World Financial Split Corp.

Quick Facts+

Inception Date: 02-17-2004

Management Fee: 1.1%

Service Fee Class A: 0.4%

Fund Overview

Overview

The Fund is a split share corporation which invests in common equity securities selected from the ten largest financial services companies by market capitalization in each of Canada, the United States and the Rest of the World. The Fund utilizes Strathbridge’s proprietary SSO covered call writing strategy to enhance the income generated by the portfolio and to reduce volatility.

 

Objectives

The Fund’s investment objectives are:

  • to provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions in the amount of $0.13125 per Preferred share representing a yield on the issue price of the Preferred shares of 5.25% per annum;
  • to provide holders of Class A shares with regular quarterly cash distributions targeted to be 8.0% per annum; and
  • to return the issue price to holders of both Preferred Shares and Class A Shares at the time of redemption of such shares on the termination date.

 

Name Ticker Current Yield Recent
Distributions
Most Recent
Distribution Date
Distributions
Since Inception
World Financial Split Corp. WFS.PR.A 6.10% $0.13 2020-06-30 $8.59
World Financial Split Corp. WFS N/A $0.00 2013-12-31 $5.54

Top Holdings Top 10 Holdings as of March 31, 2020

Holding Name % of Fund
Cash and Short-term 11.9%
Berkshire Hathaway Inc. 7.2%
BlackRock, Inc. 7.1%
Sun Life Financial Inc. 6.6%
Brookfield Asset Management Inc. 6.4%
Bank of America Corporation 5.9%
Aon Public Limited Company 5.8%
CME Group Inc. 5.2%
The Charles Schwab Corporation 4.6%
Royal Bank of Canada 4.3%
Geographic Allocations

Historic Net Asset Value Per Unit

The fund calculates the net asset value per share on a weekly basis as of the close of business on Thursday and generally posts the amount at the close of business on Friday. If the last day of a month falls during the week on a day other than Thursday, the NAVs per share are calculated as of the last day of the month for that week and the regular weekly calculation on Thursdays is resumed the following week.

 

Date:   Basic NAV Per
Class A Share
Diluted NAV
Per Class A Share
NAV Per
Preferred Share
2020-07-09    $0.43  N/A  $10.00 
2020-06-30    $0.41  N/A  $10.00 
2020-06-25    $0.50  N/A  $10.00 
2020-06-18    $0.65  N/A  $10.00 
2020-06-11    $0.52  N/A  $10.00 
2020-06-04    $1.06  N/A  $10.00 
2020-05-29    $0.72  N/A  $10.00 
2020-05-21    $0.39  N/A  $10.00 
2020-05-14    $0.32  N/A  $10.00 
2020-05-07    $0.57  N/A  $10.00 
2020-04-30    $0.70  N/A  $10.00 
2020-04-23    $0.38  N/A  $10.00 
2020-04-16    $0.40  N/A  $10.00 
2020-04-09    $0.92  N/A  $10.00 
2020-03-31    $0.17  N/A  $10.00 
2020-03-26    $0.20  N/A  $10.00 
2020-03-19    $0.00  N/A  $9.47 
2020-03-12    $0.00  N/A  $9.63 
2020-03-05    $2.17  N/A  $10.00 
2020-02-28    $2.31  N/A  $10.00 
2020-02-20    $4.03  N/A  $10.00 
2020-02-13    $3.96  N/A  $10.00 
2020-02-06    $3.89  N/A  $10.00 
2020-01-31    $3.41  N/A  $10.00 
2020-01-23    $3.76  N/A  $10.00 
2020-01-16    $3.76  N/A  $10.00 
2020-01-09    $3.67  N/A  $10.00 

Distributions & Tax

Preferred shares pay fixed cumulative preferential quarterly cash distributions in the amount of $0.13125 per Preferred share representing a yield on the issue price of the Preferred shares of 5.25% per annum.

Class A shares have a targeted distribution of $0.30 per quarter resulting in an 8.0% yield on the original issue price of $15.00. Distributions on the Class A shares are suspended in accordance with the prospectus when the Net Asset Value per Unit is less than $15.00.

 

Most Recent Distributions

Name Ticker Current Yield* Recent
Distributions
Most Recent
Distribution Date
Distributions
Since Inception
World Financial Split Corp. WFS.PR.A 6.10% $0.13 2020-06-30 $8.59
World Financial Split Corp. WFS N/A $0.00 2013-12-31 $5.54

 

Tax Benefits

Distributions from the Fund may have significant tax benefits which result in higher after-tax cash flow than if the income had been earned outside of the Fund. Distributions on the Preferred Shares will generally be classified as dividend income or a return of capital for tax purposes. It is expected that the distributions on the Class A shares will mainly be comprised of capital gains or return of capital. To the extent that any portion of the distribution is ordinary taxable dividends and not capital gains dividends, they will be eligible dividends. The Fund will generally earn dividends on portfolio securities, interest income on cash balances and option premium income which is generally taxed as capital gains. Some portion of a distribution may be considered a return of capital for tax purposes, which is not included in an investor’s taxable income for a year, but will reduce the adjusted cost base of the shares, by the amount received. The reduction in the adjusted cost base of the shares is ultimately taxed as a capital gain when the shares are sold for investors who hold their shares as capital property.

The actual breakdown of distributions for tax purposes will be provided to unitholders annually in March following receipt of the information from the Fund's custodian. This information will also be posted on the website as soon as it is available.

This information is of a general nature only and does not constitute legal or tax advice to any particular investor. Accordingly, prospective investors are advised to consult their own tax advisors with respect to their individual circumstances.

 

Note:

For the 2007 taxation year, to the extent that any portion of the distributions are ordinary taxable dividends and not capital gains dividends, they will be eligible dividends.

 

Tax and Distribution Summary - WFS.PR.A Year Selection:  

 

  Regular Distribution Special Distribution Total Distribution Capital Gains
per Unit
Div. Income per Unit Return of Capital Other Income Foreign Dividend Income Witholding Taxes Paid
June 2020 0.131250 0.000000 0.131250 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
March 2020 0.131250 0.000000 0.131250 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
Total for 2020     $0.262500 $0.000000 $0.000000 $0.000000 $0.000000 $0.000000 $0.000000
Percent (%)       0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Distributions
to Date
    $8.593100            

 

Tax and Distribution Summary - WFS

 

  Regular Distribution Special Distribution Total Distribution Capital Gains
per Unit
Div. Income per Unit Return of Capital Other Income Foreign Dividend Income Witholding Taxes Paid

 

Portfolio Manager Updates

 

PM Updates - March 2020

As of March 31, 2020, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $10.17 versus $13.50 on December 31, 2019.
Preferred shareholders received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.
The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. The last traded price on March 31, 2020 was $7.36 and $0.75 respectively which, when combined, represents an 20.3% discount to the NAV.
The volatility experienced in the first quarter of 2020 has been truly historic across all asset classes as global markets and economies have been gripped by the pandemic COVID-19 (Coronavirus) which has infected over 2 million plus individuals to date while causing over 129,000 fatalities so far. After reaching all-time highs in the third week of February 2020, North American equity markets declined in the mid-30% range to the low reached on March 23rd, before rallying 15%-20% to end the quarter. Central banks and governments around the globe have responded with unprecedented monetary and fiscal policies to prop up economies and keep funding markets open.
The total return for the S&P/TSX Composite Index during the first quarter was -20.9%, while S&P 500 Index had a total return of -19.6%. All eleven sectors in the S&P/TSX Composite Index declined in the first quarter with the Information Technology sector outperforming, but still down 3.7%, while the Energy sector continued its underperformance of the past few years, declining 37.2% as the price of oil, as measured by WTI Cushing OK Spot, dropped 66.5%. In the U.S., the Information Technology sector also outperformed but still declined 11.9%, while the Energy sector was also the worst performing south of the border, down 50.5%.
During the period, the MSCI World Financial Services Index declined 31.8% to $85.17 from $125.73. The total return of the Fund during the quarter was -24.7%. Stocks held within the portfolio had varying returns led by BlackRock Inc., which had a total return of -11.8% while held in the portfolio. At the other end of the spectrum, Metlife, Inc. declined 41.1% while held in the Fund.
Volatility, as measure by the CBOE Volatility Index (“VIX”), spiked as markets corrected, reaching a high of 85.5 on March 18th, the highest level since October 2008 during the Great Financial Crisis. Due to the high volatility, the manager was more aggressive with the Strathbridge Selective Overwriting (“SSO”) strategy as the Fund had on average 24.1% of portfolio written during the period vs. 13.2% on average during the previous quarter.
The Fund had an average cash position of 6.3% during the quarter vs. 5.5% during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter approximately 50% hedged back into Canadian dollars.

PM Updates - December 2019

As of December 31, 2019, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $13.50 versus $13.24 on September 30, 2019.

Preferred shareholders received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. The last traded price on December 30, 2019 was $10.05 and $3.08 respectively which, when combined, represents an 2.7% discount to the NAV.
North American equity markets continued their impressive rally from the first three quarters of 2019 with most indices ending the year near all-time highs. U.S. markets led the way in the fourth quarter on expectations a trade resolution between the U.S. with China was to be announced in early 2020. The total return for the S&P/TSX Index in the fourth quarter was 3.2%, while the S&P 500 Index had a total return of 9.1%. In Canada, 7 of 11 sectors generated a positive total return for the quarter, with Information Technology sector leading the way up 10.8%, while Health Care lagged for the third consecutive quarter, down 5.9%, as Cannabis stocks continued to decline. The U.S. market saw 10 of 11 sectors generate positive performance, with the Information Technology sector also leading the way, up 14.4%, while the defensive Real Estate sector lagged during the quarter, down 0.5%.

During the period, the MSCI World Financial Services Index rose strongly to $125.73 from $116.12. Stocks held within the portfolio had varying returns led by Bank of America Corporation, which had a total return of 21.4% while held in the portfolio. At the other end of the spectrum, The Travelers Companies, Inc. declined 11.7% while held in the Fund.

Volatility levels as measured by the CBOE SPX Volatility Index (“VIX”) were at the low end of the range for most of the period. The manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy as the Fund had on average 13.2% of portfolio written during the period vs. 12.2% on average during the previous quarter.

The Fund had an average cash position of 5.0% during the quarter vs. 5.0% during the previous quarter. The Fund ended the period with a cash position of 4%. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter 50% hedged back into Canadian dollars.

PM Updates - September 2019

As of September 30, 2019, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $13.24 versus $12.93 on June 28, 2019.

Preferred shareholders received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on September 30, 2019 with a bid price of $9.60 and a last traded price of $2.56 respectively which, when combined, represents an 8.1% discount to the NAV.

North American equity markets continued their impressive rally from the first half of 2019, as markets in the third quarter continued to price in expectations that central banks around the world would be more accommodative with interest rate cuts. The S&P/TSX Index rose 2.5% while the S&P 500 Index rose 1.7%. In Canada, 9 of 11 sectors were positive for the quarter, with the defensive TSX Utilities Index leading the way up 10.1%, while Health Care lagged for the second consecutive quarter, down 30%, weighed down significantly by Cannabis stocks. The U.S. market saw 8 of 11 sectors generate positive performance, with the defensive S&P 500 utilities sector leading the way, up 9.3%, while the Energy sector remained the laggard during the quarter, down 6.3%.

During the period, the MSCI World Financial Services Index declined slightly to $116.12 from $116.51. Stocks held within the portfolio had varying returns led by Brookfield Asset Management Inc., which had a total return of 12.6% during the period. At the other end of the spectrum, Ameriprise Financial Inc. declined 9.1% while held in the portfolio.

Volatility levels as measured by the CBOE SPX Volatility Index (“VIX”) remained low for most of the period other than the brief spike in early August as equity markets pulled back on trade war concerns and the potential effect on the economy. The manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy as the Fund had on average 12.2% of portfolio written during the period vs 20.9% on average during the previous quarter.

