U.S. Financials Income Fund

As at March 31, 2021, the Net Asset Value (“NAV”) of the Class A unit, USF.UN, was $6.25 versus $5.78 on December 31, 2020. The NAV of the Class U unit on March 31, 2021 was US$6.73 vs. US$6.17 on December 31, 2020.
Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.
The Class A units’ closing price on March 31, 2021 was $6.00 which represents a 4.0% discount to its underlying net asset value. The Fund’s Class U units are not listed on the Toronto Stock Exchange.
The first quarter of 2021 was marked by continued strength in North American equity markets which closed at or near all-time highs on expectations the rollout of vaccines around the world will lead to strong global GDP growth and corporate earnings in 2021. Central banks, in the meantime, remained committed to a policy of monetary easing in spite of stronger economic growth and inflation numbers, while governments continue to pass significant stimulus packages despite substantial deficits.
During the period, the total returns for the Financial, Real Estate, and Private Equity companies were 14.1%, 7.4%, and 9.3% (all in CAD$) respectively. Stocks within the portfolio had varying returns led by Goldman Sachs, which rose 24.5% during the period, while Intercontinental Exchange, Inc. declined 5.2%, while held in the Fund.
Volatility, as measured by the CBOE Volatility Index (“VIX”), continued to decline in the first quarter, with the exception of late January as the so-called “Reddit Rally” fueled fierce price jumps in stocks such as Gamestop and AMC before regulators stepped in to limit trading. The manager continued to be opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy. On average, 17.4% of the portfolio was written during the period vs. 14.3% during the previous quarter.
The Fund had an average cash position of 2.0% during the quarter vs. 6.7% during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter approximately 50% hedged back into Canadian dollars.

As at December 31, 2020, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $5.78 versus $5.46 on September 30, 2020. The NAV of the Class U unit on December 31, 2020 was US$6.17 vs. US$5.67 on September 30, 2020.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing mid-price on December 31, 2020 was $5.49 which represents a 5.0% discount to its underlying net asset value. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

North American equity markets started off the fourth quarter with some trepidation as investors became increasingly concerned about the uncertainty of the U.S. election on November 3rd as well as the rise of new Covid-19 cases around the Globe. By early November, with the election results in and more importantly, promising vaccine news from two companies in dealing with the virus, markets rallied significantly and trended higher into the end of the year.

During the period the total return for the Financial, Real Estate and Private Equity companies was 18.2%, 0.7% and 17.8% (all in CAD$) respectively. Stocks within the portfolio had varying returns led by Morgan Stanley, which rose 42.8% during the period, while S&P Global Inc. declined 11.4%, while held in the portfolio.

Volatility as measured by the CBOE Volatility Index (“VIX”) remained subdued for the fourth quarter with the exception of late October as markets sold off on election concerns. The manager continued to be opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy as the Fund had on average 14.3% of portfolio written during the period vs. 18.1% on average during the previous quarter.

The Fund has an average cash position of 5.9% for the quarter vs. 6.7% during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter 50% hedged back into Canadian dollars.

As at September 30 ,2020, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $5.46 versus $5.62 on June 30, 2020. The NAV of the Class U unit on September 30, 2020 was US$5.67 vs. US$5.77 on June 30, 2020.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing mid-price on September 30, 2020 was $5.11 which represents a 6.4% discount to its underlying net asset value. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

North American equity markets continued their impressive rally from the second quarter of 2020, as investors believe that central banks and governments will continue with unprecedented stimulus. Markets corrected in September though as the leadership groups such as mega cap technology, discretionary and communication services paused. The third quarter total return for S&P/TSX Index was 4.7% while the S&P 500 Index rose 8.9%.

During the period the total return for the Financial, Real Estate and Private Equity companies was 2.1%, -0.4% and 0.6% (all in CAD$) respectively. Stocks within the portfolio had varying returns led by First Republic Bank, which rose 15.2% during the period. At the other end of the spectrum, S&P Global Inc. declined 3.6% during the period.

Volatility as measured by the CBOE Volatility Index (“VIX”) drifted lower for the quarter but remained high relative to levels experienced pre-COVID 19. In fact, volatility has never been higher when the S&P 500 reached new highs as it is exhibiting now. The manager continued to be opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy as the Fund had on average 18.1% of portfolio written during the period vs. 18.7% on average during the previous quarter.

The Fund has an average cash position of 6.7% for the quarter vs. 11.1% during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter 50% hedged back into Canadian dollars.

