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MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 MANAGEMENT REPORT Management’s Responsibility for Financial Reporting The accompanying financial statements have been prepared by Mackenzie Financial Corporation, as Manager of Mackenzie Canadian Large Cap Growth Fund (the “Fund”). The Manager is responsible for the integrity, objectivity and reliability of the data presented. This responsibility includes selecting appropriate accounting principles and making judgments and estimates consistent with International Financial Reporting Standards. The Manager is also responsible for the development of internal controls over the financial reporting process, which are designed to provide reasonable assurance that relevant and reliable financial information is produced. The Board of Directors (the “Board”) of Mackenzie Financial Corporation is responsible for reviewing and approving the financial statements and overseeing the Manager’s performance of its financial reporting responsibilities. The Board is assisted in discharging this responsibility by an Audit Committee, which reviews the financial statements and recommends them for approval by the Board. The Audit Committee also meets regularly with the Manager, internal auditors and external auditors to discuss internal controls over the financial reporting process, auditing matters and financial reporting issues. Deloitte LLP is the external auditor of the Fund. It is appointed by the Board. The external auditor has audited the financial statements in accordance with Canadian generally accepted auditing standards to enable it to express to the securityholders its opinion on the financial statements. Its report is set out below. On behalf of Mackenzie Financial Corporation, Manager of the Fund Barry McInerney President and Chief Executive Officer Terry Rountes Chief Financial Officer, Funds June 6, 2017 INDEPENDENT AUDITOR’S REPORT To the Securityholders of Mackenzie Canadian Large Cap Growth Fund (the “Fund”) We have audited the accompanying financial statements of the Fund which comprise the statements of financial position as at March 31, 2017 and 2016, and the statements of comprehensive income, statements of changes in financial position and statements of cash flows for the periods then ended, as indicated in Note 1, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as at March 31, 2017 and 2016, and its financial performance and its cash flows for the periods then ended, as indicated in Note 1, in accordance with International Financial Reporting Standards. Chartered Professional Accountants, Licensed Public Accountants Toronto, Canada June 6, 2017 MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 STATEMENTS OF FINANCIAL POSITION In thousands (except per security figures) As at March 31 2017 $ ASSETS Current assets Investments at fair value Cash and cash equivalents Dividends receivable Accounts receivable for investments sold Accounts receivable for securities issued Unrealized gains on derivative contracts Total assets LIABILITIES Current liabilities Accounts payable for investments purchased Accounts payable for securities redeemed Unrealized losses on derivative contracts Total liabilities Net assets attributable to securityholders Net assets attributable to securityholders per series (note 3) Series A Series D Series F Series FB Series G Series I Series O Series PW Series PWF Series PWX Series R Series S Quadrus Series H Series H5 Series L Series L5 Series L8 Series N Series N5 Series D5 Series D8 Series QF Series QF5 Series 2016 $ 195,660 2,761 256 16 10 519 199,222 212,705 2,637 437 6,771 33 – 222,583 5 183 848 1,036 198,186 5,061 115 – 5,176 217,407 33,301 15 575 1 1,013 2,142 914 390 51 49 7 84,981 61,382 405 1 10,226 1 1 2,344 1 50 203 132 1 32,889 6 598 1 1,045 1,783 674 255 1 43 22,391 85,487 60,707 417 1 9,374 – – 1,520 1 43 171 – – The accompanying notes are an integral part of these financial statements. 2017 $ Net assets attributable to securityholders per security (note 3) Series A Series D Series F Series FB Series G Series I Series O Series PW Series PWF Series PWX Series R Series S Quadrus Series H Series H5 Series L Series L5 Series L8 Series N Series N5 Series D5 Series D8 Series QF Series QF5 Series 27.50 10.23 21.78 10.39 11.94 14.42 24.68 10.08 11.40 9.56 11.37 31.30 27.36 18.77 16.33 13.40 15.12 14.80 14.10 16.41 11.05 13.65 10.53 15.20 2016 $ 24.87 9.25 19.67 9.38 10.79 13.06 22.10 9.12 10.30 8.63 10.28 28.25 24.75 17.02 15.48 12.11 – – 12.73 15.52 10.51 13.38 – – MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 STATEMENTS OF COMPREHENSIVE INCOME For the periods ended March 31 (note 1) In thousands (except per security figures) 2017 $ Income Dividends Interest income Other changes in fair value of investments Net realized gain (loss) Net unrealized gain (loss) Securities lending income Total income (loss) Expenses (note 6) Management fees Management fee rebates Administration fees Interest charges Commissions and other portfolio transaction costs Independent Review Committee fees Other Expenses before amounts absorbed by Manager Expenses absorbed by Manager Net expenses Increase (decrease) in net assets attributable to securityholders from operations before tax Foreign withholding taxes Foreign income taxes paid (recovered) Increase (decrease) in net assets attributable to securityholders from operations Increase (decrease) in net assets attributable to securityholders from operations per series Series A Series D Series F Series FB Series G Series I Series O Series PW Series PWF Series PWX Series R Series S Quadrus Series H Series H5 Series L Series L5 Series L8 Series N Series N5 Series D5 Series D8 Series QF Series QF5 Series 2016 $ 4,667 111 5,452 24 25,440 4,265 33 34,516 46,090 (65,351) 56 (13,729) 2,339 (4) 302 2 590 1 3 3,233 – 3,233 2,591 (4) 337 1 445 1 6 3,377 – 3,377 31,283 238 – (17,106) 196 – 31,045 (17,302) 4,450 1 82 – 148 277 129 51 8 7 1,534 14,282 8,318 63 – 1,365 – – 296 – 6 25 3 – (3,197) – (46) – (101) (130) (43) (16) – (4) (1,623) (5,535) (5,981) (28) – (495) (1) – (82) – (4) (16) – – The accompanying notes are an integral part of these financial statements. 2017 $ Increase (decrease) in net assets attributable to securityholders from operations per security Series A Series D Series F Series FB Series G Series I Series O Series PW Series PWF Series PWX Series R Series S Quadrus Series H Series H5 Series L Series L5 Series L8 Series N Series N5 Series D5 Series D8 Series QF Series QF5 Series 3.59 1.48 3.05 1.47 1.62 2.04 3.86 1.38 1.78 1.49 2.20 4.84 3.56 2.68 2.39 1.80 1.32 1.48 2.27 2.62 1.49 1.87 1.34 1.57 2016 $ (2.45) 1.15 (1.62) (0.46) (1.00) (1.10) (1.75) (0.77) 0.30 (0.59) (0.63) (1.97) (2.41) (0.93) 0.66 (1.15) – – (1.06) 0.71 (1.04) (1.34) – – MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 STATEMENTS OF CHANGES IN FINANCIAL POSITION For the periods ended March 31 (note 1) In thousands NET ASSETS ATTRIBUTABLE TO SECURITYHOLDERS Beginning of period Increase (decrease) in net assets from operations Distributions paid to securityholders: Investment income Capital gains Return of capital Management fee rebates Total distributions paid to securityholders Security transactions: Proceeds from securities issued Reinvested distributions Value of securities redeemed Total security transactions Total increase (decrease) in net assets End of period Increase (decrease) in fund securities (note 7): Securities outstanding – beginning of period Issued Reinvested distributions Redeemed Securities outstanding – end of period NET ASSETS ATTRIBUTABLE TO SECURITYHOLDERS Beginning of period Increase (decrease) in net assets from operations Distributions paid to securityholders: Investment income Capital gains Return of capital Management fee rebates Total distributions paid to securityholders Security transactions: Proceeds from securities issued