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The Renaissance

Advisor

QUARTERLY FUND PROFILES / PRACTICE MANAGEMENT / OUTLOOK / OPINION

The Roadshow Roundtable Before they hit the roadshow circuit, a few of our experts open up on some tough topics LIVE BETTER

Suit Yourself – Dress for Success BACK OF THE NAPKIN

Mastering HNW Seminars – attract, captivate and motivate a wealthy audience

Q2 – JUNE 30, 2012

WE’RE BRINGING

THE FUTURE OF INVESTING INTO PERSPECTIVE


TM

Uncertainty is the new certainty.

Know the score. Gain the advantage. Take advantage of the new certainty with the Renaissance Optimal Income Portfolio – an all-in-one income generation solution with proven 1st quartile performance in volatile markets.

1st Quartile Performance

1 yr.

2 yrs.

3 yrs.

Since Inception3

Renaissance Optimal Income Portfolio1 Quartile Ranking2

3.3% 2nd

7.6% 1st

7.6% 1st

3.3% n/a

Go to www.renaissanceinvestments.ca/oip 1

Performance as at June 30, 2012.2Source: Morningstar, for the periods specified ending June 30, 2012 for Class A units of the Renaissance Optimal Income Portfolio. ©2011 Morningstar Research Inc. 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. Quartile rankings are determined by Morningstar Research Inc., an independent research firm. Quartile rankings are comparisons of the performance of a fund to other funds in a particular category and are subject to change monthly. The quartile ranking reflects performance of Class A. The quartiles divide the data into four equal segments expressed in terms of rank (1, 2, 3 or 4). The top 25% of the funds in a category are in the first quartile and the next 25% are in the second quartile. This Fund is categorized as a Canadian Fixed Income Balanced fund. For each period, the quartile performance and the number of funds in this category are as follows: 1 year, 2nd quartile, 200 funds; 2 years, 1st quartile, 183 funds; and 3 years, 1st quartile, 151 funds. For more details, see www.morningstar.ca. 3Inception date: November 13, 2007. Please read the Renaissance Investments family of funds Simplified Prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Renaissance Investments is offered by CIBC Asset Management Inc. ™Renaissance Investments and “invest well. live better.” are registered trademarks of CIBC Asset Management Inc.

www.renaissanceinvestments.ca


PAGE

In this issue

8 11 148

RENAISSANCE INVESTMENTS

Tax and Estate Willpower

3

Economic Outlook Not There Yet

4

Back of the Napkin Mastering HNW Seminars

6

Invest Well The Roadshow Roundtable

8

Solution Highlight High Income + High Historical Outperformance

12

Thanks to Our Supporters Flying with Integrity

13

Axiom Portfolios Profiles Portfolio Essentials Performance Summary

14 32 34

Renaissance Investments Fund Profiles New Funds Money Market Funds Fixed Income Funds Balanced Funds Equity Income Funds Canadian Equity Funds U.S. Equity Funds Global Equity Funds Specialty Funds Fund Essentials Performance Summary

36 38 46 54 68 72 80 86 94 126 140 146

Live Better Suit Yourself – Dress For Success

148

Brain Calisthenics

151


Letter from the National Sales Manager

Inflation protection just like house insurance As summer draws to a close, it is my hope that you have spent plenty of time with family and friends and have enjoyed all that the warm holiday season has to offer. Now back to our clients and what we need to be concerned with going forward. I speak many times about relationships and how to build better rapport with your clientele and gain new prospects. We have very rarely spoken of product and investment ideas in this space. This time, I will venture into new territory as I believe we have an important message for you that you can share with your clients. One of the central themes you will hear at the Live & Interactive events this fall is inflation. That may surprise you. Many of you will debate whether inflation is imminent, not coming for the foreseeable future or maybe even argue deflation is more of an issue. Regardless of your perceptions, your clients are reading about it in the media almost on a daily basis and are looking for some reassurance around this topic. I would argue that preparing for inflation and protecting purchasing power is a little like having house insurance in case of fire. You hope you never have to use it, but you feel much better having coverage and wouldn’t think of being without some form of protection “just in case” a fire occurs. I believe that the same holds true for inflation. Whether it is upon us now or will be in the future, a discussion with your clients should be part of any meeting. It can be educational, as is Ben Tal’s Inflation 101 video on our website, and should make a recommendation as to how to be protected should inflation begin to grip our economy. There has been a tremendous amount of stimulus injected into economies globally and the fear of inflation is in the back of everyone’s mind. Why not be proactive and discuss this concept with your clients. They will understand the issue and be appreciative of the proactive nature of your advice. (As an aside, the Renaissance Optimal Inflation Opportunities Portfolio is an excellent investment tool for assisting with the inflation issue.) I would encourage you to think of inflation with your clients and the impact that it may have on their investment portfolios. Consider that a low inflation rate at this time in history, with very low 10-year yields, has a more detrimental effect on purchasing power than a much higher inflation rate with higher yields and a positive real return that has occurred historically. As an advisor, you do not want to be wrong with recommendations to clients and I believe that this is a good opportunity to make a “right” pick for them. Please join us for our Live & Interactive events across the country that will pick up on the inflation theme and talk much more about investment opportunities with this economic backdrop. Please contact me with any ideas or comments. As always, we will strive to earn your business and become your trusted business advisor. Enjoy the rest of the summer.

Sincerely,

Dave Wahl National Sales Manager Renaissance Investments 416-943-6959


Willpower Common will planning mistakes and how to avoid them

TAX AND ESTATE

A will is at the heart of every good estate plan. This key document records an individual’s intentions for the management and transfer of estate assets and names an executor (sometimes called an estate trustee; in Quebec, called a liquidator) to administer the estate. Although a 2012 CIBC poll revealed that the majority (55%) of respondents had created a will, here are some preventable mistakes that occurred even among those with a will. Underestimating what is involved with administering an estate Executor duties include making funeral arrangements, determining the value of estate assets, filing tax returns, collecting insurance proceeds, and accounting for financial activities (to name only a few). In the CIBC poll, two-thirds of respondents thought it would take one year or less to wrap up the estate. Not surprisingly, 78% of poll respondents had never administered an estate themselves. Estate administration typically takes 12 to 18 months; however, complications such as dying without a will, tax errors and estate litigation can delay the process by months or even years. When choosing an executor, consider whether the individual has the time and ability to dedicate to the task for a period of up to two years, or possibly longer. Choosing the wrong executor Almost 85% of Canadians have chosen a friend or family member and 55% have chosen someone who has never acted as an executor, according to the CIBC poll. An executor should have the time, skill and knowledge to undertake the numerous duties and deal with lawyers, accountants, financial institutions, insurance companies, government agencies and beneficiaries, some of whom may be in other cities, provinces, or countries. For many estates, choosing a corporate executor (either as the sole executor or a co-executor) can be an excellent option, since this can relieve family and friends of a difficult and time-consuming burden. If estate administration is already underway, an “agent for executor” can be still hired to perform financial administration duties on behalf the executor. A corporate executor

or agent for executor may even save money for the estate, since a knowledgeable professional can implement post-mortem tax strategies that could save thousands of dollars of tax.

Almost 40% of the CIBC poll respondents who had wills hadn’t updated these documents in the last five years. Preparing a will…and then forgetting about it It is recommended that wills be reviewed regularly but almost 40% of the CIBC poll respondents who had wills hadn’t updated these documents in the last five years. Changes that should trigger a review of a will include such things as marriage, divorce, the birth of a child, or relocating to another province or country. When reviewing a will, it is also a good time to consider whether the best choice has been made in naming the executor(s). Jamie Golombek is Managing Director, Tax and Estate Planning with CIBC Private Wealth Management. He works closely with advisors to help them provide integrated financial planning solutions for their high-net-worth clients. Jamie is frequently quoted in the media as an expert on taxation. Follow @JamieGolombek www.advisor.ca/togo Podcast > Americans in Canada Get Tax Reprieve Video > Your Estate Matters! www.renaissanceinvestments.ca/en/jamie_golombek/

RENAISSANCE INVESTMENTS 3


Not There Yet But when it’s time to be brave, there is cash in abundance

ECONOMIC OUTLOOK

In retrospect, it’s fair to say that the performance of the Canadian domestic economy as it rebounded from the Great Recession was nothing short of remarkable. A generous government and resilient consumers softened the blow of a U.S. and global downturn and provided a healthy lift during the early stages of the recovery. Strong export growth and a surge in capital spending followed, further spurring activity during the second leg of the economic revival. But does the economy have any more tricks up its sleeve to outperform yet again? We doubt it. While growth should do well enough to avoid a new round of monetary policy easing, tapped out consumers and cost-cutting governments could see the Bank of Canada wait for a U.S. growth-induced pick-up in 2014 before raising rates.

“...many observers thought 2012 might finally bring the real recovery needed to cut joblessness further from the recession’s 27-year high of 10 percent.” In the U.S., just a short while ago many observers thought 2012 might finally bring the real recovery needed to cut joblessness further from the recession’s 27-year high of 10 percent. That’s looking less and less probable as earlier weather-related strength unwinds and eurozone and policy-related uncertainties hamper the recovery’s earlier drivers such as corporate outlays and exports. Nor is 2013 likely to bring improvement. Even in the likely event that Congress tones down the economic-crippling level of budget-tightening built into the current fiscal plan, heightened restraint and an easing of earlier growth drivers should hold gross domestic product (GDP) to a 1.9 percent pace next year, on the heels of a lukewarm 2.1 percent increase in 2012.

The blueprint for a rebuild of Europe’s economic motors isn’t hard to outline: a kinder, gentler path of fiscal restraint in the periphery, with much more support for those countries’ refinancing needs from stability funds and central

4 RENAISSANCE INVESTMENTS

bank purchases. At this point, the politics of France, Greece, and the Netherlands show a move away from extreme austerity, but there’s a Berlin wall of resistance to less austerity for those under bailout plans, or more aggressive monetary policy. Inaction could prolong the recession into 2013, or worse, spell a chaotic breakup of the eurozone. Still, each time we approached a crisis point, Europe has come up with an 11th hour deal. Thus, best bets are that they will continue to be dragged into concessions.

As for the emerging markets, while a sub-consensus 7.8 percent GDP print is likely in China this year, the policy response is well underway, one that should accelerate growth to 8.5 percent in 2013. Having excessively tightened to prick a housing bubble and contain inflation, Beijing is reversing course, with below-target inflation giving policy makers a green light. In contrast, India’s stubborn inflation is restraining its central bank, and we’ve slashed our growth forecast for that formerly shining economy.

“The bottom line is that while the bond market may have already priced in the worst…we could still see some pressure on cyclical assets and the Canadian dollar in the near-term.”

The bottom line is that while the bond market may have already priced in the worst (with the Canadian curve unreasonably factoring in a Bank of Canada ease), we could still see some pressure on cyclical assets and the Canadian dollar in the near-term. In equities, we continue with our lean towards those focused on dividend income, domestic growth, and less cyclical commodities (potash, uranium). But if, as we expect, enough policy measures are taken to make 2013 a slightly better year for global growth, we could begin a gradual shift away from the safest of safe haven assets before year-end.


Sitting on Cash

“One thing is certain, when investors decide to test the waters, there will be plenty of cash to do so.”

Share of Cash in Total Financial Assets 30

Excess Cash*

%

60

$ bn

40

25

20 20

At this point, equities and resource prices look cheap relative to our projection for 2013 economic conditions. Forward price-to-earnings multiples are low, the forward curve for some commodities has flattened out, counting on a lasting global slowdown, and resource equities have underperformed the associated commodity prices. Nimble investors will at some point have to make a brave move back towards these “risk on” assets, including the Canadian dollar and cyclical stocks, and ditch longer government bonds that now offer very negative real yields.

One thing is certain, when investors decide to test the waters, there will be plenty of cash to do so. The amount of cash in chequing and saving accounts, brokerage accounts, money market mutual funds and GIC balances maturing in less than a year, is currently at record-high of $615 billion, and it is still rising by 7.5 percent on an annual basis – hovering around the fastest pace since 2009 (see chart “Sitting on Cash”).

What’s interesting here is that this new cash is being accumulated on top of an already elevated cash position. Immediately following the crash, investors dramatically raised their cash holdings from roughly 20 percent of the value of their financial assets to 25 percent. And despite the 40 percent advance in stock prices since then, this relative cash position remains unchanged. So now, any extra dollar that goes into cash is adding to an already anxious risk aversion position. As a result, investors are currently sitting on record-high excess cash.

0 15 -20 10

-40

5

-60 97

00

03

06

09

12

99 01 03 05 07 09 11

* Cash position relative to long-term trend. Source: Bank of Canada, Statistics Canada, CIBC

Benjamin Tal is Deputy Chief Economist for CIBC. Described as one of Canada’s leading experts on the real estate market by the International Monetary Fund, he is responsible for analyzing economic developments and their implications for North American fixed income, equity, foreign exchange and commodities markets. www.advisor.ca/togo Podcast > Choose China Over India www.renaissanceinvestments.ca/en/economy/

RENAISSANCE INVESTMENTS 5


Mastering HNW Seminars Attract, captivate, and motivate a wealthy audience

BACK OF THE NAPKIN

You’ve spent the last few weeks planning your first prospecting HNW seminar. You’ve sent out hundreds of invitations to the most affluent of neighbourhoods and have already received a surprising number of RSVPs back in the mail. With your event just a week away, it would appear that everything’s moving along nicely! But have you considered everything? And are you truly prepared to capitalize on this tremendous opportunity to grow your business? The success of your seminar will depend on the execution of several important moving parts. The reality is, a well-attended seminar may provide a momentary illusion of success, yet generate very little (if any) in the way of financial reward. In fact, this scenario probably unfolds more often than most advisors would like to admit. So, let’s step back and get clear on the ultimate goal of your seminar.

The ultimate goal of your seminar is to accomplish just one thing...gather new assets! Based on my experience with hundreds of HNW seminars over the last decade, I want to share with you what I believe to be the three critical phases of the “Seminar Continuum”. To maximize the potential for success, each of the phases must be executed with precision.

ATTRACT

CAPTIVATE

MOTIVATE

Get them to the seminar

Grab and hold their undivided attention

MOTIVATE Get them

THE MAGNET

THE MESSAGE

THE CALL-TOACTION

PHASE 1

PHASE 2

PHASE 3

to change what they’ve been doing

Remember, it’s NOT the goal of your seminar to: X Fill a room with people

X Make new friends

X Feed the hungry

X Educate an audience

X Entertain a group of diners

X Practice your event-planning skills

The Seminar Continuum Phase 1: Attract You can’t run a successful seminar without an audience! The Attraction phase is concerned with getting the right people to your event, and involves all of the elements that will collectively serve as your seminar “magnet”. Things like:

Once your invitation has been opened, you will need to grab the reader’s attention with a headline topic that surprises them, intrigues them, or blatantly appeals to their self-interest. Avoid using worn-out industry terminology and lifeless financial jargon when you’re developing your topic headline. For Example:

1. Your Seminar Invitation 2. Your Seminar Topic 3. Your Seminar Venue Whether you’ve purchased or compiled a list of wealthy prospects, or have simply identified an affluent neighbourhood to target, it’s now time to advertise your upcoming seminar. The research shows that high-quality, wedding-style invitations are opened by the majority of recipients. Invest your marketing dollars here to greatly increase the odds that your message will reach the eyes of your intended audience.

6 RENAISSANCE INVESTMENTS

Instead of: “Prudent Asset Allocation Principles” | boring, flat, jargon Consider: “Take the Fear out of Investing!” | emotional, hopeful, interesting Instead of: “Effective Financial Planning” | boring, flat, jargon Consider: “The Secrets of Wealth Creation” | provocative, instructive, interesting Follow your headline with 3-5 bullet points to expand upon the main topic and layer in additional elements of interest. Your objective here is to appeal to your reader’s curiosity and leave them wanting more.


In addition to your seminar “topic”, some of your prospects will place a lot of importance on your chosen venue as a reason to attend. For a dinner seminar, your venue should be recognizable, have a reputation for quality food, and should carry some degree of “cachet” in order to appeal to the affluent.

Close off the session by clearly articulating what they can expect from you after the seminar. Manage their expectations by explaining that you will be contacting each of your guests in the next 24-48 hours to answer any questions, or discuss the unique challenges they may be facing.

Keep the ultimate goal of your seminar top-of-mind during the Attraction Phase. Avoid the temptation to blindly accept all interested parties just so you can fill the seats. Instead, be sure to qualify all invitees by clearly stating the following on your invitation: “Please note: this event is ideally suited for investors with a minimum of $(insert amount) of investable assets.”

There are many other “operational” considerations around the planning and execution of a successful seminar, but a clear understanding of the three phases of the Seminar Continuum will keep you focused on the core fundamentals necessary for success.

Phase 2: Captivate Now that you’ve attracted a room full of qualified guests, your next objective is to grab and hold their attention for the duration of your seminar! To accomplish this, your spoken message will need to be interesting, relevant, thought-provoking and direct. Build rapid rapport with your audience by focusing on their emotional needs. Avoid the temptation to “sell” the services that you offer, but rather address what your audience needs to hear with respect to preserving and growing their wealth. Captivate them by displaying a deep understanding of their internal challenges during volatile times, and introduce them to how you consistently resolve these issues for your clients. Inject emotional semantics into each aspect of your discussion – using terms like “safety, protection, comfort, peace of mind, growth, and preservation”. Once you’ve made the emotional connection, the technical elements will simply provide logical support for the listener’s growing interest in you and your offering. Be cautious when inviting a guest speaker to attend your seminar. It’s absolutely essential that the focus of your audience remains on you as the expert and the go-to professional. All too often, a talented guest speaker will make a strong connection with an audience, while the advisor goes home largely forgotten.

Putting It All Together…

Sample Agenda

Seminar Materials

• Greet guests as they arrive

• Projection screen

• Show them to the private room

• Laptop computer

• Welcome your guests

• Projector

• Outline housekeeping items (washrooms, etc)

• Back-up copy of slideshow on USB key

• Explain agenda for the evening

• Remote slide advancer

• Wait staff takes orders and serves appetizers

• Power bar with long cord

• Introductory comments

• Rectangular table for laptop, projector, materials

• Initial presentation by host advisor • Introduction of guest speaker • Q&A session • Closing comments

• Flipchart, easel, markers • Handouts and/or take-home packages • Evaluation cards and pens

• Distribute evaluation cards • Guest sign-in sheet • Provide a take-home package

Phase 3: Motivate Once you’ve captured the attention of your audience, and have made a genuine emotional connection, it’s time to motivate them to change what they’ve been doing with their wealth. Remember, up until now, their financial strategy has not involved you! Take the time to summarize the key points from your main discussion. And, in the process, ask the audience some carefully worded questions to force them to formulate internal responses and to create doubt around their current approach. Position your team’s wealth management process as the missing piece in their financial picture. Install a sense of urgency, by highlighting the “pain” they may experience by not taking action…and the degree of “pleasure” (or payoff) they will enjoy by making a change.

Grant Shorten is Director of Strategic Insights at Renaissance Investments. He offers insights and approaches that will work with your clients and have an immediate impact on your practice. www.advisor.ca/togo Podcast > Three steps to the perfect seminar Video > Mastering HNW Seminars

www.renaissanceinvestments.ca/en/practicemanagement/

RENAISSANCE INVESTMENTS 7


1. Suzann Pennington Managing Director and Head of Canadian Equities CIBC Global Asset Management

2. David J. Winters Chief Executive Officer Wintergreen Advisers, LLC

3. Patrick O’Toole Vice-President, Global Fixed Income CIBC Global Asset Management

4. Richard Elmslie Director and Senior Portfolio Manager RARE Infrastructure

5. Luc de la Durantaye First Vice-President, Asset Allocation and Currency Management CIBC Global Asset Management

WE’RE BRINGING

THE FUTURE OF INVESTING INTO PERSPECTIVE

8 RENAISSANCE INVESTMENTS


1

invest well The Renaissance Advisor Live & Interactive Roadshow is coming to a city near you this fall. Before they board the plane for their cross-Canada adventure, we sat down with a few of the speakers to get their thoughts on some timely topics – from long-term investing to must-have gadgets. 2

“Long-Term Investing is Dead.” That was a headline in a Canadian investment publication recently. What’s your reaction?

3

Suzann Pennington – This type of sensationalistic headline is an easy sell in tough times – I’ve seen it a number of times in my career. Richard Elmslie – Long-term investing is by no means dead. The long term is relatively simple to predict, it's the path to get there that is very uncertain. David J. Winters – I completely disagree with the headline. When we look at the firms and people who have really prospered, they were owners or part-owners of businesses for long periods of time. For example, in Canada the Thomson family started with a single newspaper and over the past 50 years has grown into a global media giant. They didn’t achieve this by rapidly trading securities or other forms of short-term market speculation, but taking a thoughtful, long-term approach to growing the business.

4

Luc de la Durantaye – The world economy has always experienced a changing environment whether we think of the depression of the 1930s, the war periods or more recently the 1990s economic boom followed by the technology bubble, the commodity boom in early 2000s and the real estate bust of 2008. In other words, the investment environment has never been a long-term stable investing continuum. Suzann Pennington – I believe it is true that many people have, unfortunately, become very short term in their views and research. But I’ve met a lot of great advisors over the years who have diligently supported clients through the tough times. It is much easier to get the long-term plan right than it is to market time. Patrick O’Toole – I can understand the writer’s frustration in dealing with a prolonged deleveraging cycle. Given the volatility of the past years and the political actions that have altered how financial markets work, it’s tempting to agree. However, I still believe that the old axiom of maintaining a well-diversified portfolio holds true. Those who remained disciplined and who held a reasonable amount of fixed income securities have likely experienced much less volatility in recent years, and have grown their portfolios.

5

Suzann Pennington – The consequence of those who are insisting on shortening time horizons is that we are finding more market inefficiencies – more mispriced stocks. Our long-term life cycle models allow us to manage through the daily/quarterly noise that is so prevalent in market headlines. Often short-term investors fail to have the context to properly evaluate the importance of a piece of information to the true value of the underlying company. I believe that the combination of short-term traders and the proliferation of index-based ETFs has actually increased the opportunities for long-term fundamental investors like us to outperform.

RENAISSANCE INVESTMENTS 9


Markets have relentlessly rotated from risk-on to risk-off. How should those with a longer-time horizon (Gen X, Gen Y) approach wealth generation in these conditions?

If you had to name a key theme for advisors and their clients in 2013, what would it be and why?

Patrick O’Toole – I don’t think investors, be they Gen X, Y or whatever, should alter their strategies if they are investing with a longer-term horizon. Stick to a discipline that looks through short-term volatility, maintain proper diversification across sectors and countries, and avoid trying to time markets.

Suzann Pennington – I don’t know when it will happen but we have to be ready for the inevitable end to the great bull market in bonds and the implications that has for long-term portfolio positioning and sources of sustainable income. We spend a lot of time stress testing company balance sheets, cash flows and dividends and are very optimistic about the ability of many companies in our universe to sustain and grow their dividends, even in a challenging macro environment of weak growth and ongoing credit shocks.

Richard Elmslie – Yes, focus on the long term and forget about the short-term noise. The long term should be about big picture themes and these should, by their nature, hold true through the short-term volatility. The volatility should be used opportunistically to top up or trim to rebalance investments. Suzann Pennington – I don’t think that you can outsmart the market with big home runs – just keep it simple and swing for singles. I’m not a big believer in market timing and I saw a lot of people get whipsawed in 20082009. Keep it simple: dollar-cost averaging is a great way to buy more units when security prices are low and less units when security prices are high. David J. Winters – We like Ben Graham’s famous quote “Be greedy when others are fearful and fearful when others are greedy”. It takes a great deal of discipline to execute this approach in the real world, but it can be very rewarding.

“When financial markets experience short-term turbulence, we found that focusing on the value factor provides an important guidepost.” Luc de la Durantaye Luc de la Durantaye – One of our main long-term investment anchors has always been relative valuation – emphasizing equity, fixed income or currencies that are undervalued, and avoiding expensive asset classes. This valuation approach has provided empirical evidence of successful investment signals for investors. When financial markets experience short-term turbulence, we found that focusing on the value factor provides an important guidepost. Suzann Pennington – My apologies for continuing with the motherhood statements but the truth is, they work: One – If you don’t have a long time horizon you shouldn’t be investing in equities – there always has been, and always will be, volatility. Two – Work with your advisor to set an appropriate long-term diversified portfolio to meet your objectives and your risk parameters. THEN STICK TO IT. And three – Understand what role the investments in your portfolio are supposed to play in your diversified strategy. Not all holdings should be performing the same way at the same time. Proper diversification results in better risk-adjusted returns and ultimately more restful sleep.

10 RENAISSANCE INVESTMENTS

“...we have to be ready for the inevitable end to the great bull market in bonds and the implications that has for long-term portfolio positioning and sources of sustainable income.” Suzann Pennington

Luc de la Durantaye – Fiscal retrenchment will likely be with us in 2013 as the U.S. will be forced to tackle its large fiscal deficit at the same time as Europe and Japan will continue their efforts to control their respective budget deficits. A focus on income during this period of expected sluggish growth should help portfolio performance. Richard Elmslie – Four years into the crisis there is still no clear view regarding the resumption of economic growth. In this unpredictable environment, we believe that advisors and clients should be focused on capital preservation and investing in companies with secure, predictable cash-flows and growing dividends. David J. Winters – Look to the world outside of North America. There are many portions of the world that are growing and even thriving, and by expanding your investing horizons, you have a great opportunity to prosper over the long-term as the middle classes around the world continue to develop. Selectively finding quality companies that have multi-currency streams of earnings is a key part of our process. Patrick O’Toole – The most likely theme for 2013 is that we’ll have more disruptions from the credit crisis fallout. Debt levels continue to remain too high in most of the developed world, and Europe has much work to do if it’s going to better align fiscal policies, labour cost structures, and productivity. Locally, we will likely see Canada begin to lose some of its lustre relative to other countries. We’ll still look good, but excessive household debt levels will limit consumers’ ability to bolster overall growth.


Outside of your regular quantitative/qualitative analysis, where do you get your investment ideas from?

Finally, when you are on the road presenting, what’s the one item you can’t be without?

Richard Elmslie – By talking to industry experts, including management of companies in our universe about issues (both positive and negative) affecting their companies, helps me to identify the longer-term trends and to find ways to invest in them.

Patrick O’Toole – I must have my iPad. It’s easy to get through security at the airport, and allows me to maintain contact with colleagues and the market, surf the web, read my newspapers and check email.

David J. Winters – It’s reading and analyzing the public corporate filings and combining that with a lot of hard work and shoe leather. Travel has been an invaluable resource for us. I recently spent four weeks in Asia, and being able to witness the rise of the middle class is extremely helpful while we analyze investment ideas. Suzann Pennington – We have had great results from our analysts and portfolio managers picking up a nugget of information and pursuing its implications to develop a view that may be quite different from the street. Our analysts are “career analysts” – they are typically industry specialists with very deep knowledge combined with curiosity. This desire to always explore a little deeper, think outside the box, and then share that knowledge to stimulate discussion and deeper understanding with the entire team has been a terrific source of ideas. Patrick O’Toole – I think we’ve been successful in the fallout from the credit crisis because we believed we were in a different environment than seen in past recessions. The old relationships of the economy’s response to central bank actions in the post-war recession/recovery cycles had to be ignored. We sought different indicators from the banking and housing sectors, and studied history for other periods where deleveraging had dominated the economic backdrop for a prolonged period of time.

Richard Elmslie – Agreed. iPad. Through sheer weight of numbers sold, the key software providers are prioritizing iOS apps ahead of everything else. Suzann Pennington – My BlackBerry. I still find it to be the quickest, simplest, most reliable way to stay in touch with the market, new information, companies and the office. I am disappointed at RIM’s failure to deliver on a competitive PlayBook though so am still lugging around my computer. David J. Winters – I keep my BlackBerry and Bloomberg close at hand at all times to keep in touch with my office and to stay informed about the latest news. Luc de la Durantaye – A good piece of research! We have a lot of reading given the various sources of research we have access to. I always bring a piece of research that I can catch-up on in the plane or taxi. Of course I also need to stay connected to the office via the BlackBerry!

“I must have my iPad. It’s easy to get through security at the airport, and allows me to maintain contact with colleagues and the market, surf the web, read my newspapers and check email.” Patrick O’Toole

Hear directly from these portfolio managers, and more experts, at The Renaissance Advisor Live & Interactive Roadshow this fall.

ADVISOR ToGo Access to the experts when you need them

A

Listen to short podcasts from these experts and others. www.advisor.ca/togo

David J. Winters – Wintergreen Advisers

Podcast > Boring Companies Make Good Investments

Patrick O’Toole – CIBC Global Asset Management

Podcast > Long-Term Interest Rates Will Remain Stable

Nick Langley – RARE Infrastructure

Podcast > Know Your Infrastructure

www.renaissanceroadshow.ca

View short videos from the experts at: www.renaissanceinvestments.ca/en/manager-videos Suzann Pennington – CIBC Global Asset Management Video > Understanding Downside Risk Will Continue to Pay Off David J. Winters – Wintergreen Advisers Video > Buy and Hold Investing is Alive and Well

Powered by Renaissance Investments. RENAISSANCE INVESTMENTS 11


High Income + High Historical Outperformance Renaissance Millennium High Income Fund

SOLUTION HIGHLIGHT

In today’s low rate environment, income doesn’t have to come at the expense of capital gains. Use a multi-asset class income strategy with the flexibility to search for sustainable yield and total returns: High Current Income:

High Historical Outperformance:

• High 6.50% distribution yield with a minimum of 4.86% since the fund’s inception in 1997 • Predictable $0.06 monthly distribution

• One and two year returns in top 5% of all funds in category (Source: PALTrak) • First and second quartile rankings across all time periods

7

Growth of $10,000

Yield (%)

$17,000

6 5 4

Renaissance Millennium High Income Fund S&P/TSX Composite TR Canadian Dividend & Income Equity Category

3.5% greater than equities

4.2% greater than government bonds

$15,000 25% MORE

3 $13,000

2 1 0

1

$11,000

Equities1

Renaissance MHI2

Fixed Income3

S&P/TSX Composite Index. 2 Renaissance Millennium High Income Fund; distribution yield may include a combination of capital gains, interest, dividend, and return of capital. 3 DEX Universe Bond Index.

Key Features: • Taps into multiple sources of yield, including investment grade bonds, high yield bonds, REITs and global dividendpaying equities • Lower volatility and higher risk-adjusted returns vs. peer group • Pays fixed $0.06/mth • Managed by Barry Morrison since fund’s inception in 1997 more information on how to put this solution Z toForwork for your clients, please speak to your Renaissance Investments representative.

12 RENAISSANCE INVESTMENTS

$9,000 2009

2010

2011

2012

Source: Morningstar Direct

First & Second Quartile Rankings Across All Time Periods Fund Performance vs. Category and S&P/TSX Composite Index (As at June 30, 2012)

Quartile Ranking Fund (%) S&P/TSX Composite Index (%) Category Average (Canadian Dividend and Income Equity) (%) Value Added vs. S&P/TSX Composite Index (%)

6 mth 1 4.20 (1.53)

YTD 1 4.20 (1.53)

1 yr 1 6.32 (10.25)

3 yr 1 14.95 6.69

5 yr 2 2.00 (0.74)

10 yr 2 7.48 7.56

1.11

1.11

(3.11)

8.86

1.16

7.42

+5.73

+5.73

+16.57

+8.26

+2.74

-0.08

(Current yield is annualized historical yield based on the 7-day period ending June 30, 2012 and does not represent an actual one-year return) Source: Morningstar Direct


Flying With Integrity THANKS TO OUR SUPPORTERS

Without the support of advisors like you, Renaissance Investments would not enjoy the privilege of helping so many Canadians invest well and live better. Here is one of the outstanding professionals we are so very proud to work with. What I love about the business: Being able to provide top-quality professional advice with a very personal focus. Being able to do the right thing and always follow through with promises. Geographically my location is in the perfect spot, just 1 hour north of Edmonton on the road to Fort McMurray. Our clients are mostly blue collar business owners with a strong focus on agriculture and oilfield service. Lastly, I thank my lucky stars that I started this business at age 24, because now 28 years latter, I can not imagine a more rewarding life...giving to family, community church and people. How I prepare and lead client meetings to ensure they are productive: The very first thing I do before we get started is to ask the clients ‘Is there anything specific you want to discuss?’. I have a meeting agenda, but their questions and discussion areas always supersede my agenda. What I do to leave a good first impression with prospective clients: Listen. Listen. Listen. To get to know someone and really understand their situation and goals I ask lots of questions so I can truly understand their world. Best tip for gaining new clients: I ask people about their cash flow management strategies: I soft sell them some quality ideas that work. We start slowly to build a relationship. I never ever sell anything on the first meeting.

What I offer to the local marketplace and to our clients: Integrity. It’s a tight-knit community and I provide assistance to those who need it. Favourite hobbies: Heli-skiing – but I am not an adrenalin junky! I also enjoy flying my bush plane and I help out seasonally on the family farm. One item I can’t be in a client meeting without: My two-screen computer and a pad of paper. I take plenty of notes in my meetings.

Earl Siegle Firm: Siegle Financial Group Ltd, Manulife Securities Investment Services Inc. Years in Business: 28 Team Members: 1, plus 2 full-time assistants

RENAISSANCE INVESTMENTS 13


Axiom Portfolios Axiom Portfolios provide the benefits and peace of mind of sophisticated portfolio management, while simplifying the administration, management and reporting of a portfolio.

With eight portfolios to choose from, investing in Axiom Portfolios provides: • Access to the accumulated knowledge and expertise of independent investment managers from across Canada and around the world • Risk management, through rigorous due diligence and built-in rebalancing • Multiple levels of diversification • T-Class options available on all Axiom Portfolios, offering tax-efficient cash flow

Axiom Portfolios offer even more value at higher balances through the following three classes: Class A

$25,000 minimum investment ($10,000 minimum investment for TFSA only)

Select Class

$250,000 minimum investment

Elite Class

$500,000 minimum investment

14 RENAISSANCE INVESTMENTS

Axiom Portfolio Managers – Axiom Portfolios have access to the accumulated knowledge and expertise of independent investment managers from across Canada and around the world.


Multiple Levels of Diversification Axiom Portfolios have been designed to manage risk and solidify the potential for returns by ensuring portfolios are broadly diversified across multiple levels. Each portfolio is diversified across asset classes, investment styles, geographic regions and market capitalizations. There are eight portfolios available designed to meet the needs of various types of investors.

RENAISSANCE INVESTMENTS 15


AXIOM PORTFOLIOS

Axiom Balanced Income Portfolio (Class A) Benchmark A Blended Benchmark

Fund Category Canadian Fixed Income Balanced

Morningstar Rating QQ

Investment Objective

Performance as of 06-30-2012

The Portfolio will seek to create a diversified portfolio of investments across several asset classes. Investing primarily in mutual funds, the goal is to achieve a mix of high current income and some long-term capital growth by investing primarily in a diversified blend of income and bond mutual funds, along with equity mutual funds.

Growth of $25,000 38 Fund

33 30 28 25 23

Volatility Analysis

Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

17.5% 02-28-2009 to 02-28-2010

-12.4% 02-28-2008 to 02-28-2009

Portfolio Details Class

Load Structure

Currency

Fund Code

A A A F Elite Elite Elite Sel Sel Sel

Back End Charge Front End Charge Low Load Charge No Sales or Redem Back End Charge Front End Charge Low Load Charge Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD

ATL976 ATL975 ATL977 ATL981 ATL952 ATL950 ATL951 ATL928 ATL926 ATL927

Inception Date Rebalancing Frequency Rebalancing Threshold MER Distribution Frequency Minimum Investment Telephone Web Site

35

March 15, 2005 Dynamically +/- 2.5% 2.07% Annually $25,000

888 888 FUND www.renaissanceinvestments.ca/axiom

Performance Quartile (within category over calendar year)

3

2

3

3

1

4

4

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

11.1

47.5

85.1

84.3

116.5

154.4

171.8

168.0

Fund Category Benchmark A

— 0.3 -0.8

— 9.0 11.4

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

0.6 0.6 0.9

-1.3 -0.1 -0.2

1.3 1.9 2.4

0.6 3.0 4.2

4.3 5.2 7.2

5.0 6.1 7.3

2.0 3.1 4.0

3.0 — —

Total Assets ($mil) Calendar Year Returns %

Fund Category Benchmark A

— 6.9 8.8

— 6.9 10.4

5.8 6.1 9.8

1.4 0.3 3.3

-9.8 -9.0 -8.6

11.5 14.0 12.8

7.8 6.7 9.2

0.0 3.0 3.6

1.3 1.9 2.4

Portfolio Analysis as of 06-30-2012 Target Composition

% Assets

Canadian Equity 8.8 U.S. Equity 10.0 International Equity 6.0 Emerging Markets 3.0 Equity Canadian Monthly 12.2 Income Canadian Fixed 60.0 Income Top 5 Global Equity Sectors

Financials Energy Materials Consumer Discretionary Industrial

% Equity

22.7 15.0 11.0 10.2 9.4

Market Cap

Large Medium Small

%

75.6 19.4 5.1

Credit Quality

High Medium Low NR/NA

Top Holdings

%

75.9 18.5 1.3 4.3 % Assets

Frontiers Canadian Fixed Income Frontiers Canadian Monthly Income Frontiers U.S. Equity Frontiers Canadian Equity Frontiers International Equity

60.1 12.2 10.1 8.7 6.1

Frontiers Emerging Markets Equity

3.0

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

8 1,417 1,080 317

Investment Style

©2012. Morningstar Research Inc. 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. Axiom Portfolios are offered by CIBC Asset Management Inc.™Axiom and Axiom Portfolios are registered trademarks of CIBC Asset Management Inc.


AXIOM PORTFOLIOS

Axiom Balanced Income Portfolio (Class A) Investment Management Overview Investment Management Brief

Investment Management Approach

CIBC Asset Management Inc. is one of Canada's leading mutual fund providers and the country's largest purchaser of third-party investment management expertise. CIBC Asset Management Inc. is a whollyowned subsidiary of CIBC, one of North America's leading financial institutions. Manager Bios Management Team | 03-15-2005 McLean Budden Ltd.

Manager Bios

Management Team | 06-01-2008 Management Teamand | 03-15-2005 Aletheia Research Management, Inc. McLean Budden Ltd. Management Team | 03-15-2005 Management TeamManagement | 06-01-2008 Inc Acuity Investment Aletheia Research and Management, Inc. Management Team | 03-15-2005 Management Team Addenda Capital Inc.| 03-15-2005 Acuity Investment Management Inc Management Team | 07-01-2009 Management West Team Capital | 03-15-2005 Management LLC Metropolitan Addenda Capital Inc. Management Team | 03-15-2005 Management | 07-01-2009 Walter Scott &Team Partners Limited Metropolitan West Capital Management LLC Management Team | 07-01-2009 Management Team | 03-15-2005 Fiduciary Management, Inc. of Milwaukee Walter Scott & Partners Limited Management Team | 03-15-2005 Management TeamManagement | 07-01-2009 Inc CIBC Global Asset Fiduciary Management, Inc. of Milwaukee Management Team | 03-15-2005 Management Team | 03-15-2005 Manulife Asset Management Limited CIBC Global Asset Management Inc Management Team | 03-15-2005 Management Team |Management 03-15-2005 LLC INTECH Investment Manulife Asset Management Limited Management Team | 02-01-2006 Management TeamCounsel | 03-15-2005 Canso Investment Ltd. INTECH Investment Management LLC Management Team | 06-01-2006 Management Team |Management 02-01-2006 Pictet International Canso Investment Counsel Ltd. Management Team | 05-01-2011 Management | 06-01-2006 del Rey GlobalTeam Investors, LLC

Investment Management Approach About the Portfolio A balanced approach for comfort throughout market cycles. This portfolio is designed for the conservative investor looking for a balance of income and long-term capital growth, with a focus on income. Use this portfolio as a single balanced income investment solution and benefit from its sophisticated portfolio management built upon proven investment principles. Key Points on the Process Axiom Balanced Income Portfolio follows the discipline of strategic asset allocation to ensure the right combination of investments is working for investors. Independent Investment Management Axiom provides investors with the confidence of knowing that independent investment managers from around the world are working for them. Each portfolio manager of the underlying investments is selected based on their ability to meet the high standards expected of their organization, investment process, investment philosophy, and performance.

