Redemption Deadlines:
Class A Shares and Preferred Shares may be surrendered at any time for retraction by the Fund but will be retracted only on the last day of a month (a “Valuation Date”). Shares surrendered for retraction by a holder of Class A Shares or Preferred Shares at least ten business days prior to a Valuation Date will be retracted on such Valuation Date and such shareholder will receive payment on or before the tenth business day following such Valuation Date.

Annual Retraction:
A shareholder may concurrently retract one Preferred Share and one Class A Share on the October Valuation Date of each year at a retraction price equal to the NAV per Unit on that date.

Monthly Retraction:
The monthly retraction prices for the Class A Shares will be equal to 96% of the lesser of:

1. the difference between (i) the NAV per Unit on the applicable Valuation Date and (ii) the cost to the Fund of purchasing a Preferred Share in the market for cancellation; and
2. the difference between (i) the Unit Market Price (as defined below) and (ii) the cost to the Fund of purchasing a Preferred Share in the market for cancellation.

1. the difference between (i) the NAV per Unit on the applicable Valuation Date and (ii) the cost to the Fund of purchasing a Class A Share in the market for cancellation; and
2. the lesser of (i) the Unit Market Price less the cost to the Fund of purchasing a Class A Share in the market for cancellation and (ii) $15.00.

For this purpose, the cost of the purchase of a Preferred Share or a Class A Share will include the purchase price of the share, commission and such other costs, if any, related to the liquidation of any portion of the Portfolio to fund the purchase of such share. Any declared and unpaid distributions payable on or before a Valuation Date in respect of Class A Shares or Preferred Shares tendered for retraction on such Valuation Date will also be paid on the retraction payment date. In addition, the following terms have the meanings set forth below.

As of April 30 2024, the Net Asset Value (“NAV”) of the Fund was $17.77 per unit compared to $17.71 per unit on January 31, 2024. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2024 at $4.11 and $14.25 respectively
which, when combined, represent a 3.3% premium to the Net Asset Value. Distributions totaling $0.20319 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets continued to move higher in fiscal second quarter ending April 30, 2024, albeit at a slower pace than the previous quarter, as reported corporate earnings came in stronger than expected, somewhat offset by lower forward guidance. During the period, the total return of the S&P/TSX Composite Index was 4.1% while the S&P 500 Index total return was 4.3%.

The Canadian banks generated slightly positive performance during the quarter, with a total return of 2.3%, underperforming the broader S&P/TSX Composite Index. The performance of the six banks within the portfolio varied with National Bank of Canada (“NA”) leading the way with a total return of 8.5%, while the Bank of Montreal (“BMO”) lagged with a total return of negative 1.7%. With strong capital ratios Canadian banks are likely to continue to return capital to shareholders in the form of dividend increases.

Volatility levels for the Canadian banks remained low during the quarter as the bank shares traded higher for most of the period. As a result, there continued to be no call writing activity as the manager felt there was greater upside in the share prices of the banks compared to the premium generated from call writing. However, put writing for the period averaged 1% of the NAV of the Fund.

Unlike the same period in the previous year, the Fund maintained a fully invested position throughout most of the period with an average cash position of 3.0 percent compared to 7.1 percent the previous year. During the period, the Fund generated a net realized gain on options of nil per Unit compared to $0.17 per Unit for the same period last year.

As of January 31, 2024, the Net Asset Value (“NAV”) of the Fund was $17.71 per unit compared to $15.46 per unit on October 31, 2023. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2024 at $4.20 and $13.85 respectively which, when combined, represent a 1.9% premium to the NAV per unit. Distributions totaling $0.20319 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets were strong during the fiscal first quarter ending January 31, 2024, as investors priced in the end of central bank tightening, declining inflation as well as a soft landing for the economy. During the period, the total return of the S&P/TSX Composite Index was 12.3% while the S&P 500 Index total return was 16.0%.

The Canadian banks outperformed the broader TSX Index in the quarter with a total return of 16.3%. All six of the Canadian banks had positive returns during the quarter with an average total return of 18.1%. The performance of the six banks within the portfolio varied with Canadian Imperial Bank of Commerce (“CIBC”) leading the way with a total return of 26.0% while The Toronto-Dominion Bank (“TD”) lagged the group during the period, with a total return 6.7%. Five of the six banks raised their dividend during the period to varying degrees, with an average increase across the five banks of 3.7%.

Volatility levels for the Canadian banks declined during the quarter as the bank shares rallied. As a result, there continued to be no call writing activity over the period as the manager felt there was greater upside in the share prices of the banks compared to the premium generated from call writing.

As of October 31, 2023, the Net Asset Value (“NAV”) of the Fund was $15.46 per unit compared to $18.37 per unit on July 31, 2023. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2022 at $3.95 and $13.09 respectively which, when combined, represent a 10.2% premium to the NAV per unit. Distributions totaling $0.20319 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets declined in the fiscal fourth quarter period ended October 31, 2023, as investors weighed the prospects of central banks keeping interest rates higher for longer potentially increasing the likelihood of a recession in 2024. The total return for the S&P/TSX Composite Index during the period was negative 7.7%.

The Canadian banks underperformed the broader market during the quarter with a total return of negative 13.0%. All six banks within the portfolio declined considerably during the quarter. The Toronto-Dominion Bank (“TD”) was the best performing bank but still generate a total return of negative 10.9%, while the National Bank of Canada (“NA”) lagged with a total return of negative 16.5%.

Volatility levels for the Canadian banks in the quarter remained low and with share priced down significantly from the highs reached in February 2022, there was no call writing activity over the period as the manager felt there was better upside in the share prices,

As of July 31, 2023, the Net Asset Value (“NAV”) of the Fund was $18.37 per unit compared to $18.42 per unit on April 28, 2023. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2022 at $4.90 and $13.54 respectively which, when combined, represent a $0.07 premium to the Net Asset Value. Distributions totaling $0.20319 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets continued to rally in the fiscal third quarter of 2023, looking past many of the headwinds facing the economy and markets. The S&P 500 Index continued to outperform with a total return of 8.7% (6.8% in CAD $), aided by Technology, Consumer Discretionary and Communications Services stocks. The S&P/TSX Composite returned 0.8%, due to less exposure to these sectors and large weights in materials and energy which underperformed during the period.

The Canadian banks generated a total return of 2.1% during the quarter which slightly outperformed the broader market. The performance of the six banks within the portfolio varied with The Toronto-Dominion Bank (“TD”) leading the way with a total return of 6.0% while the Royal Bank of Canada (“RBC”) lagged with a total return of negative 2.8%. Five of the six banks in the portfolio announced dividend increases during the quarter, with an average increase 3.1%. The Toronto-Dominion Bank was the only bank to not announce a dividend increase during the period.

Volatility for the Canadian banks continued to remain low, therefore, there was no call writing during the period. However, the manager did write some cash covered puts during the period with an average exposure of 5.6%.

As of April 28 2023, the Net Asset Value (“NAV”) of the Fund was $18.42 per unit compared to $19.83 per unit on January 31, 2023. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 28, 2023 at $6.16 and $13.41 respectively
which, when combined, represent a 6.2% premium to the Net Asset Value. Distributions totaling $0.20319 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Strong performance from a handful of stocks so far in 2023 was enough to lift equity markets and provide a sense of relief to investors’ portfolios after a difficult 2022. The reality is that most investors that outperformed last year likely missed the bounce so far this year as what didn’t work in 2022 has worked so far in 2023. Many central banks continued to tighten monetary policy to combat rising prices and slow their economies. Corporate earnings estimates are also on the decline and the second largest bank failure in U.S. history occurred with the collapse of SVB Financial Group (Silicon Valley Bank), while the Swiss government orchestrated the acquisition of Credit Suisse Group AG by UBS Group AG. Despite lots of negative news, equity markets finished the quarter ended April 30, 2023 flat to up, with the S&P/TSX Composite Index and S&P 500 Index generating a total return of 0.2 percent and 2.7 percent, respectively. However, when we take a deeper look inside the numbers, the stock market seems to be reverting somewhat to the pre-2022 dichotomy where the indices are being driven by a few mega cap stocks like Shopify in Canada, and former darlings in the U.S. such as Meta Platforms Inc. (formerly Facebook), NVIDIA Corp., and Tesla Inc.

The Canadian banks generated poor performance during the quarter, with a total return of negative 4.8%, underperforming the S&P/TSX Composite Index. The performance of the six banks within the portfolio varied with National Bank of Canada (“NA”) leading the way with a total return of 1.1%, while The Toronto-Dominion Bank (“TD”) lagged with a total return of negative 10.9%. On May 4, 2023, TD Bank and First Horizon Corporation (“FHN”) announced they mutually agreed to terminate the merger between the two firms due to lack or regulatory approval. Under the terms of the termination agreement, TD will make a $200 million cash payment to FHN. With strong capital ratios Canadian banks to likely to continue to return capital to shareholders in the form of dividend increases.

The Fund had a higher than normal cash position during the quarter with an average cash position of 7.1 percent compared to 1.1 percent the previous year. The higher cash position was utilized as collateral to write cash covered puts that averaged 4.6 percent of Fund during the period. Volatility for the Canadian banks continued to remain low, therefore, there was no call writing during the period as the manager felt there was a better opportunity to purchase protective put options on some of the bank shares to hedge downside risk. During the period, the Fund on average had 23.3 percent of the portfolio subject to protective puts purchased on some of the bank positions.

As of January 31, 2023, the Net Asset Value (“NAV”) of the Fund was $19.83 per unit compared to $19.26 per unit on October 31, 2022. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2023 at $7.03 and $13.10 respectively which, when combined, represent a 1.5% premium to the NAV per unit. Distributions totaling $0.20319 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets were strong during the fiscal first quarter ending January 31, 2023, as investors started to price in expectations that central banks were nearing the end of the tightening cycle of raising interest rates to combat decade high inflation rates. During the period, the total return of the S&P/TSX Composite Index was 7.8% while the S&P 500 Index total return was 5.8%.

Most of the Canadian banks had positive returns during the quarter with a total return for the group of 7.7%, in-line with the broader market. The performance of the six banks within the portfolio varied with The Bank of Nova Scotia (“BNS”) leading the way with a total return of 11.1% while the Canadian Imperial Bank of Commerce (“CIBC”) lagged the group during the period, with a negative total return 0.3%. Five of the six banks raised their dividend during the period to varying degrees, with an average increase across all five banks of 4.3%.

