Download Amendment No 3 dated August 10, 2016 to the Simplified Prospectus

AMENDMENT NO. 3
DATED AUGUST 10, 2016 TO THE SIMPLIFIED PROSPECTUS DATED MAY 12, 2016,
AS AMENDED BY AMENDMENT NO. 1 DATED JULY 14, 2016 AND AMENDMENT NO. 2
DATED JULY 29, 2016
National Bank Strategic U.S. Income and Growth Fund
(Investor, Advisor, F, O, F5 and T5 Series)
NBI Global Real Assets Income Fund
(Investor, Advisor, F, F5 and T5 Series)
NBI North American Dividend Private Portfolio
(Advisor, F, F5 and T5 Series)
(the “Funds”)
The Simplified Prospectus dated May 12, 2016, as amended by Amendment No. 1 dated July 14, 2016 and
Amendment No. 2 dated July 29, 2016 (the “Prospectus”), relating to the distribution of the securities of the
Funds by National Bank Investments Inc. is hereby amended as indicated hereinafter. Unless otherwise
defined herein, the terms and expressions used in this Amendment No. 3 to the Prospectus have the meaning
given to them in the Prospectus.
The Prospectus is amended to provide notice to investors of the addition of H and FH Series securities to the
Funds.
This Amendment No. 3 to the Prospectus is also being filed in connection with the amendment to the fund
facts of the National Bank Strategic U.S. Income and Growth Fund. This amendment is to provide notice to
investors of the correction of typos in the English and in the French versions of the distribution policy for the
Advisor, F and O Series.
AMENDMENTS TO THE PROSPECTUS
The Prospectus is hereby amended as follows:
a) The information under the heading “National Bank Mutual Funds” on the cover page is deleted and
replaced by the following: “Offering securities of the Investor Series (unless otherwise indicated) and
securities of the Advisor, F, Institutional, M, O, R, F5, T5, T, E, FT, N, NR, H and FH Series (where
indicated)”.
b) The information on the cover page relating to the Funds is deleted and replaced by the following:
National Bank Strategic U.S. Income and Growth Fund1-2-5-7-8-14-15
NBI Global Real Assets Income Fund1-2-7-8-14-15
NBI North American Dividend Private Portfolio1-2-7-8-14-15**
c) On the cover page, notes 14 and 15 are added after note 13 and they read as follows:
(14) Securities of the H Series as well
(15) Securities of the FH Series as well
d) On page 10, in the table under the heading “Organization and management of National Bank Mutual
Funds”, H and FH Series are added to the list of series for which National Bank Financial Inc. and
National Bank Financial Limited acts as principal distributors.
e) On page 12, the first sentence of the second paragraph under “Purchases, switches, conversions
and redemptions of securities” is deleted and replaced by the following: “You can only purchase,
redeem, switch or convert Advisor, H, F, F5, FH and T5 Series securities of the NBI Private Portfolios
through National Bank Financial Inc. and National Bank Financial Limited.”
f)
On page 12, the heading “Advisor, T and T5 Series” under “About the series offered” is deleted and
replaced by “Advisor, H, T and T5 Series”.
g) On page 13, under the heading “Advisor, T and T5 Series” under “About the series offered”, the last
paragraph is deleted and replaced by the following: “The distinction between the Advisors and H
Series and the T and T5 Series is based namely on the distribution policy. T and T5 Series securities
are intended for investors seeking to obtain regular fixed monthly distributions. For more information,
please see the Distribution Policy of the funds concerned. H Series securities have the same
attributes as the Advisor Series, except they strive to reflect the fund’s return after substantially all
the exposure to currency fluctuations has been hedged. H Series securities are intended for investors
who want to obtain exposure to foreign markets while minimizing the impact of foreign currency
fluctuations against the Canadian dollar.”
h) On page 13, the heading “F, FT and F5 Series” under “About the series offered” is deleted and
replaced by “F, FH, FT and F5 Series.”
i)
On page 13, under the heading “F, FT and F5 Series” under “About the series offered”, the third and
fourth paragraphs are deleted and replaced by the following:
“Your dealer is responsible for deciding whether you are eligible to subscribe for and continue to hold
F, FH, FT and F5 Series securities. If you are no longer eligible to hold securities of these series, we
can convert them into Advisor, H, T or T5 Series securities (under the initial sales charge option) of
the same fund upon 30 days’ notice, or redeem them.