The Manager reduced the cash position during the period with the Fund’s average cash position at 5.0% for the quarter vs. 10.7% during the previous quarter. The Fund ended the 3rd quarter with a cash position of 5.8%. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter 50% hedged back into Canadian dollars.

PM Updates - June 2019

As of June 28, 2019, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $12.93 versus $13.00 on March 29, 2019.

Preferred shareholders received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on June 28, 2019 with a bid price of $9.90 and a last price of $2.41 respectively which, when combined, represents a 4.8% discount to the NAV.

North American equity markets continued their impressive rally from the first quarter of 2019, albeit volatile as markets rose in April, declined significantly in May and advanced strongly in June. Markets have priced in expectations that central banks around the world would be more accommodative with interest rate cuts. The S&P/TSX Index rose 1.7% while the S&P 500 Index rose 3.8%. In Canada, 7 of 10 sectors were positive for the quarter, with Information Technology leading the way up 14.2%, while Health Care lagged down 9.3%. The U.S. market saw 10 of 11 sectors generate positive performance, with the Financials sector leading the way, up 7.4%, while Energy was the lone sector to be in the red during the quarter, down 3.7%.

During the period, the MSCI World Financial Services Index increased to $116.51 from $110.95. Stocks held within the portfolio had varying returns led by Bank of America Corp. which had a total return of 14.0% during the period. At the other end of the spectrum, China Life Insurance Co. declined 13.4% while held in the portfolio.

Volatility levels as measured by the CBOE SPX Volatility Index (“VIX”) remained low for most of the period other than the brief spike in early May as equity markets corrected on trade war concerns and the effect on the economy. The manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy as the Fund had on average 19.9% of portfolio written during the period vs. 13.4% on average during the previous quarter.

The Manager reduced the cash position during the period with the Fund’s average cash position at 10.7% for the quarter vs. 13.3% during the previous quarter. The Fund ended the 2nd quarter with a cash position of 3.2%. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter 50% hedged back into Canadian dollars.

PM Updates - March 2019

As of March 29, 2019, the Net Asset Value “NAV” of a combined unit (WFS.PR.A + WFS) was $13.00 versus $12.72 on December 31, 2018.

Preferred shareholders received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on March 29, 2019 with a bid price of $9.71 and $2.72 respectively which, when combined, represents a 4.4 percent discount to the NAV.

After a dreadful fourth quarter of 2018, North American equity markets staged an impressive recovery in the first quarter of 2019 with the S&P/TSX Index advancing 13.3 percent while the S&P 500 Index rose 13.6 percent. As fears of a trade war between the United States and China subsided and central banks around the globe changed to a more accommodative stance on forward looking interest rates, risk assets rallied strongly. In Canada, all 11 sectors were positive for the quarter, with Health Care, the worst performing sector in Q4 leading the way, producing a 49.1 percent return, mostly due to strength in the Cannabis sector. The U.S. market also saw all 11 sectors generate positive performance, with the Information Technology sector leading the way, up 19.9 percent, while the defensive U.S. Health Care sector lagged, up 6.6 percent.

During the period, the MSCI World Financial Services Index increased to 110.95 from 103.04. Stocks held within the portfolio had varying returns led by Brookfield Asset Management Inc. which had a total return of 19.4 percent during the period. At the other end of the spectrum, the CME Group Inc. declined 8.8 percent while held in the portfolio.

As equity markets rallied, volatility declined, as measured by the Chicago Board Options Exchange Volatility Index. (“VIX”) After starting the year above 25, the VIX declined for most of the period ending the quarter just under 14. The manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy and the Fund had on average 13.4 percent of portfolio written during the period vs. 15.1 percent on average during the previous quarter.

The Manager reduce the cash position during the period with the Fund’s average cash position at 11.6 percent for the quarter vs. 16.0 percent during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the quarter 50 percent hedged back into Canadian dollars.

PM Updates - December 2018

As of December 31, 2018, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $12.72 versus $13.59 on September 28, 2018.

Preferred shareholders received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on December 31, 2018 with a bid price of $9.41 and $2.05 respectively which, when combined, represents a 9.9% discount to the NAV.

North American markets were dreadful in the 4th quarter of 2018, with the S&P/TSX Index declining 10.1% while the S&P 500 Index declined 13.5%, weighed down by the implications of tighter global monetary policy, trades wars, soaring valuations along with heightened geopolitical risks. In Canada, 8 of 11 sectors were negative for the quarter, with Health Care leading the way down, producing a negative 35.3% return, mostly due to weakness in the Cannabis sector. The U.S. market saw 10 of 11 sectors generate negative performance, with Energy leading all declines down 23.8%, while the defensive Utilities sector was the lone sector with a positive return in the quarter, up 1.4%.

During the period, the MSCI World Financial Services Index declined to $103.04 from $120.15. Stocks held within the portfolio had varying returns led by CME Group Inc. which had a total return of 18.3% during the period. At the other end of the spectrum, The Toronto-Dominion Bank declined 12.8% in the fourth quarter.

Equity volatility, as measured by the Chicago Board Options Exchange Volatility Index (“VIX”), started the quarter around 12 and accelerated into year-end, closing above 25. The rise in volatility created more opportunities to utilize the Strathbridge Selective Overwriting (“SSO”) strategy. The Fund had on average 15.1% of portfolio written during the period vs. 6.8% on average during the previous quarter.

The Manager became more cautious during the period and increased the Fund’s average cash position to 16.0% for the quarter vs. 11.5% during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the third quarter 50% hedged back into Canadian dollars.

PM Updates - September 2018

As of September 28, 2018, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $13.59 versus $13.77 on June 29, 2018.

Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on September 28, 2018 with a bid price of $9.95 and $3.52 respectively which, when combined, represents a 0.9% discount to the NAV.

North American markets were mixed in the 3rd quarter, with the Canadian S&P/TSX Index declining 0.6% and the U.S. S&P 500 Index gaining 7.7%. In the Canadian market, 6 of 11 sectors were positive for the quarter, with Health Care leading the way up 31.1% due to strength in the Cannabis sector. The U.S. market saw 8 of 11 sectors with positive performance, also led by Health Care up 14.1%, while the Real Estate, Energy and Materials sectors lagged the broader market with negative returns.

During the period, the MSCI World Financial Services Index increased to 120.15 from 117.65. Stocks held within the portfolio had varying returns led by Brookfield Asset Management Inc. which had a total return of 8.2% during the period. At the other end of the spectrum, Northern Trust Corp. declined 8.0% while held in the Fund.

Equity volatility, as measured by the Chicago Board Options Exchange Volatility Index (“VIX”), remained low and traded in a narrow range between 10 and 16 for most of the quarter. The Fund opportunistically wrote call options during the period as the Fund on average had 6.8% of portfolio written during the period vs. 9.5% on average during the previous quarter.

Due to the 7-year extension of the Fund at the end of June as well as the retraction privilege provided to shareholders, the Fund held an average cash position of 11.5% during the period vs. 9.0% during the previous quarter. The U.S. dollar exposure was actively hedged throughout the period and ended the third quarter 75% hedged back into Canadian dollars.

PM Updates - June 2018

As of June 29, 2018, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $13.77 versus $14.31 on March 29, 2018.

Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on June 29, 2018 with a bid price of $9.95 and $3.55 respectively which, when combined, represents a 2.0% discount to the NAV.

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

During the period, the MSCI World Financial Services Index declined to $117.65 from $124.14. Stocks held within the portfolio had varying returns led by Fairfax Financial Holdings Ltd. which had a total return of 7.3% during the period. At the other end of the spectrum, Spanish bank Banco Santander S.A. declined 17.2% while held in the Fund.

After spiking above 50 in early February, volatility, as measured by the Chicago Board Options Exchange Volatility Index (“VIX”) drifted back towards the low levels witnessed over the past few years. The Fund still opportunistically wrote call options during the period as the Fund on average had 9.5% of portfolio written vs. 9.8% during the previous quarter.

The Fund held an average cash position of 9.0% during the period vs. 6.4% during the previous quarter. The U.S. dollar exposure was 50% hedged back into Canadian dollars throughout the period.

PM Updates - March 2018

As of March 29, 2018, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $14.31 versus $14.85 on December 29, 2017.

Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on March 29, 2018 at $10.10 and $3.90 respectively which, when combined, represents a 2.9% discount to the NAV.

Global equity markets experienced heightened volatility in the first quarter of 2018, on fears surrounding rising interest rates, trade policy and market valuations. The S&P/TSX Composite Index lagged most other indices losing 4.5%, while in the U.S., the S&P 500 Index was down 0.76% and the international MSCI EAFE Index was down 1.58%.

During the period, the MSCI World Financial Services Index declined to 124.14 from 127.26. Stocks held within the portfolio had varying returns led by CME Group Inc. which generated a total return of 11.2% during the period. At the other end of the spectrum, Affiliated Managers Group declined 12.2% while held in the Fund.

Volatility, as measured by the Chicago Board Options Exchange Volatility Index (“VIX”) picked up in the first quarter of 2018 after touching new all-time lows in late November 2017. As a result, the call writing activity picked up as the Fund on average had 9.8% of portfolio written during the period vs. 3.6% on average during the previous quarter.

The Fund ended the quarter with a cash position of 7.7% vs. 3.4% the previous quarter. The U.S. dollar exposure was 50% hedged back into Canadian dollars throughout the period.

PM Updates - December 2017

As of December 29, 2017, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $14.85 versus $14.29 on September 29, 2017.

Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on December 29, 2017 at $10.15 and $4.30 respectively which, when combined, represents a 2.7% discount to the NAV.

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

During the period, the MSCI World Financial Services Index advanced to $127.26 from $120.88. Stocks held within the portfolio had varying returns led by Blackrock, Inc. which was up 15.8%. This was offset by our holding in Intercontinental Exchange, Inc. which declined 5.4%, while held within the Fund.

Volatility levels, as measure by the Chicago Board Options Exchange Volatility Index (“VIX”) remained at the lower end of its historical range, touch new all-time lows in late November, which adds to the challenge of overwriting. However, this low level of volatility and the manager’s favourable view on the market provided an opportunity to purchase calls options on select names while limiting the call writing activity over the period. The Fund on average had 3.6% of portfolio written during the period vs. 3.3% on average during the previous quarter.

The Fund ended the quarter with a cash position of 3.4% vs. 2.9% the previous quarter.

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

PM Updates - September 2017

As of September 29, 2017, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $14.29 versus $13.98 on June 30, 2017.

Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on September 29, 2017 at $10.10 and $3.81 respectively which, when combined, represents a 2.7% discount to the NAV.

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

During the period, the MSCI World Financial Services Index advanced to 120.88 from 115.32. Stocks held within the portfolio had varying returns led by Banco de Chile which was up 15.6%. This was offset by our holding in The Charles Schwab Corporation which declined 10.3%, while held within the Fund.

Volatility remained subdued overall during the period with only a few days where it spiked towards 16. Due to our favourable view on the market as well as the low level of volatility, the call writing activity was limited over the period. The Fund on average had 3.3% of portfolio written during the period vs. 5.7% on average during the previous quarter.

The Fund ended the quarter with a cash position of 2.9% vs. 2.6% the previous quarter.

The U.S. dollar was mostly hedged back into Canadian dollars throughout the period and ended September with approximately 100% of the U.S. dollar exposure hedged, helping negate some of the negative impact of the 3.9% decline in the U.S. dollar vs. the Canadian dollar during the quarter.

PM Updates - June 2017

As of June 30, 2017, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $13.98 versus $13.70 on March 31, 2016.

Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on June 30, 2017 at $9.95 and $3.75 respectively which, when combined, represents a 2% discount to the NAV.