As at June 30, 2020, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $5.62 versus $5.44 on March 31, 2020. The NAV of the Class U unit on June 30, 2020 was US$5.77 vs. US$5.46 on March 31, 2019.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on June 30, 2020 was $5.17 which represents an 8.0% discount to its underlying net asset value. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

North American equity markets surged after a volatile first quarter of 2020 as investors believe central banks around the world will continue with unprecedented stimulus. The S&P/TSX Index rose 17.0% while the S&P 500 Index rose 20.5%. In Canada, Technology stocks led the advance with a 68% return in the quarter while Communication stocks were the only group in the red, down 1%. In the U.S., every group had positive performance in the second quarter with Consumer Discretionary stocks returning the most, up 33%

During the period the Financial and Real Estate companies underperformed the broader market but still posted strong total returns of 12.2% and 13.2% respectively, while the Private Equity companies outperformed with a total return of 27.5%. However, these returns in Canadian dollar be less as the U.S. dollar declined by 4.51% vs. the Canadian dollar during the period. The total return for the Fund during the period was 5.5% for the Class A and 8.0% for the Class U units. Stocks within the portfolio had varying returns led by Apollo Global Management Inc., which was up 38.8% during the period, followed by E-Trade Financial which was up 37% while held in the Fund. At the other end of the spectrum, First Republic Bank Corp. declined 7.3% during the period.

Volatility, as measured by the CBOE Volatility Index (“VIX”), declined for most of the period as markets recovered significantly from the lows in March. However, volatility remains elevated relative to levels experience over the past few years. As a result, the manager remained active with the Strathbridge Selective Overwriting (“SSO”) strategy as the Fund had on average 18.7% of portfolio written during the period and ended June 30, 2020 with 43.7% of the portfolio subject to covered calls.

The Fund had an average cash position of 11.1% during the quarter vs. 6.7% during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter approximately 50% hedged back into Canadian dollars.

As at March 31 ,2020, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $5.44 versus $7.51 on December 31, 2019. The NAV of the Class U unit on March 31, 2020 was US$5.46 vs. US$7.83 on December 31, 2019.
Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.
The Class A units closing price on December 31, 2019 was $5.66 which represents a 4.0% premium to its underlying net asset value. The Fund’s Class U units are not listed on the Toronto Stock Exchange.
The volatility experienced in the first quarter of 2020 has been truly historic across all asset classes as global markets and economies have been gripped by the pandemic COVID-19 (Coronavirus) which has infected over 2 million plus individuals to date while causing over 129,000 fatalities so far. After reaching all-time highs in the third week of February 2020, North American equity markets declined in the mid-30% range to the low reached on March 23rd, before rallying 15%-20% to end the quarter. Central banks and governments around the globe have responded with unprecedented monetary and fiscal policies to prop up economies and keep funding markets open.
The total return for the S&P/TSX Composite Index during the first quarter was -20.9%, while S&P 500 Index had a total return of -19.6%. All eleven sectors in the S&P/TSX Composite Index declined in the first quarter with the Information Technology sector outperforming, but still down 3.7%, while the Energy sector continued its underperformance of the past few years, declining 37.2% as the price of oil, as measured by WTI Cushing OK Spot, dropped 66.5%. In the U.S., the Information Technology sector also outperformed but still declined 11.9%, while the Energy sector was also the worst performing south of the border, down 50.5%.
During the period the total return for the Fund was -25.9% compared to the S&P 500 Financials Index total return of -31.2%, the S&P 500 Real Estate Sector Index was -19.2%, while the S&P Listed Private Equity Index was down -34.3%. Stocks within the portfolio had varying returns led by BlackRock, Inc., which declined 11.8% during the period. At the other end of the spectrum, Citigroup, Inc. declined 46.9% during the period.
Volatility, as measure by the CBOE Volatility Index (“VIX”), spiked as markets corrected, reaching a high of 85.5 on March 18th, the highest level since October 2008 during the Great Financial Crisis. Due to the high volatility, the manager was more aggressive with the Strathbridge Selective Overwriting (“SSO”) strategy as the Fund had on average 27.5% of portfolio written during the period vs. 22.2% on average during the previous quarter.
The Fund had an average cash position of 6.7% during the quarter vs. 6.4% during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter approximately 50% hedged back into Canadian dollars.

