362 on September 30, 2017. Stocks within the portfolio had varying returns. Micron Technologies Inc was the best performer which increased 31.71% during the quarter, while CSX Corp was the worst performing stock, down 19.05% in the portfolio.

Volatility remained fairly subdued through most of the quarter although the VIX did spike marginally higher than 15 towards the middle of August as markets were skittish on continued gridlock in Washington.

The Fund saw less opportunities in its covered-call writing during the period and ended the quarter with 3% of the portfolio written vs. 1.4% at the end of the previous quarter. On average, the Fund was written on about 3.8% during the quarter. The Fund ended the quarter with a cash balance of about 4%.

The U.S. dollar was mostly hedged back into Canadian dollars throughout the period and ended September with approximately 100% of the U.S. dollar exposure hedged, helping negate some of the negative impact of the 3.8% decline in the U.S. dollar vs. the Canadian dollar during the quarter.

As of June 30, 2017, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was C$8.04 versus C$8.00 on March 31, 2017. The NAV of the Class U unit on June 30, 2017 was US$8.36 vs. US$8.26 on March 31, 2017. Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period. The Class A units closing price on June 30, 2017 was C$8.02 representing a discount of 2 cents to NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets for the most part continued their strong post-Trump election rally into the second quarter of 2017. The Nasdaq Composite Index was one of the strongest performing indices in the second quarter with a total return of 4.2%, while the S&P 500 Index in the U.S. was up 3.0%.

The Nasdaq 100 Equal Weighted Index continued its upward trajectory from the prior quarter. For the quarter, the index ended up moving just marginally higher from 3,119.87 on March 31, 2017 to 3,228.25 on June 30, 2017. Stocks within the portfolio had varying returns. PayPal Holdings Inc was the best performer which increased 21.2% during the quarter, while Twenty-First Century Fox was the worst performing stock, down 12.3% in the portfolio.

Volatility remained fairly subdued through most of the quarter although the VIX did spike marginally higher than 15 towards the middle of April as markets were skittish on continued gridlock in Washington.

The Fund saw less opportunities in its covered-call writing during the period and ended the quarter with 1.4% of the portfolio written vs. 5.8% at the end of the previous quarter. On average, the Fund was written on about 4.2% during the quarter. The Fund ended the quarter with a cash balance of about 6.9%.

The U.S. dollar was mostly hedged back into Canadian dollars throughout the period and ended June with approximately 100% of the U.S. dollar exposure hedged, helping negate some of the negative impact of the 3.5% decline in the U.S. dollar vs. the Canadian dollar during the quarter.

As of March 31, 2017, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was C$8.00 versus C$7.51 on December 30, 2016. The NAV of the Class U unit on March 31, 2017 was US$8.26 vs. US$7.66 on December 30, 2016. Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period. The Class A units closing price on March 31, 2017 was C$7.97 representing a discount of 3 cents to NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets for the most part continued their strong post-Trump election rally into the first quarter of 2017. The Nasdaq Composite Index was one of the strongest performing indices in the first quarter with a total return of 10.1 %, while the S&P 500 Index in the U.S. was up 3.8%.

The Nasdaq 100 Equal Weighted Index continued its upward trajectory from the prior quarter. For the quarter, the Index ended up moving higher from 2,793.66 on December 30, 2016 to 3119.87 on March 31, 2017. Stocks within the portfolio had varying returns. Activision Blizzard Inc. was the best performer which increased 38.10% during the quarter, while Qualcomm Inc. was the worst performing stock, down 11.75% in the portfolio.

Volatility remained fairly subdued through most of the quarter although the CBOE Volatility Index (VIX) did spike marginally higher than 15% towards the end of March as markets were skittish on the inability of Republicans to get the Affordable Care Act revoked.

The Fund saw less opportunities in its covered-call writing during the period and ended the quarter with 5.8% of the portfolio written vs. 9.8% at the end of the previous quarter. On average, the Fund was written on about 3.4% during the quarter. The Fund ended the quarter with a cash balance of about 5.3%.