The distinction between the F and FH Series, and the FT and F5 Series securities is based namely
on the distribution policy. FT and F5 Series securities are intended for investors seeking to obtain
regular fixed monthly distributions. For more information, please see the Distribution Policy of the
funds concerned. FH Series securities have the same attributes as the F Series, except they strive
to reflect the fund’s return after substantially all the exposure to currency fluctuations has been
hedged. FH Series securities are intended for investors who want to obtain exposure to foreign
markets while minimizing the impact of foreign currency fluctuations against the Canadian dollar.”
j)
On page 14, the heading “Investor, Advisor, E, F, F5, FT, Institutional, M, R, T and T5 Series” under
“Minimum purchase and redemption amounts” is deleted and replaced by the following: “Investor,
Advisor, E, H, F, FH, F5, FT, Institutional, M, R, T and T5 Series”.
k) On page 14, under the heading “Investor, Advisor, E, F, F5 , FT, Institutional, M, R, T and T5 Series”,
the first sentence of the first paragraph is deleted and replaced by the following: “For most funds, the
minimum initial investment for securities of the Investor, Advisor, E, H, F, F5, FH, R, T and T5 Series
is $500.”
l)
On page 15, under “Redeeming securities under the deferred sales charge option or low sales
charge option”, the first paragraph is deleted and replaced by the following:
“If you purchase Advisor, H, T or T5 Series securities under the deferred sales charge option or the
low sales charge option and sell those securities within six years (for the deferred sales charge
option) or three years (for the low sales charge option) of buying them, we will deduct the applicable
redemption fee from your redemption proceeds.”
m) On page 15 under “Free redemption securities – deferred sales charge option”, the first sentence of
the first paragraph is deleted and replaced by the following: “Every calendar year, you may redeem
up to 10% of your Advisor, H, T or T5 Series securities in a fund that would otherwise be subject to
the deferred sales charge, at no charge.”
n) On page 16, under “Converting securities”, the first two sentences of the second last paragraph are
deleted and replaced by the following sentences:
“A conversion between the units of a hedged series (H or FH Series) and an unhedged series (any
series other than the H and FH Series) of the same fund constitutes a disposition for income tax
purposes and, in the case of units held in a non-registered account, will result in capital gain or loss.
Currently, all other conversions do not constitute a disposition for income tax purposes. Such other
conversion will therefore not result in any capital gain or loss for the securityholder.”
o) On page 20, under “Fees”, the second paragraph is deleted and replaced by the following:
“We will have to obtain the approval of Advisor, H, T or T5 Series securityholders for the following
changes: (i) a change in the way of calculating the fees and expenses charged to a fund or directly
to its securityholders by a fund or by us which has the effect of increasing the charges for the series
or the securityholders of the series; or (ii) the addition of fees or expenses to be charged to a fund or
directly to its securityholders which has the effect of increasing the charges for the series or the
securityholders of the series, unless the fees or expenses are charged by an entity at arm’s length
from the fund. If the fees or expenses are charged by such an entity, we will not seek the approval
of the securityholders of the Advisor, H, T or T5 Series, but will send them a notice of the change in
writing at least 60 days before the effective date of the change.”
p) In the table under “Operating expenses” commencing on page 22, the lines for the National Bank
Strategic U.S. Income and Growth Fund, the NBI Global Real Assets Income Fund and the NBI North
American Dividend Private Portfolio are amended by adding two columns, H Series and FH Series,
along the following fixed administration fee rates:
Administration fee rate for each series
National Bank Mutual Funds
National Bank Strategic U.S. Income and Growth Fund
NBI Global Real Assets Income Fund
NBI North American Dividend Private Portfolio
H
Series
0.13%
0.10%
0.15%
FH
Series
0.13%
0.10%
0.15%
q) On page 26, the heading “F, FT and F5 Series” under “Fees and charges payable directly by you” is
deleted and replaced by the following: “F, FH, FT and F5 Series”.
r)
On page 26, the heading “Advisor, T and T5 Series” under “Fees and charges payable directly by
you” is deleted and replaced by the following: “Advisor, H, T and T5 Series”.
s) On page 29, the first sentence under the heading “Management fee reduction plan for high net worth
investors” is amended in order to add the “H Series” and “FH Series” to the list of series indicated.
t)
On page 34, the table under “Impact of sales charges” and the notes below it are deleted and
replaced by the following (in order to add the H Series and/or FH Series where applicable):
Investor Series
Advisor, H, T and T5 Series
Initial sales
charge option1
Deferred sales
charge option2
Low sales charge
option
E, F, FT, FH, F5
Institutional, M, O, R, N, NR
Series
1
2
At the time of
purchase
$50
1 year
-
Redemption fee after:
3 years
5 years
10 years
-
-
$60
$50
$30
-
-
$30
$20
-
-
-
-
-
-
-
In the case where sales charges are 5%.The sales charges for the Jarislowsky Fraser Funds are 0%.