As at December 31 ,2019, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $7.51 versus $7.37 on September 30, 2019. The NAV of the Class U unit on December 31, 2019 was US$7.83 vs. US$7.57 on September 30, 2019.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on December 31, 2019 was $7.36 which represents a 2.0% discount to its underlying net asset value. 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 three quarters of 2019 with most indices ending the year near all-time highs. U.S. markets led the way in the fourth quarter on expectations a trade resolution between the U.S. with China was to be announced in early 2020. The total return for the S&P/TSX Index in the fourth quarter was 3.2%, while the S&P 500 Index had a total return of 9.1%. In Canada, 7 of 11 sectors generated a positive total return for the quarter, with Information Technology sector leading the way up 10.8%, while Health Care lagged for the third consecutive quarter, down 5.9%, as Cannabis stocks continued to decline. The U.S. market saw 10 of 11 sectors generate positive performance, with the Information Technology sector also leading the way, up 14.4%, while the defensive Real Estate sector lagged during the quarter, down 0.5%.

During the period the total return for the S&P 500 Financials Index was 8.2%, the S&P 500 Real Estate Sector Index was -2.5%, while the S&P Listed Private Equity Index was up 7.2% (all in CAD$). Stocks within the portfolio had varying returns led by Bank of America Corporation, which rose 21.4% during the period. At the other end of the spectrum, The Travelers Companies, Inc. declined 11.7% while held in the Fund.

Volatility levels as measured by the CBOE SPX Volatility Index (“VIX”) were at the low end of the range for most of the period. The manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy as the Fund had on average 22.2% of portfolio written during the period vs. 20.3% on average during the previous quarter.

The Fund had an average cash position of 6.4% during the quarter vs. 5.1% during the previous quarter. The Fund ended the period with a cash position of 1%. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter 50% hedged back into Canadian dollars.

As at September 30 ,2019, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $7.37 versus $7.43 on June 28, 2019. The NAV of the Class U unit on September 30, 2019 was US$7.57 vs. US$7.68 on June 28, 2019.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on September 30, 2019 was $7.57 which represents a 2.7% premium to its underlying net asset value. 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 half of 2019, as markets in the third quarter continued to price in expectations that central banks around the world would be more accommodative with interest rate cuts. The S&P/TSX Index rose 2.5% while the S&P 500 Index rose 1.7%. In Canada, 9 of 11 sectors were positive for the quarter, with the defensive TSX Utilities Index leading the way up 10.1%, while Health Care lagged for the second consecutive quarter, down 30%, weighed down significantly by Cannabis stocks. The U.S. market saw 8 of 11 sectors generate positive performance, with the defensive S&P 500 utilities sector leading the way, up 9.3%, while the Energy sector remained the laggard during the quarter, down 6.3%.

During the period the total return for the S&P 500 Financials Index was 3.2%, the S&P 500 Real Estate Sector Index was 8.9%, while the S&P Listed Private Equity Index was up 5.5% (all in CAD$). Stocks within the portfolio had varying returns led by The Blackstone Group Inc., which rose 11.0% during the period. At the other end of the spectrum, Ameriprise Financial Inc. declined 9.1% while held in the Fund.

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 August as equity markets pulled back on trade war concerns and the potential effect on the economy. The manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy as the Fund had on average 20.3% of portfolio written during the period vs. 26.1% on average during the previous quarter.

The Manager remained conservative during the period with an average cash position of 5.1% for the quarter vs. 14.2% during the previous quarter. The Fund ended the period with a cash position of 8.2%. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter 50% hedged back into Canadian dollars.

As at June 28,2019, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $7.43 versus $7.30 on March 29, 2019. The NAV of the Class U unit on June 28, 2019 was US$7.68 vs. US$7.45 on March 29, 2019.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on June 28, 2019 was $7.16 which represents a 1.9% discount to its underlying 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 9.3%. 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%.

During the period the total return for the S&P 500 Financials Index was 5.8%, the S&P 500 Real Estate Sector Index was 0.4%, while the S&P Listed Private Equity Index was up 7.9% (all in CAD$). Stocks within the portfolio had varying returns led by The Blackstone Group Inc., which rose 28.2% during the period. At the other end of the spectrum, Iron Mountain Inc. declined 9.9% while held in the Fund.

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 corrected 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 23.4% of portfolio written during the period vs. 18.3% on average during the previous quarter.

The Manager remained conservative during the period with an average cash position of 14.3% for the quarter vs. 11.7% during the previous quarter. The Fund ended the period with a cash position of 4.7%. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter 50% hedged back into Canadian dollars.

As at March 29, 2019, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $7.30 versus $7.16 on December 31, 2018. The NAV of the Class U unit on March 29, 2019 was US$7.45 vs. US$7.19 on December 31, 2018.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on March 29, 2019 was $7.16 which represents a 1.9 percent discount to its underlying 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.