Volatility levels for the Canadian banks declined during the quarter as the bank shares rallied. As a result, there continued to be no call writing activity over the period as the manager felt there was greater upside in the share prices of the banks compared to the premium generated from call writing. However, due to the low level of volatility, the manager purchased protective put options on approximately 26.7% of the portfolio to hedge downside risk in the bank shares.

As of October 31, 2022, the Net Asset Value (“NAV”) of the Fund was $19.26 per unit compared to $20.07 per unit on July 29, 2022. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2022 at $6.25 and $13.39 respectively which, when combined, represent a 2.0% premium to the NAV per unit. Distributions totaling $0.20319 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets finished flat for the fiscal fourth quarter period ended October 31, 2022, as investors weighed the prospects of central banks getting closer to the end of the tightening cycle and the increasing likelihood of a recession in 2023. The total return for the S&P/TSX Composite Index during the period was negative 0.5%.

The Canadian banks performed in-line with the broader market during the quarter with a total return of negative 0.4%. The performance of the six banks within the portfolio varied significantly with The Toronto-Dominion Bank (“TD”) leading the way with a total return of 5.9%, while The Bank of Nova Scotia (“BNS”) lagged with a total return of negative 14.3%. BNS lagged the group during the period as it set aside higher provisions for loan losses due to its high exposure to Latin America. BNS also announced during the quarter that CEO Brian Porter is to retire and will be replaced by current board member Scott Thomson.

Volatility levels for the Canadian banks in the quarter continued to stay near the high end of the range of the past few years. However, call writing activity remained low over the period as the manager felt there was a better opportunity to purchase some protective put options on some of the banks to hedge downside risk. During the period, there was no call writing activity, similar to the previous quarters. However, approximately 35.2% of the portfolio was hedged with protective puts purchased on some of the bank positions.

As of July 29, 2022, the Net Asset Value (“NAV”) of the Fund was $20.07 per unit compared to $21.72 per unit on April 29, 2022. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 29, 2022 at $6.73 and $14.19 respectively which, when combined, represent a 4.2% premium to the Net Asset Value. Distributions totaling $0.20319 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets were volatile during the fiscal third quarter ending July 29, 2022 as investors continued to price in whether central bank tightening and inflation near 40-year highs will bring the global economy into a recession. The S&P/TSX Composite Index declined 4.4% during the period to bring the year-to-date total return to negative 9.6%.

The Canadian banks also declined during the quarter with a total return of negative 5.1% and underperformed the broader market. The performance of the six banks within the portfolio varied with National Bank of Canada (“NA”) leading the way with a total return of 0.1% while The Toronto-Dominion Bank (“TD”) lagged with a total return of negative 10.4%. Five of the six banks in the portfolio announced dividend increases during the quarter, with an average increase 4.61%. The Toronto-Dominion Bank was the only bank to not announce a dividend increase during the period.

Volatility levels for the Canadian banks in the quarter continued to stay near the high end of the range of the past few years. However, call writing activity remained low over the period as the manager felt there was a better opportunity to purchase some protective put options on some of the banks to hedge downside risk. During the period, there was no call writing activity, similar to the previous quarter, however, approximately 18.8% of the portfolio was hedged with protective puts purchased on some of the bank positions.

As of April 29 2022, the Net Asset Value (“NAV”) of the Fund was $21.72 per unit compared to $24.09 per unit on January 31, 2022. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 29, 2022 at $7.55 and $14.80 respectively which, when combined, represent a 2.9% premium to the Net Asset Value. Distributions totaling $0.20319 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

The quarter ended April 30, 2022 was marked by geopolitical events and macro headlines that impacted most asset classes. Russia’s invasion of the Ukraine on February 24th sparked a rally across the commodity complex led by surging energy and natural gas prices, base metals, and grains. This surge in commodity prices, along with pandemic induced supply constraints, resulted in surging inflation with the U.S. Consumer Price Index (“CPI”) hitting 8.5 percent, the highest reading since 1981. Global central banks scrambled to adjust monetary policy to combat rising prices but remain dangerously behind the curve. Interest rates have skyrocketed so far in 2022 as investors anticipate a series of aggressive hikes from central banks over the course of this year and beyond.

The Canadian banks generated poor performance during the quarter, with a total return of negative 8.7%, underperforming the S&P/TSX Composite total return of negative 0.9%. The performance of the six banks within the portfolio varied with Bank of Montreal leading the way but still posted a negative total return of 5.3%, while the National Bank of Canada lagged with a total return of negative 11.8%. The Bank of Montreal, Bank of Nova Scotia and The Toronto-Dominion Bank all announced sizable acquisitions during the period. With record earnings and strong capital ratios, some of the Canadian banks to likely to continue to return capital to shareholders through dividend increases and share buybacks.

With the sell-off of the Canadian banks, volatility rose near the end of the quarter to levels not witnessed since the COVID-19 pandemic was still in its early stages. However, call writing activity remained low over the period as the manager felt there was a better opportunity to purchase some protective put options on some of the banks to hedge downside risk. During the period, there was no call writing activity, similar to the previous quarter, however, approximately 19.7% of the portfolio was hedged with protective puts purchased on some of the bank positions.

As of January 31, 2022, the Net Asset Value (“NAV”) of the Fund was $24.09 per unit compared to $22.54 per unit on October 31, 2021. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2022 at $8.20 and $15.37 respectively which, when combined, represent a 2.2% discount to the NAV per unit. Distributions totaling $0.20319 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets were relatively flat during the fiscal first quarter ending January 31, 2022, as investors treaded lightly on concerns of higher inflation, central banks becoming more hawkish as well as increased threats of war. During the period, the S&P/TSX Composite Index total return was 1.0%.

Most of the Canadian banks had very strong returns during the quarter with a total return for the group of 11.7%, significantly outperforming the broader market. The performance of the six banks within the portfolio varied with The Toronto-Dominion Bank (“TD”) leading the way with a total return of 14.3% while the National Bank of Canada (“NA”) lagged the group during the period, with a total return 0.1%. As we expected over the past few quarters, the banks started to resume dividend increases after OSFI lifted the COVID-induced capital distribution restrictions late last year. All six banks in the portfolio raised their dividend during the period to varying degrees, with an average increase across all six banks of 15.5%.

Volatility levels for the Canadian banks continued to remain low as the bank shares rallied strongly. As a result, there was no call writing activity over the period as the manager felt there was greater upside in the share prices of the banks compared to the premium generated from call writing. This was the fourth quarter in a row the Fund had no call writing activity.

As of October 29, 2021, the Net Asset Value (“NAV”) of the Fund was $22.54 per unit compared to $21.73 per unit on July 30, 2021. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 29, 2021 at $6.80 and $15.40 respectively which, when combined, represent a 1.5% discount to the NAV per unit. Distributions totaling $0.20319 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets continued to rally during the fiscal fourth quarter ending October 31, 2021, as economies continued to open up with vaccination rates around the world increasing significantly. The S&P/TSX Composite Index rose 4.4% during the period to bring the year-to-date total return to 23.4%.

The Canadian banks also rose during the quarter with a total return of 6.2%, outperforming the broader market. The performance of the six banks within the portfolio varied with the Bank of Montreal (“BMO”) leading the way with a total return of 9.6% while the Royal Bank of Canada (“RY”) lagged with a total return for the quarter of 2.9%. With elevated capital levels for the group, banks are likely to resume dividend increases and share buybacks now that the Office of the Superintendent of Financial Institutions (“OSFI”) has lifted the COVID-induced capital distribution restrictions.

Volatility levels for the Canadian banks continued to decline as equity markets and the bank shares rallied strongly. As a result, there was no call writing activity over the period as the manager felt there was greater upside in the share prices of the banks compared to the premium generated from call writing. This was the third quarter in a row the Fund had no call writing activity.

As of July 30, 2021, the Net Asset Value (“NAV”) of the Fund was $21.73 per unit compared to $20.89 per unit on April 30, 2021. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 30, 2021 at $6.44 and $14.90 respectively which, when combined, represent a 1.8% discount to the Net Asset Value. Distributions totaling $0.20319sptsx per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets continue to rally during the fiscal third quarter ending July 30, 2021 as vaccination rates around the world increased significantly and economies continued to open up. The S&P/TSX Composite Index rose 6.9% during the period to bring the year-to-date total return to 18.2%.

The Canadian banks also rose during the quarter with a total return of 5.1% but underperformed the broader market after outperforming the previous three quarters consecutively. The performance of the six banks within the portfolio varied with the Canadian Imperial Bank of Commerce (“CIBC”) leading the way with a total return of 14.7% while The Toronto-Dominion Bank (“TD”) lagged and was the only bank to post a negative total return for the quarter of -0.9%. Although no dividend increases or share buybacks were announced during the period, we continue to expect the Canadian banks will be able to restart dividend increases and share buybacks sooner than later.

Volatility levels for the Canadian banks continued to decline as equity markets and the bank shares rallied strongly. As a result, there was no call writing activity over the period as the manager felt there was greater upside in the share prices of the banks compared to the premium generated from call writing. This was the second quarter in a row the Fund had no call writing activity.

As of April 30, 2021, the Net Asset Value (“NAV”) of the Fund was $20.89 per unit compared to $18.00 per unit on January 31, 2021. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2021 at $6.18 and $14.58 respectively which, when combined, represent a 0.6% discount to the Net Asset Value. Distributions totaling $0.20319 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

The quarter ended April 30, 2021 was marked by continued strength in North American equity markets which closed at or near all-time highs on the expectation 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 and inflation numbers while governments continued to pass significant stimulus packages despite substantial deficits.

The Canadian banks rose strongly during the quarter and outperformed the broader market for the third quarter in a row with a total return of 17.7%, compared to the S&P/TSX Composite Index return of 11.0%. The performance of the six banks within the portfolio varied with National Bank of Canada (“NA”) and Bank of Montreal (“BMO”) leading the way with a total return of 25.4% and 23.1% respectively, while the Royal Bank of Canada lagged with a total return of 14.4%. With strong capital ratios and the one-year anniversary of the regulatory measures requiring the Canadian banks to halt dividend increases and share buybacks recently passing, we expect the Canadian banks to be able to restart dividend increases and share buybacks sooner than later.

Volatility levels for the Canadian banks continued to decline as equity markets, and specifically the banks rallied strongly. As a result, there was no call writing activity over the period as the manager felt there was greater upside in the share prices of the banks compared to the premium generated from call writing. During the period, the Fund had none of the portfolio written compared to 4.2% on average the previous quarter.

