Non-consolidated Financial Statements of - NCM …...Risk management fees – (103) Total operating expenses 725,841 968,354 Increase (decrease) in net assets attributable to holders

INTERIM FINANCIAL STATEMENTS OF

NCM OPPORTUNITIES CORP.

• NCM Small Companies Class • NCM Income Growth Class• NCM US Dividend Plus Class • NCM Energy Plus Class

• NCM Entrepreneurs Class

• NCM Global Income Growth Class

March 31, 2019

TO THE SHAREHOLDERS OF NCM OPPORTUNITIES CORP.

These unaudited interim financial statements are as at March 31, 2019. The unaudited interim financial

statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) and include

statements of financial position as at March 31, 2019 and September 30, 2018, statements of comprehensive

income, changes in net assets attributable to unitholders, and cash flows for the six months ended March 31,

2019 and 2018; and notes to the interim financial statements, comprising a summary of significant accounting

policies, schedule of investment portfolio and other explanatory information.

The accompanying interim financial statements have not been reviewed by the external auditors of the Funds.

The external auditors will be auditing the annual financial statements of the Funds prepared in accordance

with IFRS.

We would be pleased to respond to any inquiries regarding these Funds.

NCM Opportunities Corp.

May 30, 2019

1 INTERIM FINANCIAL STATEMENTS OF NCM OPPORTUNITIES CORP. | MARCH 31, 2019

NCM SMALL COMPANIES CLASS Interim Statements of Financial Position

(unaudited)

(in Canadian dollars, except shares outstanding) As at March 31 September 30

2019 2018

Assets

Cash and cash equivalents 15,641,374 8,907,474 Dividends and interest receivable 244,320 235,822 Portfolio assets sold 703,790 1,232,233 Shares issued – 39,000 Investments, at fair value through profit or loss 77,994,924 97,035,428 Total assets 94,584,408 107,449,957

Liabilities

Accrued expenses (note 8) 198,800 244,500 Portfolio assets purchased – 275,306 Shares redeemed 31,800 38,490

Total liabilities (excluding net assets attributable to holders of redeemable shares) 230,600 558,296 Net assets attributable to holders of redeemable shares 94,353,808 106,891,661

Net assets attributable to holders of redeemable shares: Series A 59,418,556 67,781,313 Series F 21,017,137 24,515,774 Series I 13,918,115 14,594,574

Redeemable shares outstanding (note 7): Series A 1,457,372 1,569,559 Series F 444,188 491,927 Series I 275,947 276,315

Net assets attributable to holders of redeemable shares per share: Series A 40.77 43.18 Series F 47.32 49.84 Series I 50.44 52.82

See accompanying notes to interim financial statements.

On behalf of the Board of Directors of NCM Asset Management Ltd.:

Keith Leslie Alex Sasso


NCM SMALL COMPANIES CLASS Interim Statements of Comprehensive Income (Loss)

(unaudited)

Six months ended March 31, 2019 and 2018

(in Canadian dollars)

2019 2018

Dividend income 921,188 1,157,416 Interest for distribution purposes 150,739 40,036 Net gain (loss) on investments at fair value through profit or loss

Net realized gain (loss) on investments (685,903) 4,472,102 Net change in unrealized appreciation (depreciation) in fair value of investments (4,753,935) (4,171,434)

Total investment revenue (loss) (4,367,911) 1,498,120

Management fees (note 8) 700,491 859,363 Transaction costs 93,772 88,094 Administrative fees (note 8) 81,942 77,777 HST/GST 67,744 81,028 Custodian and record keeping fees 34,032 45,955 Computer services 17,959 17,017 Audit and tax fees 12,326 26,027 Legal and filing fees 10,449 12,471 Independent review committee 7,371 8,892 Other 5,587 9,051

Total operating expenses 1,031,673 1,225,675 Increase (decrease) in net assets attributable to holders of redeemable shares (5,399,584) 272,445

Change in net assets attributable to holders of redeemable shares (note 7): Series A (3,613,053) (38,024) Series F (1,210,221) 184,053 Series I (576,310) 126,416

Change in net assets attributable to holders of redeemable shares per share (note 7): Series A (2.38) (0.02) Series F (2.56) 0.34 Series I (2.10) 0.42



NCM SMALL COMPANIES CLASS Interim Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares

(unaudited)


(in Canadian dollars) All Series Series A Series F Series I

2019 2018 2019 2018 2019 2018 2019 2018

Net assets attributable to holders of redeemable shares, beginning of period 106,891,661 119,558,637 67,781,313 78,173,258 24,515,774 26,303,178 14,594,574 15,082,201

Increase (decrease) in net assets, attributable to holders of redeemable shares (5,399,584) 272,445 (3,613,053)

(38,024) (1,210,221)

184,053 (576,310)

126,416

Transactions attributable to holders of redeemable shares:

Issuance of shares 761,175 3,835,256 115,214 115,073 556,148 3,720,183 89,813 – Reinvestment of dividends 580,726 945,367 384,565 629,028 121,871 205,014 74,290 111,325 Amounts paid on redemptions (7,855,107) (15,656,229) (4,853,228) (8,370,894) (2,823,679) (6,681,064) (178,200) (604,271)

(6,513,206) (10,875,606)

(4,353,449)

(7,626,793)

(2,145,660)

(2,755,867)

(14,097) (492,946)

Dividends declared: From net realized gains on investments (625,063) (1,005,623)

(396,255)

(646,686)

(142,756)

(230,549)

(86,052) (128,388)

(625,063) (1,005,623) (396,255) (646,686) (142,756) (230,549) (86,052) (128,388)

Net assets attributable to holders of redeemable shares, end of period 94,353,808 107,949,853

59,418,556

69,861,755

21,017,137

23,500,815

13,918,115

14,587,283

Dividends per share to holders of redeemable shares: From net realized gain on investments 0.25 0.35 0.29 0.41 0.31 0.43



NCM SMALL COMPANIES CLASS Interim Statements of Cash Flows

(unaudited)



2019 2018 Cash flows from (used in) operating activities

Increase (decrease) in net assets attributable to holders of redeemable shares (5,399,584) 272,445

Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss 685,903 (4,472,102) Net change in unrealized (appreciation) depreciation of investments at fair value

through profit or loss 4,753,935 4,171,434 Purchase of investments (15,324,256) (15,622,608) Proceeds from the sale of investments 29,178,298 24,116,291 Dividends and interest receivable (8,498) (65,159) Accrued expenses (45,700) (3,702)

Net cash from (used in) operating activities 13,840,098 8,396,599

Cash flows from (used in) financing activities Proceeds from the issuance of redeemable shares 800,175 3,811,883 Amounts paid on redemption of redeemable shares (7,861,797) (15,552,449) Dividends to holders of redeemable shares, net of reinvestments (44,337) (60,256)

Net cash from (used in) financing activities (7,105,959) (11,800,822)

Net increase (decrease) in cash and cash equivalents 6,734,139 (3,404,223)

Effect of exchange rates on cash and cash equivalents (239) (133)

Cash and cash equivalents at beginning of period 8,907,474 8,460,168 Cash and cash equivalents at end of period 15,641,374 5,055,812

Dividends received, net of withholding tax paid 913,955 1,092,282 Interest received 149,474 40,011



NCM SMALL COMPANIES CLASS Schedule of Investment Portfolio

(unaudited)

As at March 31, 2019


Description Number of

Shares Cost ($) Fair Value ($) % of Net

Assets CANADIAN EQUITIES Consumer Discretionary

Aritzia Inc. 201,000 3,260,842 3,569,760

3,260,842 3,569,760 3.8%

Energy Birchcliff Energy Ltd. 545,300 1,798,354 1,941,268 Enerflex Ltd. 159,800 2,484,331 3,050,582 Enerplus Corp. 145,100 1,747,423 1,625,120 Ensign Energy Services Inc. 475,200 2,952,677 2,542,320 Kelt Exploration Ltd. 185,000 984,016 1,019,350 North American Construction Group Ltd. 263,200 1,555,096 4,084,864 Parex Resources Inc. 207,900 3,453,189 4,349,268 Parkland Fuel Corp. 91,600 2,594,933 3,740,028

17,570,019 22,352,800 23.7%

Industrials Air Canada 85,200 807,169 2,744,292 Badger Daylighting Ltd. 118,000 3,246,796 4,793,160 Boyd Group Income Fund 14,000 1,951,394 1,925,140 Chorus Aviation Inc. 474,800 2,990,056 3,409,064 Transcontinental Inc., Class 'A' 166,000 3,437,172 2,777,180

12,432,587 15,648,836 16.6%

Information Technology Celestica Inc. 241,000 3,534,356 2,720,890 Descartes Systems Group Inc. (The) 73,200 631,626 3,556,056

4,165,982 6,276,946 6.7%

Materials BMO Junior Gold Index ETF 39,650 2,153,960 1,870,290 Chemtrade Logistics Income Fund 282,200 4,963,723 2,579,308 Detour Gold Corp. 163,200 2,254,006 2,046,528 Hudbay Minerals Inc. 406,600 3,280,845 3,883,030 Intertape Polymer Group Inc. 183,600 2,642,025 3,332,340 Lundin Mining Corp. 424,400 2,059,981 2,631,280 Major Drilling Group International Inc. 883,900 5,326,380 3,968,711

22,680,920 20,311,487 21.5%

Real Estate Altus Group Ltd. 73,000 1,567,398 1,903,110 FirstService Corp. 34,100 697,383 4,059,605

2,264,781 5,962,715 6.3%

Utilities Superior Plus Corp. 246,800 2,950,199 2,825,860

2,950,199 2,825,860 3.0%

TOTAL CANADIAN EQUITIES 65,325,330 76,948,404 81.6%

Health Care Hamilton Thorne Ltd. 969,000 1,039,252 1,046,520

1,039,252 1,046,520 1.1%

TOTAL UNITED STATES EQUITIES 1,039,252 1,046,520 1.1%

TOTAL EQUITIES 66,364,582 77,994,924 82.7%

Less: Transaction costs included in average cost (148,756)

TOTAL INVESTMENTS 66,215,826 77,994,924 82.7%

Other assets, less liabilities 16,358,884 17.3%

TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES 94,353,808 100.0%


NCM INCOME GROWTH CLASS Interim Statements of Financial Position (unaudited)

(in Canadian dollars, except shares outstanding)

As at March 31 September 30 2019 2018

Assets

Cash and cash equivalents 4,735,434 3,470,161 Dividends and interest receivable 388,902 438,397 Portfolio assets sold 1,036,757 – Shares issued 51,953 30,349 Unrealized gain on derivative instruments – 11,000Investments, at fair value through profit or loss 56,053,986 77,833,501

Total assets 62,267,032 81,783,408

Liabilities

Accrued expenses (note 8) 148,200 189,300 Portfolio assets purchased – 802,977Shares redeemed 45,737 530,540Unrealized loss on derivative instruments 6,496 –

Total liabilities (excluding net assets attributable to holders of redeemable shares) 200,433 1,522,817

Net assets attributable to holders of redeemable shares 62,066,599 80,260,591

Net assets attributable to holders of redeemable shares: Series A 15,920,126 19,651,721 Series F 24,213,127 31,641,466 Series I 888,896 2,994,676 Series B 20,892,906 25,829,883 Series T6 99,068 86,697 Series F6 52,476 56,148

Redeemable shares outstanding (note 7): Series A 1,275,660 1,470,571 Series F 1,747,870 2,140,831 Series I 59,441 188,758 Series B 1,735,396 1,997,720 Series T6 8,265 6,720 Series F6 3,803 3,803

Net assets attributable to holders of redeemable shares per share: Series A 12.48 13.36 Series F 13.85 14.78 Series I 14.95 15.87 Series B 12.04 12.93 Series T6 11.99 12.90 Series F6 13.80 14.76





NCM INCOME GROWTH CLASS Interim Statements of Comprehensive Income (Loss)

(unaudited)



2019 2018

Dividend income 1,150,595 1,567,941 Interest for distribution purposes 298,134 420,446 Other income 111 – Net gain (loss) on investments at fair value through profit or loss

Net realized gain (loss) on investments 3,929,749 3,377,461 Net realized gain (loss) on derivative instruments (77,885) (366,205) Net change in unrealized appreciation (depreciation) in fair value of investments (8,303,308) (3,879,665) Net change in unrealized appreciation (depreciation) on derivative instruments (17,496) 190,463


Management fees (note 8) 489,489 679,870 Administrative fees (note 8) 58,427 73,211 HST/GST 53,535 60,052 Transaction costs 40,161 43,928 Custodian and record keeping fees 37,099 42,461 Legal and filing fees 13,575 21,535 Computer services 13,302 13,039 Audit and tax fees 8,025 19,708 Other 7,040 7,806 Independent review committee 5,188 6,847 Risk management fees – (103)

Total operating expenses 725,841 968,354


Change in net assets attributable to holders of redeemable shares (note 7): Series A (886,885) 61,038 Series F (1,399,132) 105,272 Series I (174,218) 38,734 Series B (1,279,049) 137,043 Series T6 (4,503) –

Series F6 (2,154) –

Change in net assets attributable to holders of redeemable shares per share (note 7): Series A (0.66) 0.04 Series F (0.70) 0.05 Series I (1.85) 0.17 Series B (0.69) 0.05 Series T6 (0.55) – Series F6 (0.57) –



NCM INCOME GROWTH CLASS Interim Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares

(unaudited)


(in Canadian dollars) All Series Series A Series F Series I Series B Series T6 Series F6

2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

Net assets attributable to holders of redeemable shares, beginning of period 80,260,591 97,068,018 19,651,721 24,306,520 31,641,466 31,378,195 2,994,676 3,654,322 25,829,883 37,728,981 86,697 – 56,148 –

Increase (decrease) in net assets, attributable to holders of redeemable

shares (3,745,941) 342,087 (886,885) 61,038 (1,399,132) 105,272 (174,218) 38,734 (1,279,049) 137,043 (4,503) – (2,154) –

Transactions attributable to holders of redeemable shares: Issuance of shares 2,040,722 7,601,240 89,184, 314,551 1,489,491 5,643,774 – 117,700 442,247 1,525,245 19,800 – – –