Reinvested distributions Value of securities redeemed Total security transactions Total increase (decrease) in net assets End of period Increase (decrease) in fund securities (note 7): Securities outstanding – beginning of period Issued Reinvested distributions Redeemed Securities outstanding – end of period 2017 2016 Series A $ 32,889 42,565 4,450 (3,197) 2017 2016 Series D $ 6 1 1 – 2017 2016 Series F $ 598 687 82 (46) 2017 2016 Series FB $ 1 – – – 2017 2016 Series G $ 1,045 1,407 148 (101) (267) (911) – – (1,178) (236) (4,062) – – (4,298) – – – – – – – – – – (6) (21) – – (27) (4) (69) – – (73) – – – – – – – – – – (9) (32) – – (41) (8) (135) – – (143) 10,444 1,175 (14,479) (2,860) 412 33,301 2,856 4,287 (9,324) (2,181) (9,676) 32,889 8 – – 8 9 15 5 – – 5 5 6 160 26 (264) (78) (23) 575 153 71 (194) 30 (89) 598 – – – – – 1 1 – – 1 1 1 – 39 (178) (139) (32) 1,013 – 135 (253) (118) (362) 1,045 Securities 1,322 1,382 394 101 44 166 (549) (327) 1,211 1,322 Securities 1 – – – 1 – 1 – – 1 Securities 30 29 8 6 1 3 (13) (8) 26 30 Securities – – – – – Series I $ 1,783 1,793 277 (130) Series O $ 674 708 129 (43) Series PW $ 255 66 51 (16) Series PWF $ 1 8 – – – – – Securities 97 – 3 (15) 85 – – Series PWX $ 43 47 7 (4) 106 – 12 (21) 97 (20) (66) – (4) (90) (11) (185) – (4) (200) (10) (35) – – (45) (5) (94) – – (99) (4) (13) – – (17) (1) (22) – – (23) (1) (2) – – (3) – – – – – (1) (2) – – (3) – (5) – – (5) 190 90 (108) 172 359 2,142 246 200 (126) 320 (10) 1,783 193 45 (82) 156 240 914 729 99 (720) 108 (34) 674 154 17 (70) 101 135 390 280 23 (75) 228 189 255 43 2 – 45 50 51 1 – – 1 1 1 – 3 (1) 2 6 49 – 5 – 5 (4) 43 Securities 137 14 6 (8) 149 The accompanying notes are an integral part of these financial statements. 112 18 16 (9) 137 Securities 31 8 2 (4) 37 26 28 4 (27) 31 Securities 28 6 16 27 2 2 (7) (7) 39 28 Securities – 5 – – 5 – – – – – Securities 5 – – – 5 4 – 1 – 5 MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 STATEMENTS OF CHANGES IN FINANCIAL POSITION (cont’d) For the periods ended March 31 (note 1) In thousands NET ASSETS ATTRIBUTABLE TO SECURITYHOLDERS Beginning of period Increase (decrease) in net assets from operations Distributions paid to securityholders: Investment income Capital gains Return of capital Management fee rebates Total distributions paid to securityholders Security transactions: Proceeds from securities issued Reinvested distributions Value of securities redeemed Total security transactions Total increase (decrease) in net assets End of period Increase (decrease) in fund securities (note 7): Securities outstanding – beginning of period Issued Reinvested distributions Redeemed Securities outstanding – end of period NET ASSETS ATTRIBUTABLE TO SECURITYHOLDERS Beginning of period Increase (decrease) in net assets from operations Distributions paid to securityholders: Investment income Capital gains Return of capital Management fee rebates Total distributions paid to securityholders Security transactions: Proceeds from securities issued Reinvested distributions Value of securities redeemed Total security transactions Total increase (decrease) in net assets End of period Increase (decrease) in fund securities (note 7): Securities outstanding – beginning of period Issued Reinvested distributions Redeemed Securities outstanding – end of period 2017 2016 Series R $ 22,391 53,327 1,534 (1,623) 2017 2016 Series S $ 85,487 94,357 14,282 (5,535) 2017 2016 Quadrus Series $ 60,707 80,977 8,318 (5,981) 2017 2016 H Series $ 417 884 63 (28) 2017 2016 H5 Series $ 1 – – – – – – – – (178) (3,064) – – (3,242) (1,178) (4,026) – – (5,204) (671) (11,533) – – (12,204) (498) (1,700) – – (2,198) (444) (7,633) – – (8,077) (4) (15) – – (19) (3) (52) – – (55) – – – – – – – – – – 19 – (23,937) (23,918) (22,384) 7 308 3,241 (29,620) (26,071) (30,936) 22,391 4,772 5,204 (19,560) (9,584) (506) 84,981 12,672 12,204 (16,007) 8,869 (8,870) 85,487 4,878 2,189 (12,512) (5,445) 675 61,382 6,846 8,067 (21,125) (6,212) (20,270) 60,707 31 19 (106) (56) (12) 405 118 55 (557) (384) (467) 417 – – – – – 1 1 – – 1 1 1 Securities 2,179 4,191 2 31 – 306 (2,180) (2,349) 1 2,179 L Series $ 9,374 1,181 1,365 (495) Securities 3,026 2,719 159 387 172 419 (642) (499) 2,715 3,026 L5 Series $ – – – (1) Securities 2,453 2,633 185 241 82 314 (477) (735) 2,243 2,453 L8 Series $ – – – – Securities 25 42 2 6 1 3 (6) (26) 22 25 Securities – – – – – – – – – – N Series $ 1,520 566 296 (82) N5 Series $ 1 – – – (86) (294) – – (380) (63) (1,084) – – (1,147) – – – – – – – – – – – – – – – – – – – – (27) (91) – – (118) (11) (188) – – (199) – – – – – – – – – – 2,128 380 (2,641) (133) 852 10,226 9,653 1,147 (965) 9,835 8,193 9,374 1 – – 1 1 1 3 – (2) 1 – – 1 – – 1 1 1 – – – – – – 681 118 (153) 646 824 2,344 1,088 198 (51) 1,235 954 1,520 – – – – – 1 1 – – 1 1 1 Securities 774 166 29 (206) 763 The accompanying notes are an integral part of these financial statements. 79 677 91 (73) 774 Securities – – – – – – – – – – Securities – – – – – – – – – – Securities 119 49 9 (11) 166 36 72 15 (4) 119 Securities – – – – – – – – – – MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 STATEMENTS OF CHANGES IN FINANCIAL POSITION (cont’d) For the periods ended March 31 (note 1) In thousands NET ASSETS ATTRIBUTABLE TO SECURITYHOLDERS Beginning of period Increase (decrease) in net assets from operations Distributions paid to securityholders: Investment income Capital gains Return of capital Management fee rebates Total distributions paid to securityholders Security transactions: Proceeds from securities issued Reinvested distributions Value of securities redeemed Total security transactions Total increase (decrease) in net assets End of period Increase (decrease) in fund securities (note 7): Securities outstanding – beginning of period Issued Reinvested distributions Redeemed Securities outstanding – end of period 2017 2016 D5 Series $ 43 51 6 (4) 2017 2016 D8 Series $ 171 199 25 (16) 2017 2016 QF Series $ – – 3 – 2017 2016 QF5 Series $ – – – – 2017 2016 Total $ 217,407 278,816 31,045 (17,302) – (1) (2) – (3) – (5) (2) – (7) (2) (5) (15) – (22) (1) (18) (15) – (34) – (1) – – (1) – – – – – – – – – – – – – – – (2,113) (7,215) (17) (4) (9,349) (1,636) (28,149) (17) (4) (29,806) 3 2 (1) 4 7 50 – 6 (3) 3 (8) 43 22 14 (7) 29 32 203 – 26 (4) 22 (28) 171 132 1 (3) 130 132 132 – – – – – – 1 – – 1 1 1 – – – – – – 23,861 9,324 (74,102) (40,917) (19,221) 198,186 34,961 29,764 (79,026) (14,301) (61,409) 217,407 4 – 1 (1) 4 Securities 13 11 2 – 1 2 (1) – 15 13 Securities – 13 – – 13 – – – – – Securities 4 1 – – 5 The accompanying notes are an integral part of these financial statements. Securities – – – – – – – – – – MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 STATEMENTS OF CASH FLOWS For the periods ended March 31 (note 1) In thousands Cash flows from operating activities Net increase (decrease) in net assets attributable to securityholders from operations Adjustments for: Net realized loss (gain) on investments Change in net unrealized loss (gain) on investments Purchase of investments Proceeds from sale and maturity of investments Change in dividends receivable Net cash from operating activities Cash flows from financing activities Proceeds from redeemable securities issued Payments on redemption of redeemable securities Distributions paid net of reinvestments Net cash from financing activities 2017 $ 2016 $ 31,045 (17,302) (25,440) (4,265) (214,287) 263,062 181 50,296 (46,090) 65,351 (160,559) 202,130 (141) 43,389 15,461 (65,611) (25) (50,175) 34,962 (79,126) (42) (44,206) Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Effect of exchange rate fluctuations on cash and cash equivalents Cash and cash equivalents at end of period 121 2,637 (817) 3,457 3 2,761 (3) 2,637 Cash Cash equivalents Cash and cash equivalents at end of period 744 2,017 2,761 518 2,119 2,637 Supplementary disclosures on cash flow from operating activities: Dividends received Foreign taxes