As of January 29, 2021, the Net Asset Value (“NAV”) of the Fund was $18.00 per unit compared to $15.95 per unit on October 30, 2020. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 29, 2021 at $4.75 and $13.93 respectively which, when combined, represent a 3.8% premium to the Net Asset Value. Distributions totaling $0.125 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets started off the fiscal first quarter ended January 31, 2021 with some trepidation as investors became increasingly concerned about the uncertainty of the U.S. election as well as the rise of new COVID-19 cases. By mid-November, with election results in and more importantly, promising vaccine news from two companies in dealing with the virus, markets rallied significantly into the end of the year before flattening out in January.

The Canadian banks rose during the quarter and outperformed the broader market for the second quarter in a row with a total return of 18.4%, compare to the S&P/TSX Composite Index return of 12.1%. The performance of the six banks within the portfolio varied with the Bank of Nova Scotia (“BNS”) and The Toronto-Dominion Bank (“TD”) leading the way with a total return of 24.9% and 24.6% respectively, while the Canadian Imperial Bank of Commerce lagged with a total return of 11.1%. Due to the regulatory requirement to maintain strong capital ratios during these unprecedented times, none of the Canadian banks announced a dividend increase in the quarter.

Volatility levels continued to decline as markets have recovered significantly from the low reached in March 2020. Although volatility for the Canadian banks continued to remain elevated relative to levels experienced prior to the Covid-19 pandemic, the call writing activity remained low in the first quarter as the Fund on average had 4.2% of the portfolio written compared to 4.4% the previous quarter.

As of October 30, 2020, the Net Asset Value (“NAV”) of the Fund was $15.95 per unit compared to $15.72 per unit on July 31, 2020. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 30, 2020 at $3.26 and $12.60 respectively which, when combined, represent a $0.09 discount to the Net Asset Value. Distributions totaling $0.10 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

After an impressive rally from the lows reached on March 23, 2020, equity markets stalled during the fiscal fourth quarter ended October 31, 2020 as investors balanced the impact of a resurgence in COVID-19 cases as well as the U.S. election results with the benefit of continued central bank and government stimulus. The S&P/TSX Composite Index declined 2.9% during the period to bring the year-to-date total return to -6.1%.

The Canadian banks rose during the quarter and outperformed the broader market for the first time this fiscal year with a total return of 3.2%. The performance of the six banks within the portfolio varied with the Bank of Montreal (“BMO”) leading the way with a total return of 9.7% while The Toronto-Dominion Bank (“TD”) lagged with a relatively flat total return of 0.4%. Due to the regulatory requirement to maintain strong capital ratios during these unprecedented times, none of the Canadian banks announced a dividend increase in the quarter.

Volatility levels continued to decline as markets have recovered significantly from the low reached in March. Although volatility for the Canadian banks continued to remain elevated relative to levels experienced over the past few years, the call writing activity declined in the fourth quarter as the Fund on average had 4.4% of the portfolio written during the quarter compared to 21.3% the previous quarter.

As of July 31, 2020, the Net Asset Value (“NAV”) of the Fund was $15.72 per unit compared to $15.41 per unit on April 30, 2020. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2020 at $3.35 and $12.43 respectively which, when combined, represent a $0.06 premium to the Net Asset Value. Distributions totaling $0.10 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets continue to rally during the fiscal third quarter ending July 31, 2020 as investors believe that central banks will continue with unprecedented stimulus and economies started to reopen after shutting down due to the COVID-19 (Coronavirus) pandemic. The S&P/TSX Composite Index rose 10.3% during the period to bring the year-to-date total return to -3.3%.

The Canadian banks also rose during the quarter with a total return of 6.2%, but continued to underperform the broader market as investors weighed the expected credit costs that will result from the pandemic as well as lower net interest margins with stronger trading revenues. The performance of the six banks within the portfolio varied with the Canadian Imperial Bank of Commerce (“CIBC”) leading the way with a total return of 14.2% while The Bank of Nova Scotia (“BNS”) lagged with a relatively flat total return of 0.2%. For the first time in years, none of the Canadian banks announced a dividend increase in the quarter in order to preserve capital ratios and bolster up their loan loss provisions.

Volatility levels continued to decline as markets have recovered significantly from the low in March. However, volatility for the Canadian banks remained elevated relative to levels experienced over the past few years. As a result, the call writing activity remained high as the Fund on average had 21.3% of the portfolio written during the quarter compared to 21% the previous quarter and 12.5% the previous year.

As of April 30, 2020, the Net Asset Value (“NAV”) of the Fund was $15.41per unit compared to $20.15 per unit on January 31, 2020. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2020 at $4.05 and $11.62 respectively which, when combined, represent a 1.7% premium to the Net Asset Value. Distributions totaling $0.10 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

After hitting all-time highs in the third week of February on the anticipation of continued economic strength accompanied by central banks easing monetary policy, the S&P/TSX Composite Index declined over 37% to the low reached on March 23rd as global markets and economies were gripped by the pandemic COVID-19 (Coronavirus). Central banks and governments around the globe responded with unprecedented monetary and fiscal policies to prop up economies and keep funding markets open, and markets responded with the S&P/TSX Composite rallying over 31% to end the quarter.

The total return for the S&P/TSX Diversified Banks Sub Index for the quarter was negative 20.7%, significantly underperforming the broader S&P/TSX Composite Index which generated a total return of negative 13.9% over the same period. All six banks within the portfolio were down considerably during the quarter, with the Royal Bank of Canada (“RBC”) outperforming the other banks but was still down 17.1%, while the Bank of Montreal (“BMO”) lagged the group with a total return of negative 28.8%. The Canadian Imperial Bank of Commerce, RBC and The Toronto-Dominion Bank each announced a dividend increase in the quarter, increasing it by 1.4%, 2.9% and 6.8% respectively.

Volatility levels experienced in March were truly historic across all asset classes and specifically for the Canadian banks as markets sold off but declined somewhat in April as markets recovered. As a result, the call writing activity picked up as the Fund on average had 21% of the portfolio written during the quarter compared to 3.9% the previous quarter. The Fund ended the period with 37.1 percent of the portfolio written.

As of January 31, 2020, the Net Asset Value (“NAV”) of the Fund was $20.15 versus $20.70 per unit on October 31, 2019. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2020 at $6.32 and $14.70 respectively which, when combined, represent a 4.3% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The total return for the Canadian banks during the period was relatively flat with the S&P/TSX Diversified Banks Sub Index down 0.5%, significantly underperforming the broader S&P/TSX Composite Index which generated a total return of 5.9% over the same period.

Only two of the six banks within the portfolio generated a positive total return during the quarter. National Bank of Canada (“NA”) led the way up 9.0%, followed by the Bank of Montreal (“BMO”) which was up 4.6%. Meanwhile, the Bank of Nova Scotia (“BNS”) lagged the group with a total return of -3.1% during the period. BMO and NA each announced a dividend increase in the quarter, increasing it by 2.9% and 4.4% respectively.

Volatility levels for the Canadian banks remained at the low end of the range witnessed over the past few years as global equity markets have started off 2020 strong, with many indices at or near all-time highs. The Fund did selectively write some covered-call writing options during the period with an average of 3.9% of the portfolio subject to covered-calls vs. a 7.2% in the previous quarter.

As of October 31, 2019, the Net Asset Value (“NAV”) of the Fund was $20.70 versus $20.38 per unit on July 31, 2019. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2019 at $6.30 and $14.41 respectively which, when combined, represents a $0.01 premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks rose during the period with the S&P/TSX Diversified Banks Sub Index up 3.0% on a total return basis, outperforming the broader S&P/TSX Composite Index which generated a total return of 1.2% over the same period.
The six banks within the portfolio generated an average total return of 4.5% during the period with two of the six banks declining. The Canadian Imperial Bank of Commerce (“CIBC”) led the way with a total return of 9.6%, while, The Toronto-Dominion Bank (“TD”) lagged the group with a total return of -1.5% during the period.

The Bank of Nova Scotia, CIBC and Royal Bank of Canada each announced a dividend increase in the quarter, increasing it by 3.4%, 2.9% and 2.9% respectively.

Volatility levels for the Canadian banks this quarter remained at the lower end of the range of the past few years as many global equity markets traded at or near all-time highs during the period. The Manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy during the period with an average of 7.2% of the portfolio subject to covered calls vs. a 12.5% in the previous quarter.

As of July 31, 2019, the Net Asset Value (“NAV”) of the Fund was $20.38 versus $21.25 per unit on April 30, 2019. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2019 at $6.50 and $14.77 respectively which, when combined, represents a 4.4% premium to the Net Asset Value. Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks declined during the period with the S&P/TSX Diversified Banks Sub Index down 1.8% on a total return basis, underperforming the broader S&P/TSX Composite Index which generated a total return of negative 0.3% over the same period.

The six banks within the portfolio generated an average total return of negative 2.3% during the period with five of the six banks declining. The Toronto-Dominion Banks (“TD”) led the way with a total return of 1.9%, while, the Canadian Imperial Bank of Commerce (“CIBC”) lagged the group with a total return of -6.7% during the period.

The Bank of Montreal and National Bank of Canada each announced a dividend increase in the quarter, increasing it by 3% and 4.6% respectively.

Volatility levels for the Canadian banks declined in the quarter as many global equity markets hit new all-time highs during the period. The Manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy during the period with an average of 12.5% of the portfolio subject to covered calls vs. a 20.3% in the previous quarter.

As of April 30, 2019, the Net Asset Value (“NAV”) of the Fund was $21.25 versus $20.87 per unit on January 31, 2019. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2019 at $6.84 and $14.69 respectively which, when combined, represents a 1.3% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks rose during the period with the S&P/TSX Diversified Banks Sub Index up 5.1% on a total return basis, underperforming the broader S&P/TSX Composite Index which generated a total return of 7.5% over the same period.

Five of the six banks within the portfolio generated a positive total return during the quarter with the Bank of Montreal (“BMO”) leading the way with a total return of 11.1%. Meanwhile, the Bank of Nova Scotia (“BNS”) lagged the group and was the only bank to be down in the quarter with a total return of -0.2% during the period.

The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank each announced a dividend increase in the quarter, increasing it by 2.4%, 2.9%, 4.1% and 10.4% respectively.

Volatility levels for the Canadian banks declined in the quarter as global equity markets continued to recover following the significant sell off in the December 2018. The Manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy during the period with an average of 20.3% of the portfolio subject to covered-calls vs. a 11.3% in the previous quarter.

