Download AMENDMENT NO. 1 DATED JULY 21, 2016 TO

AMENDMENT NO. 1 DATED JULY 21, 2016
TO THE SIMPLIFIED PROSPECTUS DATED JUNE 10, 2016
(the “SP”)
RELATING TO UNITS OR SHARES OF:
NEI Ethical American Multi-Strategy Fund
(Series A, Series F and Series I units)
NEI Ethical Global Dividend Fund
(Series A, Series F, Series I, Series P and Series PF units)
NEI Ethical Global Equity Fund
(Series A, Series F and Series I units)
NEI Northwest Global Equity Fund
(Series A, Series F and Series I units)
NEI Northwest Global Equity Corporate Class
(Series A and Series F shares)
(each a “Fund” and, collectively, the “Funds”)
The SP relating to the offering of units or shares of the Funds is hereby amended as set out below.
Northwest & Ethical Investments L.P. (“NEI Investments”), the manager of the Funds, has announced the following
changes to the Funds:
A. SUMMARY OF AMENDMENTS
1.
CHANGES RELATING TO PORTFOLIO MANAGEMENT
Effective on or about August 30, 2016:
(a) The portfolio manager of the NEI Ethical American Multi-Strategy Fund will change from Manning &
Napier Advisors, LLC to NEI Investments and AllianceBernstein Canada, Inc. will be appointed as subadvisor;
(b) The portfolio manager of the NEI Ethical Global Dividend Fund will change from Beutel, Goodman &
Company Ltd. to NEI Investments and Amundi Canada Inc. and Amundi Asset Management will be
appointed as sub-advisors;
(c) The portfolio manager of the NEI Ethical Global Equity Fund will change from Manning & Napier Advisors,
LLC to Hermes Investment Management Ltd.;
(d) The portfolio sub-advisor of the NEI Northwest Global Equity Fund (the underlying fund of the NEI
Northwest Global Equity Corporate Class) will change from Beutel, Goodman & Company Ltd. to Principal
Global Investors, LLC.
-22.
INVESTMENT STRATEGIES CHANGES
In connection with the changes to the portfolio sub-advisor or portfolio manager of the Funds, as applicable, there
will be corresponding changes to the investment strategies of the Funds as described below.
B. SPECIFIC AMENDMENTS
The SP is hereby amended to reflect the following changes which will be effective on or about August 30, 2016:
1.
2.
In the “Fund Details” table for the NEI Ethical American Multi-Strategy Fund on page 61 of the SP, the row
for “Portfolio Manager” and the related footnote are deleted and replaced by the following two rows:
Portfolio Manager:
Northwest & Ethical Investments L.P., Toronto ON
Portfolio Sub-Advisor:
AllianceBernstein Canada, Inc., Toronto, ON
In the “Fund Details” table for the NEI Ethical Global Dividend Fund on page 63 of the SP, the row for
“Portfolio Manager” is deleted and replaced by the following two rows and related footnote:
Portfolio Manager:
Northwest & Ethical Investments L.P., Toronto ON
Portfolio Sub-Advisor:
Amundi Canada Inc., Montréal, QC
*Amundi Asset Management, Paris, France
*
As Portfolio Sub-Advisor, Amundi Canada Inc. has responsibility for the investment advice given and
portfolio management services provided to the Fund by Amundi Asset Management (“Amundi”). In certain
circumstances, it may be difficult to enforce legal rights against Amundi because it is resident outside
Canada and all or substantially all of its assets are located outstide Canada.
3.
In the “Fund Details” table for the NEI Ethical Global Equity Fund on page 66 of the SP, the row for
“Portfolio Manager” and the related footnote are deleted and replaced by the following row and related
footnote:
Portfolio Manager:
*Hermes Investment Management Limited, London,
United Kingdom
*
Hermes Investment Management Limited (Hermes) is not registered in Ontario to provide portfolio
advisory services. Hermes’ head office is located in the United Kingdom and all or substantially all of its
assets may be situated outside of Canada. As a result it may be difficult to enforce legal rights against
Hermes. The name and address of the agent for service of process of Hermes is Gowling WLG (Canada)
LLP, 50 Queen Street North, Suite 1020, PO Box 2248, Waterloo Region, Ontario, N2H 6M2.
4.
In the “Fund Details” table for the NEI Northwest Global Equity Fund on page 90 of the SP, the row for
“Portfolio Sub-Advisor” is deleted and replaced by the following row and related footnote:
Portfolio Sub-Advisor:
*Principal Global Investors, LLC, Des Moines, IA, U.S.A.