During the period the total return for the S&P 500 Financials Index was 6.5 percent, the S&P 500 Real Estate Sector Index was positive 15.3 percent, while the S&P Listed Private Equity Index was up 14.3 percent (all in CAD$). Stocks within the portfolio had varying returns led by the Kimco Realty Corp, which rose 26.3 percent during the period. At the other end of the spectrum, the CME Group Inc. declined 5.5 percent while held in the Fund.

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 18.3 percent of portfolio written during the period vs. 21.6 percent on average during the previous quarter.

The Manager reduced the cash position during the period with the Fund’s average cash position at 11.7 percent for the quarter vs. 21.4 percent during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter 50 percent hedged back into Canadian dollars.

As at December 31, 2018, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $7.16 versus $7.81 on September 28, 2018. The NAV of the Class U unit on December 31, 2018 was US$7.19 vs. US$7.95 on September 28, 2018.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price December 31, 2018 was $6.81 which represents a 4.9% discount to its underlying net asset value. 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/TSX Index declining 10.1% while the S&P 500 Index declined 13.5%, weighed down by the implications of tighter global monetary policy, trades wars, soaring valuations along with heightened geopolitical risks. In Canada, 8 of 11 sectors were negative for the quarter, with Health Care leading the way down, producing a negative 35.3% return, mostly due to weakness in the Cannabis sector. 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%.

During the period the total return for the S&P 500 Financials Index was negative 8.5%, the S&P 500 Real Estate Sector Index was positive 1.3%, while the S&P Listed Private Equity Index was negative 13.1% (all in CAD$). Stocks within the portfolio had varying returns led by the CME Group, which rose 12.0% during the period. At the other end of the spectrum, KKR & Co. Inc. declined 27% while held in the Fund.

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 21.6% of portfolio written during the period vs. 8.1% on average during the previous quarter.

The Manager became more cautious during the period and increased the Fund’s average cash position to 21.4% for the quarter vs. 6.3% during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the year 50% hedged back into Canadian dollars.

As September 28, 2018, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $7.81 versus $7.96 on June 29, 2018. The NAV of the Class U unit on September 28, 2018 was US$7.95 vs. US$8.02 on June 29, 2018.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price September 28, 2018 was $7.69 which represents a 1.5% discount to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

North American markets were mixed in the 3rd quarter, with the Canadian S&P/TSX Index declining 0.6% and the U.S. S&P 500 Index gaining 7.7%. In the Canadian market, 6 of 11 sectors were positive for the quarter, with Health Care leading the way up 31.1% due to strength in the Cannabis sector. 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.

During the period the total return for the S&P 500 Financials Index was 2.7%, the S&P 500 Real Estate Sector Index was negative 0.7%, while the S&P Listed Private Equity Index was 4.2% (all in CAD$). Stocks within the portfolio had varying returns led by insurance broker AON PLC., which rose 12.4% during the period. At the other end of the spectrum, State Street Corp declined 5.7% while held in the Fund.

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 8.1% of portfolio written during the period vs. 13.4% on average during the previous quarter.

The Fund held an average cash position of 6.3% during the period vs. 7.6% 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 June 29, 2018, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $7.96 versus $8.41 on March 29, 2018. The NAV of the Class U unit on June 29, 2018 was US$8.02 vs. US$8.47 on March 29, 2018.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price June 29, 2018 was $7.71 which represents a 3.1% discount to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

After a tumultuous first quarter of 2018, North American equities were more constructive in the second quarter with some indices moving to new all-time highs. After lagging most other global indices in the first quarter, the S&P/TSX Composite Index was one of the strongest markets in the second quarter with a total return of 6.75%, while in the U.S., the S&P 500 Index was up 3.43% and the NASDAQ Composite Index was up 6.6%. Meanwhile the MSCI EAFE Index was flat and the MSCI Emerging Markets Index was down during the period on concerns surrounding trade and tariffs.

During the period the total return for the S&P 500 Financials Index was -3.2%, the S&P 500 Real Estate Sector Index was 6.1%, while the S&P Listed Private Equity Index was 3.1%. Stocks within the portfolio had varying returns led by alternative asset manager KKR & Co. Inc., which rose 23.3% during the period, with most of the return coming after May 3rd when the company announced that it was going to switch from a partnership to a corporation on July 1st. At the other end of the spectrum, Morgan Stanley declined 11.7% while held in the Fund.

After spiking above 50 in early February, volatility, as measured by the Chicago Board Options Exchange Volatility Index (“VIX”) drifted back towards the low levels witnessed over the past few years. The Fund still opportunistically wrote call options during the period as the Fund on average had 13.4% of portfolio written vs. 9.8% during the previous quarter.

