Download simplified prospectus

MARCH 27, 2014
SIMPLIFIED PROSPECTUS
No securities regulatory authority has expressed an opinion about these units and shares and it is an offence to claim otherwise.
The Funds and the units of the Funds offered under this Simplified Prospectus are not registered with the United States Securities and Exchange
Commission and they are sold in the United States only in reliance on exemptions from registration.
Where a Fund’s units or shares are not designated as a particular class or series, they shall be considered the same as A-Class units of a Trust Fund,
or Series A Shares of a Corporate Fund.
Desjardins Global Small Cap Equity Fund
What Are the Risks of Investing in the Fund?
Fund Details
The main risks pertaining to an investment in the Fund are the following:
Type of Fund
Global Small and Mid Cap Equity Fund
– Currency risk;
Date Established
A-Class Units: January 12, 2004
I-Class Units: March 23, 2010
C- and F-Class Units: November 25, 2013
– Equity risk;
Nature of the
Securities Offered
A-, I-, C- and F-Class Units
– Liquidity risk;
Eligibility for
Registered Plans
Eligible for RRSPs, TFSAs, LIRAs, RRIFs, LIFs,
Group RRSPs, DPSPs, SPPs, RLIFs, RLSPs
and RESPs
The secondary risks pertaining to an investment in the Fund are the following:
Portfolio Manager
Desjardins Global Asset Management Inc.
– Multiple class risk;
Portfolio Sub-Manager
(“Sub-Manager”)
GlobeFlex Capital, L.P.
Lazard Asset Management LLC
– Emerging markets risk;
– Foreign securities risk;
– Smaller companies risk.
What does the Funds Invest In?
Investment Objective
The investment objective of the Fund is to achieve long-term capital growth by
investing primarily in a diversified portfolio of securities of small capitalization
foreign and Canadian companies.
Any change in the fundamental investment objective requires unitholder approval
by a majority vote at a Meeting called for that purpose.
Investment Strategies
The assets of the Fund will be invested using the following styles: growth-oriented
and relative-value.
The growth-oriented sub-manager seeks high growth securities with earnings
acceleration that are trading below their fair market values.
The relative-value sub-manager seeks securities of issuers which exhibit the
following characteristics: a reasonable valuation based on the issuer’s discounted
cash flow, sustainable competitive advantages, sound management and presence
of a catalyst for price revaluation.
The sub-managers’ investment decisions are backed by original research, strict
accounting validation and fundamental analysis.
The Fund may invest up to 15% of its assets in emerging markets securities.
In the event of materially hostile market conditions, each sub-manager reserves
the right to depart from its investment strategy to concentrate investments in
sheltered securities such as Canadian money market instruments.
The Fund may use derivatives for hedging and non-hedging purposes. The Fund
may use various instruments to reduce the global risk of the portfolio or improve
its return. The Fund may use various derivatives such as options, forwards, futures
contracts or swaps for hedging purposes against losses incurred by variations in
securities values or exchange rates. The Fund may also use derivatives for nonhedging purposes to gain an exposure to or as a substitute for a stock, region or
sector, to reduce transaction costs or to provide enhanced liquidity. Derivatives will
only be used in accordance with the requirements of the securities regulations.
– Derivatives risk;
– Large transactions risk;
– Tax policy risk.
See “What are the Risks of Investing in a Mutual Fund?” on page 2 in the first part
of this document (Part A) for a description of these risks.
As at February 28, 2014, the Melodia Balanced Growth Portfolio held 14.88% and
the Melodia Diversified Growth Portfolio held 12.00% of the units of the Fund.
Who Should Invest in the Fund?
Taken individually in a portfolio, this Fund is intended for an investor who has a
medium to high tolerance for risk, who is looking for long-term capital appreciation
and wishes to add a global small cap equity fund to the portfolio. However,
combined with other investment products, this Fund may be suitable for all types
of investors, since the proportion of an investor’s portfolio devoted to this Fund will
be determined according to his personal tolerance for risk.
Distribution Policy
Income and capital gains are paid or reinvested at the option of each investor,
subject to the following. If the amount to be distributed is less than $50, it will
automatically be reinvested in units of the Fund in question. If the units are held in
a registered plan, all of the income will be automatically reinvested.
The Fund intends to make distributions of income and capital gains in December of
each year.
Fund Expenses Indirectly Borne by Investors
You do not pay the Fund’s expenses directly but they will reduce the Fund’s returns.
This table is intended to help you compare the cumulative cost of investing in the
Fund with the cost of investing in another fund. It shows how much the Fund
would pay in expenses on a $1,000 investment in A-Class units that have a 5%
hypothetical annual return, assuming that the management expense ratio (MER) of
the Fund, during each given period, remains constant and equal to the Fund’s MER
in its last fiscal year. No information is presented under this section regarding
C-, R-, F- and S-Class units which do not have a MER for the last fiscal year. Fees
applicable to I-Class units are negotiated directly with each investor.
Fees and Expenses Payable over
(in dollars)
1 Year
3 Years
26
87
5 Years 10 Years
153
347
For more information on the costs of investing in the Fund that are not included in
the calculation of the management expense ratio, see “Fees and Expenses Payable
Directly by You” on page 19 in the first part (Part A) of this prospectus.