As of January 31, 2019, the Net Asset Value (“NAV”) of the Fund was $20.87 versus $20.81 per unit on October 31, 2018. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2019 at $6.43 and $14.53 respectively which, when combined, represent a $0.09 discount to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

Due to strong performance in January, the Canadian banks rose during the period with the S&P/TSX Diversified Banks Sub Index up 3.3% on a total return basis, underperforming the broader S&P/TSX Composite Index which generated a total return of 4.3% over the same period.

Four of the six banks within the portfolio rose during the quarter with the Bank of Nova Scotia (“BNS”) leading the way with a total return of 7.2%. Meanwhile, the Bank of Montreal (“BMO”) lagged the group with a total return of -1.3% during the period.

The National Bank of Canada ("NA") was the only Canadian bank that announced a dividend increase in the quarter, increasing it by 4.8%.

Equity volatility levels for the Canadian banks rose in December as global equity markets sold off in concert due to concerns regarding tighter monetary policy, trade wars and soaring valuations. The Fund became more active with its covered-call writing strategy during the period with an average of 11.3% of the portfolio subject to covered-calls vs. a 6.1% in the previous quarter.

On January 14, 2019, Premium Income Corporation announced that it was undertaking an overnight treasury offering of Preferred and Class A shares at a price of $14.60 and $6.40 respectively. On January 15, 2019, the Fund announced a successful offering of 694,000 Preferred Shares and 694,000 Class A shares for gross proceeds of $14.6 million, with the offering closing on January 22, 2019.

As of October 31, 2018, the Net Asset Value (“NAV”) of the Fund was $20.81 versus $22.25 per unit on July 31, 2018. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2018 at $6.35 and $15.00 respectively which, when combined, represent a 2.6% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks declined during the period with the S&P/TSX Diversified Banks Sub Index down 4.8% on a total return basis, outperforming the broader S&P/TSX Composite Index which generated a total return of negative 7.9% over the same period.

All of the six banks within the portfolio declined during the quarter with Canadian Imperial Bank of Commerce (“CIBC”), leading the way with a total return of negative 3.2%. Meanwhile, the Bank of Nova Scotia (“BNS”) lagged the group with a total return of negative 7.3% during the period, with over $7 billion of acquisitions announced this year likely weighing on the stock.

CIBC and the Royal Bank of Canada each announced a dividend increase in the quarter, increasing it by 2.2% and 4.3% respectively.

Volatility levels for the Canadian banks remained at the low levels witnessed over the past few years in August and September before spiking in October as global equity markets sold off in concert due to concerns regarding trade wars, mid-term elections in the U.S. as well as decelerating global growth. The Fund became more active with its covered-call writing strategy in October with a a high of 26% of the portfolio subject to covered-calls vs. a 10% high in the previous quarter.

On October 25, 2018, Premium Income Corporation announced that it was undertaking an overnight treasury offering of Preferred and Class A shares at a price of $15.00 and $6.60 respectively. On October 26, 2018, the Fund announced a successful offering of 795,000 Preferred Shares and 795,000 Class A shares for gross proceeds of $17.2 million, with the offering closing on November 2, 2018.

As of July 31, 2018, the Net Asset Value (“NAV”) of the Fund was $22.25 versus $21.77 per unit on April 30, 2018. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2018 at $7.72 and $15.19 respectively which, when combined, represent a 3.0% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks rose during the period with the S&P/TSX Diversified Banks Sub Index up 5.1% on a total return basis, underperforming the broader S&P/TSX Composite Index which generated a total return of 6.1% over the same period.

Five of the six banks within the portfolio rose during the quarter with The Toronto-Dominion Bank (“TD”), leading the way with a total return of 8.0%. Meanwhile, the Bank of Nova Scotia (“BNS”) lagged the group with a total return of -1.2% during the period, with over $7 billion of acquisitions announced this year likely weighing on the stock.

The Bank of Montreal and the National Bank of Canada each announced a dividend increase in the quarter, increasing it by 3.2% and 3.3% respectively.

Volatility levels for the Canadian banks were at the low end of the range of the past few years so the Fund was less active with its covered-call writing strategy during the quarter with an average 5.9% of the portfolio subject to covered-calls vs. 11.6% in the previous quarter. The Fund also purchased some call options during the period that amounted to 0.25% of Fund assets.

As of April 30, 2018, the Net Asset Value (“NAV”) of the Fund was $21.77 versus $23.41 per unit on January 31, 2018. The Fund’s class A shares (PIC.A) closed on April 30, 2018 at $7.43 while the Preferred shares (PIC.PR.A) closed at $15.21. Combined, this represents a 4.09% premium to the NAV of the Fund.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks declined during the period with the S&P/TSX Diversified Banks Sub Index down 4.2% on a total return basis, underperforming the broader S&P/TSX Composite Index which fell 1.4% over the same period.

Each of the banks within the portfolio declined during the quarter with The Bank of Nova Scotia (“BNS”), which lagged the group last quarter, leading the way with a total return of -2.4%. Meanwhile, the Canadian Imperial Bank of Commerce (“CM”) which led the group last quarter, lagged the group with a total return of -7.1% during the period.

The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and the Toronto-Dominion Bank each announced a dividend increase in the quarter, increasing it by 3.8%, 2.3%, 3.3% and 11.7% respectively.

Volatility levels for the Canadian banks picked up during the period along with broader market volatility due to concerns regarding trade policy, rising interest rates and market valuations. Although still quite low on an absolute basis, the covered-call writing did pick up during the quarter with an average 11.6% of the portfolio subject to covered calls vs. 4.2% in the previous quarter.

As of January 31, 2018, the Net Asset Value (“NAV”) of the Fund was $23.41 versus $23.18 per unit on October 31, 2017. The Fund’s class A shares (PIC.A) closed on January 31, 2018 at $8.03 while the Preferred shares (PIC.PR.A) closed at $15.20. Combined, this represents a 0.8% discount to the NAV of the Fund.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks generated strong performance during the fourth quarter with the S&P/TSX Diversified Banks Sub Index up 3.4% on a total return basis, outperforming the broader S&P/TSX Composite Index which rose 0.2% over the same period.

The banks within the portfolio produced varying returns during the quarter with the Canadian Imperial Bank of Commerce (“CIBC”) leading the way with a total return of 8.5%. Meanwhile, the Bank of Nova Scotia (“BNS”) lagged the group with a total return of -0.9% during the period.

The Bank of Montreal, Canadian Imperial Bank of Commerce and the National Bank of Canada each announced a dividend increase in the quarter, increasing it by 3.3%, 2.3% and 3.4% respectively.

Volatility levels for the Canadian banks remained at the low end of the range of the past few years so the Fund continued to be less active with its covered-call writing strategy during the quarter with an average 4.2% of the portfolio subject to covered calls vs. 2.8% in the previous quarter. Similar to the previous quarter, due to the low level of volatility and the manager’s favourable outlook for the banks, the Fund opportunistically purchased some call options on Royal Bank of Canada and The Toronto-Dominion Bank during the quarter that ended the period totaling 0.46% of NAV.

As of October 31, 2017, the Net Asset Value (“NAV”) of the Fund was $23.18 versus $21.61 per unit on July 31, 2017. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2017 at $7.73 and $15.20 respectively which, when combined, represent a 1.1% discount to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks generated strong performance during the fourth quarter with the S&P/TSX Diversified Banks Sub Index up 9.9% on a total return basis, outperforming the broader S&P/TSX Composite Index which rose 6.6% over the same period.

The banks within the portfolio produced varying returns during the quarter with The Toronto-Dominion Bank (“TD”) strongly outperforming the group with a total return of 15.1%. Meanwhile, the Bank of Montreal (“BMO”) lagged the group for the second period in a row with a total return of 5.5% during the period.

The Bank of Nova Scotia, Canadian Imperial Bank of Commerce and the Royal Bank of Canada each announced a dividend increase in the quarter, increasing it by 3.9%, 2.4% and 4.6% respectively.

Volatility levels for the Canadian banks remained at the low end of the range of the past few years so the Fund continued to be less active with its covered-call writing strategy during the quarter with an average 2.8% of the portfolio subject to covered calls vs. 0.7% in the previous quarter. Also, due to the favourable outlook for the banks for the fourth quarter, the Fund opportunistically purchased some call options on both the Bank of Nova Scotia and the Royal Bank of Canada which helped enhance the return of the Fund during the period.

As of July 31, 2017, the Net Asset Value (“NAV”) of the Fund was $21.61 versus $21.93 per unit on April 30, 2017. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2017 at $6.85 and $15.11 respectively which, when combined, represent a 1.6% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks in general were flat during the third quarter with the S&P/TSX Diversified Banks Sub Index up 1.1% on a total return basis when adding back the dividends paid by the banks during the period.

The banks within the portfolio produced varying returns during the quarter with National Bank of Canada (“NA”) strongly outperforming the group with a total return of 7.0%. Meanwhile, the Bank of Montreal (“BMO”) lagged the group with a negative total return of 1.2% during the period.

The Bank of Montreal and the National Bank of Canada each announced a dividend increase in the quarter, increasing it by 2.3% and 3.6% respectively.

Volatility levels for the Canadian banks remained at the low end of the range of the past few years so the Fund continued to be less active with its covered-call writing strategy during the quarter with an average 0.7% of the portfolio subject to covered-calls vs. 7.2% in the previous quarter.

As of April 30, 2017, the Net Asset Value (“NAV”) of the Fund was $21.93 versus $22.66 per unit on January 31, 2017. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2017 at $6.72 and $15.29 respectively which, when combined, represent a 0.4% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks continued their strong rally from last year into the second quarter with the S&P/TSX Diversified Banks Sub Index making an all-time high on February 23rd. Since then, the banks have corrected 5.8% to the end of April, 2017 due to a flattening yield curve and credit concerns mounting over rising home prices in Toronto and Vancouver.

The banks within the portfolio produced varying returns during the quarter with the Royal Bank of Canada (“RBC”) slightly outperforming the group with a total return of 0.8%. Meanwhile, the Toronto-Dominion Bank (“TD”) lagged the group with a negative total return of 3.8% during the period.

The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank each announced a dividend increase in the quarter, increasing it by 2.7%, 2.4%, 4.8% and 9.1% respectively.

Volatility levels for the Canadian banks remained at the low end of the range of the past few years so the Fund continued to be less active with its covered-call writing strategy during the quarter with an average 7.2% of the portfolio subject to covered-calls vs. 4.4% in the previous quarter.