paid Interest received Interest paid 4,848 238 111 2 5,311 196 24 1 The accompanying notes are an integral part of these financial statements. MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 SCHEDULE OF INVESTMENTS As at March 31, 2017 Country Sector Par Value/ No. of Shares/Units Average Cost ($ 000s) EQUITIES 3i Group PLC United Kingdom Financials 99,930 Actelion Ltd. Switzerland Health Care 6,993 Adidas AG Germany Consumer Discretionary 10,636 Advantage Oil & Gas Ltd. Canada Energy 234,826 Alimentation Couche-Tard Inc. Class B Sub. voting Canada Consumer Staples 50,820 Alphabet Inc. Class A United States Information Technology 2,037 Alphabet Inc. Class C United States Information Technology 1,524 Apple Inc. United States Information Technology 16,671 Applied Materials Inc. United States Information Technology 46,096 Aristocrat Leisure Ltd. Australia Consumer Discretionary 116,623 Ashtead Group PLC United Kingdom Industrials 45,694 ATCO Ltd. Class I non-voting Canada Utilities 25,432 Banco Bradesco SA Pfd. Brazil Financials 148,290 Bank of Montreal Canada Financials 37,170 The Bank of Nova Scotia Canada Financials 58,759 Barrick Gold Corp. Canada Materials 66,285 Best Buy Co. Inc. United States Consumer Discretionary 36,318 Brookfield Renewable Energy Partners LP Canada Utilities 53,571 Brother Industries Ltd. Japan Information Technology 77,900 CAE Inc. Canada Industrials 84,704 Canadian National Railway Co. Canada Industrials 62,630 Canadian Natural Resources Ltd. Canada Energy 104,533 Canadian Pacific Railway Ltd. Canada Industrials 9,035 Canadian Tire Corp. Ltd. Class A non-voting Canada Consumer Discretionary 10,213 Capital One Financial Corp. United States Financials 14,557 CCL Industries Inc. Class B non-voting Canada Materials 3,862 Celestica Inc. Sub. voting Canada Information Technology 65,609 CenturyLink Inc. United States Telecommunication Services 46,739 Christian Dior SE France Consumer Discretionary 10,594 Constellation Software Inc. Canada Information Technology 4,797 Crescent Point Energy Corp. Canada Energy 127,341 Detour Gold Corp. Canada Materials 68,575 Deutsche Wohnen AG Germany Real Estate 23,093 Dollarama Inc. Canada Consumer Discretionary 16,465 The Dow Chemical Co. United States Materials 27,924 Electrocomponents PLC United Kingdom Information Technology 248,449 Enerplus Corp. Canada Energy 176,135 Euronext NV Netherlands Financials 16,500 Express Scripts Holding Co. United States Health Care 31,192 Facebook Inc. United States Information Technology 5,893 Faes Farma SA Spain Health Care 29,686 First Quantum Minerals Ltd. Canada Materials 224,122 Fuchs Petrolub SE Germany Materials 26,760 Genworth MI Canada Inc. Canada Financials 32,271 Gilead Sciences Inc. United States Health Care 21,750 Goldcorp Inc. Canada Materials 44,564 Industrial Alliance Insurance and Financial Services Inc. Canada Financials 30,464 Ivanhoe Mines Ltd. Canada Materials 391,796 JPMorgan Chase & Co. United States Financials 19,522 1,106 2,416 2,353 1,724 1,677 1,097 632 2,348 1,903 2,070 875 1,178 995 2,967 2,470 1,379 1,901 2,111 1,796 1,555 1,944 3,493 1,706 1,560 1,405 898 951 1,753 2,984 3,114 1,972 1,892 957 1,601 1,819 1,961 1,556 957 2,960 843 117 2,003 1,658 972 2,703 1,077 1,484 955 1,895 Fair Value ($ 000s) 1,248 2,622 2,692 2,062 3,053 2,298 1,682 3,187 2,386 2,130 1,259 1,315 2,043 3,692 4,571 1,674 2,375 2,111 2,164 1,721 6,148 4,551 1,765 1,613 1,678 1,121 1,269 1,466 3,276 3,135 1,830 1,045 1,012 1,815 2,361 1,960 1,886 958 2,735 1,114 141 3,167 1,737 1,187 1,966 865 1,756 1,818 2,282 MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 SCHEDULE OF INVESTMENTS (cont’d) As at March 31, 2017 Country Sector Par Value/ No. of Shares/Units Average Cost ($ 000s) Fair Value ($ 000s) EQUITIES (cont’d) Lear Corp. United States Consumer Discretionary 12,710 2,366 2,394 Loblaw Companies Ltd. Canada Consumer Staples 27,646 1,582 1,995 Manulife Financial Corp. Canada Financials 134,085 2,968 3,163 Naver Corp. South Korea Information Technology 1,201 961 1,223 Onex Corp. Sub. voting Canada Financials 35,572 3,200 3,395 Open Text Corp. Canada Information Technology 67,053 2,696 3,031 Packaging Corp. of America United States Materials 13,530 1,199 1,649 PDL BioPharma Inc. United States Health Care 402,500 2,676 1,216 Pier 1 Imports Inc. United States Consumer Discretionary 121,673 1,433 1,159 The Procter & Gamble Co. United States Consumer Staples 20,335 2,378 2,431 Prudential Financial Inc. United States Financials 19,792 2,253 2,809 QEP Resources Inc. United States Energy 75,133 1,511 1,271 Quanta Services Inc. United States Industrials 39,253 1,492 1,938 Recordati SPA Italy Health Care 36,247 1,190 1,635 Restaurant Brands International Inc. Canada Consumer Discretionary 35,282 2,581 2,614 Royal Bank of Canada Canada Financials 71,455 3,945 6,923 Samsung Electronics Co. Ltd. South Korea Information Technology 1,090 1,646 2,674 Saputo Inc. Canada Consumer Staples 41,605 1,313 1,909 Sharp Corp. Japan Consumer Discretionary 634,200 2,454 3,561 Sun Life Financial Inc. Canada Financials 77,499 3,660 3,763 Tencent Holdings Ltd. China Information Technology 32,200 932 1,228 Thomson Reuters Corp. United States Financials 30,728 1,720 1,767 Toromont Industries Ltd. Canada Industrials 43,335 1,937 2,016 The Toronto-Dominion Bank Canada Financials 126,482 7,083 8,426 TransAlta Renewables Inc. Canada Utilities 69,510 1,036 1,095 TransCanada Corp. Canada Energy 21,837 1,123 1,340 Transcontinental Inc. Class A Sub. voting Canada Industrials 80,218 1,597 1,972 Turquoise Hill Resources Ltd. Canada Materials 357,681 1,634 1,452 United Continental Holdings Inc. United States Industrials 21,644 2,107 2,034 United Rentals Inc. United States Industrials 14,852 1,703 2,471 Valener Inc. Canada Utilities 40,551 912 886 VMware Inc. Class A United States Information Technology 23,213 2,597 2,846 Wabash National Corp. United States Industrials 92,003 2,567 2,533 Western Forest Products Inc. Canada Materials 882,568 2,020 1,915 Westshore Terminals Investment Corp. Canada Industrials 101,548 2,188 2,687 Whitecap Resources Inc. Canada Energy 128,720 1,438 1,332 Whiting Petroleum Corp. United States Energy 115,578 2,613 1,455 The Williams Companies Inc. United States Energy 63,221 1,360 2,489 WPP PLC United Kingdom Consumer Discretionary 34,946 1,001 1,021 Total equities 164,815 195,660 Transaction costs Total investments (244) 164,571 – 195,660 Derivative instruments (see schedule of derivative instruments) (329) Cash and cash equivalents 2,761 Other assets less liabilities 94 Total net assets 198,186 MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 SUMMARY OF INVESTMENT PORTFOLIO March 31, 2017 March 31, 2016 Portfolio Allocation Equities Cash and short-term investments Other assets (liabilities) % of NAV 98.8 1.4 (0.2) Portfolio Allocation Equities Cash and short-term investments Other assets (liabilities) % of NAV 97.9 1.2 0.9 Regional Allocation Canada United States Other Japan United Kingdom Germany South Korea Cash and short-term investments Other assets (liabilities) % of NAV 53.0 28.3 7.1 2.9 2.8 2.7 2.0 1.4 (0.2) Regional Allocation Canada United States Other Japan United Kingdom Brazil Cash and short-term investments Other assets (liabilities) % of NAV 55.0 25.0 7.2 5.9 3.3 1.5 1.2 0.9 Sector Allocation Financials Information technology Industrials Consumer discretionary Materials Energy Health care Consumer staples Utilities Cash and short-term investments Other Other assets (liabilities) % of NAV 25.2 15.3 13.4 12.4 9.5 9.2 5.2 4.7 2.7 1.4 1.2 (0.2) Sector Allocation Financials Energy Information technology Industrials Consumer discretionary Consumer staples Materials Health care Telecommunication services Cash and short-term investments Other assets (liabilities) % of NAV 29.9 13.2 11.6 10.1 9.5 9.2 7.0 5.1 2.3 1.2 0.9 MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 SCHEDULE OF DERIVATIVE INSTRUMENTS