The U.S. dollar was mostly hedged back into Canadian dollars throughout the period and ended March with approximately 100% of the U.S. dollar exposure hedged.

As of December 31, 2016, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was C$7.51 versus C$7.60 on September 30, 2016. The NAV of the Class U unit on December 31, 2016 was US$7.66 vs. US$7.76 on September 30, 2016. Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period. The Class A units closing price on September 30, 2016 was C$7.58 representing a premium of 0.93% to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Most global equity markets rallied strongly in the fourth quarter of 2016 with the majority of the performance coming after the election of Donald Trump as the President of the United States on November 8, 2016. The S&P/TSX Composite Index rose 4.5% while the S&P 500 Index in the U.S. was up 3.8%. Meanwhile, Asian markets declined during the period, dragging the international MSCI EAFE Index down 0.6%.

The Nasdaq 100 Equal Weighted Index was declining heading into the U.S. election but had a strong rally post the election of Donald Trump. However, for the quarter, the index ended up moving just marginally higher from 2,764.13 on September 30, 2016 to 2,793.66 on December 31, 2016. Stocks within the portfolio had varying returns. NVIDIA Corp. was the best performer which increased 56.01% during the quarter, while Amazon was the worst performing stock, down 14.12% in the portfolio.

Volatility moved higher heading into the U.S. Election as the Chicago Board Options Exchange Volatility Index (VIX) went from 13% on October 24th to 22.5% on November 4th. After the election, volatility declined swiftly hitting a low for the year on December 21st at 10.9%.

The Fund saw more opportunities in its covered-call writing during the period and ended the quarter with 9.8% of the portfolio written vs. 1.6% at the end of the previous quarter. On average, the Fund was written on about 6.4% during the quarter. The Fund was fully invested at the end of the quarter.

At the end of the quarter the Fund’s U.S. dollar exposure was 50% hedged.

As of September 30, 2016, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was C$7.60 versus C$7.09 on June 30, 2016. The NAV of the Class U unit on September 30, 2016 was US$7.76 vs. US$7.23 on June 30, 2016. Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period. The Class A units closing price on September 30, 2016 was C$7.31 representing a discount of 3.81% to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets continued their slow and gradual climb higher during the third quarter shrugging off the surprise Brexit vote at the end of the second quarter. The S&P 500 Index advanced 3.85% during the period, while the S&P/TSX Composite rallied to close up 5.45% with fairly broad based sector gains.

The Nasdaq 100 Equal Weighted Index also had a strong rally during the period moving higher from 2,540.36 on June 30, 2016 to 2,764.13 on September 30, 2016. Stocks within the portfolio had varying returns. Nvidia Corp. was the best performer which increased 46.02% during the quarter, while Netflix was the worst performing stock, down 7.34%.
Volatility in the second quarter stayed subdued for the most part as measured by the Chicago Board Options Exchange NDX Volatility Index (VXN) which stayed below 20 for the quarter.

Due to lower price volatility, the Fund saw less opportunities in its covered-call writing during the period and ended the quarter with 1.6% of the portfolio written vs. 7.2% at the end of the previous quarter. On average, the Fund was written on about 4.9% during the quarter. The Fund was fully invested at the end of the quarter versus 15.6% cash at the end of the prior quarter.

At the end of the quarter the Fund’s U.S. dollar exposure was fully hedged.

As of June 30, 2016, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was $7.09 versus $7.45 on March 31, 2016. The NAV of the Class U unit on March 31, 2016 was US$7.23 vs. US$7.57 on March 31, 2016.

Class A unitholders received distributions totaling $0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period.

The Class A units closing price on June 30, 2016 was $6.97 representing a discount of 1.7% to its underlying net asset value. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets continued marginally higher through the second quarter maintaining a steady but gradual uptrend from the lows made in the prior quarter. The S&P 500 Index advanced 1.89% during the period, while the S&P/TSX Composite rallied on the back of continued gains in Crude Oil and Gold since the lows in February to close up 4.22%. The referendum held on June 23 for Brexit - the vote to decide whether Great Britain would exit from the European Union - resulted in a surprise Leave vote that led to a brief selloff in markets and a spike in volatility but the market rallied impressively at month end to offset most of the losses as a result of the vote.