As of January 31, 2017, the Net Asset Value (“NAV”) of the Fund was $22.66 versus $21.00 per unit on October 31, 2016. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2017 at $7.03 and $15.29 respectively which, when combined, represent a 1.5% discount to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks were up very strongly during the period, with an average total return of 12.2% for the Big 5 banks, which significantly outperformed the broader S&P/TSX Composite Index’s total return of 4.8%. Markets reacted strongly to the election of Donald Trump as the President of the United States and expectations that more favourable fiscal and tax policies along with less regulation will provide growth to the economy. The banks reported fourth quarter earnings during the period with Industry EPS growth of 4.8% year-over-year, aided mostly by stronger trading revenue, better than expected loan growth as well as positive operating leverage.

The banks within the portfolio produced varying returns during the quarter with the National Bank of Canada outperforming the group with a total return of 18.5%. Meanwhile, the Bank of Nova Scotia lagged the group but still posted a total return of 8.9% during the period.

The Bank of Montreal, Canadian Imperial Bank of Commerce and the National Bank of Canada each announced a dividend increase in the quarter, increasing it by 2.3%, 1.8% and 2.5% respectively.

Volatility levels for the Canadian banks remained at the low end of the range for the past few years so the Fund was less active with its covered-call writing strategy during the quarter with an average 4.4% of the portfolio subject to covered-calls.

As of October 31, 2016, the Net Asset Value (“NAV”) of the Fund was $21.00 versus $20.41 per unit on July 31, 2016. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2016 at $5.81 and $15.13 respectively which, when combined, represent a 0.3% discount to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks were up strongly during the period, with an average price return of 5.9% for the Big 5 banks, which significantly outperformed the broader S&P/TSX Composite return of 2.1%. The banks reported third quarter earnings during the period that mostly beat street estimates, aided mostly by stronger trading and capital market related revenues as well as lower provisions for credit losses (PCL).

The banks within the portfolio produced varying returns during the quarter with the Bank of Nova Scotia outperforming the group with a total return of 9.8%. Meanwhile, the Bank of Montreal lagged the group but still posted a total return of 3.0% during the period.

The Bank of Nova Scotia and the Royal Bank of Canada each announced a dividend increase in the quarter, increasing it by 2.8% and 2.5% respectively.

Volatility levels for the Canadian banks remained at the low end of the range of the past few years, so the Fund was less active with its covered-call writing strategy during the quarter with an average 4.6% of the portfolio subject to covered-calls. The Fund ended the period with 5.5% of the portfolio subject to covered-calls.

As of July 31, 2016, the Net Asset Value (“NAV”) of the Fund was $20.41 versus $20.80 per unit on April 30, 2016. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2016 at $5.55 and $15.00 respectively which, when combined, represent a 0.7% premium to the underlying NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks were up slightly during the period, with a price return of 1.3%, which trailed the broader S&P/TSX Composite with a 4.5% increase over the same period. Aided mostly by lower provision for credit losses (“PCL”) and lower expenses, the banks reported second quarter earnings during the period that mostly met street estimates. Conversely, revenues were weaker than expected, particularly net interest income.

The banks within the portfolio produced varying returns during the quarter with the Bank of Montreal (BMO) outperforming the group with a total return of 3.4%. Meanwhile, the Canadian Imperial Bank of Commerce (CM) lagged behind its peers, down 0.9% during the period.

The Bank of Nova Scotia (BNS) and the Royal Bank of Canada (RY) each announced a dividend increase in the quarter, increasing it by 2.8% and 2.5% respectively.

The Fund did utilize its covered-call writing strategy slightly during the quarter with, on average, 8.9% of the portfolio subject to covered calls. The Fund ended the quarter with 1.0% of the portfolio subject to covered calls.

As of April 30, 2016, the Net Asset Value (“NAV”) of the Fund was $20.80 versus $19.70 per unit on January 31, 2016. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 29, 2016 at $5.90 and $14.88 respectively which, when combined, represent a 2 cent discount to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks (the “Banks”) rallies strongly during the period, generating a total return of 10.0%, slightly outperforming the broader S&P/TSX Composite which increased 9.7% over the same period. The Banks reported first quarter earnings during the period that exceeded street estimates, aided by higher trading revenues and strong fee income. Higher impaired loan formations were reported across the group with most of the increase due to energy provisions but amounts remained modest.

The Banks within the portfolio produced varying returns during the quarter with the Bank of Nova Scotia (BNS) outperforming the group with a total return of 16.0%. Meanwhile, the Toronto-Dominion Bank (TD) lagged, but still had a total return of 6.4% during the period.

BNS, CIBC, RBC and TD each announced a dividend increase in the quarter, increasing it by 2.9%, 2.6%, 2.5% and 7.8% respectively. This was the sixth quarter in a row that CIBC increased its dividend rate.

The Fund did utilize its covered-call writing strategy during the quarter with an average 13.9% of the portfolio subject to covered-calls. The Fund ended the quarter with none of the portfolio subject to covered-calls.

As of January 31, 2016, the Net Asset Value (“NAV”) of the Fund was $19.70 versus $20.79 per unit on October 31, 2015. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2016 at $5.05 and $14.96 respectively which, when combined, represent a 1.6% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks traded sideways for most of November and December 2015 before declining significantly (over 9%) along with the broader market in the first 3 weeks of January 2016 on concerns that a global recession and possibly deflation were around the corner. And then, similar to what we have witnessed over the past year or so, markets bounced back with a vengeance in the final week of January with Canadian banks ending the period down less than 3%. The banks reported fourth quarter earnings during the period which met or exceeded street estimates, but did so with questionable quality as there were some one-time tax gains, gain from pensions as well as lower than expected provisions for loan losses, especially for those related to the Energy sector.

The banks within the portfolio produced varying returns during the quarter with the Bank of Montreal outperforming the group with a total return of 0.04%. Meanwhile, the Canadian Imperial Bank of Commerce (“CIBC”) lagged behind its peers, declining 8.1% during the period after outperforming in the previous 2 quarters.

Only CIBC announced a dividend increase in the quarter, increasing it by 2.7%. This was the fifth quarter in a row that CIBC increased its dividend rate.

The Fund did utilize its covered-call writing strategy slightly during the quarter with an average 6.2% of the portfolio subject to covered calls. The Fund ended the quarter with none of the portfolio subject to covered calls.

Due to our expectations that Canadian bank earnings growth will continue to slow in 2016 and our concerns regarding loan loss provisions, especially for those related to the Energy industry, the Fund’s cash position was increased in the first quarter to 13.7% vs. 6.5% at the end of the previous quarter.

As of October 31, 2015, the Net Asset Value (“NAV”) of the Fund was $20.79 versus $20.94 per unit on July 31, 2015. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 30, 2015 at $6.16 and $15.14 respectively which, when combined, represent a 2.5% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks demonstrated resilient performance in the fourth quarter with the S&P/TSX Diversified Banks Total Return Index clawing its way to a total return of 1.1% after declining almost 9% in the first three weeks of August along with the broader market swoon. The banks continued to show steady earnings supported by stable domestic banking revenues, a greater contribution from U.S. and International banking along with cyclically low credit charges.

The banks within the portfolio produced varying returns during the quarter with the Canadian Imperial Bank of Commerce (“CIBC”) outperforming the group with a total return of 8.6%. Meanwhile, the Bank of Nova Scotia (“BNS”) lagged behind its peers, declining 3.1% during the period.

BNS, CIBC and the Royal Bank of Canada (“RBC”) each announced a dividend increase in the quarter, increasing it by 2.9%, 2.7% and 2.6% respectively. This was the fourth quarter in a row that CIBC increased its dividend rate.

The Fund did increase its covered-call writing slightly during the quarter with an average 10.0% of the portfolio subject to covered calls vs. 10.4% the previous quarter. The Fund ended October with 4.1% of the portfolio subject to covered calls.

The Fund maintained its invested position for most of the period and ended the fourth quarter with a cash position of 6.5% vs. 6.7% at the end of the previous quarter.

As of July 31, 2015, the Net Asset Value (“NAV”) of the Fund was $20.94 versus $22.31 per unit on April 30, 2015. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2015 at $6.31 and $15.20 respectively which, when combined, represent a 2.7% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks continued their see-saw performance during the third quarter ending July 31, 2015. After declining over 10% in the first quarter, followed by a bounce back of 11.1% in the second quarter, the banks rolled back down with the S&P/TSX Diversified Banks Total Return Index declining 3.9% during the period. Although the banks for the most part reported better than expected earnings during the quarter, challenging growth fundamentals as well as ongoing uncertainty associated with weak energy prices have provided some headwinds for the group.

All the banks within the portfolio declined during the quarter with the Bank of Montreal declining the most with a negative return of 6.3%. Meanwhile, the Canadian Imperial Bank of Commerce (“CIBC”) outperformed during the period, but still declined 2.4%.

Both the CIBC and National Bank of Canada announced a dividend increase in the quarter, increasing it by 2.8% and 4% respectively. This was the third quarter in a row that CIBC increased its dividend rate.

The Fund maintained its covered-call writing during the quarter with, on the average, 10.4% of the portfolio subject to covered-calls vs. 11.9% the previous quarter. The Fund ended July with 14.4% of the portfolio subject to covered-calls.

The Fund maintained its invested position for the majority of the period and ended the third quarter with a cash position of 6.7% vs. 5.0% at the end of the previous quarter.

As of April 30, 2015, the Net Asset Value (“NAV”) of the Fund was $22.31 versus $20.74 per unit on January 31, 2015. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2015 at $7.28 and $15.36 respectively which, when combined, represent a 1.5% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

After declining over 10% the previous quarter, the Canadian banks bounced back with the S&P/TSX Diversified Banks Total Return Index up 11.1% during the period vs. the broader TSX Composite Index up 4.5%. After reporting weaker than expected fourth quarter earnings, Canadian Banks surprised to the upside by reporting better than expected first quarter earnings that were helped by stronger trading revenues and lower provisions for credit losses.

All the banks within the portfolio advanced during the quarter with the Royal Bank of Canada (“RBC”) leading the way up 12.8%. Meanwhile, Bank of Montreal (“BMO”) lagged the group during the period, but still generated a strong return of 9.0%. The Fund also now holds National Bank of Canada, which it is now permitted to purchase after securityholders approved a proposal to change the investment restrictions of the Fund at the end of 2014.