-3*
As a Portfolio Manager, we have responsibility for the investment advice given and portfolio management
services provided to the Fund by Principal Global Investors, LLC (“Principal”). In certain circumstances, it
may be difficult to enforce legal rights against Principal because it is resident outside Canada and all or
substantially all of its assets are located outside Canada.
5.
In the “Fund Details” table for the NEI Northwest Global Equity Corporate Class on page 150 of the SP, the
row for “Portfolio Sub-Advisor of Underlying Fund” is deleted and replaced by the following row and
related footnote:
Portfolio Sub-Advisor of Underlying Fund:
*Principal Global Investors, LLC, Des Moines, IA, U.S.A.
*
As a Portfolio Manager, we have responsibility for the investment advice given and portfolio management
services provided to the Underlying Fund by Principal Global Investors, LLC (“Principal”). In certain
circumstances, it may be difficult to enforce legal rights against Principal because it is resident outside
Canada and all or substantially all of its assets are located outside Canada.
6.
Under the heading “What does the Fund invest in?”, the section entitled “Investment Strategies” is
deleted in its entirety for each of the Funds below and replaced as follows :
Fund Name
NEI Ethical American MultiStrategy Fund
(page 61 of the SP)
Old Investment Strategies
New Investment Strategies
The Portfolio Manager uses a
combination of qualitative company
selection strategies and a strict
pricing discipline. Implementation of
this approach involves an interaction
between top-down, macroeconomic
analysis, bottom-up industry analysis,
and security selection.
The Portfolio Sub-Advisor aims
to create an actively managed,
high-conviction equity portfolio
designed to outperform the
market over a full cycle, while
emphasizing
downside
protection and capturing most
of the upside in rising markets.
More specifically, the Portfolio
Sub-Advisor seeks to identify
equity securities that the
Portfolio Sub-Advisor believes to
have
fundamentally
lower
volatility and less downside risks
in the future while achieving a
balanced exposure to quality,
stability, and reasonable price
factors.
The Portfolio Manager’s in-house
team of equity analysts relies upon
three broad equity strategies:
Strategic Profile, Hurdle Rate and
Bankable Deal. In general terms, the
Strategic Profile strategy focuses on
companies positioned for robust
future growth but whose valuations
do not reflect that growth potential.
The Hurdle Rate strategy looks at
companies that are in depressed
sectors, but are strong enough to
survive the hard times and are likely
to lead the rebound of their
industries when supply/demand
conditions improve. The Bankable
Deal strategy takes an in-depth look
at the current assets and cash flow
of a company to reveal value that is
not reflected in the stock’s price.
The Fund may invest, directly or
indirectly through the use of
derivatives, a portion or even all
of its net assets in units of other
mutual funds, including funds
managed by us. The Portfolio
Sub-Advisor will only invest in
units of other funds where such
investment is compatible with
-4Fund Name
Old Investment Strategies
New Investment Strategies
The Fund may invest, directly or
indirectly through the use of
derivatives, a portion or even all of its
net assets in units of other mutual
funds, including funds managed by
us. The Portfolio Manager will only
invest in units of other funds where
such investment is compatible with
the investment objectives and
strategies of the Fund. These
investments will be selected on the
same basis as other investments of
the Fund.
the investment objectives and
strategies of the Fund. These
investments will be selected on
the same basis as other
investments of the Fund.
The Fund may temporarily hold a
portion of its assets in cash or fixedincome securities while seeking
investment opportunities or for
defensive purposes during times of
anticipated market volatility.
The Fund may invest up to 100% of its
property in foreign securities.
The Fund may temporarily hold
a portion of its assets in cash or
fixed-income securities while
seeking
investment
opportunities or for defensive
purposes during times of
anticipated market volatility.
The Fund may invest up to 100%
of its property in foreign
securities.
The Fund may use derivatives for
hedging purposes only. You will
find more information about
derivatives on page 7.
The Fund may use derivatives for
hedging purposes only. You will find
more information about derivatives on
page 7.
NEI Ethical Global Dividend
Fund
(page 63 of the SP)
The Fund is managed through a
fundamental value process that seeks
to invest in quality, liquid companies
whose management has successfully
built shareholder value over time. A
common characteristic of these
companies is their ability to generate
free cash flow, which supports
growth and profitability, allows
management to make strategic
acquisitions, buy back stock and pay
generous and growing dividends.