Reinvestment of dividends 1,325,202 1,915,751 331,079 476,914 491,983 623,800 17,876 79,071 484,264 735,966 – – – – Amounts paid on redemptions (16,013,718) (18,364,689) (2,827,770) (3,568,546) (7,291,221) (4,431,896) (1,918,520) (433,439) (3,976,207) (9,930,808) – – – –

(12,647,794) (8,847,698) (2,407,507) (2,777,081) (5,309,747) 1,835,648 (1,900,644) (236,668) (3,049,696) (7,669,597) 19,800

Dividends declared:

From dividend income (1,447,641) (2,063,423) (353,677) (500,423) (578,072) (746,016) (24,967) (79,438) (490,925) (737,546) – – – – From net realized gains on investments (348,972) (438,442) (83,526) (108,160) (141,388) (143,388) (5,951) (16,092) (117,307) (170,293) (529) – (271) –

Return of capital (3,644) – – – – – – – – – (2,397) – (1,247) –

(1,800,257) (2,501,865) (437,203) (608,583) (719,460) (889,913) (30,918) (95,530) (608,232) (907,839) (2,926) – (1,518) –

Net assets attributable to holders of redeemable shares, end of period 62,066,599 86,060,542 15,920,126 20,981,894 24,213,127 32,429,202 888,896 3,360,858 20,892,906 29,288,588 99,068 – 52,476 –

Dividends per share to holders of redeemable shares:

From dividend income 0.27 0.30 0.30 0.33 0.32 0.35 0.27 0.30 – – – –

From net realized gain on investments 0.06 0.06 0.07 0.07 0.07 0.06 0.06 0.06 0.06 – 0.07 – Return of capital – – – – – – – – 0.29 – 0.33 –



NCM INCOME GROWTH CLASS Interim Statements of Cash Flows (unaudited)





Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss (3,929,749) (3,377,461) Net change in unrealized (appreciation) depreciation of investments at fair value

through profit or loss 8,303,308 3,879,665 Net change in unrealized (appreciation) depreciation on derivative instruments 17,496 (190,463) Purchase of investments (5,924,454) (9,540,396) Proceeds from the sale and maturity of investments 21,489,943 21,852,235 Dividends and interest receivable 49,495 157,910 Accrued expenses (41,100) (11,370)


Cash flows from (used in) financing activities Proceeds from the issuance of redeemable shares 2,019,118 7,601,371 Amounts paid on redemption of redeemable shares (16,498,521) (18,563,656) Dividends to holders of redeemable shares, net of reinvestments (475,055) (586,114)


Net increase (decrease) in cash and cash equivalents 1,264,540 1,563,808

Effect of exchange rates on cash and cash equivalents 733 (9,975)

Cash and cash equivalents at beginning of period 3,470,161 2,680,850

Cash and cash equivalents at end of period 4,735,434 4,234,683

Dividends received, net of withholding tax paid 1,201,308 1,710,710 Interest received 296,916 435,587

See accompanying notes to interim fianancial statements.


NCM INCOME GROWTH CLASS Schedule of Investment Portfolio

(unaudited)



Description

Number of Shares / Par

Value Cost ($) Fair Value ($) % of Net

Assets

MUTUAL FUND SHARES NCM Short Term Income Fund, Series 'I' 205,274 2,000,000 1,962,375

2,000,000 1,962,375 3.2% TOTAL MUTUAL FUND SHARES 2,000,000 1,962,375 3.2%

CANADIAN EQUITIES Consumer Discretionary

SIR Royalty Income Fund 180,600 1,888,107 2,907,660

1,888,107 2,907,660 4.7%

Energy

Ensign Energy Services Inc. 376,200 2,579,986 2,012,670

Gibson Energy Inc. 81,000 1,430,668 1,860,570

Parkland Fuel Corp. 66,300 1,484,874 2,707,029

Peyto Exploration & Development Corp. 88,800 1,870,375 620,712

Whitecap Resources Inc. 307,600 2,771,325 1,418,036

10,137,228 8,619,017 13.9%

Financials

Bank of Nova Scotia 23,000 1,884,273 1,636,220

Royal Bank of Canada 21,000 1,660,592 2,117,220

Toronto-Dominion Bank (The) 30,000 1,752,631 2,175,600

5,297,496 5,929,040 9.5%

Industrials

Badger Daylighting Ltd. 75,000 2,201,700 3,046,500

Boyd Group Income Fund 9,000 1,254,475 1,237,590

Chorus Aviation Inc. 371,000 2,394,629 2,663,780

Hardwoods Distribution Inc. 199,300 3,086,749 2,531,110

Morneau Shepell Inc. 87,000 1,499,591 2,384,670

Transcontinental Inc., Class 'A' 113,000 2,322,407 1,890,490

WSP Global Inc. 33,300 1,000,684 2,431,899

13,760,235 16,186,039 26.1%

Materials

Chemtrade Logistics Income Fund 220,200 3,267,189 2,012,628

Intertape Polymer Group Inc. 114,000 2,098,468 2,069,100

Lundin Mining Corp. 309,900 2,599,833 1,921,380

Richards Packaging Income Fund 24,400 870,989 922,564

Supremex Inc. 592,300 3,101,544 1,930,898

11,938,023 8,856,570 14.3%

Real Estate

Altus Group Ltd. 50,000 1,066,997 1,303,500

FirstService Corp. 25,800 871,838 3,071,490

Information Services Corp., Class 'A' 72,000 1,252,844 1,170,000

3,191,679 5,544,990 8.9%

TOTAL EQUITIES 46,212,768 48,043,316 77.4%


NCM INCOME GROWTH CLASS Schedule of Investment Portfolio (continued)

(unaudited)



Description

Number of Shares / Par

Value Cost ($) Fair Value ($) % of Net

Assets

CANADIAN BONDS - LONG (Par Value in CAD except as otherwise stated) Canada Other Corporate

CES Energy Solutions Corp., Callable, 6.375%, 2024/10/21 1,300,000 1,300,000 1,255,854 Clearwater Seafoods Inc., Callable, 6.875%, 2025/05/01 (Par

Value in USD) 575,000 806,370 760,490 Gibson Energy Inc., Callable, 5.250%, 2024/07/15 500,000 500,000 510,000 Kruger Products L.P., Callable, 6.000%, 2025/04/24 500,000 505,625 481,494 Mattamy Group Corp., Callable, 6.875%, 2023/12/15 (Par

Value in USD) 1,000,000 1,346,197 1,366,009 Parkland Fuel Corp., Callable, 5.625%, 2025/05/09 1,000,000 1,007,500 1,005,729 Superior Plus L.P., Callable, 5.125%, 2025/08/27 700,000 700,000 668,719

6,165,692 6,048,295 9.7% TOTAL BONDS 6,165,692 6,048,295 9.7%



Derivative liabilities (6,496) 0.0% Other assets, less liabilities 6,019,109 9.7%



NCM INCOME GROWTH CLASS Schedule of Derivative Investments - Forward Foreign Currency Contracts (unaudited)


Counterparty Credit Rating

Settlement Date

Currency to be Delivered

Fair Value in

Cdn Dollars Currency to be

Received Contract

Price Unrealized

Loss Toronto-Dominion Bank (The) A-1+ April 15, 2019 1,603,000 USD 2,140,826 2,134,330 CAD 1.3315 (6,496)

Net Unrealized Loss (6,496)


NCM US DIVIDEND PLUS CLASS Interim Statements of Financial Position (unaudited)


2019 2018

Assets

Cash and cash equivalents 572,504 11,265,029 Dividends and interest receivable 10,093 48,761 Shares issued – 30,000Unrealized gain on derivative instruments – 137,740Investments, at fair value through profit or loss 13,849,426 20,152,154

Total assets 14,432,023 31,633,684

Liabilities

Accrued expenses (note 8) 56,200 99,000 Shares redeemed 32,267 202,441 Unrealized loss on derivative instruments 43,105 82,261

Total liabilities (excluding net assets attributable to holders of redeemable shares) 131,572 383,702


Net assets attributable to holders of redeemable shares: Series A 7,741,576 16,519,268 Series F 5,851,397 14,193,455 Series I 707,478 537,259

Redeemable shares outstanding (note 7): Series A 450,925 934,171 Series F 296,977 703,308 Series I 34,294 25,572






NCM US DIVIDEND PLUS CLASS Interim Statements of Comprehensive Income (Loss)

(unaudited)



2019 2018

Dividend income 205,896 99,544 Interest for distribution purposes 33,423 62,030 Other income 111112 – Net gain (loss) on investments at fair value through profit or loss

Net realized gain (loss) on investments (2,782,177) (1,207,572) Net realized gain (loss) on derivative instruments (538,851) 197,495 Net change in unrealized appreciation (depreciation) in fair value of investments 1,953,361 1,340,459 Net change in unrealized appreciation (depreciation) on derivative instruments (185,523) 585,500


Management fees (note 8) 159,343 335,578 Transaction costs 47,458 44,668 HST/GST 24,506 46,936 Custodian and record keeping fees 20,419 30,085 Administrative fees (note 8) 18,609 38,909 Legal and filing fees 10,966 9,820 Computer services 4,984 8,485 Other 3,976 7,592 Audit and tax fees 3,598 15,790 Independent review committee 1,681 4,147 Risk management fees – 1,416

Total operating expenses 295,540 543,426 Increase (decrease) in net assets attributable to holders of redeemable shares (1,609,299) 534,030 Withholding tax expense 22,961 56,006 Increase (decrease) in net assets attributable to holders of redeemable shares (1,632,260) 478,024

Change in net assets attributable to holders of redeemable shares (note 7): Series A (822,351) 199,993 Series F (815,560) 243,061 Series I 5,651 34,970

Change in net assets attributable to holders of redeemable shares per share (note 7): Series A (1.20) 0.14 Series F (1.68) 0.26 Series I 0.13 0.62



NCM US DIVIDEND PLUS CLASS Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares (unaudited)



2019 2018 2019 2018 2019 2018 2019 2018

Net assets attributable to holders of redeemable shares, beginning of period 31,249,982

48,554,195

16,519,268

26,400,554

14,193,455

20,719,278

537,259

1,434,363

Increase (decrease) in net assets, attributable to holders of redeemable shares (1,632,260)

478,024 (822,351)

199,993 (815,560)

243,061 5,651

34,970

Transactions attributable to holders of redeemable shares: Issuance of shares 1,521,490

3,126,027 270,617

1,570,530 570,711

1,555,497

680,162

– Reinvestment of dividends 202,039

427,865 114,425

251,319 85,692

165,121 1,922

11,426 Amounts paid on redemptions (16,785,404)

(14,245,910) (8,203,755)

(6,182,098)

(8,074,767)

(7,511,682) (506,882)

(552,130)

(15,061,875)

(10,692,017) (7,818,713)

(4,360,249)

(7,418,364)

(5,791,064) 175,202

(540,704)

Dividends declared: From dividend income (196,991)

(423,075) (105,551)

(234,641) (81,854)

(178,231) (9,586)

(10,203) From net realized gains on investments (58,405)

(95,032) (31,077)

(51,902) (26,280)

(40,315) (1,048)

(2,815)

(255,396)

(518,107) (136,628)

(286,543) (108,134)

(218,546) (10,634)

(13,018)

Net assets attributable to holders of redeemable shares, end of period 14,300,451

37,822,095

7,741,576

21,953,755

5,851,397

14,952,729

707,478

915,611

Dividends per share to holders of redeemable shares: From dividend income 0.18

0.18 0.20

0.20 0.21

0.20 From net realized gain on investments 0.04

0.04 0.04

0.04 0.04

0.04



NCM US DIVIDEND PLUS CLASS Interim Statements of Cash Flows (unaudited)





Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss 2,782,177 1,207,572 Net realized (gain) loss on sale of options (241,351) (1,327,658) Net change in unrealized (appreciation) depreciation of investments at fair value

through profit or loss (1,953,361) (1,332,974) Net change in unrealized (appreciation) depreciation on derivative instruments 185,523 (592,985) Purchase of investments (25,297,759) (24,568,948) Purchase of derivatives (27,003) (58,368) Proceeds from the sale of investments 30,579,326 27,935,180 Proceeds from the sale of derivatives 181,416 1,273,581 Dividends and interest receivable 38,668 (9,715) Accrued expenses (42,800) (48)




Net increase (decrease) in cash and cash equivalents (10,884,869) (8,122,832)

Effect of exchange rates on cash and cash equivalents 192,344 335,281


Cash and cash equivalents at end of period 572,504 7,990,378

Dividends received, net of withholding tax paid 221,603 33,823 Interest received 33,423 62,030



NCM US DIVIDEND PLUS CLASS Schedule of Investment Portfolio (unaudited)



Description Number of Shares Cost ($) Fair Value ($) % of Net

Assets

UNITED STATES EQUITIES Communication Services

Alphabet Inc., Class 'A' 425 626,069 668,213

Comcast Corp., Class 'A' 14,100 656,220 753,099

1,282,289 1,421,312 9.9%

Consumer Discretionary

Dollar Tree Inc. 2,300 255,647 322,755

McDonald's Corp. 1,200 281,061 304,436

Nike Inc., Class 'B' 2,500 279,651 281,251

Ross Stores Inc. 2,900 313,937 360,693

TJX Cos. Inc. 6,000 376,411 426,516

1,506,707 1,695,651 11.9%

Consumer Staples

Anheuser-Busch InBev NV, ADR 2,250 286,545 252,404

Constellation Brands Inc., Class 'A' 1,800 445,982 421,618

Walmart Inc. 2,050 244,877 267,105

977,404 941,127 6.6%

Energy

Chevron Corp. 2,050 313,974 337,353

Phillips 66 2,600 322,494 330,570

636,468 667,923 4.7%

Financials

Chubb Ltd. 1,200 224,249 224,568

First Republic Bank 2,350 301,477 315,393

JPMorgan Chase & Co. 2,600 362,768 351,619

Progressive Corp. (The) 5,000 425,869 481,543

S&P Global Inc. 2,340 528,459 658,205

1,842,822 2,031,328 14.2%

Health Care

Abbott Laboratories 3,100 289,648 331,067

Baxter International Inc. 6,240 549,221 677,827

Becton 1,830 566,435 610,537

Medtronic PLC 2,400 293,575 292,028

UnitedHealth Group Inc. 1,870 676,515 617,711

2,375,394 2,529,170 17.7% Industrials

Honeywell International Inc. 2,020 395,453 428,865

Parker Hannifin Corp. 1,850 429,352 424,160

United Technologies Corp. 2,400 420,870 413,257

1,245,675 1,266,282 8.9%

Information Technology

Accenture PLC, Class 'A' 2,300 491,594 540,854

Apple Inc. 1,900 419,737 482,151

Cognizant Technology Solutions Corp., Class 'A' 4,100 381,698 396,837

Microsoft Corp. 4,350 617,386 685,395

Visa Inc., Class 'A' 3,270 582,657 682,325

2,493,072 2,787,562 19.3%


NCM US DIVIDEND PLUS CLASS Schedule of Investment Portfolio (continued)

