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Guardian Risk Managed Conservative Portfolio

Series

GCG 584
GCG 684
NAV: 06/11/2024
CAD $9.45
DAILY
-0.02%

Overview

The primary objective of the Fund is to seek to preserve the value of the Fund’s investments with reduced portfolio volatility, while seeking to generate a moderate level of income with some potential for capital growth

Fund Resources

Fund Facts & Regulatory Documents
Asset Class: Multi Asset Solutions
Investor Journey:
Total Fund AUM: CAD $16,369,634.21
Management Fee: 0.65%
MER: 0.92%
Risk Rating: Low
Inception Date: 06/07/2019
Distribution Frequency: Monthly

Portfolio Managers

Dino Bourdos, CFA, CIM
Portfolio Manager, Head of Investment Solutions - Guardian Capital LP
Denis Larose, CFA
Chief Investment Officer - Guardian Capital LP

Learn more about this fund

Highlights

KEY REASONS TO INVEST

The Fund invests in securities of other investment funds managed by us, and may also invest in other securities, including exchange traded funds, to achieve its objectives. We use strategic and tactical asset allocation to create a portfolio diversified by asset class and markets, with an emphasis on moderate income generation and some growth of capital while seeking to reduce portfolio volatility. We seek to reduce losses from market declines, while recognizing that the Fund may not fully benefit from strong equity market growth. The portfolio generally includes exposure to global equities, U.S. equities, investment grade fixed-income securities and high yield bonds. Within its long-term asset mix, the Fund invests in a core portfolio and, from time to time, a satellite portfolio. The Fund’s core portfolio currently consists entirely of holdings in units of Guardian Directed Premium Yield Portfolio, Guardian Directed Equity Path Portfolio and any one or more of Guardian Canadian Bond Fund, Guardian Investment Grade Corporate Bond Fund and Guardian Short Duration Bond Fund. On a tactical basis, the Fund may also invest from time to time in a satellite portfolio consisting of securities of other investment funds, exchange traded funds and other securities that are consistent with the Fund’s investment objectives. The Fund may be exposed to derivatives, used for hedging or non-hedging purposes, through its investments in underlying funds. The Fund may use derivatives to hedge against potential loss. The Fund may also use derivatives for non-hedging purposes, including options, futures and forward contracts, in order to gain exposure to certain securities without investing directly in such securities, to reduce the impact of currency fluctuations or volatility on the Fund or to provide protection for the Fund’s portfolio.

Calendar Year Performance
YTD 2023 2022 2021 2020 2019
2.478.49-9.528.475.472.82

Performance during the Fund’s first year is from its Inception Date to Dec 31 of that same calendar year.

Annual Compound Performance
1M3M6MYTD1Y3Y5Y10YS.I.
1.480.403.722.477.332.773.42-3.31

S.I. (Since Inception) is the performance since Inception Date.
Information as of 05/31/2024

Growth of $10,000


Information as of 05/31/2024

Growth of $10,000

Guardian Capital LP’s Asset Mix Committee (AMC) consists of investment professionals and asset class specialists and is charged with overseeing the development and management of multi-asset investment portfolios, specifically addressing asset mix composition/allocation and areas for advice or communication to clients as it relates to the makeup of their portfolio.

April 28, 2022 – Fund renamed Series W Units as Series A Units.

Disclaimer: The information contained on this Fund page is designed to provide you with general information related to the mutual fund or ETF (the “Fund”) and is not intended to be comprehensive investment advice applicable to the circumstances of the individual. We strongly recommend you to consult with a financial advisor prior to making any investment decisions.

The Inception Date is the start date of investment performance for the Fund and may not coincide with the date the Fund or series was first offered for sale under a prospectus or its legal date of creation.

The Historical NAV (net asset value) chart above does not represent the performance of the Fund. It is shown to illustrate the daily movement of the NAV per Unit, which includes certain fees and expenses of the Fund but does not include reinvested distributions. FOR ETFs ONLY: Please note that an ETF’s Units trade on the TSX, where investors will generally buy and sell the ETF’s Units at Market Price, which may be more or less than the value of the daily NAV. The NAV and the Market Price do not include any brokerage commissions or other trading fees, which may be incurred by an investor for buying or selling Units of the ETF.