Through investments in North
American and non-North American
markets, the companies selected by
the Portfolio Manager are expected
to have attractive total return
potential relative to downside risk
through investment in blue chip
common and preferred shares, high
quality selective income and royalty
trusts and interest bearing securities.
The Portfolio Sub-Advisor seeks
to invest primarily in liquid high
quality stocks that pay a high
and sustainable dividend. The
Portfolio Sub-Advisor seeks to
build a portfolio with a high level
of diversification to manage
volatility.
The Fund may invest, directly or
indirectly through the use of
derivatives, a portion or even all
of its assets in units of other
mutual funds, including funds
managed by us. The Portfolio
Manager will only invest in units
of other funds where such
investment is compatible with
the investment objectives and
strategies of the Fund. These
investments will be selected on
the same basis as other
-5Fund Name
Old Investment Strategies
A consistent research framework is
employed, which allows for direct
comparison of diverse opportunities
across global markets and economic
sectors. The cornerstone of the
research process is the determination
of a company's business value,
defined as the present value of
sustainable free cash flow. Given the
importance of sustainable and
growing dividends, balance sheet
analysis to determine financial
strength is essential to research and
investment success.
The Fund may invest, directly or
indirectly through the use of
derivatives, a portion or even all of its
assets in units of other mutual funds,
including funds managed by us. The
Portfolio Manager will only invest in
units of other funds where such
investment is compatible with the
investment objectives and strategies
of the Fund. These investments will
be selected on the same basis as
other investments of the Fund.
The Fund may temporarily hold a
portion of its assets in cash or fixedincome securities while seeking
investment opportunities or for
defensive purposes during times of
anticipated market volatility.
New Investment Strategies
investments of the Fund.
The Fund may invest in ETFs
(Exchange
Traded
Funds),
American Depository Receipts
(ADRs) and Global Depository
Receipts (GDRs) in accordance
with the Fund’s investment
objectives, when a direct
investment in the local equity
market is not accessible or
deemed
inefficient.
These
instruments will be classified
according to their risk country.
The Fund may temporarily hold
a portion of its assets in cash or
fixed-income securities while
seeking
investment
opportunities or for defensive
purposes during times of
anticipated market volatility.
The Fund may invest up to 100%
of its property in foreign
securities.
The Fund may use derivatives
for hedging purposes only. You
will find more information about
derivatives on page 7.
The Fund may invest up to 100% of its
property in foreign securities.
The Fund may use derivatives for
hedging purposes only. You will find
more information about derivatives
on page 7.
NEI Ethical Global Equity Fund
(page 66 of the SP)
The Portfolio Manager uses an equity
investment approach, based on a
combination of qualitative company
selection strategies and a strict
pricing discipline. Implementation of
this approach involves an interaction
between top-down, macroeconomic
analysis, bottom-up industry analysis,
and security selection.
The Portfolio Manager uses an
equity investment approach,
based on a combination of
qualitative company selection
strategies and a strict pricing
discipline. Implementation of
this approach involves an
interaction between top-down,
macroeconomic
analysis,
-6Fund Name
Old Investment Strategies
New Investment Strategies
The Portfolio Manager’s in-house
team of equity analysts relies upon
three broad equity strategies:
Strategic Profile, Hurdle Rate, and
Bankable Deal. In general terms, the
Strategic Profile strategy focuses on
companies positioned for robust
future growth, but whose valuations
do not reflect that growth potential.
The Hurdle Rate strategy looks at
companies that are in depressed
sectors, but are strong enough to
survive the hard times, and are likely
to lead the rebound of their
industries when supply/demand
conditions improve. The Bankable
Deal strategy take an in-depth look at
the current assets and cash flow of a
company to reveal value that is not
reflected in the stock’s price.
bottom-up industry analysis, and
security selection.
The Fund may invest, directly or
indirectly through the use of
derivatives, a portion or even all of its
assets in units of other mutual funds,
including funds managed by us. The
Portfolio Manager will only invest in
units of other funds where such
investment is compatible with the
investment objectives and strategies
of the Fund. These investments will
be selected on the same basis as
other investments of the Fund.
The Fund may temporarily hold a
portion of its assets in cash or fixedincome securities while seeking
investment opportunities or for
defensive purposes during times of
anticipated market volatility.
The Fund may invest up to 100% of its
property in foreign securities.
The Fund may use derivatives for
hedging purposes only. You will find
more information about derivatives on
page 7.