(unaudited)



Description Number of Shares Cost ($) Fair Value ($) % of Net

Assets

Materials

Avery Dennison Corp. 2,000 242,253 301,925

Sherwin-Williams Co. (The) 360 193,074 207,146

435,327 509,071 3.6%

TOTAL EQUITIES 12,795,158 13,849,426 96.8% Less: Transaction costs included in average cost (5,223)


Derivative liabilities (43,105) -0.3% Other assets, less liabilities 494,130 3.5%



NCM US DIVIDEND PLUS CLASS Schedule of Derivative Investments - Forward Foreign Currency Contracts (unaudited)



Settlement Date


Fair Value in

Cdn Dollars Currency to be

Received Contract

Price Unrealized

Loss

Toronto-Dominion Bank (The) A-1+ April 15, 2019 10,637,000 USD 14,205,845 14,162,740 CAD 1.3315 (43,105) Net Unrealized Loss (43,105)


NCM ENERGY PLUS CLASS Interim Statements of Financial Position

(unaudited)


2019 2018

Assets

Cash and cash equivalents 656,004 304,045 Dividends and interest receivable 38,746 27,290 Portfolio assets sold – 224,650 Investments, at fair value through profit or loss 14,827,169 25,136,608 Total assets 15,521,919 25,692,593

Liabilities

Accrued expenses (note 8) 45,700 60,900 Shares redeemed 5,731 64,538

Total liabilities (excluding net assets attributable to holders of redeemable shares) 51,431 125,438



Redeemable shares outstanding (note 7): Series A 1,469,160 1,580,498

Series F 564,911 723,689 Series I 730,474 742,710






NCM ENERGY PLUS CLASS Interim Statements of Comprehensive Loss

(unaudited)



2019 2018

Dividend income 136,123 173,401 Interest for distribution purposes 188 1,628 Net gain (loss) on investments at fair value through profit or loss

Net realized gain (loss) on investments (1,645,846) (4,030,948) Net change in unrealized appreciation (depreciation) in fair value of investments (6,180,904) 449,052

Total investment revenue (loss) (7,690,439) (3,406,867)

Management fees (note 8) 101,755 152,854 Custodian and record keeping fees 24,031 26,727 Transaction costs 23,585 17,945 Administrative fees (note 8) 14,499 16,998 HST/GST 11,827 15,200 Legal and filing fees 9,079 5,672 Computer services 3,813 3,905 Other 3,624 605 Audit and tax fees 3,028 4,979 Independent review committee 1,189 1,830

Total operating expenses 196,430 246,715 Increase (decrease) in net assets attributable to holders of redeemable shares (7,886,869) (3,653,582)

Change in net assets attributable to holders of redeemable shares (note 7): Series A (3,900,524) (2,120,513) Series F (1,860,103) (425,555) Series I (2,126,242) (1,107,514)

Change in net assets attributable to holders of redeemable shares per share (note 7): Series A (2.54) (1.42) Series F (3.00) (1.50) Series I (2.91) (1.54)



NCM ENERGY PLUS CLASS Interim Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares

(unaudited)



2019 2018 2019 2018 2019 2018 2019 2018

Net assets attributable to holders of redeemable shares, beginning of period 25,567,155 28,145,147

12,291,108

16,309,645

6,280,023

3,518,405

6,996,024

8,317,097

Increase (decrease) in net assets, attributable to holders of redeemable shares (7,886,869) (3,653,582)

(3,900,524) (2,120,513) (1,860,103) (425,555) (2,126,242) (1,107,514)

Transactions attributable to holders of redeemable shares: Issuance of shares 226,507 385,548 206,289 105,985 20,218 222,391 – 57,172 Reinvestment of dividends 489,706 262,301

242,937 152,144 109,821 28,296 136,948 81,861 Amounts paid on redemptions (2,427,103) (4,525,875)

(1,027,853) (2,960,749) (1,161,092) (1,288,079) (238,158) (277,047)

(1,710,890) (3,878,026)

(578,627) (2,702,620) (1,031,053) (1,037,392) (101,210) (138,014) Dividends declared:

From net realized gains on investments (498,908) (268,909)

(245,599) (154,029) (116,361) (33,019) (136,948) (81,861)

(498,908) (268,909)

(245,599) (154,029) (116,361) (33,019) (136,948) (81,861)


7,566,358

11,332,483

3,272,506

2,022,439

4,631,624

6,989,708

Dividends per share to holders of redeemable shares: From net realized gain on investments 0.16 0.08 0.18 0.09 0.19 0.09



NCM ENERGY PLUS CLASS Interim Statements of Cash Flows (unaudited)




Increase (decrease) in net assets attributable to holders of redeemable shares (7,886,869) (3,653,582)

Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss 1,645,846 4,030,948 Net change in unrealized (appreciation) depreciation of investments at fair value

through profit or loss 6,180,904 (449,052) Purchase of investments (3,152,803) (5,496,099) Proceeds from the sale of investments 5,860,142 10,741,118 Dividends and interest receivable (11,456) 35,340 Accrued expenses (15,200) (10,362) Net cash from (used in) operating activities 2,620,564 5,198,311

Cash flows from (used in) financing activities Proceeds from the issuance of redeemable shares 226,507 385,548 Amounts paid on redemption of redeemable shares (2,485,910) (4,559,008) Dividends to holders of redeemable shares, net of reinvestments (9,202) (6,608)


Net increase (decrease) in cash and cash equivalents 351,959 1,018,243

Effect of exchange rates on cash and cash equivalents – (4,010)

Cash and cash equivalents at beginning of period 304,045 55,915

Cash and cash equivalents at end of period 656,004 1,070,148

Dividends received, net of withholding tax paid 124,667 208,741 Interest received 188 1,628



NCM ENERGY PLUS CLASS Schedule of Investment Portfolio (unaudited)




Shares/warrants Cost ($) Fair Value ($) % of Net

Assets

CANADIAN EQUITIES Energy

ARC Resources Ltd. 100,000 930,015 912,000

Arrow Exploration Corp., Warrants, 2020/09/28 150,000 – –

Baytex Energy Corp. 565,379 2,448,092 1,283,411

Birchcliff Energy Ltd. 380,000 3,067,388 1,352,800

Canadian Natural Resources Ltd. 25,000 923,700 917,250

Encana Corp. 140,000 1,303,888 1,355,200

Enerplus Corp. 107,000 1,223,661 1,198,400

Gear Energy Ltd. 1,042,300 1,013,662 635,803

InPlay Oil Corp. 1,246,380 2,245,098 1,258,844

Kelt Exploration Ltd. 256,000 1,685,775 1,410,560

Parex Resources Inc. 75,000 735,969 1,569,000

PetroTal Corp. 3,212,850 555,729 722,891

Surge Energy Inc. 635,313 1,600,989 838,613

TORC Oil & Gas Ltd. 106,000 796,301 488,660

Whitecap Resources Inc. 191,700 2,102,675 883,737

20,632,942 14,827,169 95.8% TOTAL EQUITIES 20,632,942 14,827,169 95.8%



Other assets, less liabilities 643,319 4.2% TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES 15,470,488 100.0%


NCM ENTREPRENEURS CLASS Interim Statements of Financial Position

(unaudited)


2019 2018

Assets

Cash and cash equivalents 16,501,555 18,748,942 Dividends and interest receivable 122,556 147,330 Portfolio assets sold 135,530 206,237 Shares issued 56,836 164,768 Investments, at fair value through profit or loss 65,409,085 70,483,934 Total assets 82,225,562 89,751,211

Liabilities

Accrued expenses (note 8) 168,000 201,000 Portfolio assets purchased 195,482 36,260 Shares redeemed 49,599 310,334

Total liabilities (excluding net assets attributable to holders of redeemable shares) 413,081 547,594 Net assets attributable to holders of redeemable shares 81,812,481 89,203,617


Redeemable shares outstanding (note 7): Series A 1,168,218 1,277,260 Series F 1,517,961 1,543,043 Series I 164,327 146,918






NCM ENTREPRENEURS CLASS Interim Statements of Comprehensive Income (Loss)

(unaudited)



2019 2018

Dividend income 613,017 535,695 Interest for distribution purposes 107,460 111,927 Other income 737 - Net gain (loss) on investments at fair value through profit or loss

Net realized gain (loss) on investments 3,424,087 2,477,392 Net change in unrealized appreciation (depreciation) in fair value of investments (7,446,926) 1,320,401


Management fees (note 8) 535,046 580,289 Transaction costs 84,680 89,884 Administrative fees (note 8) 69,720 53,091 HST/GST 57,903 208,431 Custodian and record keeping fees 41,073 39,422 Computer services 14,971 11,599 Legal and filing fees 11,646 12,668 Audit and tax fees 11,629 24,879 Other 9,141 9,678 Independent review committee 6,238 5,790 Performance fee (note 8) - 1,726,148Total operating expenses 842,047 2,761,879

Increase (decrease) in net assets attributable to holders of redeemable shares before tax (4,143,672) 1,683,536 Withholding tax expense 7,511 5,087

Increase (decrease) in net assets attributable to holders of redeemable shares (4,151,183) 1,678,449

Change in net assets attributable to holders of redeemable shares (note 7): Series A (1,859,690) 896,333 Series F (2,125,311) 624,305 Series I (166,182) 157,811

Change in net assets attributable to holders of redeemable shares per share (note 7): Series A (1.53) 0.68 Series F (1.42) 0.55 Series I (1.02) 1.30



NCM ENTREPRENEURS CLASS Interim Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares (unaudited)



2019 2018 2019 2018 2019 2018 2019 2018


36,372,579

34,745,700

47,893,751

25,945,861

4,937,287

4,005,460

Increase (decrease) in net assets, attributable to holders of redeemable shares (4,151,183) 1,678,449 (1,859,690)

896,333

(2,125,311)

624,305 (166,182)

157,811

Transactions attributable to holders of redeemable shares: Issuance of shares 11,808,390 36,816,679

1,732,588

12,757,604

8,993,461

23,694,674

1,082,341

364,401

Reinvestment of dividends 200,707 327,413 87,400 174,714

99,979 132,536 13,328

20,163 Amounts paid on redemptions (15,014,636) (6,665,902) (4,675,458) (4,141,294)

(9,786,259) (2,433,880)

(552,919)

(90,728)

(3,005,539) 30,478,190

(2,855,470)

8,791,024

(692,819)

21,393,330

542,750

293,836 Dividends declared:


(95,150)

(197,142)

(124,171) (151,584)

(15,093)

(22,808)

(234,414) (371,534) (95,150) (197,142)

(124,171) (151,584) (15,093)

(22,808)


31,562,269

44,235,915

44,951,450

47,811,912

5,298,762

4,434,299

Dividends per share to holders of redeemable shares: From net realized gain on investments 0.08 0.16

0.08 0.18 0.09

0.19



NCM ENTREPRENEURS CLASS Interim Statements of Cash Flows (unaudited)




Increase (decrease) in net assets attributable to holders of redeemable shares (4,151,183) 1,678,449

Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss (3,424,087) (2,477,392) Net change in unrealized (appreciation) depreciation of investments at fair value

through profit or loss 7,446,926 (1,320,401) Purchase of investments (12,343,249) (25,019,132) Proceeds from the sale of investments 13,625,048 7,501,807 Dividends and interest receivable 24,774 (46,974) Accrued expenses (33,000) 75,217 Performance fees payable – 1,872,871

Net cash from (used in) operating activities 1,145,229 (17,735,555)


Net cash from (used in) financing activities (3,392,756) 30,231,026

Net increase (decrease) in cash and cash equivalents (2,247,527) 12,495,471

Effect of exchange rates on cash and cash equivalents 140 148



Dividends received, net of withholding tax paid 630,497 485,546 Interest received 107,243 110,015



NCM ENTREPRENEURS CLASS Schedule of Investment Portfolio (unaudited)





Assets

CANADIAN EQUITIES Consumer Discretionary

Avante Logixx Inc. 1,000,000 2,032,240 1,360,000

Indigo Books & Music Inc. 237,300 3,806,591 2,373,000

Pollard Banknote Ltd. 72,000 874,010 1,604,880

SIR Royalty Income Fund 142,800 1,913,727 2,299,080

8,626,568 7,636,960 9.3%

Energy

AKITA Drilling Ltd., Class 'A' 931,404 5,746,955 3,027,063

STEP Energy Services Ltd. 364,900 2,805,717 748,045

8,552,672 3,775,108 4.6%

Health Care

Nuvo Pharmaceuticals Inc. 635,400 2,879,227 1,524,960

2,879,227 1,524,960 1.9%

Industrials

ESI Energy Services Inc. 216,500 75,997 43,300

Hammond Power Solutions Inc. 112,900 933,171 804,977

Hardwoods Distribution Inc. 430,000 6,230,529 5,461,000

Inscape Corp., Class 'B' 709,500 1,988,721 1,206,150

PFB Corp. 383,700 2,615,983 4,170,819

Questor Technology Inc. 994,100 2,408,108 4,503,273

Redishred Capital Corp. 5,938,000 3,591,519 4,453,500

Velan Inc. 167,600 2,895,244 1,530,188

20,739,272 22,173,207 27.1%


Firan Technology Group Corp. 1,826,600 5,139,125 5,753,790

Redline Communications Group Inc. 534,200 896,016 876,088

6,035,141 6,629,878 8.1% Materials

ADF Group Inc. 1,041,100 2,488,134 1,145,210

Orbit Garant Drilling Inc. 2,520,900 4,175,161 3,529,260

Richards Packaging Income Fund 28,600 1,020,214 1,081,366

Supremex Inc. 595,300 2,839,937 1,940,678

10,523,446 7,696,514 9.4% Utilities

Global Water Resources Corp. 236,500 2,100,459 3,133,625

2,100,459 3,133,625 3.8%


UNITED STATES EQUITIES Financials

Currency Exchange International Corp. 186,900 4,781,021 4,502,421

4,781,021 4,502,421 5.5%

Health Care

Hamilton Thorne Ltd. 5,368,900 5,081,905 5,798,412

5,081,905 5,798,412 7.1%



NCM ENTREPRENEURS CLASS Schedule of Investment Portfolio (continued)