Four of the six banks announced a dividend increase in the quarter with The Toronto-Dominion Bank increasing their dividend by 8.5%. The Canadian banks continue to perform well on an operating basis despite slowing retail loan growth and low net interest margin pressures.

The Fund did increase its covered-call writing during the quarter with an average 11.9% of the portfolio subject to covered-calls vs. 3.4% the previous quarter. The Fund ended April with 6.6% of the portfolio subject to covered-calls.

The Fund maintained its invested position for the majority of the period and ended the second quarter with a cash position of 5.0% vs. 0.5 % at the end of the previous quarter.

As of January 31, 2015, the Net Asset Value (“NAV”) per Unit of the Fund was $20.74 versus $23.60 on October 31, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 30, 2014 at $7.15 and $15.41 respectively which, when combined, represent a 8.8% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks continued to decline this quarter after reaching a new high during the previous quarter on September 18, 2014. The S&P/TSX Diversified Banks Total Return Index declined 10.02% during the period on weaker than expected 4th quarter earnings as well as concerns regarding the banks’ loan and capital markets exposure to Energy companies. All five banks declined during the quarter with the Canadian Imperial Bank of Commerce (“CIBC”) leading the downtrend generating a total return of negative 13.42%. Meanwhile, The Toronto-Dominion Bank outperformed during the period, but still generated a negative return of 8.0%.

Two of the five banks announced dividend increases in the quarter with the Bank of Montreal and CIBC increasing their dividend by 2.6% and 3.0% respectively. The Canadian banks continue to perform well on an operating basis despite slowing retail loan growth and net interest margin pressures.

Volatility for the Canadian banks moved higher for most of the quarter coinciding with the weak performance for the group. The S&P/TSX Diversified Banks Index had 2 periods during the quarter where the index declined by more than 9%, increasing the implied volatility for the group. The Fund did some covered-call writing with an average 3.4% of the portfolio subject to covered-calls vs. 2.7% in the previous quarter. The Fund ended the quarter with nil% of the portfolio subject to covered-calls.

The Fund maintained its invested position for the majority of the period and ended the first quarter with a cash position of 0.5% vs. 0.8 % at the end of the previous quarter.

The Canadian banks profitability is likely to grow at a slower pace 2015 due to slower consumer loan growth and narrow net interest margins. However, in the context of low interest rates, the valuation of companies within the portfolio remains at attractive levels when measured by price to earnings ratios or current dividend yields. The Canadian Banks are likely to continue to return capital to shareholders in the form of dividend increases and share buybacks due to their strong capital ratios.

As of October 31, 2014, the Net Asset Value (“NAV”) of the Fund was $23.60 versus $24.26 per unit on July 31, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2014 at $8.30 and $15.60 respectively which, when combined, represent a 1.3% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

As a reminder, as per the Management Information Circular dated August 20, 2010, the Fund will change the quarterly distribution for the Class A shares to a floating rate distribution calculated as approximately 8% per annum of the NAV of the Class A Shares. Due to consolidation of the Class A shares on November 1, 2010 on the basis of 0.738208641 new shares for each old share, the NAV threshold per unit for the Class A share floating distribution is $25.00.

On October 23, 2014, the Fund announced a follow-on offering on offering of preferred shares and class A shares. On November 10, 2014, the Fund announced it has completed a treasury offering of 900,000 preferred shares at a price of $15.60 per shares and 900,000 class A shares at a price of $8.92 per shares for gross proceeds of $22.1 million.

After reaching a new high on September 18th, the S&P/TSX Diversified Banks Total Return Index declined during the period and ended October 31, 2014 at 4,610.92 vs. 4,649.67 on July 31, 2014. Three of the five banks generated a positive total return during the quarter with the Canadian Imperial Bank of Commerce leading the group generating a total return of 2.7%. Meanwhile, The Bank of Nova Scotia lagged during the period, down 5.8% on concerns that slowing growth in Latin America would have a negative effect on its operations there.

Two of the five banks announced dividend increases in the quarter with the Bank of Nova Scotia and the Royal Bank of Canada increasing their dividend by 3.1% and 5.6% respectively. The Canadian banks continue to perform well despite slowing retail loan growth and net interest margin pressures.

Volatility for the Canadian banks spiked above 20 for a brief period in mid-October as the banks along with many global equity markets corrected over 10% from their highs in September. However, volatility quickly retraced as the banks bounced back over 6% from the intra-day low reached on October 16, 2014.

The Fund was fairly inactive in its covered-call writing with an average 3.1% of the portfolio subject to covered-calls vs. 2.7% in the prior quarter. The Fund ended the quarter with nil% of the portfolio subject to covered-calls.

The Fund maintained its invested position for the majority of the period and ended the fourth quarter with a cash position of 0.8%, which is unchanged compared to the prior quarter.

The Canadian banks are expected to improve profitability in 2015 due to lower loan losses and better capital market related revenues. Consequently, Canadian banks are likely to continue to return capital to shareholders in the form of dividend increases and share buybacks.

As of July 31, 2014, the Net Asset Value (“NAV”) of the Fund was $24.26 versus $22.81 per unit on April 30, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2014 at $8.30 and $15.61 respectively which, when combined, represent a 1.4% discount to the NAV.D

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

As a reminder, as per the Management Information Circular dated August 20, 2010, the Fund will change the quarterly distribution for the Class A shares to a floating rate distribution that will vary and will be calculated as approximately 8% per annum of the NAV of the Class A Shares once the NAV of the Fund reaches $25.00 per unit.

The S&P/TSX Diversified Banks Total Return Index advanced to new highs during the period and ended July 31, 2014 at 4,649.67 vs. 4,238.34 on April 30, 2014. Each of the five banks within the portfolio was up during the quarter with the Bank of Nova Scotia leading the group generating a total return of 12.1%. Meanwhile, the Canadian Imperial Bank of Commerce (“CIBC”) lagged during the period, but was still up 4.6%.

The strong performance was partly attributable to second quarter earnings reported during the period that were generally better than analysts’ estimates due to lower loan loss provisions as well as strong wealth management revenues. Two of the five banks announced dividend increases in the quarter with the Bank of Montreal and CIBC increasing their dividends by 2.6% and 2.1% respectively. The Canadian banks continue to perform well despite slowing retail loan growth and net interest margin pressures.

Volatility for the Canadian banks continued to remain low for the period. The Fund was fairly inactive in its covered-call writing with an average 2.7% of the portfolio subject to covered-calls vs. 2.0% in the previous quarter. The Fund ended the quarter with nil% of the portfolio subject to covered calls.

The Fund maintained its invested position for the majority of the period and ended the second quarter with a cash position of 0.8% vs. 0.9% at the end of the previous quarter.

The Canadian banks are expected to improve profitability in 2014 due to lower loan losses and better capital market-related revenues. Consequently, Canadian Banks are likely to continue to return capital to shareholders in the form of dividend increases and share buybacks.

As of April 30, 2014, the Net Asset Value (“NAV”) of the Fund was $22.81 versus $21.12 per unit on January 31, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2014 at $7.10 and $15.62 respectively which, when combined, represent a 0.4% discount to the NAV.

Distribution of $0.20319 was paid to the Class A shareholders and $0.215625 was paid to the Preferred shareholders during the quarter.

The S&P/TSX Diversified Banks Total Return Index advanced to new highs during the period and ended April 30, 2014 at 4,238.34 vs. 3,852.71 on January 31, 2014. Each of the five banks within the portfolio was up during the quarter with the Bank of Montreal leading the group generating a total return of 12.1%. Meanwhile, the Royal Bank of Canada lagged during the period, but was still up 7.2%.

The strong performance was partly due to reporting first quarter earnings during the period that were generally better than analysts’ estimates due to lower loan loss provisions as well as strong wealth management revenues. Four of the five banks announced dividend increases in the quarter with The Toronto-Dominion Bank surprising the street announcing a second increase in as many quarters. The Canadian banks continue to perform well despite slowing retail loan growth and net interest margin pressures.

Volatility for the Canadian banks continued to remain low for the period. The Fund was fairly inactive in its covered-call writing with an average 2.0% of the portfolio subject to covered calls vs. 2.7% in the previous quarter. The Fund ended the quarter with nil% of the portfolio subject to covered calls.

The Fund maintained its invested position for the majority of the period and ended the second quarter with a cash position of 0.9% vs. 1.1% at the end of the previous quarter.

The Canadian banks are expected to improve profitability in 2014 due to lower loan losses and better capital market related revenues. Consequently, Canadian banks are likely to continue to return capital to shareholders in the form of dividend increases and share buybacks.

As of January 31, 2014, the Net Asset Value (“NAV”) of the Fund was $21.12 versus $21.95 per unit on October 31, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2014 at $6.20 and $15.36 respectively which, when combined, represent a 2.1% premium to the NAV.

Distributions of $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The S&P/TSX Diversified Banks Total Return Index was down slightly during the period ending January 31, 2014 at 3,852.71 vs. 3,909.34 on October 31, 2013. Four of the five banks within the portfolio declined during the quarter with only The Toronto-Dominion Bank (TD) generating a positive total return of 1.6%. Meanwhile, the Bank of Montreal (BMO) lagged the group during the period, down 5.2%. After performing strongly into the end of 2013, the Canadian banks corrected along with the broader markets in January of 2014 as concerns arose regarding emerging market growth and also after the U.S. Federal Reserve Bank announced the second $10 billion taper of bond purchases on January 29, 2014.

Canadian banks reported fourth quarter earnings during the period that were generally better than analysts’ estimates. Two of the five banks announced dividend increases in the quarter while the remainder left dividends unchanged. The Canadian banks continued to perform very well despite slowing retail loan growth and net interest margin pressures.

Volatility for the Canadian banks continued to remain low for the period. The Fund was fairly inactive in its covered-call writing with an average 2.7% of the portfolio subject to covered-calls vs. 16.1% in the previous quarter. The Fund ended the first quarter with 15.5% of the portfolio subject to covered-calls.

The Fund maintained its invested position for the majority of the period and ended the first quarter with a cash position of 1.1% vs. 1.2% at the end of the previous quarter.

The Canadian banks are expected to improve profitability in 2014 due to positive operating leverage and better capital market related revenues. Consequently, Canadian Banks are likely to continue to return cash to shareholders in the form of dividend increases and share buybacks.