As at March 31, 2017 Schedule of Forward Currency Contracts Counterparty Credit Rating AA AA AA AA AA AA AA AA Unrealized Gains AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA Unrealized (Losses) Bought ($ 000s) 4,725 British pound 3,000 U.S. dollar 23,200 Mexican peso 5,298 Canadian dollar 2,238 Canadian dollar 2,540 Canadian dollar 900 U.S. dollar 2,542 Canadian dollar 781 79 3,994 665 1,900 733 797 6,826 2,484 3,929 4,900 829 567 698 91 81 1,230 1,065 267 2,487 1,680 550 1,990 643 1,889 175,000 184 175,000 Canadian dollar Canadian dollar Canadian dollar Canadian dollar Hong Kong dollar Canadian dollar Canadian dollar Canadian dollar Canadian dollar Canadian dollar Hong Kong dollar Canadian dollar Canadian dollar Canadian dollar Canadian dollar Canadian dollar Canadian dollar Canadian dollar Canadian dollar Canadian dollar Euro U.S. dollar Canadian dollar Canadian dollar Canadian dollar Japanese yen Canadian dollar Japanese yen Sold ($ 000s) (7,721) Canadian dollar (3,948) Canadian dollar (1,464) Canadian dollar (3,675) Euro (1,675) U.S. dollar (1,763) Euro (1,194) Canadian dollar (1,763) Euro (67,800) (6,910) (2,400) (400) (329) (4,350) (485) (4,240) (1,500) (3,000) (850) (4,900) (47,800) (60,000) (1,500) (1,315) (20,385) (926,500) (225,000) (1,500) (2,422) (732) (4,790) (550,000) (1,626,000) (2,115) (15,500) (2,115) Japanese yen Japanese yen British pound British pound Canadian dollar Hong Kong dollar British pound British pound British pound U.S. dollar Canadian dollar Hong Kong dollar Japanese yen Japanese yen Mexican peso Mexican peso Mexican peso South Korean won South Korean won British pound Canadian dollar Canadian dollar Brazilian real South Korean won South Korean won Canadian dollar Japanese yen Canadian dollar Settlement Date Apr. 26, 2017 May 5, 2017 May 12, 2017 May 12, 2017 May 12, 2017 Jun. 30, 2017 Jul. 14, 2017 Jul. 14, 2017 Contract Cost ($ 000s) 7,721 3,948 1,464 (5,298) (2,238) (2,540) 1,194 (2,542) Current Fair Value ($ 000s) 7,876 3,987 1,636 (5,221) (2,226) (2,509) 1,195 (2,510) Apr. 5, 2017 Apr. 5, 2017 Apr. 21, 2017 Apr. 21, 2017 Apr. 26, 2017 Apr. 26, 2017 Apr. 26, 2017 Apr. 26, 2017 Apr. 26, 2017 May 5, 2017 May 10, 2017 May 10, 2017 May 10, 2017 May 10, 2017 May 12, 2017 May 12, 2017 May 12, 2017 May 12, 2017 May 12, 2017 May 17, 2017 Jun. 9, 2017 Jun. 16, 2017 Jun. 23, 2017 Jun. 23, 2017 Jun. 23, 2017 Jul. 12, 2017 Jul. 12, 2017 Jul. 26, 2017 (781) (79) (3,994) (665) 329 (733) (797) (6,826) (2,484) (3,929) 850 (829) (567) (698) (91) (81) (1,230) (1,065) (267) (2,487) 2,422 732 (1,990) (643) (1,889) 2,115 (184) 2,115 (810) (83) (4,000) (667) 325 (744) (808) (7,066) (2,500) (3,988) 839 (839) (572) (717) (106) (93) (1,438) (1,103) (267) (2,501) 2,389 730 (1,993) (655) (1,936) 2,096 (185) 2,098 Unrealized Gains (Losses) ($ 000s) 155 39 172 77 12 31 1 32 519 (29) (4) (6) (2) (4) (11) (11) (240) (16) (59) (11) (10) (5) (19) (15) (12) (208) (38) (14) (33) (2) (3) (12) (47) (19) (1) (17) (848) Total forward currency contracts (329) Total derivative instruments at fair value (329) MACKENZIE CANADIAN LARGE CAP GROWTH FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 CANADIAN EQUITY FUND NOTES TO FINANCIAL STATEMENTS 1. Fiscal Periods and General Information The information provided in these financial statements and notes thereto is for the periods ended or as at March 31, 2017 and 2016, as applicable. In the year a Fund or series is established or reinstated, ‘period’ represents the period from inception or reinstatement to the period end of that fiscal year. Refer to Note 9 for the formation date of the Fund and the inception date of each series. The Fund is organized as an open-ended mutual fund trust established under the laws of the Province of Ontario pursuant to a Declaration of Trust as amended and restated from time to time. The address of the Fund’s registered office is 180 Queen Street West, Toronto, Ontario, Canada. The Fund is authorized to issue an unlimited number of units (referred to as “security” or “securities”) of multiple series. Series of the Fund are available for sale under Simplified Prospectus or exempt distribution options. Mackenzie Financial Corporation (“Mackenzie”) is the manager of the Fund and is wholly owned by IGM Financial Inc., a subsidiary of Power Financial Corporation, which itself is a subsidiary of Power Corporation of Canada. The Great-West Life Assurance Company, London Life Insurance Company and The Canada Life Assurance Company (collectively, the “Related Insurance Companies”) are wholly owned by Great-West Lifeco Inc., which is also a subsidiary of Power Financial Corporation. Investments in companies within the Power Group of companies held by the Fund are identified in the Schedule of Investments. 2. Basis of Preparation and Presentation These audited annual financial statements (“financial statements”) have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). A summary of the Fund’s significant accounting policies under IFRS is presented in Note 3. These financial statements are presented in Canadian dollars, which is the Fund’s functional and presentation currency, and rounded to the nearest thousand unless otherwise indicated. These financial statements are prepared on a going concern basis using the historical cost basis, except for financial assets and liabilities that have been measured at fair value. These financial statements were authorized for issue by the Board of Directors on June 6, 2017. Standards issued but not yet effective for the current accounting year, as applicable, are described in Note 3. 3. Significant Accounting Policies (a) Financial instruments Financial instruments include financial assets and liabilities such as debt and equity securities, open-ended investment funds and derivatives. The Fund classifies and measures financial instruments in accordance with IFRS 9 Financial Instruments (as issued in 2014) (“IFRS 9”). Upon initial recognition, financial instruments are classified as fair value through profit or loss (“FVTPL”). All financial instruments are recognized in the Statement of Financial Position when the Fund becomes a party to the contractual requirements of the instrument. Financial instruments are derecognized when the right to receive cash flows from the instrument has expired or the Fund has transferred substantially all risks and rewards of ownership. As such, investment purchase and sale transactions are recorded as of the trade date. Financial instruments are subsequently measured at FVTPL with changes in fair value recognized in the Statement of Comprehensive Income – Net unrealized gain (loss). The Fund’s redeemable securities contain multiple dissimilar contractual obligations and therefore meet the criteria for classification as financial liabilities under IAS 32 Financial Instruments: Presentation. The Fund’s obligation for net assets attributable to securityholders is presented at the redemption amount. Realized and unrealized gains and losses on investments are calculated based on average cost of investments and exclude commissions and other portfolio transaction costs, which are separately reported in the Statement of Comprehensive Income – Commissions and other portfolio transaction costs. Gains and losses arising from changes in the fair value of the investments are included in the Statement of Comprehensive Income for the period in which they arise. The Fund accounts for its holdings in unlisted open-ended investment funds, if any, at fair value through profit and loss. Mackenzie has concluded that any unlisted open-ended investment fund in which the Fund invests, does not meet either the definition of structured entities or the definition of an associate. MACKENZIE CANADIAN LARGE CAP GROWTH FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 CANADIAN EQUITY FUND NOTES TO FINANCIAL STATEMENTS 3. Significant Accounting Policies (cont’d) (b) Fair value measurement