For securities of the Advisor, H, T and T5 Series purchased under the deferred sales charge option, these fees are
only charged if you request the redemption of more than your free redemption securities. Please refer to the “Free
redemption securities — deferred sales charge option” section of this Simplified Prospectus.
u) On page 34, the item “Investor, E, F, FT, F5, Institutional, M, O, R, N and NR Series” under
“Commissions” is deleted and replaced by the following:
“Investor, E, F, FT, F5, FH, Institutional, M, O, R, N and NR Series
No commission is paid to your dealer for the distribution of securities of the Investor, E, Institutional,
M, O, R, N and NR Series. Your dealer does not receive any compensation for F, FT, F5 or FH Series
securities other than the annual fee that you pay based on the value of the assets in your account.”
v) On page 34, the heading “Advisor, T and T5 Series” under “Commissions” is deleted and replaced
by the following: “Advisor, H, T and T5 Series”.
w) On page 34, the first paragraph under the heading “Advisor, T and T5 Series” is deleted and replaced
by the following:
“Your dealer normally receives a commission each time you buy securities in the Advisor, H, T
or T5 Series of a National Bank Mutual Fund. This commission is based on the purchase option
under which you invest in the fund.”
x) On page 35, the heading “Advisor, T, T5, Investor and R Series” under “Trailing commissions” is
deleted and replaced by the following: “Advisor, H, T, T5, Investor and R Series”.
y) On pages 35 to 37, the column heading “Advisor and/or T and/or T5 Series” in the table under the
heading “Advisor, T, T5, Investor and R Series” is deleted and replaced by the following: “Advisor
and/or H and/or T and/or T5 Series”.
z) On page 38, the two paragraphs following the table “Advisor, T, T5, Investor and R Series” are
deleted and replaced by the following:
“It is possible to change between purchase options of the Advisor, H, T and T5 Series within the
same fund, provided certain conditions are met. Decisions regarding purchase option changes are
negotiated between you and your dealer.
A change from securities of the Advisor, H, T or T5 Series purchased under the deferred sales charge
option that are no longer subject to redemption fees to securities of the same series under the initial
sales charge option will generally result in an increase in the trailing commission being paid to your
dealer. It is our expectation that your dealer will act in accordance with the regulations of the Mutual
Fund Dealers Association of Canada and/or the regulations of the Investment Industry Regulatory
Organization of Canada, including obtaining your prior consent.”
aa) On page 38, the item “E, F, FT, F5 and O Series” in the section “Trailing commissions” is deleted
and replaced by the following:
“E, F, FT, F5, FH and O Series
Your dealer does not receive any trailing commission whatsoever with respect to E, F, FT, F5, FH
and O Series securities”.
bb) On page 39, the first paragraph under “Converting securities” is deleted and replaced by the
following:
“Converting securities of one series of a fund for securities of another series of the same fund (other
than a hedged series for an unhedged series, or vice versa) is not a disposition for tax purposes and
no capital gain (or loss) will be realized. Converting units of a hedged series of a fund for units of an
unhedged series of the same fund, or vice versa, will be a disposition for tax purpose and a capital
gain (or loss) will be realized.”
cc) On page 116, the table under “Fund details” for the National Bank Strategic U.S. Income and Growth
Fund is deleted and replaced by the following:
Fund details
Type of fund
Date the fund was
started
Date the new series
were started
Date operations of
the existing series
commenced
Type of securities this
fund offers you*
Eligibility of the fund
for registered tax
plans
Management fees
Global Neutral Balanced
June 15, 2015
H Series – August 10, 2016
FH Series – August 10, 2016
Advisor Series – July 2, 2015
F Series – July 2, 2015
F5 Series – July 2, 2015
Investor Series – October 30, 2015
O Series – July 2, 2015
T5 Series – July 2, 2015
Advisor, H, F, FH, F5, Investor, O and T5 Series
mutual fund units.
The fund units are qualified investments for registered
tax plans.
Advisor Series: 1.95%
H Series: 1.95%
F Series: 0.85%
FH Series: 0.85%
F5 Series: 0.85%
Investor Series: 1.95%
T5 Series: 1.95%
*The fund offers one or more other series by way of private placement.
dd) On page 117, the last sentence of the paragraph beginning with “The fund may use derivatives
consistent with its investment objective…” under “Investment strategies” is deleted.
ee) On page 117, the following paragraph is added after the paragraph beginning with “The fund may
use derivative consistent with its investment objective…” under “Investment strategies”:
“The fund also uses derivatives to hedge the exposure of its investments denominated in foreign
currencies attributed to H and FH Series securities as much as possible. While this strategy may not
provide a perfect hedge of the foreign currency exposure of H and FH Series securities, these
securities will generally have a rate of return based on the fund’s portfolio investment return that
excludes the return attributable to currency fluctuations against the Canadian dollar.