The Nasdaq 100 Equal Weighted Index ended lower during the period from 2,554.83 on March 31, 2016 to 2,540.36 on June 30, 2016.

Stocks within the portfolio had varying returns led by Kraft Heinz Co., which increased 13.97% during the quarter while Seagate Technology was the worst performing stock within the portfolio.

Volatility in the second quarter remained fairly benign as measured by the Chicago Board Options Exchange NDX Volatility Index (VXN) which stayed below 20 for most of the quarter but breached those levels at the end of the quarter as the Brexit vote drew near and on the surprise result. The Fund was active in its covered-call writing during the period and ended the quarter with 7.2% of the portfolio written vs. 4.9% at the end of the previous quarter. On average, the Fund was written on about 5.8% during the quarter.

As the quarter ended, the Fund’s cash position gradually increased because of a more defensive stance in light of the uncertainty surrounding the Brexit vote. At the end of the quarter, the Fund had 15.6% of the holdings in cash vs. 4.5% at the end of the previous quarter.

At the end of the quarter approximately 50% of the U.S. dollar exposure was hedged.

As of March 31, 2016, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was $7.45 versus $8.32 on December 31, 2015. The NAV of the Class U unit on March 31, 2016 was US$7.57 vs. US$8.07 on December 31, 2015.

Class A unitholders received distributions totaling $0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period.

The Class A units closing price on March 31, 2016 was $7.14 which represents a discount of 4.2% to its underlying net asset value. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity market performance was “A Tale of Two Cities” in the first quarter of 2016. From the start of the year up to the lows on February 11, 2106, most global indices over 10% due to concerns surrounding global growth. The WTI Crude Oil spot price declined over 30% during the same period. Since then, many markets have advanced over 10% erasing most if not all of the losses incurred earlier in the year as global macroeconomic indicators started to show some signs of improvement. By the end of the quarter, the S&P/TSX Composite advanced 4.5%, the S&P 500 Index advanced 1.3%, while the WTI Crude Oil spot price ended the period down only 0.5% to end at US$36.94 per barrel.

The Nasdaq 100 Equal Weighted Index ended lower during the period at 2,554.83 from 2,624.87 on December 31, 2015.

Stocks within the portfolio had varying returns led by Mattel Inc., which increased 25.3% during the quarter after being a laggard in performance for the prior two years. Netflix was the worst performing stock within the portfolio .

The first quarter was fairly volatile, the Chicago Board Options Exchange Volatility Index (“VIX”) breached the 30 levels three times during January and February as a global growth scare led to greater nervousness among investors. The Fund was active in its covered-call writing during the period and ended the quarter with 4.9% of the portfolio written vs. 2.6% at the end of the previous quarter. On average the Fund was written on about 17% during the quarter.

As investment opportunities arose, the Fund’s cash position was reduced as markets started to rally and at the end of the quarter the Fund had 4.5% of cash vs. 5.7% at the end of the previous quarter.

The manager became more concerned with the Fund’s exposure to the US dollar during the quarter and increased the hedge to 100% of the U.S. dollar exposure from 50% hedged at the end of 2015.

As of December 31, 2015, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was $8.32 versus $7.94 on September 30, 2015. The NAV of the Class U unit on December 31, 2015 was US$8.07 vs. US$7.89 on September 30, 2015.

Class A unitholders received distributions totaling $0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the same period.

The Class A units closing price on December 31, 2015 was $7.95 which represents a discount of 4.4% to its underlying net asset value. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets mostly advanced in the fourth quarter of 2015 with strong gains generated in October partially offset by weakness in December. The S&P 500 Index advanced 7.0% during the period, while the S&P/TSX Composite was an exception as it declined 1.4% due to weak commodity prices emanating from concerns surrounding slower growth in China and other emerging markets.