(unaudited)





Assets

INTERNATIONAL EQUITIES Ghana

Geodrill Ltd. 1,800,000 3,728,985 2,538,000

3,728,985 2,538,000 3.1%

TOTAL INTERNATIONAL EQUITIES 3,728,985 2,538,000 3.1%

TOTAL EQUITIES 73,048,696 65,409,085 79.9%

Less: Transaction costs included in average cost (271,445) TOTAL INVESTMENTS 72,777,251 65,409,085 79.9%

Other assets, less liabilities 16,403,396 20.1%



NCM GLOBAL INCOME GROWTH CLASS Interim Statements of Financial Position (unaudited)


2019 2018

Assets

Cash and cash equivalents 1,747,813 7,808,784 Dividends and interest receivable 883,420 874,577 Shares issued 24,252 71,666 Unrealized gain on derivative instruments 143,218 720,690 Investments, at fair value through profit or loss 163,829,679 173,238,510

Total assets 166,628,382 182,714,227

Liabilities

Accrued expenses (note 8) 331,700 390,400 Shares redeemed 123,692 665,381 Unrealized loss on derivative instruments 298,556 11,163

Total liabilities (excluding net assets attributable to holders of redeemable shares) 753,948 1,066,944


Net assets attributable to holders of redeemable shares: Series A 92,271,198 101,423,540 Series F 57,406,865 62,894,798 Series I 15,664,891 16,409,656 Series T6 324,952 369,893 Series F6 206,528 549,396

Redeemable shares outstanding (note 7): Series A 7,108,116 7,481,902 Series F 4,082,345 4,306,448 Series I 1,028,056 1,042,540 Series T6 25,917 27,887 Series F6 15,209 38,451

Net assets attributable to holders of redeemable shares per share: Series A 12.98 13.56 Series F 14.06 14.60 Series I 15.24 15.74 Series T6 12.54 13.26 Series F6 13.58 14.29





NCM GLOBAL INCOME GROWTH CLASS Interim Statements of Comprehensive Loss

(unaudited)



2019 2018

Dividend income 1,491,983 1,247,600 Interest for distribution purposes 675,556 712,063 Other income 115 –

Net gain (loss) on investments at fair value through profit or loss Net realized gain (loss) on investments 485,500 1,339,844 Net realized gain (loss) on derivative instruments (2,311,794) (9,233,143) Net change in unrealized appreciation (depreciation) in fair value of investments (2,126,518) 3,929,725 Net change in unrealized appreciation (depreciation) on derivative instruments (864,865) 2,838,332

Total investment revenue (loss) (2,650,023) 834,421

Management fees (note 8) 1,202,465 1,175,874 Administrative fees (note 8) 142,329 121,516 HST/GST 105,534 92,789 Custodian and record keeping fees 58,642 45,328 Computer services 30,992 27,282 Transaction costs 25,338 43,303 Audit and tax fees 20,289 39,402 Other 16,106 18,004 Legal and filing fees 14,966 29,478 Independent review committee 13,067 13,637

Total operating expenses 1,629,728 1,606,613

Increase (decrease) in net assets attributable to holders of redeemable shares before tax (4,279,751) (772,192) Withholding tax expense 161,075 143,894

Increase (decrease) in net assets attributable to holders of redeemable shares (4,440,826) (916,086)

Change in net assets attributable to holders of redeemable shares (note 7): Series A (2,767,390) (730,982) Series F (1,367,902) (329,359) Series I (266,252) 176,349 Series T6 (12,890) (12,204) Series F6 (26,392) (19,890)

Change in net assets attributable to holders of redeemable shares per share (note 7): Series A (0.38) (0.11) Series F (0.32) (0.10) Series I (0.27) 0.15 Series T6 (0.46) (0.99) Series F6 (0.87) (0.95)



NCM GLOBAL INCOME GROWTH CLASS Interim Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares

(unaudited)


(in Canadian dollars) All Series Series A Series F Series I Series T6 Series F6

2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018


101,423,540

82,710,251

62,894,798

41,209,180

16,409,656

19,087,703

369,893

– 549,396 –

Increase (decrease) in net assets, attributable to holders of redeemable shares (4,440,826) (916,086) (2,767,390)

(730,982) (1,367,902)

(329,359) (266,252)

176,349 (12,890)

(12,204) (26,392)

(19,890)

Transactions attributable to holders of redeemable shares: Issuance of shares 10,210,526 51,440,782

3,410,132

28,584,024

5,600,966

21,694,480

1,177,628

420,800

21,800 244,324 – 497,154 Reinvestment of dividends 2,435,505 2,738,793

1,489,500

1,615,381

733,777 786,781 212,228 336,154 – 477 – –

Amounts paid on redemptions (20,884,764) (11,723,423)

(9,552,366)

(7,320,625)

(9,395,391)

(3,579,095)

(1,589,760)

(823,703)

(43,000)

– (304,247) –

(8,238,733) 42,456,152

(4,652,734)

22,878,780

(3,060,648)

18,902,166

(199,904)

(66,749) (21,200)

244,801 (304,247)

497,154

Dividends declared: From dividend income (2,548,983) (2,440,532)

(1,437,554)

(1,392,310)

(878,239)

(773,092) (233,190)

(275,130) – – – –


(294,664)

(546,236)

(181,144)

(284,770) (45,419) (126,080) – – – –

From return of capital (23,080) (11,300) – – – – – – (10,851) (4,047) (12,229) (7,253)

(3,093,290) (3,408,918)

(1,732,218)

(1,938,546)

(1,059,383)

(1,057,862)

(278,609)

(401,210) (10,851)

(4,047) (12,229)

(7,253)


92,271,198

102,919,503

57,406,865

58,724,125

15,664,891

18,796,093

324,952

228,550 206,528 470,011

Dividends per share to holders of redeemable shares: From dividend income 0.20 0.20 0.22 0.21 0.23 0.23 – – – – From net realized gain on investments 0.04 0.09 0.04 0.10 0.05 0.10 – – – – From return of capital – – – – – – 0.39 0.29 0.42 0.31



NCM GLOBAL INCOME GROWTH CLASS Interim Statements of Cash Flows (unaudited)




Increase (decrease) in net assets attributable to holders of redeemable shares (4,440,826) (916,086)

Adjustments for: Net realized (gain) loss on sale of investments at fair value through profit or loss (485,500) (1,339,844) Net change in unrealized (appreciation) depreciation of investments at fair value through

profit or loss 2,126,518 (3,929,725) Net change in unrealized (appreciation) depreciation on derivative instruments 864,865 (2,838,332) Purchase of investments (4,995,655) (34,106,551) Proceeds from the sale and maturity of investments 12,651,891 13,228,042 Dividends and interest receivable (8,843) (103,879) Accrued expenses (58,700) 99,030

Net cash from (used in) operating activities 5,653,750 (29,907,345)


Net cash from (used in) financing activities (11,826,298) 39,014,194

Net increase (decrease) in cash and cash equivalents (6,172,548) 9,106,849

Effect of exchange rates on cash and cash equivalents 111,577 41,277



Dividends received, net of withholding tax paid 1,309,078 1,040,692 Interest received 688,543 671,198



NCM GLOBAL INCOME GROWTH CLASS Schedule of Investment Portfolio (unaudited)



Description

Number of Shares /

Par Value Cost ($) Fair Value ($) % of Net

Assets

CANADIAN EQUITIES Financials

Royal Bank of Canada 28,900 2,428,314 2,913,698

Toronto-Dominion Bank (The) 41,600 2,413,505 3,016,832

4,841,819 5,930,530 3.6%


UNITED STATES EQUITIES Communication Services

Alphabet Inc., Class 'A' 3,063 3,918,624 4,815,851

3,918,624 4,815,851 2.9%

Consumer Discretionary

Alibaba Group Holding Ltd., ADR 17,300 3,765,522 4,216,773

Carnival Corp. 60,025 3,910,772 4,067,257

7,676,294 8,284,030 5.0%

Consumer Staples

Anheuser-Busch InBev NV, ADR 24,589 2,997,264 2,758,387

Costco Wholesale Corp. 7,889 1,742,333 2,551,988

General Mills Inc. 33,952 2,849,652 2,347,286

7,589,249 7,657,661 4.6%

Financials

First Republic Bank 41,962 4,167,708 5,631,701

JPMorgan Chase & Co. 49,960 3,540,164 6,756,501

Wells Fargo & Co. 56,937 3,105,819 3,675,460

10,813,691 16,063,662 9.7%

Health Care

Johnson & Johnson 26,063 2,975,005 4,867,329

Medtronic PLC 36,688 3,951,948 4,464,135

PerkinElmer Inc. 22,635 1,651,178 2,913,852

8,578,131 12,245,316 7.4%

Industrials

Eaton Corp. PLC 40,928 3,107,750 4,404,841

Stanley Black & Decker Inc. 21,843 2,584,111 3,973,598

United Technologies Corp. 33,621 4,082,967 5,789,220

9,774,828 14,167,659 8.5%


Microsoft Corp. 25,800 3,588,729 4,065,098

3,588,729 4,065,098 2.4%

Materials

DowDuPont Inc. 43,896 2,288,962 3,126,251

Ecolab Inc. 6,800 1,409,114 1,603,770

3,698,076 4,730,021 2.9%



NCM GLOBAL INCOME GROWTH CLASS Schedule of Investment Portfolio (continued)

(unaudited)



Description

Number of Shares /


Assets INTERNATIONAL EQUITIES Denmark A.P. Moller - Maersk A/S, Class 'B' 450 896,308 763,334 Alm. Brand A/S 273,300 1,650,054 3,152,160

Danske Bank A/S 56,742 2,404,613 1,331,693

DSV A/S 58,224 3,787,064 6,439,278

Ringkjoebing Landbobank A/S 26,100 1,851,655 2,144,967

Royal Unibrew A/S 39,991 1,657,247 3,945,486

Topdanmark A/S 73,634 3,617,256 4,918,086

15,864,197 22,695,004 13.7%

Finland

Kone OYJ, Class 'B' 36,815 2,251,715 2,482,922

2,251,715 2,482,922 1.5% France

BNP Paribas SA 32,784 2,744,836 2,095,489

Valeo SA 37,955 1,868,476 1,471,775

4,613,312 3,567,264 2.1%

Indonesia

PT Bank Central Asia TBK 2,328,700 3,448,320 6,062,570

3,448,320 6,062,570 3.7%

Ireland

CRH PLC 23,504 791,190 971,755

791,190 971,755 0.6%

Japan

Hoya Corp. 29,400 1,558,330 2,593,622

Nitto Denko Corp. 17,300 1,578,983 1,214,220

3,137,313 3,807,842 2.3%

Luxembourg

Spotify Technology SA 8,000 1,871,686 1,483,439

1,871,686 1,483,439 0.9%

Netherlands

Hal Trust 8,200 1,327,396 1,672,880

Heineken NV 34,851 4,235,910 4,918,407

Royal Dutch Shell PLC, Class 'A' 45,297 1,815,722 1,901,206

7,379,028 8,492,493 5.1%

Norway

Atea ASA 125,344 1,415,724 2,434,525

1,415,724 2,434,525 1.5%

Portugal

Galp Energia SGPS SA, Class 'B' 133,826 2,493,987 2,866,689

2,493,987 2,866,689 1.7%

Switzerland

Novartis AG, Registered 31,486 2,801,723 4,045,450

2,801,723 4,045,450 2.4%


NCM GLOBAL INCOME GROWTH CLASS Schedule of Investment Portfolio (continued)

(unaudited)



Description

Number of Shares /


Assets United Kingdom British American Tobacco PLC 24,613 1,627,321 1,368,519 Howden Joinery Group PLC 258,962 1,675,291 2,187,749 Reckitt Benckiser Group PLC 8,763 980,132 973,556 Unilever PLC 14,633 688,979 1,119,550

4,971,723 5,649,374 3.4%

TOTAL INTERNATIONAL EQUITIES 51,039,918 64,559,327 38.9%

TOTAL EQUITIES 111,519,359 142,519,155 85.9%

CANADIAN BONDS - LONG (Par Value in CAD except as otherwise stated) Canada Other Corporate

AGT Food and Ingredients Inc., Callable, 5.875%, 2021/12/21 1,000,000 1,016,250 1,009,167 Brookfield Residential Properties Inc., Callable, 6.125%, 2023/05/15 1,000,000 1,045,000 1,010,417 CES Energy Solutions Corp., Callable, 6.375%, 2024/10/21 1,200,000 1,200,000 1,159,250 Clearwater Seafoods Inc., Callable, 6.875%, 2025/05/01 (Par Value in USD) 575,000 806,370 760,489 Gateway Casinos & Entertainment Ltd., Callable, 8.250%, 2024/03/01 (Par