Pictet International Management Management Team | 05-01-2011 del Rey Global Investors, LLC

Diversification This Axiom portfolio has been designed to minimize risks and solidify returns. We do this by ensuring the portfolio is broadly diversified at multiple levels, avoiding too

heavy a reliance on any one individual security, fund, sector, geographical region, or management style. Built-in Rebalancing This Axiom portfolio is rebalanced on an ongoing basis to prevent over exposure to any one asset class. When the asset allocation weightings shift more than 2.50% from the strategic asset allocation, the portfolio is automatically rebalanced. Monitoring Axiom relies on a team of investment professionals, CIBC’s Consulting Group, who select and monitor portfolio managers of underlying investments. A Summary of the Portfolio Axiom Balanced Income Portfolio is ideal for a conservative investor looking for a balance of income and long-term capital growth, with a focus on income. Diversified with an approximate balance of 60% income assets for stability and 40% equity assets for growth, the portfolio is positioned to deliver lower volatility and potential for growth. This combination can provide protection from volatile markets while delivering the potential for long-term growth.

Manager Commentary Your portfolio’s broad diversification helped to moderate the downside effects of this quarter’s equity market volatility. Global equities struggled as European sovereign debt concerns and weakened economic growth prospects resulted in a lower risk appetite, causing investors to shun equities in favour of bonds. Canadian fixed income markets benefited your portfolio as investors favoured the relative safety of fixed income securities while record low bond yields were reached in several markets around the world during the quarter. As at June 30, 2012

MER is annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details. Benchmark Blend: 62% DEX Bond Universe Index / 19% S&P/TSX Composite Index / 10% S&P 500 Index / 6% MSCI EAFE Index / 3% MSCI Emerging Markets Index T-Class units are also available $10,000 TFSA minimum for Classes A & F

RENAISSANCE INVESTMENTS 17


AXIOM PORTFOLIOS

Axiom Diversified Monthly Income Portfolio (Class A) Benchmark A Blended Benchmark

Fund Category Canadian Neutral Balanced

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

The Portfolio will seek to create a diversified portfolio of investments across several asset classes. Investing primarily in mutual funds, the goal is to achieve a mix of high current income and some long-term capital growth by investing primarily in a diversified blend of income and bond mutual funds, along with equity mutual funds.

Growth of $25,000 38 Fund

33 30 28 25 23

Volatility Analysis

Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

24.4% 02-28-2009 to 02-28-2010

-18.5% 02-28-2008 to 02-28-2009

Portfolio Details Class

Load Structure

Currency

Fund Code

A A A F Elite Elite Elite Sel Sel Sel

Back End Charge Front End Charge Low Load Charge No Sales or Redem Back End Charge Front End Charge Low Load Charge Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD

ATL985 ATL983 ATL984 ATL788 ATL955 ATL953 ATL954 ATL931 ATL929 ATL930

Inception Date Rebalancing Frequency Rebalancing Threshold MER Distribution Frequency Minimum Investment Telephone Web Site

35

March 15, 2005 Dynamically +/- 2.5% 2.21% Monthly $25,000

888 888 FUND www.renaissanceinvestments.ca/axiom

Performance Quartile (within category over calendar year)

4

1

3

2

1

3

4

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

33.1

101.0

146.2

147.8

187.5

273.5

295.0

289.2

Fund Category Benchmark A

— -5.8 -3.3

— 12.7 16.0

— 9.0 10.5

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

0.5 0.9 0.7

-2.3 -1.4 -1.7

0.5 1.7 0.8

-2.0 -0.6 0.0

4.2 5.4 6.3

6.1 6.0 7.3

1.6 1.4 3.3

3.4 — —

Total Assets ($mil) Calendar Year Returns %

Fund Category Benchmark A

— 12.9 14.6

5.0 9.4 11.0

3.8 2.3 6.0

-16.4 -15.9 -15.3

17.6 15.8 19.4

11.1 9.4 12.2

-1.9 -0.7 0.5

0.5 1.7 0.8

Portfolio Analysis as of 06-30-2012 Target Composition

% Assets

Canadian Equity U.S. Equity Canadian Monthly Income Canadian Fixed Income

Top 5 Global Equity Sectors

Financials Energy Materials Consumer Discretionary Industrial

18.4 5.0 36.6

Market Cap

Large Medium Small

%

75.3 19.8 4.9

Credit Quality

High Medium Low NR/NA

%

71.0 22.1 1.3 5.6

40.0 Top Holdings

% Equity

30.7 18.5 11.6 8.8 8.6

% Assets

Frontiers Canadian Fixed Income Frontiers Canadian Monthly Income Frontiers Canadian Equity Frontiers U.S. Equity

40.4 37.1 18.2 5.1

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

6 1,068 732 317

Investment Style

©2012. Morningstar Research Inc. 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. Axiom Portfolios are offered by CIBC Asset Management Inc.™Axiom and Axiom Portfolios are registered trademarks of CIBC Asset Management Inc.


AXIOM PORTFOLIOS

Axiom Diversified Monthly Income Portfolio (Class A) Investment Management Overview Investment Management Brief

Investment Management Approach

CIBC Asset Management Inc. is one of Canada's leading mutual fund providers and the country's largest purchaser of third-party investment management expertise. CIBC Asset Management Inc. is a whollyowned subsidiary of CIBC, one of North America's leading financial institutions.

Manager Bios Management Team | 03-15-2005 McLean Budden Ltd.

Investment Management Approach

Management Team | 06-01-2008 Aletheia Research and Management, Inc. Management Team | 03-15-2005 Acuity Investment Management Inc Management Team | 03-15-2005 Addenda Capital Inc. Management Team | 07-01-2009

About the Portfolio A steady source of tax-efficient income. This portfolio is designed for the income investor who needs to generate income today and grow their investments over the long term. Use this portfolio as a single income investment solution and benefit from its sophisticated portfolio management built upon proven investment principles.

Metropolitan West Capital Management LLC Management Team | 07-01-2009 Fiduciary Management, Inc. of Milwaukee Management Team | 03-15-2005 CIBC Global Asset Management Inc Management Team | 03-15-2005 Manulife Asset Management Limited Management Team | 03-15-2005 INTECH Investment Management LLC Management Team | 02-01-2006 Canso Investment Counsel Ltd.

Key Points on the Process Axiom Diversified Monthly Income Portfolio follows the discipline of strategic asset allocation to ensure the right combination of investments is working for investors. Independent Investment Management Axiom provides investors with the confidence of knowing that independent investment managers from around the world are working for them. Each portfolio manager of the underlying investments is selected based on their ability to meet the high standards expected of their organization, investment process, investment philosophy, and performance. Diversification This Axiom portfolio has been designed to minimize risks and solidify returns. We do this by ensuring the portfolio is broadly diversified at multiple levels, avoiding too

heavy a reliance on any one individual security, fund, sector, geographical region, or management style. Built-in Rebalancing This Axiom portfolio is rebalanced on an ongoing basis to prevent over exposure to any one asset class. When the asset allocation weightings shift more than 2.50% from the strategic asset allocation, the portfolio is automatically rebalanced. Monitoring Axiom relies on a team of investment professionals, CIBC’s Consulting Group, who select and monitor portfolio managers of underlying investments. A Summary of the Portfolio Axiom Diversified Monthly Income Portfolio is ideal for an investor seeking a reliable, tax-efficient source of income. The portfolio uses a diversified mix of income sources, including equities, fixed income and income trusts, providing an advantage over traditional dividend investments. The diversified income generation sources can provide protection from changing market conditions while delivering a reliable stream of income.

Manager Commentary Your portfolio’s broad diversification helped to moderate the downside effects of this quarter’s market volatility. Canadian and U.S. equities struggled as European sovereign debt concerns and weakened economic growth prospects resulted in a lower risk appetite, causing investors to shun equities in favour of bonds. Canadian fixed income markets benefited your portfolio as investors favoured the relative safety of fixed income securities while record low bond yields were reached in several markets around the world during the quarter.

As at June 30, 2012 MER is annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details. Benchmark Blend: 47% DEX Bond Universe Index / 48% S&P/TSX Composite Index / 5% S&P 500 Index T-Class units are also available $10,000 TFSA minimum for Classes A & F

RENAISSANCE INVESTMENTS 19


AXIOM PORTFOLIOS

Axiom Balanced Growth Portfolio (Class A) Benchmark A Blended Benchmark

Fund Category Canadian Equity Balanced

Morningstar Rating QQ

Investment Objective

Performance as of 06-30-2012

The Portfolio will seek to create a diversified portfolio of investments across several asset classes. Investing primarily in mutual funds, the goal is to achieve a balance of income and long-term capital growth by investing in a diversified mix of equity, income and bond mutual funds.

Growth of $25,000 35 Fund

30 28 25 23 20

Volatility Analysis

Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

25.6% 02-28-2009 to 02-28-2010

-22.7% 02-28-2008 to 02-28-2009

Portfolio Details Class

Load Structure

Currency

Fund Code

A A A F Elite Elite Elite Sel Sel Sel

Back End Charge Front End Charge Low Load Charge No Sales or Redem Back End Charge Front End Charge Low Load Charge Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD

ATL988 ATL986 ATL987 ATL789 ATL958 ATL956 ATL957 ATL934 ATL932 ATL933

Inception Date Rebalancing Frequency Rebalancing Threshold MER Distribution Frequency Minimum Investment Telephone Web Site

March 15, 2005 Dynamically +/- 2.5% 2.32% Annually $25,000

888 888 FUND www.renaissanceinvestments.ca/axiom

Investment Style

33

Performance Quartile (within category over calendar year)

3

3

2

4

3

4

3

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

56.7

221.0

408.3

359.3

462.7

520.7

467.7

428.6

Fund Category Benchmark A

— -4.3 -5.8

— 13.3 14.9

— 10.1 10.1

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

0.8 1.2 1.2

-3.8 -2.8 -2.1

0.3 1.3 1.8

-5.4 -2.3 -0.4

2.8 5.0 6.5

4.0 6.2 6.9

-0.8 0.5 2.1

2.2 — —

Total Assets ($mil) Calendar Year Returns %

Fund Category Benchmark A

— 12.3 13.3

10.1 10.4 13.7

1.4 0.3 3.8

-20.0 -22.3 -17.1

17.4 25.2 18.4

10.1 9.1 11.0

-6.1 -2.4 -0.9

0.3 1.3 1.8

Portfolio Analysis as of 06-30-2012 Target Composition

% Assets

Canadian Equity 32.0 U.S. Equity 12.0 International Equity 8.0 Emerging Markets 5.0 Equity Canadian Monthly 8.0 Income Canadian Fixed 30.0 Income Global Bond 5.0 Top 5 Global Equity Sectors

Financials Energy Materials Consumer Discretionary Industrial

Market Cap

Large Medium Small

%

77.0 17.5 5.5

Credit Quality

High Medium Low NR/NA

Top Holdings

%

69.9 22.3 1.3 6.4 % Assets

Frontiers Canadian Equity Frontiers Canadian Fixed Income Frontiers U.S. Equity Frontiers International Equity Frontiers Canadian Monthly Income

31.6 30.2 12.1 8.3 8.1

Frontiers Global Bond Frontiers Emerging Markets Equity

5.0 5.0

% Equity

23.9 16.1 14.4 9.7 9.4

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

9 1,459 1,080 359

©2012. Morningstar Research Inc. 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. Axiom Portfolios are offered by CIBC Asset Management Inc.™Axiom and Axiom Portfolios are registered trademarks of CIBC Asset Management Inc.


AXIOM PORTFOLIOS

Axiom Balanced Growth Portfolio (Class A) Investment Management Overview Investment Management Brief

Investment Management Approach

CIBC Asset Management Inc. is one of Canada's leading mutual fund providers and the country's largest purchaser of third-party investment management expertise. CIBC Asset Management Inc. is a whollyowned subsidiary of CIBC, one of North America's leading financial institutions.

Manager Bios Management Team | 03-15-2005 McLean Budden Ltd.

Investment Management Approach

Management Team | 06-01-2008 Aletheia Research and Management, Inc. Management Team | 03-15-2005 Acuity Investment Management Inc Management Team | 03-15-2005 Addenda Capital Inc. Management Team | 11-17-2006

About the Portfolio Growth balanced with income. This portfolio is designed for the investor looking for a balance of income and longterm capital growth, with a focus on stability. Use this portfolio as a single balanced growth investment solution and benefit from its sophisticated portfolio management built upon proven investment principles.

Brandywine Global Investment Mgmt, LLC. Management Team | 07-01-2009 Metropolitan West Capital Management LLC Management Team | 03-15-2005 Walter Scott & Partners Limited Management Team | 07-01-2009 Fiduciary Management, Inc. of Milwaukee Management Team | 03-15-2005 CIBC Global Asset Management Inc Management Team | 03-15-2005 Manulife Asset Management Limited Management Team | 03-15-2005 INTECH Investment Management LLC Management Team | 02-01-2006 Canso Investment Counsel Ltd. Management Team | 06-01-2006 Pictet International Management

Key Points on the Process Axiom Balanced Growth Portfolio follows the discipline of strategic asset allocation to ensure the right combination of investments is working for investors. Independent Investment Management Axiom provides investors with the confidence of knowing that independent investment managers from around the world are working for them. Each portfolio manager of the underlying investments is selected based on their ability to meet the high standards expected of their organization, investment process, investment philosophy, and performance. Diversification This Axiom portfolio has been designed to minimize risks and solidify returns. We do this by ensuring the portfolio is broadly diversified at multiple levels, avoiding too

heavy a reliance on any one individual security, fund, sector, geographical region, or management style. Built-in Rebalancing This Axiom portfolio is rebalanced on an ongoing basis to prevent over exposure to any one asset class. When the asset allocation weightings shift more than 2.50% from the strategic asset allocation, the portfolio is automatically rebalanced. Monitoring Axiom relies on a team of investment professionals, CIBC’s Consulting Group, who select and monitor portfolio managers of underlying investments. A Summary of the Portfolio Axiom Balanced Growth Portfolio is ideal for a conservative investor seeking a balance of income and long-term capital growth. An approximate 55% weighting in equities provides for long-term capital appreciation, balanced by a 45% fixed income component. The balanced combination of equities and income sources can provide protection from volatile markets while delivering the potential for long-term growth.

Management Team | 05-01-2011 del Rey Global Investors, LLC

Manager Commentary Your portfolio’s broad diversification helped to moderate the significant downside effects of this quarter’s market volatility. Global equities struggled as European sovereign debt concerns and weakened economic growth prospects resulted in a lower risk appetite, causing investors to shun equities in favour of bonds. Global fixed income markets benefited your portfolio as investors favoured the relative safety of fixed income securities while record low bond yields were reached in several markets around the world during the quarter. As at June 30, 2012

MER is annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details. Benchmark Blend: 32% DEX Bond Universe Index / 38% S&P/TSX Composite Index / 12% S&P 500 Index / 8% MSCI EAFE Index / 5% MSCI Emerging Markets Index / 5% Citigroup World Government Index T-Class units are also available $10,000 TFSA minimum for Classes A & F

RENAISSANCE INVESTMENTS 21


AXIOM PORTFOLIOS

Axiom Long-Term Growth Portfolio (Class A) Benchmark A Blended Benchmark

Fund Category Canadian Equity Balanced

Morningstar Rating Q

Investment Objective

Performance as of 06-30-2012

The Portfolio will seek to create a diversified portfolio of investments across several asset classes. Investing primarily in mutual funds, the goal is to achieve longterm capital growth by investing primarily in equity mutual funds for higher growth potential, with some exposure to fixed income securities for diversification.

Growth of $25,000 35 Fund

30 28 25 23 20

Volatility Analysis

Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

30.9% 02-28-2009 to 02-28-2010

-28.1% 02-28-2008 to 02-28-2009

Portfolio Details Class

Load Structure

Currency

Fund Code

A A A F Elite Elite Elite Sel Sel Sel

Back End Charge Front End Charge Low Load Charge No Sales or Redem Back End Charge Front End Charge Low Load Charge Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD

ATL994 ATL992 ATL993 ATL791 ATL961 ATL959 ATL960 ATL937 ATL935 ATL936

Inception Date Rebalancing Frequency Rebalancing Threshold MER Distribution Frequency Minimum Investment Telephone Web Site

33

March 15, 2005 Dynamically +/- 2.5% 2.61% Annually $25,000

888 888 FUND www.renaissanceinvestments.ca/axiom

Investment Style

Performance Quartile (within category over calendar year)

2

2

4

3

2

4

3

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

29.4

123.6

218.3

192.7

235.2

256.7

209.2

183.4

Fund Category Benchmark A

— -4.3 -8.3

— 13.3 18.1

— 10.1 11.4

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

0.9 1.2 1.3

-5.0 -2.8 -3.3

-0.3 1.3 1.2

-8.6 -2.3 -3.6

2.0 5.0 5.9

3.7 6.2 6.7

-2.1 0.5 1.0

2.0 — —

Total Assets ($mil) Calendar Year Returns %

Fund Category Benchmark A

— 12.3 16.3

11.5 10.4 15.9

2.3 0.3 5.3

-25.5 -22.3 -22.8

21.8 25.2 23.4

11.6 9.1 12.5

-9.2 -2.4 -3.8

-0.3 1.3 1.2

Portfolio Analysis as of 06-30-2012 Target Composition

% Assets

Canadian Equity U.S. Equity International Equity Emerging Markets Equity Canadian Monthly Income Canadian Fixed Income Global Bond Top 5 Global Equity Sectors

Financials Energy Materials Consumer Discretionary Industrial

40.0 10.0 8.0 7.0 15.0 15.0 5.0

Market Cap

Large Medium Small

%

77.4 17.4 5.2

Credit Quality

High Medium Low NR/NA

Top Holdings

%

62.4 27.0 1.3 9.2 % Assets

Frontiers Canadian Equity Frontiers Canadian Monthly Income Frontiers Canadian Fixed Income Frontiers U.S. Equity Frontiers International Equity

40.1 15.1 14.8 10.1 8.2

Frontiers Emerging Markets Equity Frontiers Global Bond

7.1 5.0

% Equity

25.7 16.9 14.5 9.4 9.0

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

9 1,459 1,080 359

Notes T-Class units are also available $10,000 TFSA minimum for Classes A & F ©2012. Morningstar Research Inc. 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. Axiom Portfolios are offered by CIBC Asset Management Inc.™Axiom and Axiom Portfolios are registered trademarks of CIBC Asset Management Inc.


AXIOM PORTFOLIOS

Axiom Long-Term Growth Portfolio (Class A) Investment Management Overview Investment Management Brief

Investment Management Approach

CIBC Asset Management Inc. is one of Canada's leading mutual fund providers and the country's largest purchaser of third-party investment management expertise. CIBC Asset Management Inc. is a whollyowned subsidiary of CIBC, one of North America's leading financial institutions.

Manager Bios Management Team | 03-15-2005 McLean Budden Ltd. Management Team | 06-01-2008

Investment Management Approach

Aletheia Research and Management, Inc. Management Team | 03-15-2005 Acuity Investment Management Inc Management Team | 03-15-2005 Addenda Capital Inc. Management Team | 11-01-2006 Brandywine Global Investment Mgmt, LLC. Management Team | 07-01-2009 Metropolitan West Capital Management LLC

About the Portfolio Diversified growth with a degree of stability for longterm gains. This Portfolio is designed for investors who can tolerate low-to-moderate investment risk and who are seeking the potential for long-term capital appreciation. Use this portfolio as a single growthoriented investment solution and benefit from its sophisticated portfolio management built upon proven investment principles.

heavy a reliance on any one individual security, fund, sector, geographical region, or management style. Built-in Rebalancing This Axiom portfolio is rebalanced on an ongoing basis to prevent over exposure to any one asset class. When the asset allocation weightings shift more than 2.50% from the strategic asset allocation, the portfolio is automatically rebalanced.

Management Team | 03-15-2005 Walter Scott & Partners Limited Management Team | 07-01-2009 Fiduciary Management, Inc. of Milwaukee

Key Points on the Process Axiom Long-Term Growth Portfolio follows the discipline of strategic asset allocation to ensure the right combination of investments is working for investors.

Management Team | 03-15-2005 CIBC Global Asset Management Inc Management Team | 03-15-2005 Manulife Asset Management Limited Management Team | 03-15-2005 INTECH Investment Management LLC Management Team | 02-01-2006 Canso Investment Counsel Ltd. Management Team | 03-15-2005 Pictet International Management Management Team | 05-01-2011 del Rey Global Investors, LLC

Independent Investment Management Axiom provides investors with the confidence of knowing that independent investment managers from around the world are working for them. Each portfolio manager of the underlying investments is selected based on their ability to meet the high standards expected of their organization, investment process, investment philosophy, and performance. Diversification This Axiom portfolio has been designed to minimize risks and solidify returns. We do this by ensuring the portfolio is broadly diversified at multiple levels, avoiding too

Monitoring Axiom relies on a team of investment professionals, CIBC’s Consulting Group, who select and monitor portfolio managers of underlying investments. A Summary of the Portfolio Axiom Long-Term Growth Portfolio is ideal for a higherrisk investor seeking long-term capital gains. The portfolio is strategically positioned to be effective over the long-term and provides long-term growth potential with stability, using an approximate 80% weighting in equities and a 20% weighting in income sources. The combination favouring equities yet including a measure of income provides the potential for long-term growth while offering a degree of protection from volatile markets.

Manager Commentary Your portfolio’s broad diversification helped to moderate the significant downside effects of this quarter’s market volatility. Global equities struggled as European sovereign debt concerns and weakened economic growth prospects resulted in a lower risk appetite, causing investors to shun equities in favour of bonds. Global fixed income markets benefited your portfolio as investors favoured the relative safety of fixed income securities while record low bond yields were reached in several markets around the world during the quarter. As at June 30, 2012

MER is annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details. Benchmark Blend: 18% DEX Bond Universe Index / 52% S&P/TSX Composite Index / 10% S&P 500 Index / 8% MSCI EAFE Index / 7% MSCI Emerging Markets Index / 5% Citigroup World Government Index

RENAISSANCE INVESTMENTS 23


AXIOM PORTFOLIOS

Axiom Canadian Growth Portfolio (Class A) Benchmark A Blended Benchmark

Fund Category Canadian Equity Balanced

Morningstar Rating QQ

Investment Objective

Performance as of 06-30-2012

The Portfolio will seek to create a focused portfolio of investments across its Canadian asset classes. Investing primarily in mutual funds, the goal is to pursue long-term capital growth by investing primarily in Canadian equity mutual funds for higher growth potential, with some exposure to Canadian fixed income securities for diversification.

Growth of $25,000 35

Volatility Analysis

Low

Fund

33 30 28 25 23 20

Performance Quartile (within category over calendar year) Medium

Worst 1 Year Return

32.6% 02-28-2009 to 02-28-2010

-28.2% 02-28-2008 to 02-28-2009

Portfolio Details Class

Load Structure

Currency

Fund Code

A A A F Elite Elite Elite Sel Sel Sel

Back End Charge Front End Charge Low Load Charge No Sales or Redem Back End Charge Front End Charge Low Load Charge Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD

ATL991 ATL989 ATL990 ATL790 ATL964 ATL962 ATL963 ATL940 ATL938 ATL939

Inception Date Rebalancing Frequency Rebalancing Threshold MER Distribution Frequency Minimum Investment Telephone Web Site

March 15, 2005 Dynamically +/- 2.5% 2.58% Annually $25,000

4

2

1

4

4

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

9.9

23.7

39.1

42.8

59.7

69.2

56.6

49.4

Fund Category Benchmark A

— -4.3 -7.3

— 13.3 21.5

— 10.1 12.7

— 12.3 19.6

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

0.3 1.2 0.8

-5.2 -2.8 -3.7

-1.3 1.3 -0.6

-9.8 -2.3 -5.4

1.5 5.0 5.1

4.2 6.2 7.0

-1.4 0.5 1.5

2.6 — —

Total Assets ($mil)

Best 1 Year Return

1

2002

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

3

Calendar Year Returns %

Fund Category Benchmark A

9.4 10.4 13.9

5.6 0.3 8.4

-26.2 -22.3 -24.3

25.3 25.2 27.3

13.7 9.1 15.0

-9.6 -2.4 -4.2

-1.3 1.3 -0.6

Portfolio Analysis as of 06-30-2012 Target Composition

% Assets

Canadian Equity Canadian Monthly Income Canadian Fixed Income

56.0 24.0

Market Cap

Large Medium Small

20.0

%

77.7 16.7 5.5

Credit Quality

High Medium Low NR/NA

Top Holdings

Top 5 Global Equity Sectors

Financials Energy Materials Industrial Consumer Discretionary

% Equity

31.1 19.7 16.9 8.7 8.2

%

67.9 22.9 1.2 8.0 % Assets

Frontiers Canadian Equity Frontiers Canadian Monthly Income Frontiers Canadian Fixed Income

56.1 24.2 19.9

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

5 617 283 317

888 888 FUND www.renaissanceinvestments.ca/axiom

Investment Style

©2012. Morningstar Research Inc. 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. Axiom Portfolios are offered by CIBC Asset Management Inc.™Axiom and Axiom Portfolios are registered trademarks of CIBC Asset Management Inc.


AXIOM PORTFOLIOS

Axiom Canadian Growth Portfolio (Class A) Investment Management Overview Investment Management Brief

Investment Management Approach

CIBC Asset Management Inc. is one of Canada's leading mutual fund providers and the country's largest purchaser of third-party investment management expertise. CIBC Asset Management Inc. is a whollyowned subsidiary of CIBC, one of North America's leading financial institutions.

Manager Bios Management Team | 03-15-2005 McLean Budden Ltd. Management Team | 03-15-2005

Investment Management Approach

Acuity Investment Management Inc Management Team | 03-15-2005 Addenda Capital Inc. Management Team | 03-15-2005 CIBC Global Asset Management Inc Management Team | 03-15-2005 Manulife Asset Management Limited Management Team | 02-01-2006

About the Portfolio Canadian-focused, yet well diversified for growth. This portfolio is suitable for investors who can tolerate lowto-moderate investment risk and who are seeking longterm capital appreciation. Use this portfolio as a single Canadian-focused, growth-oriented investment solution and benefit from its sophisticated portfolio management built upon proven investment principles.

Canso Investment Counsel Ltd.

Key Points on the Process Axiom Canadian Growth Portfolio follows the discipline of strategic asset allocation to ensure the right combination of investments is working for investors. Independent Investment Management Axiom provides investors with the confidence of knowing that independent investment managers from around the world are working for them. Each portfolio manager of the underlying investments is selected based on their ability to meet the high standards expected of their organization, investment process, investment philosophy, and performance. Diversification This Axiom portfolio has been designed to minimize risks and solidify returns. We do this by ensuring the portfolio is broadly diversified at multiple levels, avoiding a heavy

reliance on any one individual security, fund, sector, geographical region, or management style. Built-in Rebalancing This Axiom portfolio is rebalanced on an ongoing basis to prevent over exposure to any one asset class. When the asset allocation weightings shift more than 2.50% from the strategic asset allocation, the portfolio is automatically rebalanced. Monitoring Axiom relies on a team of investment professionals, CIBC’s Consulting Group, who select and monitor portfolio managers of underlying investments. A Summary of the Portfolio Axiom Canadian Growth Portfolio is ideal for the investor seeking a diversified Canadian portfolio, with long-term capital growth. The portfolio is a fully diversified Canadian solution and is ideal as a core component for long-term growth potential. The combination favouring Canadian equities, at approximately 77%, and including a measure of income, at approximately 23%, provides the potential for long-term growth while offering a degree of protection from volatile markets.

Manager Commentary Your portfolio’s broad diversification helped to moderate the significant downside effects of this quarter’s equity market volatility. Canadian equities struggled as European sovereign debt concerns and weakened economic growth prospects resulted in a lower risk appetite, causing investors to shun equities in favour of bonds. Canadian fixed income markets benefited your portfolio as investors favoured the relative safety of fixed income securities while record low bond yields were reached in several markets around the world during the quarter.

As at June 30, 2012 MER is annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details. Benchmark Blend: 25% DEX Bond Universe Index / 75% S&P/TSX Composite Index T-Class units are also available $10,000 TFSA minimum for Classes A & F

RENAISSANCE INVESTMENTS 25


AXIOM PORTFOLIOS

Axiom Global Growth Portfolio (Class A) Benchmark A Blended Benchmark

Fund Category Global Equity Balanced

Morningstar Rating QQ

Investment Objective

Performance as of 06-30-2012

The portfolio will seek to create a diversified portfolio of investments across several asset classes, and will emphasize global investment exposure. Investing primarily in mutual funds, the goal is to provide exposure to countries in North America, Europe, the Far East and Asia, and emerging market countries for higher growth potential, with some exposure to global fixed income securities for diversification.

Growth of $25,000 33

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

26.3% 02-28-2009 to 02-28-2010

-27.2% 11-30-2007 to 11-30-2008

Portfolio Details Class

Load Structure

Currency

Fund Code

A A A F Elite Elite Elite Sel Sel Sel

Back End Charge Front End Charge Low Load Charge No Sales or Redem Back End Charge Front End Charge Low Load Charge Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD

ATL997 ATL995 ATL996 ATL792 ATL967 ATL965 ATL966 ATL943 ATL941 ATL942

Inception Date Rebalancing Frequency Rebalancing Threshold MER Distribution Frequency Minimum Investment Telephone Web Site

30 28 25 23 20 18

Performance Quartile (within category over calendar year)

Volatility Analysis

Low

Fund

March 15, 2005 Dynamically +/- 2.5% 2.79% No Set Frequency $25,000

888 888 FUND www.renaissanceinvestments.ca/axiom

Total Assets ($mil)

3

4

3

4

3

4

4

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

8.3

62.5

128.8

90.9

95.3

87.2

68.0

61.9

— -12.3 -10.8

— 12.3 12.2

Calendar Year Returns %

Fund Category Benchmark A Trailing Returns %

Fund Category Benchmark A

— 7.2 8.8

— 8.4 10.2

12.5 12.9 17.4

-3.9 -2.8 -0.8

-23.6 -23.4 -19.7

14.2 17.6 15.3

8.6 8.6 8.7

-7.4 -5.6 -2.0

1.4 2.4 4.0

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

1.8 1.6 2.1

-4.3 -3.4 -2.5

1.4 2.4 4.0

-5.5 -4.1 0.3

3.2 4.6 7.7

3.4 5.0 6.7

-3.1 -1.9 0.1

0.0 — —

Portfolio Analysis as of 06-30-2012 Target Composition

% Assets

Canadian Equity U.S. Equity International Equity Emerging Markets Equity Canadian Monthly Income Canadian Fixed Income Global Bond Top 5 Global Equity Sectors

Financials Energy Information Technology Materials Consumer Discretionary

16.0 29.0 21.0 10.0 4.0 10.0 10.0

Market Cap

Large Medium Small

%

76.0 18.8 5.2

Credit Quality

High Medium Low NR/NA

Top Holdings

%

56.5 31.3 1.5 10.7 % Assets

Frontiers U.S. Equity Frontiers International Equity Frontiers Canadian Equity Frontiers Emerging Markets Equity Frontiers Global Bond

29.4 21.5 15.8 10.0 10.0

Frontiers Canadian Fixed Income Frontiers Canadian Monthly Income

9.9 4.0

% Equity

17.6 12.9 12.0 11.1 11.0

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

9 1,459 1,080 359

Investment Style

©2012. Morningstar Research Inc. 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. Axiom Portfolios are offered by CIBC Asset Management Inc.™Axiom and Axiom Portfolios are registered trademarks of CIBC Asset Management Inc.


AXIOM PORTFOLIOS

Axiom Global Growth Portfolio (Class A) Investment Management Overview Investment Management Brief

Investment Management Approach

CIBC Asset Management Inc. is one of Canada's leading mutual fund providers and the country's largest purchaser of third-party investment management expertise. CIBC Asset Management Inc. is a whollyowned subsidiary of CIBC, one of North America's leading financial institutions.

Manager Bios Management Team | 03-15-2005 McLean Budden Ltd.

Investment Management Approach

Management Team | 06-01-2008 Aletheia Research and Management, Inc. Management Team | 03-15-2005 Acuity Investment Management Inc Management Team | 03-15-2005 Addenda Capital Inc. Management Team | 11-17-2006

About the Portfolio Global diversification, positioned for growth. This portfolio is designed for the investor seeking long-term growth and global diversification. Use this portfolio as a single globally diversified, growth-oriented investment solution and benefit from its sophisticated portfolio management built upon proven investment principles.

Built-in Rebalancing This Axiom portfolio is rebalanced on an ongoing basis to prevent over exposure to any one asset class. When the asset allocation weightings shift more than 2.50% from the strategic asset allocation, the portfolio is automatically rebalanced.

Brandywine Global Investment Mgmt, LLC. Management Team | 07-01-2009 Metropolitan West Capital Management LLC Management Team | 03-15-2005 Walter Scott & Partners Limited Management Team | 07-01-2009 Fiduciary Management, Inc. of Milwaukee Management Team | 03-15-2005 CIBC Global Asset Management Inc Management Team | 03-15-2005 Manulife Asset Management Limited Management Team | 03-15-2005 INTECH Investment Management LLC Management Team | 02-01-2006 Canso Investment Counsel Ltd. Management Team | 06-01-2006 Pictet International Management Management Team | 05-01-2011 del Rey Global Investors, LLC

Key Points on the Process Axiom Global Growth Portfolio follows the discipline of strategic asset allocation to ensure the right combination of investments is working for investors. Independent Investment Management Axiom provides investors with the confidence of knowing that independent investment managers from around the world are working for them. Each portfolio manager of the underlying investments is selected based on their ability to meet the high standards expected of their organization, investment process, investment philosophy, and performance. Diversification This Axiom portfolio has been designed to minimize risks and solidify returns. We do this by ensuring the portfolio is broadly diversified at multiple levels, avoiding too heavy a reliance on any one individual security, fund, sector, geographical region, or management style.

Monitoring Axiom relies on a team of investment professionals, CIBC’s Consulting Group, who select and monitor portfolio managers of underlying investments. A Summary of the Portfolio Axiom Global Growth Portfolio is ideal for the investor seeking a globally diversified portfolio, with long-term capital growth. The portfolio is a globally diversified solution, investing in global, international and emerging market opportunities, making it ideal as a core component for long-term growth potential. The combination favouring equities, at approximately 80%, yet including a measure of income, at approximately 20%, has the ability to invest in different economic environments in a single global solution and provides the potential for long-term growth while offering a degree of protection from volatile markets.

Manager Commentary Your portfolio’s broad diversification helped to moderate the significant downside effects of this quarter’s market volatility. Global equities struggled as European sovereign debt concerns and weakened economic growth prospects resulted in a lower risk appetite, causing investors to shun equities in favour of bonds. Global fixed income markets benefited your portfolio as investors favoured the relative safety of fixed income securities while record low bond yields were reached in several markets around the world during the quarter. As at June 30, 2012

MER is annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details. Benchmark Blend: 11% DEX Bond Universe Index / 19% S&P/TSX Composite Index / 29% S&P 500 Index / 21% MSCI EAFE Index / 10% MSCI Emerging Markets Index / 10% Citigroup World Government Index T-Class units are also available $10,000 TFSA minimum for Classes A & F

RENAISSANCE INVESTMENTS 27


AXIOM PORTFOLIOS

Axiom Foreign Growth Portfolio (Class A) Benchmark A Blended Benchmark

Fund Category Global Equity Balanced

Morningstar Rating Q

Investment Objective

Performance as of 06-30-2012

The Portfolio will seek to create a diversified portfolio of investments across several asset classes. It will emphasize foreign investment exposure (which excludes Canada). Investing primarily in mutual funds, the goal is to achieve long-term capital growth by investing primarily in U.S. and international equity mutual funds that provide exposure to a number of industrialized countries outside of Canada. The overall fund objective can be considered aggressive.

Growth of $25,000 33

Volatility Analysis

Fund

30 28 25 23 20 18

Performance Quartile (within category over calendar year)

Total Assets ($mil) Low

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Worst 1 Year Return

24.5% 02-28-2009 to 02-28-2010

-29.1% 11-30-2007 to 11-30-2008

Portfolio Details Load Structure

Currency

Fund Code

A A A F Elite Elite Elite Sel Sel Sel

Back End Charge Front End Charge Low Load Charge No Sales or Redem Back End Charge Front End Charge Low Load Charge Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD

ATL778 ATL998 ATL999 ATL794 ATL970 ATL968 ATL969 ATL946 ATL944 ATL945

Telephone Web Site

3

4

4

3

3

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

2.1

13.7

21.0

12.6

11.9

9.3

6.0

5.2

Fund Category Benchmark A

— -12.3 -13.9

— 12.3 8.6

Fund Category Benchmark A

— 7.2 7.1

— 8.4 6.2

13.8 12.9 19.2

-8.4 -2.8 -5.4

-23.9 -23.4 -19.2

9.8 17.6 10.1

6.9 8.6 6.2

-6.4 -5.6 -1.6

2.7 2.4 5.9

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

2.6 1.6 2.8

-4.1 -3.4 -2.2

2.7 2.4 5.9

-3.5 -4.1 2.1

4.3 4.6 8.8

3.3 5.0 6.4

-4.3 -1.9 -1.2

-1.2 — —

Portfolio Analysis as of 06-30-2012

Class

Inception Date Rebalancing Frequency Rebalancing Threshold MER Distribution Frequency Minimum Investment

4

Calendar Year Returns %

Trailing Returns % Best 1 Year Return

2

March 15, 2005 Dynamically +/- 2.5% 2.74% No Set Frequency $25,000

Target Composition

% Assets

U.S. Equity International Equity Emerging Markets Equity Global Bond

43.0 33.0 10.0

Market Cap

Large Medium Small

%

75.1 19.7 5.2

Credit Quality

High Medium Low NR/NA

14.0 Top Holdings

Top 5 Global Equity Sectors

Information Technology Financials Consumer Discretionary Consumer Staples Industrial

%

38.2 42.4 1.6 17.8

% Equity

14.8 13.0 12.0 11.1 10.8

% Assets

Frontiers U.S. Equity Frontiers International Equity Frontiers Global Bond Frontiers Emerging Markets Equity

43.0 33.3 14.0 9.9

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

6 864 817 42

888 888 FUND www.renaissanceinvestments.ca/axiom

Investment Style

©2012. Morningstar Research Inc. 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. Axiom Portfolios are offered by CIBC Asset Management Inc.™Axiom and Axiom Portfolios are registered trademarks of CIBC Asset Management Inc.


AXIOM PORTFOLIOS

Axiom Foreign Growth Portfolio (Class A) Investment Management Overview Investment Management Brief

Investment Management Approach

CIBC Asset Management Inc. is one of Canada's leading mutual fund providers and the country's largest purchaser of third-party investment management expertise. CIBC Asset Management Inc. is a whollyowned subsidiary of CIBC, one of North America's leading financial institutions.