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

During the period the MSCI World Financial Services Index advanced to 115.32 from 110.54. Stocks held within the portfolio had varying returns led by insurer ING Groep N.V. which was up 15.4%. This was offset by our holding in Westpac Banking Corporation which declined 7.5%, while held within the Fund.

While volatility remained subdued overall, it spiked for a brief period in the middle in April and May before drifting back toward historically low levels. The call writing activity was opportunistic over the period and took advantage of signals generated by the Strathbridge Selective Overwriting (“SSO”) strategy. The Fund ended June 30, 2017 with 3.7% of the Fund subject to covered calls vs. 1.1% the previous quarter.

The Fund ended the quarter with a cash position of 2.6% vs. 4.2% the previous quarter.

The U.S. dollar was mostly hedged back into Canadian dollars throughout the period and ended June with approximately 100% of the U.S. dollar exposure hedged, helping negate some of the negative impact of the 3.5% decline in the U.S. dollar vs. the Canadian dollar during the quarter.

PM Updates - March 2017

As of March 31, 2017, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $13.70 versus $13.74 on December 31, 2016.

Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on March 31, 2017 at $10.20 and $3.41 respectively which, when combined, represent a $0.09 discount to the NAV.

Global equity markets for the most part continued their strong post-Trump election rally into the first quarter of 2017. The Nasdaq Composite Index was one of the strongest performing indices in the first quarter with a total return of 10.1 %, while the S&P 500 Index in the U.S. was up 3.8%. Here in Canada, the S&P/TSX Composite Index rose 2.4%.

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

During the period, the MSCI World Financial Services Index advanced to 110.54 from 106.18. Stocks held within the portfolio had varying returns led by insurer China Life Insurance Co. Ltd. which was up 18.4%. This was offset by our holding in Northern Trust Corp. which declined 8.8% while held within the Fund.

Volatility as measured by the CBOE Volatility Index (VIX) remained at the low end of the range it has been trading at over the past few years, namely in the 10.5% to 13.0% range. The Fund stayed open on most of the portfolio during the period but did selectively write some covered calls and ended the quarter with 1.1% of the portfolio written vs. none at the end of the previous quarter.

The Fund ended the year with a cash position of 4.2%, unchanged from the previous quarter. The Fund ended the period with a geographic asset mix of 24% invested in Canada; 43% invested in the United States and 33% invested in the Rest of World.

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

PM Updates - December 2016

As of December 31, 2016, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $13.74 versus $12.19 on September 30, 2016.

Preferred shareholders received a distribution of $0.13125 per share, while the distribution for the Class A share remained suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on December 30, 2016 at $10.00 and $3.76 respectively which, when combined, represent a $0.02 premium to the NAV.

Most global equity markets rallied strongly in the fourth quarter of 2016 with the majority of the performance coming after the election of Donald Trump as the President of the United States on November 8, 2016. The S&P/TSX Composite Index rose 4.5% while the S&P 500 Index in the U.S. was up 3.8%. Meanwhile, Asian markets declined during the period, dragging the international MSCI EAFE Index down 0.6%.

During the period, the MSCI World Financial Services Index advanced to 106.18 from 93.06. The Financials sector was by far the best performing sector in the fourth quarter on expectations of a steeper yield curve and less regulation. Stocks held within the portfolio had varying returns led by an insurer, Lincoln National Corporation, which was up 37.9%. This was offset by our holding in Canadian Imperial Bank of Commerce which declined 3.9% while held within the portfolio.

Volatility moved higher heading into the U.S. election as the Chicago Board Options Exchange Volatility Index (VIX) went from 13% on October 24th to 22.5% on November 4th. After the election, volatility declined swiftly hitting a low for the year on December 21st at 10.9%. The Fund stayed open on most of the portfolio during the period but did selectively write some covered calls and ended the quarter with nil% of the portfolio written vs. 5.1% at the end of the previous quarter.

The Fund ended the year with a cash position of 4.2% vs. 5.7% at the end of the previous quarter. The Fund ended the period with a geographic asset mix of 25% invested in Canada; 48% invested in the United States and 27% invested in the Rest of World.

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

PM Updates - September 2016

As of September 30, 2016, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $12.19 versus $11.92 on June 30, 2016.

Preferred shareholders received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on September 30, 2016 at $9.76 and $1.92 respectively which, when combined, represent a 4.2% discount to the NAV.

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

During the period, the MSCI World Financial Services Index advanced to 93.06 from 87.58. Stocks held within the portfolio had varying returns led by the SPDR S&P Regional Banking ETF which was up 12.1% (while held in the Fund) due to its leverage to a steepening U.S. yield curve. This was offset by our holdings in Wells Fargo & Company which declined 9.7%, with most of the decline coming after September 8th when it was fined US$190 million to settle a fraud case.

Volatility was range bound during the period as the Chicago Board Options Exchange Volatility Index (“VIX”) traded in a range of 10% to 15%. The Fund stayed open on most of the portfolio during the period but did selectively write some covered calls and ended the quarter with 5.1% of the portfolio written vs. 3.7% at the end of the previous quarter.

The Fund maintained an average cash position of 6.0% during the period vs. 7.1% at the end of the previous quarter. The Fund ended the period with a geographic asset mix of 22% invested in Canada; 52% invested in the United States and 26% invested in the Rest of World.

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

PM Updates - June 2016

As of June 30, 2016, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $11.92 versus $12.57 on March 31, 2016.

Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on June 30, 2016 at $9.70 and $1.95 respectively which, when combined, represent a 2.3% discount to the NAV.

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

During the period, the MSCI World Financial Services Index declined to 87.58 from 90.32. Stocks held within the portfolio had varying returns led by Aflac which was up 15.5% during the period. The U.S. insurer was helped by a strengthening Yen which benefitted the translation of their Japanese insurance division’s earnings. This was offset by our holding in another insurer, Lincoln National Corp., which was down 15.5% while held in the Fund with most of the decline occurring post “Brexit” as 10-year US Treasury Yields declined 28 basis points from June 23rd to June 30th to end the quarter at 1.47%.

After a fairly volatile first quarter of 2016, the Chicago Board Options Exchange Volatility Index (VIX) retreated for most of the second quarter before briefly spiking on the “Brexit” news on June 23rd. Volatility stayed elevated only for a few days before declining as markets staged a meaningful rally into quarter-end. The Fund was active in its covered-call writing during the period and ended the quarter with 3.7% of the portfolio written vs. 9.3% at the previous quarter-end.

The Fund maintained a lower average cash position of 7.1% during the period vs. an average of 15.5% for the first quarter. The Fund ended the period with a geographic asset mix of 33.7% invested in Canada; 56.2% invested in the United States and 10.1% invested in the Rest of World.

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

PM Updates - March 2016

As of March 31, 2016, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $12.57 versus $13.37 on December 31, 2015.

Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on March 31, 2016 at $9.69 and $2.02 respectively which, when combined, represent a 6.8% discount to the NAV.

Global equity market performance was “A Tale of Two Cities” in the first quarter of 2016. From the start of the year up to the lows on February 11, 2106, most global indices over 10% due to concerns surrounding global growth. The WTI Crude Oil spot price declined over 30% during the same period. Since then, many markets have advanced over 10% erasing most if not all of the losses incurred earlier in the year as global macroeconomic indicators started to show some signs of improvement. By the end of the quarter, the S&P/TSX Composite advanced 4.5%, the S&P 500 Index advanced 1.3%, while the WTI Crude Oil spot price ended the period down only 0.5% to end at US$36.94 per barrel.

During the period the MSCI World Financial Services Index declined to $90.32 from $97.02. Stocks held within the portfolio had varying returns led by Bank of Nova Scotia (“BNS”), which was up 13.8% during the period. This was offset by Japanese Bank Mitsubishi UFJ Financial which declined 27.2% while held in the portfolio.

After a fairly stable fourth quarter of 2015, the Chicago Board Options Exchange Volatility Index (“VIX”) rose on the back of market weakness in January and February up to the 30 level which was last observed in August of 2015. The VIX has subsequently declined back to around 14, the low end of the range over the past few years. The Fund was active in its covered-call writing during the period and ended the quarter with 9.3% of the portfolio written vs. 4.0% at the end of the previous quarter.

The manager actively altered the cash position during the period and ended the quarter at 11.7%. The Fund ended the period with a geographic asset mix of 51% invested in Canada; 40% invested in the United States and 9% invested in the Rest of World.

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

PM Updates - December 2015

As of December 31, 2015, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $13.37 versus $13.19 on September 30, 2015.

Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on December 31, 2015 at $9.90 and $3.05 respectively which, when combined, represent a 3.1% discount to the NAV.

Global equity markets mostly advanced in the fourth quarter of 2015 with strong gains generated in October partially offset by weakness in December. The S&P 500 Index advanced 7.0% during the period, while the S&P/TSX Composite was an exception as it declined 1.4% due to weak commodity prices emanating from concerns surrounding slower growth in China and other emerging markets.

During the period, the MSCI World Financial Services Index advanced to 97.02 from 93.50. Stocks held within the portfolio had varying returns led by Public Storage (“PSA”), a basket holding which was up 22.05% since we purchased it. This was offset somewhat by CME Group Inc., another basket holding, which declined 8.7% since we purchased it.

After a fairly volatile third quarter, the Chicago Board Options Exchange Volatility Index (“VIX”) declined in the fourth quarter to an average level of 17.1 for the period. The Fund was active in its covered-call writing during the period and ended the quarter with 4.0% of the portfolio written vs. 22.0% at the end of the previous quarter.

As investment opportunities arose, the Fund’s cash position was reduced during the period with an average cash position of 7.5% and ended the quarter at 4.0% vs. 24.1% at the end of the previous quarter.

The Fund ended the period with a geographic asset mix of 31.6% invested in Canada; 59.7% invested in the United States and 8.7% invested in the Rest of World. The Fund also ended the period with approximately 50% hedged back to the Canadian dollar.

PM Updates - September 2015

As of September 30, 2015, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $13.19 versus $14.40 on June 30, 2015.

Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on September 30, 2015 at $10.00 and $3.30 respectively which, when combined, represent a 0.8% premium to the NAV.

Global equity markets were down across the board in the third quarter of 2015 due to concerns surrounding slower growth in emerging market economies (most notably China) and the effects on global growth. Global indices were down anywhere from 6.9% for the S&P 500 Index to 28.6% for the Shanghai SE A Share market, with the flash crash on August 24th contributing most of the weakness. The resource heavy S&P/TSX Composite was also down 8.6% during the quarter, due to its dependence on emerging market’s demand for its resources.

During the period, the MSCI World Financial Services Index declined to 93.5 from 103.81. Stocks within the portfolio had varying degrees of performance led by Progressive Corp., a basket stock which was up 18.3% since we purchased it. This was somewhat offset by our holding of Deutsche Bank AG, which declined 19.1% since we bought it.

Volatility was fairly subdued in July and the first half of August, but started to rise after the FOMC meeting in August when the minutes revealed there was less of chance for the Federal Reserve to embark on its first tightening cycle in over a decade. The Chicago Board Options Exchange Volatility Index (“VIX”) spiked over 45% to a level of 40.74 on August 24th, the same day as the flash crash when the Dow Jones Industrial Average was down more than 1,000 points intraday. The Fund was active in its covered-call writing during the period and ended the quarter with 22.0% of the portfolio written.

The Manager became more cautious and increased the Fund’s cash during the period. The Fund had an average cash position of 14.7% and ended the quarter at 24.1% vs. 1.6% in the previous quarter.

The Fund ended the period with a geographic asset mix of 19% invested in Canada; 65% invested in the United States and 16% invested in the Rest of World. The Fund also ended the period with approximately 70% hedged back to the Canadian dollar.

PM Updates - June 2015

As of June 30, 2015, the Net Asset Value (“NAV”) of a combined unit (WFS.PR.A + WFS) was $14.40 versus $14.17 on March 31, 2015.

Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS.PR.A and WFS. They closed on March 31, 2015 at $9.98 and $4.51 respectively which, when combined, represent a 0.6% premium to the NAV.

Global equity markets generated mixed returns in the second quarter of 2015 due to concerns surrounding whether Greece would exit the Eurozone or not. European markets felt most of the brunt of “Grexit” risk as the DAX 30 in Germany and CAC 40 in France declined 8.5% and 4.8% respectively. Although the Shanghai Class A market declined 7.2% in June, it was still the top performing market globally in the 2nd quarter, rising 14%.

During the period, the MSCI World Financial Services Index (in U.S. dollar terms) advanced slightly to 103.81 from 102.97 on March 31, 2015.

Volatility during the quarter remained towards the low end of the range it has traded in the past few years. The Fund has been selective in its covered call writing and ended the quarter with 1.9% of the portfolio written.

The Fund maintained a high investment position during the majority of the period and ended the quarter with a cash position of 1.6% vs. 1.1% at the end of the previous quarter.

The Fund ended the period with a geographic asset mix of 17% invested in Canada; 60% invested in the United States and 23% invested in the Rest of World.
The Fund also ended the period with approximately 80% hedged back to the Canadian dollar.

PM Updates - March 2015

As of March 31, 2015, the Net Asset Value of a combined unit (WFS.PR.A + WFS) was $14.17 versus $13.92 on December 31, 2014. Preferred shareholder’s received a distribution of $0.13125 per share, while the distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

On March 31, 2015 the closing market price of the Preferred shares and the Class A shares was $10.15 and $3.51 respectively which, when combined, represent a 3.6% discount to the NAV.

Global equity markets advanced in the first quarter of 2015, albeit at differing degrees as Europe, China and Japan led the way on optimism that recent quantitative easing measures by their respective central bank would have a similar effect that it did for U.S. markets.

During the period the MSCI World Financial Services Index (in Canadian dollar terms) advanced to $130.55 from $119.36. The U.S. Financials returns were helped by the weaker Canadian dollar which depreciated 8.4% during the quarter vs. the U.S. dollar.

After starting off 2015 at elevated levels, volatility slowly declined to end the first quarter at the low end of the range for the past few years. The Fund has been selective in its covered-call writing and ended the quarter with 1.4% of the portfolio written.

The Fund maintained a high investment position during the majority of the period and ended the quarter with a cash position of 1.1% vs. 1.3% at the end of the previous quarter.

The fund ended the period with a geographic asset mix of 8% invested in Canada; 57% invested in the United States and 35% invested in the Rest of World. The Fund also ended the period with approximately 22% hedged back to the Canadian dollar.

PM Updates - December 2014

As of December 310, 2014, the Net Asset Value (“NAV”) of a combined unit was $13.92 versus $13.28 on September 30, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS and WFS.PR.A. They closed on September 30, 2014 at $3.45 and $9.85 respectively which, when combined, represent a 4.5% discount to the NAV.

A quarterly distribution of $0.13125 per Preferred Share was declared and paid to preferred shareholders of record December 15, 2014, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

Most global equity markets retreated in the early part of the fourth quarter of 2014 on concerns around the U.S. Federal Reserve ending quantitative easing in October, a substantial decline in energy commodity prices as well as deflation risks surrounding Europe and Japan. However, most markets rebounded strongly into the end of the year as U.S. payrolls continued to strengthen and third quarter GDP in the U.S. came in well above expectations at 5%.

During the period the MSCI World Financial Services Index (in Canadian dollar terms) advanced to 119.36 from 114.01. The Financial Services indices in the 3 geographic regions had varying total returns during the quarter with the S&P/TSX Capped Financials Index up 1.9%, the S&P 500 Financials Index up 11.1% and the MSCI EAFE Financials Index up 0.6%, all measured in Canadian dollars. Both the U.S. and International Financials returns were helped by the weaker Canadian dollar which depreciated 3.6% during the quarter to end at $0.86 per U.S. dollar.

Volatility levels remained at the low end of the range for most of the period and the Fund was less active with its covered call writing. The Fund ended the quarter with 1.4% of the portfolio subject to covered calls.

The Fund maintained a high investment position during the majority of the period and ended the quarter with a cash position of 1.3% vs. 0.9% at the end of the previous quarter.

The Fund’s portfolio ended the period with a geographic asset mix of 18% invested in Canada; 71% invested in the United States and 11% invested in the Rest of World. The Fund maintained its overweight exposure to the U.S. during the quarter while maintaining an underweight position in the Rest of World Financials due to expectation of higher economic growth in North America.

The U.S. dollar hedge was maintained at the minimum level required during the quarter and ended the period with approximately 22% hedged back to the Canadian dollar.

PM Updates - September 2014

As of September 30, 2014, the Net Asset Value of a combined unit was $13.28 versus $12.94 on June 30, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS and WFS.PR.A. They closed on September 30, 2014 at $2.85 and $9.86 respectively which, when combined, represent a 4.3% discount to the NAV.

A quarterly distribution of $0.13125 per Preferred Share was declared and paid to preferred shareholders of record September 15, 2014, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

Many global equity markets reached all-time highs during the third quarter of 2014 before retreating into the end the period due to concerns around slowing global growth as well as deflation risks surrounding Europe and Japan. U.S. equities outperformed Canadian and International stocks during the period, especially when converted into Canadian dollars as the U.S. dollar rose 4.7% vs. the loonie.

During the period the MSCI World Financial Services Index (in Canadian dollar terms) advanced to 114.02 from 111.01. The Financial Services indices in the 3 geographic regions had varying total returns during the quarter with the S&P/TSX Capped Financials Index up 2.7%, the S&P 500 Financials Index up 7.5% and the MSCI EAFE Financials Index up 0.3%, all measured in Canadian dollars. Both the U.S. and International Financials returns were helped by the weaker Canadian dollar.

Volatility levels remained at the low end of the range for most of the period but did start to rise towards the end of September as the S&P 500 started to sell off after reaching an all-time high on September 19, the same day that Chinese e-commerce company Alibaba became the biggest initial public offering ever. Due to the low level of volatility, the Fund was less active with its covered call writing during the period and ended with 5.4% of the portfolio subject to covered calls.

The Fund maintained a high investment position during the majority of the period and ended the quarter with a cash position of 0.9% vs. 2.8% at the end of the previous quarter that was used to finance the annual concurrent retraction.

The Fund’s portfolio ended the period with a geographic asset mix of 35% invested in Canada; 54% invested in the United States and 11% invested in the Rest of World. The Fund maintained its overweight exposure to the U.S. and Canadian Financials during the quarter while maintaining an underweight position in the Rest of World Financials due to better economic growth in North America.

The U.S. dollar hedge was reduced during the quarter and ended the period with approximately 22% hedged back to the Canadian dollar.

PM Updates - June 2014

As of June 30, 2014, the Net Asset Value (“NAV”) of a combined unit was $12.94 versus $12.91 on March 31, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS and WFS.PR.A. They closed on June 30, 2014 at $2.68 and $9.84 respectively which, when combined, represent a 3.2% discount to the NAV.

A quarterly distribution of $0.13125 per Preferred Share was declared and paid to preferred shareholders of record June 13, 2014, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

After posting mixed returns during the first quarter of 2014, global equity markets resumed their uptrend in the second quarter, as economic data out of the U.S. started to rebound from the weakness driven by harsh weather experienced this past winter.

During the period the MSCI World Financial Services Index (in Canadian dollar terms) declined slightly to 111.01 from 112.60. The Financial Services indices in the 3 geographic regions had varying total returns during the quarter with the S&P/TSX Capped Financials Index up 5.7%, the S&P 500 Financials Index down 1.1% and the MSCI EAFE Financials Index down 0.8%, all measured in Canadian dollars. The Canadian dollar reversed its downtrend from the first quarter by rising 3.5% during the period to 93.7 cents vs. the U.S. dollar.

Volatility levels remained at the low end of the historical range during the period. Due to the low level of volatility, the Fund was less active with its covered call writing during the period and ended with 2.6% of the portfolio subject to covered calls.

The Fund maintained a high investment position during the majority of the period and ended the quarter with a cash position of 2.8% vs. 4.4% in the previous quarter that was used to finance the annual concurrent retraction.

The Fund’s portfolio ended the period with a geographic asset mix of 38.4% invested in Canada; 44.3% invested in the United States and 17.3% invested in the Rest of World. The U.S. dollar exposure was actively hedged during the quarter and ended the period with approximately 50% hedged back to the Canadian dollar.

The global economy is expected to continue to improve in 2014, although there is still uncertainty of how the economy will react to less monetary stimulus as the U.S. Federal Reserve continues to exit its quantitative easing program. The valuations of companies in the portfolio generally remain at reasonable levels when measured by price to earnings ratios and current dividend yields which should continue to provide support for share prices.

PM Updates - March 2014

As of March 31, 2014, the Net Asset Value (“NAV”) of a combined unit was $12.91 versus $12.94 on December 31, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS and WFS.PR.A. They closed on March 31, 2014 at $2.87 and $9.80 respectively which, when combined, represent a 1.9% discount to the NAV.

A quarterly distribution of $0.13125 per Preferred Share was declared and paid to Preferred shareholders of record March 14, 2014, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

After performing strongly in 2013, global equity markets posted mixed returns for the first quarter of 2014 due to geo-political tension between Ukraine and Russia as well as concerns that U.S. Federal Reserve might start to raise interest rates sooner than expected.

During the period, the MSCI World Financial Services Index (in Canadian dollar terms) increased to 112.60 from 108.29. The Financial Services indices in the 3 geographic regions all rose during the quarter with the S&P/TSX Capped Financials Index up 2.5%, the S&P 500 Financials Index up 6.6% and the MSCI EAFE Financials Index up 3.7%, all measured in Canadian dollars. The Canadian dollar declined by 3.8% during the period to 90.5 cents vs. the U.S. dollar.

Volatility levels rose briefly at the end of January to around 21.5 after it was reported that Russian troops were occupying Crimea, an autonomous republic of Ukraine. The CBOE SPX Volatility Index (“VIX”) averaged just under 15 for the first quarter of 2014. The Fund continued with its active approach to covered call writing during the period and ended the first quarter with 18.1% of the portfolio subject to covered calls.

The Fund maintained a high investment position during the majority of the period and ended the quarter with a cash position of 4.4% vs. 1.6% at the end of the previous quarter.

The Fund’s portfolio ended the period with a geographic asset mix of 34% invested in Canada; 41% invested in the United States and 25% invested in the Rest of World. The U.S. dollar exposure was actively hedged during the quarter and ended the period with approximately 50% hedged back to the Canadian dollar.

The global economy is expected to continue to improve in 2014, although there is still uncertainty of how the economy will react to less monetary stimulus as central banks start to exit their quantitative easing programs. The valuations of companies in the portfolio generally remained at reasonable levels when measured by price to earnings ratios and current dividend yields which should continue to provide support for share prices.

PM Updates - December 2013

As of December 31, 2013, the Net Asset Value (“NAV”) of a combined unit was $12.94 versus $12.09 on September 30, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS and WFS.PR.A. They closed on December 31, 2013 at $2.70 and $9.76 respectively which, when combined, represent a 3.7% discount to the NAV.

A quarterly distribution of $0.13125 per Preferred Share was declared and paid to preferred shareholders of record December 13, 2013, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

Global equity markets continued to advance in the fourth quarter of 2013 with many indices finishing the year at new all-time highs reflecting improved global economic data and accommodative central bank monetary policy.

During the period the MSCI World Financial Services Index (in Canadian dollar terms) increased to $108.29 from $97.79. The Financial Services indices in the 3 geographic regions rose sharply during the quarter with the S&P/TSX Capped Financials Index up 10.7%, the S&P 500 Financials Index up 10.3% and the MSCI EAFE Financials Index up 9.8%, all measured in Canadian dollars.