As a result of this strategy, we expect this fund to have a high turnover rate. The resulting trading
costs are attributed to the H and FH Series securities, which could lower their return.
See Risks relating to derivatives for a description of the risks associated with their use.”
ff) On page 117, under “What are the risks of investing in this fund?”, the following paragraph is added
after the list of risks to which the fund is subject:
“Derivatives are used for H and FH Series securities to hedge against currency risk and,
consequently, H and FH Series securities will be exposed to greater derivatives risk than securities
in the other series of the fund. H and FH Series securities will be exposed to less currency risk than
securities in the other series of the fund because they are hedged against such risk. However, the
currency hedging strategy may not provide a perfect hedge of the foreign currency exposure of H
and FH Series securities. During periods of high market tension or volatility, the fund may not be able
to prevent losses on H and FH Series securities resulting from exposure to the foreign currencies in
which the fund’s investments are denominated.”
gg) On page 117, under “Who should invest in this fund?”, the following paragraph is added after the list:
“H and FH Series are intended for investors who are seeking to diversify their portfolio with exposure
to foreign investments, while minimizing their exposure to foreign currency fluctuations against the
Canadian dollar.”
hh) On page 117, under “Distribution policy”, the first sentence of the first paragraph is deleted and
replaced by the following:
“For Advisor, H, F, FH and O Series securities, the fund distributes its net income at the end of each
month.”
ii) On page 118, under “Fund expenses indirectly borne by investors”, the following paragraph is
inserted after the second last paragraph:
“No specific information on fund expenses is available since the H and FH Series units have only
been offered since August 10, 2016.”
jj) On page 149, the table under “Fund details” for the NBI Global Real Assets Income Fund is deleted
and replaced by the following:
Fund details
Type of fund
Date the fund was
started
Date the new series
were started
Date operations of
the existing series
commenced
Type of securities this
fund offers you*
Eligibility of the fund
for registered tax
plans
Management fees
Global Equity
January 25, 2016
H Series – August 10, 2016
FH Series – August 10, 2016
Advisor Series – February 1, 2016
F Series – February 1, 2016
F5 Series – February 1, 2016
Investor Series – February 1, 2016
T5 Series – February 1, 2016
Advisor, H, F, FH, F5, Investor and T5 Series mutual
fund units.
The units are qualified investments for registered tax
plans.
Advisor Series: 2.00%
H Series: 2.00%
F Series: 1.00%
FH Series: 1.00%
F5 Series: 1.00%
Investor Series: 2.00%
T5 Series: 2.00%
*The fund offers one or more other series by way of private placement.
kk) On page 149, the last two sentences of the paragraph beginning with “The fund may use derivatives
consistent with its investment objective…” under “Investment strategies” are deleted.
ll) On page 149, the following paragraph is added after the paragraph beginning with “The fund may
use derivatives consistent with its investment objective…” under “Investment strategies”:
“The fund also uses derivatives to hedge the exposure of its investments denominated in foreign
currencies attributed to H and FH Series securities as much as possible. While this strategy may not
provide a perfect hedge of the foreign currency exposure of H and FH Series securities, these
securities will generally have a rate of return based on the fund’s portfolio investment return that
excludes the return attributable to currency fluctuations against the Canadian dollar.
As a result of this strategy, we expect this fund to have a high turnover rate. The resulting trading
costs are attributed to the H and FH Series securities, which could lower their return.
See Risks relating to derivatives for a description of the risks associated with their use.”
mm) On page 150, under “What are the risks of investing in this fund ?”, the following paragraph is added
after the list of risks to which the fund is subject:
“Derivatives are used for H and FH Series securities to hedge against currency risk and,
consequently, H and FH Series securities will be exposed to greater derivatives risk than securities
in the other series of the fund. H and FH Series securities will be exposed to less currency risk than
securities in the other series of the fund because they are hedged against such risk. However, the
currency hedging strategy may not provide a perfect hedge of the foreign currency exposure of H
and FH Series securities. During periods of high market tension or volatility, the fund may not be able
to prevent losses on H and FH Series securities resulting from exposure to the foreign currencies in
which the fund’s investments are denominated.”