Value in USD) 1,000,000 1,342,439 1,407,757 Gibson Energy Inc., Callable, 5.250%, 2024/07/15 1,000,000 1,000,000 1,020,000 goeasy Ltd., Callable, 7.875%, 2022/11/01 (Par Value in USD) 1,000,000 1,318,403 1,404,311 Iron Mountain Canada Operations ULC, Callable, 5.375%, 2023/09/15 1,000,000 1,045,000 1,037,500 Mattamy Group Corp., Callable, 6.875%, 2023/12/15 (Par Value in USD) 1,250,000 1,688,668 1,707,511 Parkland Fuel Corp., Callable, 5.625%, 2025/05/09 1,000,000 1,007,500 1,005,729 Russel Metals Inc., Callable, 6.000%, 2026/03/16 1,500,000 1,506,875 1,526,876 Superior Plus L.P., Callable, 5.250%, 2024/02/27 1,500,000 1,531,250 1,472,500

14,507,755 14,521,507 8.8%

TOTAL CANADIAN BONDS 14,507,755 14,521,507 8.8%

UNITED STATES BONDS - LONG (Par Value in USD) ADT Corp. (The), 6.250%, 2021/10/15 1,000,000 1,340,237 1,408,158 Cosan Ltd., Callable, 5.950%, 2024/09/20 1,000,000 1,317,470 1,356,310 Mueller Industries Inc., Callable, 6.000%, 2027/03/01 1,000,000 1,342,429 1,315,911 T-Mobile USA Inc., Callable, 6.500%, 2026/01/15 1,000,000 1,367,756 1,429,467 Western Digital Corp., Callable, 4.750%, 2026/02/15 1,000,000 1,280,863 1,279,171

6,648,755 6,789,017 4.1%

TOTAL UNITED STATES BONDS 6,648,755 6,789,017 4.1%

TOTAL BONDS - LONG 21,156,510 21,310,524 12.9%

Less: Transaction costs included in average cost (58,091) TOTAL INVESTMENTS 132,617,778 163,829,679 98.8%

Derivative assets 143,218 0.1% Derivative liabilities (298,556) -0.2% Other assets, less liabilities 2,200,093 1.3% TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE SHARES 165,874,434 100.0%


NCM GLOBAL INCOME GROWTH CLASS

Schedule of Derivative Investments - Forward Foreign Currency Contracts (unaudited)



Settlement Date


Fair Value in Cdn Dollars

Currency to be Received

Contract Price

Unrealized Gain

Toronto-Dominion Bank (The) A-1+ June 17, 2019 56,942,500 DKK 11,500,048 11,566,861 CAD 0.2031 66,813 Toronto-Dominion Bank (The) A-1+ June 17, 2019 5,714,100 EUR 8,611,096 8,650,747 CAD 1.5139 39,651 Toronto-Dominion Bank (The) A-1+ June 17, 2019 1,863,500 GBP 3,250,259 3,286,320 CAD 1.7635 36,061 Toronto-Dominion Bank (The) A-1+ June 17, 2019 7,771,300 NOK 1,206,882 1,207,575 CAD 0.1554 693

Net Unrealized Gain 143,218


Settlement Date


Fair Value in Cdn Dollars

Currency to be Received

Contract Price

Unrealized Loss

Toronto-Dominion Bank (The) A-1+ June 17, 2019 1,432,300 CHF 1,931,720 1,910,370 CAD 1.3338 (21,350) Toronto-Dominion Bank (The) A-1+ June 17, 2019 156,672,000 JPY 1,898,787 1,884,028 CAD 0.0120 (14,759) Toronto-Dominion Bank (The) A-1+ April 15, 2019 64,764,400 USD 86,493,655 86,231,208 CAD 1.3315 (262,447)

Net Unrealized Loss (298,556)

NCM OPPORTUNITIES CORP. Notes to Interim Financial Statements

(unaudited)


1 NOTES TO INTERIM FINANCIAL STATEMENTS OF NCM OPPORTUNITIES CORP. | MARCH 31, 2019

1. Reporting Entity:

On August 27, 2018, Norrep Opportunities Corp. changed its name to NCM Opportunities Corp. NCM

Opportunities Corp. (the “Corporation”) is incorporated under the laws of the Province of Alberta and

consists of NCM Small Companies Class, NCM Income Growth Class, NCM US Dividend Plus Class,

NCM Energy Plus Class, NCM Entrepreneurs Class, and NCM Global Income Growth Class (the “Funds”

and each, a “Fund”).

The Corporation may issue an unlimited number of common shares and special shares in multiple series.

Each special share represents an equal undivided interest in the net assets of its Fund. CIBC Mellon

Trust Company is custodian of each Fund, Scotia Capital Inc. is the Prime Broker (where applicable) and

Norrep Investment Management Group Inc. is the Promoter of each Fund. On June 29, 2017, MF Series

was renamed as Series A. Additionally, Norrep Energy Class was renamed as Norrep Energy Plus Class.

On August 27, 2018, Norrep II Class was renamed as NCM Small Companies Class, Norrep Income

Growth Class was renamed as NCM Income Growth Class, Norrep US Dividend Plus Class was renamed

as NCM US Dividend Plus Class, Norrep Energy Plus Class was renamed as NCM Energy Plus Class,

Norrep Entrepreneurs Class was renamed as NCM Entrepreneurs Class, Norrep Global Income Growth

Class was renamed as NCM Global Income Growth Class, and Norrep Tactical Opportunities Class was

renamed NCM Tactical Opportunities Class. On October 31, 2018, NCM Tactical Opportunities Class

merged into NCM Growth and Income Portfolio and ceased to exist.

Effective August 27, 2018, NCM Opportunities Corp. changed its year end from October 31 to September 30.

NCM Asset Management Ltd. (formerly, Norrep Capital Management Ltd.) (“NCM”) is the Manager and

Portfolio Manager for each of the Funds in the Corporation. As Manager, it provides overall management

and direction for the Funds as well as manages the day–to–day operation of the Funds. As Portfolio

Manager, it provides investment management services to the Funds (see note 8).

2. Basis of preparation:

(a) Statement of compliance:

These financial statements have been prepared in accordance with International Financial Reporting

Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The Funds’

significant accounting policies under IFRS are presented in note 3. These policies have been applied

consistently to all periods presented.

These interim financial statements have also been prepared in accordance with International

Accounting Standards (“IAS”) 34, Interim Financial Reporting.

The financial statements of the Funds were approved and were authorized for issue by the Funds’

Board of Directors on May 30, 2019.


(unaudited)



2. Basis of preparation (continued):

(b) Basis of measurement:

The financial statements have been prepared on the historical cost basis, except for investments and

derivatives at fair value through profit or loss which are measured at fair value.

(c) Functional and presentation currency:

The financial statements are presented in Canadian dollars, which is the Funds’ functional currency,

and all values are rounded to the nearest dollar except where otherwise indicated.

(d) Use of judgements and estimates:

These financial statements include estimates and assumptions made by management that affect the

application of accounting policies and the reported amounts of assets, liabilities, income and

expenses, and gains and losses during the reporting period. Actual results could differ from those

estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are

recognised prospectively. Significant estimates include the valuation of investments and the unrealized

gains/losses from investments.

3. Significant accounting policies:

The Funds have consistently applied the following accounting policies to all periods presented in these

financial statements.

(a) Financial assets and financial liabilities:

(i) Recognition and initial measurement

Financial assets and financial liabilities at fair value through profit or loss are initially recognized on

the trade date, which is the date on which the Fund becomes a party to the contractual provisions

of the instrument. Other financial assets and financial liabilities are recognized on the date on

which they are originated.

Financial assets and financial liabilities at fair value through profit or loss are initially recognized at

fair value, with transaction costs recognized in profit or loss.

(ii) Classification

Effective November 1, 2017, the Funds adopted IFRS 9 Financial Instruments. The standard

requires assets to be carried at amortized cost or fair value, with changes in fair value recognized

in profit and loss (FVTPL) or fair value through other comprehensive income (FVOCI) based on the

entity’s business model for managing financial assets and the contractual cash flow characteristics

of the financial assets.


(unaudited)



3. Significant accounting policies (continued):

(a) Financial assets and financial liabilities (continued):

(ii) Classification (continued)

Assessment and decision on the business model approach used is an accounting judgement.

Upon transition to IFRS 9, the Funds’ financial assets and financial liabilities that were classified as

fair value through profit and loss (FVTPL) under IAS 39 continued to be categorized as fair value

through profit and loss. There were no changes in the measurement attributes for any of the

financial assets and financial liabilities upon transition to IFRS 9.

Under IFRS 9, derivatives are classified as FVTPL like other financial assets and liabilities, so there

is no requirement to present separately the different component amounts on the Statement of

Comprehensive Income as they fall within the same classification; this is a change from the

requirement under IAS 39 where derivatives were classified as Held for Trading.

However, Canadian Security Administrators (“CSA”) regulatory requirements under NI 81-106

prescribe the individual line items that are required to be disclosed which includes separate

disclosure for derivatives.

The Funds classify financial assets and financial liabilities into the following categories.

Financial assets at fair value through profit or loss:

• All investments, including derivatives

Financial assets at amortized cost:

• Cash and cash equivalents and receivables

Financial liabilities at amortised cost:

• All liabilities other than redeemable shares

The Funds designate all financial assets and liabilities at fair value through profit or loss on initial

recognition because it manages securities on a fair value basis in accordance with its documented

investment strategy. Internal reporting and performance measurement of these securities and the

Fund as a whole is on a fair value basis. The Manager also receives management fees which are

based on the overall fair value of the Fund.

(iii) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an

orderly transaction between market participants at the measurement date in the principal


(unaudited)





(iii) Fair value measurement (continued)

or, in its absence, the most advantageous market to which the Fund has access at that date. The

fair value of a liability reflects its non–performance risk.

When available, the Funds measure fair value of an instrument using the quoted price in an active

market for that instrument. A market is regarded as ‘active’ if transactions for the asset or liability

take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

The Funds measure instruments quoted in an active market at last traded price.

For securities where market quotes are not available, the Corporation values the initial investment

at the amount paid. After initial investment, the Corporation uses estimation techniques to

determine fair value including observable market data, discounted cash flows and internal models

that compare the investments to its peer group.

Fair value of investments in restricted shares is determined using an economic model taking into

account various factors including risk free rate of interest, volatility, market value and length of the

restriction.

Fair value of investments in share purchase warrants is determined using a recognized economic

model taking into account various factors including risk free rate of interest, dividend rates,

volatility, market value and trading volume of the underlying stock.

Fair value of subscription receipts is determined using a recognized economic model taking into

account various factors including risk free interest rate, volatility, price of underlying security, expiry

date and purchase price.

Fair value of investments in bonds, asset–backed securities and secured loans represents a price

that may fall between the last bid and ask price provided by an independent security pricing

service, depending on which service provider is used.

There is no difference between pricing NAV and accounting NAV.

(iv) Amortized cost measurement

The amortized cost of a financial asset or financial liability is the amount at which the financial asset

or financial liability is measured at recognition, minus principal repayments (if applicable), plus or

minus the cumulative amortization using the effective interest method of any difference between

the initial amount recognized and the maturity amount (if applicable), minus any reduction for

impairment (if applicable).


(unaudited)





(v) Specific instruments

Cash and cash equivalents

Cash and cash equivalents comprise deposits with banks and highly liquid financial assets with

maturities of three months or less from the acquisition date that are subject to an insignificant risk

of changes in their fair value and are used by the Funds in the management of short–term

commitments, other than cash collateral provided in respect of derivatives and securities borrowing

transactions.

Redeemable shares

The Funds classify financial instruments issued as financial liabilities or equity instruments in

accordance with the substance of the contractual terms of the instruments. The Funds have

multiple series of redeemable shares that do not have identical features and therefore, do not

qualify as equity under IAS 32, Financial Instruments. The redeemable shares, which are

classified as financial liabilities and measured at redemption amount, provide investors with the

right to require redemption, subject to available liquidity, for cash at a share price based on the

Funds’ valuation policies at each redemption date. The shares represent the residual interest in

the Funds.

The value at which mutual fund shares are issued or redeemed is determined by dividing the net

assets at fair value based on last traded price of each class by the total number of mutual fund

shares outstanding by the class on the valuation date.

(b) Interest for distribution purposes:

The interest for distribution purposes shown on the statements of comprehensive income represents

the coupon interest received by the Funds accounted for on an accrual basis and is recognized

through profit or loss. The Funds do not amortize premiums paid or discounts received on the

purchase of fixed income securities.

(c) Dividend income and dividend expense:

Dividend income and dividend expenses are recognized in profit or loss on the date on which the right

to receive or make payment is established. This is usually the ex–dividend date.

(d) Dividends to holders of redeemable shares:

Dividends per share is calculated as the total amount of dividends attributable to a series divided by

the number of shares at the date of distribution.


(unaudited)




(e) Net gain (loss) from financial instruments at fair value through profit or loss:

Net unrealized/realized gain/loss from financial instruments at fair value through profit or loss is

calculated using the average cost method.

Average cost does not include amortization of premiums or discounts on fixed income securities.

(f) Income tax:

The Corporation qualifies as a "mutual fund corporation" under the Income Tax Act (Canada) and the

Alberta Corporate Tax Act.

Interest and foreign dividends received, less applicable expenses, are taxed at Federal and Provincial

corporate rates less applicable credits for any foreign taxes paid. Taxable dividends received from

taxable Canadian corporations are subject to taxes that are fully refundable upon payment of sufficient

taxable dividends to shareholders.

The Corporation is also subject to tax at full corporate rates on 50% of capital gains realized, less

allowable capital losses claimed. This tax is generally refundable to the extent that the Corporation

distributes its capital gains to shareholders by way of a capital gains dividend, or through the

redemption of its shares.

Temporary differences between the tax basis of assets and liabilities and their carrying amounts may

be either taxable or deductible. Taxable temporary differences give rise to deferred income tax

liabilities and deductible temporary differences give rise to deferred income tax assets. When the fair

value of investments is greater than the related tax basis, a deferred income tax liability arises and the

deferred tax liability is offset by refundable taxes generated by future payments of capital gains

dividends. When the fair value of investments is less than the related tax basis, a deferred income tax

asset arises and due to the uncertainty of such deferred income tax assets ultimately being realized,

the temporary differences are not recognized. Any unused capital and non–capital losses represent

deferred tax assets to the Corporation for which the temporary differences are not recognized as it is

uncertain if they will be realized in the future.