NEI Northwest Global Equity
Fund
(page 90 of the SP)
The Portfolio Sub-Advisor uses a
value approach designed to identify
high quality, liquid companies trading
at a significant discount to their
“business value,” defined as the
The Portfolio Manager will select
shares in companies based on an
analysis of a number of
fundamental
factors
and
Environmental,
Social
and
Governance
(“ESG”)
risk
characteristics in order to
generate returns. Companies
that score well on a range of
factors as well as on the change
and current state of ESG risks
will be favoured.
The Fund may invest, directly or
indirectly through the use of
derivatives, a portion or even all
of its assets in units of other
mutual funds, including funds
managed by us. The Portfolio
Manager will only invest in units
of other funds where such
investment is compatible with
the investment objectives and
strategies of the Fund. These
investments will be selected on
the same basis as other
investments of the Fund.
The Fund may temporarily hold
a portion of its assets in cash or
fixed-income securities while
seeking
investment
opportunities or for defensive
purposes during times of
anticipated market volatility.
The Fund may invest up to 100%
of its property in foreign
securities.
The Fund may use derivatives for
hedging purposes only. You will
find more information about
derivatives on page 7.
The Fund invests primarily in
foreign
equity
securities,
including emerging
market
securities, usually of large and
medium sized well-capitalized
-7Fund Name
Old Investment Strategies
New Investment Strategies
present value of sustainable free cash
flow. A consistent and rigorous
analytical framework is employed
that allows for direct comparison of
diverse opportunities across markets
and sectors. Risk is controlled
primarily at the security level through
a buy/sell discipline that involves the
establishment of formal targets and
downside
limits
based
on
fundamental research.
companies, which are listed on
principal global stock exchanges.
The Portfolio Sub-Advisor has a
flexible investment strategy and
may invest in equity securities
regardless
of
market
capitalization and style. The
Portfolio Sub-Advisor believes
that
superior
stocks
are
characterized by companies with
improving
and
sustainable
business fundamentals, rising
investor
expectations
and
attractive relative valuations.
The Fund may hold cash or invest in
short-term securities which are
determined
by
the
Portfolio
Sub-Advisor to be advisable as a
defensive measure if determined to be
appropriate for the purposes of
enhancing liquidity or preserving
capital in light of prevailing market or
economic conditions. The Fund may
also temporarily hold a portion of its
assets in cash or fixed-income
securities while seeking investment
opportunities or for defensive
purposes during times of anticipated
market volatility.
The Fund may invest up to 10% of the
Fund’s property at the time of
investment in Canadian listed
securities.
The Fund may use derivative
instruments, such as options, futures,
forward contracts and/or swaps, for
both hedging and non-hedging
strategies, in a manner which is
consistent with the investment
objectives of the Fund and as
permitted by the Canadian Securities
Administrators, including to:
 hedge
against losses from
changes in the prices of the
Fund’s investments and from
exposure to foreign currencies;
and
 gain
exposure to individual
securities and markets instead of
buying the securities directly.
You will find more information about
The Fund may invest in ETFs
(Exchange
Traded
Funds),
American Depository Receipts
(ADRs) and Global Depository
Receipts (GDRs) in accordance
with the Fund’s investment
objectives, when a direct
investment in the local equity
market is not accessible or
deemed
inefficient.
These
instruments will be classified
according to their risk country.
The Fund may hold cash or invest
in short-term securities which are
determined by the Portfolio
Sub-Advisor to be advisable as a
defensive measure if determined
to be appropriate for the
purposes of enhancing liquidity
or preserving capital in light of
prevailing market or economic
conditions. The Fund may also
temporarily hold a portion of its
assets in cash or fixed-income
securities
while
seeking
investment opportunities or for
defensive purposes during times
of anticipated market volatility.
The Fund may invest up to 15%
of the Fund’s property at the
time of investment in Canadian
listed securities.
The Fund may use derivative
instruments, such as options,
futures,
forward
contracts
-8Fund Name
Old Investment Strategies
derivatives on page 7.
At the discretion of the Manager, the
Fund may apply certain components
of the Responsible Investing Program
as described on page 33 of this
simplified prospectus.
New Investment Strategies
and/or swaps, for both hedging
and non-hedging strategies, in a
manner which is consistent with
the investment objectives of the
Fund and as permitted by the
Canadian
Securities
Administrators, including to:
 hedge against losses from
changes in the prices of the
Fund’s investments and
from exposure to foreign
currencies; and
 gain exposure to individual
securities
and
markets
instead of buying the
securities directly.
You will find more information
about derivatives on page 7.
At the discretion of the
Manager, the Fund may apply
certain components of the
Responsible Investing Program
as described on page 33 of this
simplified prospectus.