Manager Bios Management Team | 06-01-2008 Aletheia Research and Management, Inc. Management Team | 11-17-2006

Investment Management Approach

Brandywine Global Investment Mgmt, LLC. Management Team | 07-01-2009 Metropolitan West Capital Management LLC Management Team | 03-15-2005 Walter Scott & Partners Limited Management Team | 07-01-2009 Fiduciary Management, Inc. of Milwaukee Management Team | 03-15-2005

About the Portfolio Foreign diversification, positioned for growth. This portfolio is designed for the aggressive investor seeking maximum long-term capital growth by investing in U.S. and international equities. Use this portfolio as a single internationally diversified, growth-oriented investment solution and benefit from its sophisticated portfolio management built upon proven investment principles.

INTECH Investment Management LLC Management Team | 06-01-2006 Pictet International Management Management Team | 05-01-2011 del Rey Global Investors, LLC

Key Points on the Process Foreign Growth Portfolio follows the discipline of strategic asset allocation to ensure the right combination of investments is working for investors. Independent Investment Management Axiom provides investors with the confidence of knowing that independent investment managers from around the world are working for them. Each portfolio manager of the underlying investments is selected based on their ability to meet the high standards expected of their organization, investment process, investment philosophy, and performance. Diversification This Axiom portfolio has been designed to minimize risks and solidify returns. We do this by ensuring the portfolio

is broadly diversified at multiple levels, avoiding too heavy a reliance on any one individual security, fund, sector, geographical region, or management style. Built-in Rebalancing This Axiom portfolio is rebalanced on an ongoing basis to prevent over exposure to any one asset class. When the asset allocation weightings shift more than 2.50% from the strategic asset allocation, the portfolio is automatically rebalanced. Monitoring Axiom relies on a team of investment professionals, CIBC’s Consulting Group, who select and monitor portfolio managers of underlying investments. A Summary of the Portfolio Axiom Foreign Growth Portfolio is ideal for investors seeking a diversified foreign portfolio, with strong growth potential and is a complement to a core Canadian strategy. The combination favouring foreign equities, at approximately 86%, yet including a measure of income, at approximately 14%, provides the potential for longterm growth while offering a degree of protection from volatile markets.

Manager Commentary Your portfolio’s broad diversification helped to moderate the significant downside effects of this quarter’s market volatility. Global equities struggled as European sovereign debt concerns and weakened economic growth prospects resulted in a lower risk appetite, causing investors to shun equities in favour of bonds. Global fixed income markets benefited your portfolio as investors favoured the relative safety of fixed income securities while record low bond yields were reached in several markets around the world during the quarter. As at June 30, 2012

MER is annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details. Benchmark Blend: 43% S&P 500 Index / 33% MSCI EAFE Index / 10% MSCI Emerging Markets Index / 14% Citigroup World Government Bond Index T-Class units are also available $10,000 TFSA minimum for Classes A & F

RENAISSANCE INVESTMENTS 29


AXIOM PORTFOLIOS

Axiom All Equity Portfolio (Class A) Benchmark A Blended Benchmark

Fund Category Global Equity

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

The Portfolio will seek to create a diversified portfolio focused on equity investments. Investing primarily in mutual funds, the goal is to achieve long-term capital growth by investing in a diversified mix of equity mutual funds for higher growth potential. The mutual funds may include some sector equity exposure, and the overall fund objective can be considered aggressive.

Growth of $25,000 45

Volatility Analysis

Low

Fund

40 35 30 25 20 15

Performance Quartile (within category over calendar year) Medium

High

Total Assets ($mil) Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

32.8% 02-28-2009 to 02-28-2010

-34.8% 11-30-2007 to 11-30-2008

Portfolio Details Class

Load Structure

Currency

Fund Code

A A A F Elite Elite Elite Sel Sel Sel

Back End Charge Front End Charge Low Load Charge No Sales or Redem Back End Charge Front End Charge Low Load Charge Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD

ATL784 ATL782 ATL783 ATL796 ATL979 ATL971 ATL978 ATL949 ATL947 ATL948

Inception Date Rebalancing Frequency Rebalancing Threshold MER Distribution Frequency Minimum Investment Telephone Web Site

March 15, 2005 Dynamically +/- 2.5% 2.74% No Set Frequency $25,000

3

2

3

2

2

4

4

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

4.0

25.9

43.4

30.1

34.5

31.0

23.1

20.5

— -17.4 -16.4

— 10.6 15.4

Calendar Year Returns %

Fund Category Benchmark A Trailing Returns %

Fund Category Benchmark A

— 6.4 9.9

— 5.8 13.7

16.2 18.0 21.4

-3.8 -6.6 -0.3

-31.5 -29.3 -29.0

18.6 14.3 21.5

9.5 6.5 9.9

-11.1 -7.5 -5.3

1.3 4.7 5.0

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

2.1 3.2 2.9

-6.0 -5.0 -3.9

1.3 4.7 5.0

-8.9 -4.7 -2.0

2.6 5.7 8.0

3.0 4.8 7.3

-5.3 -5.1 -1.7

-0.6 — —

Portfolio Analysis as of 06-30-2012 Target Composition

% Assets

Canadian Equity U.S. Equity International Equity Emerging Markets Equity Canadian Monthly Income Top 5 Global Equity Sectors

Financials Information Technology Energy Consumer Discretionary Materials

16.0 38.0 24.0 18.0 4.0

% Equity

17.5 12.8 12.7 11.1 10.8

Market Cap

Large Medium Small

%

75.9 19.0 5.1

Top Holdings

% Assets

Frontiers U.S. Equity Frontiers International Equity Frontiers Emerging Markets Equity Frontiers Canadian Equity Frontiers Canadian Monthly Income

38.1 24.3 18.1 16.0 4.0

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

7 1,251 1,079 161

888 888 FUND www.renaissanceinvestments.ca/axiom

Investment Style

©2012. Morningstar Research Inc. 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. Axiom Portfolios are offered by CIBC Asset Management Inc.™Axiom and Axiom Portfolios are registered trademarks of CIBC Asset Management Inc.


AXIOM PORTFOLIOS

Axiom All Equity Portfolio (Class A) Investment Management Overview Investment Management Brief

Investment Management Approach

CIBC Asset Management Inc. is one of Canada's leading mutual fund providers and the country's largest purchaser of third-party investment management expertise. CIBC Asset Management Inc. is a whollyowned subsidiary of CIBC, one of North America's leading financial institutions.

Manager Bios Management Team | 03-15-2005 McLean Budden Ltd.

Investment Management Approach

Management Team | 06-01-2008 Aletheia Research and Management, Inc. Management Team | 03-15-2005 Acuity Investment Management Inc Management Team | 07-01-2009 Metropolitan West Capital Management LLC Management Team | 03-15-2005 Walter Scott & Partners Limited

About the Portfolio Diversified equity, positioned for maximum growth. This portfolio is designed for the aggressive investor who is looking to maximize long-term growth by focusing on equity investments. Use this portfolio as a single diversified, growth-oriented investment solution and benefit from its sophisticated portfolio management built upon proven investment principles.

Management Team | 07-01-2009 Fiduciary Management, Inc. of Milwaukee Management Team | 03-15-2005 CIBC Global Asset Management Inc Management Team | 03-15-2005 Manulife Asset Management Limited Management Team | 03-15-2005 INTECH Investment Management LLC Management Team | 06-01-2006 Pictet International Management Management Team | 05-01-2011 del Rey Global Investors, LLC

Key Points on the Process Axiom All Equity Portfolio follows the discipline of strategic asset allocation to ensure the right combination of investments is working for investors. Independent Investment Management Axiom provides investors with the confidence of knowing that independent investment managers from around the world are working for them. Each portfolio manager of the underlying investments is selected based on their ability to meet the high standards expected of their organization, investment process, investment philosophy, and performance. Diversification This Axiom portfolio has been designed to minimize risks and solidify returns. We do this by ensuring the portfolio

is broadly diversified at multiple levels, avoiding too heavy a reliance on any one individual security, fund, sector, geographical region, or management style. Built-in Rebalancing This Axiom portfolio is rebalanced on an ongoing basis to prevent over exposure to any one asset class. When the asset allocation weightings shift more than 2.50% from the strategic asset allocation, the portfolio is automatically rebalanced. Monitoring Axiom relies on a team of investment professionals, CIBC’s Consulting Group, who select and monitor portfolio managers of underlying investments. A Summary of the Portfolio Axiom All Equity Portfolio is ideal for the aggressive investor seeking a diversified equity portfolio, with maximum growth potential and is a complement to a fixed income strategy. The portfolio is a fully diversified all equity solution for long-term maximum growth potential. The portfolio is fully diversified to capture equity opportunities worldwide, and provides the potential for maximum capital appreciation.

Manager Commentary Your portfolio’s broad diversification helped to moderate the significant downside effects of this quarter’s equity market volatility. Global equities struggled during the quarter as European sovereign debt concerns and weakened economic growth prospects resulted in a lower risk appetite, causing investors to shun equities in favour of bonds. Equities began to recover as plans to support the Spanish banking system, a cut in Chinese interest rates and talk of a third round of quantitative easing in the U.S. provided optimism. As at June 30, 2012

MER is annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details. Custom Benchmark: 20% S&P/TSX Composite Index / 38% S&P 500 Index / 24% MSCI EAFE Index / 18% MSCI Emerging Markets Index T-Class units are also available $10,000 TFSA minimum for Classes A & F

RENAISSANCE INVESTMENTS 31


Axiom Portfolios

Portfolio Essentials Axiom Balanced Income Portfolio

Axiom Diversified Monthly Income Portfolio

Axiom Balanced Growth Portfolio

Axiom Long-Term Growth Portfolio

Axiom Canadian Growth Portfolio

Axiom Global Growth Portfolio

Axiom Foreign Growth Portfolio

Axiom All Equity Portfolio

Front-End Load

ATL975

ATL983

ATL986

ATL992

ATL989

ATL995

ATL998

ATL782

Back-End Load

ATL976

ATL985

ATL988

ATL994

ATL991

ATL997

ATL778

ATL784

Low Load

ATL977

ATL984

ATL987

ATL993

ATL990

ATL996

ATL999

ATL783

Front-End Load

ATL926

ATL929

ATL932

ATL935

ATL938

ATL941

ATL944

ATL947

Back-End Load

ATL928

ATL931

ATL934

ATL937

ATL940

ATL943

ATL946

ATL949

Low Load

ATL927

ATL930

ATL933

ATL936

ATL939

ATL942

ATL945

ATL948

Front-End Load

ATL950

ATL953

ATL956

ATL959

ATL962

ATL965

ATL968

ATL971

Back-End Load

ATL952

ATL955

ATL958

ATL961

ATL964

ATL967

ATL970

ATL979

Low Load

ATL951

ATL954

ATL957

ATL960

ATL963

ATL966

ATL969

ATL978

ATL981

ATL788

ATL789

ATL791

ATL790

ATL792

ATL794

ATL796

Front-End Load

ATL2601

n/a

ATL2628

ATL2655

ATL2682

ATL2736

ATL2709

ATL2763

ATL FUND CODES CLASS A

SELECT CLASS

ELITE CLASS

CLASS F CLASS T4

CLASS T6

CLASS T8

SELECT-T4 CLASS

SELECT-T6 CLASS

SELECT-T8 CLASS

ELITE-T4 CLASS

ELITE-T6 CLASS

ELITE-T8 CLASS

Back-End Load

ATL2603

n/a

ATL2630

ATL2657

ATL2684

ATL2738

ATL2711

ATL2765

Low Load

ATL2602

n/a

ATL2629

ATL2656

ATL2683

ATL2737

ATL2710

ATL2764

Front-End Load

ATL2604

ATL072

ATL2631

ATL2658

ATL2685

ATL2739

ATL2712

ATL2766

Back-End Load

ATL2606

ATL074

ATL2633

ATL2660

ATL2687

ATL2741

ATL2714

ATL2768

Low Load

ATL2605

ATL073

ATL2632

ATL2659

ATL2686

ATL2740

ATL2713

ATL2767

Front-End Load

ATL2607

ATL081

ATL2634

ATL2661

ATL2688

ATL2742

ATL2715

ATL2769

Back-End Load

ATL2609

ATL083

ATL2636

ATL2663

ATL2690

ATL2744

ATL2717

ATL2771

Low Load

ATL2608

ATL082

ATL2635

ATL2662

ATL2689

ATL2743

ATL2716

ATL2770

Front-End Load

ATL2610

n/a

ATL2637

ATL2664

ATL2691

ATL2745

ATL2718

ATL2772

Back-End Load

ATL2612

n/a

ATL2639

ATL2666

ATL2693

ATL2747

ATL2720

ATL2774

Low Load

ATL2611

n/a

ATL2638

ATL2665

ATL2692

ATL2746

ATL2719

ATL2773

Front-End Load

ATL2616

ATL075

ATL2643

ATL2670

ATL2697

ATL2751

ATL2724

ATL2778

Back-End Load

ATL2618

ATL077

ATL2645

ATL2672

ATL2699

ATL2753

ATL2726

ATL2780

Low Load

ATL2617

ATL076

ATL2644

ATL2671

ATL2698

ATL2752

ATL2725

ATL2779

Front-End Load

ATL2622

ATL084

ATL2649

ATL2676

ATL2703

ATL2757

ATL2730

ATL2784

Back-End Load

ATL2624

ATL086

ATL2651

ATL2678

ATL2705

ATL2759

ATL2732

ATL2786

Low Load

ATL2623

ATL085

ATL2650

ATL2677

ATL2704

ATL2758

ATL2731

ATL2785

Front-End Load

ATL2613

n/a

ATL2640

ATL2667

ATL2694

ATL2748

ATL2721

ATL2775

Back-End Load

ATL2615

n/a

ATL2642

ATL2669

ATL2696

ATL2750

ATL2723

ATL2777

Low Load

ATL2614

n/a

ATL2641

ATL2668

ATL2695

ATL2749

ATL2722

ATL2776

Front-End Load

ATL2619

ATL078

ATL2646

ATL2673

ATL2700

ATL2754

ATL2727

ATL2781

Back-End Load

ATL2621

ATL080

ATL2648

ATL2675

ATL2702

ATL2756

ATL2729

ATL2783

Low Load

ATL2620

ATL079

ATL2647

ATL2674

ATL2701

ATL2755

ATL2728

ATL2782

Front-End Load

ATL2625

ATL087

ATL2652

ATL2679

ATL2706

ATL2760

ATL2733

ATL2787

Back-End Load

ATL2627

ATL089

ATL2654

ATL2681

ATL2708

ATL2762

ATL2735

ATL2789

Low Load

ATL2626

ATL088

ATL2653

ATL2680

ATL2707

ATL2761

ATL2734

ATL2788

32 RENAISSANCE INVESTMENTS


Axiom Portfolios

Portfolio Essentials

MERs1 (%) CLASS A SELECT CLASS ELITE CLASS CLASS F CLASS T4 CLASS T6 CLASS T8 SELECT-T4 CLASS SELECT-T6 CLASS SELECT-T8 CLASS ELITE-T4 CLASS ELITE-T6 CLASS ELITE-T8 CLASS COMMISSIONS (%) CLASS A, T4, T6, T8

SELECT, SELECT-T4, SELECT-T6, SELECT-T8 CLASS ELITE, ELITE-T4, ELITE-T6, ELITE-T8 CLASS TRAILERS3 (%) CLASS A, T4, T6, T8 & SELECT, SELECT-T4, SELECT-T6, SELECT-T8 CLASS

ELITE, ELITE-T4, ELITE-T6, ELITE-T8 CLASS

Axiom Balanced Income Portfolio

Axiom Diversified Monthly Income Portfolio

Axiom Balanced Growth Portfolio

Axiom Long-Term Growth Portfolio

Axiom Canadian Growth Portfolio

Axiom Global Growth Portfolio

Axiom Foreign Growth Portfolio

Axiom All Equity Portfolio

2.07 1.88 1.40 1.18 2.02 2.05 2.02 1.91 1.90 n/a n/a 1.44 n/a

2.21 1.99 1.46 0.99 n/a 2.14 2.17 n/a 2.03 2.02 n/a 1.48 1.46

2.32 2.15 1.54 1.02 2.36 2.33 2.38 2.27 2.20 2.20 n/a 1.55 n/a

2.61 2.35 1.67 1.28 2.48 2.65 2.66 n/a n/a n/a n/a 1.66 1.67

2.58 2.18 1.57 1.14 2.53 2.50 2.44 n/a n/a 2.26 n/a n/a n/a

2.79 2.34 1.64 1.35 2.80 2.82 2.75 n/a n/a n/a n/a n/a n/a

2.74 2.24 1.68 1.33 n/a n/a n/a n/a n/a n/a n/a n/a n/a

2.74 2.35 1.68 1.41 2.82 n/a 2.62 2.30 n/a n/a n/a n/a n/a

Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load Front-End Load Back-End Load Low Load

0-5 5.00 3.00 0-5 4.00 2.00 0-5 3.00 1.00

0-5 5.00 3.00 0-5 4.00 2.00 0-5 3.00 1.00

0-5 5.00 3.00 0-5 4.00 2.00 0-5 3.00 1.00

0-5 5.00 3.00 0-5 4.00 2.00 0-5 3.00 1.00

0-5 5.00 3.00 0-5 4.00 2.00 0-5 3.00 1.00

0-5 5.00 3.00 0-5 4.00 2.00 0-5 3.00 1.00

0-5 5.00 3.00 0-5 4.00 2.00 0-5 3.00 1.00

0-5 5.00 3.00 0-5 4.00 2.00 0-5 3.00 1.00

Front-End Load Back-End Load 1-6 years2 Back-End Load 7+ years2 Low Load 1-3 years Low Load Thereafter Front-End Load Back-End Load 1-6 years2 Back-End Load 7+ years2 Low Load 1-3 years Low Load Thereafter

1.00 0.50 1.00 0.50 1.00 0.70 0.40 0.70 0.40 0.70

1.00 0.50 1.00 0.50 1.00 0.70 0.40 0.70 0.40 0.70

1.10 0.50 1.10 0.50 1.10 0.80 0.40 0.80 0.40 0.80

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

1.25 0.50 1.25 0.50 1.25 0.90 0.40 0.90 0.40 0.90

All MERs are annualized for the period ending February 29, 2012. Renaissance Investments may have waived fees or absorbed expenses otherwise payable by a fund or portfolio, with the exception of any taxes or new fees introduced by regulators or governments. At the discretion of Renaissance Investments, this practice may continue indefinitely and can be terminated at any time. 2 All units held under the back-end load option on November 1, 2010 will maintain the trailing commission structure that was in place prior to November 1, 2010. Purchases of units under the back-end load option made after November 1, 2010 will be subject to the trailing commission structure detailed above. 3 Trailer fees may change at any time without prior notice. Select and Elite Class: There will be no automatic transfer into the Select Class (including Select-T4 Class, Select-T6 Class, or Select-T8 Class) or Elite Class (including Elite-T4 Class, Elite-T6 Class, or Elite-T8 Class) from other Axiom classes when the minimum investment of the Select classes or Elite classes has been reached. Conversions and switches into the Select classes or Elite classes will be subject to the minimum investment requirements governing each class. As a result, an investor must hold a minimum investment of $250,000 to convert or switch into the Select classes, and $500,000 to convert or switch into the Elite classes. Note: See the simplified prospectus for the tax treatment of conversions and switches. The information presented is accurate at the time of first printing, and is subject to change without notice. Management fees for Class A and Class F units are outlined in the Simplified Prospectus of the Portfolios. Management fees for the units of the Select classes and Elite classes will vary, but will not exceed the difference between the capped MER for that Class and the Portfolio’s operating expenses. No management fees are payable by the Portfolio that would duplicate a fee payable by the Underlying Pool(s) for the same service. 1

RENAISSANCE INVESTMENTS 33






Axiom Portfolios

Performance Summary As at June 30, 2012

 





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RENAISSANCE INVESTMENTS 35


Renaissance Investments family of funds Renaissance Investments’ comprehensive line-up of mutual funds can provide your clients with exposure to equity and fixed-income securities from markets around the world. These funds are ideal to build a portfolio or to add greater diversification and performance potential to your clients’ existing portfolios.

Fund Profiles Table of Contents NEW FUNDS Renaissance Canadian All-Cap Equity Fund Renaissance Optimal Inflation Opportunities Portfolio Renaissance Short-Term Income Fund – Premium Class Renaissance Canadian Bond Fund – Premium Class

Page 38 40 42 44

MONEY MARKET FUNDS Renaissance Money Market Fund Renaissance Money Market Fund – Premium Class Renaissance Canadian T-Bill Fund Renaissance U.S. Money Market Fund

46 48 50 52

FIXED INCOME FUNDS Renaissance Short-Term Income Fund Renaissance Canadian Bond Fund Renaissance Real Return Bond Fund Renaissance Corporate Bond Capital Yield Fund Renaissance Corporate Bond Capital Yield Fund – Premium Class Renaissance High-Yield Bond Fund Renaissance Global Bond Fund

54 56 58 60 62 64 66

BALANCED FUNDS Renaissance Canadian Balanced Fund Renaissance Optimal Income Portfolio

68 70

EQUITY INCOME FUNDS Renaissance Canadian Dividend Fund Renaissance Canadian Monthly Income Fund Renaissance Diversified Income Fund Renaissance Millennium High Income Fund

72 74 76 78

CANADIAN EQUITY FUNDS Renaissance Canadian Core Value Fund Renaissance Canadian Growth Fund Renaissance Canadian Small-Cap Fund

80 82 84

36 RENAISSANCE INVESTMENTS

U.S. EQUITY FUNDS Renaissance U.S. Equity Value Fund Renaissance U.S. Equity Growth Fund Renaissance U.S. Equity Growth Currency Neutral Fund Renaissance U.S. Equity Fund

Page 86 88 90 92

GLOBAL EQUITY FUNDS Renaissance International Dividend Fund Renaissance International Equity Fund Renaissance International Equity Currency Neutral Fund Renaissance Global Markets Fund Renaissance Optimal Global Equity Portfolio Renaissance Optimal Global Equity Currency Neutral Portfolio Renaissance Global Value Fund Renaissance Global Growth Fund Renaissance Global Growth Currency Neutral Fund Renaissance Global Focus Fund Renaissance Global Focus Currency Neutral Fund Renaissance Global Small-Cap Fund Renaissance European Fund Renaissance Asian Fund Renaissance China Plus Fund Renaissance Emerging Markets Fund

94 96 98 100 102 104 106 108 110 112 114 116 118 120 122 124

SPECIALTY FUNDS Renaissance Global Infrastructure Fund Renaissance Global Infrastructure Currency Neutral Fund Renaissance Global Real Estate Fund Renaissance Global Real Estate Currency Neutral Fund Renaissance Global Health Care Fund Renaissance Global Resource Fund Renaissance Global Science & Technology Fund

126 128 130 132 134 136 138


Invest with Confidence

Universe of Investment Managers

Quantitative Filters

When your clients invest with Renaissance Investments, they’re in good hands. We search the world for independent investment managers and put them to work on their behalf. We begin with a universe of thousands of potential investment managers, and then apply in-depth quantitative and qualitative filters to identify those with a proven ability to successfully manage the mandates within our

Manager Candidates

Qualitative Six-Step Process

Managers Selected for Renaissance Investments

investment solutions. Our exacting approach to due diligence helps us optimize performance and manage risk for our clients. Once selected for Renaissance Investments, managers undergo continuous monitoring and assessment. In order to remain part of our clients’ portfolios, they must demonstrate consistency with their investment disciplines and the rigorous standards of our products.

Strength Behind Your Clients – Renaissance Investments’ family of funds has access to the accumulated knowledge and expertise of independent investment managers from across Canada and around the world.

RENAISSANCE INVESTMENTS 37


NEW FUNDS

Renaissance Canadian All-Cap Equity Fund (Class A) Fund Category Canadian Equity

Morningstar Rating N/A

Investment Objective

Performance as of 06-30-2012

To achieve long-term investment returns through capital growth, by investing primarily in equity securities of Canadian issuers.

Growth of $10,000 15 Fund

Benchmark A S&P/TSX Composite Index

14 13 12

Volatility Analysis

11 10 9 Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

Total Assets ($mil) Best 1 Year Return

Worst 1 Year Return

— —

— —

Fund Category Benchmark A

Fund Details Load Structure

Currency

Fund Code

Trailing Returns %

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL1123 ATL1023 ATL2123 ATL068

Fund Category Benchmark A

Telephone Web Site

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

0.7

5.6

— -12.3 -12.4

— 22.3 26.7

— 13.4 14.5

— 21.6 24.1

— 16.4 17.3

— 8.4 9.8

— -32.7 -33.0

— 31.9 35.1

— 14.4 17.6

— -10.4 -8.7

— -1.3 -1.5

Calendar Year Returns %

Class

Inception Date MER Minimum Investment

2002

September 26, 2011 2.28% $500

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

— 1.2 1.1

— -5.4 -5.7

— -1.3 -1.5

— -11.2 -10.3

— 2.5 4.2

— 4.6 6.7

— -2.1 -0.7

— — —

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca

Investment Style

Top Ten Holdings

Notes Class F MER: 0.92% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details. Past performance information is currently unavailable as the fund was recently established.

97.1 0.0 0.0 0.0 0.0 2.1 0.8

% Assets

Royal Bank of Canada Bank of Nova Scotia Toronto-Dominion Bank CIBC Suncor Energy Inc

4.3 4.1 4.1 3.9 3.9

ShawCor, Ltd. Class A Bell Aliant Inc Potash Corporation of Saskatchewan, Inc. Teck Resources Ltd Class B Magna International Inc. Class A

3.4 3.1 2.9 2.9 2.7

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

55 55 52 0

Market Cap

Large Medium Small

%

65.7 33.3 1.0

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

Canada

% Equity

3.4 24.0 29.1 20.9 5.2 1.1 5.2 8.6 0.0 2.5 0.0 % Assets

100.0

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


NEW FUNDS

Renaissance Canadian All-Cap Equity Fund (Class A) Investment Management Overview Manager Bios

Investment Management Approach

Suzann Pennington | 09-26-2011 CIBC Global Asset Management Inc

Suzann Pennington is Head of Canadian Equities at CIBC Global Asset Management Inc. Prior to joining CGAM, she was Senior Vice-President, Investments and Team Lead of the Saxon Funds at Mackenzie Financial Corp. Suzann began her career at OMERS, then managed portfolios at Prudential Assurance, and was Director of Canadian Equities at Mutual Group Insurance Co. before helping to build Synergy Mutual Funds. At Sceptre Investment Counsel, Suzann was Vice-President, Equities and head of international research. Suzann is a CFA charterholder. Other Assets Managed

Since

CIBC Balanced CIBC Canadian Equity Renaissance Canadian Balanced Series A

07-11 07-11 08-11

The Fund benefits from the long-standing expertise and investment skill of Suzann Pennington, an all-cap Canadian equity manager with over 24 years of experience and an outstanding track record of analyzing and managing multi-cap equity and balanced portfolios. Suzann and her team employ a conservative, bottom-up value approach, which views risk on an absolute basis – an approach focusing on protecting the Fund from the risk of capital loss rather than the underperformance of an index. A well-defined process is geared to identifying holdings from all capitalization tranches. Suzann employs a fundamental approach to stock selection that results in an equity portfolio that is different from, and typically more diversified, on a sector basis than the benchmark index. The following are key elements of her investment process:

•Employs a variety of analytical tools to evaluate a wide range of companies for her desired value characteristics. •Focuses on portfolio construction by utilizing a diversified, conservative approach to avoid overconcentration, and excessive single company risk thereby creating a diversified portfolio aimed at delivering lower volatility. •Seeks to add value by picking good stocks and by structuring the portfolio for the long term instead of trying to time the market. The result is a diversified portfolio of value-oriented stocks which avoids over- concentration in any one sector, capitalization tranche or holding and targets strong long-term performance. This fund is an excellent core Canadian holding for an investor.

Manager Commentary The period was dominated by negative news regarding Europe’s sovereign debt issues, as well as slowing economic growth in the U.S. and China. These factors resulted in weak Canadian equity market performance, and underperformance by cyclical commodity sectors. The fund’s underweight position in gold stocks contributed to its performance. Many of the most significant individual contributors to fund performance were energy services, storage and transportation companies including Pembina Pipeline Corporation, Flint Energy Services Ltd. and Shawcor Ltd. The fund’s overweight position in the energy sector detracted from its performance, as oil prices declined from their recent highs. Energy production and integrated holdings – including Suncor Energy Inc., Penn West Petroleum Ltd. and Canadian Natural Resources Limited – also detracted from fund performance.

The manager took profits by selling the fund’s position in Pembina Pipeline after a period of strong performance, during which the company’s share price approached the manager’s assessment of its fair value. The proceeds from this sale were used to purchase shares of Keyera Corp. The fund also initiated a position in Bell Aliant Inc. after the stock sold off in response to the company’s temporarily low dividend coverage and elevated capital expenditure requirements. A position in TransAlta Corporation was also initiated. TransAlta has coal and gas power facilities in Alberta and the U.S., and supplies approximately 30 percent of Alberta’s power. Fund holdings are selected based on the manager’s assessment of the discount to their fundamental fair value relative to downside risk, and for each company’s contribution to the portfolio’s diversification. As at June 30, 2012

RENAISSANCE INVESTMENTS 39


NEW FUNDS

Renaissance Optimal Inflation Opportunities Portfolio (Class A) Fund Category Tactical Balanced

Morningstar Rating N/A

Investment Objective

Performance as of 06-30-2012

To seek long term capital appreciation by investing primarily in units of global and/or Canadian mutual funds and securities (including equity securities, fixed income securities, and permitted commodities), which are expected to benefit from or to provide a hedge against inflation.

Growth of $10,000 15 Fund

Benchmark A

14 13 12 11 10 9

Volatility Analysis

Performance Quartile (within category over calendar year) Low

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

— —

— —

Fund Details Class

Load Structure

Currency

Fund Code

A A A F Elite Elite Elite Sel Sel Sel

Back End Charge Front End Charge Low Load Charge No Sales or Redem Back End Charge Front End Charge Low Load Charge Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD

ATL2454 ATL2452 ATL2453 ATL2455 ATL2471 ATL2469 ATL2470 ATL2468 ATL2466 ATL2467

Inception Date MER Distribution Frequency Minimum Investment Telephone Web Site

September 26, 2011 2.54% Annually $500

888 888 FUND www.renaissanceinvestments.ca

Investment Style

Notes

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

0.9

2.0

Fund Category Benchmark A

— -9.2 —

— 13.5 —

— 7.8 —

— 11.1 —

— 10.4 —

— 1.1 —

— -21.4 —

— 22.1 —

— 10.5 —

— -5.0 —

— 2.3 —

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

— 0.8 —

— -2.0 —

— 2.3 —

— -3.0 —

— 5.3 —

— 6.6 —

— 0.2 —

— — —

Total Assets ($mil) Calendar Year Returns %

Fund Category Benchmark A

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other Top Ten Holdings

7.5 5.5 21.0 28.2 0.9 26.6 10.4

% Assets

Market Vectors EM Local Curr Bond ETF Canada Hsg Tr No 1 3.15% 15-06-2015 Canada Hsg Tr No 1 3.15% 15-06-2014 Transurban Group Sydney Airport Stapled Security

9.2 2.3 2.1 1.0 0.9

Canada Hsg Tr No 1 2.7% 15-12-2013 ITC Holdings Corp TELUS Corporation 4.95% 15-05-2014 Municipal Fin Authority 4.65% 19-04-2019 Bell Canada MTN Cds- 4.85% 30-06-2014

0.9 0.8 0.8 0.7 0.7

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

10 428 215 193

Market Cap

Large Medium Small

%

48.3 36.8 14.9

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

Credit Quality

High Medium Low NR/NA

%

25.1 14.6 8.6 51.7 % Equity

23.3 19.3 13.9 14.8 4.7 1.0 3.7 17.0 0.1 0.9 1.2 % Fixed Income

17.2 31.8 0.0 1.7 49.4 0.0

Class F MER: 1.19%. MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details. Past performance information is currently unavailable as the fund was recently established. ©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


NEW FUNDS

Renaissance Optimal Inflation Opportunities Portfolio (Class A) Investment Management Overview Manager Bios

Investment Management Approach

Luc de la Durantaye | 09-26-2011 CIBC Global Asset Management Inc

Luc de la Durantaye joined CIBC Global Asset Management Inc. in December 2002. Mr. de la Durantaye is leader of the Global Asset Allocation team, operating from within the firm's Investment Management Platform. Other Assets Managed

Since

CIBC Global Equity Renaissance Canadian Balanced Series A CIBC Balanced

01-03 10-09 10-09

This portfolio benefits from the proven experience and extensive depth of CIBC Global Asset Management’s Global Tactical Asset Allocation and Currency Management team led by Luc de la Durantaye and comprised of 20 portfolio managers, analysts and traders. Based on an investment philosophy that capital markets can be inefficient, the team uses a tactical asset allocation strategy to take advantage of changing inflationary cycles around the world, actively adjusting the Portfolio's holdings to address inflation concerns and capitalize on opportunities.

-Deflationary Boom (strong productivity, solid economic growth but decelerating inflation). •Determine asset class valuation: Perform asset class evaluation to determine expected returns. •Assess qualitative factors: Consider unquantifiable information that may have considerable impact on the inflation and growth outlook. Rank and select asset classes.

The investment process uses a fundamental discretionary approach supported by a blend of quantitative and qualitative inputs to actively manage the Portfolio’s asset mix. The investment approach takes the following steps:

•Portfolio construction and risk management: Balance conviction of inflationary strategies with risk exposure. Review alignment of risk parameters to highest conviction strategies. Constant monitoring of risk exposure and adjust strategy based on anticipated change in environment.

•Evaluate Canadian and global economic environments: Map regions and countries based on the expected inflationary environment: -Inflationary Bust (high and rising inflation, high real interest rates and below average economic growth). -Inflationary Boom (relatively high inflation but above average economic growth). -Deflationary Bust (very weak economic activity, rapidly falling inflation and too high real interest rates).

The result is an all-in-one actively managed inflationhedging strategy which can leverage non-traditional assets such as Infrastructure, Real Estate, Real Return Bonds, Commodities and traditional asset classes, making it suitable for all inflationary environments. This Portfolio complements a traditional portfolio by providing an active asset allocation approach designed to capitalize on inflation-related opportunities around the world.

Manager Commentary European sovereign debt issues continued over the period, as peripheral countries in Europe struggled to meet their fiscal targets and core European countries were not yet willing to offer a robust fiscal union. There was decelerating inflationary pressure in many emerging markets, particularly in China, which the manager believed created the opportunity to achieve attractive capital growth. Growth opportunities in the fund were concentrated in high yield and high dividend-paying companies in the global infrastructure sector. The manager increased the fund’s position in Canadian short-term bonds, which was paid for through the sale of U.S. real estate sector fund holdings. The manager added emerging markets currency exposure through investment in emerging markets bonds. Exposure to other currencies – like the Japanese yen, the euro and

the British pound – remains at a minimum, as the manager expects these currencies to underperform. The manager believes economic growth may remain slow and inflationary pressure may remain low in the coming year. In this economic environment, the manager believes the central banks of most developed economies will be able to maintain their extremely easy monetary policies. The manager expects the fund to remain defensively positioned until a more concrete solution can be implemented to solve the eurozone’s sovereign debt and banking issues. The manager will continue to position the fund to take advantage of evolving inflationary/deflationary trends, while maintaining a focus on preserving capital in this slow growth environment. As at June 30, 2012

RENAISSANCE INVESTMENTS 41


NEW FUNDS

Renaissance Short-Term Income Fund - Premium Class Fund Category Canadian Short Term Fixed Income

Morningstar Rating N/A

Investment Objective

Performance as of 06-30-2012 *

To obtain a high level of income consistent with security of capital through investments primarily in securities issued or guaranteed by the Government of Canada or one of the provinces thereof, municipal or school corporations in Canada and in first mortgages on properties situated in Canada, interest-bearing deposits of banks or trust companies, and high quality corporate bonds.

Growth of $10,000 15

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

— —

— —

Fund Details Load Structure

Currency

Fund Code

Prem A A A F

Front End Charge Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD CAD

ATL1206 ATL1121 ATL1021 ATL2121 ATL1630

Telephone Web Site

13 12 11 10 9

Total Assets ($mil)

Fund Category Benchmark A Trailing Returns %

Notes

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

83.5

146.4

— 3.7 6.3

— 3.4 5.1

— 3.3 5.1

— 1.5 2.4

— 3.0 4.0

— 2.6 4.1

— 6.2 8.6

— 3.7 4.5

— 2.5 3.6

— 3.4 4.7

1.1 0.8 0.9

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

0.2 0.1 0.1

1.0 0.6 0.9

1.1 0.8 0.9

— 2.9 3.8

— 2.6 3.5

— 2.8 3.8

— 3.8 5.1

1.7 — —

Jul

Aug

Sep

Distribution $

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

— 0.0317 0.0116 0.0287 0.0197 0.0229 0.0239 0.0280 0.0237

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

2002

Distributions as of 06-2012

September 26, 2011 0.77% Monthly $100,000

Investment Style

1

Calendar Year Returns %

Fund Category Benchmark A

Class

Inception Date MER Distribution Frequency Minimum Investment

14

Performance Quartile (within category over calendar year)

Volatility Analysis

Low

Fund

Benchmark A DEX Short Term Bond Index

Top Ten Holdings

0.0 0.0 0.0 94.2 3.5 2.2 0.1

% Assets

Canada Hsg Tr No 1 3.15% 15-06-2015 Canada Hsg Tr No 1 3.15% 15-06-2014 Canada Hsg Tr No 1 2.7% 15-12-2013 TELUS Corporation 4.95% 15-05-2014 Municipal Fin Authority 4.65% 19-04-2019

9.2 8.3 3.6 3.1 3.0

Bell Canada MTN Cds- 4.85% 30-06-2014 407 Intl Inc Mtn Cds- 3.88% 16-06-2015 Real Est Asset Liq Tr 4.638% 12-10-2015 Canada Govt 3.25% 01-06-2021 Nav Cda Mtn Cds- 4.713% 24-02-2016

3.0 2.9 2.9 2.9 2.7

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

103 103 0 90

Credit Quality

High Medium Low NR/NA

%

56.6 32.5 1.9 9.0

Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

% Fixed Income

38.6 51.8 0.0 3.8 5.8 0.0

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


NEW FUNDS

Renaissance Short-Term Income Fund - Premium Class Investment Management Overview Manager Bios

Investment Management Approach

Jeffrey Waldman | 10-01-1999 CIBC Global Asset Management Inc

As First Vice-President, Fixed Income, CIBC Global Asset Management Inc., Jeffrey Waldman joined CIBC Global in 1998. Prior to that Mr. Waldman held position of Investment Planning Assistant and Fixed Income Consultant at Confederation Life Insurance from 1987 to 1993; fixed Income portfolio manager and Vice-President of Canadian bonds at ING Investment Management from 1993 to 1998. Other Assets Managed

Since

CIBC Short-Term Income CIBC Short-Term Income Premium Renaissance Corp Bd Capital Yld Prem Cls Renaissance Corp Bond Capital Yield

12-07 12-07 11-09 11-09

Steven Dubrovsky | 12-11-2007 CIBC Global Asset Management Inc

Steven Dubrovsky joined CIBC Global Asset Management in August 1992. Mr. Dubrovsky is a member of the Global Fixed Income team, operating from within the firm's Investment Management Platform. Other Assets Managed

Since

CIBC Money Market CIBC Canadian T-Bill Premium Class CIBC US Money Market U$ CIBC Money Market Premium Class CIBC US Money Market Premium Class U$ CIBC Canadian T-Bill Class A Renaissance Money Market Premium Class Renaissance Money Market Renaissance Canadian T Bill Renaissance US Money Market U$

04-94 04-94 04-94 04-94 04-94 04-94 08-06 08-06 12-07 12-07

The Fund benefits from the investment expertise of CIBC Global Asset Management’s Steven Dubrovsky and Jeffrey Waldman along with the Fixed Income team. The team uses a bottom-up approach based on fundamental and quantitative analysis to deliver a high level of income with some potential for capital appreciation by investing primarily in shorter-term bonds of Canadian governments and companies. The team’s philosophy is that a core fixed income portfolio that combines multiple value added sources will lead to superior performance. The team combines four different strategies of producing added value from bonds – sector allocation, duration, term structure and security selection. The team begins with sector allocation by analyzing factors such as corporate profitability, fiscal balance of the provinces and municipalities and the historic spread relationship between the domestic sectors. The duration and term structure is determined through the team’s combined perspectives resulting from their technical and fundamental analysis. To do so, the team reviews

macroeconomic variables and uses technical interest rate analysis to draw conclusions about future economic growth and the direction of interest rates. For security selection, the team focuses on issuer-specific fundamentals, quantitative modeling of valuations and liquidity to determine securities for the portfolio. Once decisions are reached, the team implements a target price and execution strategy to build and maintain the portfolio. The Fund is continually subjected to management controls, monitoring and reviewing the portfolio characteristics on a daily basis. The result is a well-diversified conservative shorter-term bond portfolio with an average duration typically between three and five years, that is actively managed to deliver regular income and potential for capital growth. This Fund makes an excellent shorter-term bond portfolio for a more conservative investor or those with a shorter investment time horizon and can serve as a diversifying complement to an equity portfolio in order to manage risk.