The Risk Rating classification of the Fund has been determined in accordance with a standardized risk classification methodology in National Instrument 81-102, which is based on the Fund’s historical volatility as measured by the 10-year standard deviation of the Fund’s returns. Where a fund has offered securities to the public for less than 10 years, the standardized methodology requires that the standard deviation of a reference mutual fund or index that reasonably approximates the fund’s standard deviation be used to determine the fund’s risk rating. Please note that historical performance may not be indicative of future returns and the Fund’s historical volatility may not be indicative of future volatility.

The Management Fee is the fee paid to the Fund’s Manager for managing the investment portfolio and for the day-to-day operations of the Fund.

The Management Expense Ratio ("MER") represents the trailing 12-month management expense ratio, which reflects the cost of running the Fund, inclusive of applicable taxes including HST, GST and QST (excluding certain portfolio transaction costs) as a percentage of daily average net asset value the period, including the Fund’s proportionate share of any underlying fund(s) expenses, if applicable. The MER reported herein is from the Fund’s most recent Management Report of Fund Performance ("MRFP").

The Rate of Return indicated in the charts above are used only to illustrate the effects of the compound growth rate and are not intended to reflect the future value of the Fund or returns on investment in the Fund.

The Growth of $10,000 chart shows the final value of a hypothetical $10,000 investment in securities of this series of the Fund as at the end of the investment period indicated and is not intended to reflect future values or returns on investment in such securities.

Material Events: For any major events that may affect the performance of a Fund in the last 10 years, including, where applicable, its participation in an amalgamation or merger with another fund or a change in its investment objectives or portfolio advisor, please refer to the Fund’s most recent prospectus in the section entitled "Name, Formation and History of the Funds". The performance of a Fund may have been different had events such as these not taken place.

Responsible Investing: Guardian Capital LP is a signatory of the United Nations-supported Principles of Responsible Investment (UN PRI). The UN PRI does not prescribe the exclusion of any particular type of company or industry; rather it requires that, as the Manager, we are informed on the ESG issues, and that we are comfortable with the activities and practices of the companies that we invest in. Guardian’s approach to responsible investing is consistent with the framework provided by the UN PRI. Our Responsible Investing policies are publicly available on our website at https://www.guardiancapital.com/investmentsolutions/responsible-investing/

Responsible investing is an approach to investing that incorporates ESG considerations into investment decisions. This approach may incorporate considerations beyond traditional financial information into the investment selection process, which could result in investment performance deviating from other products with comparable objectives or from broad market benchmarks.

Guardian’s Sustainable Funds and GEM Pools have ESG-related investment objectives, while other Guardian Mutual Funds and ETFs do not have ESG-related investment objectives. All Guardian Funds integrate ESG considerations into the investment analysis of all holdings within their respective portfolio. A Fund’s ESG characteristics and performance may change from time to time. Please review the Fund’s prospectus for details on how the Fund’s investment strategy incorporates responsible investing considerations and the associated risks, and consult your financial professional prior to investing.

Glossary of Financial Terms: For more information on the financial terms used in this section, please refer to the Glossary of Financial Terms on our website at: https://www.guardiancapital.com/glossary-of-terms/

Historic disclosure documents for the Fund may be found on the SEDAR+ website at www.SEDARPLUS.ca or may also be obtained, free of charge, by contacting us at 1 (866) 383-6546 or insights@guardiancapital.com.

Portfolio

Top Holdings

As of 05/31/2024
Ranks Holdings % Asset Mix
1GUARDIAN DIRECTED EQUITY PATH PORTFOLIO SERIES I53.31
2GUARDIAN DIRECTED PREMIUM YIELD PORTFOLIO SERIES I14.28
3GUARDIAN CANADIAN BOND FUND SERIES I13.34
4GUARDIAN INVESTMENT GRADE CORP BOND FUND SERIES I7.86
5GUARDIAN STRATEGIC INCOME FUND SERIES X4.19
6GUARDIAN FUNDAMENTAL GLOBAL EQUITY FUND SERIES I3.34
7GUARDIAN i³ GLOBAL DIVIDEND GROWTH FUND SERIES I2.17
8GUARDIAN EMERGING MARKETS EQUITY FUND SERIES I1.26
9CAD - CASH0.22
10CANADIAN DOLLAR0.04
Asset Mix
As of 05/31/2024
ESG

Morningstar® Sustainability Rating™

Above Average
Relative to Category:
Aggressive Allocation
# of Funds in Category:
7075

Morningstar®
Low Carbon Designation™

Low Carbon Badge

As of 2024-02-29

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Source: Morningstar® Essentials™. The Sustainability Rating is based on the Portfolio Corporate and Sovereign Sustainability Scores listed below, while the Low Carbon Designation is based on the Carbon Risk Score and Fossil Fuel Involvement listed below. Please click here to read the Definitions of the Morningstar® Ratings, Scores and their methodologies below , which includes information about when a rating may not be received.