The Nasdaq 100 Equal Weighted Index increased during the period to 2,624.87 from 2,425.58 on September 30, 2015.

Stocks within the portfolio had varying returns led by NVIDIA Corporation, which increased 34.2% during the quarter and was up 13.8% alone on November 6, 2015 when it reported better than expected 3rd quarter earnings driven by strength in the PC gaming and automotive market. NXP Semiconductors, on the other hand, was a drag on performance, down over 16% during the period when it was held in the Fund, due to weak third-quarter revenue and guidance.

After a fairly volatile third quarter, the Chicago Board Options Exchange Volatility Index (“VIX”) declined in the fourth quarter to an average level of 17.1 for the period. The Fund was active in its covered-call writing during the period and ended the quarter with 2.6% of the portfolio written vs. 13.2% at the end of the previous quarter.

As investment opportunities arose, the Fund’s cash position was reduced during the period with an average cash position of 6.9% and ended the quarter at 5.7% vs. 23.9% at the end of the previous quarter.

The Fund ended the quarter with approximately 50% of the U.S. dollar exposure hedged back to the Canadian dollar.

On September 11, 2015, unitholders of the Fund approved a proposal to change the investment restrictions so that the Fund can invest in any equity security included in the NASDAQ-100 IndexSM (the “Index”) instead of being required to invest at least 75% of its net assets in the top 20 highest yielding constituents of the Index.

As of September 30, 2015, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN, was $7.94 versus $8.73 on June 30, 2015. The NAV of the Class U unit on September 30, 2015 was US$7.89 vs. US$8.80 on June 30, 2015.

Class A unitholders received distributions totaling $0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the quarter.

The Class A units closing price on September 30, 2015 was $7.85 which represents a discount of 1.1% to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets were down across the board in the third quarter of 2015 due to concerns surrounding slower growth in emerging market economies (most notably China) and the effects on global growth. Global indices were down anywhere from 6.9% for the S&P 500 Index to 28.6% for the Shanghai SE A Share market, with the flash crash on August 24th contributing most of the weakness. The resource heavy S&P/TSX Composite was also down 8.6% during the period, due to its dependence on emerging market’s demand for its resources.

The Nasdaq 100 Total Return Index declined during the period to 4,615.55 from 4,839.38 on June 30, 2015.

Stocks within the portfolio had varying returns led by two information technology companies, namely Facebook Inc. and NVIDIA Corporation, which increased 4.82% and 4.76% respectively for the Fund. Wynn Resorts continued to drag the performance, down 45.9% for the quarter and down 63.6% year-to-date. However, the Fund was able to avoid some of the massive decline by selling its entire position following the change in the investment strategy in mid-September. While the Fund did incur a decline of 28.6% in Wynn Resorts, it could have been worse if shareholders had not approved the change in the investment strategy.

Volatility was fairly subdued in July and the first half of August, but started to rise after the FOMC meeting in August when the minutes revealed there was less of chance for the Federal Reserve to embark on its first tightening cycle in over a decade. The Chicago Board Options Exchange Volatility Index (“VIX”) spiked over 45% to a level of 40.74 on August 24th, the same day as the flash crash when the Dow Jones Industrial Average was down more than 1,000 points intraday. The Fund was active in its covered-call writing during the period and ended the quarter with 13.2% of the portfolio written.

The Manager became more cautious and increased the Fund’s cash during the period. The Fund had an average cash position of 15.4% and ended the quarter at 23.9% vs. 3.0% in the previous quarter.

The Fund ended the quarter with approximately 70% of the U.S. dollar exposure hedged back to the Canadian dollar.

As of June 30, 2015, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was $8.73 versus $9.25 on March 31, 2015. The NAV of the Class U unit on June 30, 2015 was US$8.80 vs. US$9.22 on March 31, 2015.

Class A unitholders received distributions totaling $0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the quarter.