The Fund held an average cash position of 7.6% during the period vs. 6.1% during the previous quarter. The U.S. dollar exposure was 50% hedged back into Canadian dollars throughout the period.

As of March 29, 2018, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $8.41 versus $8.51 on December 29, 2017. The NAV of the Class U unit on March 29, 2018 was US$8.47 vs. US$8.67 on December 29, 2017.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price March 29, 2018 was $8.14 which represents a 3.2% discount to its underlying 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 of 2018, on fears surrounding rising interest rates, trade policy and market valuations. The S&P/TSX Composite Index lagged most other indices losing 4.5%, while in the U.S., the S&P 500 Index was down 0.76% and the international MSCI EAFE Index was down 1.58%.

During the period the S&P 500 Financials Index declined 0.95%, the S&P 500 Real Estate Sector Index declined 5.0% while the S&P Listed Private Equity Index declined 3.2%. Stocks within the portfolio had varying returns led by CME Group Inc., which rose 11.2% during the period. At the other end of the spectrum, Affiliated Managers Group declined 12.2% while held in the Fund.

Volatility, as measured by the Chicago Board Options Exchange Volatility Index (“VIX”) picked up in the first quarter of 2018 after touching new all-time lows in late November 2017. As a result, the call writing activity picked up as the Fund on average had 9.8% of portfolio written during the period vs. 3.0% on average during the previous quarter.

The Fund ended the quarter with a cash position of 7.5% vs. 3.5% for the previous quarter. The U.S. dollar exposure was 50% hedged back into Canadian dollars throughout the period.

As of December 29, 2017, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $8.51 versus $8.23 on September 29, 2017. The NAV of the Class U unit on December 29, 2017 was US$8.67 vs. US$8.38 on September 29, 2017.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on December 29, 2017 was $8.39 which represents a 1.4% discount to its underlying net asset value. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets rallied strongly in the fourth quarter of 2017, with many indices closing the year at or near new all-time highs. The Dow Jones Industrial Average was one of the strongest performing indices in the fourth quarter with a total return of 11.0%, while the NASDAQ Composite Index in the U.S. was up 7.3%. Here in Canada, the S&P/TSX Composite Index which had lagged most other indices in the first three quarters of 2017, generated a total return of 4.4% in the fourth quarter.

During the period the S&P 500 Financials Index rose to 463.94 from 429.08, the S&P 500 Real Estate Sector Index rose to 203.86 from 199.20, while the S&P Listed Private Equity Index rose to 145.15 from 143.97 on September 29, 2017. Stocks within the portfolio had varying returns led by Bank of America Corp., which rose 17.0% during the period. This was somewhat offset by our holding in AON PLC, which declined 6.3% while held in the Fund.

Volatility levels, as measure by the Chicago Board Options Exchange Volatility Index (“VIX”) remained at the lower end of its historical range, touch new all-time lows in late November, which adds to the challenge of overwriting. However, this low level of volatility and the manager’s favourable view on the market provided an opportunity to purchase calls options on select names while limiting the call writing activity over the period. The Fund on average had 3% of portfolio written during the period vs. 4.1% on average during the previous quarter.

The Fund ended the quarter with a cash position of 3.5% vs. 3.1% for the previous quarter.

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

As of September 29, 2017, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $8.23, unchanged from June 30, 2017. The NAV of the Class U unit on September 29, 2017 was US$8.38 vs. US$8.36 on March 31, 2017.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on September 29, 2017 was $8.28 which represents a $0.05 premium to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets for the most part maintained or continued their strong first half rally through the third quarter of 2017. The MSCI Emerging Markets Index was again one of the strongest performing indices in the third quarter with a total return of 8.0%, while the S&P 500 Index in the U.S. was up 4.5%. Here in Canada, the S&P/TSX Composite Index bounced back, rising 4.1 % after declining by 1.6% in the second quarter.

During the period the S&P 500 Financials Index rose to 429.08 from 409.59, while the S&P 500 Real Estate Sector Index remained relatively flat at 199.20 from 199.01 on June 30, 2017. Stocks within the portfolio had varying returns led by Ameriprise Financial Inc., which rose 12.0% during the period. This was somewhat offset by our holding in M & T Bank Corporation, which declined 11.6% while held in the Fund.

Volatility remained subdued overall during the period with only a few days where it spiked towards 16. Due to our favourable view on the market as well as the low level of volatility, the call writing activity was limited over the period. The Fund on average had 4.1 percent of the Fund subject to covered calls vs. 8.8 percent the previous quarter.