Fair value is defined as 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. Investments listed on a public securities exchange or traded on an over-the-counter market are valued on the basis of the last traded market price or close price recorded by the security exchange on which the security is principally traded, where this price falls within the quoted bid-ask spread for the investment. In circumstances where this price is not within the bid-ask spread, Mackenzie determines the point within the bid-ask spread that is most representative of fair value based on the specific facts and circumstances. Mutual fund securities of an underlying fund are valued on a business day at the price calculated by the manager of such underlying fund in accordance with the constating documents of such underlying fund. Unlisted or non-exchange traded investments, or investments where a last sale or close price is unavailable or investments for which market quotations are, in Mackenzie’s opinion, inaccurate, unreliable, or not reflective of all available material information, are valued at their fair value as determined by Mackenzie using appropriate and accepted industry valuation techniques including valuation models. The fair value determined using valuation models requires the use of inputs and assumptions based on observable market data including volatility and other applicable rates or prices. In limited circumstances, the fair value may be determined using valuation techniques that are not supported by observable market data. The cost of investments is determined on a weighted average cost basis. Cash and cash equivalents which includes cash on deposit with financial institutions and short term investments that are readily convertible to cash, are subject to an insignificant risk of changes in value, and are used by the Fund in the management of short-term commitments. Cash and cash equivalents are reported at fair value which closely approximates their amortized cost due to their nature of being highly liquid and having short terms to maturity. Bank overdraft positions are presented under current liabilities as bank indebtedness in the Statement of Financial Position. The Fund may use derivatives (such as written options, futures, forward contracts, swaps or customized derivatives) to hedge against losses caused by changes in securities prices, interest rates or exchange rates. The Fund may also use derivatives for non-hedging purposes in order to invest indirectly in securities or financial markets, to gain exposure to other currencies, to seek to generate additional income, and/or for any other purpose considered appropriate by the Fund’s portfolio manager(s), provided that the use of the derivative is consistent with the Fund’s investment objectives. Any use of derivatives will comply with Canadian mutual fund laws, subject to the regulatory exemptions granted to the Fund, as applicable. Refer to “Exemptions from National Instrument 81-102” in the Annual Information Form of the Fund for further details, including the complete conditions of these exemptions, as applicable. Valuations of derivative instruments are carried out daily, using normal exchange reporting sources for exchange-traded derivatives and specific broker enquiry for over-the-counter derivatives. The value of forward contracts is the gain or loss that would be realized if, on the valuation date, the positions were to be closed out. The change in value of forward contracts is included in the Statement of Comprehensive Income – Other changes in fair value of investments – Net unrealized gain (loss). The value of futures contracts or swaps fluctuates daily, and cash settlements made daily, where applicable, by the Fund are equal to the unrealized gains or losses on a “mark to market” basis. These unrealized gains or losses are recorded and reported as such until the Fund closes out the contract or the contract expires. Margin paid or deposited in respect of futures contracts or swaps is reflected as a receivable in the Statement of Financial Position – Margin on futures contracts or swaps. Any change in the variation margin requirement is settled daily. Premiums received from writing options are included in the Statement of Financial Position as a liability and subsequently adjusted daily to fair value. If a written option expires unexercised, the premium received is recognized as a realized gain. If a written call option is exercised, the difference between the proceeds of the sale plus the value of the premium, and the cost of the security is recognized as a realized gain or loss. If a written put option is exercised, the cost of the security acquired is the exercise price of the option less the premium received. Refer to the Schedule of Derivative Instruments and Schedule of Options Purchased/Written, as applicable, included in the Schedule of Investments for a listing of derivative and options positions as at March 31, 2017. (c) Income recognition Interest income from interest bearing investments is recognized using the effective interest method. Dividends are accrued as of the ex-dividend date. Realized gains or losses on the sale of investments, including foreign exchange gains or losses on such investments, are calculated on an average cost basis. Distributions received from an underlying fund are included in interest income, dividend income or realized gains (losses) on sale of investments, as appropriate. Income, realized gains (losses) and unrealized gains (losses) are allocated daily among the series on a pro-rata basis. MACKENZIE CANADIAN LARGE CAP GROWTH FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 CANADIAN EQUITY FUND NOTES TO FINANCIAL STATEMENTS 3. Significant Accounting Policies (cont’d) (d) Commissions and other portfolio transaction costs Commissions and other portfolio transaction costs are costs incurred to acquire, issue or dispose of financial assets or liabilities. They include fees and commissions paid to agents, advisers, brokers and dealers. (e) Securities lending, repurchase and reverse repurchase transactions The Fund is permitted to enter into securities lending, repurchase and reverse repurchase transactions as set out in the Fund’s Simplified Prospectus. These transactions involve the temporary exchange of securities for collateral with a commitment to redeliver the same securities on a future date. Securities lending transactions are administered by Canadian Imperial Bank of Commerce (the “Securities Lending Agent”). The value of cash or securities held as collateral must be at least 102% of the fair value of the securities loaned, sold or purchased. Income is earned from these transactions in the form of fees paid by the counterparty and, in certain circumstances, interest paid on cash or securities held as collateral. Income earned from these transactions is included in the Statement of Comprehensive Income – Securities lending income and recognized when earned. Note 9 summarizes the details of securities loaned and collateral received, as well as a reconciliation of securities lending income, if applicable. (f)Offsetting Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position only when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. In the normal course of business, the Fund enters into various master netting agreements or similar agreements that do not meet the criteria for offsetting in the Statement of Financial Position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or termination of the contracts. Note 9 summarizes the details of such offsetting, if applicable. Income and expenses are not offset in the Statement of Comprehensive Income unless required or permitted to by an accounting standard, as specifically disclosed in the IFRS policies of the Fund. (g) Foreign currency The functional and presentation currency of the Fund is Canadian dollars. Foreign currency purchases and