Income that would give rise to current income tax liabilities are distributed out to shareholders.

(g) Increase (decrease) in net assets attributable to holders of redeemable shares:

Change in net assets attributable to shareholders per share is calculated as increase (decrease) in net

assets attributable to shareholders, divided by the weighted average shares outstanding during the

period.


(unaudited)




(h) Translation of foreign currency:

Foreign currency amounts are expressed in Canadian dollars as follows:

(i) fair value of investments and accrued receivables and payables and other assets and liabilities at

the rate of exchange at the end of the period; and

(ii) purchases and sales of investments and dividend and interest income at the rate of exchange

prevailing on the respective dates of such transactions.

Foreign currency differences are recognized as a component of net gain/loss from financial

instruments at fair value through profit or loss.

(i) Derivative financial instruments:

The Funds may use derivative financial instruments to reduce their exposure to fluctuations in foreign

currency exchange rates. Derivative financial instruments are recorded at mark to market with

changes in fair value recorded in the statement of comprehensive income.

Options are contracts entitling the holder to purchase or sell a specified item at a specified price,

during a specified period or on a specified date. Options purchased are recorded as investments;

options written (sold) are recorded as liabilities. Any gain or loss resulting from revaluation is included

in change in unrealized gain (loss) on derivative instruments on the statements of comprehensive

income. Upon closing of an option, other than by exercise, which results in a cash settlement, the

difference between the premium (original option value) and the settlement proceeds is included in net

realized gain (loss) on derivative instruments on the statements of comprehensive income. When

securities are acquired or delivered upon exercise of an option, the acquisition cost or sale proceeds

are adjusted by the amount of the premium. When an option is closed, the difference between the

premium and the cost to close the position is included in net realized gain (loss) on derivatives on the

statements of comprehensive income. When an option expires, the premium for options written or

purchased is reflected in the statement of operations as net realized gain (loss) on derivative

instruments.

The risks include the possibility there may be an illiquid options market or the inability of the

counterparties to fulfill their obligations under the contract. Writing options involves, to varying

degrees, elements of market risk in excess of the amount recognized in the statement of financial

position.

(j) Short selling:

A Fund may make short sales whereby a security that it does not own is sold in anticipation of a

decline in the fair value of the security. Securities that are sold short are valued at the last close price

reported by the principal securities exchange on which the security is traded on the financial statement


(unaudited)




(j) Short selling (continued):

date. To enter into a short sale, the Fund must borrow the security for delivery to the buyer. Also,

while the transaction is open, the Fund will incur a liability for any paid dividends or interest that is due

to the lender of the security.

Selling securities short may present elements of market risk in excess of the amount recognized in the

statement of financial position.

4. Asset transfers:

On May 24, 2018, Norrep Short Duration 2017 Flow–Through Limited Partnership transferred certain

assets of the partnership to NCM Opportunities Corp. in exchange for 890,181 NCM Energy Plus Class

Series F shares with a value of $7,998,272. The assets transferred were as follows:

(in Canadian dollars) May 24, 2018 Cash and cash equivalents 1,427,672 Investments, at fair value 6,570,600 Value of assets received and mutual fund shares issued 7,998,272

5. Fair value measurement:

(a) Investments:

The fair values of financial assets and financial liabilities that are traded on active markets are based

on quoted market prices. For all other financial instruments, the Corporation determines fair values

using other valuation techniques.

For financial instruments that trade infrequently and have little price transparency, fair value is less

objective, and requires varying degrees of judgment depending on liquidity, uncertainty of market

factors, pricing assumptions and other risks affecting the specific instrument.

A three–tier hierarchy is used as a framework for disclosing fair value based on inputs used to value

the Fund’s investments. The hierarchy of inputs is summarized below:

• Inputs that are quoted prices (unadjusted) in active markets for identical instruments (Level 1);

• Inputs other than quoted prices included in Level 1 that are observable for instruments, either

directly (i.e., as prices) or indirectly (i.e., derived from prices) (Level 2). This category includes

instruments valued using: quoted market prices in active markets for similar instruments; quoted

prices for identical or similar instruments in markets that are considered less than active; or other

valuation techniques in which all significant inputs are directly or indirectly observable from market

data; and


(unaudited)



5. Fair value measurement (continued):

(a) Investments (continued):

• Inputs for the instruments that are not based on observable market data (unobservable inputs)

(Level 3). This category includes all instruments for which the valuation technique includes inputs

not based on observable data and the unobservable inputs have a significant effect on the

instrument’s valuation. This category includes instruments that are valued based on the quoted

prices for similar instruments but for which significant unobservable adjustments or assumptions

are required to reflect differences between the instruments.

Changes in valuation methods may result in transfers into or out of an investment’s assigned level.

The Funds recognize transfers between levels of the fair value hierarchy as at the end of the reporting

period during which the change occurred.

(b) Fair value hierarchy – Financial instruments measured at fair value:

The tables below analyze investments measured at fair value at March 31, 2019 and September 30,

2018 by the level in the fair value hierarchy into which the fair value measurement is categorized. The

amounts are based on the values recognized in the statement of financial position.

(in Canadian dollars) Level 1 Level 2 Level 3 Total NCM Small Companies Class - March 31, 2019 Public securities Equities - long 77,994,924 — — 77,994,924

Total Investments 77,994,924 — — 77,994,924

(in Canadian dollars) Level 1 Level 2 Level 3 Total

NCM Small Companies Class - September 30, 2018 Public securities Equities - long 97,035,428 — — 97,035,428

Total Investments 97,035,428 — — 97,035,428


NCM Income Growth Class - March 31, 2019 Public securities Equities - long 48,043,316 — — 48,043,316 Bonds — 6,048,295 — 6,048,295

Unrealized loss on

derivative instruments — (6,496) — (6,496) Underlying Funds 1,962,375 — — 1,962,375

Total Investments 50,005,691 6,041,799 — 56,047,490


(unaudited)




(b) Fair value hierarchy – Financial instruments measured at fair value (continued):


NCM Income Growth Class - September 30, 2018 Public securities Equities - long 69,353,134 — — 69,353,134 Bonds — 5,996,187 — 5,996,187

Unrealized gain on

derivative instruments — 11,000 — 11,000 Underlying Funds 2,484,180 — — 2,484,180

Total Investments 71,837,314 6,007,187 — 77,844,501


NCM US Dividend Plus Class - March 31, 2019 Public securities Equities - long 13,849,426 — — 13,849,426

Unrealized loss on

derivative instruments — (43,105) — (43,105)

Total Investments 13,849,426 (43,105) — 13,806,321


NCM US Dividend Plus Class - September 30, 2018 Public securities Equities - long 20,152,154 — — 20,152,154

Unrealized gain on

derivative instruments — 137,740 — 137,740

Unrealized loss on

derivative instruments (77,478) (4,783) — (82,261)

Total Investments 20,074,676 132,957 — 20,207,633


NCM Energy Plus Class - March 31, 2019 Public securities Equities - long 14,827,169 — — 14,827,169 Warrants - long — — — — Total Investments 14,827,169 — — 14,827,169

(in Canadian dollars) Level 1 Level 2 Level 3 Total NCM Energy Plus Class - September 30, 2018 Public securities Equities - long 24,931,523 193,890 — 25,125,413 Warrants - long — 11,195 — 11,195



(unaudited)




(b) Fair value hierarchy – Financial instruments measured at fair value (continued):


NCM Entrepreneurs Class - March 31, 2019 Public securities Equities - long 65,365,785 43,300 — 65,409,085



NCM Entrepreneurs Class - September 30, 2018 Public securities Equities - long 59,786,483 10,697,451 — 70,483,934 Total Investments 59,786,483 10,697,451 — 70,483,934

(in Canadian dollars) Level 1 Level 2 Level 3 Total NCM Global Income Growth Class - March 31, 2019 Public securities Equities - long 142,519,155 — — 142,519,155 Bonds - long — 21,310,524 — 21,310,524

Unrealized gain on


Unrealized loss on

derivative instruments — (298,556) — (298,556) Total Investments 142,519,155 21,155,186 — 163,674,341

(in Canadian dollars) Level 1 Level 2 Level 3 Total NCM Global Income Growth Class - September 30, 2018 Public securities Equities - long 151,226,334 — — 151,226,334 Bonds - long — 22,012,176 — 22,012,176

Unrealized gain on


Unrealized loss on

derivative instruments — (11,163) — (11,163) Total Investments 151,226,334 22,721,703 — 173,948,037

ADF Group Inc., Geodrill Ltd., Redline Communications Group Inc. and Currency Exchange

International Corp., held in the NCM Entrepreneurs Class, were transferred from a level 2 security at

September 30, 2018 to a level 1 security at March 31, 2019 due to an available traded close price at

March 31, 2019.

(c) Financial instruments not measured at fair value:

The carrying values of cash and cash equivalents, dividends and interest receivable, accrued

expenses, and other receivables and payables approximate their fair values due to their short term

nature.


(unaudited)



6. Financial instruments and associated risks:

Each Fund’s activities expose it to a variety of risks associated with financial instruments as follows: credit

risk, liquidity risk and market risk (including currency risk, interest rate risk and price risk). Each Fund’s

overall risk management program seeks to maximize the returns for the level of risk to which the Fund is

exposed and seeks to minimize potential adverse effects on the Funds’ financial performance. All

investments result in a risk of loss of capital.

Credit risk:

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or

commitment that it has entered into with the Funds. The fair value of debt securities includes

consideration of the credit worthiness of the debt issuer. The carrying amount of bonds and secured loans

as presented on the schedules of investment portfolios represent the maximum credit risk exposure. This

also applies to cash and cash equivalents and receivables as they have a short–term settlement.

A portion of each Fund’s portfolio may consist of instruments that have a credit quality rated below

investment grade by internationally recognized credit rating organizations or may be unrated. These

securities involve significant risk exposure as there is uncertainty regarding the issuer's capacity to pay

interest and repay principal in accordance with the terms of the obligations. Low rated and unrated debt

instruments generally offer a higher current yield than that available from higher grade issuers, but

typically involve greater risk.

As at March 31, 2019 and September 30, 2018, the Funds were invested in debt securities with the

following credit ratings:

NCM Income Growth Class

Debt Security by Credit Rating % of Assets Under Management in each category

March 31, 2019 September 30, 2018

BB 5.7% 5.0% B 4.0% 2.5%

NCM Global Income Growth Class

Debt Security by Credit Rating % of Assets Under Management in each category March 31, 2019 September 30, 2018

BB 8.9% 7.7% B 2.4% 2.9% CCC 0.8% 0.8% Unrated 0.8% 0.7%

Credit risk arising on transactions for shares purchased and portfolio assets sold relates to transactions

awaiting settlement, also known as settlement risk.

‘Settlement risk’ is the risk of loss due to the failure of an entity to honour its obligations to deliver cash,

securities or other assets as contractually agreed.


(unaudited)



6. Financial instruments and associated risks (continued):

Credit risk (continued):

Credit risk relating to unsettled transactions is considered small due to the short settlement period involved

and the high credit quality of the brokers used.

For the majority of the transactions, the Funds mitigate this risk by conducting settlements through a

broker to ensure that a trade is settled only when both parties have fulfilled their contractual settlement

obligations. Also, legal entitlement will not pass until all monies have been received for the units

purchased or the portfolio assets sold. If either party does not meet its obligation then the transaction will

fail.

The majority of the assets of the Funds are held by CIBC Mellon, the custodian, with some assets held at

Scotia Capital Inc., the prime broker. Bankruptcy or insolvency of the custodian may cause the Funds’

rights with respect to securities held by the custodian to be delayed or limited. The Funds monitor their

risk by monitoring the credit quality and credit rating and financial position of the custodian the Funds use.

If the credit quality or the financial position deteriorates significantly then the Portfolio Manager will move

the cash holdings to another financial institution.

The Portfolio Manager analyzes credit concentration based on the counterparty, industry and geographical

location of the financial assets that the Funds hold.

Other than outlined above there were no significant concentrations of credit risk to counterparties at March

31, 2019 and September 30, 2018. No individual investments exceeded eleven percent of the net assets

attributable to holders of redeemable shares at March 31, 2019 (September 30, 2018 – 20%) in each

Fund.

Liquidity risk:

Liquidity risk is the risk that a Fund will encounter difficulty in meeting obligations associated with financial

liabilities that are settled by delivering cash or other financial assets.

The Funds are exposed to daily cash redemptions of redeemable shares. Investments in small, mid–

capitalization and micro–capitalization companies may involve greater risks than in larger, more

established companies since such companies may have more limited markets and financial resources and

their securities may be more sensitive to market changes. As well, the liquidity of the securities may be

limited. Consequently, in order to fund redemptions, the Funds may have to liquidate shareholdings in the

more liquid large and medium–sized companies.

To the extent that the liquidity is limited, the Funds’ ability to realize profits and/or minimize losses may be

limited, which could adversely affect the net asset value of the Fund. Also, the Funds’ investments may

include unlisted equity instruments, which are not traded on an organized public market and which may be

illiquid.


(unaudited)




Liquidity risk (continued):

As a result, a Fund may not be able to quickly liquidate some of its investments in these instruments at an

amount close to their fair value in order to meet its liquidity requirements. The Funds believe they

maintain sufficient cash and cash equivalent positions to maintain liquidity.

The Funds’ liquidity risk is managed on a daily basis by the Portfolio Manager. Minimum cash and cash

equivalent balances will be required to be maintained in the Fund at the discretion of the Portfolio Manager

to allow for monies to cover redemptions. The Funds’ redemption policy allows for redemptions at any

time during any given month.

The Funds are subject to regulatory requirements whereby the Fund shall not purchase an illiquid asset if,

immediately after the purchase, more than 10 percent of the net assets of the fund, taken at market value

at the time of purchase, would consist of illiquid assets. Residual contractual maturities of financial

liabilities are all due on demand with the exception of the performance bonus. The performance bonus

may be due anywhere from two months to an unknown date. The terms of the performance bonus are

explained in note 8(a).

Market risk:

Market risk embodies the potential for both losses and gains and includes currency risk, interest rate risk

and price risk.