Manager Commentary The Bank of Canada (BoC) left its administered lending rate unchanged over the second quarter of 2012, which marks the BoC’s longest period of rate stability since the 1950s. A statement issued by the BoC toward the end of the quarter highlighted increased concern about the global economic recovery and the downside risk to Canadian economic growth. In countries that are considered “safe havens” by investors, bond yields reached record lows in response to slowing global economic growth. The manager believes investors have grown increasingly concerned about the economic situation in Europe, as some eurozone countries took initial steps to exit the eurozone. In North America, economic growth remained positive (albeit disappointing). Corporate bonds lagged government bonds, as investors favoured securities that could provide greater capital preservation. The manager believes investors now anticipate a lower economic growth rate. Initially, investors largely believed

measures taken to stimulate growth would push yields and stock prices higher. The manager believes this enthusiasm has given way to the reality that continued deleveraging remains a drag on the global economy. The manager maintained the fund’s longer-thanbenchmark duration over the period in response to the manager’s expectation of a continued stable monetary policy, weak economic growth and ongoing geopolitical risk. The fund has an overweight position in corporate bonds, which provides yield to the portfolio. The manager continues to favour mortgage-backed securities guaranteed by the Government of Canada, as well as municipal bonds – rather than provincial bonds – because of their risk/reward profile. As at June 30, 2012

RENAISSANCE INVESTMENTS 43


NEW FUNDS

Renaissance Canadian Bond Fund - Premium Class Fund Category Canadian Fixed Income

Morningstar Rating N/A

Investment Objective

Performance as of 06-30-2012 *

To obtain a high level of current income consistent with preservation of capital through investment primarily in bonds, debentures, notes, and other debt instruments of Canadian governments, financial institutions and corporations.

Growth of $10,000 15 Fund

14 13 12 11 10

Volatility Analysis

Low

Benchmark A DEX Universe Bond Index

9

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

Total Assets ($mil)

1 2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

294.1

376.6

— 7.0 8.7

— 6.2 6.7

— 6.0 7.1

— 5.4 6.5

— 2.6 4.1

— 1.9 3.7

— 2.7 6.4

— 7.5 5.4

— 6.0 6.7

— 7.5 9.7

2.9 1.9 2.0

Calendar Year Returns % Best 1 Year Return

Worst 1 Year Return

— —

— —

Fund Category Benchmark A Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

0.1 0.0 0.0

2.3 1.8 2.2

2.9 1.9 2.0

— 7.6 9.5

— 5.7 7.1

— 6.3 7.0

— 5.8 7.0

5.0 — —

Fund Details Class

Load Structure

Currency

Fund Code

Prem A A A F

Front End Charge Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD CAD

ATL1204 ATL1122 ATL1022 ATL2122 ATL1631

Inception Date MER Distribution Frequency Minimum Investment Telephone Web Site

September 26, 2011 0.79% Monthly $100,000

Fund Category Benchmark A Distributions as of 06-2012

Jul

Aug

Sep

Distribution $

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

Investment Style

Top Ten Holdings

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

— 0.0509 0.1035 0.0340 0.0203 0.0252 0.0250 0.0307 0.0257

Portfolio Analysis as of 06-30-2012 Composition

888 888 FUND www.renaissanceinvestments.ca

Notes

Oct

0.0 0.0 0.0 93.9 0.2 5.7 0.3

% Assets

Canada Hsg Tr No 1 2.05% 15-06-2017 Canada Govt 2.75% 01-06-2022 Canada Govt 4% 01-06-2041 Municipal Fin Authority 4.45% 01-06-2020 BC (Prov Of) 4.7% 18-06-2037

19.2 7.4 5.9 2.1 1.7

Canada Govt 5% 01-06-2037 Municipal Fin Authority 4.8% 01-12-2017 407 Intl Inc Mtn Cds- 5.75% 14-02-2036 Bank of Nova Scotia 6.65% 22-01-2021 Sun Life Finl Inc Med Term Nts FRN 02-03-2022

1.3 1.1 1.0 1.0 0.9

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

167 167 0 163

Credit Quality

High Medium Low NR/NA

%

55.1 23.9 10.8 10.2

Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

% Fixed Income

42.6 50.8 0.0 0.7 5.9 0.0

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


NEW FUNDS

Renaissance Canadian Bond Fund - Premium Class Investment Management Overview Manager Bios

Investment Management Approach

John Braive | 08-01-2005 CIBC Global Asset Management Inc

John Braive joined CIBC Asset Management in January 1983. Responsible for the management of the firm's fixed income assets for 18 years, John is a member of the Global Fixed Income team, the Investment and Strategy committees, and the Board of Directors. Other Assets Managed

Since

CIBC Canadian Bond CIBC Canadian Bond Premium Class CIBC Short-Term Income Premium CIBC Short-Term Income Renaissance Real Return Bond Renaissance High-Yield Bond

04-94 04-94 12-99 12-99 04-08 04-12

Patrick O'Toole | 12-11-2007 CIBC Global Asset Management Inc

Patrick O'Toole joined CIBC Asset Management in May 2004. He is a member of the Global Fixed Income team, operating from within the firm's Investment Management Platform. He holds a Diploma in Business Administration from Algonquin College (Ontario) and is also a CFA charterholder and a Certified General Accountant. Other Assets Managed

Since

Renaissance Real Return Bond CIBC Canadian Bond Premium Class CIBC Canadian Bond Renaissance Corp Bd Capital Yld Prem Cls Renaissance Corp Bond Capital Yield

05-04 12-07 12-07 11-09 11-09

The Fund brings together the investment expertise of CIBC Global Asset Management’s John Braive and Patrick O'Toole, along with the Fixed Income team. The team uses a bottom-up approach based on fundamental and quantitative analysis to deliver a high level of income with some potential for capital appreciation by investing in bonds of Canadian governments and companies. The team’s philosophy is that a core fixed income portfolio that combines multiple value added sources will lead to superior performance. The team combines four different strategies of producing added value from bonds – sector allocation, duration, term structure and security selection. The team begins with sector allocation; analyzing factors such as corporate profitability, fiscal balance of the provinces and municipalities and historic spread relationship between the domestic sectors. The duration and term structure is determined through the team’s combined perspectives

resulting from their technical and fundamental analysis. To do so, the team reviews macroeconomic variables and uses technical interest rate analysis to draw conclusions about future economic growth and the direction of interest rates. For security selection, the team focuses on issuer-specific fundamentals, quantitative modeling of valuations and liquidity to determine securities for the portfolio. Once decisions are reached, the team implements a target price and execution strategy to build and maintain the portfolio. The Fund is continually subjected to management controls, monitoring and reviewing the portfolio characteristics on a daily basis. The result is a well-diversified conservative bond portfolio that is actively managed to deliver regular income and potential for capital growth. This Fund makes an excellent core bond portfolio for a conservative investor and can serve as a diversifying complement to an equity portfolio in order to manage risk.

Manager Commentary The bond yields of countries considered “safe havens” reached record lows, as global growth slowed and uncertainty surrounding the potential exit of countries from the eurozone grew. Voters in Greece and France rejected government parties that called for more austerity, while Spain tried to provide financial support to its struggling banking system. Economic growth in North America remained positive, although disappointing to investors. The Bank of Canada, which had hinted at a rate hike early in the quarter, moderated its expectations for future rate increases by the end of the quarter. Strong job numbers in Canada stood out against the weak employment numbers in the U.S. It will be difficult for Canada’s economy to continue to diverge from the U.S. (Canada’s strongest trading partner), especially as emerging markets also show signs

of slowing and weigh on commodity prices. During the period, investors who believed economic growth would take hold and drive yields and stock prices higher appear to have concluded that continued deleveraging had become a drag on the global economy. The result was volatile stock markets and government bond yields that were closer to the lower end of the manager’s forecasted range. The manager maintained the fund’s near-benchmark duration over the period. The fund had an overweight position in the corporate sector and underweight positions in the Government of Canada and provincial sectors. The fund’s yield was above that of the benchmark as a result of the manager’s sector allocation and yield curve strategies. As at June 30, 2012

RENAISSANCE INVESTMENTS 45


MONEY MARKET FUNDS

Renaissance Money Market Fund (Class A) Benchmark A DEX 91-Day T-Bill Index

Fund Category Canadian Money Market

Morningstar Rating QQQQ

Investment Objective

Performance as of 06-30-2012

To obtain a high level of income consistent with preservation of capital and liquidity by investing primarily in high quality, short- term debt securities issued or guaranteed by the Government of Canada or any Canadian provincial government obligations of Canadian banks, trust companies, and corporations.

Growth of $10,000 15 Fund

14 13 12 11 10 9

Volatility Analysis

Performance Quartile (within category over calendar year) Low

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

13.0% 11-30-1989 to 11-30-1990

0.2% 06-30-2009 to 06-30-2010

Fund Details Class

Load Structure

Currency

Fund Code

A A A Prem

Back End Charge Front End Charge Low Load Charge Front End Charge

CAD CAD CAD CAD

ATL1125 ATL1025 ATL2125 ATL1200

Inception Date MER Current Yield Current Yield Date Distribution Frequency Minimum Investment Telephone Web Site

January 2, 1987 0.51% 0.69% 07-13-2012 Monthly $500

3

3

3

3 2007

2

2

2

2

2

2002

2003

2004

2005

2006

271.7

232.6

182.9

137.6

703.6

Fund Category Benchmark A

1.61 1.79 2.52

2.04 2.16 2.91

1.37 1.54 2.30

1.67 1.89 2.58

2.98 3.23 3.98

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

0.05 0.05 0.10

0.16 0.15 0.27

0.32 0.29 0.48

0.68 0.59 0.96

0.69 0.58 0.93

0.51 0.45 0.73

1.26 1.32 1.65

1.69 1.82 2.36

Total Assets ($mil)

2008

2009

2010

2011

YTD

930.2 1257.7

526.3

313.1

236.8

185.2

0.37 0.53 0.63

0.38 0.31 0.54

0.75 0.64 1.00

0.32 0.29 0.48

Calendar Year Returns %

Fund Category Benchmark A Distributions as of 06-2012 Distribution $

Jul

Aug

Sep

Oct

Nov

3.58 3.82 4.43

Dec

2.57 2.84 3.33

Jan

Feb

Mar

Apr

May

Jun

0.0059 0.0067 0.0059 0.0059 0.0054 0.0053 0.0057 0.0052 0.0053 0.0056 0.0053 0.0052

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca

Investment Style

3

3

Cash Breakdown

Corporate Cash Liquid Bonds Treasury Bills General Cash

0.0 0.0 0.0 4.0 6.6 89.4 0.0

% Cash

0.0 6.9 0.0 93.1

Top Ten Holdings

% Assets

Cash & Cash Equivalents Bank of Nova Scotia FRN 19-09-2013 Bank of Montreal FRN 21-06-2013 Royal Bank Of Canada FRN 21-01-2014 Bank of Montreal FRN 22-01-2013

89.5 2.2 2.0 1.8 1.8

GE Cap Cda Fdg Co 5.15% 06-06-2013 Royal Bank Of Canada FRN 10-04-2013

1.7 1.1

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

Notes MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.

8 8 0 2


Investment Management Overview Manager Bios

Investment Management Approach

Steven Dubrovsky | 08-21-2006 CIBC Global Asset Management Inc

Steven Dubrovsky joined CIBC Global Asset Management in August 1992. Mr. Dubrovsky is a member of the Global Fixed Income team, operating from within the firm's Investment Management Platform. Other Assets Managed

Since

CIBC Money Market CIBC Canadian T-Bill Premium Class CIBC US Money Market U$ CIBC Money Market Premium Class CIBC US Money Market Premium Class U$ CIBC Canadian T-Bill Class A Renaissance Short-Term Income Prm Cl Renaissance Canadian T Bill Renaissance US Money Market U$ Renaissance Short-Term Income

04-94 04-94 04-94 04-94 04-94 04-94 12-07 12-07 12-07 12-07

Stephanie Lessard | 04-09-2008 CIBC Global Asset Management Inc

Stéphanie Lessard joined CIBC Global Asset Management in April 2001. Ms. Lessard is a member of the Global Fixed Income team operating from within the firm's Investment Management Platform. Other Assets Managed

Since

Renaissance Canadian T Bill Renaissance US Money Market U$ CIBC Money Market CIBC Canadian T-Bill Premium Class CIBC US Money Market U$ CIBC Money Market Premium Class CIBC US Money Market Premium Class U$ CIBC Canadian T-Bill Class A

10-04 10-04 12-07 12-07 12-07 12-07 12-07 12-07

The Fund benefits from the investment expertise of CIBC Global Asset Management’s Steven Dubrovsky and Stephanie Lessard along with the Global Fixed Income team. The team follows a fundamental analysis approach to deliver a high level of interest income while maintaining security of capital and liquidity, by investing primarily in high-quality debt. The team’s money market strategy follows a comprehensive investment process. The first two steps are to determine portfolio duration and sector allocation between Canadian, provincial and corporate notes. The team constructs and maintains the security buy list,

which plays a key role in the security selection process. The manager next determines the optimal term structure. The entire portfolio is continually subjected to management controls, monitoring and reviewing the portfolio characteristics on a daily basis. The result is a well-diversified portfolio of high quality securities including T-Bills, commercial papers and other short-term debt instruments. The Fund is an excellent conservative complement to diversify an equity portfolio, and can be used as a conservative short-term investment.

Manager Commentary The Bank of Canada (BoC) left its administered rate unchanged at one percent over the second quarter of 2012, making this the longest period of rate stability since the 1950s. The BoC indicated its outlook for growth has become more cautious, and future rate hikes will now be based on the BoC’s economic outlook. The statement cited weak global economic growth and heightened risk as a result of Europe’s sovereign debt issues. This statement followed weakening data reports out of China and the U. S., as well as slowing growth in many emerging market economies. The BoC noted the composition of economic growth in Canada had grown less balanced. It referenced the strength in the housing sector and the continued increase in household debt in an environment of modest income growth. Economic growth in Canada has been increasingly dependent on the strength of the housing

market, which has added to the BoC’s unease. In the manager’s view, the likelihood of any near-term adjustment in the BoC’s monetary policy is low. The three-month Canadian Treasury-bill rate decreased modestly during the quarter. This was the result of weaker economic conditions and eurozone debt and banking issues. The fund continues to hold an overweight position in corporate bonds to maintain a higher running yield. Should spreads widen, the manager will add to the fund’s corporate bond exposure. The fund’s term to maturity is positioned in a neutral range, as the manager believes there are no immediate prospects for interest rate increases. As at June 30, 2012

RENAISSANCE INVESTMENTS 47

MONEY MARKET FUNDS

Renaissance Money Market Fund (Class A)


MONEY MARKET FUNDS

Renaissance Money Market Fund - Premium Class Benchmark A DEX 91-Day T-Bill Index

Fund Category Canadian Money Market

Morningstar Rating QQQQQ

Investment Objective

Performance as of 06-30-2012

To obtain a high level of income consistent with preservation of capital and liquidity by investing primarily in high quality, short- term debt securities issued or guaranteed by the Government of Canada or any Canadian provincial government obligations of Canadian banks, trust companies, and corporations.

Growth of $10,000 15 Fund

14 13 12 11 10 9

Volatility Analysis

Performance Quartile (within category over calendar year) Low

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

4.2% 03-31-2007 to 03-31-2008

0.2% 06-30-2009 to 06-30-2010

Fund Details Class

Load Structure

Currency

Fund Code

Prem A A A

Front End Charge Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD

ATL1200 ATL1125 ATL1025 ATL2125

Inception Date MER Current Yield Current Yield Date Distribution Frequency Minimum Investment Telephone Web Site

August 21, 2006 0.38% 0.86% 07-13-2012 Monthly $25,000

1

1

1

1

1

2002

2003

2004

2005

2006

271.7

232.6

182.9

137.6

703.6

Fund Category Benchmark A

— 1.79 2.52

— 2.16 2.91

— 1.54 2.30

— 1.89 2.58

— 3.23 3.98

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

0.07 0.05 0.10

0.20 0.15 0.27

0.40 0.29 0.48

0.82 0.59 0.96

0.81 0.58 0.93

0.62 0.45 0.73

1.56 1.32 1.65

1.90 — —

Total Assets ($mil)

2007

1

2008

2009

2010

2011

YTD

930.2 1257.7

526.3

313.1

236.8

185.2

0.62 0.53 0.63

0.45 0.31 0.54

0.88 0.64 1.00

0.40 0.29 0.48

Calendar Year Returns %

Fund Category Benchmark A Distributions as of 06-2012 Distribution $

Jul

Aug

Sep

Oct

Nov

4.09 3.82 4.43

Dec

3.37 2.84 3.33

Jan

Feb

Mar

Apr

May

Jun

0.0069 0.0078 0.0070 0.0070 0.0065 0.0063 0.0069 0.0063 0.0067 0.0070 0.0068 0.0065

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca

0.0 0.0 0.0 4.0 6.6 89.4 0.0

Investment Style Cash Breakdown

Corporate Cash Liquid Bonds Treasury Bills General Cash

% Cash

0.0 6.9 0.0 93.1

Top Ten Holdings

% Assets

Cash & Cash Equivalents Bank of Nova Scotia FRN 19-09-2013 Bank of Montreal FRN 21-06-2013 Royal Bank Of Canada FRN 21-01-2014 Bank of Montreal FRN 22-01-2013

89.5 2.2 2.0 1.8 1.8

GE Cap Cda Fdg Co 5.15% 06-06-2013 Royal Bank Of Canada FRN 10-04-2013

1.7 1.1

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

Notes MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.

8 8 0 2


Investment Management Overview Manager Bios

Investment Management Approach

Steven Dubrovsky | 08-21-2006 CIBC Global Asset Management Inc

Steven Dubrovsky joined CIBC Global Asset Management in August 1992. Mr. Dubrovsky is a member of the Global Fixed Income team, operating from within the firm's Investment Management Platform. Other Assets Managed

Since

CIBC Money Market CIBC Canadian T-Bill Premium Class CIBC US Money Market U$ CIBC Money Market Premium Class CIBC US Money Market Premium Class U$ CIBC Canadian T-Bill Class A Renaissance Short-Term Income Prm Cl Renaissance Canadian T Bill Renaissance US Money Market U$ Renaissance Short-Term Income

04-94 04-94 04-94 04-94 04-94 04-94 12-07 12-07 12-07 12-07

Stephanie Lessard | 04-09-2008 CIBC Global Asset Management Inc

Stéphanie Lessard joined CIBC Global Asset Management in April 2001. Ms. Lessard is a member of the Global Fixed Income team operating from within the firm's Investment Management Platform. Other Assets Managed

Since

Renaissance Canadian T Bill Renaissance US Money Market U$ CIBC Money Market CIBC Canadian T-Bill Premium Class CIBC US Money Market U$ CIBC Money Market Premium Class CIBC US Money Market Premium Class U$ CIBC Canadian T-Bill Class A

10-04 10-04 12-07 12-07 12-07 12-07 12-07 12-07

The Fund benefits from the investment expertise of CIBC Global Asset Management’s Steven Dubrovsky and Stephanie Lessard along with the Global Fixed Income team. The team follows a fundamental analysis approach to deliver a high level of interest income while maintaining security of capital and liquidity, by investing primarily in high-quality debt. The team’s money market strategy follows a comprehensive investment process. The first two steps are to determine portfolio duration and sector allocation between Canadian, provincial and corporate notes. The team constructs and maintains the security buy list,

which plays a key role in the security selection process. The manager next determines the optimal term structure. The entire portfolio is continually subjected to management controls, monitoring and reviewing the portfolio characteristics on a daily basis. The result is a well-diversified portfolio of high quality securities including T-Bills, commercial papers and other short-term debt instruments. The Fund is an excellent conservative complement to diversify an equity portfolio, and can be used as a conservative short-term investment.

Manager Commentary The Bank of Canada (BoC) left its administered rate unchanged at one percent over the second quarter of 2012, making this the longest period of rate stability since the 1950s. The BoC indicated its outlook for growth has become more cautious, and future rate hikes will now be based on the BoC’s economic outlook. The statement cited weak global economic growth and heightened risk as a result of Europe’s sovereign debt issues. This statement followed weakening data reports out of China and the U. S., as well as slowing growth in many emerging market economies. The BoC noted the composition of economic growth in Canada had grown less balanced. It referenced the strength in the housing sector and the continued increase in household debt in an environment of modest income growth. Economic growth in Canada has been increasingly dependent on the strength of the housing

market, which has added to the BoC’s unease. In the manager’s view, the likelihood of any near-term adjustment in the BoC’s monetary policy is low. The three-month Canadian Treasury-bill rate decreased modestly during the quarter. This was the result of weaker economic conditions and eurozone debt and banking issues. The fund continues to hold an overweight position in corporate bonds to maintain a higher running yield. Should spreads widen, the manager will add to the fund’s corporate bond exposure. The fund’s term to maturity is positioned in a neutral range, as the manager believes there are no immediate prospects for interest rate increases. As at June 30, 2012

RENAISSANCE INVESTMENTS 49

MONEY MARKET FUNDS

Renaissance Money Market Fund - Premium Class


MONEY MARKET FUNDS

Renaissance Canadian T-Bill Fund (Class A) Benchmark A DEX 91-Day T-Bill Index

Fund Category Canadian Money Market

Morningstar Rating QQ

Investment Objective

Performance as of 06-30-2012

To maintain security of capital and liquidity by investing primarily in Canadian government debt instruments that mature in one year or less.

Growth of $10,000 15 Fund

14 13 12

Volatility Analysis

11 10 9 Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

Worst 1 Year Return

12.3% 11-30-1989 to 11-30-1990

0.1% 04-30-2009 to 04-30-2010

Fund Details

4

4

3

2

2

2

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

97.1

83.5

65.9

65.1

73.4

39.3

30.2

28.9

25.2

Fund Category Benchmark A

1.27 1.79 2.52

1.65 2.16 2.91

1.03 1.54 2.30

1.37 1.89 2.58

2.64 3.23 3.98

3.06 3.82 4.43

1.70 2.84 3.33

0.19 0.53 0.63

0.31 0.31 0.54

0.57 0.64 1.00

0.24 0.29 0.48

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

0.04 0.05 0.10

0.13 0.15 0.27

0.24 0.29 0.48

0.51 0.59 0.96

0.52 0.58 0.93

0.40 0.45 0.73

0.92 1.32 1.65

1.34 1.82 2.36

Calendar Year Returns %

Load Structure

Currency

Fund Code

Trailing Returns %

Back End Charge Front End Charge Low Load Charge

CAD CAD CAD

ATL643 ATL922 ATL681

Fund Category Benchmark A

Telephone Web Site

4

116.1

A A A

August 21, 1987 0.46% — 07-13-2012 Monthly $500

4

2002

Class

Inception Date MER Current Yield Current Yield Date Distribution Frequency Minimum Investment

4

149.5

Total Assets ($mil) Best 1 Year Return

4

4

Distributions as of 06-2012 Distribution $

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

0.0046 0.0050 0.0045 0.0044 0.0041 0.0041 0.0041 0.0037 0.0037 0.0040 0.0044 0.0042

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca

Investment Style

Cash Breakdown

Corporate Cash Liquid Bonds Treasury Bills General Cash

0.0 0.0 0.0 2.3 1.7 96.0 0.0

Top Ten Holdings

Cash & Cash Equivalents Quebec Prov Cda 10-12-2013 Manitoba Prov Cda Mtn Cds- 15-03-2013 Alberta Cap Fin thority 09-10-2012

% Assets

94.4 2.3 1.7 1.7

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

% Cash

0.0 1.7 1.8 96.5

Notes MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.

5 5 0 1


Investment Management Overview Manager Bios

Investment Management Approach

Stephanie Lessard | 10-01-2004 CIBC Global Asset Management Inc

Stéphanie Lessard joined CIBC Global Asset Management in April 2001. Ms. Lessard is a member of the Global Fixed Income team operating from within the firm's Investment Management Platform. Other Assets Managed

Since

Renaissance US Money Market U$ CIBC Money Market Premium Class CIBC US Money Market Premium Class U$ CIBC Canadian T-Bill Class A CIBC Money Market CIBC Canadian T-Bill Premium Class CIBC US Money Market U$ Renaissance Money Market Premium Class Renaissance Money Market

10-04 12-07 12-07 12-07 12-07 12-07 12-07 04-08 04-08

Steven Dubrovsky | 12-11-2007 CIBC Global Asset Management Inc

Steven Dubrovsky joined CIBC Global Asset Management in August 1992. Mr. Dubrovsky is a member of the Global Fixed Income team, operating from within the firm's Investment Management Platform. Other Assets Managed

Since

CIBC Money Market CIBC Canadian T-Bill Premium Class CIBC US Money Market U$ CIBC Money Market Premium Class CIBC US Money Market Premium Class U$ CIBC Canadian T-Bill Class A Renaissance Money Market Premium Class Renaissance Money Market Renaissance US Money Market U$ Renaissance Short-Term Income

04-94 04-94 04-94 04-94 04-94 04-94 08-06 08-06 12-07 12-07

The Fund benefits from the investment expertise of CIBC Global Asset Management’s Steven Dubrovsky and Stéphanie Lessard, along with the Global Fixed Income team. The team follows a fundamental analysis approach to deliver a high level of interest income while maintaining security of capital and liquidity, by investing primarily in Canadian government debt instruments that mature in one year or less. The team’s money market strategy follows a comprehensive investment process. The first step determines the portfolio duration based on CIBC Global’s viewpoint on expected interest rate movements. The

team may opportunistically invest in high quality commercial papers in order to increase the level of income. The manager next determines the optimal term structure. The entire portfolio is continually subjected to management controls, monitoring and reviewing the portfolio characteristics on a daily basis. The end result is a well-diversified portfolio of high quality securities invested primarily in T-Bills. This Fund is an excellent conservative complement to diversify an equity portfolio, and can also be used as a very conservative short-term investment.

Manager Commentary The Bank of Canada (BoC) left its administered rate unchanged at one percent over the second quarter of 2012, making this the longest period of rate stability since the 1950s. The BoC indicated its outlook for growth has become more cautious, and future rate hikes will now be based on the BoC’s economic outlook. The statement cited weak global economic growth and heightened risk as a result of Europe’s sovereign debt issues. This statement followed weakening data reports out of China and the U. S., as well as slowing growth in many emerging market economies. The BoC noted the composition of economic growth in Canada had grown less balanced. It referenced the strength in the housing sector and the continued

increase in household debt in an environment of modest income growth. Economic growth in Canada has been increasingly dependent on the strength of the housing market, which has added to the BoC’s unease. In the manager’s view, the likelihood of any near-term adjustment in the BoC’s monetary policy is low. The three-month Canadian Treasury-bill rate decreased modestly during the quarter. This was the result of weaker economic conditions and eurozone debt and banking issues. The fund’s term to maturity is positioned in a neutral range, as the manager believes there are no immediate prospects for interest rate increases. As at June 30, 2012

RENAISSANCE INVESTMENTS 51

MONEY MARKET FUNDS

Renaissance Canadian T-Bill Fund (Class A)


MONEY MARKET FUNDS

Renaissance U.S. Money Market Fund (Class A) Benchmark A Merrill Lynch 91-Day Treasury Bill Index

Fund Category US Money Market

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

To obtain a high level of interest income denominated in U.S. dollars, while maintaining a high level of security of capital and liquidity.

Growth of $10,000 15 Fund

14 13 12

Volatility Analysis

11 10 9 Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

Worst 1 Year Return

8.1% 02-28-1989 to 02-28-1990

0.1% 04-30-2011 to 04-30-2012

Fund Details

4

2

2

2

2

2

2

2

2

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

75.4

36.6

34.6

24.6

20.3

27.8

21.9

20.1

30.7

38.4

38.1

Fund Category Benchmark A

0.83 0.18 0.78 0.20 0.73 -17.26

0.32 0.43 -6.05

2.29 2.38 0.48

4.09 4.21 4.43

4.48 4.59 -9.74

2.08 0.22 2.38 0.50 25.99 -14.90

0.13 0.10 -5.10

0.09 0.09 2.58

0.05 0.06 0.15

Total Assets ($mil) Best 1 Year Return

3

2

Calendar Year Returns %

Class

Load Structure

Currency

Fund Code

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

A A A

Back End Charge Front End Charge Low Load Charge

USD USD USD

ATL363 ATL974 ATL762

Fund Category Benchmark A

0.01 0.01 -1.57

0.03 0.03 2.03

0.05 0.06 0.15

0.09 0.10 5.69

0.11 0.11 -1.95

0.11 0.11 -4.13

0.97 1.08 0.13

1.42 1.52 -2.13

Inception Date MER Current Yield Current Yield Date Distribution Frequency Minimum Investment Telephone Web Site

March 30, 1987 0.15% 0.15% 07-13-2012 Monthly $500

Distributions as of 06-2012 Distribution $

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

0.0005 0.0005 0.0004 0.0006 0.0006 0.0006 0.0007 0.0006 0.0008 0.0009 0.0010 0.0012

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca

Investment Style

0.0 0.0 0.0 0.0 0.0 92.6 7.4

Cash Breakdown

% Cash

Corporate Cash Liquid Bonds Treasury Bills General Cash

0.0 0.0 0.0 100.0

Top Ten Holdings

Cash & Cash Equivalents

% Assets

92.6

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

Notes MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.

2 2 0 0


Investment Management Overview Manager Bios

Investment Management Approach

Stephanie Lessard | 10-01-2004 CIBC Global Asset Management Inc

Stéphanie Lessard joined CIBC Global Asset Management in April 2001. Ms. Lessard is a member of the Global Fixed Income team operating from within the firm's Investment Management Platform. Other Assets Managed

Since

Renaissance Canadian T Bill CIBC Money Market Premium Class CIBC US Money Market Premium Class U$ CIBC Canadian T-Bill Class A CIBC Money Market CIBC Canadian T-Bill Premium Class CIBC US Money Market U$ Renaissance Money Market Premium Class Renaissance Money Market

10-04 12-07 12-07 12-07 12-07 12-07 12-07 04-08 04-08

Steven Dubrovsky | 12-11-2007 CIBC Global Asset Management Inc

Steven Dubrovsky joined CIBC Global Asset Management in August 1992. Mr. Dubrovsky is a member of the Global Fixed Income team, operating from within the firm's Investment Management Platform. Other Assets Managed

Since

CIBC Money Market CIBC Canadian T-Bill Premium Class CIBC US Money Market U$ CIBC Money Market Premium Class CIBC US Money Market Premium Class U$ CIBC Canadian T-Bill Class A Renaissance Money Market Premium Class Renaissance Money Market Renaissance Canadian T Bill Renaissance Short-Term Income

04-94 04-94 04-94 04-94 04-94 04-94 08-06 08-06 12-07 12-07

The Fund benefits from the investment expertise of CIBC Global Asset Management’s Steven Dubrovsky and Stephanie Lessard, along with the Global Fixed Income team. The team follows a fundamental analysis approach to deliver a high level of interest income while maintaining security of capital and liquidity, by investing primarily in high-quality debt issued in U.S. dollar denominated currency.

team constructs and maintains the security buy list, which plays a key role in the security selection process. The manager next determines the optimal term structure. The entire Fund is continually subjected to management controls, and the team monitor and review the portfolio characteristics on a daily basis. The result is a well-diversified Fund of high quality debt

The team’s money market strategy follows a comprehensive investment process. The first two steps determine portfolio duration and sector allocation. The

securities issued in U.S. dollar denominated currency. This fund is an excellent conservative short-term investment for U.S. currency.

Manager Commentary The U.S. Federal Reserve (the Fed) maintained its federal funds rate at 0 to 0.25 percent over the second quarter of 2012. At its latest policy meeting, the Federal Open Market Committee repeated its message that current economic conditions are likely to warrant a very low federal funds rate through late 2014. The Fed noted an improvement in the labour market, and increased inflation as a result of rising oil and gas prices. Economic growth is widely expected to remain moderate in coming quarters, and is then expected to pick up gradually. Since the last Fed announcement in late April, economic momentum has slowed and labour conditions have softened. The Fed repeated its concern that

challenging global financial market conditions continue to pose significant risk to the economic outlook. The three-month U.S. T-bill rate remained unchanged during the period. The fund’s term to maturity is positioned in the neutral range. In the manager’s view, the yield curve offers very little yield pickup by extending into longer maturities, and the manager believes there are no immediate prospects for an interest rate hike. As at June 30, 2012

RENAISSANCE INVESTMENTS 53

MONEY MARKET FUNDS

Renaissance U.S. Money Market Fund (Class A)


FIXED INCOME FUNDS

Renaissance Short-Term Income Fund (Class A) Fund Category Canadian Short Term Fixed Income

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

To obtain a high level of income consistent with security of capital through investments primarily in securities issued or guaranteed by the Government of Canada or one of the provinces thereof, municipal or school corporations in Canada and in first mortgages on properties situated in Canada, interest-bearing deposits of banks or trust companies, and high quality corporate bonds.

Growth of $10,000 15 14 13 12 11 10 9 Performance Quartile (within category over calendar year)

Volatility Analysis

Low

Fund

Benchmark A DEX Short Term Bond Index

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

17.8% 04-30-1990 to 04-30-1991

-3.8% 01-31-1994 to 01-31-1995

Total Assets ($mil)

2

3

4

4

4

4

1

3

3

2

2

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

92.7

132.4

123.2

105.4

75.0

35.2

32.5

65.5

59.1

83.5

146.4

4.6 3.7 6.3

3.0 3.4 5.1

2.9 3.3 5.1

1.0 1.5 2.4

2.5 3.0 4.0

2.3 2.6 4.1

6.9 6.2 8.6

1.9 3.7 4.5

1.9 2.5 3.6

3.6 3.4 4.7

0.8 0.8 0.9

Calendar Year Returns %

Fund Category Benchmark A Trailing Returns %

Fund Category Benchmark A

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

0.1 0.1 0.1

0.8 0.6 0.9

0.8 0.8 0.9

3.0 2.9 3.8

2.5 2.6 3.5

2.5 2.8 3.8

3.5 3.8 5.1

3.1 3.3 4.8

Fund Details Class

Load Structure

Currency

Fund Code

Distributions as of 06-2012

A A A F Prem

Back End Charge Front End Charge Low Load Charge No Sales or Redem Front End Charge

CAD CAD CAD CAD CAD

ATL1121 ATL1021 ATL2121 ATL1630 ATL1206

Distribution $

Inception Date MER Distribution Frequency Minimum Investment Telephone Web Site

Jul

Aug

Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca Top Ten Holdings

Notes Class F MER: 0.89% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Portfolio Analysis as of 06-30-2012

October 1, 1974 1.38% Monthly $500

Investment Style

Sep

0.0270 0.0301 0.0267 0.0210 0.0196 0.0107 0.0274 0.0175 0.0208 0.0228 0.0270 0.0222

0.0 0.0 0.0 94.2 3.5 2.2 0.1

% Assets

Canada Hsg Tr No 1 3.15% 15-06-2015 Canada Hsg Tr No 1 3.15% 15-06-2014 Canada Hsg Tr No 1 2.7% 15-12-2013 TELUS Corporation 4.95% 15-05-2014 Municipal Fin Authority 4.65% 19-04-2019

9.2 8.3 3.6 3.1 3.0

Bell Canada MTN Cds- 4.85% 30-06-2014 407 Intl Inc Mtn Cds- 3.88% 16-06-2015 Real Est Asset Liq Tr 4.638% 12-10-2015 Canada Govt 3.25% 01-06-2021 Nav Cda Mtn Cds- 4.713% 24-02-2016

3.0 2.9 2.9 2.9 2.7

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

103 103 0 90

Credit Quality

High Medium Low NR/NA

%

56.6 32.5 1.9 9.0

Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

% Fixed Income

38.6 51.8 0.0 3.8 5.8 0.0

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

Jeffrey Waldman | 10-01-1999 CIBC Global Asset Management Inc

As First Vice-President, Fixed Income, CIBC Global Asset Management Inc., Jeffrey Waldman joined CIBC Global in 1998. Prior to that Mr. Waldman held position of Investment Planning Assistant and Fixed Income Consultant at Confederation Life Insurance from 1987 to 1993; fixed Income portfolio manager and Vice-President of Canadian bonds at ING Investment Management from 1993 to 1998. Other Assets Managed

Since

CIBC Short-Term Income CIBC Short-Term Income Premium Renaissance Corp Bd Capital Yld Prem Cls Renaissance Corp Bond Capital Yield

12-07 12-07 11-09 11-09

Steven Dubrovsky | 12-11-2007 CIBC Global Asset Management Inc

Steven Dubrovsky joined CIBC Global Asset Management in August 1992. Mr. Dubrovsky is a member of the Global Fixed Income team, operating from within the firm's Investment Management Platform. Other Assets Managed

Since

CIBC Money Market CIBC Canadian T-Bill Premium Class CIBC US Money Market U$ CIBC Money Market Premium Class CIBC US Money Market Premium Class U$ CIBC Canadian T-Bill Class A Renaissance Money Market Premium Class Renaissance Money Market Renaissance Canadian T Bill Renaissance US Money Market U$

04-94 04-94 04-94 04-94 04-94 04-94 08-06 08-06 12-07 12-07

The Fund benefits from the investment expertise of CIBC Global Asset Management’s Steven Dubrovsky and Jeffrey Waldman along with the Fixed Income team. The team uses a bottom-up approach based on fundamental and quantitative analysis to deliver a high level of income with some potential for capital appreciation by investing primarily in shorter-term bonds of Canadian governments and companies. The team’s philosophy is that a core fixed income portfolio that combines multiple value added sources will lead to superior performance. The team combines four different strategies of producing added value from bonds – sector allocation, duration, term structure and security selection. The team begins with sector allocation by analyzing factors such as corporate profitability, fiscal balance of the provinces and municipalities and the historic spread relationship between the domestic sectors. The duration and term structure is determined through the team’s combined perspectives resulting from their technical and fundamental analysis. To do so, the team reviews

macroeconomic variables and uses technical interest rate analysis to draw conclusions about future economic growth and the direction of interest rates. For security selection, the team focuses on issuer-specific fundamentals, quantitative modeling of valuations and liquidity to determine securities for the portfolio. Once decisions are reached, the team implements a target price and execution strategy to build and maintain the portfolio. The Fund is continually subjected to management controls, monitoring and reviewing the portfolio characteristics on a daily basis. The result is a well-diversified conservative shorter-term bond portfolio with an average duration typically between three and five years, that is actively managed to deliver regular income and potential for capital growth. This Fund makes an excellent shorter-term bond portfolio for a more conservative investor or those with a shorter investment time horizon and can serve as a diversifying complement to an equity portfolio in order to manage risk.