The Fund ended the quarter with a cash position of 3.1% vs. 4.9% for the previous quarter.

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 3.9 % 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, USF.UN was $8.23 versus $8.13 on March 31, 2017. The NAV of the Class U unit on March 31, 2017 was US$8.36 vs. US$8.19 on March 31, 2017.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on June 30, 2017 was $8.07 which represents a discount of 1.9% to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets for the most part maintained or continued their strong first quarter rally through the second quarter of 2017. The MSCI Emerging Markets Index was one of the strongest performing indices in the second quarter with a total return of 6.4%, while the S&P 500 Index in the U.S. was up 3.1%. Here in Canada, the S&P/TSX Composite Index declined 1.6% as weakness in the energy and materials sectors dragged down the performance.

The Health Care sector was by far the best performing sector in Canada and the U.S. in the second quarter of 2017 with returns of 13.4% and 7.1% respectively. Meanwhile the Energy sector remained the worst performing sector in Canada in the second quarter with a total return of -8.3% while the Telecommunication Services sector was the worst performing sector in the U.S. with a total return of -7.1%.

During the quarter the S&P 500 Financials Index rose to 409.59 from 394.58, while the S&P 500 Real Estate Sector Index rose to 199.01 from 195.41 on March 31, 2017. Stocks within the portfolio had varying returns led by The Blackstone Group L.P., which rose 15.4% during the period. This was somewhat offset by our holding in Wells Fargo & Company, which declined 6.3% while held in the Fund.

While volatility remained subdued overall, it spiked for a brief period in the middle in April and May before drifting back toward historically low levels. The call writing activity was opportunistic over the period and took advantage of signals generated by the Strathbridge Selective Overwriting (“SSO”) strategy. The Fund ended June 30, 2017 with 2.4 percent of the Fund subject to covered calls, the same amount as at the end of the previous quarter.

The Fund ended the quarter with a cash position of 4.9% vs. 1.8% for the previous quarter.

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, USF.UN was $8.13 versus $8.32 on December 30, 2016. The NAV of the Class U unit on March 31, 2017 was US$8.19 vs. US$8.28 on December 30, 2016.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the same quarter.

The Class A units closing price on March 31, 2017 was $7.86 which represents a discount of 3.3% to its underlying 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%. Here in Canada, the S&P/TSX Composite Index rose 2.4%.

The Financials sector which was by far the best performing sector in Canada and the U.S. during the fourth quarter of 2016 on expectations of higher net interest margins and less regulation gave way to the Information Technology and Consumer Discretionary sectors in the first quarter of 2017. Meanwhile, the Energy sector which was one of the best performing sectors in 2016 has been one of the worst performing sectors so far in 2017.

During the quarter, the S&P 500 Financials Index rose to 3394.58 from 386.53 on December 30, 2016. Stocks within the portfolio had varying returns, led by KKR & Co L.P. which rose 19.5% during the period. This was somewhat offset by our holding in Simon Property Group Inc., which declined 5.5% while held in the Fund.

Volatility as measured by the CBOE Volatility Index (VIX) remained at the low end of the range it has been trading at over the past few years, namely in the 10.5% to 13.0% range. The Fund stayed open on most of the portfolio during the period but did selectively write some covered calls and ended the quarter with 2.4% of the portfolio written vs. 2.6% at the end of the previous quarter.

The Fund ended the quarter with a cash position of 1.7% vs. 3.4% for the previous quarter.

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

As of December 30, 2016, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $8.32 versus $7.20 on September 30, 2016. The NAV of the Class U unit on December 30, 2016 was US$8.28 vs. US$7.18 on September 30, 2016.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on December 30, 2016 was $8.08 which represents a discount of 2.9% 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%.

During the quarter, the S&P 500 Financials Index rose to 386.53 from 320.82 on September 30, 2016. The Financials sector was by far the best performing sector in the fourth quarter on expectations of a steeper yield curve and less regulation. Stocks within the portfolio had varying returns led by Goldman Sachs Group Inc., which rose 48.9% during the period. This was offset by our holding in KKR & Co. LP, a Private Equity firm which declined 12.5% while held 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 stayed open on most of the portfolio during the period but did selectively write some covered calls and ended the quarter with 2.6% of the portfolio written vs. 4.6% at the end of the previous quarter.

The Fund ended the year with a cash position of 3.4% vs. 7.6% for the previous quarter.

The U.S. dollar was mostly hedged back into Canadian dollars throughout the period and ended December with approximately 50% of the U.S. dollar exposure hedged.