Responsible investing for a sustainable world

Guardian Capital LP is a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI) and as such we are obligated to incorporate ESG issues into our investment analysis and decision-making processes. The UN PRI does not prescribe the exclusion of any particular type of company or industry; rather it requires that we are informed on the ESG issues, and that we are comfortable with the activities and practices of the companies that we invest in.

Click here to learn more

Pri Badge IFRS Logo

Sustainability Score as of 2020-07-31. Sustainability Rating as of 2020-06-30. Sustainalytics provides company-level analysis used in the calculation of Morningstar’s Sustainability Score. Sustainability Mandate information is derived from the fund prospectus.

Morningstar® Portfolio Sustainability Score™

This score between 0-100, measures the degree to which the underlying portfolio of companies are exposed to material ESG factors that can negatively impact economic value. A lower score represents a lower degree of sustainability risk.

Fund Category Average
Portfolio Corporate Sustainability Score™ 20.55 23.58
Portfolio Sovereign Sustainability Score™ 10.95 15.68

Source: Morningstar® Essentials™ based on long positions only as at 2024-02-29. Sustainalytics provides company level analysis used in the calculation of Morningstar’s Sustainability Score. The proportional relative contribution to the overall Morningstar Sustainability Rating from the Fund’s Corporate and Sovereign positions is 95.57% and 4.43%, respectively. These scores are based on the percent of Eligible Portfolio Covered, which is 98.96% of Corporate positions and is 100.00% of Sovereign positions. For a description of the Morningstar Portfolio Sustainability Scores, please see the disclaimer below by clicking here

Source: Morningstar® Essentials™ based on long positions only as at 2024-02-29. Sustainalytics provides company level analysis used in the calculation of Morningstar’s Sustainability Score. The proportional relative contribution to the overall Corporate Sustainability Score from the Fund’s ESG allocation is 16.85% Environmental, 45.42% Social, 34.02% Governance and 3.71% Unallocated Risk, respectively. For a description of the Morningstar Sustainability Pillar Scores, please see the disclaimer below by clicking here.


Source: Morningstar® Essentials™ based on long positions only as at 2024-02-29. These scores are based on the percent of Eligible Portfolio Covered, which is 94.67% for Carbon Risk and is 94.67% for Fossil Fuel Involvement. For a description of the Morningstar Portfolio Carbon Risk Scores and Fossil Fuel Involvement, please see the disclaimer below by clicking here.


Source: Morningstar® Essentials™ based on long positions only as at 2024-02-29. Sustainalytics provides company level analysis used in the calculation of Morningstar’s Sustainability Score. *Percentages represent the contribution to overall Carbon Risk Score. For a description of the Fund’s Distribution of Carbon Risk, please see the disclaimer below by clicking here.


To review the historical 12 month history of the Fund’s ratings, rankings and scores, based on the Morningstar® Sustainability Rating for Funds Methodology and Morningstar® Low Carbon Designation Methodology, please click here.

*Please note that the Morningstar® Sustainability Rating and the Morningstar® Low Carbon Designation, and any other rankings and scores, are updated monthly, typically 45 days after each month-end. The Fund’s ESG data presented may not be as recent as the Fund’s performance or holdings data.



A Fund will not be assigned a fund-level ESG rating, ranking or score by Morningstar® if it is new or does not have a sufficient enough portion of its assets under management qualified for rating according to Morningstar®'s Sustainability Rating for Fund Methodology and/or the Morningstar® Low Carbon Designation Methodology, as applicable (see below for each methodology). Excluded from qualified holdings are short positions, cash and currency, derivatives and synthetic holdings; similarly, municipal bonds, commodities, real estate, and alternative investment types are not considered corporate or sovereign and are not currently eligible to contribute toward the overall rating. The Morningstar® Sustainability Rating a Fund receives is determined relative to other funds in the same Morningstar® Global Category, and a Fund could have similar ESG risk to another fund yet still receive a different rating if those funds are in different Global Categories The Morningstar® Global Category assignments help investors search for investments domiciled across the globe which have similar attributes, as described in Morningstar’s Global Category Classifications found here: https://www.morningstar.com/content/dam/marketing/shared/research/methodology/860250-GlobalCategoryClassifications.pdf.