Manager Commentary The Bank of Canada (BoC) left its administered lending rate unchanged over the second quarter of 2012, which marks the BoC’s longest period of rate stability since the 1950s. A statement issued by the BoC toward the end of the quarter highlighted increased concern about the global economic recovery and the downside risk to Canadian economic growth. In countries that are considered “safe havens” by investors, bond yields reached record lows in response to slowing global economic growth. The manager believes investors have grown increasingly concerned about the economic situation in Europe, as some eurozone countries took initial steps to exit the eurozone. In North America, economic growth remained positive (albeit disappointing). Corporate bonds lagged government bonds, as investors favoured securities that could provide greater capital preservation. The manager believes investors now anticipate a lower economic growth rate. Initially, investors largely believed

measures taken to stimulate growth would push yields and stock prices higher. The manager believes this enthusiasm has given way to the reality that continued deleveraging remains a drag on the global economy. The manager maintained the fund’s longer-thanbenchmark duration over the period in response to the manager’s expectation of a continued stable monetary policy, weak economic growth and ongoing geopolitical risk. The fund has an overweight position in corporate bonds, which provides yield to the portfolio. The manager continues to favour mortgage-backed securities guaranteed by the Government of Canada, as well as municipal bonds – rather than provincial bonds – because of their risk/reward profile. As at June 30, 2012

RENAISSANCE INVESTMENTS 55

FIXED INCOME FUNDS

Renaissance Short-Term Income Fund (Class A)


FIXED INCOME FUNDS

Renaissance Canadian Bond Fund (Class A) Fund Category Canadian Fixed Income

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

To obtain a high level of current income consistent with preservation of capital through investment primarily in bonds, debentures, notes, and other debt instruments of Canadian governments, financial institutions and corporations.

Growth of $10,000 20 Fund

18 16 14 12 10

Volatility Analysis

Low

Benchmark A DEX Universe Bond Index

8

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

Total Assets ($mil)

3

3

4

4

3

3

4

2

1

2

1

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

98.1

95.1

81.8

77.2

65.5

97.8

98.1

125.6

201.8

294.1

376.6

6.3 7.0 8.7

4.8 6.2 6.7

4.7 6.0 7.1

3.9 5.4 6.5

2.9 2.6 4.1

1.7 1.9 3.7

1.2 2.7 6.4

8.0 7.5 5.4

6.6 6.0 6.7

8.0 7.5 9.7

2.5 1.9 2.0

Calendar Year Returns % Best 1 Year Return

Worst 1 Year Return

21.0% 07-31-1991 to 07-31-1992

-8.0% 01-31-1994 to 01-31-1995

Fund Category Benchmark A Trailing Returns %

Fund Details Class

Load Structure

Currency

Fund Code

A A A F Prem

Back End Charge Front End Charge Low Load Charge No Sales or Redem Front End Charge

CAD CAD CAD CAD CAD

ATL1122 ATL1022 ATL2122 ATL1631 ATL1204

Inception Date MER Distribution Frequency Minimum Investment Telephone Web Site

January 1, 1973 1.49% Monthly $500

Fund Category Benchmark A Distributions as of 06-2012 Distribution $

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

0.0 0.0 0.0

2.1 1.8 2.2

2.5 1.9 2.0

8.6 7.6 9.5

6.4 5.7 7.1

7.0 6.3 7.0

5.9 5.8 7.0

5.0 5.3 6.5

Jul

Aug

Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

Investment Style Top Ten Holdings

Class F MER: 0.70% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Portfolio Analysis as of 06-30-2012

888 888 FUND www.renaissanceinvestments.ca

Notes

Sep

0.0280 0.0320 0.0292 0.0255 0.0288 0.0152 0.0418 0.0223 0.0246 0.0253 0.0318 0.0262

0.0 0.0 0.0 93.9 0.2 5.7 0.3

% Assets

Canada Hsg Tr No 1 2.05% 15-06-2017 Canada Govt 2.75% 01-06-2022 Canada Govt 4% 01-06-2041 Municipal Fin Authority 4.45% 01-06-2020 BC (Prov Of) 4.7% 18-06-2037

19.2 7.4 5.9 2.1 1.7

Canada Govt 5% 01-06-2037 Municipal Fin Authority 4.8% 01-12-2017 407 Intl Inc Mtn Cds- 5.75% 14-02-2036 Bank of Nova Scotia 6.65% 22-01-2021 Sun Life Finl Inc Med Term Nts FRN 02-03-2022

1.3 1.1 1.0 1.0 0.9

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

167 167 0 163

Credit Quality

High Medium Low NR/NA

%

55.1 23.9 10.8 10.2

Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

% Fixed Income

42.6 50.8 0.0 0.7 5.9 0.0

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

John Braive | 08-01-2005 CIBC Global Asset Management Inc

John Braive joined CIBC Asset Management in January 1983. Responsible for the management of the firm's fixed income assets for 18 years, John is a member of the Global Fixed Income team, the Investment and Strategy committees, and the Board of Directors. Other Assets Managed

Since

CIBC Canadian Bond CIBC Canadian Bond Premium Class CIBC Short-Term Income Premium CIBC Short-Term Income Renaissance Real Return Bond Renaissance High-Yield Bond

04-94 04-94 12-99 12-99 04-08 04-12

Patrick O'Toole | 12-11-2007 CIBC Global Asset Management Inc

Patrick O'Toole joined CIBC Asset Management in May 2004. He is a member of the Global Fixed Income team, operating from within the firm's Investment Management Platform. He holds a Diploma in Business Administration from Algonquin College (Ontario) and is also a CFA charterholder and a Certified General Accountant. Other Assets Managed

Since

Renaissance Real Return Bond CIBC Canadian Bond Premium Class CIBC Canadian Bond Renaissance Corp Bd Capital Yld Prem Cls Renaissance Corp Bond Capital Yield

05-04 12-07 12-07 11-09 11-09

The Fund brings together the investment expertise of CIBC Global Asset Management’s John Braive and Patrick O'Toole, along with the Fixed Income team. The team uses a bottom-up approach based on fundamental and quantitative analysis to deliver a high level of income with some potential for capital appreciation by investing in bonds of Canadian governments and companies. The team’s philosophy is that a core fixed income portfolio that combines multiple value added sources will lead to superior performance. The team combines four different strategies of producing added value from bonds – sector allocation, duration, term structure and security selection. The team begins with sector allocation; analyzing factors such as corporate profitability, fiscal balance of the provinces and municipalities and historic spread relationship between the domestic sectors. The duration and term structure is determined through the team’s combined perspectives

resulting from their technical and fundamental analysis. To do so, the team reviews macroeconomic variables and uses technical interest rate analysis to draw conclusions about future economic growth and the direction of interest rates. For security selection, the team focuses on issuer-specific fundamentals, quantitative modeling of valuations and liquidity to determine securities for the portfolio. Once decisions are reached, the team implements a target price and execution strategy to build and maintain the portfolio. The Fund is continually subjected to management controls, monitoring and reviewing the portfolio characteristics on a daily basis. The result is a well-diversified conservative bond portfolio that is actively managed to deliver regular income and potential for capital growth. This Fund makes an excellent core bond portfolio for a conservative investor and can serve as a diversifying complement to an equity portfolio in order to manage risk.

Manager Commentary The bond yields of countries considered “safe havens” reached record lows, as global growth slowed and uncertainty surrounding the potential exit of countries from the eurozone grew. Voters in Greece and France rejected government parties that called for more austerity, while Spain tried to provide financial support to its struggling banking system. Economic growth in North America remained positive, although disappointing to investors. The Bank of Canada, which had hinted at a rate hike early in the quarter, moderated its expectations for future rate increases by the end of the quarter. Strong job numbers in Canada stood out against the weak employment numbers in the U.S. It will be difficult for Canada’s economy to continue to diverge from the U.S. (Canada’s strongest trading partner), especially as emerging markets also show signs

of slowing and weigh on commodity prices. During the period, investors who believed economic growth would take hold and drive yields and stock prices higher appear to have concluded that continued deleveraging had become a drag on the global economy. The result was volatile stock markets and government bond yields that were closer to the lower end of the manager’s forecasted range. The manager maintained the fund’s near-benchmark duration over the period. The fund had an overweight position in the corporate sector and underweight positions in the Government of Canada and provincial sectors. The fund’s yield was above that of the benchmark as a result of the manager’s sector allocation and yield curve strategies. As at June 30, 2012

RENAISSANCE INVESTMENTS 57

FIXED INCOME FUNDS

Renaissance Canadian Bond Fund (Class A)


FIXED INCOME FUNDS

Renaissance Real Return Bond Fund (Class A) Fund Category Canadian Inflation Protected Fixed Income

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

To generate a regular level of interest income that is hedged against inflation by investing primarily in government, government-guaranteed and corporate inflation-linked bonds from issuers located around the world.

Growth of $10,000 20 Fund

18 16 14 12 10

Volatility Analysis

Low

Benchmark A DEX Real Return Bond Index

8

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

3

2

3

3

2

3

4

3

1

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

4.7

21.5

60.1

87.9

58.5

60.8

122.0

182.2

218.4

211.7

Fund Category Benchmark A

— 12.9 15.2

— 10.3 13.3

10.2 14.0 17.5

11.1 11.0 15.2

-3.3 -3.5 -2.9

-0.1 0.7 1.6

-0.1 -1.1 0.4

10.3 13.0 14.5

7.9 8.4 11.2

13.9 14.9 18.3

1.8 0.9 1.6

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

-1.2 -1.3 -1.4

3.0 2.1 2.7

1.8 0.9 1.6

11.7 11.9 14.9

9.8 10.5 13.3

9.4 10.4 13.0

7.1 7.8 9.9

5.9 — —

Total Assets ($mil) Calendar Year Returns %

Best 1 Year Return

Worst 1 Year Return

18.2% 01-31-2011 to 01-31-2012

-5.0% 08-31-2006 to 08-31-2007

Fund Details Class

Load Structure

Currency

Fund Code

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL291 ATL251 ATL267 ATL010

Inception Date MER Distribution Frequency Minimum Investment Telephone Web Site

June 2, 2003 1.67% Quarterly $500

Fund Category Benchmark A Distributions as of 06-2012

Jul

Aug

Sep

Oct

Distribution $

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

Investment Style

Top Ten Holdings

Notes

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

Dec

Jan

Feb

Mar

Apr

— 0.1195

May

Jun

— 0.1777

Portfolio Analysis as of 06-30-2012 Composition

888 888 FUND www.renaissanceinvestments.ca

Class F MER: 0.89%

Nov

Canada Govt 4.25% 01-12-2021 Canada Govt 4.25% 01-12-2026 Canada Govt 3% 01-12-2036 Canada Govt 2% 01-12-2041 US Treasury Bond 15-02-2041

0.0 0.0 0.0 92.1 0.0 6.2 1.6

% Assets

27.4 13.6 10.6 9.4 7.8

US Treasury Bond 2.5% 15-01-2029 Quebec Prov Cda 3.3% 01-12-2013 Canada Govt 1.5% 01-12-2044 US Treasury Note 1.25% 15-07-2020 Teranet Hldgs 3.27% 01-12-2031

6.2 4.2 3.2 2.1 1.8

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

17 17 0 15

Credit Quality

High Medium Low NR/NA

%

91.5 1.8 0.0 6.7

Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

% Fixed Income

91.5 2.2 0.0 0.0 6.3 0.0

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

Patrick O'Toole | 05-01-2004 CIBC Global Asset Management Inc

Patrick O'Toole joined CIBC Asset Management in May 2004. He is a member of the Global Fixed Income team, operating from within the firm's Investment Management Platform. He holds a Diploma in Business Administration from Algonquin College (Ontario) and is also a CFA charterholder and a Certified General Accountant. Other Assets Managed

Since

CIBC Canadian Bond Renaissance Canadian Bond CIBC Canadian Bond Premium Class Renaissance Canadian Bond Premium Class Renaissance Corp Bd Capital Yld Prem Cls Renaissance Corp Bond Capital Yield

12-07 12-07 12-07 12-07 11-09 11-09

John Braive | 04-09-2008

The Fund benefits from the expertise of John Braive and Patrick O’Toole, along with the Real Return Bond Committee from CIBC Global Asset Management Inc., who follow a bottom-up approach to offer some protection for investors against the reduction in purchasing power caused by inflation. The team follows a bottom-up approach based on fundamental and quantitative analysis. The team begins with a fundamental valuation of the level of expected interest rates by focusing on the outlook for inflation, economic growth and fiscal and monetary policy. In addition, the team monitors technical indicators to determine the relative value of the market versus the expected outlook. To add further value to the expected performance of the real return bonds, the team analyzes the relative attractiveness of both the foreign inflation-

linked bond markets (particularly the U.S. market), and the provincial bond market versus the Government of Canada bond market. The Fund’s foreign currencies exposure, if any, is typically hedged to manage currency risk. As part of the portfolio management process, the team meets on a regular basis to re-assess the market outlook and to uncover strategies to help maximize performance. The result is a well-diversified portfolio of primarily real return bonds, which seeks to provide a regular level of interest income that offers some protection against inflation. This Fund is an excellent conservative income solution. The lower correlation of this asset class with other types of fixed income makes it an excellent diversifier while also offering protection of purchasing power against inflation.

CIBC Global Asset Management Inc

John Braive joined CIBC Asset Management in January 1983. Responsible for the management of the firm's fixed income assets for 18 years, John is a member of the Global Fixed Income team, the Investment and Strategy committees, and the Board of Directors. Other Assets Managed

Since

CIBC Canadian Bond CIBC Canadian Bond Premium Class CIBC Short-Term Income CIBC Short-Term Income Premium Renaissance Canadian Bond Renaissance Canadian Bond Premium Class Renaissance High-Yield Bond

04-94 04-94 12-99 12-99 08-05 08-05 04-12

Manager Commentary The bond yields of countries considered “safe havens” reached record lows during the period, as global growth slowed and uncertainty surrounding the potential exit of countries from the eurozone grew. Economic growth in North America remained positive, although disappointing to investors. The Bank of Canada, which had hinted at a rate hike early in the quarter, moderated its expectations for future rate increases by the end of the quarter. Strong job numbers in Canada stood out in contrast to weak employment numbers in the U.S. It will be difficult for Canada’s economy to continue to diverge from the U.S. (Canada’s strongest trading partner), especially as emerging markets also show signs of slowing and weigh on commodity prices. During the period, investors who believed economic growth would take hold and drive yields and stock prices

higher appear to have concluded that continued deleveraging had become a drag on the global economy. The result was volatile stock markets and government bond yields that were closer to the lower end of the manager’s forecasted range. The manager expects inflation to move lower in the coming quarters, reducing investors’ appetite for inflation-linked bonds. The manager also expects nominal bond yields to move slightly higher, increasing the likelihood that real return bond yields may rise. At the end of the period, the fund had overweight positions in cash and nominal bonds, an underweight position in U. S. Treasury Inflation-Protected Securities, while the fund’s duration was shorter than its benchmark. As at June 30, 2012

RENAISSANCE INVESTMENTS 59

FIXED INCOME FUNDS

Renaissance Real Return Bond Fund (Class A)


FIXED INCOME FUNDS

Renaissance Corporate Bond Capital Yield Fund (Class A) Fund Category Canadian Fixed Income

Morningstar Rating N/A

Investment Objective

Performance as of 06-30-2012

Seeks to generate tax-efficient returns, primarily through exposure to a corporate bond fund that will invest primarily in bonds, debentures, notes, and other debt instruments of Canadian issuers (the Reference Securities ). The Fund may, however, also invest directly in the Reference Securities where the Fund considers it would be beneficial to unitholders to do so.

Growth of $10,000 15 14 13 12 11 10 9 Performance Quartile (within category over calendar year)

Volatility Analysis

Medium

Low

Fund

Benchmark A DEX Corporate Bond Index

High

Total Assets ($mil) Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

6.6% 03-31-2011 to 03-31-2012

3.0% 10-31-2010 to 10-31-2011

Fund Details Class

Load Structure

Currency

Fund Code

A A A Prem F

Back End Charge Front End Charge Low Load Charge Front End Charge No Sales or Redem

CAD CAD CAD CAD CAD

ATL1102 ATL1002 ATL2102 ATL1202 ATL016

Inception Date MER Distribution Frequency Minimum Investment Telephone Web Site

2 2002

2003

2004

2005

2006

2007

2008

2009

68.9

— 7.0 8.6

— 6.2 8.5

— 6.0 7.3

— 5.4 6.0

— 2.6 4.4

— 1.9 1.8

— 2.7 0.2

— 7.5 16.3

Fund Category Benchmark A Trailing Returns %

YTD

Fund Category Benchmark A

5.4 7.5 8.2

3.0 1.9 3.2

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

0.1 0.0 0.0

1.2 1.8 1.8

3.0 1.9 3.2

6.4 7.6 8.8

5.2 5.7 7.1

— 6.3 8.2

— 5.8 7.5

5.2 — —

Distributions as of 06-2012 Distribution $

6.1 6.0 7.3

3 Mth

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

0.0250 0.0250 0.0250 0.0250 0.0250 0.1734 0.0260 0.0260 0.0260 0.0260 0.0260 0.0260

Portfolio Analysis as of 06-30-2012 % Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca

87.2 0.0 0.0 11.0 0.0 1.8 0.0

Investment Style Top Ten Holdings

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

2011

930.9 1465.9 2029.6

1 Mth

November 18, 2009 1.63% Monthly $500

Notes

1

Calendar Year Returns %

Composition

Class F MER: 0.78%

2010

4

% Assets

Suncor Energy Inc Nexen, Inc. Sun Life Financial Inc Power Corporation Of Canada Canadian National Railway Co

7.1 7.0 6.8 5.7 5.4

Silver Wheaton Corporation Brookfield Office Properties Inc MEG Energy Corp First Quantum Minerals Ltd. Imperial Oil Ltd

5.1 4.1 4.0 4.0 3.9

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

135 135 22 110

Credit Quality

High Medium Low NR/NA

%

16.0 69.7 0.0 14.3

Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

% Fixed Income

0.0 81.0 0.0 5.1 13.7 0.1

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

Jeffrey Waldman | 11-20-2009 CIBC Global Asset Management Inc

As First Vice-President, Fixed Income, CIBC Global Asset Management Inc., Jeffrey Waldman joined CIBC Global in 1998. Prior to that Mr. Waldman held position of Investment Planning Assistant and Fixed Income Consultant at Confederation Life Insurance from 1987 to 1993; fixed Income portfolio manager and Vice-President of Canadian bonds at ING Investment Management from 1993 to 1998. Other Assets Managed

Since

Renaissance Short-Term Income Renaissance Short-Term Income Prm Cl CIBC Short-Term Income Premium CIBC Short-Term Income

10-99 10-99 12-07 12-07

Patrick O'Toole | 11-20-2009 CIBC Global Asset Management Inc

Patrick O'Toole joined CIBC Asset Management in May 2004. He is a member of the Global Fixed Income team, operating from within the firm's Investment Management Platform. He holds a Diploma in Business Administration from Algonquin College (Ontario) and is also a CFA charterholder and a Certified General Accountant. Other Assets Managed

Since

Renaissance Real Return Bond CIBC Canadian Bond Premium Class Renaissance Canadian Bond Premium Class CIBC Canadian Bond Renaissance Canadian Bond

05-04 12-07 12-07 12-07 12-07

The Renaissance Corporate Bond Capital Yield Fund provides exposure to a corporate bond fund, known as the Reference Fund. This Fund benefits from the research-driven approach of its highly experienced and stable portfolio management team. CIBC Global Asset Management’s Fixed Income Team starts with a focused universe of corporate bonds that have passed rigorous, internal credit analysis. The team then selects only the attractively priced, higher-yielding bonds which fit within their favourable-industry outlook. The fixed income team’s philosophy is to investigate before investing. In that light, a dedicated credit analysis team conducts rigorous research to identify suitable issuers for the buy list and the Credit Committee provides oversight to the proprietary risk measurement. The fixed income team combines four steps to delivering a high quality corporate bond portfolio: 1. Industry Analysis: An outlook is developed for the Canadian economy, global trends and industry sectors by exchanging macroeconomic perspectives with CGAM’s Asset Allocation and Quantitative team. The result is the identification of sectors that offer relative improvement for credit situations and the avoidance of sectors whose performance may deteriorate. 2. Company Analysis: The credit team actively manages a list of approved issuers by evaluating the

financial risk of each company and developing a deep understanding of each business and its competitive standing through in-depth analysis and face-to-face management meetings. Security Selection: From the credit team’s 3. approved issuer list, the fixed income team identifies value opportunities by analyzing factors including the option-adjusted spreads, comparable securities, similarly rated entities and historical valuations. Portfolio Construction: The team ensures sector, 4. issuer and credit quality diversification is applied, and measures holistic portfolio risk through a proprietary sector spread analysis. For further risk management, the Fund is continually subjected to management controls, monitoring and reviewing of the portfolio characteristics on a daily basis. The result is a diversified, high quality portfolio of corporate bonds that provide tax-efficient high yields while mitigating risk. The tax-efficient structure, which delivers distributions in the form of capital gains, the reliable distribution and the conservative approach to corporate bonds, makes this Fund an excellent diversifier to a fixed income or equity portfolio outside of a registered plan.

Manager Commentary The bond yields of countries considered “safe havens” reached record lows during the period, as global growth slowed and uncertainty surrounding the potential exit of countries from the eurozone grew. Voters in Greece and France rejected government parties that called for more austerity, while Spain tried to provide financial support to its struggling banking system. Economic growth in North America remained positive, although disappointing to investors. The Bank of Canada, which had hinted at a rate hike early in the quarter, moderated its expectations for future rate increases by the end of the quarter. Corporate bonds lagged the performance of government bonds. During the period, investors who believed economic growth would take hold and drive yields and stock prices higher appear to have concluded that continued deleveraging had become a drag on the global economy.

The manager maintained the fund’s shorter-thanbenchmark duration, as government bond yields remained near the lower end of the manager’s expected trading range. The fund’s mix of investment grade and high yield bonds was maintained at neutral to the benchmark, as the manager expects yields for high yield bonds to rise somewhat. The manager continues to believe corporate bond spreads will remain attractive in the medium and longer term, and plans to keep the fund fully invested in corporate bonds despite the ability to invest up to 20 percent of the fund’s assets in government bonds. The manager believes government bonds will be more susceptible to rising interest rates as the economy recovers. As at June 30, 2012

RENAISSANCE INVESTMENTS 61

FIXED INCOME FUNDS

Renaissance Corporate Bond Capital Yield Fund (Class A)


FIXED INCOME FUNDS

Renaissance Corporate Bond Capital Yield Fund - Premium Class Fund Category Canadian Fixed Income

Morningstar Rating N/A

Investment Objective

Performance as of 06-30-2012

Seeks to generate tax-efficient returns, primarily through exposure to a corporate bond fund that will invest primarily in bonds, debentures, notes, and other debt instruments of Canadian issuers (the Reference Securities ). The Fund may, however, also invest directly in the Reference Securities where the Fund considers it would be beneficial to unitholders to do so.

Growth of $10,000 15 14 13 12 11 10 9 Performance Quartile (within category over calendar year)

Volatility Analysis

Medium

Low

Fund

Benchmark A DEX Corporate Bond Index

High

Total Assets ($mil) Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

7.4% 03-31-2011 to 03-31-2012

3.8% 10-31-2010 to 10-31-2011

Fund Details Class

Load Structure

Currency

Fund Code

Prem A A A F

Front End Charge Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD CAD

ATL1202 ATL1102 ATL1002 ATL2102 ATL016

Inception Date MER Distribution Frequency Minimum Investment Telephone Web Site

1 2002

2003

2004

2005

2006

2007

2008

2009

68.9

— 7.0 8.6

— 6.2 8.5

— 6.0 7.3

— 5.4 6.0

— 2.6 4.4

— 1.9 1.8

— 2.7 0.2

— 7.5 16.3

Fund Category Benchmark A Trailing Returns %

2011

YTD

930.9 1465.9 2029.6

Fund Category Benchmark A

6.2 7.5 8.2

3.3 1.9 3.2

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

0.1 0.0 0.0

1.4 1.8 1.8

3.3 1.9 3.2

7.1 7.6 8.8

6.0 5.7 7.1

— 6.3 8.2

— 5.8 7.5

5.8 — —

Distributions as of 06-2012 Distribution $

6.7 6.0 7.3

1 Mth

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

0.0250 0.0250 0.0250 0.0250 0.0250 0.2951 0.0260 0.0260 0.0260 0.0260 0.0260 0.0260

Portfolio Analysis as of 06-30-2012

November 18, 2009 0.95% Monthly $100,000

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca

87.2 0.0 0.0 11.0 0.0 1.8 0.0

Investment Style Top Ten Holdings

Notes

1

Calendar Year Returns %

Composition

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

2010

4

% Assets

Suncor Energy Inc Nexen, Inc. Sun Life Financial Inc Power Corporation Of Canada Canadian National Railway Co

7.1 7.0 6.8 5.7 5.4

Silver Wheaton Corporation Brookfield Office Properties Inc MEG Energy Corp First Quantum Minerals Ltd. Imperial Oil Ltd

5.1 4.1 4.0 4.0 3.9

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

135 135 22 110

Credit Quality

High Medium Low NR/NA

%

16.0 69.7 0.0 14.3

Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

% Fixed Income

0.0 81.0 0.0 5.1 13.7 0.1

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

Jeffrey Waldman | 11-20-2009 CIBC Global Asset Management Inc

As First Vice-President, Fixed Income, CIBC Global Asset Management Inc., Jeffrey Waldman joined CIBC Global in 1998. Prior to that Mr. Waldman held position of Investment Planning Assistant and Fixed Income Consultant at Confederation Life Insurance from 1987 to 1993; fixed Income portfolio manager and Vice-President of Canadian bonds at ING Investment Management from 1993 to 1998. Other Assets Managed

Since

Renaissance Short-Term Income Renaissance Short-Term Income Prm Cl CIBC Short-Term Income Premium CIBC Short-Term Income

10-99 10-99 12-07 12-07

Patrick O'Toole | 11-20-2009 CIBC Global Asset Management Inc

Patrick O'Toole joined CIBC Asset Management in May 2004. He is a member of the Global Fixed Income team, operating from within the firm's Investment Management Platform. He holds a Diploma in Business Administration from Algonquin College (Ontario) and is also a CFA charterholder and a Certified General Accountant. Other Assets Managed

Since

Renaissance Real Return Bond CIBC Canadian Bond Premium Class Renaissance Canadian Bond Premium Class CIBC Canadian Bond Renaissance Canadian Bond

05-04 12-07 12-07 12-07 12-07

The Renaissance Corporate Bond Capital Yield Fund provides exposure to a corporate bond fund, known as the Reference Fund. This Fund benefits from the research-driven approach of its highly experienced and stable portfolio management team. CIBC Global Asset Management’s Fixed Income Team starts with a focused universe of corporate bonds that have passed rigorous, internal credit analysis. The team then selects only the attractively priced, higher-yielding bonds which fit within their favourable-industry outlook. The fixed income team’s philosophy is to investigate before investing. In that light, a dedicated credit analysis team conducts rigorous research to identify suitable issuers for the buy list and the Credit Committee provides oversight to the proprietary risk measurement. The fixed income team combines four steps to delivering a high quality corporate bond portfolio: 1. Industry Analysis: An outlook is developed for the Canadian economy, global trends and industry sectors by exchanging macroeconomic perspectives with CGAM’s Asset Allocation and Quantitative team. The result is the identification of sectors that offer relative improvement for credit situations and the avoidance of sectors whose performance may deteriorate. 2. Company Analysis: The credit team actively manages a list of approved issuers by evaluating the

financial risk of each company and developing a deep understanding of each business and its competitive standing through in-depth analysis and face-to-face management meetings. Security Selection: From the credit team’s 3. approved issuer list, the fixed income team identifies value opportunities by analyzing factors including the option-adjusted spreads, comparable securities, similarly rated entities and historical valuations. Portfolio Construction: The team ensures sector, 4. issuer and credit quality diversification is applied, and measures holistic portfolio risk through a proprietary sector spread analysis. For further risk management, the Fund is continually subjected to management controls, monitoring and reviewing of the portfolio characteristics on a daily basis. The result is a diversified, high quality portfolio of corporate bonds that provide tax-efficient high yields while mitigating risk. The tax-efficient structure, which delivers distributions in the form of capital gains, the reliable distribution and the conservative approach to corporate bonds, makes this Fund an excellent diversifier to a fixed income or equity portfolio outside of a registered plan.

Manager Commentary The bond yields of countries considered “safe havens” reached record lows during the period, as global growth slowed and uncertainty surrounding the potential exit of countries from the eurozone grew. Voters in Greece and France rejected government parties that called for more austerity, while Spain tried to provide financial support to its struggling banking system. Economic growth in North America remained positive, although disappointing to investors. The Bank of Canada, which had hinted at a rate hike early in the quarter, moderated its expectations for future rate increases by the end of the quarter. Corporate bonds lagged the performance of government bonds. During the period, investors who believed economic growth would take hold and drive yields and stock prices higher appear to have concluded that continued deleveraging had become a drag on the global economy.

The manager maintained the fund’s shorter-thanbenchmark duration, as government bond yields remained near the lower end of the manager’s expected trading range. The fund’s mix of investment grade and high yield bonds was maintained at neutral to the benchmark, as the manager expects yields for high yield bonds to rise somewhat. The manager continues to believe corporate bond spreads will remain attractive in the medium and longer term, and plans to keep the fund fully invested in corporate bonds despite the ability to invest up to 20 percent of the fund’s assets in government bonds. The manager believes government bonds will be more susceptible to rising interest rates as the economy recovers. As at June 30, 2012

RENAISSANCE INVESTMENTS 63

FIXED INCOME FUNDS

Renaissance Corporate Bond Capital Yield Fund - Premium Class


FIXED INCOME FUNDS

Renaissance High-Yield Bond Fund (Class A) Fund Category High Yield Fixed Income

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

To generate a high level of current income, primarily through investment in high-yield corporate bonds from issuers around the world and, where consistent with this objective, the Fund will also seek capital appreciation.

Growth of $10,000 20 Fund

Benchmark A DEX High Yield Index

18 16 14 12

Volatility Analysis

10 8

Low

Medium

High

Performance Quartile (within category over calendar year)

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Total Assets ($mil)

Best 1 Year Return

Worst 1 Year Return

Calendar Year Returns %

36.8% 01-31-2009 to 01-31-2010

-22.8% 01-31-2008 to 01-31-2009

Fund Details Class

Load Structure

Currency

Fund Code

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL823 ATL908 ATL667 ATL015

Inception Date MER Distribution Frequency Minimum Investment Telephone Web Site

1

1

3

2

3

4

3

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

124.7

108.5

115.0

199.9

150.0

309.9

397.5

428.9

484.3

Fund Category Benchmark A

3.7 3.3 12.8

18.3 13.1 14.8

10.6 7.6 9.6

-2.4 1.0 3.0

9.4 7.7 9.4

2.3 -1.3 5.1

-22.6 -21.3 4.2

31.9 33.3 11.4

9.5 10.6 15.1

1.5 3.1 -2.3

5.2 4.6 6.5

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

0.8 1.2 -0.5

1.1 0.9 1.4

5.2 4.6 6.5

4.2 4.4 0.0

6.0 7.0 5.4

10.3 10.8 10.8

3.1 4.2 7.3

5.9 5.5 8.4

Fund Category Benchmark A Distributions as of 06-2012

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

0.0333 0.0512 0.0518 0.0383 0.0555 0.0257 0.0669 0.0413 0.0472 0.0384 0.0522 0.0401

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other Top Ten Holdings

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

1

121.3

Investment Style

Notes

1

2002

888 888 FUND www.renaissanceinvestments.ca

Class F MER: 1.11%

4

113.7

Distribution $

September 23, 1994 1.95% Monthly $500

3

0.0 0.0 0.0 96.1 0.0 3.3 0.6

% Assets

Seven Seas Cruises S De 9.125% 15-05-2019 Reynolds Grp Issuer 144A 9% 15-04-2019 Lyondellbasell Inds Nv 144A 5% 15-04-2019 Cdn Satellite Radio Hldg 9.75% 21-06-2018 Ford Cr Cda 4.875% 08-02-2017

2.7 2.3 2.2 2.2 2.2

Mercer Intl 9.5% 01-12-2017 Radnet 10.375% 01-04-2018 Cara Operations 9.125% 01-12-2015 Roadhouse Financing 10.75% 15-10-2017 Corus Entrtnmt 7.25% 10-02-2017

2.2 2.1 2.1 2.1 2.0

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

109 109 0 107

Credit Quality

High Medium Low NR/NA

%

0.0 2.2 85.5 12.3

Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

% Fixed Income

0.0 96.7 0.0 0.0 3.3 0.0

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

Bryce Eng | 12-13-2007 CIBC Global Asset Management Inc

Joined CIBC Global Asset Management Inc.'s predecessor firm in March 1997. Bryce is a member of the Global Fixed Income team. Bachelor of Commerce from the University of Toronto. Bryce is also a CFA charterholder. Fund Accountant at the Toronto-Dominion Bank (Toronto) from 1995 to 1997; Fixed Income Analyst at The Financial Post Datagroup (Toronto) from 1991 to 1993. John Braive | 04-04-2012 CIBC Global Asset Management Inc

John Braive joined CIBC Asset Management in January 1983. Responsible for the management of the firm's fixed income assets for 18 years, John is a member of the Global Fixed Income team, the Investment and Strategy committees, and the Board of Directors. Other Assets Managed

Since

CIBC Canadian Bond CIBC Canadian Bond Premium Class CIBC Short-Term Income Premium CIBC Short-Term Income Renaissance Canadian Bond Renaissance Canadian Bond Premium Class Renaissance Real Return Bond

04-94 04-94 12-99 12-99 08-05 08-05 04-08

The Fund benefits from the expertise of Bryce Eng and Mark Kanar along the High BondYield teamBond from team CIBC from Global Eng along withYield the High Bryce with Asset Management, who focus their value Asset Management, whobottomup focus their bottomCIBC Global investment style primarily towards Canadian, but up value investment style primarily towards Canadian, also foreign, corporate bondbond issuers thatthat havehave higher foreign, corporate issuers higher but also yield opportunities. The High Yield Bond team’s approach follows a bottomup value philosophy, seeking to add value through all market cycles. Philosophically, the team embraces the high yield market’s inherent volatility due to the opportunity the volatility creates for their fundamental value style. The team makes an intensive fundamental evaluation of each company to assess its financial health and risk of default. Through this process, they identify the most attractive individual bonds with strong prospects for consistent income and growth, which can be purchased at a discount to their intrinsic value. The team’s fundamental value process is a combination of industry and bottom-up credit analysis to identify

securities that are undervalued, and those that should be sold to reinvest in better opportunities. The process includes an in-depth understanding of each company and its environment by analyzing 1) competitive threats; 2) terms and conditions of each bond; 3) pricing alternatives from companies within the same sector and from different industries with comparable credit ratings. With a thorough understanding of each bond, the manager moves opportunistically between bonds to capture the best scenario for delivering yield. Risk is managed through analysis of each security’s leverage, liquidity and interest coverage, and the Fund may hedge foreign exposure back to the Canadian dollar. The result is a well-diversified portfolio of higheryielding securities to deliver a higher level of current income with some potential for capital appreciation. This Fund is an excellent addition to a diversified portfolio seeking a higher level of income from its bond allocation.

Manager Commentary High yield bonds started the period with positive returns, even as U.S. economic data disappointed and European sovereign debt and banking issues grew. The Greek election did not result in the formation of a new government, resulting in a second round of elections late in the period. By the end of the period, volatility in the high yield bond market had increased, an investor “flight to quality” had resumed and the gains achieved earlier in the year were erased. High yield risk premiums widened 96 basis points (bps) to 685 bps above U.S. Treasuries. This level is still above longer-term averages. Default rate forecasts for 2012 remain low, at approximately two to three percent.

New issuance of high yield debt slowed significantly over the period, and a number of issues were cancelled as a result of the deteriorating and uncertain market conditions. Fund flows were negative, although they are still positive year-to-date. The manager added Inmet Mining Corporation (a copper miner) and MEG Energy Corp. (an oil sands producer) to the portfolio during the period, and reduced the fund’s position in CCC Holding Company Inc. As at June 30, 2012

RENAISSANCE INVESTMENTS 65

FIXED INCOME FUNDS

Renaissance High-Yield Bond Fund (Class A)


FIXED INCOME FUNDS

Renaissance Global Bond Fund (Class A) Fund Category Global Fixed Income

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

To preserve capital and to provide income and long-term growth primarily through investment in debt securities denominated in foreign currencies issued by Canadian or non-Canadian governments, corporations, and financial institutions.

Growth of $10,000 15 Fund

14 13 12 11 10

Volatility Analysis

Low

Benchmark A Citigroup World Government Bond Index

9

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

1

2

4

4

2

4

3

2

2

1

2

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

88.9

76.2

79.1

30.6

19.0

14.4

11.7

20.8

46.3

76.8

101.9

Fund Category Benchmark A

18.5 13.9 18.3

-2.7 -2.4 -6.0

-2.1 1.6 2.3

-10.7 -6.5 -9.2

3.2 3.0 5.7

-7.6 -3.2 -5.9

9.9 17.3 38.7

0.5 -3.0 -12.9

4.6 2.7 -0.3

8.7 4.1 9.0

3.8 2.8 0.5

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

1.2 0.5 -1.5

3.1 1.7 2.9

3.8 2.8 0.5

12.0 6.2 8.5

6.5 3.7 4.3

5.1 2.6 0.9

5.4 5.0 6.4

1.7 2.5 2.6

Total Assets ($mil) Calendar Year Returns %

Best 1 Year Return

Worst 1 Year Return

18.5% 12-31-2001 to 12-31-2002

-16.1% 04-30-2005 to 04-30-2006

Fund Details Class

Load Structure

Currency

Fund Code

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL1872 ATL1028 ATL2872 ATL1646

Inception Date MER Distribution Frequency Minimum Investment Telephone Web Site

October 21, 1992 2.01% Quarterly $500

Fund Category Benchmark A Distributions as of 06-2012

Jul

Distribution $

Aug

Sep

Oct

— 0.0265

Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

Investment Style

Top Ten Holdings

US Treasury Note 0.5% 15-11-2013 United Kingdom (Govt Of) 2.25% 07-03-2014 Mexico(Utd Mex St) 8.5% 31-05-2029 US Treasury Bond 4.25% 15-11-2040 New Sth Wales Tsy 6% 01-04-2016 Notes

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

Dec

Jan

— 0.0165

Feb

Mar

Apr

— 0.0219

May

Jun

— 0.0212

Portfolio Analysis as of 06-30-2012

888 888 FUND www.renaissanceinvestments.ca

Class F MER: 1.23%

Nov

0.0 0.0 0.0 86.6 0.0 11.6 1.8

% Assets

11.9 7.3 6.3 5.4 5.0

Poland(Rep Of) 5.75% 23-09-2022 Malaysia 5.094% 30-04-2014 Queensland Tsy Cp 6.25% 21-02-2020 Korea(Republic Of) 5.75% 10-09-2018 Sth Africa(Rep Of) 6.75% 31-03-2021

4.6 4.0 3.1 3.0 2.5

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

77 77 0 75

Credit Quality

High Medium Low NR/NA

%

41.7 42.0 4.6 11.8

Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

% Fixed Income

67.9 19.1 0.0 1.2 11.8 0.0

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios Stephen S. Smith | 11-01-2006 Brandywine Global Investment Mgmt, LLC

Stephen Smith is Managing Director and co-lead Portfolio Manager for Brandywine’s Fixed Income and Balanced portfolios and contributes his extensive knowledge of global markets and currencies to support the research efforts for the International/Global Value Equity strategies. Prior to joining Brandywine in 1991, he was Managing Director of Taxable Fixed Income (1988-1991) at Mitchell Hutchins Asset Management, Inc.; Senior Vice President of Taxable Fixed Income (1984-1988) at Provident Capital Management, Inc. He holds a B.S. in Economics and Business Administration from Xavier University.

