IFM Quarterly Compliance Report

The Quarterly Compliance Report for pooled funds provides a comprehensive summary of the fund’s performance, unitholder information, and operational insights, with a focus on risk management, market outlook, and compliance with relevant regulatory frameworks. This report serves as an essential tool for maintaining transparency, ensuring adherence to investment mandates and facilitating communication among key stakeholders.

Purpose of the Quarterly Compliance Report

The purpose of the Quarterly Compliance Report is to provide a snapshot of the fund’s status for a period of three months, this report is vital for assessing the fund's performance, risk, and compliance with legal and regulatory requirements. They also act as a formal record of discussions between the PM, PM Supervisor and the Chief Compliance Officer (CCO). The report highlights the following areas:

1. Fund Information: The fund's risk rating and any changes in its risk profile are noted, helping ensure that the fund remains within its risk tolerance as well as any significant changes in the fund’s assets under management (AUM)

        2. Unitholder Information: This includes details on the number and type of investors, specifying which prospectus exemptions were applied

1. Accredited Investor Exemption under NI 45-106 section 1.1: Indicates the number of exemptions utilized, ensuring compliance with investment limits and eligibility criteria
2. Purchases by Province: Provides a breakdown of geographical purchases in Saskatchewan, Manitoba and Quebec, which can be useful for regulatory compliance

3. Top Redemptions (Over 5% of Fund AUM): Identifies significant redemptions in the fund those that exceed 5% of the fund's AUM providing a transparent view of investor movements
4. Cash Net Settlements (Trading): The figure reflects the net cash inflow/outflow that occurred in the fund during the reporting period
5. LOI Corrections: This section addresses any trading errors within the fund and ensures the corrections were made accordingly
6. Fund Return: This section displays the fund’s performance during various time periods. Periods included are quarterly, year to date, since inception and others depending on the overall age of the fund. As reporting guidelines state, only returns of periods which are over a year in length are annualized.
7. Market Outlook and Commentary: This provides insights from the Portfolio Managers about their general market outlook and how portfolios are positioned, whether there have been any changes in philosophy, any anticipated changes in direction or philosophy going forward, addition of new types of investment products (or anticipated) and any news impacting past and future valuations of underlying holdings

Quarterly Compliance Reporting Process

The compliance reports are prepared by the Investment Fund Management (IFM) team and reviewed internally. Upon completion, these reports are sent to be reviewed and signed by the Portfolio Manager, the Supervising Portfolio Manager (ACPI Head Office Employee), and the Chief Compliance Officer of IFM to confirm their accuracy and compliance. Final copies of the Quarterly Compliance Reports are stored internally only for ACPI Head Office access.

In addition to the Quarterly Compliance Report, quarterly or semi-annual touchpoint meetings are scheduled between the PMs and members of ACPI Head Office including the Supervising Portfolio Manager, the Chief Compliance Officer, Finance, IFM Team members, Trading and Legal. These meetings allow for a detailed discussion of the findings in the quarterly compliance report, provide updates of important dates coming up for the fund and provides an opportunity for the PM to address any other topics with ACPI Head Office.

NOTES:

• Please ensure that only the below section of the Quarterly Compliance Report is signed by the Portfolio Manager of the fund, other areas requiring signature are for ACPI Head Office employees specifically
• For more detailed information or questions, please reach out to the IFM Team