The Fund’s Morningstar® Sustainability and Carbon ratings, rankings and scores evaluate the ESG aspects of the Fund’s portfolio holdings and do not evaluate the efficacy of the Fund’s ESG investment strategies and are not indicative of how well ESG considerations are integrated by the Fund. The full rating methodology employed by Morningstar® can be found on their website or by clicking on the following links: Morningstar® Sustainability Rating for Fund Methodology or the Morningstar® Low Carbon Designation Methodology A copy of the Morningstar® Sustainability Rating Methodology or Morningstar® Low Carbon Designation Methodology documents may also be obtained, free of charge, by contacting us at 1 (866) 383-6546 or insights@guardiancapital.com Other providers may also prepare ESG ratings and rankings of mutual funds and ETFs based on their own methodologies, which may differ from the methodology employed by Morningstar®.


Guardian Capital LP is a signatory of the United Nations-supported Principles of Responsible Investment (UN PRI). The UN PRI does not prescribe the exclusion of any particular type of company or industry; rather it requires that, as the Manager, we are informed on the ESG issues, and that we are comfortable with the activities and practices of the companies that we invest in. Guardian’s approach to responsible investing is consistent with the framework provided by the UN PRI. Our Responsible Investing policies are publicly available on our website at https://www.guardiancapital.com/investmentsolutions/responsible-investing/

Responsible investing is an approach to investing that incorporates ESG considerations into investment decisions. This approach may incorporate considerations beyond traditional financial information into the investment selection process, which could result in investment performance deviating from other products with comparable objectives or from broad market benchmarks.



Guardian’s Sustainable Funds have ESG-related investment objectives, while other Guardian Mutual Funds and ETFs do not have ESG-related investment objectives. All Guardian Funds integrate ESG considerations into the investment analysis of all securities within their respective portfolio. A Fund’s ESG characteristics and performance may change from time to time. Please review the Fund’s prospectus for details on how the Fund’s investment strategy incorporates responsible investing considerations and the associated risks, and consult your financial professional prior to investing.

Definitions and Summaries of the Morningstar® Ratings and Methodologies:

The Morningstar® Sustainability Rating™ is a ranking of a fund’s ESG risks relative to that fund’s Morningstar® Global Category peers, and is updated monthly. It provides a measure of how well the issuing companies of the securities within a fund’s portfolio are managing their financially material ESG risks. The Morningstar® Sustainability Rating is depicted by globe icons where 5 globes equals High ranking (lower ESG risk) and 1 globe equals Low ranking (higher ESG risk) compared to category peers. A higher Sustainability Rating represents lower ESG risk relative to a fund's peer group.

The Morningstar® Sustainability Rating is calculated from the combined proportional Portfolio Corporate Sustainability Rating and Portfolio Sovereign Sustainability Rating, for the trailing 12 months on long-only positions. A Morningstar® Sustainability Rating is assigned to any fund that has either or both a Corporate and Sovereign Portfolio Sustainability Score™, and which requires i) that at least 67.00% of the fund's underlying assets are Qualified Holdings that are eligible to be rated and ii) is within a Morningstar® Global Category with at least 30 scored funds; therefore, the rating is not limited to funds with explicit sustainable or responsible investment mandates. Excluded from Qualified Holdings are short positions, cash and currency, derivatives and synthetic holdings; similarly, municipal bonds, commodities, real estate, and alternative investment types are not considered corporate or sovereign and are not currently eligible to contribute toward the overall rating.

Morningstar® Portfolio Sustainability Scores The Morningstar® Sustainability Rating framework, which was historically based on a single sustainability score, is now a modular approach, based on multiple sustainability sleeve scores to provide a more comprehensive assessment of ESG risk through multiple lenses. Morningstar® determines whether a fund’s eligible portfolio holdings can be classified under a Corporate or Sovereign framework, and each holding can only contribute to one, not both. In some cases, only one of the corporate and sovereign scores is calculated because the fund’s portfolio does not have sufficient sovereign or corporate exposure within its holdings.