sales of investments and foreign currency dividend and interest income and expenses are translated to Canadian dollars at the rate of exchange prevailing at the time of the transactions. Foreign exchange gains (losses) on purchases and sales of foreign currencies are included in the Statement of Comprehensive Income – Net realized gain (loss). The fair value of investments and other assets and liabilities, denominated in foreign currencies, are translated to Canadian dollars at the rate of exchange prevailing on each business day. (h) Net assets attributable to securityholders per security Net assets attributable to securityholders per security is computed by dividing the net assets attributable to securityholders of a series of securities on a business day by the total number of securities of the series outstanding on that day. (i) Net asset value per security The daily Net Asset Value (“NAV”) of an investment fund may be calculated without reference to IFRS as per the Canadian Securities Administrators’ (“CSA”) regulations. The difference between NAV and Net assets attributable to securityholders (as reported in the financial statements), if any, is mainly due to differences in fair value of investments and other financial assets and liabilities. Refer to Note 9 for the Fund’s NAV per security. (j) Increase (decrease) in net assets attributable to securityholders from operations per security Increase (decrease) in net assets attributable to securityholders from operations per security in the Statement of Comprehensive Income represents the increase (decrease) in net assets attributable to securityholders from operations for the period, divided by the weighted average number of securities outstanding during the period. (k)Mergers The Fund applies the acquisition method of accounting for Fund mergers. Under this method, one of the Funds in each merger is identified as the acquiring Fund, and is referred to as the Continuing Fund, and the other Fund involved in the merger is referred to as the Terminated Fund. This identification is based on the comparison of the relative net asset values of the Funds as well as consideration of the continuation of such aspects of the Continuing Fund as: investment advisors; investment objectives and practices; type of portfolio securities; and management fees and expenses. (l) IASB Disclosure Initiative Amendments to IAS 1 Presentation of Financial Statements became effective for annual periods beginning on or after January 1, 2016. Mackenzie has determined there are no implications to the Fund’s financial statements arising from the amendments. MACKENZIE CANADIAN LARGE CAP GROWTH FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 CANADIAN EQUITY FUND NOTES TO FINANCIAL STATEMENTS 4. Critical Accounting Estimates and Judgments The preparation of these financial statements requires management to make estimates and assumptions that primarily affect the valuation of investments. Estimates and assumptions are reviewed on an ongoing basis. Actual results may differ from these estimates. Use of Estimates Fair value of securities not quoted in an active market The Fund may hold financial instruments that are not quoted in active markets and are valued using valuation techniques that make use of observable data, to the extent practicable. Various valuation techniques are utilized, depending on a number of factors, including comparison with similar instruments for which observable market prices exist and recent arm’s length market transactions. Key inputs and assumptions used are company specific and may include estimated discount rates and expected price volatilities. Changes in key inputs, could affect the reported fair value of these financial instruments held by the Fund. Use of Judgments Classification and measurement of investments and application of the fair value option In classifying and measuring financial instruments held by the Fund, Mackenzie is required to make significant judgments in order to determine the most appropriate classification in accordance with IFRS 9. Mackenzie has assessed the Fund’s business model, the manner in which all financial instruments are managed and performance evaluated as a group on a fair value basis, and concluded that FVTPL in accordance with IFRS 9 provides the most appropriate measurement and presentation of the Fund’s financial instruments. Functional currency The Fund’s functional and presentation currency is the Canadian dollar, which is the currency considered to best represent the economic effects of the Fund’s underlying transactions, events and conditions taking into consideration the manner in which securities are issued and redeemed and how returns and performance by the Fund are measured. Structured entities and associates In determining whether unlisted open-ended investment funds in which the Fund invests, but that it does not consolidate, meets the definitions of either a structured entity or of an associate, Mackenzie is required to make significant judgments about whether these underlying funds have the typical characteristics of a structured entity or of an associate. Mackenzie has assessed the characteristics of these underlying funds and has concluded that they do not meet the definition of either a structured entity or of an associate because the Fund does not have contracts or financing arrangements with these underlying funds and the Fund does not have an ability to influence the activities of these underlying funds or the returns it receives from investing in these underlying funds. 5. Income Taxes The Fund qualifies as a mutual fund trust under the provisions of the Income Tax Act (Canada) and, accordingly, is subject to tax on its income including net realized capital gains in the taxation year, which is not paid or payable to its securityholders as at the end of the taxation year. It is the intention of the Fund to distribute all of its net income and sufficient net realized capital gains so that the Fund will not be subject to income taxes. Losses of the Fund cannot be allocated to investors and are retained in the Fund for use in future years. Non-capital losses may be carried forward up to 20 years to reduce taxable income and realized capital gains of future years. Capital losses may be carried forward indefinitely to reduce future realized capital gains. Refer to Note 9 for the Fund’s loss carryforwards. 6. Management Fees and Operating Expenses Mackenzie is paid a management fee for managing the investment portfolio, providing investment analysis and recommendations, making investment decisions, making brokerage arrangements relating to the purchase and sale of the investment portfolio and making arrangements with registered dealers for the purchase and sale of securities of the Fund by investors. The management fee is calculated on each series of securities of the Fund as a fixed annual percentage of the daily net asset value of the series. Each series of the Fund, except B-Series, is charged a fixed rate annual administration fee (“Administration Fee”) and in return, Mackenzie bears all of the operating expenses of the Fund, other than certain specified fund costs. The Administration Fee is calculated on each series of securities of the Fund as a fixed annual percentage of the daily net asset value of the series. Other fund costs include taxes (including, but not limited to GST/HST and income tax), interest and borrowing costs, all fees and expenses of the Mackenzie Funds’ Independent Review Committee (IRC), costs of complying with the regulatory requirement to produce Fund Facts, fees paid to external service providers associated with tax reclaims, refunds or the preparation of foreign tax reports on behalf of the Funds, new fees related to external services that were not commonly charged in the Canadian mutual fund industry and introduced after September 29, 2016, and the costs of complying with any new regulatory requirements, including, without limitation, any new fees introduced after September 29, 2016. MACKENZIE CANADIAN LARGE CAP GROWTH FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 CANADIAN EQUITY FUND NOTES TO FINANCIAL STATEMENTS 6. Management Fees and Operating Expenses (cont’d) All expenses relating to the operation of the Fund attributable to B-Series securities will be charged to that particular series. Operating expenses include legal, audit, transfer agent, custodian, administration and trustee services, cost of financial reporting and Simplified Prospectus printing, regulatory filing fees and other miscellaneous expenses specifically attributable to the B-Series securities and any applicable taxes. Mackenzie may waive or absorb management fees and/or Administration Fees at its discretion and stop waiving or absorbing such fees at any time without notice. Refer to Note 9 for the management fee and Administration Fee rates charged to each series of securities. 