The Class A units closing price on June 30, 2015 was $8.77 which represents a premium of 0.5% to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets generated mixed returns in the second quarter of 2015 due to concerns surrounding whether Greece would exit the Eurozone or not. European markets felt most of the brunt of “Grexit” risk as the DAX 30 in Germany and CAC 40 in France declined 8.5% and 4.8% respectively. Although the Shanghai Class A market declined 7.2% in June, it was still the top performing market globally in the 2nd quarter, rising 14%.

The Nasdaq 100 Total Return Index increased slightly during the period to 4,839.4 from 4,756.4 on March 31, 2015.

Stocks within the portfolio had varying returns, led by Vodafone Group PLC which increased 15.2% during the period. Meanwhile, Wynn Resorts lagged the group considerably, down 21.3% as Macau’s gambling revenue continues to decline and the Company announced in April they would cut its dividend by 67% in order to conserve cash.

Volatility during the quarter remained towards the low end of the range it has traded in the past few years. The Fund has been selective in its covered call writing and ended the quarter with 12.7% of the portfolio written.

The Fund maintained a high investment position during the period and ended the quarter with a cash position of 3.0% vs. 2.4% at the end of the previous quarter.

The Fund also ended the period with approximately 80% of the U.S. dollar exposure hedged back to the Canadian dollar.

As of March 31, 2015, the Net Asset Value of the Class A unit was $9.25 vs. $9.79 on December 31, 2014. The NAV of the Class U unit on March 31, 2015 was US$9.22 vs. US$9.74 on December 31, 2014.

Class A unitholders received a regular distribution of $0.15 per unit during the quarter, while Class U unitholders received a regular distribution of US$0.15 per unit during the quarter.

The Class A units closing market price on March 31, 2015 was $9.12 which represents a discount of 1.4% to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets advanced in the first quarter of 2015, albeit at differing degrees as Europe, China and Japan led the way on optimism that recent quantitative easing measures by their respective central bank would have a similar effect that it did for U.S. markets.

The Nasdaq 100 Total Return Index increased during the period to 4,756.38 from 4,634.7 on December 31, 2014.

Stocks within the portfolio had varying returns led by Kraft Foods Group, which increased 39%. Kraft announced on March 25th it was being acquired by HJ Heinz Co., while, Mattel Inc. lagged the group, down 25.2% on declining sales for its Barbie and Fisher-Price brands.

After starting off 2015 at elevated levels, volatility slowly declined to end the first quarter at the low end of the range for the past few years. The Fund has been selective in its covered-call writing and ended the quarter with 36.7% of the portfolio written.

The Fund maintained a high investment position during the period and ended the quarter with a cash position of 2.4% vs. 1.2% at the end of the previous quarter. The Fund also ended the period with approximately 50% of the U.S. dollar exposure hedged back to the Canadian dollar.

As of December 31, 2014, the NAV of the Class A unit, NGI.UN was $9.79 versus $9.43 on September 30, 2014. The NAV of the Class U unit on December 31, 2014 was US$9.74 vs. US$9.37 on September 30, 2014.

Class A unitholders received distributions totaling $0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the quarter.

The Class A units closing price on December 31, 2014 was $9.58 which represents a discount of 2.1% to its underlying net asset value. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Most global equity markets retreated in the early part of the fourth quarter of 2014 on concerns around the U.S. Federal Reserve ending quantitative easing in October, a substantial decline in energy commodity prices as well as deflation risks surrounding Europe and Japan. However, most markets rebounded strongly into the end of the year as U.S. payrolls continued to strengthen and third quarter GDP in the U.S. came in well above expectations at 5%.