The Morningstar® Portfolio Corporate Sustainability ScoreTM is an asset-weighted average of Sustainalytics’ ESG Risk Ratings* for corporate issuers in a fund’s portfolio, based on 12-month historical holdings, updated monthly. The Sustainalytics' ESG Risk Rating measures the degree to which a company's economic value may be at risk driven by ESG factors. To receive a Portfolio Corporate Sustainability Score, at least 67.00% of a fund’s corporate issuer holdings (long positions only) must have an ESG Risk Rating. The Portfolio Corporate Sustainability Score ranges between 0 to 100, with a higher score indicating that a fund has, on average, more of its assets invested in companies with high ESG risk. A fund with a lower score indicates lower ESG risk.


The Morningstar® Portfolio Sovereign Sustainability ScoreTM is an asset-weighted average of Sustainalytics’ Country Risk Ratings* for sovereign issuers in a fund’s portfolio, based on 12-month historical holdings, updated monthly. The Sustainalytics' Country Risk Rating measures the risk to a country's long-term prosperity and economic development by assessing its wealth and its ability to managing its wealth sustainably. To receive a Portfolio Sovereign Sustainability Score, at least 67.00% of a fund's sovereign issuer holdings (long only) must have a Country Risk Rating. The Portfolio Sovereign Sustainability Score ranges between 0 to 100, with a higher score indicating that a fund has, on average, more of its assets invested in sovereign issuers with high ESG risk. A fund with a lower score indicates lower ESG risk.


The Morningstar® Sustainability Pillar Scores™ are provided to help investors understand the contribution of each to a fund’s overall ESG risk, as it breaks out the Portfolio Corporate Sustainability Score for a fund into separate Environmental, Social, Governance and Unallocated ESG Risk pillars. It is based on Sustainalytics’ ESG Risk Ratings for corporate issuer securities, shown as a percentage of total, and is updated monthly.
* The rating methodology employed by Sustainalytics can be found on their website or by clicking on the following links: ESG Risk Ratings Methodology Abstract https://connect.sustainalytics.com/hubfs/INV/Methodology/Sustainalytics_ESG%20Ratings_Methodology%20Abstract.pdf or Country Risk Rating https://connect.sustainalytics.com/hubfs/INV%20-%20Reports%20and%20Brochure/Product%20Brochures/Country%20Risk%20Rating.pdf


The Morningstar® Low Carbon Designation™ is intended to allow investors to easily identify low-carbon funds across the global universe, and is calculated monthly. The designation is an indicator that the companies held in a fund’s portfolio are in general alignment with the transition to a low-carbon economy, and have low carbon risk scores and low levels of fossil fuel exposure.
The Low Carbon Designation is assigned to funds with a Historical Carbon Risk Score below 10 and a Historical Fossil Fuel Percentage of Covered Portfolio Involved of less than 7.00%. For a fund to receive a Historical Carbon Risk Score and the Historical Fossil Fuel Percentage of Covered Portfolio Involved, the percentage of eligible portfolio covered must meet or exceed 67.00%, respectively.
To determine Carbon Risk Scores and Fossil Fuel Involvement, Morningstar® uses Sustainalytics’ company-level data, based on the 12-month historical weighted averages. The Historical Carbon Risk Score measures the degree of material financial risk within a fund’s portfolio, calculated based on the underlying companies’ exposure to and management of material carbon issues. The Historical Fossil Fuel Involvement measures the percentage of a fund’s covered portfolio that is exposed to corporations that generate any revenue from involvement in fossil fuels.

Portfolio Carbon Risk Score measures of the degree of material financial risk posed by the transition to a low carbon economy, and was designed to support investors in evaluating the degree of carbon-related risk within the fund. It is an asset-weighted score based on Sustainalytics’ Carbon Risk Rating* of the companies held in the fund’s portfolio, calculated monthly, based on the most recent 12-month trailing average. The Sustainalytics’ Carbon Risk Rating measures the degree to which a company’s enterprise value is at risk, driven by factors related to the transition to a low carbon economy, or more technically speaking, the magnitude of a company’s unmanaged carbon risks. A company’s ability to reduce emissions and mitigate carbon risk using various management strategies is deducted from their overall carbon risk exposure score. A lower overall Portfolio Carbon Risk Score means lower carbon risk. The Portfolio Carbon Risk Score is ranked from 0 (Low) to 50+ (Severe).