Investment Management Approach The Fund benefits from the global fixed income expertise of Brandywine Global Investment Management, who manage the Fund with a top-down, value approach with a focus on real yield, to preserve capital, generate principal growth and earn interest income. Since their founding in 1986, Brandywine Global has pursued a value approach to investing, with a belief that regardless of asset class or region, value investing can provide excellent returns over the long term. By applying a top-down, value-driven process, Brandywine Global invests in bonds offering the highest real (inflationadjusted) yields, while considering currency valuation, inflation, monetary trends, political risks, the business cycle and liquidity measures. Efficient duration

management and country rotation (driven primarily by currency considerations) add incremental value. Investments are typically concentrated in 8-16 countries deemed to have the best total return potential. Subsequently, risk is managed by investing in undervalued securities with the potential for higher returns. The result is a globally diversified portfolio of bonds including sovereign debt and currencies of countries from around the world. This Fund makes an excellent core global bond portfolio and can serve as a diversifying complement to an equity portfolio and/or a Canadian bond portfolio in order to manage risk.

David F. Hoffman | 11-01-2006 Brandywine Global Investment Mgmt, LLC

David Hoffman is a Managing Director and co-lead Portfolio Manager for Brandywine's Global Fixed Income and related strategies. He has been employed at Brandywine Global since 1995. Prior to joining the firm, David was President of Hoffman Capital, a global financial futures investment firm (1991-1995); Head of Fixed Income Investments at Columbus Circle Investors (1983-1990) and Senior Vice President and Portfolio Manager at INA Capital Management (1979-1982). David is a CFA charterholder and earned a B.A. in Art History from Williams College.

Manager Commentary European sovereign debt issues and a weaker-thanexpected U.S. jobs report drove positive performance across most sovereign debt markets over the period. Core eurozone markets like Germany and France performed well. Spain and Italy’s sovereign debt markets posted negative returns, as investors were concerned about intensifying weakness in Spain’s banking sector and the prospects of a disorderly Greek exit from the euro currency. The U.K. and other non-euro peripheral European markets performed well, while Japanese sovereign debt underperformed its high-quality counterparts after Moody’s downgraded that country’s credit rating. Fear of a potential economic “hard landing” in China added to global investor risk aversion, and heavily impacted returns across most Southeast Asian sovereign debt markets. Developed market currencies, excluding the Japanese yen and U.S. dollar, fell against the Canadian dollar. The euro continued to lose ground after achieving gains

earlier in the year. Eurozone concerns also began to weigh on less-liquid European currencies like the Polish zloty. Despite the U.K.’s central bank expressing support for increased quantitative easing programs, the British pound continued to outperform the euro as a result of its status as a regional safe haven. The Turkish lira was one of the fund’s strongest emerging-market currencies as a result of the continued efforts of Turkey’s central bank to control inflation with high interest rates and a strong-lira policy. As a result of the drop in long-term Treasury yields, investment grade corporate bonds produced modestly positive returns (despite a widening of credit spreads). Financial debt underperformed the broader corporate market. As at June 30, 2012

RENAISSANCE INVESTMENTS 67

FIXED INCOME FUNDS

Renaissance Global Bond Fund (Class A)


BALANCED FUNDS

Renaissance Canadian Balanced Fund (Class A) Fund Category Canadian Equity Balanced

Morningstar Rating QQ

Investment Objective

Performance as of 06-30-2012

To achieve long-term investment return through a combination of income and capital growth by investing primarily in a diversified portfolio of Canadian equity securities, investment grade bonds, and money market instruments.

Growth of $10,000 20 Fund

18 16 14 12 10

Volatility Analysis

Low

Benchmark A Blended Benchmark

8

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

2

3

3

3

4

3

1

4

3

3

3

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

180.3

225.9

316.0

420.5

534.5

486.0

341.7

345.8

667.1

528.4

473.9

Fund Category Benchmark A

1.4 -4.3 -8.0

13.0 13.3 17.1

8.1 10.1 10.8

13.0 12.3 15.3

7.6 10.4 13.9

-0.7 0.3 4.6

-15.8 -22.3 -20.7

14.2 25.2 21.1

10.4 9.1 12.3

-4.8 -2.4 -2.1

0.5 1.3 1.2

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

1.0 1.2 1.3

-4.7 -2.8 -2.7

0.5 1.3 1.2

-5.7 -2.3 -2.2

3.4 5.0 6.3

4.6 6.2 7.1

-0.5 0.5 1.4

4.0 4.8 6.3

Total Assets ($mil) Calendar Year Returns %

Best 1 Year Return

Worst 1 Year Return

21.5% 03-31-2003 to 03-31-2004

-18.5% 02-28-2008 to 02-28-2009

Fund Details Class

Load Structure

Currency

Fund Code

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL507 ATL508 ATL517 ATL019

Inception Date MER Distribution Frequency Minimum Investment Telephone Web Site

Fund Category Benchmark A

Portfolio Analysis as of 06-30-2012 Composition

March 10, 1999 2.31% Quarterly $500

888 888 FUND www.renaissanceinvestments.ca

Investment Style

Notes Class F MER: 0.92% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details. Benchmark Blend: 30% DEX Bond Universe Index / 50% S&P/TSX Composite Index / 20% MSCI World Index

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other Top Ten Holdings

48.9 7.2 13.4 23.2 0.1 7.2 0.0

% Assets

Canada Hsg Tr No 1 2.05% 15-06-2017 Toronto-Dominion Bank Royal Bank of Canada Bank of Nova Scotia CIBC

4.5 3.1 2.8 2.4 2.2

Suncor Energy Inc Dow Jones Euro Stoxx 50 Index Future United States S&P 500 Mini Index Fut Bank of Montreal Canada Govt 2.75% 01-06-2022

2.1 -2.0 -1.9 1.8 1.8

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

336 1,222 1,035 161

Market Cap

Large Medium Small

%

80.4 19.4 0.1

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

Credit Quality

High Medium Low NR/NA

%

43.3 20.3 9.0 27.4 % Equity

2.6 20.3 29.5 12.5 7.2 4.7 6.2 7.4 2.6 7.0 0.0 % Fixed Income

33.0 42.7 0.0 0.6 23.7 0.0

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


BALANCED FUNDS

Renaissance Canadian Balanced Fund (Class A) Investment Management Overview Manager Bios

Investment Management Approach

Luc de la Durantaye | 10-27-2009 CIBC Global Asset Management Inc

Luc de la Durantaye joined CIBC Global Asset Management Inc. in December 2002. Mr. de la Durantaye is leader of the Global Asset Allocation team, operating from within the firm's Investment Management Platform. Other Assets Managed

Since

CIBC Global Equity CIBC Balanced Renaissance Optimal Infl Opps Port Cl A

01-03 10-09 09-11

Colum McKinley | 06-01-2010 CIBC Global Asset Management Inc

Colum McKinley joined CIBC Global Asset Management in May 2010, assuming a lead role as Portfolio Manager on the Investment Management Team. He holds a Bachelor of Arts in Economics from the University of Western Ontario (London); and is a CFA charterholder. Prior to joining CIBC Global Asset Management, he was a Portfolio Manager at Sionna Investment Managers, 2005 to 2010, and Vice President and Director, Portfolio Manager at TD Asset Management (Toronto), 1999 to 2005. Other Assets Managed

Since

Renaissance Canadian Core Value CIBC Canadian Equity Value CIBC Balanced

06-10 06-10 07-11

Suzann Pennington | 08-02-2011 CIBC Global Asset Management Inc

Suzann Pennington is Head of Canadian Equities at CIBC Global Asset Management Inc. Prior to joining CGAM, she was Senior Vice-President, Investments and Team Lead of the Saxon Funds at Mackenzie Financial Corp. Suzann began her career at OMERS, then managed portfolios at Prudential Assurance, and was Director of Canadian Equities at Mutual Group Insurance Co. before helping to build Synergy Mutual Funds. At Sceptre Investment Counsel, Suzann was Vice-President, Equities and head of international research. Suzann is a CFA charterholder. Other Assets Managed

Since

CIBC Balanced CIBC Canadian Equity Renaissance Canadian All-Cap Equity Cl A

07-11 07-11 09-11

The Fund combines the investment skill of several distinguished investment management teams, who will provide their expertise in management of Canadian, U.S. and EAFE equity and Canadian fixed income. Luc de la Durantaye of CIBC Global Asset Management (CGAM) will determine the overall strategic asset allocation of the fund. For the Canadian equity component, Suzann Pennington and her team employ a conservative, bottom-up value approach, which views risk on an absolute basis – an approach focusing on protecting the Fund from the risk of capital loss rather than the underperformance of an index. A well-defined process is geared to identifying holdings from all capitalization tranches. The team’s approach results in a diversified portfolio of stocks which avoids over-concentration in any one sector, capitalization tranche or holding and targets strong long-

term performance. The Canadian fixed income team follows a bottom-up approach based on fundamental and quantitative analysis. The team focus combines four different sources of adding value to fixed income investing: duration strategy, term structure strategy, sector allocation strategy and individual security selection. The foreign equity component is managed by CGAM’s EAFE equity team employing a bottom-up stock selection approach. The result is a diversified, value-oriented balanced portfolio designed to protect existing capital and achieve long-term capital appreciation. This fund is an excellent option as a conservative, core holding for an investor.

Manager Commentary Equity markets underperformed over the period, as macroeconomic headwinds continued to drive equity prices down.

to diverge from the U.S. (Canada’s strongest trading partner), especially as emerging markets also show signs of slowing and weigh on commodity prices.

The bond yields of countries that investors consider “safe havens” reached record lows, as global growth slowed and uncertainty surrounding the potential exit of countries from the eurozone grew. Voters in Greece and France rejected government parties that called for more austerity, while Spain tried to provide financial support to its struggling banking system.

The manager believes the important issue going into the third quarter of 2012 is how long this economic environment will last. The manager believes central bank policy may remain accommodative for the foreseeable future. Given the negative structural forces at work (e.g., government, bank and household deleveraging) and modest long-term growth prospects in developed economies, the manager believes it is wise to maintain a more prudent investment approach. The manager will continue to invest in asset classes and currencies that the manager believes will provide attractive valuation and growth prospects.

Economic growth in North America remained positive, although disappointing to investors. The Bank of Canada, which had hinted at a rate hike early in the quarter, moderated its expectations for future rate increases by the end of the quarter. Strong job numbers in Canada stood out against the weak employment numbers in the U.S. It will be difficult for Canada’s economy to continue

As at June 30, 2012

RENAISSANCE INVESTMENTS 69


BALANCED FUNDS

Renaissance Optimal Income Portfolio Fund Category Canadian Fixed Income Balanced

Morningstar Rating QQQQ

Investment Objective

Performance as of 06-30-2012

To generate income with some potential for capital appreciation by investing primarily in units of Canadian and global mutual funds.

Growth of $10,000 14 Fund

Benchmark A Blended Benchmark

13 12 11

Volatility Analysis

10 9 8 Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

Worst 1 Year Return

17.8% 02-28-2009 to 02-28-2010

-14.2% 02-28-2008 to 02-28-2009

Portfolio Details Class

Load Structure

Currency

Fund Code

A A A Elite Elite Elite F Sel Sel Sel

Back End Charge Front End Charge Low Load Charge Back End Charge Front End Charge Low Load Charge No Sales or Redem Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD

ATL050 ATL048 ATL049 ATL2406 ATL2404 ATL2405 ATL051 ATL2403 ATL2401 ATL2402

Inception Date MER Minimum Investment Telephone Web Site

Investment Style

1

1

1

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

3.9

28.3

133.4

384.9

690.0

939.0

Fund Category Benchmark A

— 0.3 -1.3

— 9.0 12.0

— 6.9 9.0

— 6.9 10.9

— 6.1 9.7

— 0.3 3.6

-12.3 -9.0 -9.5

13.3 14.0 13.5

9.0 6.7 9.6

4.2 3.0 3.2

2.7 1.9 1.9

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

0.9 0.6 0.8

0.6 -0.1 -0.5

2.7 1.9 1.9

3.3 3.0 3.3

7.6 5.2 6.9

7.6 6.1 7.1

— 3.1 3.8

3.3 — —

Calendar Year Returns %

Fund Category Benchmark A

Portfolio Analysis as of 06-30-2012 Actual Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

November 13, 2007 1.89% $500

888 888 FUND www.renaissanceinvestments.ca

2

2002

Total Assets ($mil) Best 1 Year Return

4

Top 5 Global Equity Sectors

Financials Utilities Industrial Energy Materials

23.1 4.6 8.2 55.0 0.1 6.2 2.9

% Equity

25.1 21.6 17.9 16.3 6.9

Market Cap

Large Medium Small

%

63.8 36.1 0.1

Credit Quality

High Medium Low NR/NA

Top Holdings

Renaissance Canadian Bond Renaissance Canadian Dividend Renaissance Global Infrastructure Renaissance High-Yield Bond Renaissance Global Bond

%

40.3 18.8 26.5 14.5 % Assets

29.6 25.0 15.1 14.8 9.8

Renaissance Real Return Bond

4.9

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

8 528 123 330

Notes T-Class units are also available. Class F MER: 0.88% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details. Benchmark Blend: 60% DEX Bond Universe Index / 25% S&P/TSX Composite Index / 15% MSCI World Index

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


BALANCED FUNDS

Renaissance Optimal Income Portfolio Investment Management Overview Investment Managers Management Team | 11-13-2007 Brandywine Global Investment Mgmt, LLC. Management Team | 11-13-2007 RARE Infrastructure Limited Management Team | 11-13-2007

Investment Management Approach This diversified Portfolio delivers an all-in-one income generation solution through a carefully aligned collection of asset classes and investment managers to capture the market’s best income opportunities, while carefully managing risk.

CIBC Global Asset Management Inc

This Portfolio optimizes the unique contributions from a group of carefully selected managers and asset classes to achieve the desired characteristics of an income generating investment product. A high degree of income generation is achieved primarily through a combination of CIBC Global Asset Management’s (CGAM) Canadian Bond and High Yield Bond approaches alongside RARE’s Global Infrastructure approach. The potential for capital growth is accomplished primarily through a combination of CGAMs Canadian Dividend Income approach with additional contributions from RARE’s Global

Infrastructure and Brandywine Global’s Global Bond approaches. Volatility is carefully managed to the lower end of the spectrum through the careful combination of each manager’s approach and asset class. A measure of inflation protection is attained primarily through a combination of RARE’s Global Infrastructure and CGAMs Real Return Bond approaches. The result is a diversified income generating portfolio that offers income generation, a measure of inflation protection and the opportunity for capital appreciation combined with capital preservation and low volatility. This portfolio makes an excellent all-in-one income solution because it offers investors the ability to tailor their cash flow needs through three stable monthly payout options and to potentially defer tax on return of capital distributions.

RENAISSANCE INVESTMENTS 71


EQUITY INCOME FUNDS

Renaissance Canadian Dividend Fund (Class A) Fund Category Canadian Dividend & Income Equity

Morningstar Rating QQ

Investment Objective

Performance as of 06-30-2012

To generate a high level of income and long-term capital growth by investing primarily in income producing securities including common shares, preferred shares, income trusts, and fixed income securities.

Growth of $10,000 20 Fund

Benchmark A S&P/TSX Composite Index

18 16 14 12

Volatility Analysis

10 8

Low

Medium

High

Performance Quartile (within category over calendar year)

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Total Assets ($mil)

Best 1 Year Return

Worst 1 Year Return

Calendar Year Returns %

28.5% 03-31-2003 to 03-31-2004

-29.9% 02-28-2008 to 02-28-2009

Fund Category Benchmark A

Fund Details

Trailing Returns %

Class

Load Structure

Currency

Fund Code

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL211 ATL294 ATL266 ATL014

Inception Date MER Minimum Investment Telephone Web Site

November 8, 2002 2.46% $500

Fund Category Benchmark A

2

2

3

4

2

4

3

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

67.3

113.1

178.7

236.5

226.3

132.1

159.6

300.4

340.0

383.9

— -5.0 -12.4

21.0 20.8 26.7

16.1 14.0 14.5

18.2 17.4 24.1

8.2 13.6 17.3

4.6 1.3 9.8

-28.9 -28.4 -33.0

18.4 28.3 35.1

14.5 11.1 17.6

-3.9 -1.0 -8.7

-0.5 1.4 -1.5

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

1.0 1.1 1.1

-3.9 -3.1 -5.7

-0.5 1.4 -1.5

-7.5 -3.3 -10.3

5.7 6.9 4.2

6.0 7.8 6.7

-2.3 -0.1 -0.7

6.1 — —

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other Top Ten Holdings

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

3

2002

Investment Style

Notes

3

15.4

888 888 FUND www.renaissanceinvestments.ca

Class F MER: 1.03%

3

88.2 0.0 0.0 0.0 0.0 7.9 3.9

% Assets

Toronto-Dominion Bank Royal Bank of Canada Bank of Nova Scotia CIBC Canadian National Railway Co

6.1 5.1 4.3 4.0 3.5

Bank of Montreal BCE Inc Enbridge, Inc. Suncor Energy Inc Canadian Natural Resources Ltd

3.3 2.8 2.8 2.6 2.2

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

150 150 78 0

Market Cap

Large Medium Small

%

78.4 21.4 0.2

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

Canada

% Equity

2.4 22.2 40.0 11.2 4.6 3.3 7.4 7.6 0.8 0.5 0.0 % Assets

100.0

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

Domenic Monteferrante | 10-27-2009 CIBC Global Asset Management Inc

Dominic joined CIBC Asset Management in February 1998. Domenic is a member of the Global Equity group operating from within the firm's Investment Management Platform, and is responsible for the Canadian equity product. Domenic is also responsible for the management of socially responsible and dividend portfolio mandates. Other Assets Managed

Since

CIBC Financial Companies CIBC Dividend Growth CIBC Dividend Income

11-04 12-07 10-09

The Fund benefits from the expertise of Domenic Monteferrante and the Canadian Equity team from CIBC Global Asset Management, who focus their investment expertise towards high income-generating equity securities. The Canadian Equity team focus their approach toward selecting income-generating equity securities that are mis-priced through fundamental analysis. The team’s approach follows a rigorous process to select mis-priced securities, with the goal of achieving above-average, risk-adjusted returns over the long term. The initial screening is performed using proprietary internally generated buy-sell stock targets based on bottom-up analysis. This fundamental analysis includes a review of the business model, management assessment, and

evaluation of key ratios, which differ based on sector. A peer review is then conducted to scrutinize internal stock recommendations to focus on the best opportunities. The initial screening, combined with the deep fundamental analysis, leads to buy/hold/sell recommendations that are validated at the portfolio construction level through the guiding principals of the team’s philosophy. The result is a conservative, diversified portfolio of primarily Canadian income-generating securities including higher dividend and increasing dividend-paying stocks, selected with a disciplined approach. This Fund is an excellent option for the equity-oriented incomegeneration portion of a portfolio.

Manager Commentary The Canadian equity market posted a negative return over the period. Continued European sovereign debt issues and weaker-than-expected economic data from the U.S. and China increased investor concern about a global recession. Investors reacted by seeking protection in “safe-haven” bonds and the U.S. dollar. The fund has overweight positions in financials, pipeline, real estate investment trust and telecommunications services companies, as the manager believes these businesses provide low price volatility and aboveaverage dividend yields. The fund has underweight positions in the energy and materials sectors. The manager increased the fund’s positions in The Toronto-Dominion Bank and Royal Bank of Canada. The Jean Coutu Group Inc. and Canadian Real Estate Investment Trust were added to the fund, as the manager believes these companies offer defensive

characteristics. Suncor Energy Inc. was added on stock price weakness and on the manager’s expectation of stable and profitable production growth. The fund’s position in National Bank of Canada was reduced. While positive developments – like the introduction of fiscal stimulus efforts in China or another monetary initiative in the U.S. – may occur over the near term, the manager remains cautious and expects equity markets to continue to be volatile for some time. The manager expects corporate balance sheets to remain solid and earnings to grow, albeit at a slower pace. Equity market pullbacks may give the manager the opportunity to add long-term value to the portfolio, given the manager’s belief that equities are more attractive than bonds on a long-term, risk-adjusted. As at June 30, 2012

RENAISSANCE INVESTMENTS 73

EQUITY INCOME FUNDS

Renaissance Canadian Dividend Fund (Class A)


EQUITY INCOME FUNDS

Renaissance Canadian Monthly Income Fund (Class A) Fund Category Canadian Equity Balanced

Morningstar Rating QQQQ

Investment Objective

Performance as of 06-30-2012

To generate a high level of current cash flow by investing primarily in income producing securities including income trusts, preferred shares, common shares, and fixed income securities.

Growth of $10,000 25 Fund

Benchmark A Blended Benchmark

22 19 16 13

Volatility Analysis

10 7

Low

Medium

High

Performance Quartile (within category over calendar year)

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Total Assets ($mil)

Best 1 Year Return

Worst 1 Year Return

Calendar Year Returns %

49.5% 02-28-2000 to 02-28-2001

-24.2% 12-31-2007 to 12-31-2008

Fund Details Class

Load Structure

Currency

Fund Code

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL859 ATL910 ATL668 ATL155

Inception Date MER Distribution Frequency Minimum Investment Telephone Web Site

October 30, 1997 1.92% Monthly $500

1

1

1

1

2

2

3

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

734.1

731.6

515.6

432.0

286.4

291.4

261.8

208.3

190.6

Fund Category Benchmark A

8.9 -4.3 13.5

25.0 13.3 38.3

23.0 10.1 28.2

23.5 12.3 29.4

0.3 10.4 -2.2

13.6 0.3 7.0

-24.2 -22.3 -27.1

17.0 25.2 43.7

11.4 9.1 24.3

-2.3 -2.4 0.4

0.7 1.3 0.4

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

0.6 1.2 0.6

-2.1 -2.8 -1.7

0.7 1.3 0.4

-2.7 -2.3 -0.5

4.9 5.0 10.8

6.4 6.2 16.3

0.1 0.5 4.8

7.7 4.8 12.2

Fund Category Benchmark A

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

Canada Hsg Tr No 1 2.05% 15-06-2017 Toronto-Dominion Bank Royal Bank of Canada Suncor Energy Inc TELUS Corp

Benchmark Blend: 50% S&P/TSX Composite Index / 50% DEX Bond Universe Index

4

709.5

Top Ten Holdings

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

3

2002

54.2 0.0 0.0 42.9 0.3 2.6 0.0

Investment Style

Notes

1

622.1

888 888 FUND www.renaissanceinvestments.ca

Class F MER: 0.98%

4

% Assets

11.4 5.9 3.5 3.2 2.9

CIBC BCE Inc Canada Govt 2.75% 01-06-2022 Bank of Montreal AltaGas Ltd.

2.9 2.5 2.2 2.2 1.9

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

166 166 60 102

Market Cap

Large Medium Small

%

74.1 24.4 1.4

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

Credit Quality

High Medium Low NR/NA

%

69.7 21.9 0.0 8.4 % Equity

3.7 23.5 41.9 5.2 4.9 0.9 13.3 6.4 0.0 0.2 0.0 % Fixed Income

55.9 37.6 0.0 0.2 6.3 0.0

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

David Graham | 10-27-2009 CIBC Global Asset Management Inc

David Graham joined CIBC Global Asset Management in July 2002 and has over 35 years of financial industry and investment management experience. David is a member of the Global Equity group, operating from within the CIBC’s Investment Management Platform. David holds a Masters in Business Administration from York University (Toronto); Bachelor of Arts from the University of Western Ontario (London) and is also a CFA charterholder. Other Assets Managed

Since

CIBC Monthly Income CIBC Global Monthly Income Renaissance Diversified Income CIBC Canadian Equity

12-07 12-07 10-09 07-11

The Fund benefits from the expertise of David Graham and the Canadian Equity team from CIBC Global Asset Management, who focus their value investment style toward a diversified mix of income-generating securities. The manager opportunistically moves between different types of securities to take advantage of changing business cycles and market conditions to capture the best scenario for delivering conservative, high quality income and paying a fixed monthly distribution. The Canadian Equity team focus their approach toward income-generating securities. The team’s approach follows a rigorous process to select undervalued securities, with the goal of achieving above-average, risk-adjusted returns over the long term. The team uses a combination of quantitative and fundamental analysis, emphasizing primarily a bottom-up fundamental analysis, but combined with a top-down macro-economic perspective. The initial screening is performed using a

proprietary quantitative model to find the intrinsic value of a security. The stocks are then ranked in order of expected return and ‘value traps’ are avoided by further screening. The promising companies undergo qualitative analysis to evaluate financial risk and to fully understand the business and industry in which the company operates. The initial screening, combined with the deep fundamental analysis, leads to buy/hold/sell recommendations that are validated at the portfolio construction level through the guiding principals of the team’s value philosophy. The result is a conservative, diversified value portfolio of primarily Canadian income-generating securities including income trusts, higher-dividend stocks, and opportunistically including fixed income. This Fund is an excellent option for the income-generation portion of a portfolio.

Manager Commentary The fund’s allocations to cash and bonds were increased during the second quarter of 2012. At the end of the period, approximately 50 percent of the fund’s assets were in equities; 37 percent in bonds, with a focus on high-quality corporate bonds; 11 percent in cash; and 2 percent in preferred shares and options.

adequately reflects these potential risks.

The manager added TransAlta Corporation to the portfolio. The company has been negatively impacted by its ongoing dispute with TransCanada Corporation regarding the closure of the Sundance facilities. Furthermore, contract renegotiations at Centralia and concern about a potential dividend cut provided an opportunity to acquire TransAlta stock at what the manager believed to be an attractive valuation. Following meetings with TransAlta’s management team, the manager is comfortable with the company’s inherent risks and believes the purchase price of the stock

The manager sold several resource stocks during the period, including Goldcorp Inc., and reduced the fund’s exposure to stocks that tend to have higher volatility relative to the overall market, including Barrick Gold Corporation. The fund’s position in ARC Resources Ltd. was also sold following the company’s recent share price rally. The manager believes gas prices will remain deflated, and ARC’s hedged position is still quite low through 2013.

Cominar Real Estate Investment Trust was also added to the fund based on recent positive results. Cominar has a six percent distribution yield, and the manager views the payout ratio as sufficiently conservative.

As at June 30, 2012

RENAISSANCE INVESTMENTS 75

EQUITY INCOME FUNDS

Renaissance Canadian Monthly Income Fund (Class A)


EQUITY INCOME FUNDS

Renaissance Diversified Income Fund (Class A) Fund Category Canadian Equity Balanced

Morningstar Rating QQ

Investment Objective

Performance as of 06-30-2012

To generate a high level of current cash flow by investing primarily in income producing securities, including income trusts, preferred shares, common shares, and fixed income securities.

Growth of $10,000 20 Fund

Benchmark A Blended Benchmark

18 16 14 12

Volatility Analysis

10 8

Low

Medium

High

Performance Quartile (within category over calendar year)

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Total Assets ($mil)

Best 1 Year Return

Worst 1 Year Return

Calendar Year Returns %

35.5% 07-31-2004 to 07-31-2005

-28.2% 12-31-2007 to 12-31-2008

Fund Details Class

Load Structure

Currency

Fund Code

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL271 ATL247 ATL204 ATL017

Inception Date MER Distribution Frequency Minimum Investment Telephone Web Site

February 4, 2003 2.48% Monthly $500

1

Benchmark Blend: 80% S&P/TSX Composite Index / 20% DEX Bond Universe Index

4

3

2

3

3

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

112.3

208.5

322.1

332.3

272.2

154.9

151.3

132.2

97.1

84.4

Fund Category Benchmark A

— -4.3 13.5

— 13.3 38.3

20.8 10.1 28.2

20.8 12.3 29.4

-0.1 10.4 -2.2

11.4 0.3 7.0

-28.2 -22.3 -27.1

21.0 25.2 43.7

11.8 9.1 24.3

-3.6 -2.4 -5.1

-0.2 1.3 -0.8

Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

0.7 1.2 0.9

-4.1 -2.8 -4.1

-0.2 1.3 -0.8

-4.5 -2.3 -6.4

3.6 5.0 7.1

6.7 6.2 13.7

-0.9 0.5 3.4

6.6 — —

Fund Category Benchmark A

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other Top Ten Holdings

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

1

Investment Style

Class F MER: 1.25%

4

2002

888 888 FUND www.renaissanceinvestments.ca

Notes

1

76.7 0.0 0.0 20.2 0.0 3.1 0.0

% Assets

Toronto-Dominion Bank Royal Bank of Canada Suncor Energy Inc CIBC TELUS Corp

8.0 5.0 4.8 4.5 3.9

Bank of Montreal BCE Inc Canada Hsg Tr No 1 2.05% 15-06-2017 Canadian Natural Resources Ltd AltaGas Ltd.

3.3 3.1 3.0 2.9 2.7

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

147 147 58 86

Market Cap

Large Medium Small

%

74.2 24.4 1.5

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Fixed Income Breakdown

Government Bonds Corporate Bonds Other Bonds Mortgage Backed Securities ST Investments (Cash & Other) Asset Backed Securities

Credit Quality

High Medium Low NR/NA

%

53.9 29.4 0.0 16.7 % Equity

3.7 24.0 41.8 5.9 4.7 0.5 12.4 6.7 0.0 0.3 0.0 % Fixed Income

35.4 50.9 0.0 0.5 13.2 0.0

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

David Graham | 10-27-2009 CIBC Global Asset Management Inc

David Graham joined CIBC Global Asset Management in July 2002 and has over 35 years of financial industry and investment management experience. David is a member of the Global Equity group, operating from within the CIBC’s Investment Management Platform. David holds a Masters in Business Administration from York University (Toronto); Bachelor of Arts from the University of Western Ontario (London) and is also a CFA charterholder. Other Assets Managed

Since

CIBC Monthly Income CIBC Global Monthly Income Renaissance Canadian Monthly Income CIBC Canadian Equity

12-07 12-07 10-09 07-11

The Fund benefits from the expertise of David Graham and the Canadian Equity team from CIBC Global Asset Management Inc., who focus their value investment style towards a diversified mix of income-generating securities. The manager opportunistically moves between different types of securities to take advantage of changing business cycles and market conditions to capture the best scenario for delivering conservative, high quality income and paying a fixed monthly distribution. The Canadian Equity team focus their approach toward income-generating securities. The team’s approach follows a rigorous process to select undervalued securities, with the goal of achieving above-average, risk-adjusted returns over the long term. The team uses a combination of quantitative and fundamental analysis, emphasizing primarily a bottom-up fundamental analysis, but combined with a top-down macro-economic perspective. The initial screening is performed using a

proprietary quantitative model to find the intrinsic value of a security. The stocks are then ranked in order of expected return and ‘value traps’ are avoided by further screening. The promising companies undergo qualitative analysis to evaluate financial risk and to fully understand the business and industry in which the company operates. The initial screening, combined with the deep fundamental analysis, leads to buy/hold/sell recommendations that are validated at the portfolio construction level through the guiding principals of the team’s value philosophy. The result is a conservative, diversified value portfolio of primarily Canadian income-generating securities including income trusts, higher-dividend stocks, and opportunistically including fixed income. This Fund is an excellent option for the income-generation portion of a portfolio.

Manager Commentary Economic data released during the period was a mixture of positive and negative indicators. Strong job numbers in Canada stood in contrast to the weak employment numbers out of the U.S. It may be difficult for Canada’s economy to continue to diverge from the U.S., especially as emerging markets show signs of slowing, which could weigh on commodities prices. While the manager still prefers equities, prudence dictates caution in the fund’s asset allocation decisions. As such, the fund’s cash and bond weightings were increased during the period. The majority of fund assets are in equity positions, however, with a meaningful allocation to high-quality corporate bonds. The manager sold the fund’s holdings in resource stocks, including Barrick Gold Corporation, Goldcorp Inc. and Penn West Petroleum Ltd. The manager eliminated the

fund’s position in ARC Resources Ltd. following a recent share price rally and in response to the manager’s belief that gas prices will remain deflated. With the proceeds from this sale, the manager initiated a position in TransAlta Corporation, which has been negatively impacted as a result of an ongoing dispute with TransCanada Corporation. Cominar Real Estate Investment Trust was also added to the fund through participation in the company’s recent equity issue. Capital markets around the world remain volatile; however, the issues facing financial markets are not causing systemic panic. This means the manager can continue to focus on selecting equities the manager believes offer the best fundamental prospects (while focusing less on global macroeconomic trends). As at June 30, 2012

RENAISSANCE INVESTMENTS 77

EQUITY INCOME FUNDS

Renaissance Diversified Income Fund (Class A)


EQUITY INCOME FUNDS

Renaissance Millennium High Income Fund (Class A) Fund Category Canadian Dividend & Income Equity

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

To achieve the highest possible return that is consistent with a conservative fundamental investment philosophy through investment primarily in a balanced and diversified portfolio of Canadian income securities.

Growth of $10,000 25 Fund

Benchmark A S&P/TSX Composite Index

22 19 16 13

Volatility Analysis

10 7

Low

Medium

High

Performance Quartile (within category over calendar year)

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Total Assets ($mil)

Best 1 Year Return

Worst 1 Year Return

Calendar Year Returns %

37.6% 02-28-2000 to 02-28-2001

-33.7% 02-28-2008 to 02-28-2009

Fund Category Benchmark A

Fund Details Load Structure

Currency

Fund Code

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL1880 ATL1879 ATL2880 ATL1650

Inception Date MER Minimum Investment Telephone Web Site

February 13, 1997 2.50% $500

3

2002

Trailing Returns %

Class

1

275.4

10.7 -5.0 -12.4

2003

1

1

1

2008

2009

2010

2011

YTD

533.4

494.1

441.3

440.8

-31.5 -28.4 -33.0

21.9 28.3 35.1

16.5 11.1 17.6

7.6 -1.0 -8.7

4.2 1.4 -1.5

2.9 13.6 17.3

5.3 1.3 9.8

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

-1.3 -3.1 -5.7

4.2 1.4 -1.5

6.3 -3.3 -10.3

14.9 6.9 4.2

15.0 7.8 6.7

2.0 -0.1 -0.7

7.5 6.2 7.6

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other Top Ten Holdings

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

3

563.1

24.6 17.4 24.1

2006

4

2007

16.6 14.0 14.5

2005

2

690.3 1095.6 1550.7 1534.7 1168.8

18.1 20.8 26.7

2004

4

0.2 1.1 1.1

Investment Style

Class F MER: 1.61%

1

1 Mth

Fund Category Benchmark A

888 888 FUND www.renaissanceinvestments.ca

Notes

2

93.1 1.6 0.0 0.0 0.0 1.6 3.7

% Assets

Northland Power Inc Pembina Pipeline Corp Medical Facilities Corporation Vermilion Energy, Inc. Morneau Shepell, Inc.

5.9 4.5 4.5 4.3 4.1

Parallel Energy Trust Units Allied Ppty Real Est Investment Tr Unit Canadian Real Estate Investment Trust Fortis, Inc. Dundee Real Estate Investment Trust

4.0 3.8 3.7 3.7 3.6

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

44 44 41 0

Market Cap

Large Medium Small

%

29.6 50.8 19.6

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

Canada United States

% Equity

12.5 21.3 46.2 4.9 0.3 1.8 3.9 4.4 4.7 0.0 0.0 % Assets

98.4 1.6

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios Barry A. Morrison | 02-13-1997 Morrison Williams Investment Management

As Chairman and CEO, Barry A. Morrison founded Morrison Williams Investment Management in 1992. Prior to that, Mr. Morrison was the Senior Vice-President and Director at BGH Central Investment management from 1981 to 1991, a Portfolio manager at MICC Investments from 1973 to 1978 and a Portfolio manager, fixed Income and equity investments, at United Funds Management from 1971 to 1973. Between 1968 to 1971, Mr. Morrison was a Security Analyst at Dominion Life Assurance.

Investment Management Approach The Fund benefits from the award winning investment expertise of Barry Morrison, Chairman and CEO of Morrison Williams Investment Management Ltd. Morrison and his team combine a top-down and bottomup disciplined investment approach to deliver a balanced and diversified portfolio of primarily Canadian incomegenerating securities. The Morrison Williams approach begins with determining the appropriate asset allocation for the portfolio as part of their three-stage disciplined investment process. First, the firm conducts a top-down, fundamental economic-cycle analysis to determine monetary, economic, social and geopolitical trends and risks, and to identify cyclical and secular trends that shape capital markets. Second, they use technical analysis as a collaborative tool to supplement the

fundamental analysis. Quantitative measures are used to determine which asset classes and securities are likely to be the outperformers. Third, focusing on incomegenerating securities, they conduct a thorough security analysis to select a buy list that fits their criteria, which includes attributes such as stable, dependable businesses, good margins, good prospects for growth, strong balance sheets, clean accounting and seasoned, honest management. The result is a flexible, diversified and balanced portfolio of income-generating securities designed to achieve the highest possible risk-adjusted returns consistent with the conservative fundamental investment philosophy of its portfolio manager. The Fund is an excellent solution for the income-generating component of a portfolio.

Manager Commentary Investors continued to seek income-generating securities over the period. The fund was positioned in what the manager believed to be high-quality securities that tend to generate both income and capital gains. As such, the fund outperformed its benchmark by a significant margin over the second quarter of 2012. At the end of the period, the fund had overweight positions in the real estate and utilities sectors. Within these sectors, the manager believes there are many well-managed growth companies with attractive dividend yields that still offer the prospects for attractive total returns. The fund had a slightly underweight position in the energy sector. Global events pushed energy prices down, and the manager will continue to look for select opportunities in the energy sector. The fund maintained its underweight positions in the industrials, materials and information technology sectors.

The issues that have shaken financial markets are still on many investorsâ&#x20AC;&#x2122; minds. Investors who had been focusing on Greeceâ&#x20AC;&#x2122;s sovereign debt issues turned their attention to the debt issues of Spain and Italy during the period. Concerns of an economic slowdown in China, as well as conflicting economic data out of the U.S., also acted as financial market headwinds. The manager believes ongoing global macroeconomic uncertainty will keep interest rates at their low levels. Investors are increasingly looking for securities that offer the potential for a steady stream of income and some capital gains. The fundâ&#x20AC;&#x2122;s emphasis on generating both income and capital gains has contributed to its relatively strong performance of late. As at June 30, 2012

RENAISSANCE INVESTMENTS 79

EQUITY INCOME FUNDS

Renaissance Millennium High Income Fund (Class A)


CANADIAN EQUITY FUNDS

Renaissance Canadian Core Value Fund (Class A) Fund Category Canadian Focused Equity

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

To achieve long-term investment returns through capital growth by investing in senior issuers that are primarily medium to large Canadian companies.