The Nasdaq 100 Total Return Index increased during the period to 4,634.71 from 4,418.35 on September 30, 2014. Stocks within the NDX Growth and Income Fund portfolio had varying returns during the quarter, led by office supply giant Staples Inc. (“Staples”) which increased 50.8% during the period. The stock jumped 8.7% on December 11th alone, after it was reported that activist hedge fund manager Starboard Value had bought a 51% stake in Staples and also increased its stake in Office Depot to 9.9%. On February 4, 2015, it was announced that Staples Inc. had entered into a definitive agreement to acquire Office Depot Inc. for US $5.67 billion. Meanwhile, VimpelCom, Ltd. (“VIP”) lagged the group again, down 41.8% during the period as concerns increased over the company’s high debt level after the company cut its dividend by 92% to $0.035 per share on November 17, 2014.

Volatility levels remained at the low end of the range for most of the period and the Fund was less active with its covered call writing. The Fund ended the quarter with 3.0% of the portfolio subject to covered calls.

The Fund maintained a high investment position during the majority of the period and ended the quarter with a cash position of 1.2% vs. 5.1% at the end of the previous quarter

The Manager remains very positive on companies within the NDX Growth and Income Fund due to their leverage to an improving U.S. and global economy, strong corporate earnings and balance sheets as well as their ability to continue to return more capital to shareholders in the form of increasing dividends and share buybacks.

As of September 30, 2014, the NAV of the Class A unit, NGI.UN was $9.43 versus $9.66 on June 30, 2014. The NAV of the Class U unit on September 30, 2014 was US$9.37 vs. US$9.63 on June 30, 2014.

Class A unitholders received distributions totaling $0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the quarter.

The Class A units’ closing market price on the Toronto Stock Exchange (TSX) as of September 30, 2014 was $9.20 which represents a discount of 2.4% to its underlying net asset value. The Fund’s Class U units are not listed on the TSX.

Many global equity markets reached all-time highs during the third quarter of 2014 before retreating into the end of the period due to concerns about slowing global growth as well as deflation risks surrounding Europe and Japan. U.S. equities outperformed Canadian and International stocks during the period, especially when converted into Canadian dollars as the U.S. dollar rose 4.7% vs. the Loonie.

The Nasdaq 100 Total Return Index increased during the period to 4,418.35 from 4186.87 on June 30, 2014. Stocks within the NDX Growth and Income Fund had varying returns during the quarter led by Intel Corporation (“INTC”), which increased 13.5% during the period. The stock jumped 9% on Wednesday, July 16th alone, after reporting second quarter net income of $2.8 billion and earnings per share of $0.55, both up 40% and 41%, respectively. Meanwhile, Mattel, Inc. (“MAT”) lagged the group, down 20.5% during the period as second quarter revenues and earnings came in below consensus expectations as Barbie sales declined 15% in the quarter.

Volatility levels remained at the low end of the range for most of the period but did start to rise towards the end of September as the S&P 500 started to sell off after reaching an all-time high on September 19, the same day that Chinese e-commerce company Alibaba became the biggest initial public offering ever. The fund was less active with its covered call writing for most of the period but did increase the call writing into the end of September as volatility rose. The Fund ended the quarter with 3.6% of the portfolio subject to covered calls.

The fund maintained a high investment position during the majority of the period and ended the quarter with a cash position of 5.1% vs. 2.3% at the end of the previous quarter

The Manager remains very positive on companies within the NDX Growth and Income Fund portfolio due to their leverage to an improving U.S. and global economy, strong corporate earnings and balance sheets as well as their ability to continue to return more capital to shareholders in the form of increasing dividends and share buybacks.

As of June 30, 2014, the net asset value (“NAV”) of the Class A unit, NGI.UN was C$9.66 versus C$9.54 on March 31, 2014. The NAV of the Class U unit on June 30, 2014 was US$9.63 vs. US$9.52 on March 31, 2014.

Class A unitholders received distributions totaling C$0.15 per unit during the quarter, while Class U unitholders received distributions totaling US$0.15 per unit during the quarter.

The Class A units closing price on June 30, 2014 was C$9.14 which represents a discount of 5.4% to its underlying NAV. The Fund’s Class U units are not listed.

After posting mixed returns during the first quarter of 2014, global equity markets resumed their uptrend in the second quarter, as economic data out of the United States started to rebound from the weakness driven by harsh weather experienced this past winter.