Volatility levels rose briefly at the start of the period as the U.S. Government shut down for 16 days in October as brinkmanship ruled the day. The CBOE SPX Volatility Index (“VIX”) rose to over 20 but quickly retraced and ended 2013 at the lower end of the range over the last twenty years. The Fund was not very active with its covered call writing during the period and ended the quarter with no covered calls.

The Fund maintained a high investment position during the majority of the period and ended the quarter with a cash position of 1.6% vs. 2.4% at the end of the previous quarter.

The Fund’s portfolio ended the period with a geographic asset mix of 37% invested in Canada; 44% invested in the United States and 19% invested in the Rest of World. The U.S. dollar exposure was actively hedged during the quarter and ended the period with approximately 50% hedged back to the Canadian dollar.

The Global Financial Services companies demonstrated stronger fundamentals and profitability in 2013 due to declining credit losses, stronger capital market related revenues and improving loan growth. Although interest rates continue to remain low by historical standards, longer term rates rose throughout the year which should help improve net interest margins at the banks and also improve reinvestment rates for insurance companies.

The global economy is expected to continue to improve in 2014, there is still uncertainty of how the economy will react to less monetary stimulus as central banks start to exit their quantitative easing programs. The valuations of companies in the portfolio generally remain at reasonable levels when measured by price to earnings ratios and current dividend yields which should continue to provide support for share prices.

PM Updates - September 2013

As of September 30, 2013, the Net Asset Value (NAV) of a combined unit was $12.09 versus $11.42 on June 30, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS and WFS.PR.A. They closed on September 30, 2013 at $2.11 and $9.85 respectively which, when combined, represent a $0.13 (1.1%) discount to its NAV.

A quarterly distribution of $0.13125 per Preferred Share was declared and paid to preferred shareholders of record on September 16, 2013, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

Global equity markets continued their rally from the first two quarters of 2013 on improved global economic data and also after U.S. Federal Reserve Chairman, Ben Bernanke, surprised the market by delaying the tapering of quantitative easing at the Federal Open Market Committee meeting in September.

During the period, the MSCI World Financial Services Index (in Canadian dollar terms) increased from 92.86 to 97.79. The Financial Services indices in the 3 geographic regions had varying total returns during the quarter with the S&P/TSX Capped Financials Index up 8.61%, the S&P 500 Financials Index up only 0.61% and the MSCI EAFE Financials Index up 10.51%, the latter two measured in Canadian dollars.

Volatility levels remained low for the period with the CBOE SPX Volatility Index (VIX) still at the lower end of the range over the last twenty years. The Fund continued with its active approach to covered-call writing during the period and ended the third quarter with 21.1% of the portfolio written.

The Fund maintained a high investment position during the majority of the period and ended the quarter with a cash position of 2.4% vs. 5.1% at the end of the previous quarter.

The Fund’s portfolio ended the period with a geographic asset mix of 38% invested in Canada; 28% invested in the United States and 34% invested in the Rest of World. The U.S. dollar exposure was actively hedged during the quarter and ended the period with approximately 50% hedged back into Canadian dollar.

The profitability of global Financial Services companies is likely to increase in the fourth quarter of 2013 due to improving global economies, stronger capital markets and a better credit environment. Also, in the context of low global interest rates, the valuation of companies within the portfolio remain at very attractive levels when measured by price to earnings ratios and current dividend yields.

PM Updates - June 2013

As of June 28, 2013, the Net Asset Value (NAV) of a combined unit was $11.42 versus $11.52 on March 28, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS and WFS.PR.A. They closed on June 28, 2012 at $1.31 and $9.81 respectively which, when combined, represent a $0.30 (2.6%) discount to the actual NAV.

A quarterly distribution of $0.13125 per Preferred Share was declared and paid to preferred shareholders of record on June 14, 2013, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

Global equity markets continued their rally from the first quarter of 2013 advancing in both April and most of May on improved economic data out of the U.S. and other parts of the world. Markets corrected considerably for the rest of the period after the U.S. Federal Reserve chairman, Ben Bernanke, signaled to the market that the central bank may start to taper their bond purchase program later this year.

During the period, the MSCI World Financial Services Index (in Canadian dollar terms) increased to 92.87 from 89.04. The Financial Services indices in the 3 geographic regions had varying total returns during the quarter with the S&P/TSX Capped Financials Index up 0.43%, the S&P 500 Financials Index up 7.25% and the MSCI EAFE Financials Index down 1.20%, each measured in Canadian dollars.

Volatility levels remained low for the period with the CBOE SPX Volatility Index (“VIX”) still at the lower end of the range over the last twenty years. The Fund continued with its active approach to covered-call writing during the period and ended the second quarter with 15.1% of the portfolio written.

The Fund maintained a high investment position during the majority of the period but ended the quarter with a cash position of 5.1% (vs. 1.8% at the end of the previous quarter) in order to finance the Fund’s annual concurrent redemption.

The Fund’s portfolio ended the period with a regional asset mix of 25% invested in Canada; 56% invested in the U.S. and 19% invested in the Rest of World. The U.S. dollar exposure was actively hedged during the period and ended the quarter with approximately 100% hedged back into Canadian dollar.

The profitability of Global Financial Services companies is likely to increase in the second half of 2013 due to improving global economies, stronger capital markets and a better credit environment. Also, in the context of low Global interest rates, the valuation of companies within the portfolio remain at very attractive levels when measured by price to earnings ratios and current dividend yields.

PM Updates - March 2013

As of March 31, 2013, the Net Asset Value (“NAV”) of a combined unit was $11.52 versus $11.02 on December 31, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as WFS and WFS.PR.A. The closing market prices closed on March 28, 2012 were $1.46 and $9.70 respectively which, when combined, represent a $0.36 (3.13%) discount to the actual NAV.

A quarterly distribution of $0.13125 per Preferred Share was declared and paid to preferred shareholders of record March 15, 2013, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

Global equity markets moved higher in Q1 of 2013 as markets concerns surrounding the “Fiscal Cliff” in the U.S. dissipated after a last minute deal was reached at the end of 2012 that increased taxation but pushed out mandatory spending cuts to March 1, 2013. At the same time, sovereign default risk in Europe reared its head once again as Cyprus became the latest country requiring a bailout of its banking system.

Unlike the previous two quarters, the S&P/TSX Composite Index underperformed the S&P 500 Index on a total return basis during the period, up 3.3% and 10.6% respectively. During the period, the MSCI World Financial Services Index (in Canadian dollar terms) increased considerably to 89.04 from 81.53. The Financial Services indices in the 3 geographic regions also had strong total returns during the quarter with the S&P/TSX Capped Financials Index up 4.2%, the S&P 500 Financials Index up 13.8% and the MSCI EAFE Financials Index up 7.9%, each measured in Canadian dollars.

Volatility levels remained low for the period with the CBOE SPX Volatility Index (VIX) back to levels not seen since 2007. The Fund continued with its active approach to covered-call writing during the period with only 1.6% of the portfolio on average subject to covered calls and ended the first quarter with 7.6% of the portfolio written.

The Fund maintained a high investment position during the period and ended the quarter with a cash position of 1.8% vs. 4.1% at the end of the previous quarter.

The Fund’s portfolio ended the period with a regional asset mix of 23% invested in Canada; 50% invested in the United States and 27% invested in the Rest of World. The U.S. dollar hedge was maintained and ended the quarter with approximately 100% hedged back into Canadian dollar.

The profitability of Global Financial Services companies is likely to increase in 2013 due to improving global economies, stronger capital markets and a better credit environment. Also, in the context of record low Global interest rates, the valuation of companies within the portfolio remain at very attractive levels when measured by price to earnings ratios and current dividend yields.

PM Updates - December 2012

As of December 31, 2012, the Net Asset Value (“NAV”) of a combined unit was $11.02 versus $10.01 on September 30, 2012.

A quarterly distribution of $0.13125 per Preferred Share was declared and paid to preferred shareholders of record December 14, 2012, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Class A share’s last trading price on December 28, 2012 was $1.24, which is a premium of $0.22 to its NAV.

Global equity markets took a breather in the fourth quarter of 2012 as markets pulled back heading into the U.S. presidential election in November and then rallied into year-end, even as concerns were growing over the looming ‘Fiscal Cliff’ deadline. At the same time, economic data out of the U.S. and other parts of the world continued to improve while Central Banks stayed with extremely loose monetary policy.

For the second consecutive quarter, the S&P/TSX Composite Index outperformed the U.S. S&P 500 Index on a total return basis during the period, posting returns of 1.7% and negative 0.4% respectively. During the period the MSCI World Financial Services Index (in Canadian dollar terms) increased considerably to 81.53 from 74.84. The Financial Services indices in the 3 geographic regions had strong total returns during the quarter with the S&P/TSX Capped Financials Index up 6.8%, the S&P 500 Financials Index up 7.2%, and the MSCI EAFE Financials Index up 12.6%, all measured in Canadian dollars.

Volatility levels remained low into year-end other than a brief spike heading into the U.S. election. The Fund remained active in its covered-call writing during the period with, on average, approximately 20% of the portfolio subject to covered calls and ended the year with 3.9% of the portfolio written. The Fund also ended the year with 7.5% of the portfolio hedged with protective put options.

The Fund maintained a high investment position during the period and ended the year with a cash position of 4.1% vs. 2.2% at the end of the third quarter.

The Fund’s portfolio ended the quarter with a regional asset mix of 26% invested in Canada; 33% invested in the United States and 41% invested in the Rest of World. The U.S. dollar hedge was maintained in the fourth quarter and ended the year being 100% hedged back into Canadian dollar.

The profitability of Global Financial Services companies is likely to increase in 2013 due to improving global economies, stronger capital markets and a better credit environment. Also, in the context of record low global interest rates, the valuations of companies within the portfolio remain at very attractive levels when measured by price to earnings ratios and current dividend yields.

PM Updates - September 2012

As of September 30, 2012, the Net Asset Value (“NAV”) of a combined unit was $10.01 versus $10.06 on June 30, 2012.

A quarterly distribution of $0.13125 per Preferred Share was declared and paid to preferred shareholders of record September 14, 2012, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Class A share’s last trading price on September 28, 2012 was $0.92, which is a premium of $0.91 to its NAV.

Global equity markets posted strong gains in the third quarter of 2012 on expectations that both the European Central Bank (ECB) and the U.S. Federal Reserve would enter another round of quantitative easing in response to a slowing global economy.

Central Banks did not disappoint and the ECB announced in August they would soon be implementing a bond purchase program to lower borrowing costs while Ben Bernanke, Chairman of the U.S. Federal Reserve, announced a third round of quantitative easing in order to improve labour market conditions.

During the period, the MSCI World Financial Services Index (in Canadian dollar terms) increased considerably to 74.84 from 71.57. The Financial Services indices in the 3 geographic regions had strong total returns during the quarter with the S&P/TSX Capped Financials Index up 5.3%, the S&P 500 Financials Index up 3.3% and the MSCI EAFE Financials Index up 7.5%, all measured in Canadian dollar terms.

Volatility levels remained low in the third quarter. The Fund had been active in its covered-call writing during the period but ended the third quarter with only one equity security representing approximately 1% of the portfolio subject to covered calls.

The Fund maintained a high investment position during the period and ended the quarter with a cash position of 2.2% vs. 17.5% at the end of the second quarter (in order to finance the annual concurrent redemption).

The Fund’s portfolio ended the quarter with a regional asset mix of 24% invested in Canada, 37% invested in the United States and 39% invested in the Rest of World. The U.S. dollar hedge was maintained in the third quarter and ended with 50% hedged back into Canadian dollar.