The Funds’ strategies on the management of investment risk are driven by the Funds’ investment

objectives. NCM Small Companies Class is designed to achieve long–term capital appreciation by

investing in small and mid–capitalization equities. NCM Income Growth Class is designed to achieve long–

term capital appreciation and distributions by investing in small and mid–capitalization high yield securities.

NCM US Dividend Plus Class is designed to provide long–term capital growth and current income by

investing primarily in U.S. equity securities.

NCM Energy Plus Class is designed to achieve long–term capital appreciation by investing in both

Canadian and foreign resource companies. NCM Entrepreneurs Class is designed to achieve long–term

capital appreciation by investing in smaller capitalization equities both in Canada and globally. NCM

Global Income Growth Class is designed to achieve long–term capital appreciation and distributions by

investing in small, mid and large capitalization high yield securities.

NCM Small Companies Class and NCM Income Growth Class may consist of all types of equity and debt

obligations of issuers in Canada and the United States that may or may not be listed for trading upon the

facilities of stock exchanges or other organized and regulated trading facilities in Canada and the United

States.

NCM US Dividend Plus Class may consist of all types of equity and debt obligations of issuers, primarily in

the United States.


(unaudited)




Market risk (continued):

NCM Global Income Growth Class, NCM Energy Plus Class and NCM Entrepreneurs Class portfolios

may consist of all types of equity and debt obligations of issuers across the globe that may or may not be

listed for trading upon the facilities of stock exchanges or other organized and regulated trading facilities.

Assets of the Funds may also be invested in debt obligations or held in cash and cash equivalents to the

extent that economic, market or other conditions make it appropriate.

Covered call options may be used to generate income from a security in a portfolio. The Fund benefits if

the price of the security stays below the strike price plus the premium of the written call option. If the price

of the security rises above the strike price plus the premium of the written call option, the strategy will have

underperformed the price return of the security; however, the overall return on the position will still be

positive.

Cash covered put options may be written in an attempt to purchase a security below the current market

price and/or to generate income. If the price of the security falls to the strike price of the put option, the

Fund may be assigned to purchase the security at the strike price. If the price of the security is below the

strike price less the premium of the put option, the Fund will have a loss on the position; however, will

have upside profit potential if the purchased security is held. Cash covered means that there are sufficient

funds available to purchase the security at the strike price.

No material change in the investment objectives, policies or restrictions of the Funds may be made without

the approval of a two–thirds majority of the votes cast by shareholders at a meeting of the Fund duly called

for that purpose.

The Funds’ market risk is managed on a daily basis by the Portfolio Manager in accordance with the

policies and procedures in place.

Details of the nature of the Fund’s investment portfolio at March 31, 2019 are disclosed in the schedule of

investment portfolio.

(a) Currency risk:

The Funds may invest in financial instruments and enter into transactions denominated in currencies

other than the Canadian dollar. Consequently, the Funds are exposed to risks that the exchange rate

of the Canadian dollar to other foreign currencies may fluctuate.

The Funds may use derivatives to hedge the Funds’ foreign currency exposure. Such permitted

derivatives may include exchange–traded options, futures contracts and options on futures, over–the–

counter options, and forward contracts.

At March 31, 2019 and September 30, 2018, the Funds had the following foreign currency exposure

as a percentage of the net asset value, including the impact of outstanding derivative instruments:


(unaudited)





(a) Currency risk (continued):

NCM Income Growth Class 2019 2018

U.S. Dollar 0.1% -%

NCM US Dividend Plus Class 2019 2018

U.S. Dollar (0.7)% 7.9%

NCM Energy Plus Class 2019 2018

U.S. Dollar -% 0.8%

NCM Global Income Growth Class 2019 2018

Danish Kroner 6.9% 7.7% Euro 5.4% 5.6%

Indonesian Rupiah 3.7% 2.7%

British Pound 2.0% 1.8% Swiss Franc 1.3% 1.0%

Japanese Yen 1.2% 1.2% Norwegian Krone 0.7% 0.7%

U.S. Dollar (0.4)% (0.1)%

Sensitivity Analysis:

At March 31, 2019 and September 30, 2018, had the Canadian dollar strengthened or weakened by

1% in relation to all currencies, with all other variables held constant, including the impact of

outstanding derivative instruments, net assets attributable to the holders of redeemable shares and

the change in net assets attributable to holders of redeemable shares would have increased or

decreased by the amounts shown below. In practice, the actual trading results may differ from this

sensitivity analysis and the difference could be material.


(unaudited)





(a) Currency risk (continued):

Sensitivity Analysis (continued):

NCM Income Growth Class 2019 2018

(in Canadian dollars) U.S. Dollar 347 (56)

Total 347 (56)


(in Canadian dollars) U.S. Dollar (1,034) 24,789

Total (1,034) 24,789

NCM Energy Plus Class 2019 2018 (in Canadian dollars) U.S. Dollar 30 1,939

Total 30 1,939

NCM Global Income Growth Class 2019 2018 (in Canadian dollars) Danish Kroner 114,369 140,679 Euro 89,509 101,382 Indonesian Rupiah 60,626 48,783 British Pound 33,926 33,058 Swiss Franc 22,050 19,069 Japanese Yen 19,386 20,961 Norwegian Krone 12,276 13,569 Swedish Kroner 114 115 U.S. Dollar (6,395) (1,436) Total 345,861 376,180


(unaudited)





(b) Interest rate risk:

Interest rate risk arises on interest bearing financial instruments. The majority of the Funds’ assets are

non–interest–bearing, with the exception of NCM Income Growth Class and NCM Global Income

Growth Class. As a result, the Funds are subject to limited exposure to interest rate risks due to

fluctuations in the prevailing levels of market interest rates.

NCM Income Growth Class and NCM Global Income Growth Class own interest bearing assets in the

form of senior secured loans and/or bonds. Senior secured loans are priced with a floating rate of

interest which typically resets quarterly and results in minimal exposure to interest rate risk.

Government bonds and investment grade bonds are fixed rate securities and have exposure to

interest rate risk. This exposure can be estimated by the bond’s duration.

High yield corporate bonds are also fixed rate securities but have less exposure to interest rate risk.

The value of these securities is impacted more by credit fundamentals such as cash flow, profitability

and debt servicing ability than by prevailing interest rates.

The table below summarizes the Funds’ exposure to interest rate risks at March 31, 2019 and

September 30, 2018. It includes the Funds’ assets at fair values, categorized by the maturity dates.

NCM Income Growth Class - March 31, 2019 Less than

1 year 1 to 3 years

3 to 5 years

>5 years

All amounts stated in Canadian dollars Corporate bonds — — 1,366,009 4,682,286

NCM Income Growth Class - September 30, 2018 Less than

1 year 1 to 3 years

3 to 5 years

>5 years

All amounts stated in Canadian dollars Corporate bonds — — — 5,996,187

NCM Global Income Growth Class - March 31, 2019 Less than

1 year 1 to 3 years

3 to 5 years

>5 years

All amounts stated in Canadian dollars Corporate bonds — 2,417,325 8,039,996 10,853,203

NCM Global Income Growth Class - September 30, 2018 Less than

1 year 1 to 3 years

3 to 5 years

>5 years

All amounts stated in Canadian dollars Corporate bonds/Secured loans — — 7,029,667 14,982,509


(unaudited)





(c) Other price risk:

Other price risk is the risk that the value of the instrument will fluctuate as a result of changes in

market prices (other than those arising from interest rate risk or currency risk), whether caused by

factors specific to an individual investment or its issuer, or factors affecting all instruments traded in

the market. All securities present a risk of loss of capital. However, the Funds which hold short

positions are subject to certain inherent risks. The ultimate cost to the Funds to acquire these

securities may exceed the liability reflected in these financial statements.

Price risk is managed by the Fund’s Portfolio Manager by constructing a diverse portfolio of securities.

The price of a security is affected by individual company developments and by general economic and

financial conditions in those industries and countries where the issuer of the security is located, does

business or where the security, if applicable, is listed for trading. Certain securities are not listed on

any prescribed stock exchange and thus a liquid market for resale may not exist.

The Portfolio Manager will monitor these factors daily and make decisions regarding the portfolio

based on their knowledge of the market conditions and diversify the portfolio of investments

accordingly. The maximum price risk resulting from financial instruments is equivalent to their fair

value.

Sensitivity analysis:

A 1% increase or decrease on the following indexes at March 31, 2019 and September 30, 2018

would have impacted the net assets attributable to holders of redeemable shares and the changes in

net assets attributable to holders of the redeemable shares by:

Total Return Index Change in (In Canadian dollars) Net Assets

2019 2018

NCM Small Companies Class BMO Small Cap Equity Only Weighted 779,949

970,354

NCM Income Growth Class 75% S&P/TSX; 20% FTSE TMX Canada

Universe Bond Index 560,540

778,335

NCM US Dividend Plus Class S&P 1500 138,494

201,522

NCM Energy Plus Class S&P/TSX - Capped Energy 148,272

251,366

NCM Entrepreneurs Class 100% BMO Small Cap Equity Only Weighted 654,091

704,839

NCM Global Income Growth Class 75% MSCI World (net); 25% FTSE TMX

Canada Universe Bond Index 1,638,297

1,732,385


(unaudited)





(c) Other price risk (continued):

The Funds’ financial assets exposed to other price risk were concentrated in the following industries at

March 31, 2019 and September 30, 2018:

NCM Small Companies Class 2019 2018

Energy 28.7% 29.9% Materials 26.0% 22.1% Industrials 20.1% 21.7% Consumer Discretionary 4.6% 9.2% Health Care 1.3% -% Information Technology 8.1% 6.7% Utilities 3.6% 3.0% Real Estate 7.6% 7.4%

Total 100.0% 100.0%

NCM Income Growth Class 2019 2018 Energy 15.4% 19.5% Materials 15.8% 12.4% Industrials 28.8% 26.6% Consumer Discretionary 5.2% 12.4% Financials 10.6% 8.1% Real Estate 9.9% 10.1% Mutual Funds 3.5% 3.2% Bonds 10.8% 7.7% Total 100.0% 100.0%


Energy 4.8% 9.8% Materials 3.7% 5.5% Industrials 9.1% 6.2% Consumer Discretionary 12.2% 15.6% Consumer Staples 6.8% 6.2% Health Care 18.3% 11.9% Financials 14.7% 11.8% Information Technology 20.1% 20.1% Communication Services 10.3% 9.3% Real Estate -% 3.6%

Total 100.0% 100.0%

NCM Energy Plus Class 2019 2018 Energy 100.0% 100.0%

Total 100.0% 100.0%


(unaudited)





(c) Other price risk (continued):

NCM Entrepreneurs Class 2019 2018

Energy 5.8% 16.6% Materials 15.6% 15.7% Industrials 33.9% 23.9% Consumer Discretionary 11.7% 17.5% Health Care 11.2% 8.0% Financials 6.9% 7.3% Information Technology 10.1% 5.8% Utilities 4.8% 5.2%

Total 100.0% 100.0%

NCM Global Income Growth Class 2019 2018

Energy 2.9% 3.1% Materials 4.2% 5.2% Industrials 15.9% 16.1% Consumer Discretionary 6.0% 6.2% Consumer Staples 12.2% 11.0% Health Care 11.5% 10.4% Financials 26.5% 27.7% Information Technology 4.9% 4.8% Communication Services 2.9% 2.8% Bonds and Secured Loans 13.0% 12.7%

Total 100.0% 100.0%

7. Net assets attributable to holders of redeemable shares:

The authorized capital of each Fund consists of an unlimited number of special shares, each issuable in

series. Currently there are primarily three series outstanding, Series A, Series F and Series I. However,

the NCM Income Growth Class has six series outstanding, Series A, Series F, Series I, Series B, Series

T6 and Series F6, NCM Global Income Growth has five series outstanding, Series A, Series F, Series I,

Series T6, and Series F6. NCM US Dividend Plus Class has four series outstanding, Series A, Series F,

Series I, and Series R. Each series ranks equally with respect to dividends and return of capital in the

event of liquidation, dissolution or winding up based on their respective series’ net asset values. Each

series pays its own fees and expenses. Series A and Series B are sold through one of two sales charge

options. Under the front end sales charge option, a commission ranging from 0 to 5% is paid by the

investor to the dealer with a 2% redemption fee being charged if the shares are redeemed in the first 90

days. Under the low load deferred sales charge option, a 2.25% commission is paid by NCM to the

dealer.


(unaudited)



7. Net assets attributable to holders of redeemable shares (continued):

Redemption fees are 3.0% in the first year, 2.5% in the second year and 2.0% in the third year; however,

investors can redeem up to 10% of their shares without paying redemption fees. Series T6 is only sold

through the front end sales charge option. The Series F and Series F6 are sold without commission

provided the purchaser is enrolled in a fee–for–service or wrap program with the dealer. Series I are sold

without commission. A 2% redemption fee is charged if the Series F, Series I or Series F6 are redeemed

in the first 30 days.

Series I shares are available to certain investors at the Portfolio Manager’s discretion.

On October 1, 2018, NCM US Dividend Plus Class issued Series R shares. There are no sales charges or

commissions payable in respect of purchases of Series R shares. Series R is only available for purchase

by the NCM Funds and other funds and accounts managed or advised by the Manager and/or its affiliates.

In addition, the Corporation is authorized to issue an unlimited number of common shares. The Funds’

special shares have priority over the common shares with respect to the payment of dividends and the

distribution of assets or return of capital in the event of liquidation, dissolution on winding up of the

Corporation. 20 common shares were issued on incorporation for $20.

The rights attached to the redeemable shares are as follows:

• the shares may be redeemed daily at the net asset value per share of the respective series;

• redeemable shares carry a right to receive notice of, attend and vote at meetings; and

• the holders of redeemable shares are entitled to receive all dividends declared by the Fund. Each

series will rank equally with respect to the distributions based on their respective series net asset

values. Dividends paid in cash will be paid in the currency in which the investor bought the units.