The Fund achieves its objective by
investing substantially all of its assets
in units of NEI Northwest Global
Equity Fund (the “Underlying Fund”).
NEI Northwest Global Equity
Corporate Class
(page 150 of the SP)
The Underlying Fund’s Portfolio SubAdvisor uses a value approach
designed to identify high quality,
liquid companies trading at a
significant discount to their “business
value,” defined as the present value
of sustainable free cash flow. A
consistent and rigorous analytical
framework is employed that allows
for direct comparison of diverse
opportunities across markets and
sectors. Risk is controlled primarily at
the security level through a buy/sell
discipline that involves the
establishment of formal targets and
downside
limits
based
on
fundamental research.
The Underlying Fund may hold cash
or invest in short-term securities
The Fund achieves its objective
by investing substantially all of
its assets in units of NEI
Northwest Global Equity Fund
(the “Underlying Fund”).
The Underlying Fund invests
primarily in foreign equity
securities, including emerging
market securities,
usually of
large and medium sized wellcapitalized companies, which are
listed on principal global stock
exchanges. The Underlying
Fund’s Portfolio Sub-Advisor has
a flexible investment strategy
and may invest in equity
securities regardless of market
capitalization and style. The
Underlying Fund’s Portfolio SubAdvisor believes that superior
stocks are characterized by
companies with improving and
sustainable
business
-9Fund Name
Old Investment Strategies
New Investment Strategies
which are determined by its Portfolio
Sub-Advisor to be advisable as a
defensive measure if determined to
be appropriate for purposes of
enhancing liquidity or preserving
capital in light of prevailing market or
economic conditions. The Underlying
Fund may also temporarily hold a
portion of its assets in cash or fixedincome securities while seeking
investment opportunities or for
defensive purposes during times of
anticipated market volatility.
fundamentals, rising investor
expectations and attractive
relative valuations.
The Underlying Fund may invest up to
10% of its property at the time of
investment in Canadian listed
securities.
The Underlying Fund may use
derivative instruments, such as
options, futures, forward contracts
and/or swaps, for both hedging and
non-hedging strategies, in a manner
which is consistent with the
investment
objectives
of
the
Underlying Fund and as permitted by
the
Canadian
Securities
Administrators, including to:
 hedge against losses from
changes in the prices of the
Underlying Fund’s investments
and from exposure to foreign
currencies; and

gain exposure to individual
securities and markets instead of
buying the securities directly.
You will find more information about
derivatives on page 7.
At the discretion of the Manager, the
Underlying Fund may apply certain
components of the Responsible
Investing Program as described on
page 33 of this simplified prospectus.
The Underlying Fund may invest
in ETFs (Exchange Traded
Funds), American Depository
Receipts (ADRs) and Global
Depository Receipts (GDRs) in
accordance with the Underlying
Fund’s investment objectives,
when a direct investment in the
local equity market is not
accessible or deemed inefficient.
These instruments will be
classified according to their risk
country.
The Underlying Fund may hold
cash or invest in short-term
securities which are determined
by the Underlying Fund’s
Portfolio Sub-Advisor to be
advisable as a defensive measure
if determined to be appropriate
for the purposes of enhancing
liquidity or preserving capital in
light of prevailing market or
economic conditions.
The
Underlying Fund may also
temporarily hold a portion of its
assets in cash or fixed-income
securities
while
seeking
investment opportunities or for
defensive purposes during times
of anticipated market volatility.
The Underlying Fund may invest
up to 15% of the Underlying
Fund’s property at the time of
investment in Canadian listed
securities.
The Underlying Fund may use
derivative instruments, such as
options,
futures,
forward
contracts and/or swaps, for both
hedging
and
non-hedging
strategies, in a manner which is
consistent with the investment
objectives of the Underlying
Fund and as permitted by the
Canadian
Securities
- 10 Fund Name
Old Investment Strategies
New Investment Strategies
Administrators, including to:
 hedge against losses from
changes in the prices of the
Underlying
Fund’s
investments
and
from
exposure
to
foreign
currencies; and
 gain exposure to individual
securities
and
markets
instead of buying the
securities directly.
You will find more information
about derivatives on page 7.
At the discretion of the
Manager, the Underlying Fund
may apply certain components
of the Responsible Investing
Program as described on page
33 of this simplified prospectus.
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 two business days of receiving the simplified prospectus or fund facts document, 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
units and get your money back, or make a claim for damages, if the simplified prospectus, fund facts, annual
information form, or financial statements misrepresent any facts about the mutual 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.