Growth of $10,000 20 Fund

Benchmark A S&P/TSX Composite Index

18 16 14

Volatility Analysis

12 10 8 Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

Total Assets ($mil) Best 1 Year Return

Worst 1 Year Return

60.4% 02-28-1999 to 02-29-2000

-28.0% 02-28-2008 to 02-28-2009

Fund Details

Fund Category Benchmark A

Load Structure

Currency

Fund Code

Trailing Returns %

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL853 ATL901 ATL671 ATL020

Fund Category Benchmark A

Telephone Web Site

3

3

3

4

3

1

4

2

3

4

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

313.1

389.6

483.5

577.5

653.2

607.5

393.5

431.8

414.4

322.1

285.0

-0.5 -11.5 -12.4

19.2 17.9 26.7

10.5 11.9 14.5

18.0 16.4 24.1

9.3 14.9 17.3

0.7 1.6 9.8

-24.0 -32.6 -33.0

18.0 29.6 35.1

12.4 11.9 17.6

-10.6 -10.3 -8.7

-1.5 0.7 -1.5

Calendar Year Returns %

Class

Inception Date MER Minimum Investment

1

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

1.1 1.8 1.1

-6.9 -5.3 -5.7

-1.5 0.7 -1.5

-11.3 -9.4 -10.3

0.7 3.2 4.2

2.6 4.8 6.7

-3.3 -3.2 -0.7

3.8 4.0 7.6

Portfolio Analysis as of 06-30-2012 September 23, 1994 2.58% $500

Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca

Investment Style

Top Ten Holdings

Notes Class F MER: 1.04% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

82.2 4.5 9.4 0.0 0.0 2.2 1.5

% Assets

Royal Bank of Canada Toronto-Dominion Bank Suncor Energy Inc Bank of Montreal CIBC

5.9 5.6 4.3 3.8 3.7

Canadian Natural Resources Ltd Barrick Gold Corporation BCE Inc Manulife Financial Corporation TELUS Corp

3.7 3.6 3.1 2.6 2.6

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

70 70 68 0

Market Cap

Large Medium Small

%

86.9 12.7 0.3

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

Canada United States Switzerland United Kingdom Hong Kong

% Equity

1.6 21.4 32.4 15.5 7.7 7.7 5.9 6.7 0.0 1.0 0.0 % Assets

86.0 4.5 3.5 2.7 1.6

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios Colum McKinley | 06-01-2010 CIBC Global Asset Management Inc

Colum McKinley joined CIBC Global Asset Management in May 2010, assuming a lead role as Portfolio Manager on the Investment Management Team. He holds a Bachelor of Arts in Economics from the University of Western Ontario (London); and is a CFA charterholder. Prior to joining CIBC Global Asset Management, he was a Portfolio Manager at Sionna Investment Managers, 2005 to 2010, and Vice President and Director, Portfolio Manager at TD Asset Management (Toronto), 1999 to 2005. David J. Winters | 09-01-2011 Wintergreen Advisers, LLC

David Winters is the managing member of Wintergreen Advisers. Prior to forming Wintergreen Advisers in May 2005, he held various positions with Franklin Mutual Advisers, LLC, including, president, chief executive officer and chief investment officer, and he was a research analyst for Heine Securities Corporation, the former investment manager for the Franklin Mutual Series Fund. Winters holds the Chartered Financial Analyst designation.

Investment Management Approach The Fund benefits from the investment expertise of David Graham, Colum McKinley and the Canadian Equity team of CIBC Global Asset Management who are responsible for the Canadian equity component and the overall strategic asset allocation of the Fund, while Wintergreen Advisers, LLC is responsible for the global equity component. The Canadian Equity team approach follows a rigorous process in selecting undervalued securities, with the goal of achieving above-average, risk-adjusted returns over the long term. The team uses a combination of quantitative and fundamental analysis, emphasizing primarily a bottom-up fundamental analysis, but combined with a top-down macro-economic perspective. The initial screening is performed using a proprietary quantitative model to find the intrinsic value of a security. The stocks are then ranked in order of expected return and ‘value traps’ are avoided by further screening. The promising companies undergo qualitative analysis to evaluate financial risk and to fully understand the business and industry in which the company operates. The initial screening, combined with the deep fundamental analysis, leads to buy/hold/sell

recommendations that are validated at the portfolio construction level through the guiding principals of the team’s value philosophy. For the global equity component, CIBC Global Asset Management will leverage the global deep-value expertise of Wintergreen Advisers to add diversification and value through investments in companies currently out of favour with the broader market; in particular, undervalued or distressed companies along with arbitrage opportunities that are showing signs for a significant return on investment. CIBC Global Asset Management will continue to determine the % of foreign content within the overall fund. The result is a lower-turnover, diversified portfolio of Canadian value companies and some exposure to global markets, which exhibit lower price-to-book and price-toearnings characteristics compared to their respective markets. This Fund is an excellent complement to a growth-oriented portfolio of Canadian or international equity holdings.

Manager Commentary Ongoing European sovereign debt issues reignited investor concern about the global economic recovery and its sustainability during the second quarter of 2012. During the period, the manager took advantage of fluctuating equity markets to add several names to the fund and to increase the fund’s positions in companies that the manager believes have relatively strong longterm growth prospects. The manager added to the fund’s positions in Penn West Petroleum Ltd., Magna International Inc. and Royal Bank of Canada to the portfolio. Power generation company TransAlta Corporation was also added to the fund, as the company’s stock price has declined by more than 30 percent since the fall of 2011. While TransAlta will likely be in transition throughout 2012, the manager believes market concern about the company recontracting its

Centralia facility is overblown. Arbitration on Sundance 1 and 2 is also likely to be completed in the next couple of months, removing some of the company’s event risk. At its current stock price, the manager believes TransAlta has an attractive valuation and an above-average dividend yield. Canadian Pacific Railway Limited (CP Rail) and Celestica Inc. were sold from the portfolio during the period. The manager expects CP Rail’s new board and management team to improve the company’s operating results, but believes these expectations are already largely reflected in the stock’s valuation. Celestica’s largest customer, Research In Motion Limited, is undergoing a significant turnaround, and the recent rise in Celestica’s stock price provided an opportunity to sell the holding. As at June 30, 2012

RENAISSANCE INVESTMENTS 81

CANADIAN EQUITY FUNDS

Renaissance Canadian Core Value Fund (Class A)


CANADIAN EQUITY FUNDS

Renaissance Canadian Growth Fund (Class A) Fund Category Canadian Focused Equity

Morningstar Rating QQ

Investment Objective

Performance as of 06-30-2012

To achieve long-term investment returns through capital growth, primarily in equity securities of large to mediumsized Canadian issuers.

Growth of $10,000 18 Fund

Benchmark A S&P/TSX Composite Index

16 14 12

Volatility Analysis

10 8 6 Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

Total Assets ($mil) Best 1 Year Return

Worst 1 Year Return

47.4% 07-31-1996 to 07-31-1997

-38.6% 02-28-2008 to 02-28-2009

Fund Details

Fund Category Benchmark A

Load Structure

Currency

Fund Code

Trailing Returns %

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL843 ATL902 ATL669 ATL022

Fund Category Benchmark A

Telephone Web Site

2

4

3

2

2

3

2

4

4

2

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

284.1

276.7

242.4

219.6

216.8

304.3

163.8

188.3

175.5

119.0

107.0

-17.5 -11.5 -12.4

20.2 17.9 26.7

8.5 11.9 14.5

15.4 16.4 24.1

18.7 14.9 17.3

4.8 1.6 9.8

-35.7 -32.6 -33.0

28.4 29.6 35.1

9.6 11.9 17.6

-19.9 -10.3 -8.7

1.6 0.7 -1.5

Calendar Year Returns %

Class

Inception Date MER Minimum Investment

4

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

1.8 1.8 1.1

-5.3 -5.3 -5.7

1.6 0.7 -1.5

-16.0 -9.4 -10.3

-1.1 3.2 4.2

-0.3 4.8 6.7

-6.5 -3.2 -0.7

2.6 4.0 7.6

Portfolio Analysis as of 06-30-2012 October 30, 1985 2.58% $500

Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca

Investment Style

Top Ten Holdings

Notes Class F MER: 1.05% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

76.0 12.6 11.1 0.0 0.0 0.4 0.0

% Assets

Toronto-Dominion Bank Royal Bank of Canada Suncor Energy Inc Bank of Nova Scotia Canadian National Railway Co

5.4 4.3 4.1 4.0 3.6

Cenovus Energy, Inc. Canadian Natural Resources Ltd Teck Resources Ltd Class B Goldcorp, Inc. TransCanada Corp

3.2 3.2 2.8 2.8 2.7

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

148 148 146 0

Market Cap

Large Medium Small

%

88.6 11.4 0.0

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

Canada United States United Kingdom Switzerland Germany

% Equity

0.1 22.6 24.4 16.7 9.5 4.8 2.7 11.1 3.3 4.8 0.0 % Assets

76.2 12.7 2.7 1.7 1.5

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios Alan Daxner | 06-01-2002 MFS McLean Budden Ltd

Alan Daxner joined McLean Budden in 1998, specializing in portfolio management, marketing and client service. He is a voting member of the Canadian Equity Value team and a product specialist for the U.S. Equity team. His previous experience includes 3 years as a senior financial analyst for the Regional Municipality of Peel, 2 years as a financial analyst at SEI Financial Services and one year as a Vice President and Consultant at Ernst & Young Investment Advisors. Brad Hicks | 06-01-2002 MFS McLean Budden Ltd

Bradley Hicks joined McLean Budden in 2003, specializing in marketing and client service. Currently, Bradley is a product specialist for the Canadian Equity Value and the Global Equity Value Team and a voting member of the Canadian Equity (Core) product. Prior to joining McLean Budden, Mr. Hicks spent two years at Edinburgh Fund Managers marketing global and international equity portfolios. Bradley has an Honours B. A., Richard Ivey School of Business, University of Western Ontario.

Investment Management Approach The Fund benefits from the distinguished and proven investment expertise of McLean Budden Limited, one of Canada’s oldest investment counselling firms. McLean Budden provides a conservative, team approach to growth investing, with a focus on delivering long-term investment returns through investment in large and medium-sized Canadian companies with some global equity exposure. McLean Budden’s growth team stresses fundamental research as the primary method of adding value. The research team is responsible for performing original research, evaluating external research, attending industry meetings and interviewing management. The key criteria for investment are earnings growth, management quality, financial strength, business potential, earnings stability and return on equity. Price targets are established for each of the approximately 125 Canadian companies closely followed, resulting in a rate

of return expectation for each stock, taking into account its current price. McLean Budden’s commitment to specific securities and industry sectors depends on the earnings potential of the particular companies they follow. In addition to each stock’s return potential, they also evaluate the likelihood of price appreciation as well as the security’s trading liquidity. In addition, the fund manager will typically seek opportunities to maximize foreign equity exposure to enhance shareholder value. McLean Budden’s foreign equity team, which employs a similar philosophy, selects the foreign equity component. The result is a diversified portfolio of Canadian growth companies with some exposure to global markets, selected through a team approach that emphasizes strong fundamental research and focus on delivering long-term results. This Fund is an excellent complement to a value-oriented portfolio of Canadian or international equity holdings.

Manager Commentary Over the second quarter of 2012, the manager maintained the fund’s overweight positions in the industrials, consumer discretionary and energy sectors. The manager maintained the fund’s underweight positions in the financials, telecommunications services, utilities and health care sectors. During the period, the manager added Enbridge Inc., CI Financial Corp. and Allied Properties Real Estate Investment Trust to the portfolio. The manager increased the fund’s positions in TransCanada Corporation, Canadian National Railway Company, Dollarama Inc., Bank of Nova Scotia and National Bank of Canada.

The manager reduced the fund’s positions in Brookfield Asset Management Inc. and Royal Bank of Canada. The manager believes the utilities and health care sectors lack growth opportunities and remain unattractive compared to other sectors. The manager continues to focus on companies that the manager believes are well positioned for earnings growth and that have a competitive advantage within their respective industries. As at June 30, 2012

RENAISSANCE INVESTMENTS 83

CANADIAN EQUITY FUNDS

Renaissance Canadian Growth Fund (Class A)


CANADIAN EQUITY FUNDS

Renaissance Canadian Small-Cap Fund (Class A) Fund Category Canadian Small/Mid Cap Equity

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

To seek above-average, long-term growth of capital by investing primarily in a diversified portfolio of equity securities of small- to medium-sized Canadian issuers.

Growth of $10,000 35 Fund

Benchmark A BMO Nesbitt Burns Small Cap Index (Weighted)

30 25 20

Volatility Analysis

15 10 5 Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

Worst 1 Year Return

69.0% 02-28-2009 to 02-28-2010

-40.0% 10-31-2007 to 10-31-2008

Fund Details

1

2

3

2

3

1

2

4

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

88.2

88.5

101.9

122.3

266.2

141.9

200.9

354.5

303.6

263.2

Fund Category Benchmark A

3.7 -7.0 -0.9

20.5 25.7 42.7

20.8 15.2 14.1

29.6 20.0 19.7

18.8 12.5 16.6

5.1 6.6 2.0

-36.9 -43.1 -46.6

54.0 54.8 75.1

36.1 26.3 38.5

-11.6 -10.7 -14.2

-10.9 -2.0 -6.0

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

-1.7 -1.1 -2.4

-15.8 -8.2 -12.6

-10.9 -2.0 -6.0

-18.4 -10.6 -15.8

2.8 5.9 5.1

12.0 13.1 15.4

-0.6 -1.3 -1.1

8.4 6.2 8.3

Calendar Year Returns %

Load Structure

Currency

Fund Code

Trailing Returns %

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL852 ATL905 ATL670 ATL023

Fund Category Benchmark A

Telephone Web Site

2

2002

Class

Inception Date MER Minimum Investment

4

85.8

Total Assets ($mil) Best 1 Year Return

2

Portfolio Analysis as of 06-30-2012 October 25, 1996 2.58% $500

Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca

Investment Style

Top Ten Holdings

Notes Class F MER: 1.09% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

89.8 0.0 5.6 0.0 0.0 3.7 0.9

% Assets

Cineplex Inc Canadian Western Bank Corus Entertainment, Inc. Class B CCL Industries Inc. Great Canadian Gaming Corporation

3.1 2.9 2.7 2.7 2.7

Progress Energy Resources Corp Canadian Energy Services & Technolgy Glentel Inc. Killam Properties Inc. Open Text Corporation

2.6 2.6 2.5 2.5 2.5

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

81 81 78 0

Market Cap

Large Medium Small

%

0.0 39.5 60.5

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

Canada Australia Nicaragua

% Equity

3.8 22.7 19.2 23.4 14.0 0.0 0.0 9.6 1.4 5.9 0.0 % Assets

94.4 4.2 1.3

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

Jennifer Law | 11-12-2007 CIBC Global Asset Management Inc

Jennifer Law joined CIBC Global Asset Management Inc. in May 2003. Ms. Law is a member of the Global Equity group, operating from within the firms Investment Management Platform, and is responsible for the Canadian equity small cap growth product. She is also a CFA charterholder. Other Assets Managed

Since

CIBC Canadian Small-Cap

05-03

The Fund benefits from the extensive experience of Jennifer and the Canadian Equity Small CapEquity team David, Jennifer Law and the Canadian Shanthu Law at CIBCCap Global Management, take a growthSmall teamAsset at CIBC Global Assetwho Management, who at-a-reasonable-price approach with approach a value tiltwith to a take a growth-at-a-reasonable-price selecting Canadian small-cap selecting Canadiancompanies. small-cap companies. value tilt to The Canadian Equity Small Cap team’s investment philosophy is driven by the understanding that market inefficiencies create opportunities for investing in Canadian small caps because investors tend to linearly extrapolate recent earnings trends when the actual long run determinant of stock prices is earnings growth. Therefore, Mr. David and his team aim to identify companies with above-average growth prospects trading at attractive valuations. To do so, they take an analytical, bottom-up approach combining internal-driven quantitative and qualitative analysis. The quantitative analysis focuses on companies with strong free cash flow and predictable earnings growth, as well as a track

record of growth. The focus is placed on companies that have proven that they can grow consistently. To support the analysis, the team uses detailed forensic accounting reports and internally reproduces the income statements to enable the team to estimate key fundamentals such as free cash flow and various measures of earnings to arrive at an intrinsic valuation for each company. The team’s qualitative analysis places significant emphasis on each company’s management team, their track record, vision and strategy. The investment process is monitored on an ongoing basis to ensure consistency and to manage risk. The result is a diversified, lower-turnover portfolio of growing small to mid-sized Canadian companies, whose stock is purchased at a reasonable valuation. This Fund’s lower than average market capitalization makes it an excellent complement to an investor’s Canadian largecap equity portfolio.

Manager Commentary The Canadian small-capitalization market fell over the second quarter of 2012, as investors grew increasingly concerned about the lack of progress being made in resolving Europe’s sovereign debt issues. Signs of stronger U.S. economic growth that had emerged earlier in the year were not sustained over the period. Economic indicators from China continued to point to a slowdown in growth. The manager believes these factors resulted in investors increasingly moving assets into Treasuries, which put pressure on equity and commodity prices. At the end of the period, the manager believed equity valuations looked compelling. In the manager’s view, macroeconomic concerns will eventually cease to be the primary driver of equity prices, and equity markets will again be driven by company fundamentals.

to invest in the high-quality, liquid stocks of companies that have sound balance sheets. The fund’s non-resource portfolio consists mainly of stocks with stronger earnings visibility, dividend growth and less cyclical business plans. Within the fund’s resource portfolio, the manager will maintain the fund’s exposure to select commodities stocks. The manager expects higher energy prices will be relatively beneficial to fund performance, as the fund is two percent overweight in the energy sector and four to five percent underweight in the materials sector. The manager will adjust the fund’s portfolio construction and sector weightings in response to key economic data and, specifically, to any monetary policy changes by the U.S., European and/or Chinese governments.

Amid this market uncertainty, the manager will continue

As at June 30, 2012

RENAISSANCE INVESTMENTS 85

CANADIAN EQUITY FUNDS

Renaissance Canadian Small-Cap Fund (Class A)


U.S. EQUITY FUNDS

Renaissance U.S. Equity Value Fund (Class A) Fund Category US Equity

Morningstar Rating Q

Investment Objective

Performance as of 06-30-2012

To seek long-term capital growth and to provide income by investing in a diversified portfolio consisting primarily of equity securities of issuers located in the United States and worldwide.

Growth of $10,000 16 Fund

Benchmark A S&P 500 Index

14 12 10 8

Volatility Analysis

6 4

Low

Medium

High

Performance Quartile (within category over calendar year)

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Total Assets ($mil)

Best 1 Year Return

Worst 1 Year Return

Calendar Year Returns %

29.9% 02-28-2003 to 02-29-2004

-37.3% 01-31-2008 to 01-31-2009

Fund Category Benchmark A

Fund Details

Trailing Returns %

Class

Load Structure

Currency

Fund Code

A A A F F A A A

Back End Charge Front End Charge Low Load Charge No Sales or Redem No Sales or Redem Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD USD USD USD USD

ATL501 ATL502 ATL515 ATL024 ATL025 ATL742 ATL743 ATL744

Inception Date MER Minimum Investment Telephone Web Site

Fund Category Benchmark A

Investment Style

Notes Class F MER: 1.07% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

2

3

4

1

4

3

4

2

3

1

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

69.6

98.9

90.2

66.3

97.0

90.1

26.1

20.4

18.4

16.8

18.0

-20.1 -22.5 -22.7

7.7 6.4 5.2

1.0 2.5 3.3

-2.5 2.0 1.6

16.6 12.2 15.7

-16.8 -10.8 -10.5

-30.4 -28.5 -21.9

0.6 10.9 8.1

10.2 10.6 9.3

-2.0 -0.4 4.4

9.5 7.9 9.7

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

3.0 2.3 2.5

-1.2 -3.1 -0.8

9.5 7.9 9.7

4.8 3.7 11.4

10.1 12.6 15.1

8.6 9.7 11.4

-6.5 -3.0 -0.6

-2.5 -0.3 1.2

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

December 17, 1998 2.72% $500

888 888 FUND www.renaissanceinvestments.ca

1

Top Ten Holdings

0.0 89.6 7.6 0.0 0.0 2.9 0.0

% Assets

Home Depot, Inc. Abbott Laboratories Diageo PLC ADR The Hershey Company Apple, Inc.

3.5 3.2 3.1 3.1 3.0

NextEra Energy Inc International Business Machines Corp Intuit, Inc. EMC Corporation Time Warner Inc

2.8 2.8 2.8 2.8 2.6

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

46 46 44 0

Market Cap

Large Medium Small

%

82.0 17.0 1.0

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

United States United Kingdom Canada Netherlands

% Equity

4.5 7.9 15.6 2.0 8.3 14.9 2.3 12.4 11.2 20.8 0.0 % Assets

89.6 5.4 2.8 2.2

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios Gary W. Lisenbee | 07-01-2009 Metropolitan West Capital Management LLC

Mr. Gary W. Lisenbee is CEO, CIO and Senior Analyst with Metropolitan West Capital Management’s (MetWest Capital) investment team. Prior to co-founding MetWest Capital, he served as Principal, Portfolio Manager and Investment Policy Committee member with Palley-Needleman Asset Management, Inc.; as Senior Vice President, Portfolio Manager and Investment Policy Committee member with Van Deventer & Hoch, Investment Counsel; and as Partner and Research Analyst with Phelps Investment Management. Mr. Lisenbee earned both a BA in Accounting and an MA in Economics from California State University. Jeffrey Peck | 10-29-2010 Metropolitan West Capital Management LLC

Mr. Jeffrey Peck, who joined MetWest Capital in 2004, is Director of Research and Lead Strategist for the Large Cap Intrinsic Value strategy, and a Senior Analyst with the investment team. Previously, he served as Equity Research Analyst with both Janney Montgomery Scott and Bear Stearns & Co., Inc. Mr. Peck earned a Bachelor of Science in Mechanical Engineering from State University of New York, Buffalo and a Master of Business Administration from New York University’s Stern School of Business.

Investment Management Approach MWCM’s approach is driven by fundamental company research from a global perspective, utilizing a long-term focus that takes advantage of opportunities presented by short-term anomalies in high-quality businesses. What distinguishes MWCM’s approach to value investing is that it looks at quality first and valuation second. The investment team concentrates on selecting unique individual investments utilizing a low-risk, value-oriented methodology. The investment process consists of the following five steps: 1.Identifying quality companies: From an initial universe of companies with a market capitalization in excess of $1 billion USD, MWCM seeks companies that have exhibited financial strength, a capable, proven and motivated management team, attractive business fundamentals, as well as high and/or consistently improving market position, return on invested capital and operating margins. 2.Appraising value of businesses: After identifying quality, MWCM considers various valuation metrics to determine the company’s discount to its intrinsic value.

3.Identifying catalysts: MWCM then identifies one or more catalysts with high probabilities to unlock real value. Some catalysts may include productive use of free cash flow, change in management or control, innovative and/or competitively superior products, positive acquisitions or divestitures, amongst others. 4.Constructing and maintaining a diversified portfolio: While MWCM follows a bottom-up stock selection process, the team applies a risk management overlay, ensuring that the resulting portfolio is well-diversified along several lines including sectors and industries, as well as by exposure to economic factors such as cyclicality and interest rate sensitivity. The portfolio consists of approximately 40 high-quality and attractively-valued companies with identifiable catalysts that should lead to a higher stock price within a three- to five-year investment horizon. 5.Continually reviewing holdings and adhering to the sell discipline: The investment team devotes the majority of its time and resources to the on-going research and review of existing portfolio holdings. The investment team establishes a sell target when a security is purchased, based on the company’s intrinsic value.

Manager Commentary As a result of select trading activity and stock price movements of the fund’s holdings, the fund’s positioning relative to the S&P 500 Index shifted slightly over the period. The fund’s moderately overweight position in the information technology sector declined, as the manager reduced the fund’s position in eBay Inc. The fund’s overweight position in the consumer staples sector increased modestly, as the fund’s holdings within that sector outperformed their counterparts in the S&P 500 Index. The fund maintains an overweight position in the industrials sector and underweight positions in the energy and consumer discretionary sectors. The fund’s sector positioning is the result of the manager’s stock selection, and is not the result of tactical asset allocation decisions.

remains committed to finding high-quality businesses in great industries. These are companies that trade at discounts to what the manager believes are their intrinsic value, and possess catalysts for unlocking that value within the manager’s multi-year investment horizon. Regardless of what may happen in the financial markets, the manager believes these businesses should provide exceptional opportunities for strong investment returns over a full market cycle.

Amid a challenging market environment, the manager

As at June 30, 2012

The fund’s investment process continues to be driven by the manager’s bottom-up security selection process, which focuses on adding value through intensive fundamental analysis of individual businesses.

RENAISSANCE INVESTMENTS 87

U.S. EQUITY FUNDS

Renaissance U.S. Equity Value Fund (Class A)


U.S. EQUITY FUNDS

Renaissance U.S. Equity Growth Fund (Class A) Fund Category North American Equity

Morningstar Rating Q

Investment Objective

Performance as of 06-30-2012

To achieve long-term returns through capital growth by investing primarily in common stocks, or investments that can be converted into common stocks, of large companies listed on major U.S. exchanges and that are located in the United States.

Growth of $10,000 14 Fund

12 10 8 6 4

Volatility Analysis

Low

Benchmark A S&P 500 Index

2

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

Total Assets ($mil)

4

4

4

3

4

3

4

3

2

3

4

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

35.2

27.7

18.8

13.4

10.8

8.4

5.6

6.6

9.7

32.1

33.7

-30.2 -16.9 -22.7

3.2 8.5 5.2

-3.0 5.4 3.3

2.0 7.4 1.6

2.3 9.7 15.7

-9.5 -3.7 -10.5

-37.8 -27.2 -21.9

10.1 18.9 8.1

13.9 11.0 9.3

-9.3 -5.5 4.4

-5.5 4.0 9.7

Calendar Year Returns % Best 1 Year Return

Worst 1 Year Return

45.3% 07-31-1996 to 07-31-1997

-41.3% 11-30-2007 to 11-30-2008

Fund Category Benchmark A Trailing Returns %

Fund Details Class

Load Structure

Currency

Fund Code

A A A F F A A A

Back End Charge Front End Charge Low Load Charge No Sales or Redem No Sales or Redem Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD USD USD USD USD

ATL833 ATL913 ATL661 ATL026 ATL027 ATL733 ATL973 ATL761

Inception Date MER Minimum Investment Telephone Web Site

Fund Category Benchmark A

Investment Style

Notes Class F MER: 1.36% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

0.4 1.2 2.5

-10.7 -4.2 -0.8

-5.5 4.0 9.7

-11.9 -2.1 11.4

0.9 7.2 15.1

0.8 6.9 11.4

-9.5 -2.4 -0.6

-5.5 1.0 1.2

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

October 30, 1985 2.75% $500

888 888 FUND www.renaissanceinvestments.ca

1 Mth

Top Ten Holdings

12.4 80.2 4.3 0.0 0.0 0.3 2.9

% Assets

Continental Resources Inc Coca-Cola Co Molycorp, Inc. Noble Energy Inc Occidental Petroleum Corporation

4.3 3.6 3.5 3.1 3.1

Merck & Co Inc Apple, Inc. Novagold Resources, Inc. Walt Disney Co Freeport-McMoRan Copper & Gold Class B

3.0 2.9 2.9 2.7 2.6

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

68 68 64 0

Market Cap

Large Medium Small

%

61.5 22.3 16.2

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

United States Canada Ireland United Kingdom Brazil

% Equity

1.4 15.7 2.4 19.8 13.3 5.7 1.4 7.4 17.7 14.1 1.1 % Assets

81.1 12.4 2.3 2.2 1.1

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios Peter J. Eichler Jr. | 06-19-2008 Aletheia Research and Management, Inc.

Peter J. Eichler Jr. is the Chairman and Chief Executive Officer of Aletheia Research and Management, Inc. which he founded in 1997. Prior to this, Mr. Eichler spent twelve years at Bear, Stearns & Co. as Managing Director. While at Bear Stearns, Mr. Eichler founded the Special Accounts Money Management Division and created the Bear Stearns Insiders Fund. Mr. Eichler has been managing money professionally since 1990. Mr. Eichler is a Registered Investment Advisor and a General Securities Principal. David Bunzel | 06-19-2008 Aletheia Research and Management, Inc.

Mr. Bunzel is Senior Managing Director and Co-Portfolio Manager. Mr. Bunzel is a founding investor in Aletheia and had been involved with the company since its inception in 1997 before joining Aletheia as a coportfolio manager in 2008. He has known and worked with Peter J. Eichler Jr. since Mr. Bunzel started in the business in 1986. He began his career with EF Hutton Asset Management as a portfolio manager and research analyst. Mr. Bunzel managed 3 different funds for the firm, including its flagship growth fund. Mark Scalzo | 06-19-2008

Investment Management Approach The fund delivers the time-tested investment methodologies of Aletheia Research and Management Inc. Aletheia, the classic Greek word for “truth and disclosure” signifies the importance the firm places on proprietary research, which has led to their recognition as one of the top growth managers in the United States. Aletheia takes a bottom-up growth approach to investing in the U.S. large cap equity market. Aletheia employs exclusive, time-tested methodologies to anticipate investor perceptions rather than reacting to them, in order to discover unusually attractive opportunities in pursuit of exceptional returns. The firm pursues exclusive information channels that produce proprietary research, avoiding traditional channels of information, such as Wall Street research or mainstream media. A key strength of the company is its ability to profit from both good and bad news, identifying opportunities to buy and sell gainfully. 1. Aletheia will invest primarily in common stocks that represent diversified industry sectors and broad market capitalization. 2. The firm employs hard data – primarily insider and corporate actions – forensic analysis of balance sheets

and cash flows, and non-biased industry research to guide its investments. 3. Using a bottom-up approach, Aletheia’s research process identifies securities with significant growth in earnings and cash flow. This process also uncovers opportunities in securities that have declined significantly in price or that are misunderstood or mispriced by the market. 4. The investment team screens an initial universe consisting of all publicly traded companies, with a preference given to larger market cap. From this universe, stocks are screened by identifying companies that demonstrate aberrational insider buying by corporate officers and employees, focusing on consensus buying by insiders, absolute dollar amounts of buying by insiders, option exercise behaviour, and forward sales. The result is a diversified portfolio of large cap U.S. growth companies seeking to deliver superior long-term performance. This fund is an excellent addition to a Canadian or global portfolio that seeks exposure to large cap U.S. equities.

Manager Commentary

Aletheia Research and Management, Inc.

Mr. Scalzo is Senior Managing Director and Co-Portfolio Manager. Mr. Scalzo joined Aletheia Research and Management, Inc. in 2008 after working for Ken Fisher at Fisher Investments as a Group Vice President and Head of Mergers & Acquisitions. Prior to December 2006, Mr. Scalzo was a Regional Manager / Managing Director with Putnam Lovell NBF Securities where he spent over 15 years advising public and private companies on mergers & acquisitions in the financial services and real estate industries.

Over the period, the fund’s performance was negatively impacted by ongoing concern regarding Europe’s sovereign debt issues and growing consensus that China’s economic growth rate has been slowing. While the manager believes these macroeconomic issues resulted in investors rapidly switching between negative and positive market sentiments, the manager also believes the net effect over the period – and for much of the previous two years – has been for investors to liquidate their high-quality, growth-oriented equity allocations. The most significant contributors to fund performance over the period included Human Genome Sciences, Inc.; AOL Inc.; The Walt Disney Company; The Coca-Cola Company; and American Eagle Outfitters Inc. The most significant detractors from fund performance over the period included Molycorp, Inc.; OGX Petróleo e Gás Participações S.A.; The Las Vegas Sands Corp.;

Occidental Petroleum Corporation; and Suncor Energy Inc. The manager believes the prevailing investor perception about what defines “safety” and “risk” may ultimately prove incorrect. The manager believes there is evidence some of the most successful investors are protecting themselves in assets that have tangible value (i.e., precious metals, oil, agriculture, etc.) in an effort to insulate themselves from the issues unfolding in sovereign debt and fiat currencies. The manager, therefore, takes great comfort in the fact that the fund is meaningfully invested in companies that are growing their production of many of these important resources. The fund’s holdings that have recently been a drag on performance may, in the manager’s opinion, end up being significant drivers of outperformance. As at June 30, 2012

RENAISSANCE INVESTMENTS 89

U.S. EQUITY FUNDS

Renaissance U.S. Equity Growth Fund (Class A)


U.S. EQUITY FUNDS

Renaissance U.S. Equity Growth Currency Neutral Fund (Class A) Fund Category North American Equity

Morningstar Rating N/A

Investment Objective

Performance as of 06-30-2012

To achieve long-term returns through capital growth by investing primarily in common stocks, or investments that can be converted into common stocks, of large companies listed on major U.S. exchanges and that are located in the United States. The Fund will attempt to reduce its currency exposure to non-Canadian dollar currencies by implementing a currency hedging strategy that is aimed at protecting the Fund from non- Canadian dollar currency fluctuations in respect of units it owns in the Underlying Fund.

Growth of $10,000 15 Fund

Benchmark A S&P 500 Index

14 13 12 11 10 9

Performance Quartile (within category over calendar year)

Volatility Analysis Total Assets ($mil) Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

-1.1% 10-31-2010 to 10-31-2011

-20.6% 05-31-2011 to 05-31-2012

Class

Load Structure

Currency

Fund Code

A A A F

Defer Sales Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL1252 ATL1250 ATL1251 ATL1253

Telephone Web Site

4

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

0.4

10.8

12.0

— -16.9 -22.7

— 8.5 5.2

— 5.4 3.3

— 7.4 1.6

— 9.7 15.7

— -3.7 -10.5

— -27.2 -21.9

— 18.9 8.1

— 11.0 9.3

-12.0 -5.5 4.4

-5.0 4.0 9.7

Calendar Year Returns %

Fund Category Benchmark A Trailing Returns %

Fund Category Benchmark A

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

1.6 1.2 2.5

-12.2 -4.2 -0.8

-5.0 4.0 9.7

-16.7 -2.1 11.4

— 7.2 15.1

— 6.9 11.4

— -2.4 -0.6

-4.7 — —

Portfolio Analysis as of 06-30-2012

Fund Details

Inception Date MER Minimum Investment

4

Composition

October 20, 2010 2.68% $500

888 888 FUND www.renaissanceinvestments.ca

Investment Style

Notes Class F MER: 1.31% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other Top Ten Holdings

12.3 79.6 4.2 0.0 0.0 1.3 2.6

% Assets

Continental Resources Inc Coca-Cola Co Molycorp, Inc. Noble Energy Inc Occidental Petroleum Corporation

4.3 3.6 3.5 3.1 3.1

Merck & Co Inc Apple, Inc. Novagold Resources, Inc. Walt Disney Co Freeport-McMoRan Copper & Gold Class B

2.9 2.9 2.8 2.7 2.6

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

3 68 64 0

Market Cap

Large Medium Small

%

66.2 16.2 17.6

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

United States Canada Ireland United Kingdom Brazil

% Equity

1.4 15.7 2.4 19.8 13.3 5.7 1.4 7.4 17.7 14.1 1.1 % Assets

80.6 12.9 2.2 2.2 1.1

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios Peter J. Eichler Jr. | 10-20-2010 Aletheia Research and Management, Inc.

Peter J. Eichler Jr. is the Chairman and Chief Executive Officer of Aletheia Research and Management, Inc. which he founded in 1997. Prior to this, Mr. Eichler spent twelve years at Bear, Stearns & Co. as Managing Director. While at Bear Stearns, Mr. Eichler founded the Special Accounts Money Management Division and created the Bear Stearns Insiders Fund. Mr. Eichler has been managing money professionally since 1990. Mr. Eichler is a Registered Investment Advisor and a General Securities Principal. David Bunzel | 10-20-2010

Investment Management Approach The Renaissance U.S. Equity Growth Currency Neutral Fund is managed by CIBC Global Asset Management Inc. Aletheia Research and Management Inc. is the investment manager of the underlying fund, the Renaissance U.S. Equity Growth Fund. The underlying fund delivers the time-tested investment methodologies of Aletheia Research and Management Inc. Aletheia, the classic Greek word for “truth and disclosure” signifies the importance the firm places on proprietary research, which has led to their recognition as one of the top growth managers in the United States. Aletheia takes a bottom-up growth approach to investing in the U.S. large cap equity market.

Aletheia Research and Management, Inc.

Mr. Bunzel is Senior Managing Director and Co-Portfolio Manager. Mr. Bunzel is a founding investor in Aletheia and had been involved with the company since its inception in 1997 before joining Aletheia as a coportfolio manager in 2008. He has known and worked with Peter J. Eichler Jr. since Mr. Bunzel started in the business in 1986. He began his career with EF Hutton Asset Management as a portfolio manager and research analyst. Mr. Bunzel managed 3 different funds for the firm, including its flagship growth fund.

Aletheia employs exclusive, time-tested methodologies to anticipate investor perceptions rather than reacting to them, in order to discover unusually attractive opportunities in pursuit of exceptional returns. The firm pursues exclusive information channels that produce proprietary research, avoiding traditional channels of information, such as Wall Street research or mainstream media. A key strength of the company is its ability to profit from both good and bad news, identifying opportunities to buy and sell gainfully.

Mark Scalzo | 10-20-2010

1. Aletheia will invest primarily in common stocks that

represent diversified industry sectors and broad market capitalization. 2. The firm employs hard data – primarily insider and corporate actions – forensic analysis of balance sheets and cash flows, and non-biased industry research to guide its investments. 3. Using a bottom-up approach, Aletheia’s research process identifies securities with significant growth in earnings and cash flow. This process also uncovers opportunities in securities that have declined significantly in price or that are misunderstood or mispriced by the market. 4. The investment team screens an initial universe consisting of all publicly traded companies, with a preference given to larger market cap. From this universe, stocks are screened by identifying companies that demonstrate aberrational insider buying by corporate officers and employees, focusing on consensus buying by insiders, absolute dollar amounts of buying by insiders, option exercise behaviour, and forward sales. The result is a diversified portfolio of large cap U.S. growth companies seeking to deliver superior long-term performance, while managing exchange rate fluctuations. This fund is an excellent addition to a Canadian or global portfolio that seeks exposure to large cap U.S. equities.

Aletheia Research and Management, Inc.

Mr. Scalzo is Senior Managing Director and Co-Portfolio Manager. Mr. Scalzo joined Aletheia Research and Management, Inc. in 2008 after working for Ken Fisher at Fisher Investments as a Group Vice President and Head of Mergers & Acquisitions. Prior to December 2006, Mr. Scalzo was a Regional Manager / Managing Director with Putnam Lovell NBF Securities where he spent over 15 years advising public and private companies on mergers & acquisitions in the financial services and real estate industries.

Manager Commentary Please note that the following commentary is written in consideration of the underlying fund. Over the period, the fund’s performance was negatively impacted by ongoing concern regarding Europe’s sovereign debt issues and growing consensus that China’s economic growth rate has been slowing. While the manager believes these macroeconomic issues resulted in investors rapidly switching between negative and positive market sentiments, the manager also believes the net effect over the period – and for much of the previous two years – has been for investors to liquidate their high-quality, growth-oriented equity allocations.

over the period included Molycorp, Inc.; OGX Petróleo e Gás Participações S.A.; The Las Vegas Sands Corp.; Occidental Petroleum Corporation; and Suncor Energy Inc.