The profitability of Global Financial Services companies is likely to grow at a slower pace in 2012 due to decelerating loan growth, volatile capital markets and net interest margin compression. However, in the context of record low Global interest rates, the valuation of companies within the portfolio remain at attractive levels when measured by price to earnings ratios and current dividend yields.

PM Updates - June 2012

As of June 30, 2012, the Net Asset Value (“NAV”) of a combined unit was $10.06 versus $10.99 on March 31, 2012.

A quarterly distribution of $0.13125 per Preferred Share was declared and paid to preferred shareholders of record June 15, 2012, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Class A share’s last trading price on June 29, 2012 was $0.69, which is a premium of $0.63 to its NAV.

After rallying in the first quarter of 2012, equity markets took a breather and corrected in the second quarter due to continued concerns regarding the European debt crisis as well as growing fears over a decelerating global economy.

Similar to the last few quarters, the S&P/TSX Composite Index underperformed the S&P 500 Index in the U.S. during the period, down 5.7% and 2.8% respectively. During the period, the MSCI World Financial Services Index (in Canadian dollar terms) decreased to 71.57 from 76.46. The Financial Services indices in the 3 geographic regions had negative total returns during the quarter with the S&P/TSX Capped Financials Index down 6.4%, the S&P 500 Financials Index down 5.0% and the MSCI EAFE Financials Index down 5.8%, all measured in Canadian dollars.

Volatility levels remained low in the second quarter. The fund remained active in both its covered call writing and protective put buying during the period and ended the second quarter with 46.0% of the portfolio subject to covered calls options and 33.6% of the portfolio hedged with protective put options.

The Fund maintained a high investment position during most of the period but ended the quarter with a cash position of 17.5% vs. 1.7% at the end of the first quarter in order to finance the Fund’s annual concurrent redemption.

The Fund’s portfolio ended the quarter with a regional asset mix of 36% invested in Canada; 45% invested in the United States and 19% invested in the Rest of World. The U.S. dollar hedge was reduced in the second quarter and ended with approximately 40% hedged back into Canadian dollar.

The profitability of Global Financial Services companies is likely to grow at a slower pace in 2012 due to decelerating loan growth, volatile capital markets and net interest margin compression. As well, many global financial institutions have holdings of European sovereign debt and European bank debt on their balance sheet, which may impact their earnings and capital ratios due to concerns of default risk. In the context of record low global interest rates, the valuation of companies in the portfolio remain at attractive levels when measured by price to earnings ratios and current dividend yields.

PM Updates - March 2012

As of March 31, 2011, the Net Asset Value (“NAV”) of a combined unit was $10.99 versus $9.93 on December 31, 2011.

A quarterly distribution of $0.13125 per Preferred Share was declared and paid to Preferred shareholders of record March 15, 2012, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per Unit was less than $15.00.

The Class A share’s last trading price on March 30, 2012 was $1.55, which is a premium of $0.56 to its NAV.

Equity markets continued to rally in the first quarter of 2012 after stabilizing and rallying into year-end 2011 on the back of better U.S. employment and housing numbers as well as reduced risk of a European sovereign default.

During the period the MSCI World Financial Services Index (in Canadian dollar terms) increased considerably to 76.46 from 66.31. The Financial Services indices in the 3 geographic regions had strong total returns during the quarter with the S&P/TSX Capped Financials Index up 11.4%, the S&P 500 Financials Index up 19.9% and the MSCI EAFE Financials Index up 14.5%, both measured in Canadian dollars.

Volatility continued to decline in the first quarter of 2012, reaching levels not seen since July 2011, as economic statistics in the U.S. continued to improve and concerns about European sovereign default subsided. The percent of the portfolio subject to covered calls on average during the period was 17.6% and the Fund ended the first quarter with 19.8% of the portfolio subject to covered calls.

No put protection was purchased during the quarter due to an improved outlook on the securities within the portfolio.

The Fund maintained a high investment position during the period and ended the quarter with a cash position of 1.7% vs. 2.8% at the end of 2011.

The Fund’s portfolio ended the quarter with a regional asset mix of 33% invested in Canada; 46% invested in the United States and 21% invested in the Rest of World. The U.S. dollar hedge was increased in the first quarter and ended with 100% hedged back into Canadian dollar.

The Global Financial Services companies profitability is likely to grow at a slower pace in 2012 due to decelerating loan growth, volatile capital markets and net interest margin compression. As well, many global financial institutions have holdings of European sovereign debt and European bank debt on their balance sheet, which may impact their earnings and capital ratios due to concerns of default risk. In the context of record low global interest rates, the valuations of companies in the portfolio remain at attractive levels when measured by price to earnings ratios and current dividend yields.

PM Updates - December 2011

As of December 31, 2011, the Net Asset Value ("NAV") of a combined unit was $9.93 versus $10.02 on September 30, 2011.

The quarterly distribution of $0.13125 per Preferred Share was paid December 30, 2011 to shareholders of record as of December 15, 2011, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Class A share’s last trading price on December 30, 2011 was $0.75, which is a premium of $0.75 to its NAV.

Equity markets continued their volatile ride in the fourth quarter of 2011. After correcting significantly in the 3rd quarter of 2011 due to Standard and Poor’s downgrade of U.S. Government debt and concerns about a potential sovereign default by Greece, equity markets found some footing and rallied into year-end.

During the period the MSCI World Financial Services Index (in Canadian dollar terms) rose modestly to 66.31 from 65.52. The Financial Services indices in the 3 geographic regions had mixed total return during the quarter with the S&P/TSX Capped Financials Index relatively flat up 0.9%, the S&P 500 Financials Index up 8.4% and the MSCI EAFE Financials Index also flat down 0.2%, both measured in Canadian dollars.

Volatility for the fourth quarter remained high until December as economic statistics in the U.S. gradually improved and concerns about European sovereign default slowly subsided with the announcement of the Long-Term Refinancing Operation (“LTRO”) by the European Central Bank which is expected to help bank funding and liquidity. The Fund was active in its call writing during the quarter and ended the year with 31.2% of the portfolio subject to covered calls.

The Fund also opportunistically purchased some put protection on some individual holdings during the period due to continued concerns of European sovereign default risk increasing as well as the potential for lower than expected global growth and its impact on the market .

The Fund maintained a high invested position during most of the period and ended 2011 with a cash position of 2.8% vs. 9.8% at the end of the third quarter.

The Fund's portfolio ended the year with a regional asset mix of 34% invested in Canada; 37% invested in the United States and 29% invested in the Rest of World. The U.S. dollar hedge was reduced in the fourth quarter and ended 2011 with 65% hedged back into Canadian dollar.

The Global Financial Services companies profitability is likely to grow at a slower pace in 2012 due to decelerating loan growth, volatile capital markets and a low interest rate environment. As well, many global financial institutions have holdings of European sovereign debt and European bank debt on their balance sheet, which may impact their earnings and capital ratios as the risk default remains high. In the context of record low Global interest rates, the valuations of companies in the portfolio remain at attractive levels when measured by price to earnings ratios and current dividend yields.

PM Updates - September 2011

As of September 30, 2011, the Net Asset Value of a combined unit was $10.02 versus $10.84 (pre-consolidation) and $11.48 (post consolidation of Class A shares) on June 30, 2011.

The quarterly distribution of $0.13125 per Preferred Share was paid September 30, 2011 to shareholders of record as of September 15, 2011, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Preferred Share last trading price on September 30, 2011 was $8.24 while the Class A Share trading price was 1.07, which represents a premium of $1.05 to its NAV.

During the period the MSCI World Financial Services Index (in Canadian dollar terms) declined to 65.52 from 79.48. The Financial Services indices in the 3 geographic regions had negative total returns during the quarter with the S&P/TSX Capped Financials Index down 10.12%, the S&P 500 Financials Index down 16.73% and the MSCI EAFE Financials Index down 18.12%, when measured in Canadian dollars.

Volatility levels picked up in the quarter after being relatively tame during the first half of the year. Volatility levels started to pick up in late July as the deadline for the U.S. Congress vote on the debt ceiling limit on August 2nd was approaching and has remained high since as Standard & Poor’s downgraded the rating of U.S. Government debt and the prospect of Greece defaulting on their debt increased. The Fund increased the level of call writing over the quarter and ended September 30, 2011 with 34.66 percent of the portfolio subject to covered calls.

The Fund also opportunistically purchased some put protection on the iShares S&P/TSX Capped Financial Index Fund (“XFN”), the Financial Select Sector SPDR Fund (“XLF”) and some individual holdings during the period due to continued concerns of European sovereign default risk increasing as well as the potential for lower than expected global growth .

The fund maintained a high invested position during most of the period and ended the third quarter with a cash position of 9.8% vs. 21.2% at the end of the second quarter. The cash was increased at the end of the second quarter in order to finance the special redemption right offered in conjunction with the Fund extension.

The funds portfolio ended the quarter with a regional asset mix of 51.3% invested in Canada; 29.5% invested in the United States and 19.2% invested in the Rest of World. The U.S. dollar exposure was fully hedged back into Canadian over the period.

The Global Financial Services companies profitability is likely to grow at a slower pace than was originally expected at the beginning of 2011 due to decelerating loan growth, weaker equity and capital markets along with lower interest rates and net interest margin compression. As well, many global financial institutions have holdings of European sovereign debt and European bank debt on their balance sheet, which may impact their earnings and capital ratios as the risk default remains high. In the context of record low Global interest rates, the valuations of companies in the portfolio remain at attractive levels when measured by price to earnings ratios and current dividend yields and this should continue to act as support for the share prices.

PM Updates - June 2011

On May 31, 2011, holders of Class A shares and holders of Preferred shares approved a proposal to extend the term of the Fund for seven years beyond the scheduled termination date of June 30, 2011, and for automatic successive seven-year terms after June 30, 2018.

On June 24, 2011, the Fund announced a Class A share consolidation ratio of 0.562426082 new Class A shares for each Class A share held, effective the opening of trading on July 4, 2011. The total value of a shareholder’s investment did not change, however, the number of Class A shares reflected in the shareholder’s account declined and the net asset value per share increased proportionately.

As of June 30, 2011, the Net Asset Value of a combined unit was $10.84 ($11.48 post-consolidation of Class A shares) versus $11.50 on March 31, 2011.

The quarterly distribution of $0.13125 per Preferred Share was paid June 30, 2011 to shareholders of record as of June 15, 2010, while the quarterly distribution for the Class A share remains suspended in accordance with the terms of the prospectus as the NAV per unit was less than $15.00.

The Class A Share trading price of $1.62 (post-consolidation of Class A shares) represents a premium of 9.46% to its post-consolidated NAV of $1.48.

During the period the MSCI World Financial Services Index (in Canadian dollar terms) declined to 79.48 from 82.63. The Financial Services indices in the 3 geographic regions had negative total returns during the quarter with the S&P/TSX Financials Index down 2.65%, the S&P 500 Financials Index down 6.46% and the MSCI EAFE Financials Index down 1.25% when measured in Canadian dollars.

The volatility of the financial stocks within the portfolio traded in a fairly narrow range over the quarter and the covered call writing activity was opportunistic to take advantage of higher volatility levels as well as the general decline in prices. The fund ended the quarter with approximately 20% of the portfolio subject to covered calls.

The fund also opportunistically purchased some put protection on both the iShares S&P/TSX Capped Financials Index Fund (“XFN”) and the Financial Select Sector SPDR Fund (“XLF”) during the period due to concerns of European sovereign default risk increasing as well as the U.S. debt ceiling controversy impacting global financials.

The fund maintained a high invested position during most of the period but ended the first quarter with a cash position of 21.2% vs. 6.6% at the end of the first quarter. The cash was increased at the end of the quarter in order to finance the special redemption right offered in conjunction with the Fund extension.

The funds portfolio ended the quarter with a regional asset mix of 40% invested in Canada; 29% invested in the United States and 31% invested in the Rest of World. The U.S. dollar exposure was fully hedged back into Canadian over the period.