nn) On page 150, under “Who should invest in this fund?”, the following paragraph is added after the list:
“H and FH Series are intended for investors who are seeking to diversify their portfolio with exposure
to foreign investments, while minimizing their exposure to foreign currency fluctuations against the
Canadian dollar.”
oo) On page 150, under “Distribution policy”, the first sentence of the first paragraph is deleted and
replaced by the following:
“For Advisor, H, Investor, F and FH Series securities, the fund distributes its net income at the end
of each month.”
pp) On page 150, the paragraph under “Fund expenses indirectly borne by investors”, is deleted and
replaced by the following:
“No specific information is available since the Advisor Series, F Series, F5 Series, Investor Series
and T5 Series units have only been offered since January 25, 2016 and H Series and FH Series
units have only been offered since August 10, 2016. See Fees and charges payable directly by you
for the fees you pay directly.”
qq) On page 219, the table under “Fund details” for the NBI North American Dividend Private Portfolio is
deleted and replaced by the following:
Fund details
Type of fund
Date the fund was
started
Date the new series
were started
Date operations of
the existing series
commenced
Type of securities this
fund offers you
Eligibility of the fund
for registered tax
plans
Management fees
North American Equity
May 14, 2015
H Series – August 10, 2016
FH Series – August 10, 2016
Advisor Series – July 2, 2015
F Series – May 21, 2015
F5 Series – May 21, 2015
T5 Series – July 14, 2015
Advisor, H, F, FH, F5 and T5 Series mutual fund units.
The units are qualified investments for registered tax
plans.
Advisor Series: 1.60%
H Series: 1.70%
F Series: 0.45%
FH Series: 0.55%
F5 Series: 0.45%
T5 Series: 1.60%
rr) On page 219, the last two sentences of the paragraph beginning with “The fund may use derivatives
consistent with its investment objective…” under “Investment strategies” are deleted.
ss) On page 219, the following paragraph is added after the paragraph beginning with “The fund may
use derivatives consistent with its investment objective…” under “Investment strategies”:
“The fund also uses derivatives to hedge the exposure of its investments denominated in foreign
currencies attributed to H and FH Series securities as much as possible. While this strategy may not
provide a perfect hedge of the foreign currency exposure of H and FH Series securities, these
securities will generally have a rate of return based on the fund’s portfolio investment return that
excludes the return attributable to currency fluctuations against the Canadian dollar.
As a result of this strategy, we expect this fund to have a high turnover rate. The resulting trading
costs are attributed to the H and FH Series securities, which could lower their return.
See Risks relating to derivatives for a description of the risks associated with their use. “
tt) On page 220 under “What are the risks of investing in this fund?”, the following paragraph is added
after the list of risks to which the fund is subject:
“Derivatives are used for H and FH Series securities to hedge against currency risk and,
consequently, H and FH Series securities will be exposed to greater derivatives risk than securities
in the other series of the fund. H and FH Series securities will be exposed to less currency risk than
securities in the other series of the fund because they are hedged against such risk. However, the
currency hedging strategy may not provide a perfect hedge of the foreign currency exposure of H
and FH Series securities. During periods of high market tension or volatility, the fund may not be able
to prevent losses on H and FH Series securities resulting from exposure to the foreign currencies in
which the fund’s investments are denominated.”
uu) On page 220, under “Who should invest in this fund?”, the following paragraph is added after the list:
“H and FH Series are intended for investors who are seeking to diversify their portfolio with exposure
to foreign investments, while minimizing their exposure to foreign currency fluctuation against the
Canadian dollar.”
vv) On page 220, under “Distribution policy”, the first sentence of the first paragraph is deleted and
replaced by the following:
“For Advisor, H, Investor, F and FH Series securities, the fund distributes its net income at the end
of each month.”
ww) On page 220, under “Fund expenses indirectly borne by investors”, the following paragraph is
inserted after the second last paragraph:
“No specific information on fund expenses is available since the H and FH Series units have only
been offered since August 10, 2016.”
WHAT ARE YOUR LEGAL RIGHTS?
Securities legislation in some provinces and territories gives you the right to withdraw from an agreement to
buy mutual funds within 2 business days of receiving the Simplified Prospectus or Fund Facts, or to cancel
your purchase within 48 hours of receiving confirmation of your order.
Securities legislation in some provinces and territories also allows you to cancel an agreement to buy mutual
fund securities and get your money back, or to make a claim for damages, if the Simplified Prospectus, Annual
Information Form, Fund Facts or financial statements misrepresent any facts about the fund. These rights
must usually be exercised within certain time limits.
For more information, refer to the securities legislation of your province or territory or consult your lawyer.