As of October 31, 2013, the Net Asset Value (“NAV”) of the Fund was $21.95 versus $20.25 per unit on July 31, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2013 at $6.57 and $15.20 respectively which, when combined, represent a 0.8% discount to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The S&P/TSX Diversified Banks Total Return Index was up during the period ending October 31, 2013 at 3,909.34 vs. 3,495.46 on July 31, 2013. All five banks within the portfolio posted strong total returns during the quarter with the Canadian Imperial Bank of Commerce leading the group up 15.2% while the Royal Bank of Canada lagged the group, but was still up 10.2%. After trading relatively sideways for the first half of 2013, the Canadian banks rallied strongly starting in July on expectations of better net interest margins as the yield curve has steepened considerably since May.

Canadian banks reported third quarter earnings during the period that were mostly above analysts’ estimates although top line revenue growth was a bit weaker than expected. Domestic retail loan growth continues to slow while net interest margins were stable. Most banks were able to offset these headwinds with stronger capital markets-related revenues along with lower loan loss provisions. The Bank of Nova Scotia, Royal Bank of Canada (“RBC”) and The Toronto-Dominion Bank increased their dividends in the quarter with RBC posting the largest increase at 6.3%.

Volatility for the Canadian banks continued to remain low for the period. The Fund was similarly active as the previous quarter in its covered-call writing with an average 16.1% of the portfolio subject to covered-calls vs. 19.4% the previous quarter. The Fund ended the fourth quarter with 8.3% of the portfolio subject to covered-calls.

The Fund maintained its invested position for the majority of the period and ended the fourth quarter with a cash position of 1.2% vs. 3.6% at the end of the previous quarter.

The Canadian banks are expected to improve profitability in 2014 due to positive operating leverage, strong wealth management revenues and improved net interest margins. Consequently, Canadian Banks are likely to continue to return capital to shareholders in the form of dividend increases and share buybacks. The stocks within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields which should continue to act as support for the share prices.

As of July 31, 2013, the Net Asset Value (“NAV”) of the Fund was $20.25 versus $20.34 per unit on April 30, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2013 at $5.78 and $15.46 respectively which, when combined, represent a 4.9% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The S&P/TSX Diversified Banks Total Return Index was up during the period ending July 31, 2013, closing at 3,495.46 vs. 3,371.27 on April 30, 2013. Four of the five banks within the portfolio posted positive total returns during the quarter with the Royal Bank of Canada (“RBC”) leading the group up 6.6% while the Canadian Imperial Bank of Commerce (“CIBC”) lagged the group for the second quarter in a row, down 2.0% on continued concerns of the bank losing market share in the domestic residential mortgage market since exiting the mortgage broker channel in 2012.

Canadian banks reported second quarter earnings during the period that were mostly above analyst’s estimates although top line revenue growth was a bit weaker than expected. Domestic retail loan growth continues to slow while net interest margins continue to narrow. Most banks were able to offset these headwinds with stronger capital markets related revenues along with lower loan loss provisions. Only CIBC increased its dividend, by 2.13%, in the quarter as the four other banks had raised their dividends in the prior quarter.

Volatility for the Canadian banks continued to remain low for the period. The Fund was more active than the previous quarter in its covered-call writing with an average 19.4% of the portfolio subject to covered calls vs. 1.7% the previous quarter. The Fund ended the third quarter with 10.8% of the portfolio subject to covered calls.

The Fund maintained its invested position for the majority of the period and ended the third quarter with a cash position of 3.6% vs. 1.0% at the end of the previous quarter.

The profitability of Canadian banks continues to grow at a slower pace in 2013 due to decelerating consumer loan growth, lower net interest margins and the potential for a slowdown in the residential housing market in Canada. However, the Canadian banks have been able to somewhat offset lower consumer loan growth with strong commercial loan growth as well as reduced loan loss expenses. In the context of low interest rates and the potential for the Canadian Banks to continue to raise their dividends, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields which should continue to act as support for the share prices.

As of April 30, 2013, the Net Asset Value (“NAV”) of the Fund was $20.34 versus $20.91 per unit on January 31, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2013 at $5.77 and $15.90 respectively which, when combined, represent a 6.54% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

While the U.S. equity market continued to rally from the previous quarter hitting new all-time highs during the period, in Canada, the S&P/TSX Composite was down during the period. This was mainly due to weakness in the Materials sector from precious metals equities as a result of stronger U.S. dollar during the period which led to some downward pressure on gold bullion prices. Base metal equities were also down during the period on concerns of a slowdown in economic growth in China.

The S&P/TSX Diversified Banks Total Return Index was relatively flat during the period ending April 30, 2013 at 3371.27 vs. 3385.14 on January 31, 2013. Three of the five banks posted positive returns during the quarter although the difference between best and worst performing bank was quite narrow. The Bank of Montreal (“BMO”) led the group during the period up 1.5% while the Canadian Imperial Bank of Commerce (“CM”) lagged the group down 2.0%.

Canadian banks reported first quarter earnings during the period that were mostly above analyst’s estimates although top line revenue growth was a bit weaker than expected. Domestic retail loan growth continues to slow while net interest margins continue to narrow. Most banks were able to offset these headwinds with stronger capital markets related revenues along with lower loan loss provisions. Four of the five banks increased their dividends in the quarter, with CIBC being the only bank to maintain its dividend rate.

Volatility for the Canadian banks remained low for the period. The Fund was less active than the previous quarter in its covered-call writing with an average of 1.7% of the portfolio subject to covered calls vs. 31.7% in the previous quarter. The Fund ended the second quarter with 4.3% of the portfolio subject to covered calls.

The Fund maintained its invested position for the majority of the period and ended the second quarter with a cash position of 1.0% vs. 2.8% at the end of the previous quarter.

The profitability of Canadian banks continues to grow at a slower pace in 2013 due to decelerating consumer loan growth, lower net interest margins and the potential for a slowdown in the residential housing market in Canada. However, the Canadian banks have been able to somewhat offset lower consumer loan growth with strong commercial loan growth as well as reduced loan loss expenses. In the context of low interest rates and the potential for the Canadian Banks to continue to raise their dividends, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields which should continue to act as support for the share prices.

As of January 31, 2013, the Net Asset Value (“NAV”) of the Fund was $20.91 versus $20.53 per unit on October 31, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2013 at $6.14 and $15.61 respectively which, when combined, represent a 4.02% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

Markets continued to rally from the previous quarter supported by improving economic outlooks globally as well as the dissipation of concerns surrounding the “Fiscal Cliff” as a last minute agreement was made in the U.S. that increased taxation but pushed out the mandatory spending cuts to March 1, 2013.

The S&P/TSX Diversified Banks Total Return Index increased to 3385.14 on January 31, 2013 from 3149.98 on October 31, 2012. All five banks posted positive returns during the quarter. The Royal Bank of Canada (“RBC”) continued its outperformance relative to the group from the previous quarter, up 10.2% while The Toronto-Dominion Bank (“TD”) lagged the group for the second consecutive quarter, but still rose 3.5% during the period.

In addition to the improving global market backdrop during the period, Canadian banks also reported steady fourth quarter earnings that were mostly in line with analysts’ estimates. None of the banks increased their dividends in the quarter, which was largely expected after all five banks raised their dividends in the previous quarter. Following the announcement of issuer bids by both Canadian Imperial Bank of Commerce (“CM”) and RBC in the previous quarter, the Bank of Montreal (“BMO”) announced the filing of its own normal course issuer bid to purchase shares in the market.

Volatility for the Canadian banks continued to decline this quarter other than the brief spike in market volatility in general around the U.S. presidential election. The Fund was active in its covered-call writing with, on average, 31.7% of the portfolio subject to covered calls during the period. However, the Fund ended the first quarter with none of the portfolio subject to covered calls.

The Fund maintained its invested position for the majority of the period and ended the first quarter with a cash position of 2.8% vs. 0.8% at the end of the previous quarter.

The profitability of Canadian banks is likely to grow at a slower pace in 2013 due to decelerating consumer loan growth, lower net interest margins, and the potential for a slowdown in the residential housing market in Canada. However, the Canadian banks have been able to somewhat offset lower consumer loan growth with strong commercial loan growth and reduced operating expenses. In the context of low interest rates, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields which should continue to act as support for their share prices.

As of October 31, 2012, the Net Asset Value (“NAV”) of the Fund was $20.53 versus $20.04 per unit on July 31, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2012 at $5.85 and $15.49 respectively which, when combined, represent a 3.95% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

After declining amid European debt crisis concerns and fears of a decelerating global economy during the previous quarter, markets rallied strongly in the fourth quarter on the back of new monetary stimulus initiatives and bond purchase programs announced by major global central banks over the period.

The S&P/TSX Diversified Banks Total Return Index increased to 3149.98 on October 31, 2012 from 2952.48 on July 31, 2012. All five banks posted positive returns during the quarter. The Royal Bank of Canada (“RBC”) rallied the most after lagging the group the previous quarter, up 12.0% while The Toronto-Dominion Bank (“TD”) lagged the group, but still up 3.9% during the period.

In addition to the improving global market backdrop during the period, Canadian banks also reported better than expected 3rd quarter earnings in August and all five banks also raised their dividends during the quarter by 3-7%. TD increased its payout ratio to 40-50% from 35-45% while Canadian Imperial Bank of Commerce and RBC also announced normal course issuer bids to repurchase shares during the period. At the end of October, RBC also announced they were acquiring the auto finance and deposit business of ALLY Credit Canada Ltd. for $4.1 billion while TD announced they were acquiring Target Corporation’s U.S. Visa and private label credit card portfolio for an undisclosed amount.

Volatility for the Canadian banks declined back towards the lows over the period as concerns about the European debt crisis subsided. During the period, the Fund reduced its covered-call writing activity and ended the quarter with none of the portfolio subject to covered calls.

The Fund maintained its invested position for the majority of the period and ended the quarter with a cash position of 0.8% vs. 4.9% at the end of the previous quarter.

The profitability of Canadian banks is likely to grow at a slower pace in 2013 due to decelerating consumer loan growth, lower net interest margins and the potential for a slowdown in the residential housing market in Canada. However, the banks are likely to reduce expenses to offset lower revenues. In the context of low interest rates, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields which should continue to act as support for the share prices.

As of July 31, 2012, the Net Asset Value (“NAV”) of the Fund was $20.04 versus $21.38 per unit on April 30, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2012 at $5.90 and $15.20 respectively which, when combined, represent a 5.29% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders for the quarter ended July 31, 2012.