The Nasdaq 100 Total Return Index increased during the period to 4,187.87 from 3,897.72 on March 31, 2014. Stocks within the NDX Growth and Income Fund had varying returns during the quarter led by trucking and logistics giant C.H. Robinson Worldwide Inc. (CHRW), which increased 22.5%, mostly after reporting better than expected first quarter results. Meanwhile, VimpelCom Ltd. (VIP) lagged the group for the second consecutive quarter, down 7% during the period due mostly to the continuing Russia – Ukraine tensions as VIP has almost 40% of its telecom revenues coming from Russia.

Volatility levels remained at the low end of the historical range during the period. Due to the low level of volatility, the Fund continued to be less active with its covered call writing during the period and ended with 6.6% of the portfolio subject to covered calls.

The Fund maintained a high investment position during the majority of the period and ended the quarter with a cash position of 2.3% vs. 1.8% in the previous quarter.

The Manager remains very positive on companies within the NDX Growth and Income Fund due to their leverage to an improving U.S. and global economy, strong corporate earnings and balance sheets as well as their ability to continue to return more capital to shareholders in the form of increasing dividends and share buybacks.

As of March 31, 2014, the Net Asset Value (“NAV”) of the Class A unit, NGI.UN was C$9.54 versus C$9.44 on December 31, 2013. The NAV of the Class U unit on March 31, 2014 was US$9.52 vs. US$9.44 on December 31, 2013.

Class A unitholders received distributions totaling C$0.1712 per unit during the quarter, while Class U unitholders received distributions totaling US$0.1712 per unit during the quarter.

The Class A units’ closing price on March 31, 2014 was C$9.70 which represents a premium of 1.7% to its underlying NAV. The Fund’s Class U units are not listed on any stock exchange.

After performing strongly in 2013, global equity markets posted mixed returns for the first quarter of 2014 due to geo-political tension between Ukraine and Russia as well as concerns that U.S. Federal Reserve might start to raise interest rates sooner than expected.

The Nasdaq 100 Total Return Index increased slightly during the period to 3,897.72 from 3,881.55 on December 31, 2013. Stocks within the NDX Growth & Income Fund had varying returns during the quarter led by Garmin Ltd. (GRMN) which increased 20.6% on better than expected 4th quarter results while VimpelCom Ltd. (VIP) lagged the group, down 30.2% during the period due mostly to its exposure to the Russian telecom market with almost 40% of its revenues coming from Russia.

Volatility levels rose briefly at the end of January to around 21.5 after it was reported that Russian troops were occupying Crimea, an autonomous republic of Ukraine. The CBOE SPX Volatility Index (VIX) averaged just under 15 for the first quarter of 2014. Due to the low level of volatility, the Fund was not very active with its covered call writing during the period and ended with approximately 12% of the portfolio subject to covered calls.

After closing the Fund on December 19, 2013, the Fund’s proceeds were fully invested by the end of January 2014. The Fund maintained a high investment position during the period and ended the quarter with a cash position equal to 1.8% of its NAV.

The Manager remains very positive on companies within the portfolio universe of NDX Growth & Income Fund due to their leverage to an improving U.S. and global economy, strong corporate earnings and balance sheets as well as their ability to continue to return more capital to shareholders in the form of increasing dividends and share buybacks. All of this while at the same time trading at attractive valuations on both an absolute and relative basis.

As of December 31, 2013, the NAV of the Class A unit, NGI.UN was $9.44 versus the initial NAV of $9.32 on the closing date of December 19, 2013. The NAV of the Class U unit on December 31, 2012 was US$9.44 vs. US$9.33 on December 19, 2013. The Class A units closing price on December 31, 2013 was $9.96 which represents a premium of 5.5% to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

No distributions were paid during the period as the first quarterly distribution is scheduled for March 31, 2014 and will be pro-rated to reflect the period from the closing date on December 19, 2013 until March 31.2014.

