Flaherty & Crumrine Investment Grade Preferred Income Fund

Sub-Advisor

Flaherty & Crumrine Incorporated: Established in 1983, Flaherty & Crumrine Incorporated specializes in US dollar denominated preferred securities and corporate debt instruments. The firm uses intensive credit analysis, thorough analysis of securities’ terms and structures and active portfolio management, exploiting pricing inefficiencies in the fixed income market to provide attractive rates of return on its funds.

Annual Compound Returns⁽¹⁾

Year-by-Year Returns

The tables show the past performance of the Fund. Past performance does not necessarily indicate how the Fund will perform in the future. The information shown is based on Net Asset Value per unit and assumes that cash distributions made by the Fund and deemed distributions based on the warrants’ intrinsic value at the approximate exercise date of the warrants in the periods shown were reinvested at Net Asset Value per unit in additional units of the Fund.

The tables show the Fund’s year-by-year and compound returns for each period indicated, compared with the return for the ICE BofAML US Capital Securities US Issuers 8% Constrained Index (‘‘Corporate US Capital Index’’) and the ICE BofAML Hybrid Preferred Securities 8% Constrained Index (‘‘Hybrid Preferred Securities Index’’). The Fund is actively managed and invests in a portfolio of fixed income securities consisting primarily of US dollar denominated corporate debt and preferred securities of North American issuers that are rated investment grade at the time of investments and that are represented by the indices. The Corporate US Capital Index includes investment grade fixed rate or fixed-to-floating rate $1,000 par securities that receive some degree of equity credit from the rating agencies or their regulators. The Hybrid Preferred Securities Index includes taxable, fixed rate, US dollar denominated, investment grade preferred securities listed in a US exchange. The indices are unleveraged and their returns are calculated with the fees and expenses; whereas the performance of the Fund includes the impact of leverage and is calculated after the deduction of fees and Fund expenses.

⁽¹⁾ Returns are for the periods ended August 31, 2019.

⁽²⁾ Period from December 15, 2004 (commencement of operations) to August 31, 2019.

⁽³⁾ Market Data provided by TMX, and powered by QuoteMedia

Returns for Flaherty & Crumrine Investment Grade Fixed Income Fund are unaudited.

You will usually pay brokerage fees to your dealer if you purchase or sell units of the investment fund on the Toronto Stock Exchange or other alternative Canadian trading system (an “exchange”).  If the units are purchased or sold on an exchange, investors may pay more than the current net asset value when buying units of the investment fund and may receive less than the current net asset value when selling them. 

There are ongoing fees and expenses associated with owning units of an investment fund.  An investment fund must prepare disclosure documents that contain key information about the fund.  You can find more detailed information about the fund in the public filings available at www.sedar.com.  The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns.  Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

The benchmarks from ICE Data Indices, LLC (“ICE Data”) are used with permission. ICE Data, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE Data, its affiliates nor their respective third party providers shall be subject to any damages or liability with respect to the adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and your use is at your own risk. ICE Data, its affiliates and their respective third party suppliers do not sponsor, endorse, or recommend the Fund.