As of September 30, 2016, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was C$7.20 versus C$7.24 on June 30, 2016. The NAV of the Class U unit on September 30, 2016 was US$7.18 vs. US$7.20 on June 30, 2016.

Class A unitholders received distributions totaling C$0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on September 30, 2016 was C$6.99 which represents a discount of 2.9% to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets rallied in the third quarter of 2016 with most of the performance coming in July and August, as September, traditionally the weakest month of the year, ended little changed. The S&P/TSX Index rose 5.4% and the S&P 500 Index in the U.S. was up 3.8% while the international index (EAFE) led the way up 6.5% as investor concerns around ‘Brexit” receded.

During the quarter, the S&P 500 Financials Index rose to 320.82 from 308.39 on June 30, 2016. Stocks within the portfolio had varying returns led by State Street Corp. and The Charles Schwab Corporation which were up 29.8% and 25% respectively during the period. Both were helped by back up in interest rates as 2-year U.S. Treasury yields rose from 0.58% at the end of June to 0.76% at the end of September on the expectations that the U.S. Federal Reserve will raise the overnight lending rate by 25 basis points before the end of 2016. This was offset by our holdings in Crown Castle International Corp., a Real Estate Investment Trust, which was down 6.5% while held in the Fund.

Volatility was range bound during the period as the Chicago Board Options Exchange Volatility Index (“VIX”) traded in a range of 10% to 15%. The Fund stayed open on most of the portfolio during the period but did selectively write some covered calls and ended the quarter with 4.6% of the portfolio written vs. 2.1% at the end of the previous quarter.

The Fund maintained an average cash position of 6.2% during the period vs. 6.9% for the previous quarter.

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.

As of June 30, 2016, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $7.24 versus $7.81 on March 31, 2016. The NAV of the Class U unit on June 30, 2016 was US$7.20 vs. US$7.74 on March 31, 2016.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the same period.

The Class A units closing price on June 30, 2016 was $7.10 which represents a discount of 1.9% to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

Global equity markets were mixed in the second quarter of 2016 with markets in North America showing positive results while International markets were modestly lower. The S&P/TSX Index rose 5.1% and the S&P 500 Index in the U.S. was up 2.4%, while the international index (EAFE) was down 1.2% with most of the decline occurring after the “Brexit” vote was decided on June 23 with 52 percent of Great Britain voting in favor to leave the European Union. The news roiled global markets immediately following the vote but rebounded by quarter-end. The longer term impacts on the region and the world are not yet known.

During the quarter, the S&P 500 Financials Index rose slightly to 308.39 from 303.71 on March 31, 2016. Stocks within the portfolio had varying returns led by Aflac Inc. which was up 15.0% during the period. The U.S. insurer was helped by a strengthening Yen which benefitted the translation of their Japanese insurance division’s earnings. This was offset by our holding in another insurer, Lincoln National Corp., which was down 15.8% while held in the Fund with most of the decline occurring post “Brexit” as 10-year US Treasury Yields declined 28 basis points from June 23rd to June 30th to end the quarter at 1.47%.

After a fairly volatile first quarter of 2016, the Chicago Board Options Exchange Volatility Index (VIX) retreated for most of the second quarter before briefly spiking on the “Brexit” news on June 23rd. Volatility stayed elevated only for a few days before declining as markets staged a meaningful rally into quarter-end. The Fund was active in its covered-call writing during the period and ended the quarter with 2.1% of the portfolio written vs. 5.1% at the previous quarter-end.

The Fund maintained a lower average cash position of 6.9% during the period vs. an average of 13.9% for the first quarter.

The U.S. dollar was actively hedged back into Canadian dollars throughout the period and ended June with approximately 50% of the U.S. dollar exposure hedged.

As of March 31, 2016, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $7.81 versus $8.45 on December 31, 2015. The NAV of the Class U unit on March 31, 2016 was US$7.74 vs. US$8.27 on December 31, 2015.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on March 31, 2016 was $7.40 which represents a discount of 5.2% 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.

During the quarter the S&P 500 Financials Index declined to 303.71 from 321.73 on December 31, 2015. Stocks within the portfolio had varying returns led by Nasdaq Inc. which was up 14.6% during the period on the back of strong earnings accretion coming from some recent acquisitions. This was offset by our holding in Citigroup Inc. which declined 19.0% while held within the Fund.