The Global Financial Services companies demonstrated improving fundamentals and profitability in the second quarter due to declining credit losses and strong capital market related revenues. Although the global economy is expected to improve in 2011, volatility and uncertainty will remain as the European sovereign debt crisis and slowing global economic growth represent major overhangs on the sector. In the context of record low global interest rates, the valuations of companies in the portfolio remain at reasonable levels when measured by price to earnings ratios and current dividend yields. As global regulatory and capital requirements become clearer in 2011, several companies are likely to start returning capital to shareholders in the form of increased dividends and share repurchases.

Fund Features

Objectives

The Fund’s investment objectives are:

  • to provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions in the amount of $0.13125 per Preferred share representing a yield on the issue price of the Preferred shares of 5.25% per annum;
  • to provide holders of Class A shares with regular quarterly cash distributions targeted to be 8.0% per annum; and
  • to return the issue price to holders of both Preferred Shares and Class A Shares at the time of redemption of such shares on the termination date.

 

Investment Strategy

The Fund invests in an actively managed portfolio of equity securities selected from the ten largest financial services companies by market capitalization in each of Canada, the United States and the Rest of the World. The issuers of the securities in the Fund's Portfolio, other than those of Canadian issuers, must have a minimum local currency issuer credit rating of "A" from Standard & Poor's or a comparable rating from an equivalent agency.

In addition, up to 25% of the Net Asset Value of the Fund may be invested in common equity securities of financial services companies that are not in the portfolio universe as long as such companies have a market capitalization at the time of investment of at least US$10.0 billion and for non-Canadian issuers, a minimum local currency issuer credit rating of "A" from Standard & Poor's or a comparable rating from an equivalent rating agency.

 

Option Strategy

The Fund employs option strategies to generate additional returns above the distributions earned on its equity securities. In addition, the Fund may write cash covered put options and may invest up to 10% of net assets to purchase call options, both in respect of securities in which the Fund is permitted to invest.

 

Distributions

Preferred shares pay fixed cumulative preferential quarterly cash distributions in the amount of $0.13125 per Preferred share representing a yield on the issue price of the Preferred shares of 5.25% per annum.

Class A shares have a targeted distribution of $0.30 per quarter resulting in an 8.0% yield on the original issue price of $15.00. Distributions on the Class A shares have been suspended in accordance with the prospectus as the Net Asset Value per Unit is less than $15.00.

 

Redemptions

The Fund is redeemable annually in June of each year beginning in 2012 at the option of the unitholder and monthly at a discount to market price.

Click to expand Redemption Details

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

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

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

  1. the difference between (i) the NAV per Unit on the applicable Valuation Date and (ii) the cost to the Fund of purchasing a Preferred Share in the market for cancellation; and
  2. the difference between (i) the Unit Market Price (as defined below) and (ii) the cost to the Fund of purchasing a Preferred Share in the market for cancellation.
The monthly retraction prices for the Preferred Shares will be equal to 96% of the lesser of:
  1. the difference between (i) the NAV per Unit on the applicable Valuation Date and (ii) the cost to the Fund of purchasing a Class A Share in the market for cancellation; and
  2. the lesser of (i) the Unit Market Price less the cost to the Fund of purchasing a Class A Share in the market for cancellation and (ii) $10.00.

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

Class A Market Pricemeans the weighted average trading price of the Class A Shares on the principal stock exchange on which the Class A Shares are listed (or, if the Class A Shares are not listed on any stock exchange, on the principal market on which the Class A Shares are quoted for trading) for the 10 trading days immediately preceding the applicable Valuation Date.
Preferred Market Pricemeans the weighted average trading price of the Preferred Shares on the principal stock exchange on which the Preferred Shares are listed (or, if the Preferred Shares are not listed on any stock exchange, on the principal market on which the Preferred Shares are quoted for trading) for the 10 trading days immediately preceding the applicable Valuation Date.
Unit Market Pricemeans the sum of the Class A Market Price and the Preferred Market Price.

 

Leverage

The Fund does not employ financial leverage, however Class A shares are considered to be leveraged investments by virtue of the Preferred Shares which rank ahead of the Class A for payment of distributions and proceeds on termination up to the Preferred Share par value of $10.00 per share. Positive or negative changes in the value of the total portfolio will have a greater effect on the value of the Class A shares. As the value of the portfolio increases this effect decreases and conversely as the value of the portfolio decreases, leverage increases.

 

Termination

The Fund is scheduled to terminate on June 30, 2025, subject to an automatic extension of the term for an additional seven years. In addition, shares may be sold daily on the TSX or redeemed concurrently on an annual basis at net asset value per unit.

 

CUSIP ISIN

Class A Shares
  CUSIP – 98146P301 (Prior to the consolidation effective July 1, 2011 the CUSIP was 98146P103)
  ISIN - CA 98146P3016
Preferred Shares
  CUSIP – 98146P202
  ISIN – CA

 

Eligibility

RRSPs, DPSPs, RRIFs, RESPs and TFSAs

 

Issuer Bid

The Fund may purchase up to 10% of its outstanding units at prices up to net asset value per unit. A unit consist of one Preferred Share combined with one Class A Share.

 

Management Fees

The Fund pays a management fee of 1.10% of net asset value annually to Strathbridge Asset Management for acting as the Manager and the Investment Manager.

 

Service Fee

A service fee of 0.40% of NAV of the Class A shares per annum is paid quarterly to Investment Advisors whose clients hold the Class A shares.

 

MER

The Management Expense Ratio (“MER”) is the sum of all operating expenses, including management and service fees but excluding portfolio transaction costs, expressed as a percentage of average net asset value.

 

Inception Date

02/17/2004

 

Manager

Strathbridge Asset Management

 

Hedging

The Fund may hedge its U.S. dollar exposure back to the Canadian dollar at the discretion of the Manager.

 