Global equity markets continued to advance in the fourth quarter of 2013 with many indices finishing the year at new all-time highs reflecting improved global economic data and accommodative central bank monetary policy.

During the period starting December 19, 2013, the Nasdaq 100 Total Return Index increased from 3,791.48 to 3,881.55 on December 31, 2013. Stocks within its portfolio had varying returns led by Cisco Systems Inc. (“CSCO”) which increased 6.81% while, Maxim Integrated Products, Inc. (“MXIM”) lagged the group, down 1.8%.

Volatility levels remained low for the period with the CBOE SPX Volatility Index (“VIX”) back to levels not seen since 2007. The Fund wrote no calls during the period.

As at December 31, 2013, the Fund was about 60% invested as the trading liquidity during the holidays declined and the Manager decided to resume investing the proceeds of the offering throughout January 2014.

The Manager remains very positive on the securities comprising the portfolio due to their leverage to an improving U.S. and global economy, strong corporate earnings and balance sheets as well as their ability to continue to return more capital to shareholders in the form of increasing dividends and share buybacks. All of this while at same time trading at attractive valuations on both an absolute and relative basis.

Redemption Deadlines
Units may be surrendered at any time for redemption, but will be redeemed only on a Redemption Date, being the last business day of any month. Units surrendered for redemption by a Unitholder on or before the first business day of December 2015 or any year thereafter (the “Annual Redemption Deadline”) will be redeemed on the last business day of December (the “Annual Redemption Date”). Units surrendered for redemption by a Unitholder at least ten business days prior to the last day of any other month (a “Monthly Redemption Date”), will be redeemed on such Monthly Redemption Date. Unitholders will receive payment for the Units on or before the 15th day following any such Redemption Date. If a Unitholder surrenders Units after 5:00 p.m. (EST) on the applicable cut-off date, the Units will be redeemed on the following Redemption Date. Redemption notices must be delivered to the Fund by an investor’s advisory firm in sufficient time to meet the deadline.

Annual Redemption
Beginning in December 2015, units surrendered for redemption on or before the first business day of December will be redeemed at 100% of each respective unit’s net asset value less costs, valued on the last business day of December being the redemption day. Costs may include an amount equal to the aggregate of all brokerage fees, commissions and other costs incurred by the Fund in connection with such payment, including, but not limited to, costs incurred in liquidating securities held in the Fund’s portfolio. Payment will be received on or before the 15th day following the redemption day. Redemption proceeds will be payable in Canadian dollars to holders of Class A Units and in U.S. dollars to holders of Class U Units.

Monthly Redemption
For Unitholders whose Units are redeemed on any other Redemption Date, the redemption price per Unit will be equal to the lesser of:

1. a) 95% of the Market Price. For such purposes, “Market Price” means the weighted average trading price of the Units on the principal stock exchange on which the Units are listed for the ten trading days immediately preceding the applicable Redemption Date, and
2. b) 100% of the Closing Market Price of the Units on the applicable Redemption Date, minus an amount equal to the aggregate of all brokerage fees, commissions and other costs incurred by the Fund in connection with such payment, including, but not limited to, costs incurred in liquidating securities held in the Fund’s portfolio. For such purposes, the “Closing Market Price” means the closing price of the Units on the principal stock exchange on which the Units are listed or, if there was no trade on the relevant date, the average of the last bid and the last asking prices of the Units on the principal stock exchange on which the Units are listed.

For Unitholders whose Class U Units are redeemed on a Monthly Redemption Date, the Redemption Price per Class U Unit will be the U.S. dollar amount calculated as the Class A Monthly Redemption Price (converted to U.S. dollars at the Reference Exchange Rate on the Monthly Redemption Date) multiplied by a fraction, the numerator of which is the NAV per Class U Unit and the denominator of which is the NAV per Class A Unit (converted to U.S. dollars at the Reference Exchange Rate on the Monthly Redemption Date).

Any unpaid distribution payable on or before the applicable Redemption Date in respect of Units tendered for redemption on such Redemption Date will also be paid on the applicable Redemption Payment Date.