The analysis of movements in the number of redeemable shares and net assets attributable to holders of

redeemable shares during the period was as follows:


(unaudited)




NCM Small Companies Class - Series A 2019 2018 Balance, opening 1,569,559 1,879,687 Issued on dividends reinvested 9,791 14,826 Issued for cash 2,877 2,731 Redeemed for cash (124,855) (200,644)

Balance, March 31 1,457,372 1,696,600

NCM Small Companies Class - Series F 2019 2018 Balance, opening 491,927 553,436 Issued on dividends reinvested 2,686 4,227 Issued for cash 12,486 77,711 Redeemed for cash (62,911) (138,358)

Balance, March 31 444,188 497,016

NCM Small Companies Class - Series I 2019 2018 Balance, opening 276,315 302,337 Issued on dividends reinvested 1,544 2,186 Issued for cash 1,852 – Redeemed for cash (3,764) (11,985)

Balance, March 31 275,947 292,538

NCM Income Growth Class - Series A 2019 2018 Balance, opening 1,470,571 1,829,075 Issued on dividends reinvested 27,411 35,822 Issued for cash 7,209 23,477 Redeemed for cash (229,531) (266,553)

Balance, March 31 1,275,660 1,621,821

NCM Income Growth Class - Series F 2019 2018

Balance, opening 2,140,831 2,149,571 Issued on dividends reinvested 36,774 42,597 Issued for cash 110,581 383,386 Redeemed for cash (540,316) (301,350)

Balance, March 31 1,747,870 2,274,204

NCM Income Growth Class - Series I 2019 2018

Balance, opening 188,758 235,815 Issued on dividends reinvested 1,241 5,069 Issued for cash – 7,572 Redeemed for cash (130,558) (27,626)

Balance, March 31 59,441 220,830


(unaudited)




NCM Income Growth Class - Series B 2019 2018

Balance, opening 1,997,720 2,919,856 Issued on dividends reinvested 41,526 56,882 Issued for cash 37,257 117,207 Redeemed for cash (341,107) (760,825) Balance, March 31 1,735,396 2,333,120

NCM Income Growth Class - Series T6 2019 2018

Balance, opening 6,720 – Issued on dividends reinvested – – Issued for cash 1,545 – Redeemed for cash – – Balance, March 31 8,265 –

NCM Income Growth Class - Series F6 2019 2018

Balance, opening 3,803 – Issued on dividends reinvested – – Issued for cash – – Redeemed for cash – – Balance, March 31 3,803 –

NCM US Dividend Plus Class - Series A 2019 2018

Balance, opening 934,171 1,506,317 Issued on dividends reinvested 6,941 14,201 Issued for cash 16,208 88,938 Redeemed for cash (506,395) (348,774)

Balance, March 31 450,925 1,260,682

NCM US Dividend Plus Class - Series F 2019 2018 Balance, opening 703,308 1,046,908 Issued on dividends reinvested 4,537 8,232 Issued for cash 30,286 77,293 Redeemed for cash (441,154) (376,346)

Balance, March 31 296,977 756,087

NCM US Dividend Plus Class - Series I 2019 2018 Balance, opening 25,572 70,404 Issued on dividends reinvested 97 552 Issued for cash 34,394 – Redeemed for cash (25,769) (26,251)

Balance, March 31 34,294 44,705


(unaudited)




NCM Energy Plus Class - Series A 2019 2018


Balance, March 31 1,469,160 1,665,200

NCM Energy Plus Class - Series F 2019 2018

Balance, opening 723,689 396,479 Issued on dividends reinvested 16,205 3,305 Issued for cash 3,449 26,314 Redeemed for cash (178,432) (158,388)

Balance, March 31 564,911 267,710

NCM Energy Plus Class - Series I 2019 2018

Balance, opening 742,710 873,175 Issued on dividends reinvested 18,598 8,896 Issued for cash – 6,349 Redeemed for cash (30,834) (31,552) Balance, March 31 730,474 856,868

NCM Entrepreneurs Class - Series A 2019 2018


Balance, March 31 1,168,218 1,463,112

NCM Entrepreneurs Class - Series F 2019 2018

Balance, opening 1,543,043 813,434 Issued on dividends reinvested 3,428 4,091 Issued for cash 311,614 715,612 Redeemed for cash (340,124) (73,956)

Balance, March 31 1,517,961 1,459,181

NCM Entrepreneurs Class - Series I 2019 2018

Balance, opening 146,918 117,280 Issued on dividends reinvested 422 581 Issued for cash 34,404 10,425 Redeemed for cash (17,417) (2,558)

Balance, March 31 164,327 125,728

NCM Global Income Growth Class - Series A 2019 2018

Balance, opening 7,481,902 6,009,252 Issued on dividends reinvested 118,374 115,858 Issued for cash 268,790 2,038,241 Redeemed for cash (760,950) (523,815)

Balance, March 31 7,108,116 7,639,536


(unaudited)




NCM Global Income Growth Class - Series F 2019 2018

Balance, opening 4,306,448 2,805,830 Issued on dividends reinvested 53,942 52,788 Issued for cash 410,265 1,448,123 Redeemed for cash (688,310) (239,470)

Balance, March 31 4,082,345 4,067,271

NCM Global Income Growth Class - Series I 2019 2018


Balance, March 31 1,028,056 1,214,436

NCM Global Income Growth Class - Series T6 2019 2018

Balance, opening 27,887 – Issued on dividends reinvested – 35 Issued for cash 1,682 17,049 Redeemed for cash (3,652) –

Balance, March 31 25,917 17,084

NCM Global Income Growth Class - Series F6 2019 2018

Balance, opening 38,451 – Issued for cash – 32,782 Redeemed for cash (23,242) – Balance, March 31 15,209 32,782

The calculation of the increase (decrease) in net assets attributable to holders of redeemable shares per share

is presented below. Due to rounding, numbers presented may not calculate precisely and not reflect the absolute figures.

NCM Small Companies Class - March 31, 2019 Series A Series F Series I

Increase (decrease) in net assets attributable to holders of redeemable shares $(3,613,053) $ (1,210,221) $ (576,310) Average shares outstanding during the period 1,516,605 471,951 276,272

Increase (decrease) in net assets attributable to holders of redeemable shares per share $ (2.38) $ (2.56) $ (2.10)


(unaudited)




NCM Small Companies Class - March 31, 2018 Series A Series F Series I Increase (decrease) in net assets attributable to holders of redeemable shares $ (38,024) $184,053 $126,416 Average shares outstanding during the period 1,776,088 539,184 298,315

Increase (decrease) in net assets attributable to holders of redeemable shares per share $ (0.02) $0.34 $0.42

NCM Income Growth Class - March 31, 2019 Series A Series F Series I

Increase (decrease) in net assets attributable to holders of redeemable shares $ (886,885) $ (1,399,132) $ (174,218) Average shares outstanding during the period 1,337,507 1,999,090 94,237


NCM Income Growth Class - March 31, 2019 Series B Series T6 Series F6 Increase (decrease) in net assets attributable to holders of redeemable shares $ (1,279,049) $ (4,503) $ (2,154) Average shares outstanding during the period 1,859,720 8,231 3,803


NCM Income Growth Class - March 31, 2018 Series A Series F Series I

Increase (decrease) in net assets attributable to holders of redeemable shares $61,038 $105,272 $38,734 Average shares outstanding during the period 1,713,279 2,242,624 230,500

Increase (decrease) in net assets attributable to holders of redeemable shares per share $0.04 $0.05 $0.17

NCM Income Growth Class - March 31, 2018 Series B Series T6 Series F6 Increase (decrease) in net assets attributable to holders of redeemable shares $137,043 - - Average shares outstanding during the period 2,578,755 - -

Increase (decrease) in net assets attributable to holders of redeemable shares per share $0.05 - -


(unaudited)




NCM US Dividend Plus Class - March 31, 2019 Series A Series F Series I Increase (decrease) in net assets attributable to holders of redeemable shares $ (822,351) $ (815,560) $5,651 Average shares outstanding during the period 686,962 484,631 43,680

Increase (decrease) in net assets attributable to holders of redeemable shares per share $ (1.20) $ (1.68) $0.13

NCM US Dividend Plus Class - March 31, 2018 Series A Series F Series I

Increase (decrease) in net assets attributable to holders of redeemable shares $199,993 $243,061 $34,970 Average shares outstanding during the period 1,387,448 943,771 56,028


NCM Energy Plus Class - March 31, 2019 Series A Series F Series I Increase (decrease) in net assets attributable to holders of redeemable shares $ (3,900,524) $ (1,860,103) $ (2,126,242) Average shares outstanding during the period 1,538,802 617,585 732,181


NCM Energy Plus Class - March 31, 2018 Series A Series F Series I

Increase (decrease) in net assets attributable to holders of redeemable shares $ (2,120,513) $ (425,555) $ (1,107,514) Average shares outstanding during the period 1,495,513 284,136 718,582


NCM Entrepreneurs Class - March 31, 2019 Series A Series F Series I

Increase (decrease) in net assets attributable to holders of redeemable shares $ (1,859,690) $ (2,125,311) $ (166,182) Average shares outstanding during the period 1,210,204 1,498,755 162,237



(unaudited)




NCM Entrepreneurs Class - March 31, 2018 Series A Series F Series I Increase (decrease) in net assets attributable to holders of redeemable shares $896,333 $624,305 $157,811 Average shares outstanding during the period 1,314,807 1,133,492 121,688


NCM Global Income Growth Class - March 31, 2019 Series A Series F Series I

Increase (decrease) in net assets attributable to holders of redeemable shares $ (2,767,390) $ (1,367,902) $ (266,252) Average shares outstanding during the period 7,263,526 4,129,499 1,002,777 Increase (decrease) in net assets attributable to holders of redeemable shares per share $ (0.38) $ (0.32) $ (0.27)

NCM Global Income Growth Class - March 31, 2019 Series T6 Series F6 Increase (decrease) in net assets attributable to holders of redeemable shares $ (12,890) $ (26,392) Average shares outstanding during the period 27,798 30,522

Increase (decrease) in net assets attributable to holders of redeemable shares per share $ (0.46) $ (0.87)

NCM Global Income Growth Class - March 31, 2018 Series A Series F Series I

Increase (decrease) in net assets attributable to holders of redeemable shares $ (730,982) $ (329,359) $176,349 Average shares outstanding during the period 6,671,847 3,408,189 1,209,526

Increase (decrease) in net assets attributable to holders of redeemable shares per share $ (0.11) $ (0.10) $0.15

NCM Global Income Growth Class - March 31, 2018 Series T6 Series F6

Increase (decrease) in net assets attributable to holders of redeemable shares $ (12,204) $ (19,890) Average shares outstanding during the period 12,388 21,026

Increase (decrease) in net assets attributable to holders of redeemable shares per share $ (0.99) $ (0.95)


(unaudited)



8. Management fees, expenses and key contracts:

(a) Manager and management fees:

The Series A, Series B and Series T6 shares paid an annual management fee to NCM of 2% of the

net asset value of each series with the exception of the Series A of the NCM Income Growth Class,

which paid an annual management fee to NCM of 1.65% of the net asset value of the series. Series F

and Series F6 paid an annual management fee to NCM of 1% of the net asset value of the series.

The management fee is calculated and paid monthly. No management fee is charged to the Series I

shares; instead, the investors will pay a management fee directly to NCM, in an amount determined

through negotiation. There are no management fees payable in respect of Series R shares. The NCM

Funds and other funds and accounts managed or advised by the Manager and/or its affiliates that

invest in Series R shares are charged a management fee for the provision of the services to them.

Accrued expenses include management fees payable as follows:

(in Canadian dollars) March 31, 2019 September 30, 2018 NCM Small Companies Class 117,535 134,899 NCM Income Growth Class 78,458 97,518 NCM US Dividend Plus Class 18,240 40,767 NCM Energy Plus Class 15,849 25,364 NCM Entrepreneurs Class 91,414 101,350 NCM Global Income Growth Class 201,928 225,890

The Manager is also entitled to a performance bonus in respect of NCM Small Companies Class,

NCM Energy Plus Class, and NCM Entrepreneurs Class. The performance bonus is 20% of the

excess return compared to the relevant index multiplied by the weighted average net asset value for

the Fund. Each Fund has a unique index as follows:

NCM Small Companies Class BMO Small Capitalization Equity Only Weighted Total Return Index NCM Energy Plus Class S&P/TSX Capped Energy Total Return Index

NCM Entrepreneurs Class 100% BMO Small Capitalization Equity Only Weighted Total Return Index

Quarterly calculations, positive or negative, are cumulative until paid. The performance bonus is only

payable at the end of a calendar quarter if the return of the series since the last performance bonus

was paid is positive and if the return of the series exceeds the total change in the index for each Fund.


(unaudited)



8. Management fees, expenses and key contracts (continued):

(b) Expenses:

All fees and expenses applicable to the administration and operation of each series, including record

keeping and communication costs, custodian fees, legal and filing fees, audit, applicable taxes and

bank charges, are payable by the Funds. Brokerage costs are expensed as incurred and included in

transaction costs.

Accrued expenses include administration services payable to NCM as follows:

(in Canadian dollars) March 31, 2019 September 30, 2018

NCM Small Companies Class 13,380 11,434 NCM Income Growth Class 9,228 8,536 NCM US Dividend Plus Class 2,181 3,497 NCM Energy Plus Class 2,181 2,771 NCM Entrepreneurs Class 11,515 9,531 NCM Global Income Growth Class 23,073 19,351

9. Brokerage commissions on securities transactions:

The Funds paid brokerage commissions in connection with portfolio transactions during the six-month

periods ended March 31, 2019 and 2018 amounting to:

March 31, 2019 March 31, 2018

NCM Small Companies Class 87,067 80,865 NCM Income Growth Class 32,272 37,095 NCM US Dividend Plus Class 41,636 51,061 NCM Energy Plus Class 22,839 19,183 NCM Entrepreneurs Class 76,566 79,630 NCM Global Income Growth Class 20,131 44,490

10. Subsequent events:

On or about May 22, 2019 the NCM US Dividend Plus Class changed its name to NCM US Dividend

Class.

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Documents

Non-consolidated Financial Statements of - NCM …...Risk management fees – (103) Total operating expenses 725,841 968,354 Increase (decrease) in net assets attributable to holders