Documentation

Date:      Type:      Description
June 03, 2020 Press Release WFS: Declares Quarterly Preferred Share Distribution
March 27, 2020 Annual Information Form Annual Information Form World Financial Split Corp.
March 27, 2020 Financial Report 2019 Annual Report
March 27, 2020 Press Release WFS: Announces Year End Results
March 03, 2020 IRC Report IRC Report for World Financial Split Corp.
March 03, 2020 Press Release WFS: Declares Quarterly Preferred Share Distribution
December 04, 2019 Press Release WFS: Declares Quarterly Preferred Share Distribution
September 04, 2019 Press Release WFS: Declares Quarterly Preferred Share Distribution
August 28, 2019 Financial Report 2019 Semi-Annual Report
August 28, 2019 Press Release WFS: Announces Semi-Annual Results
June 04, 2019 Press Release WFS: Declares Quarterly Preferred Share Distribution
March 21, 2019 Annual Information Form Annual Information Form World Financial Split Corp.
March 21, 2019 Financial Report 2018 Annual Report
March 21, 2019 Press Release WFS: Announces Year End Results
March 05, 2019 Press Release WFS: Declares Quarterly Preferred Share Distribution
December 04, 2018 Press Release WFS: Declares Quarterly Preferred Share Distribution
September 04, 2018 Press Release WFS: Declares Quarterly Preferred Share Distribution
August 24, 2018 Financial Report 2018 Semi-Annual Report
August 24, 2018 Press Release WFS: Announces Semi-Annual Results
June 25, 2018 Press Release WFS: Announces Partial Redemption of Preferred Sgares
June 04, 2018 Press Release WFS: Declares Quarterly Preferred Share Distribution
May 28, 2018 Press Release WFS: Announces Automatic Term Extension
March 29, 2018 Annual Information Form Annual Information Form World Financial Split Corp.
March 23, 2018 Financial Report 2017 Annual Report
March 22, 2018 Press Release WFS: Announces Year End Results
March 02, 2018 Press Release WFS: Declares Quarterly Preferred Share Distribution
December 05, 2017 Press Release WFS: Declares Quarterly Preferred Share Distributions
September 05, 2017 Press Release WFS: Declares Quarterly Preferred Share Distribution
August 28, 2017 Financial Report 2017 Semi-Annual Report
August 28, 2017 Press Release WFS: Annouces Semi-Annual Results
May 29, 2017 Press Release WFS: Declares Quarterly Preferred Share Distribution
March 31, 2017 Annual Information Form Annual Information Form World Financial Split Corp.
March 22, 2017 Financial Report 2016 Annual Report
March 22, 2017 Press Release WFS: Announces Annual Results
March 06, 2017 Press Release WFS: Declares Quarterly Preferred Share Distribution
December 05, 2016 Press Release WFS: Declares Quarterly Preferred Share Distribution
September 06, 2016 Press Release WFS: Declares Quarterly Preferred Share Distributions
August 23, 2016 Financial Report 2016 Semi-Annual Report
August 23, 2016 Press Release WFS: Announces Semi-Annual Results
June 01, 2016 Press Release WFS: Declares Quarterly Preferred Share Distrbution
March 30, 2016 Annual Information Form Annual Information Form World Financial Split Corp.
March 23, 2016 Financial Report 2015 Annual Report
March 23, 2016 Press Release WFS: Announces Year End Results
March 07, 2016 Press Release WFS: Declares Quarterly Preferred Share Distribution
December 03, 2015 Press Release WFS: Declares Quarterly Preferred Share Distribution
September 03, 2015 Press Release WFS: Declares Quarterly Preferred Share Distribution
August 21, 2015 Financial Report 2015 Semi-Annual Report
August 21, 2015 Press Release WFS: Announces Semi-Annual Results
June 03, 2015 Press Release WFS: Declares Quarterly Preferred Share Distribution
March 31, 2015 Annual Information Form Annual Information Form World Financial Split Corp.
March 26, 2015 Financial Report 2014 Annual Report
March 26, 2015 Press Release WFS: Announces Year End Results
March 04, 2015 Press Release WFS: Declares Quarterly Preferred Share Distribution
January 02, 2015 Press Release Strathbridge Announces Securityholder Approval of Proposal
December 03, 2014 Press Release WFS: Declares Quarterly Preferred Share Distribution
December 02, 2014 Prospectus Joint Information Circular
November 12, 2014 Press Release Strathbridge Announces Special Meeting
October 17, 2014 Press Release WFS: Announces Normal Course Issuer Bid
September 03, 2014 Press Release WFS: Declares Quarterly Preferred Share Distribution
August 28, 2014 Financial Report 2014 Semi-Annual Report
August 28, 2014 Press Release WFS: Announces Semi-Annual Results
June 03, 2014 Press Release WFS: Declares Quarterly Preferred Share Distribution
March 31, 2014 Annual Information Form Annual Information Form World Financial Split Corp.
March 21, 2014 Financial Report 2013 Annual Report
March 21, 2014 Press Release WFS: Announces Year End Results
March 04, 2014 Press Release WFS: Declares Quarterly Preferred Share Distribution
December 04, 2013 Press Release WFS: Declares Quarterly Preferred Share Distribution
September 03, 2013 Press Release WFS: Declares Quarterly Preferred Share Distribution
August 16, 2013 Financial Report 2013 Semi-Annual Report
August 16, 2013 Press Release WFS: Announces Semi-Annual Results
June 03, 2013 Press Release WFS: Declares Quarterly Preferred Share Distribution
April 29, 2013 Press Release WFS: Announces Normal Course Issuer Bid
March 28, 2013 Annual Information Form Annual Information Form World Financial Split Corp.
March 27, 2013 Financial Report 2012 Annual Report
March 27, 2013 Press Release WFS: Announces Year End Results
March 05, 2013 Press Release WFS: Declares Quarterly Preferred Share Distribution
November 30, 2012 Press Release WFS: Declares Quarterly Preferred Share Distribution
September 04, 2012 Press Release WS: Declares Quarterly and Preferred Share Distributions
August 16, 2012 Financial Report 2012 Semi-Annual Report
August 16, 2012 Press Release WFS: Announces Semi-Annual Results
June 04, 2012 Press Release WFS: Declares Quarterly Preferred Share Distribution
March 30, 2012 Annual Information Form Annual Information Form World Financial Split Corp.
March 23, 2012 Financial Report 2011 Annual Report
March 23, 2012 Press Release WFS: Announces Year End Results
February 27, 2012 Press Release WFS: Declares Quarterly Preferred Share Distribution
November 30, 2011 Press Release WFS: Declares Quarterly Preferred Share Distribution
October 03, 2011 Press Release Mulvihill Capital Management Inc. Proudly Announces a Name Change to Strathbridge Asset Management Inc.
August 30, 2011 Press Release WFS: Declares Quarterly Preferred Share Distribution
August 22, 2011 Financial Report 2011 Semi-Annual Report
August 22, 2011 Press Release WFS: Announces Semi-Annual Results
July 13, 2011 Press Release WFS: Announces Normal Course Issuer Bid
June 27, 2011 Press Release WFS: Announces Class A Share Consolidation Ratio
June 02, 2011 Press Release WFS: Declares Quarterly Preferred Share Distribution
June 01, 2011 Press Release WFS: Announces Shareholder Approval of Proposal to Extend Scheduled Termination Date
May 10, 2011 Press Release Notice of Special Meeting of Shareholders and Management Information Circular
May 06, 2011 Press Release WFS: Announces Proposal to Extend Redemption Date
April 21, 2011 Prospectus Management Information Circular (English)
March 29, 2011 Financial Report 2010 Annual Report
March 29, 2011 Press Release WFS: Announces Year End Results
March 02, 2011 Press Release WFS: Declares Quarterly Preferred Share Distribution
January 24, 2011 Press Release WFS: Announces Closing of Warrant Offering
December 02, 2010 Press Release WFS: Declares Quarterly Preferred Share Distribution
September 01, 2010 Press Release WFS: Declares Quarterly Preferred Share Distributions
August 25, 2010 Press Release WFS: Issues Warrants
August 20, 2010 Financial Report 2010 Semi-Annual Report
August 20, 2010 Press Release WFS: Announces Semi-Annual Results
August 12, 2010 Press Release WFS: Prospectus Simplifié - Placement de bons de souscription
August 12, 2010 Press Release WFS: Short Form Prospectus - Warrant Offering
August 12, 2010 Press Release WFS: World Financial Split Corp. Files Final Prospectus for Warrant Offering
August 06, 2010 Prospectus Warrant Offering Short Form Prospectus (English)
August 06, 2010 Prospectus Warrant Offering Short Form Prospectus (French)
July 15, 2010 Press Release WFS: World Financial Split Corp. Files Preliminary Prospectus for Warrant Offering
July 12, 2010 Press Release WFS: Preliminiary Short Form Prospectus - Warrant Offering
July 12, 2010 Press Release WFS: Prospectus Simplifié Provisoire - Placement de bons de souscription
June 02, 2010 Press Release WFS: Declares Quarterly Distribution on Preferred Shares
April 13, 2010 Press Release WFS: Announces Closing of Warrant Offerings
March 26, 2010 Press Release WFS: Announces Year End Results
March 25, 2010 Financial Report 2009 Annual Report
March 02, 2010 Press Release WFS: Declares Quarterly Distribution on Preferred Shares
December 04, 2009 Press Release WFS: Announces Normal Course Issuer Bid
December 03, 2009 Press Release WFS: Declares Quarterly Distribution on Preferred Shares
November 23, 2009 Press Release WFS: Issues Warrants
November 11, 2009 Press Release WFS: Files Final Prospectus for Warrant Offering
November 10, 2009 Press Release WFS: Prospectus Simplifié - Placement de bons de souscription
November 10, 2009 Press Release WFS: Short Form Prospectus - Warrant Offering
November 06, 2009 Prospectus Warrant Offering Short Form Prospectus (English)
November 06, 2009 Prospectus Warrant Offering Short Form Prospectus (French)
October 09, 2009 Press Release WFS: Proposed Warrant Offering
September 02, 2009 Press Release WFS: Declares Quarterly Distribution on Preferred Shares
August 26, 2009 Press Release WFS: Announces Semi-Annual Results
August 25, 2009 Financial Report 2009 Semi-Annual Report
June 03, 2009 Press Release WFS: Declares Quarterly Distribution
March 27, 2009 Financial Report 2008 Annual Report
March 27, 2009 Press Release WFS: Announces Year End Results
March 03, 2009 Press Release WFS: Declares Quarterly Distribution
December 04, 2008 Press Release WFS: Declares Quarterly Distribution on Preferred Shares and Suspends Class A Distributions
November 12, 2008 Press Release WFS: Announces Normal Course Issuer Bid
September 03, 2008 Press Release WFS: Declares Quarterly Distribution
August 28, 2008 Financial Report 2008 Semi-Annual Report
August 28, 2008 Press Release WFS: Announces Semi-Annual Results
May 26, 2008 Press Release WFS: Declares Quarterly Distribution
March 25, 2008 Financial Report 2007 Annual Report
March 25, 2008 Press Release WFS: Announces Year End Results
March 06, 2008 Press Release WFS: Declares Quarterly Distribution
December 05, 2007 Press Release WFS: Declares Quarterly Distribution
November 09, 2007 Press Release WFS: Announces Normal Course Issuer Bid
September 06, 2007 Press Release WFS: Declares Quarterly Distribution
August 24, 2007 Financial Report 2007 Semi-Annual Report
August 24, 2007 Press Release WFS: Announces Semi-Annual Results
June 05, 2007 Press Release WFS: Declares Quarterly Distribution
March 27, 2007 Financial Report 2006 Annual Report
March 27, 2007 Press Release WFS: Announces Year End Results
March 01, 2007 Press Release WFS: Declares Quarterly Distribution
December 05, 2006 Press Release WFS: Declares Quarterly Dividend
November 01, 2006 Press Release WFS: Announces Normal Course Issuer Bid
September 05, 2006 Press Release WFS: Declares Quarterly Dividend
August 25, 2006 Financial Report Semi-Annual Report 2006
August 25, 2006 Press Release WFS: Announces Semi-Annual Results
June 06, 2006 Press Release WFS: Declares Quarterly Dividend
April 28, 2006 Financial Report 2005 Annual Report
April 28, 2006 Press Release WFS: Announces Year End Results
March 02, 2006 Press Release WFS: Declares Quarterly Dividend
December 05, 2005 Press Release WFS.PR.A/WFS: Declares Quarterly Dividend
November 01, 2005 Press Release WFS: Announces Normal Course Issuer Bid
September 01, 2005 Press Release WFS: Declares Quarterly Distribution
August 24, 2005 Financial Report WFS: 2005 Semi-Annual Report
August 24, 2005 Press Release WFS: Announces Semi-Annual Results
June 01, 2005 Press Release WFS: Declares Quarterly Dividend
April 25, 2005 Press Release WFS: Conference Call Notification
March 30, 2005 Financial Report WFS: 2004 Annual Report
March 30, 2005 Press Release WFS: Announces Year End Results
March 02, 2005 Press Release WFS: Declares Quarterly Dividend
December 02, 2004 Press Release WFS: Declares Quarterly Dividend
September 02, 2004 Press Release WFS: Declares Quarterly Dividend
August 13, 2004 Financial Report WFS: 2004 Semi - Annual Report
August 13, 2004 Press Release WFS: Announces Semi Annual Results
June 03, 2004 Press Release WFS: Initial Quarterly Dividend Declared
February 27, 2004 Press Release WFS: Issuance of Preferred Shares and Class A Shares
February 17, 2004 Press Release WFS: Completes IPO
January 28, 2004 Press Release WFS: Files Final Prospectus for Offering Preferred Shares and Class A Shares
January 27, 2004 Prospectus Initial Public Offering Prospectus (English)
January 27, 2004 Prospectus Initial Public Offering Prospectus (French)

Administration & Governance

Introduction

Strathbridge Asset Management serves as the Manager and the Investment Manager of the Fund.

 

Manager

The Manager is responsible for providing or arranging for the provision of administrative services to the Fund including but not limited to:

  • authorizing the payment of operating expenses incurred on behalf of the Fund,
  • preparing financial statements and other accounting information,
  • ensuring that unitholders are provided with annual and semi-annual reports and other reports as required by applicable law;
  • ensuring the fund complies with regulatory requirements and applicable stock exchange listing requirements;
  • providing the Trustee with information and reports as required;
  • calculating and arranging for the payment of distributions;
  • negotiating any contractual agreements with third-party providers of services to the Fund, including auditors, printers, registrar and transfer agent
  • Overseeing and paying monthly and annual redemptions;
  • Managing the issuer bid;
  • Maintaining the website and ongoing communication with investors.

The Management fee payable to the Manager includes any amount payable to the Investment Manager.

 

Investment Manager

The Investment Manager is responsible for making all investment decisions and managing the call option writing program in accordance with the investment objectives, strategies and restrictions of the Fund. Fees for the provision of investment management services are included in the management fee.

The Investment Manager has an asset mix committee consisting of senior members of the firm. The investment process for the Fund begins at the asset mix committee. Members of this committee meet monthly to examine macro-economic variables and relationships among dominant economic factors. This process culminates in an outlook for the various capital markets around the world and provides the Fundamental basis for Strathbridge’s long-term market outlook. These views are integrated into the investment decision making process at the portfolio management level. The asset mix committee of Strathbridge oversees investment decisions made by the portfolio managers of the Fund.

 

Independent Review Committee

The Fund has established an Independent Review Committee (“IRC”) in accordance with National Instrument 81-107 – Independent Review Committee for Investment Funds (“NI 81-107”) which is comprised of three members who are independent of the Manager. The mandate of the IRC is to review and provide its decisions to the Manager regarding any conflict of interest matters relating to its management of the Fund that the Manager has identified and brought to the committee.

A conflict of interest matter is a situation where a reasonable person would consider the Manager or an entity related to it to have an interest that may conflict with the Manager’s ability to act in good faith and in the best interests of the Funds and Securityholders. Click here for the IRC Report to Securityholders.

Click here to review members of the IRC.

 

Board of Directors

The Fund has established a Board of Directors to assist the Fund in the provision of services by the Manager and the Investment Manager and to provide oversight of these activities. The Board of Directors consists of five members, three of whom are independent of the Manager and Investment Manager. The three independent members of the Board of Directors are also members of the Independent Review Committee. The Board of Directors includes an audit committee whose mandate is to review the annual and semi-annual financial statements and discuss any issues with the auditors.

 

Trustee and Custodian

RBC Investor & Treasury Services

 

Registrar and Transfer Agent

Computershare Investor Services Inc.

 

Legal Counsel

Osler Hoskin & Harcourt LLP

 

Auditors

Deloitte & Touche LLP

Financial & Regulatory

The Annual Report and the Interim Report include the Management Report on Fund Performance and the Financial Statements of the Fund.

Report Year:      Release Date Description
2019 March 27, 2020 2019 Annual Report
2019 August 28, 2019 2019 Semi-Annual Report

 

The Annual Information Form (“AIF”) is a regulatory filing that provides material information to investors about the Fund’s structure, operations, risks and other factors that may affect the Fund. The AIF is supplemented throughout the year by other filings including press releases, information circulars, prospectuses, material change reports, the annual and interim management report on fund performance and the financial statements.

Date Description
March 27, 2020 Annual Information Form

 

The Fund has adopted the proxy voting guidelines with respect to the voting of proxies received by it relating to voting securities held by the Fund. The proxy guidelines establish standing policies and procedures for dealing with routine matters, as well as circumstances where deviations may occur from such standing policies. Click here for proxy guidelines.

The Fund has retained ISS Governance Services to administer and implement the proxy guidelines for the Fund. Click here to review the proxy voting record.