After a fairly stable fourth quarter of 2015, the Chicago Board Options Exchange Volatility Index (“VIX”) rose on the back of market weakness in January and February up to the 30 level which was last observed in August of 2015. The VIX has subsequently declined back to around 14, the low end of the range over the past few years. The Fund was active in its covered-call writing during the period and ended the quarter with 5.1% of the portfolio written vs. 5.2% at the end of the previous quarter.

The manager actively altered the cash position during the period and ended the quarter at 6.9% vs. 8.1% at the end of the previous quarter.

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

As of December 31, 2015, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $8.45 versus $8.30 on September 30, 2015. The NAV of the Class U unit on December 31, 2015 was US$8.27 vs. US$8.31 on September 30, 2015.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the same period.

The Class A units closing price on December 31, 2015 was $8.07 which represents a discount of 4.5% 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

During the quarter, the S&P 500 Financials Index increased to 321.73 from 305.33 on September 30, 2015. Stocks within the portfolio had varying returns led by Public Storage (“PSA”), which was up 17.9% during the period. This was offset somewhat by our holding in Morgan Stanley which declined 9.4% while held within the Fund.

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 5.2% of the portfolio written vs. 19.5% 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 8.3% and ended the quarter at 8.1% vs. 24.3% 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.

As of September 30, 2015, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $8.30 versus $9.11 on June 30, 2015. The NAV of the Class U unit on September 30, 2015 was US$8.31 vs. US$9.24 on June 30, 2015.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on September 30, 2015 was $7.97 which represents a discount of 4.0% 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 quarter, due to its dependence on emerging market’s demand for its resources.

During the quarter, the S&P 500 Financials Index decreased to 305.33 from 328.94 on June 30, 2015. Stocks within the portfolio had varying returns led by The Progressive Corporation (PGR), a basket holding which was up 10.1% since we purchased it. This was offset somewhat by our holding in The Charles Schwab Corporation which declined 12.6% while we owned it.

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 19.5% 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 15.1% and ended the quarter at 24.3% vs. 3.2% in the previous quarter.

As of June 30, 2015, the Net Asset Value (“NAV”) of the Class A unit, USF.UN was $9.11 versus $9.25 on March 31, 2015. The NAV of the Class U unit on June 30, 2015 was US$9.24 vs. US$9.19 on March 31, 2015.

Class A unitholders received distributions totaling $0.125 per unit during the quarter, while Class U unitholders received distributions totaling US$0.125 per unit during the quarter.

The Class A units closing price on June 30, 2015 was $9.03 which represents a discount of 0.9% 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 S&P 500 Financials Index increased slightly during the period to 328.94 from 324.95 on March 31, 2015.

Stocks within the universe had varying returns, led by American International Group (AIG), which the Fund held, up 13.1%, while, Boston Properties., a real estate investment trust (“REIT”) which the Fund did not own, lagged the group, down 13.4%. REITs in general were weak as 10-year U.S. Treasury Bond Yields rose from 1.92% to 2.35% over the period.

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 2.8% of the portfolio written.

The Fund maintained a high investment position during the period and ended the quarter with a cash position of 3.2% vs. 10.0% at the end of the previous quarter.

As of March 31, 2015, the Net Asset Value of the Class A unit, USF.UN was $9.25 versus $9.33 on the Fund’s inception date, February 24, 2015. The NAV of the Class U unit on March 31, 2015 was US$9.19 vs. US$9.33 on February 24, 2015.

Class A unitholders received a regular distributions totaling $0.05 per unit during the quarter, while Class U unitholders received distributions totaling US$0.05 per unit during the quarter, each prorated from the date of inception to March 31, 2015.

The closing market price of the Class A units on March 31, 2015 was $10.00 which represents a premium of 8.1% to its underlying NAV. The Fund’s Class U units are not listed on the Toronto Stock Exchange.

The S&P 500 Financials Index decreased slightly during the period to 324.95 from 328.01 on February 23, 2014 as slower economic growth in the U.S. during the first quarter reduced 10-year treasury yields to 1.92% from 2.17% at the end of 2014.

Stocks within the portfolio had varying returns led by M & T Bank Corp, which increased 5.4%, while, Icahn Enterprises L.P., which the Fund did not own, lagged the group, down 8.4% as the company generated an annual loss of $373 million in 2014, its first since 2008.

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 39.3% of the portfolio written.

As of March 31, 2015 the Fund was approximately 90% invested as the manager prudently invested the proceeds of the offering in an orderly fashion.

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 September 2016 or any year thereafter (the “Annual Redemption Deadline”) will be redeemed on the last business day of September (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 September 2016, units surrendered for redemption on or before the first business day of September will be redeemed at 100% of each respective unit’s net asset value less costs, valued on the last business day of September 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.