Portfolio Fossil Fuel Involvement measures a portfolio’s exposure to companies involved in high-impact and conventional fossil fuels and is designed to highlight the percentage to which a fund’s portfolio is exposed to this most significant carbon risk, calculated monthly, based on the most recent 12-month trailing average. The Sustainalytics’ Fossil Fuels Involvement* examines a company’s involvement in conventional fossil fuels, such as thermal coal and oil & gas, as well as high-impact fossil fuels including oil sands, oil shale and arctic oil and gas. The Portfolio Fossil Fuel Involvement is shown as a percentage out of 100.00%, based on a rescaled, adjusted eligible portfolio of long positions less short positions.

Fund’s Distribution of Carbon Risk shows the percent of the fund’s portfolio holdings with negligible, low, medium, high, or severe Carbon Risk Score as calculated by Sustainalytics, shown as a percentage of the fund’s total Portfolio Carbon Risk Score, calculated monthly, based on the most recent 12-month trailing average.
*The rating methodology employed by Sustainalytics can be found on their website or by clicking on the following links: Carbon Risk Ratings and Research https://connect.sustainalytics.com/hubfs/INV/Climate%20Solutions/Carbon%20Ratings%20and%20Research/Carbon%20Ratings%20and%20Research%20(Climate%20Solutions)%20Brochure.pdf

© 2023 Morningstar®. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar® and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar® nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Sustainalytics is an ESG and corporate governance research, ratings, and analysis company affiliated with Morningstar®, Inc.

Distributions
Distributions
SI $2.25833
 2024$0.1726
May-31$.034520
Apr-30$.034520
Mar-28$.034520
Feb-29$.034520
Jan-31$.034520
 2023$0.41424
Dec-29$.034520
Nov-30$.034520
Oct-31$.034520
Sep-29$.034520
Aug-31$.034520
Jul-31$.034520
Jun-30$.034520
May-31$.034520
Apr-28$.034520
Mar-31$.034520
Feb-28$.034520
Jan-31$.034520
 2022$0.41424
Dec-30$.034520
Nov-30$.034520
Oct-31$.034520
Sep-30$.034520
Aug-31$.034520
Jul-29$.034520
Jun-30$.034520
May-31$.034520
Apr-30$.034520
Mar-31$.034520
Feb-28$.034520
Jan-31$.034520
 2021$0.463559
Dec-31$.097039
Nov-30$.033320
Oct-29$.033320
Sep-30$.033320
Aug-31$.033320
Jul-30$.033320
Jun-30$.033320
May-31$.033320
Apr-30$.033320
Mar-31$.033320
Feb-26$.033320
Jan-29$.033320
 2020$0.472736
Dec-31$.108036
Nov-30$.033150
Oct-30$.033150
Sep-30$.033150
Aug-31$.033150
Jul-31$.033150
Jun-30$.033150
May-29$.033150
Apr-30$.033200
Mar-31$.033150
Feb-28$.033150
Jan-31$.033150
 2019$0.320955
Dec-31$.087624
Nov-29$.033333
Oct-31$.033333
Sep-30$.033333
Aug-30$.033333
Jul-31$.033333
Jun-28$.033333
May-31$.033333

For press releases on distributions please click here.

Disclaimer: This distribution data is for informational purposes only and should not be construed to be tax advice. Your own tax advisor must be consulted for advice. Distributions are paid in Canadian dollars unless otherwise stated. Each ETF makes distributions in accordance with the distribution policy stated in its Prospectus. Each of the ETFs has the ability to make distributions as returns of capital. The payment of distributions should not be confused with an ETF's performance, rate of return or yield. If distributions paid by the ETF are greater than the performance of the ETF, distributions paid may include a return of capital and an investor's original investment will decrease. A return of capital is not taxable to the investor, but will generally reduce the adjusted cost base of the securities held for tax purposes. If the adjusted cost base falls below zero, investors will realize capital gains equal to the amount below zero. Future distribution dates may be amended at any time. Reinvested distributions are not paid in cash but instead remain invested in the ETF. To recognize that reinvested distributions have been allocated to investors for tax purposes the amounts of these distributions should be added to the adjusted cost base of the units held. The characterization of distributions for tax purposes (such as dividends/other income/capital gains etc.) will not be known for certain until after the ETF's tax year end. Therefore investors will be informed of the tax characterization after year-end and not with each distribution. For tax purposes these amounts will be reported annually on official tax statements.

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