The most significant contributors to fund performance over the period included Human Genome Sciences, Inc.; AOL Inc.; The Walt Disney Company; The Coca-Cola Company; and American Eagle Outfitters Inc.

The manager believes the prevailing investor perception about what defines “safety” and “risk” may ultimately prove incorrect. The manager believes there is evidence some of the most successful investors are protecting themselves in assets that have tangible value (i.e., precious metals, oil, agriculture, etc.) in an effort to insulate themselves from the issues unfolding in sovereign debt and fiat currencies. The manager, therefore, takes great comfort in the fact that the fund is meaningfully invested in companies that are growing their production of many of these important resources. The fund’s holdings that have recently been a drag on performance may, in the manager’s opinion, end up being significant drivers of outperformance.

The most significant detractors from fund performance

As at June 30, 2012

RENAISSANCE INVESTMENTS 91

U.S. EQUITY FUNDS

Renaissance U.S. Equity Growth Currency Neutral Fund (Class A)


U.S. EQUITY FUNDS

Renaissance U.S. Equity Fund (Class A) Fund Category US Equity

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

To seek long-term capital growth by investing primarily in equity securities of companies listed on major U.S. exchanges and/or domiciled primarily in the United States.

Growth of $10,000 10 Fund

Benchmark A S&P 500 Index

9 8 7 6

Volatility Analysis

5 4

Low

Medium

High

Performance Quartile (within category over calendar year)

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Total Assets ($mil)

Best 1 Year Return

Worst 1 Year Return

Calendar Year Returns %

43.1% 08-31-1998 to 08-31-1999

-33.5% 05-31-2008 to 05-31-2009

Fund Category Benchmark A

Fund Details

Trailing Returns %

Class

Load Structure

Currency

Fund Code

A A A F F A A A

Back End Charge Front End Charge Low Load Charge No Sales or Redem No Sales or Redem Back End Charge Front End Charge Low Load Charge

CAD CAD CAD CAD USD USD USD USD

ATL855 ATL911 ATL662 ATL028 ATL097 ATL799 ATL797 ATL798

Inception Date MER Minimum Investment Telephone Web Site

Fund Category Benchmark A

3

2

Investment Style

Notes Class F MER: 1.09% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

3

3

3

3

4

3

1

2

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

128.4

105.4

77.3

47.8

35.3

22.3

12.9

11.8

10.5

10.2

12.2

-24.3 -22.5 -22.7

5.7 6.4 5.2

2.1 2.5 3.3

1.2 2.0 1.6

11.3 12.2 15.7

-11.5 -10.8 -10.5

-27.4 -28.5 -21.9

4.3 10.9 8.1

7.4 10.6 9.3

5.9 -0.4 4.4

7.2 7.9 9.7

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

1.6 2.3 2.5

-1.6 -3.1 -0.8

7.2 7.9 9.7

8.5 3.7 11.4

13.5 12.6 15.1

10.0 9.7 11.4

-3.6 -3.0 -0.6

-0.9 -0.3 1.2

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

October 25, 1996 1.92% $500

888 888 FUND www.renaissanceinvestments.ca

2

Top Ten Holdings

0.0 98.4 0.5 0.0 0.0 0.9 0.2

% Assets

Apple, Inc. International Business Machines Corp Home Depot, Inc. Exxon Mobil Corporation TJX Companies

2.9 2.3 1.9 1.8 1.6

Google, Inc. Class A Comcast Corp Class A Starbucks Corporation Reynolds American Inc Philip Morris International, Inc.

1.5 1.1 1.0 0.9 0.9

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

361 361 359 0

Market Cap

Large Medium Small

%

73.5 26.1 0.4

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

United States Canada Switzerland Ireland

% Equity

6.6 7.5 14.5 5.0 19.8 10.3 1.6 11.4 6.8 16.4 0.0 % Assets

98.4 1.1 0.5 0.1

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios E. Robert Fernholz | 12-01-2008 INTECH Investment Management LLC

E. Robert Fernholz, Ph.D., Chairman of the Investment Committee, founded INTECH in 1987. In 1982, Dr. Fernholz published a paper titled “Stochastic Portfolio Theory and Stock Market Equilibrium,” which became the basis for the INTECH portfolio process. Dr. Fernholz received his Ph.D. in Mathematics from Columbia University and holds an A.B. in Mathematics from Princeton University. Joseph Runnels | 12-01-2008 INTECH Investment Management LLC

Joseph Runnels, CFA, is Vice President, Portfolio Management of INTECH. Mr. Runnels joined INTECH in June of 1998 from QED Information Systems, a software development company providing portfolio management and investment accounting systems. Mr. Runnels spent six years prior to that in portfolio management for the Tennessee Consolidated Retirement System in their fixed income investment division. Mr. Runnels holds a B.S. in Business Administration from Murray State University. Mr. Runnels has earned the right to use the Chartered Financial Analyst designation. Adrian Banner | 12-01-2008 INTECH Investment Management LLC

Adrian Banner, Ph.D., Chief Investment Officer, joined INTECH in August of 2002 and since that time has been an integral part of the firm’s Princeton-based research team. Dr. Banner, who served as the firm’s Co-Chief Investment Officer beginning in 2009, was appointed Chief Investment Officer as of January 1, 2012. Dr. Banner has extensive knowledge of INTECH’s trading systems, optimization programs and research initiatives, both on an operational and theoretical basis and has held various roles as part of INTECH’s Princeton team prior to being named CIO.

Investment Management Approach This Fund benefits from the exceptional discipline and risk management of INTECH Investment Management, LLC (INTECH), who use a proprietary mathematical model to capitalize on the market’s volatility. INTECH’s quantitative strategy captures excess returns from the U. S. equity markets, while eliminating subjective or emotional investment decisions. INTECH employs a mathematical model to capitalize on equity market growth while carefully managing risk. Their strategy seeks to generate excess returns by using the natural volatility and correlation of stocks while carefully managing risk. For this Fund, INTECH invests primarily in common stocks from the S&P 500 Index, selected for their potential contribution to long-term growth of capital. The goal of this process is to build a portfolio of stocks in a more efficient version than the

index. The process seeks to capitalize on the natural volatility of the market by searching for stocks within the index that have high relative volatility (providing the potential for excess returns) but that essentially move in opposite directions or have low correlation to each other (providing the potential for lower relative risk). By constructing the portfolio in this manner and continually rebalancing the portfolio to maintain "efficient" weightings, the mathematical process seeks to create a portfolio that produces returns in excess of its respective benchmark with an equal or lesser amount of risk. The result is a Fund that allows investors to participate in the growth of U.S. equities, one of the world’s largest economies, while managing risk through a highly disciplined investment process. This Fund serves as an excellent U.S. core component of a diversified portfolio.

Manager Commentary There were no changes to the fund’s investment process over the period. According to the manager, the fund offers equity investors a highly disciplined, risk-managed mathematical investment strategy. The manager attempts to achieve a long-term return in excess of the fund’s benchmark, while reducing the risk of significant underperformance relative to that benchmark. The manager’s investment process does not involve predicting individual stock prices. Instead, the manager uses the volatility and correlation characteristics of stocks to construct a fund with the potential to produce returns in excess of the benchmark at benchmark-like risk over the long term.

The manager will continue manage the fund in a disciplined and deliberate manner, with risk management remaining essential. The manager’s highly disciplined investment process is focused on the long term and incorporates a level of risk management that allows for consistent management in varying economic environments. While the fund may experience short periods of underperformance, the manager expects to exceed the fund’s benchmark over a three- to five-year time horizon. The manager will continue implementing changes with the primary goal to improve the long-term results for investors in the fund. As at June 30, 2012

RENAISSANCE INVESTMENTS 93

U.S. EQUITY FUNDS

Renaissance U.S. Equity Fund (Class A)


GLOBAL EQUITY FUNDS

Renaissance International Dividend Fund (Class A) Fund Category International Equity

Morningstar Rating QQ

Investment Objective

Performance as of 06-30-2012

To seek long-term capital growth and income generation by investing primarily in a diversified portfolio of equity securities of foreign companies located in Europe, the Far East and the Pacific Rim.

Growth of $10,000 18 Fund

Benchmark A MSCI EAFE Index

16 14 12 10

Volatility Analysis

8 6

Low

Medium

High

Performance Quartile (within category over calendar year)

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Total Assets ($mil)

Best 1 Year Return

Worst 1 Year Return

Calendar Year Returns %

39.5% 02-28-2003 to 02-29-2004

-39.4% 11-30-2007 to 11-30-2008

Fund Category Benchmark A

Fund Details

Trailing Returns %

Class

Load Structure

Currency

Fund Code

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL856 ATL914 ATL677 ATL032

Inception Date MER Minimum Investment Telephone Web Site

October 25, 1996 2.35% $500

3

2

2

2

4

4

2

3

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

73.0

57.7

41.4

36.7

27.5

14.7

13.6

10.7

7.1

6.5

-18.7 -22.6 -16.5

14.0 12.4 13.8

7.0 9.5 11.9

7.3 11.3 11.2

26.0 23.1 26.4

-1.9 -6.6 -5.3

-32.0 -34.5 -28.8

7.1 13.2 12.5

-0.7 2.6 2.6

-11.1 -12.2 -9.5

3.2 3.1 3.5

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

6.2 4.5 5.4

-3.9 -5.5 -5.0

3.2 3.1 3.5

-9.5 -10.7 -8.5

2.0 2.4 4.3

-0.5 0.9 1.9

-8.6 -8.7 -6.4

-0.8 -0.9 1.5

Fund Category Benchmark A

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other Top Ten Holdings

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

1

2002

Investment Style

Class F MER: 1.27%

3

79.5

888 888 FUND www.renaissanceinvestments.ca

Notes

3

0.0 0.0 99.3 0.0 0.0 0.0 0.7

% Assets

British American Tobacco PLC AstraZeneca PLC Nestle SA Basf SE UPM-Kymmene Oyj

4.6 4.4 3.0 2.7 2.5

Bouygues Royal Boskalis Westminster NV Total SA Statoil ASA Belgacom SA

2.5 2.4 2.3 2.3 2.0

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

113 113 111 0

Market Cap

Large Medium Small

%

78.5 21.5 0.0

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

Japan United Kingdom Australia France Switzerland

% Equity

4.8 8.3 25.2 9.8 8.1 11.2 6.0 12.3 11.0 3.2 0.0 % Assets

21.2 17.4 12.8 9.3 6.3

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios Tom Mermuys | 12-01-2008 Kleinwort Benson Investors Intl Ltd.

Tom Mermuys joined the Dublin office of Kleinwort Benson (formerly KBCAM) in September 2003, having worked as a portfolio manager at Kleinwort Benson (formerly KBCAM) in Brussels since 2002. He graduated in Business Economics from the VLEKHO School of Economics, Brussels in 1999 followed by a Degree in Portfolio Management at EHSAL School of Economics, Brussels in 2002. He has also completed the CEFA (Certified European Financial Analyst) qualification. David Hogarty | 12-01-2008 Kleinwort Benson Investors Intl Ltd.

David Hogarty joined UBIM (now KBCAM) in 1994 as a Client Servicing Manager, moved into Business Development in 1998 and took up his current role as Product Specialist following the launch of the Dividend Plus Strategy in 2003. He previously worked as a private client investment advisor in a private brokerage firm. Mr. Hogarty graduated from University College Dublin with a B.A. in Economics and Politics in 1989.

Investment Management Approach The Fund benefits from the structured, quantitative investment management expertise of Kleinwort Benson Investors to construct a well diversified portfolio of international stocks with high dividend characteristics. Kleinwort Benson Investors follow a highly disciplined quantitative investment strategy to select companies that have a commitment to high levels of income payments. Kleinwort Benson Investors' belief that high dividend yielding companies offer better performance with lower risk drives their investment philosophy. The firm's investment approach considers all stocks, irrespective or mark capitalization, to maximize the size of the opportunity. They primarily select companies that generate high levels of cash and have chosen to pay a

high proportion of it to their shareholders, while avoiding deep value stocks. They also check for dividend sustainability, to avoid stocks that are overpaying relative to their financial strength. Kleinwort Benson Investors invest on a regional and sector-neutral basis relative to the MSCI EAFE Index, allowing them to reduce the risks of industry and regional traps. The result is a well diversified international equity portfolio that provides capital appreciation as well as downside protection. This Fund is an excellent option for investors seeks a conservative approach to investing in international equity markets.

Manager Commentary The period was marked by heightened equity market volatility. In this environment, the fundâ&#x20AC;&#x2122;s holdings continued to deliver above-average profit surprises, increased dividend payouts and low volatility. The dividend strategy employed by the manager was not changed over the period. The managerâ&#x20AC;&#x2122;s segmented approach to stock selection and portfolio construction enables the fund, despite its emphasis on dividends, to invest in all industries â&#x20AC;&#x201C; including those with more of a growth orientation. The fund will continue to invest only in what the manager believes are high-quality, cash-rich companies with strong balance sheets and low levels of debt. The manager believes this strategy should allow the fund to benefit from exposure to companies that are putting their

cash to work through acquisitions, increased dividend payments and share buyback programs. The manager aims to provide consistent returns and is pleased that the fund has been able to deliver relatively solid returns despite the significant market swings over the past few quarters. The manager expects financial market volatility to persist in the short term and believes economic growth will be weak (albeit positive). The manager does not share the economic pessimism currently dominating financial markets, as believes the financial health of the corporate sector should provide strong support to share price valuations. As at June 30, 2012

RENAISSANCE INVESTMENTS 95

GLOBAL EQUITY FUNDS

Renaissance International Dividend Fund (Class A)


GLOBAL EQUITY FUNDS

Renaissance International Equity Fund (Class A) Fund Category International Equity

Morningstar Rating QQQQ

Investment Objective

Performance as of 06-30-2012

To provide long-term capital growth through capital appreciation by investing primarily in a diversified portfolio of equity securities of foreign companies located in Europe, the Far East and the Pacific Rim.

Growth of $10,000 18 Fund

Benchmark A MSCI EAFE Index

16 14 12 10

Volatility Analysis

8 6

Low

Medium

High

Performance Quartile (within category over calendar year)

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Total Assets ($mil)

Best 1 Year Return

Worst 1 Year Return

Calendar Year Returns %

37.6% 03-31-2003 to 03-31-2004

-35.4% 03-31-2002 to 03-31-2003

Fund Category Benchmark A

Fund Details

Trailing Returns %

Class

Load Structure

Currency

Fund Code

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL1869 ATL1868 ATL2869 ATL1644

Inception Date MER Minimum Investment Telephone Web Site

January 2, 2001 2.79% $500

4

3

2

1

4

2

1

1

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

57.0

61.7

53.2

54.7

80.7

40.5

55.4

67.2

61.5

65.6

-23.0 -22.6 -16.5

12.6 12.4 13.8

5.8 9.5 11.9

13.0 11.3 11.2

22.7 23.1 26.4

-2.4 -6.6 -5.3

-15.4 -34.5 -28.8

7.6 13.2 12.5

4.7 2.6 2.6

-9.3 -12.2 -9.5

7.3 3.1 3.5

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

4.3 4.5 5.4

-1.8 -5.5 -5.0

7.3 3.1 3.5

-2.7 -10.7 -8.5

4.2 2.4 4.3

2.4 0.9 1.9

-2.4 -8.7 -6.4

2.3 -0.9 1.5

Fund Category Benchmark A

Portfolio Analysis as of 06-30-2012 Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other Top Ten Holdings

MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

3

2002

Investment Style

Class F MER: 1.42%

1

53.1

888 888 FUND www.renaissanceinvestments.ca

Notes

4

0.0 0.0 97.2 0.0 0.0 2.8 0.0

% Assets

CSL Limited Novo Nordisk A/S Shin-Etsu Chemical Co Ltd CNOOC, Ltd. L'Oreal SA

2.5 2.5 2.3 2.3 2.3

Essilor International SA SGS Ltd. Coca-Cola Amatil Limited Novartis AG Industria De Diseno Textil SA

2.3 2.3 2.3 2.2 2.2

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

54 54 52 0

Market Cap

Large Medium Small

%

96.0 4.0 0.0

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

Japan United Kingdom Australia Switzerland France

% Equity

6.3 11.8 10.8 4.6 12.5 18.4 2.0 7.7 15.6 10.4 0.0 % Assets

26.1 15.2 10.6 8.7 7.0

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

Roy Leckie | 05-01-2004 Walter Scott & Partners Limited

Roy is a director of Walter Scott and, along with Charlie Macquaker, leads the investment management group. He began his career at Walter Scott joining the firm in 1995 and holds a BSc (hons) in Statistics from the University of Glasgow. Other Assets Managed

Since

Renaissance Global Growth Renaissance Glbl Growth Ccy Netrl Cl A Renaissance International Eq Ccy Netrl A

05-04 10-10 10-10

Charles Macquaker | 05-01-2004 Walter Scott & Partners Limited

Charlie is a director of Walter Scott and co-heads the investment management group. He is also currently head of the North American research team. Charlie began his investment career at the Walter Scott joining the firm in 1991. He holds a BSc (hons) in European Studies from Buckingham University. Other Assets Managed

Since

Renaissance Global Growth Renaissance Glbl Growth Ccy Netrl Cl A Renaissance International Eq Ccy Netrl A

05-04 10-10 10-10

The Fund benefits from the conservative and patient, bottom-up growth style of Walter Scott & Partners Limited, a firm that takes a fundamental, long-term investment approach to international equities. Walter Scott invests in high-quality companies with a high return on equity, in industries enjoying aboveaverage, sustainable growth. Their buy and hold approach is focused on stock selection based almost entirely on internal research because of their focus on long-term results. Walter Scott screens more than 3000 companies with proprietary financial analysis tools and narrows the field to approximately 300 companies on which they complete intensive analysis and their seven

proprietary qualitative screens. A stock is selected only after it has received unanimous support of the investment team and typically begins with a 2% weighting in the portfolio. The portfolio’s country allocation is determined as a result of the stock and sector decisions. The result is a buy and hold, lower volatility portfolio of conservative international growth stocks selected using an in-depth bottom-up approach. The Fund is an excellent complement to a domestic portfolio, and as a growth offset for a value-oriented portfolio.

Manager Commentary The enthusiasm shown by equity market investors at the beginning of 2012 was more measured over the period, as market performance was dampened by ongoing sovereign debt concerns in the eurozone. The manager continues to search for companies with a focus on profitable, largely self-funded growth. There were no changes to the fund’s positioning as a result of its exposure to the eurozone (and that region’s sovereign debt and banking issues). In fact, many fund holdings reported strong financial results during the period. The ongoing economic and political issues impacting global equity markets cannot be ignored but, when looking at the current levels of the financial markets, the manager’s outlook is largely positive. Although growth

may be subdued in many markets, the manager believes the world will not stop innovating and developing, which tends to result in gross domestic product growth. With an investment process that focuses on identifying companies with strong growth prospects and sustainable competitive advantages over the long term, the manager’s conversations with the senior management of companies continue to be mostly upbeat. Regardless of market conditions, the manager will maintain a strict focus on the consistent application of the fund’s investment philosophy and process, which is grounded in the long-term outlook for a select number of worldleading companies. As at June 30, 2012

RENAISSANCE INVESTMENTS 97

GLOBAL EQUITY FUNDS

Renaissance International Equity Fund (Class A)


GLOBAL EQUITY FUNDS

Renaissance International Equity Currency Neutral Fund (Class A) Fund Category International Equity

Morningstar Rating N/A

Investment Objective

Performance as of 06-30-2012

To provide long-term capital growth through capital appreciation by investing primarily in a diversified portfolio of equity securities of foreign companies located in Europe, the Far East and the Pacific Rim.The Fund will attempt to reduce its currency exposure to nonCanadian dollar currencies by implementing a currency hedging strategy that is aimed at protecting the Fund from non- Canadian dollar currency fluctuations in respect of units it owns in the Underlying Fund.

Growth of $10,000 14

Volatility Analysis

Fund

Benchmark A MSCI EAFE Index

13 12 11 10 9 8

Performance Quartile (within category over calendar year)

2 2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

0.2

0.7

0.9

— -22.6 -16.5

— 12.4 13.8

— 9.5 11.9

— 11.3 11.2

— 23.1 26.4

— -6.6 -5.3

— -34.5 -28.8

— 13.2 12.5

— 2.6 2.6

-11.7 -12.2 -9.5

8.6 3.1 3.5

Total Assets ($mil) Low

Medium

1

High Calendar Year Returns %

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

-0.5% 03-31-2011 to 03-31-2012

-11.7% 12-31-2010 to 12-31-2011

Fund Category Benchmark A Trailing Returns %

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

Since Inception

4.6 4.5 5.4

-2.7 -5.5 -5.0

8.6 3.1 3.5

-3.8 -10.7 -8.5

— 2.4 4.3

— 0.9 1.9

— -8.7 -6.4

-0.7 — —

Fund Category Benchmark A

Fund Details Class

Load Structure

Currency

Fund Code

A A A F

Defer Sales Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL1242 ATL1240 ATL1241 ATL1243

Inception Date MER Minimum Investment Telephone Web Site

Portfolio Analysis as of 06-30-2012 Composition

October 20, 2010 2.82% $500

888 888 FUND www.renaissanceinvestments.ca

Investment Style

Notes Class F MER: 1.44% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other Top Ten Holdings

0.0 0.0 95.9 0.0 0.0 3.9 0.2

% Assets

CSL Limited Novo Nordisk A/S Shin-Etsu Chemical Co Ltd CNOOC, Ltd. L'Oreal SA

2.5 2.4 2.3 2.3 2.3

Essilor International SA SGS Ltd. Coca-Cola Amatil Limited Novartis AG Industria De Diseno Textil SA

2.2 2.2 2.2 2.2 2.2

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

3 54 52 0

Market Cap

Large Medium Small

%

96.2 3.8 0.0

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

Japan United Kingdom Australia Switzerland France

% Equity

6.3 11.8 10.8 4.6 12.5 18.4 2.0 7.7 15.6 10.4 0.0 % Assets

25.8 15.0 10.5 8.5 6.9

©2012. Morningstar Research Inc. 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. ™Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

Roy Leckie | 10-20-2010 Walter Scott & Partners Limited

Roy is a director of Walter Scott and, along with Charlie Macquaker, leads the investment management group. He began his career at Walter Scott joining the firm in 1995 and holds a BSc (hons) in Statistics from the University of Glasgow. Other Assets Managed

Since

Renaissance Global Growth Renaissance International Equity Renaissance Glbl Growth Ccy Netrl Cl A

05-04 05-04 10-10

Charles Macquaker | 10-20-2010 Walter Scott & Partners Limited

Charlie is a director of Walter Scott and co-heads the investment management group. He is also currently head of the North American research team. Charlie began his investment career at the Walter Scott joining the firm in 1991. He holds a BSc (hons) in European Studies from Buckingham University. Other Assets Managed

Since

Renaissance Global Growth Renaissance International Equity Renaissance Glbl Growth Ccy Netrl Cl A

05-04 05-04 10-10

The Renaissance International Equity Currency Neutral Fund is managed by CIBC Global Asset Management Inc. Walter Scott & Partners Limited is the investment manager of the underlying fund, the Renaissance International Equity Fund. The underlying fund benefits from the conservative and patient, bottom-up growth style of Walter Scott & Partners Limited, a firm that takes a fundamental, longterm investment approach to international equities. Walter Scott invests in high-quality companies with a high return on equity, in industries enjoying aboveaverage, sustainable growth. Their buy and hold approach is focused on stock selection based almost entirely on internal research because of their focus on long-term results. Walter Scott screens more than 5000

companies with proprietary financial analysis tools and narrows the field to approximately 500 companies on which they complete intensive analysis and their seven proprietary qualitative screens. A stock is selected only after it has received unanimous support of the investment team and typically begins with a 2% weighting in the portfolio. The portfolio’s country and sector allocation is a result of those individual stock decisions. The result is a buy and hold strategy selecting portfolio of conservative international growth stocks through an in-depth bottom-up approach. This Fund is an excellent complement to a domestic portfolio, and as a growth offset for a value-oriented portfolio.

Manager Commentary Please note that the following commentary is written in consideration of the underlying fund. The enthusiasm shown by equity market investors at the beginning of 2012 was more measured over the period, as market performance was dampened by ongoing sovereign debt concerns in the eurozone. The manager continues to search for companies with a focus on profitable, largely self-funded growth. There were no changes to the fund’s positioning as a result of its exposure to the eurozone (and that region’s sovereign debt and banking issues). In fact, many fund holdings reported strong financial results during the period. The ongoing economic and political issues impacting global equity markets cannot be ignored but, when

looking at the current levels of the financial markets, the manager’s outlook is largely positive. Although growth may be subdued in many markets, the manager believes the world will not stop innovating and developing, which tends to result in gross domestic product growth. With an investment process that focuses on identifying companies with strong growth prospects and sustainable competitive advantages over the long term, the manager’s conversations with the senior management of companies continue to be mostly upbeat. Regardless of market conditions, the manager will maintain a strict focus on the consistent application of the fund’s investment philosophy and process, which is grounded in the long-term outlook for a select number of worldleading companies. As at June 30, 2012

RENAISSANCE INVESTMENTS 99

GLOBAL EQUITY FUNDS

Renaissance International Equity Currency Neutral Fund (Class A)


GLOBAL EQUITY FUNDS

Renaissance Global Markets Fund (Class A) Fund Category Global Equity

Morningstar Rating QQQQ

Investment Objective

Performance as of 06-30-2012

To obtain long-term growth of capital and income by investing primarily in equity and debt securities on a worldwide basis.

Growth of $10,000 12 Fund

Benchmark A MSCI World Index

11 10 9

Volatility Analysis

8 7 6 Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

Total Assets ($mil) Best 1 Year Return

Worst 1 Year Return

33.9% 03-31-1997 to 03-31-1998

-40.0% 02-28-2008 to 02-28-2009

Fund Details

Fund Category Benchmark A

Load Structure

Currency

Fund Code

Trailing Returns %

A A A F

Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD

ATL1873 ATL1029 ATL2873 ATL1647

Fund Category Benchmark A

Telephone Web Site

3

4

3

4

1

4

3

1

1

4

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

95.1

78.8

58.0

37.4

44.7

231.0

172.9

186.1

196.9

202.2

209.1

-20.8 -17.4 -20.4

6.9 10.6 9.4

2.3 6.4 6.9

4.3 5.8 7.3

14.5 18.0 20.2

5.9 -6.6 -7.1

-34.9 -29.3 -25.4

14.5 14.3 11.1

16.8 6.5 6.5

0.6 -7.5 -2.7

-0.5 4.7 6.4

Calendar Year Returns %

Class

Inception Date MER Minimum Investment

3

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

1.1 3.2 3.5

-3.5 -5.0 -3.0

-0.5 4.7 6.4

-3.7 -4.7 1.0

8.6 5.7 9.7

9.0 4.8 6.8

-2.2 -5.1 -3.2

0.9 0.3 1.6

Portfolio Analysis as of 04-30-2012 January 11, 1993 2.70% $500

Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

888 888 FUND www.renaissanceinvestments.ca

Investment Style

Top Ten Holdings

Notes Class F MER: 1.13% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

7.9 26.0 52.5 0.0 0.0 12.5 1.2

% Assets

Jardine Matheson Holdings Ltd. British American Tobacco PLC Swatch Group AG Imperial Tobacco Group PLC Compagnie Financiere Richemont SA

8.5 6.0 5.4 5.1 4.5

Genting Malaysia Bhd. Schindler Holding AG Canadian Natural Resources Ltd Nestle SA Philip Morris International, Inc.

4.3 4.1 4.0 3.9 3.8

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

39 39 36 0

Market Cap

Large Medium Small

%

94.5 0.2 5.3

Global Equity Sectors

Utilities Energy Financials Materials Consumer Discretionary Consumer Staples Telecommunication Services Industrials Health Care Information Technology Unclassified Top 5 Countries

United States Canada Switzerland United Kingdom Hong Kong

% Equity

0.0 7.0 12.7 4.7 23.4 33.6 0.0 15.5 0.0 3.2 0.0 % Assets

26.3 21.2 18.7 14.3 9.3

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Manager Bios

Investment Management Approach

David J. Winters | 10-01-2006 Wintergreen Advisers, LLC

David Winters is the managing member of Wintergreen Advisers. Prior to forming Wintergreen Advisers in May 2005, he held various positions with Franklin Mutual Advisers, LLC, including, president, chief executive officer and chief investment officer, and he was a research analyst for Heine Securities Corporation, the former investment manager for the Franklin Mutual Series Fund. Winters holds the Chartered Financial Analyst designation. Other Assets Managed

Since

Renaissance Optimal Global Equity Port Renaissance Optimal Glbl Eq Pt Elite T4 Renaissance Optimal Glbl Eq Pt Elite T6 Renaissance Optimal Glbl Eq Pt Elite T8 Renaissance Optimal Glbl Eq Pt Elite Cl Renaissance Optimal Glbl Eq Pt Sel T4 Cl Renaissance Optimal Glbl Eq Pt Sel T6 Cl Renaissance Optimal Glbl Eq Pt Sel T8 Cl Renaissance Optimal Glbl Eq Port Sel Cl Renaissance Optimal Glbl Eq Port T4 Cl

10-06 10-06 10-06 10-06 10-06 10-06 10-06 10-06 10-06 10-06

The Fund benefits from the highly successful, deep value investment approach to global equity of David J. Winters, exclusively available in Canada through Renaissance Investments. David J. Winters of Wintergreen Advisers employs a deep-value style to managing equities by investing in undervalued and distressed companies that are currently out of favour with the broader market, but whose solid prospects demonstrate signs for a significant return on investment. In picking stocks for the Fund, he favours a tight portfolio of companies where senior management often act like long-term owners of the business. Mr. Winters’ stock selection is based on the strength of his conviction, where he carefully follows companies waiting for their prices to fall to a level where he

believes they are seriously undervalued. In order to provide consistent returns over the long term, flexibility is key. As a result, Mr. Winters has the ability to invest in companies of any size, in any geographic region or sector. He may also take advantage of arbitrage opportunities and distressed securities in the global market. The result is a flexible, high conviction, go-anywhere deep value global portfolio that is less correlated to market returns than typical active managers, has low turnover and is focused on providing consistent returns over time. The Fund’s lower correlation with major markets makes it an excellent diversifying complement to a portfolio.

Manager Commentary Over the second quarter of 2012, the manager took advantage of fluctuating equity markets to add several names to the fund. The manager also increased the fund’s positions in select companies that have what the manager believes are relatively strong long-term growth prospects. The manager believes the companies held by the fund are well positioned for the current economic climate and should continue to perform well.

optimistic about the prospects for global equity markets. The manager will continue to seek opportunities to invest in new names that meet the fund’s investment criteria when they become available at what the manager believes are attractive prices. The manager will also continue to look for opportunities to increase the fund’s positions in companies that have what the manager believes are strong long-term growth prospects.

Despite negative headlines, the manager remains

As at June 30, 2012

RENAISSANCE INVESTMENTS 101

GLOBAL EQUITY FUNDS

Renaissance Global Markets Fund (Class A)


GLOBAL EQUITY FUNDS

Renaissance Optimal Global Equity Portfolio (Class A) Fund Category Global Equity

Morningstar Rating QQQ

Investment Objective

Performance as of 06-30-2012

To seek long-term capital appreciation by investing primarily in units of global and/or Canadian mutual funds.

Growth of $10,000 12 Fund

Benchmark A MSCI World Index

11 10 9

Volatility Analysis

8 7 6 Medium

Low

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky.

Performance Quartile (within category over calendar year)

Total Assets ($mil) Best 1 Year Return

Worst 1 Year Return

36.9% 02-28-2003 to 02-29-2004

-37.8% 09-30-2000 to 09-30-2001

Portfolio Details

Fund Category Benchmark A

Load Structure

Currency

Fund Code

Trailing Returns %

A A A Sel Sel Sel Elite Elite Elite F

Back End Charge Front End Charge Low Load Charge Back End Charge Front End Charge Low Load Charge Back End Charge Front End Charge Low Load Charge No Sales or Redem

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD

ATL1903 ATL1902 ATL2903 ATL2421 ATL2419 ATL2420 ATL2424 ATL2422 ATL2423 ATL1652

Fund Category Benchmark A

Telephone Web Site

Investment Style

4

3

4

4

1

3

1

2

4

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

53.4

50.8

39.4

100.1

80.2

52.6

31.8

30.7

27.3

22.3

20.0

-28.6 -17.4 -20.4

14.1 10.6 9.4

2.4 6.4 6.9

5.1 5.8 7.3

14.1 18.0 20.2

-11.7 -6.6 -7.1

-21.1 -29.3 -25.4

14.8 14.3 11.1

10.5 6.5 6.5

-7.1 -7.5 -2.7

-0.6 4.7 6.4

1 Mth

3 Mth

6 Mth

1Yr

2Yr

3Yr

5Yr

10Yr

1.7 3.2 3.5

-5.9 -5.0 -3.0

-0.6 4.7 6.4

-8.2 -4.7 1.0

4.0 5.7 9.7

3.8 4.8 6.8

-3.6 -5.1 -3.2

0.3 0.3 1.6

Portfolio Analysis as of 06-30-2012 Actual Composition

% Assets

Canadian Equity U.S. Equity International Equity Fixed Income Fixed Inc <1yr to mat Cash Other

February 16, 2000 2.73% $500

888 888 FUND www.renaissanceinvestments.ca

2

Calendar Year Returns %

Class

Inception Date MER Minimum Investment

4

Top 5 Global Equity Sectors

Consumer Discretionary Industrial Financials Consumer Staples Materials

9.6 33.4 50.0 0.1 0.0 4.6 2.2

% Equity

15.6 14.3 12.6 12.4 11.0

Market Cap

Large Medium Small

%

71.4 19.6 9.0

Top Holdings

% Assets

Renaissance Global Markets Fund, Class 'O' Renaissance Global Value Renaissance Global Focus Fund, Class 'O' Renaissance Global Infrastructure Fund, Class 'O' Renaissance Global Small Cap

25.1 25.1 24.6 15.2

Total Number of Portfolio Holdings Total Number of Underlying Holdings Total Number of Stock Holdings Total Number of Bond Holdings

7 491 477 0

10.1

Notes T-class units also available. Class F MER: 1.43% MER annualized as at February 29, 2012. Please refer to the Annual/Interim Management Reports of Fund Performance for further details.

Š2012. Morningstar Research Inc. 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. â&#x201E;˘Renaissance Investments is offered by and is a registered trademark of CIBC Asset Management Inc. All fund performance is reported net of fees, benchmark data is reported gross of fees. This may impact a direct comparison between the fund and its benchmark.


Investment Management Overview Investment Managers David J. Winters | 10-01-2006 Wintergreen Advisers, LLC Management Team | 06-01-2009 Aletheia Research and Management, Inc. Management Team | 05-01-2005 NWQ Investment Management Co LLC Management Team | 02-01-2000

Investment Management Approach The Fund combines the investment expertise of five world-class management teams to deliver a welldiversified, automatically rebalanced, multi manager approach to global equities. The strategic mix of some of Renaissance Investments’ top global funds creates the potential to generate higher returns in all types of economic cycles.

Wellington Management Company, LLP Management Team | 08-20-2007 RARE Infrastructure Limited

Aletheia Research & Management, Inc. manages 25% of the portfolio. Aletheia employs exclusive, time-tested methodologies to anticipate investor perceptions rather than reacting to them, in order to discover unusually attractive opportunities in pursuit of exceptional returns. The firm pursues exclusive information channels that produce proprietary research, avoiding traditional channels of information, such as Wall Street research or mainstream media. A key strength of the company is its ability to profit from both good and bad news, identifying opportunities to buy and sell gainfully. NWQ Investment Management Company, LLC manages 25% of the portfolio using their fundamental, long-term approach to global equity. The firm employs a bottom-up value approach to stock selection, actively seeking out undervalued companies with catalysts to improve profitability or unlock value. In a market fuelled by emotion, NWQ strips away the subjectivity to search for objective value and has maintained an unwavering commitment to value investing since the firm’s founding in 1982. Discipline, collaboration and accountability remain the cornerstones of their culture. RARE Infrastructure Limited manages 15% of the portfolio bringing one of the world’s most experienced global infrastructure investment teams with more than

70 years combined expertise. The firm applies a combination of quantitative and qualitative assessments to select a concentrated portfolio of stocks from more than 40,000 global listed securities. For the 10% global small-cap component, the Fund draws upon Wellington Management, LLP. Wellington’s global small cap philosophy is based on their core belief that the small-cap market is inefficient. Using intensive fundamental research with a global perspective, they aim to exploit these inefficiencies. Wintergreen Advisers, LLC manages the final 25% of the fund utilizing the highly successful opportunistic investment approach to global equity of David J. Winters. Mr. Winters uses an opportunistic style to managing equities by investing in undervalued and distressed companies that are currently out of favour with the broader market, but whose solid prospects demonstrate signs for a significant return on investment. In picking stocks for the Fund, he favours a tight portfolio of companies where senior management often acts like long-term owners of the business. Mr. Winters’ stock selection is based on the strength of his conviction, where he carefully follows companies waiting for their prices to fall to a level where he believes they are seriously undervalued. The end result is an optimal mix of Renaissance funds which will provide investors with exposure to a broad range of investment managers, asset classes and regions designed to capture the best global market opportunities.

RENAISSANCE INVESTMENTS 103

GLOBAL EQUITY FUNDS

Renaissance Optimal Global Equity Portfolio (Class A)


GLOBAL EQUITY FUNDS

Renaissance Optimal Global Equity Currency Neutral Portfolio (Class A) Fund Category Global Equity

Morningstar Rating N/A

Investment Objective

Performance as of 06-30-2012

To seek long-term capital appreciation by investing primarily in units of global and/or Canadian mutual funds. The Fund will attempt to reduce its currency exposure to non-Canadian dollar currencies by implementing a currency hedging strategy that is aimed at protecting the Fund from non- Canadian dollar currency fluctuations in respect of units it owns in the Underlying Fund.

Growth of $10,000 15

Medium

High

Volatility (low-high): The lower the volatility ranking, the lower the risk of the fund. Funds with a volatility ranking of high are the most risky. Best 1 Year Return

Worst 1 Year Return

-2.6% 10-31-2010 to 10-31-2011

-14.2% 05-31-2011 to 05-31-2012

Portfolio Details Class

Load Structure

Currency

Fund Code

A A A Elite Elite Elite F Sel Sel Sel

Defer Sales Charge Front End Charge Low Load Charge Defer Sales Charge Front End Charge Low Load Charge No Sales or Redem Defer Sales Charge Front End Charge Low Load Charge

CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD

ATL1267 ATL1265 ATL1266 ATL1275 ATL1273 ATL1274 ATL1268 ATL1272 ATL1270 ATL1271

Inception Date MER Minimum Investment Telephone Web Site

14 13 12 11 10 9

Performance Quartile (within category over calendar year)

Volatility Analysis

Low

Fund

Benchmark A MSCI World Index

October 20, 2010 2.82% $500

888 888 FUND www.renaissanceinvestments.ca

Total Assets ($mil)

3

4

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

YTD

0.6

1.1

1.1

— -17.4 -20.4

— 10.6 9.4

— 6.4 6.9

— 5.8 7.3

— 18.0 20.2

— -6.6 -7.1

— -29.3 -25.4

— 14.3 11.1

— 6.5 6.5

-9.1 -7.5 -2.7

-0.7 4.7 6.4

Calendar Year Returns %

Fund Category Benchmark A Trailing Returns %

Fund Category Benchmark A

1 Mth

3 Mth

6 Mth

1Yr