7. Fund’s Capital The capital of the Fund, which is comprised of the net assets attributable to securityholders, is divided into different series with each series having an unlimited number of securities. The securities outstanding for the Fund as at March 31, 2017 and 2016 and securities issued, reinvested and redeemed for the periods are presented in the Statement of Changes in Financial Position. Mackenzie manages the capital of the Fund in accordance with the investment objectives as discussed in Note 9. 8. Financial Instruments Risk i. Risk exposure and management The Fund’s investment activities expose it to a variety of financial risks, as defined in IFRS 7 Financial Instruments: Disclosures (“IFRS 7”). The Fund’s exposure to financial risks is concentrated in its investments, which are presented in the Schedule of Investments, as at March 31, 2017, grouped by asset type, with geographic and sector information. Mackenzie seeks to minimize potential adverse effects of financial risks on the Fund’s performance by employing professional, experienced portfolio advisors, by monitoring the Fund’s positions and market events daily, by diversifying the investment portfolio within the constraints of the Fund’s investment objectives, and where applicable, by using derivatives to hedge certain risk exposures. To assist in managing risks, Mackenzie also maintains a governance structure that oversees the Fund’s investment activities and monitors compliance with the Fund’s stated investment strategy, internal guidelines, and securities regulations. ii. Liquidity risk Liquidity risk arises when the Fund encounters difficulty in meeting its financial obligations as they come due. The Fund is exposed to liquidity risk due to potential daily cash redemptions of redeemable securities. In accordance with securities regulations, the Fund must maintain at least 90% of its assets in liquid investments (i.e., investments that can be readily sold). In addition, the Fund retains sufficient cash and short-term investment positions to maintain adequate liquidity. The Fund also has the ability to borrow up to 5% of its net assets for the purposes of funding redemptions. iii. Currency risk Currency risk arises when the fair value of financial instruments that are denominated in a currency other than the Canadian dollar, which is the Fund’s reporting currency, fluctuates due to changes in exchange rates. Note 9 summarizes the Fund’s exposure, if applicable and significant, to currency risk. iv. Interest rate risk Interest rate risk arises when the fair value of interest-bearing financial instruments fluctuates due to changes in the prevailing levels of market interest rates. Cash and cash equivalents do not expose the Fund to significant amounts of interest rate risk. Note 9 summarizes the Fund’s exposure, if applicable and significant, to interest rate risk. v. Other price risk Other price risk is the risk that the value of financial instruments 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, its issuer, or all factors affecting all instruments traded in a market or market segment. All investments present a risk of loss of capital. This risk is managed through a careful selection of investments and other financial instruments within the parameters of the investment strategies. Except for certain derivative contracts, the maximum risk resulting from financial instruments is equivalent to their fair value. The maximum risk of loss on certain derivative contracts such as forwards, swaps, and futures contracts is equal to their notional values. In the case of written call (put) options and short futures contracts, the loss to the Fund continues to increase, without limit, as the fair value of the underlying interest increases (decreases). However, these instruments are generally used within the overall investment management process to manage the risk from the underlying investments and do not typically increase the overall risk of loss to the Fund. This risk is mitigated by ensuring that the Fund holds a combination of the underlying interest, cash cover and/or margin that is equal to or greater than the value of the derivative contract. Note 9 summarizes the Fund’s exposure, if applicable and significant, to other price risk. MACKENZIE CANADIAN LARGE CAP GROWTH FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 CANADIAN EQUITY FUND NOTES TO FINANCIAL STATEMENTS 8. Financial Instruments Risk (cont’d) vi. 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 Fund. Note 9 summarizes the Fund’s exposure, if applicable and significant, to credit risk. All transactions in listed securities are executed with approved brokers. To minimize the possibility of settlement default, securities are exchanged for payment simultaneously, where market practices permit, through the facilities of a central depository and/or clearing agency where customary. The carrying amount of investments and other assets represents the maximum credit risk exposure as at the date of the Statement of Financial Position. The Fund may enter into securities lending transactions with counterparties and it may also be exposed to credit risk from the counterparties to the derivative instruments it may use. Credit risk associated with these transactions is considered minimal as all counterparties have a designated rating equivalent to a Standard & Poor’s credit rating of not less than A-1 (low) on their short-term debt and of A on their long-term debt, as applicable. vii. Underlying funds The Fund may invest in underlying funds and may be indirectly exposed to currency risk, interest rate risk, other price risk and credit risk from fluctuations in the value of financial instruments held by the underlying funds. Note 9 summarizes the Fund’s exposure, if applicable and significant, to these risks from underlying funds. MACKENZIE CANADIAN LARGE CAP GROWTH FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 CANADIAN EQUITY FUND NOTES TO FINANCIAL STATEMENTS 9. Fund Specific Information (in ’000s, except for (a)) (a) Fund Formation and Series Information Date of Formation December 29, 1995 The Fund may issue an unlimited number of securities of each series. The number of issued and outstanding securities of each series is disclosed in the Statements of Changes in Financial Position. Series Offered by Mackenzie Financial Corporation (180 Queen Street West, Toronto, Ontario, M5V 3K1; 1-800-387-0614; www.mackenzieinvestments.com) Series A securities are offered to retail investors investing a minimum of $500. Series D securities are offered to retail investors investing a minimum of $500 through a discount brokerage or other account approved by Mackenzie. Series F securities are offered to investors who are enrolled in a dealer-sponsored fee-for-service or wrap program, who are subject to an assetbased fee rather than commissions on each transaction and who invest at least $500; they