The S&P/TSX Diversified Banks Total Return Index decreased to 2952.48 on July 31, 2012 from 3094.13 on April 30, 2012. After rallying in the first two quarters, the Canadian banks pulled back a bit on continued concerns regarding the European debt crisis as well as growing fears of a decelerating global economy.

All five banks posted negative returns during the quarter. The Canadian Imperial Bank of Commerce (“CM”) led the group posting the least negative return of 0.33% while the Royal Bank of Canada lagged the group down 8.99% after Moody’s Investor Service cut RBC’s credit rating by two notches on June 21, 2012.

The Canadian banks as a group did report better-than-expected second quarter earnings on strong trading revenues and stable net interest margins. Capital ratios continue to remain strong and National Bank of Canada raised their dividend in the quarter by 5.3%. We expect all the banks to continue with dividend increases throughout fiscal 2012.

Volatility for the Canadian banks rose to their highest level of 2012 as concerns about the European debt crisis moved to the forefront once again. During the period, the Fund increased its covered call writing activity and ended the quarter with 73.9% of the portfolio subject to covered calls. The Fund also bought some puts in the quarter and ended the period with approximately 25% of the portfolio hedged with protective put options.

The Fund maintained its invested position for most of the period and ended the quarter with a cash position of 4.9% vs. 0.9% at the end of the previous quarter.

The profitability of Canadian banks is likely to grow at a slower pace in 2012 due to decelerating consumer loan growth and lower net interest margins. However, in the context of low interest rates, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields and this should continue to act as support for the share prices.

As of April 30, 2012, the Net Asset Value (“NAV”) of the Fund was $21.38 versus $20.93 per unit on January 31, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2012 at $6.69 and $15.20 respectively which, when combined, represent a $0.51 or 2.39% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The S&P/TSX Diversified Banks Total Return Index increased to 3094.13 on April 30, 2012 from 2903.01 on January 31, 2012. The Canadian banks continued to rally in the fiscal second quarter after bottoming in late November last year on the back of better-than-expected first quarter earnings.

Four of the five banks posted positive returns during the quarter with only the Canadian Imperial Bank of Commerce posting a modest negative return of 1.12% on concerns regarding the sale of its FirstLine mortgage platform and the potential loss of market share in this business.

The Canadian banks as a group did report better-than-expected first quarter earnings on improved trading revenues and net interest margins. Capital ratios continue to remain strong even though reported regulatory capital was reduced during the period due to the impact of adhering to International Financial Reporting Standards as well as the adoption of the new regulatory capital standard of Basel 2.5. Three of the five banks raised their dividends in the quarter by an average of 6 percent. We expect the banks to continue with dividend increases throughout fiscal 2012.

Volatility for the Canadian banks was low during the period and the Fund reduced its covered call writing activity. The percent of the portfolio subject to covered calls on average during the period was 15.3% and ended the quarter with none of the portfolio subject to covered calls.

The Fund ended the quarter with a cash position of 0.9% vs. 5.2% at the end of the previous quarter due to some covered calls on Toronto-Dominion Bank getting exercised near the end of January.

The Canadian banks profitability is likely to grow at a slower pace in 2012 due to decelerating consumer loan growth and lower net interest margins. However, in the context of low interest rates, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields and this should continue to act as support for the share prices.

As of January 31, 2012, the Net Asset Value (“NAV”) of the Fund was $20.93 versus $20.81 per unit on October 31, 2011. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2011 at $6.38 and $14.81 respectively which, when combined, represent a $0.26 or 1.24% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

During the quarter the S&P/TSX Diversified Banks Total Return Index increased to 2903.01 from 2800.44 on October 31, 2011. After bottoming in late November, the Canadian banks staged a rally along with broader equity markets at end of 2011 and into January 2012 on the likelihood that the European Central Bank along with other European Union countries would help bail out Greece as well as gradually improving economic statistics in the U.S.

Four of the five Canadian banks posted positive returns during the quarter with only the Bank of Nova Scotia (“BNS”) posting a modest negative return of 0.89% on concerns about the Bank’s capital position relative to the new Basel III requirements that are to be implemented at the end of January 2013. On February 1, 2012, BNS announced a common share offering for $1.51 billion in order to shore up their capital in advance of the upcoming Basel rules.

The Canadian bank’s as a group did report better than expected fourth quarter earnings on improved net interest margins and commercial loan growth. Capital ratios continue to build; however, none of the banks within the portfolio raised their dividends in the quarter. We expect the banks to resume dividend increases in fiscal 2012.

Volatility for the Canadian banks remained high until December and then started to decline as fourth quarter earnings for the banks came in better than expected and economic statistics in the U.S. started to improve. The Fund was active in writing covered calls during the period even though volatility declined as the Strathbridge Selective Overwriting (“SSO”) strategy provided signals to write calls. The percent of the portfolio subject to covered calls on average during the period was 23.4% and the Fund ended the quarter with approximately 39% of the portfolio subject to covered calls.

The Fund ended the quarter with a cash position of 5.2% vs. 1.2% at the end of the previous quarter due to some covered calls being exercised on Toronto-Dominion Bank in January.

The Canadian banks profitability is likely to grow at a slower pace in 2012 due to decelerating consumer loan growth and lower net interest margins. In the context of low interest rates, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields. Due to their strong capital ratios, Canadian banks are likely to continue to return capital to shareholders in the form of higher dividends.

The Net Asset Value of the Fund at October 31, 2011 was $20.81 versus $21.37 per unit on July 31, 2011. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2011 at $6.03 and $14.56 respectively which, when combined, represent a $0.22 or 1.06% discount to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

During the quarter the S&P/TSX Diversified Banks Total Return Index decreased to 2800.44 from 2844.72 on July 31, 2011. After peaking in early April, the Canadian banks continued to decline with broader equity markets over the summer on increased concerns of European sovereign credit risks and the potential impact on global economic growth. However, markets stabilized in early October and rallied into year-end on the likelihood that the European Central Bank along with other European Union countries would help bail out Greece.

Four of the five banks had modest negative returns during the period with only the Canadian Imperial Bank of Commerce posting a positive return of 4.19%. Similar to last quarter, Royal Bank underperformed the other banks in the portfolio, down 4.35% on weaker than expected trading revenues. The banks as a group did report better than expected third quarter earnings but this was overshadowed by macro concerns relating to Europe. Capital ratios continue to look strong however, and both the Canadian Imperial Bank of Commerce and The Toronto-Dominion Bank raised their dividend in the quarter. We expect the banks to continue with dividend increases throughout fiscal 2012.

Due to the higher level of volatility in the Canadian banks for the majority of the period, the Fund increased its level of selective covered call writing activity as the higher volatility did compensate the Fund enough to justify this activity. The Fund ended October 31, 2011 with approximately 31% of the portfolio subject to covered calls.

The Fund also opportunistically purchased some put protection on the ishares S&P/TSX Capped Financial Index Fund (“XFN”) during the period due to concerns of European sovereign default risk increasing as well as the U.S. debt ceiling controversy impacting Canadian financials. The Fund ended October 31, 2011 with approximately 3% of the Fund subject to protective puts.

The Fund ended the quarter with a cash position of 1.2% vs. 1.6% at the end of the previous quarter.

The Canadian banks are expected to improve their profitability and capital ratios in 2012 due to improving credit, good expense control and leverage to an economic recovery. Consequently, Canadian banks are likely to continue to return capital to shareholders.

The Net Asset Value of the Fund at July 31, 2011 was $21.37 versus $23.18 per unit on April 30, 2011. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2011 at $7.20 and $15.15 respectively which, when combined, represent a $0.98 or 4.59% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

During the quarter the S&P/TSX Financials Total Return Index decreased to 2320.86 from 2490.04 on April 30, 2011. After posting strong performance the previous quarter, the Canadian banks declined during the period due to weaker than expected second quarter earnings as well as heightened sovereign credit risks emanating out of Europe. Reversing their strong performance last quarter, all five banks had a negative return with the Royal Bank leading the way, down 12.88%. The Bank of Montreal posted the best relative performance of the group during the period but still declined 2.28%. These returns are reflective of the weaker than expected second quarter earnings reported by the banks due to net interest margin compression and lower capital market related revenues. Capital ratios continue to look strong however, and the Royal Bank of Canada and, for the second time in the last 3 quarters, the National Bank of Canada raised their dividend in the quarter. We expect the other banks to follow with dividend increases throughout the remainder of fiscal 2011.

Due to the low level of volatility in the Canadian banks for the majority of the period, the covered call writing activity was opportunistic as the lower volatility did not compensate the fund enough to justify a passive call writing approach. The fund ended July 30, 2011 with no portfolio investments subject to covered calls.

The fund ended the quarter with a cash position of 1.6% vs. 0.4% at the end of the previous quarter end.

The Canadian banks are expected to improve their profitability and capital ratios throughout the remainder of 2011 due to improving credit, good expense control and leverage to an improving economy. Consequently, Canadian banks are expected to resume dividend growth, share buybacks and pursuing acquisitions.

The Net Asset Value of the Fund at April 30, 2011 was $23.18 versus $21.98 per unit on January 31, 2011. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2011 at $8.31 and $15.25 respectively which, when combined, represent a $0.38 or 1.64% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

During the quarter the S&P/TSX Financials Total Return Index increased to 2490.04 from 2331.05 on January 31, 2011. After trading relatively flat the previous quarter, the Canadian banks posted strong performance during the period. All five banks within the portfolio had a positive return with the Royal Bank leading the way, up 11.95% after delivering better than expected first quarter earnings on robust trading revenues. The Bank of Nova Scotia lagged the group during the period but still posted a respectable 3.07% total return. These returns are reflective of the solid fiscal first quarter earnings reported by the banks in late February, 2011 on strong retail and wealth management earnings. Capital ratios continued to increase on a year over year basis and both The Toronto-Dominion Bank and the Bank of Nova Scotia increased their dividend in the quarter. We expect the other banks to follow with dividend increases throughout the remainder of fiscal 2011.

Volatility of the bank shares was low during the period other than a brief spike in March when the horrific earthquake and tsunami in Japan occurred. The fund was opportunistic in writing covered calls on most of the banks during the quarter.

The fund ended the quarter with a cash position of 0.4% vs. 5.8% at the end of the previous quarter end. The funds increased its invested position on the back of strong first quarter earnings results from the banks.

The Canadian banks are expected to improve their profitability and capital ratios throughout the remainder of 2011 due to improving credit, good expense control and leverage to an improving economy. Consequently, Canadian banks are expected to resume dividend growth, share buybacks and pursue acquisitions.