are also available to employees of Mackenzie and its subsidiaries, and directors of Mackenzie. Series FB securities are offered to retail investors investing a minimum of $500. Investors are required to negotiate their advisor service fee, which cannot exceed 1.50%, with their financial advisor. Series G securities are offered to retail investors investing a minimum of $500 who are members of a group RRSP, DPSP, TFSA or pension plan. Series I securities are offered to retail investors investing a minimum of $500 in a qualified group plan with a minimum of $20,000,000 in assets, or investors investing a minimum of $500,000 who participate in the Portfolio Architecture Service or Open Architecture Service. Series O securities are offered to investors investing a minimum of $500,000 who have entered into a Series O account agreement with Mackenzie, and also available to certain qualifying employees of Mackenzie and its subsidiaries. Series PW securities are offered through our Private Wealth Solutions to certain high net worth investors who invest a minimum of $100,000. Series PWF securities are offered through our Private Wealth Solutions to certain high net worth investors who are enrolled in a dealer-sponsored fee‑for‑service or wrap program, who are subject to an asset-based fee rather than commissions on each transaction and who invest at least $100,000. Series PWFB securities are offered through our Private Wealth Solutions to certain high net worth investors who invest a minimum of $100,000. Investors are required to negotiate their advisor service fee, which cannot exceed 1.50%, with their financial advisor. Series PWX securities are offered through our Private Wealth Solutions to certain high net worth investors who invest a minimum of $100,000. Investors are required to negotiate their advisor service fee, which cannot exceed 1.50%, with their financial advisor. Series R securities are offered only to other affiliated funds and certain institutional investors in connection with fund-of-fund arrangements. Series S securities are offered to the Related Insurance Companies and certain other mutual funds, but may be sold to other investors as determined by Mackenzie. Series Distributed by Quadrus Investment Services Ltd. (255 Dufferin Ave., London, Ontario, N6A 4K1; 1-888-532-3322; www.quadrusgroupoffunds.com) Quadrus Investment Services Ltd. (“Quadrus”) is the principal distributor of the series of securities listed below: Quadrus Series, D5 Series and D8 Series securities are offered to investors investing a minimum of $500. Investors in D5 Series and D8 Series securities also want to receive a regular monthly cash flow of 5% or 8% per year, respectively. H Series and H5 Series securities are offered to investors investing a minimum of $500, who are enrolled in a Quadrus-sponsored fee-for-service or wrap program and who are subject to an asset-based fee. Investors in H5 Series securities also want to receive a monthly cash flow of 5% per year. L Series, L5 Series and L8 Series securities are offered to investors investing a minimum of $100,000 and who have eligible minimum total holdings of $500,000. Investors in L5 Series and L8 Series securities also want to receive a regular monthly cash flow of 5% or 8% per year, respectively. N Series and N5 Series securities are offered to investors investing a minimum of $100,000, who have eligible minimum total holdings of $500,000, and who have entered into an N type series account agreement with Mackenzie and Quadrus. Investors in N5 Series securities also want to receive a regular monthly cash flow of 5% per year. QF Series and QF5 Series securities are offered to retail investors investing a minimum of $500. Investors are required to negotiate their advisor service fee, which cannot exceed 1.25%, with their financial advisor. Investors in QF5 Series securities also want to receive a monthly cash flow of 5% per year. MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 NOTES TO FINANCIAL STATEMENTS 9. Fund Specific Information (in ’000s, except for (a)) (cont’d) (a) Fund Formation and Series Information (cont’d) An investor in the Fund may choose among different purchase options that are available under each series. These purchase options are a sales charge purchase option, a redemption charge purchase option, various low-load purchase options and a no-load purchase option. The charges under the sales charge purchase option are negotiated by investors with their dealers. The charges under the redemption charge and low-load purchase options are paid to Mackenzie if an investor redeems securities of the Fund during specific periods. Not all purchase options are available under each series of the Fund, and the charges for each purchase option may vary among the different series. For further details on these purchase options, please refer to the Fund’s Simplified Prospectus and Fund Facts. Net Asset Value per Security ($) Mar. 31, 2017 Mar. 31, 2016 Series Inception/ Reinstatement Date Management Fees Administration Fees Series A December 29, 1995 2.00% 0.24% 27.50 24.87 Series D March 19, 2014 1.25% 0.19% 10.23 9.25 Series F August 20, 2002 1.00% 0.19% 21.78 19.67 Series FB October 26, 2015 1.00% 0.24% 10.39 9.38 Series G March 5, 2008 1.50% 0.24% 11.94 10.79 Series I August 11, 2005 1.35% 0.24% 14.42 13.06 Series O April 14, 2003 –* 24.68 22.10 Series PW October 9, 2014 1.85% 0.15% 10.08 9.12 Series PWF January 12, 2016 0.85% 0.15% 11.40 10.30 Series PWFB None issued 0.85% 0.15% – – Series PWX August 27, 2014 – (1) 9.56 8.63 Series R July 3, 2007 –* –* 11.37 10.28 Series S January 1, 2001 – (1) 0.025% 31.30 28.25 Quadrus Series October 30, 1970 2.00% 0.24% 27.36 24.75 H Series January 8, 2001 1.00% 0.19% 18.77 17.02 H5 Series January 15, 2016 1.00% 0.19% 16.33 15.48 L Series December 16, 2011 1.70% 0.15% 13.40 12.11 1.70% 0.15% 15.12 – 1.70% 0.15% – (2) L5 Series August 3, 2016 L8 Series July 14, 2016 N Series December 16, 2011 N5 Series January 15, 2016 D5 Series August 5, 2008 2.00% D8 Series February 18, 2009 QF Series QF5 Series * (3) – (2) 14.80 – – (1) 14.10 12.73 – (1) 16.41 15.52 0.24% 11.05 10.51 2.00% 0.24% 13.65 13.38 July 12, 2016 1.00% 0.24% 10.53 – July 12, 2016 1.00% 0.24% 15.20 – – (1) – (1) Not applicable. (1) This fee is negotiable and payable directly to Mackenzie by investors in this series. (2) This fee is payable directly to Mackenzie by investors in this series through redemptions of their securities. (3) The series’ original start date was August 17, 2015. All securities in the series were redeemed on March 2, 2016. The series was reinstated at a price of $15.00 per security on August 3, 2016. MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 NOTES TO FINANCIAL STATEMENTS 9. Fund Specific Information (in ’000s, except for (a)) (cont’d) (b) Investments by Mackenzie, Other Funds Managed by Mackenzie and Related Insurance Companies As at March 31, 2017, Mackenzie, other funds managed by Mackenzie and Related Insurance Companies had an investment of $13, $7 and $84,981 (2016 – $7, $22,391 and $85,487), respectively, in the Fund. (c) Loss Carryforwards As at the last taxation year-end, there were no capital and non-capital losses available to carry forward for tax purposes. (d) Securities Lending The value of securities loaned and collateral received from securities lending at March 31, 2017 and 2016 were as follows: March 31, 2017 ($) March 31, 2016 ($) Value of securities loaned 18,778 7,784 Value of collateral received 21,183 8,188 Collateral received is comprised of debt obligations of the Government of Canada and other countries, Canadian provincial and municipal governments and financial institutions. A reconciliation of the gross amount generated from the securities lending transactions to the security lending income to the Fund for the periods ended March 31, 2017 and 2016 is as follows: Percentage of Total Amount (%) 2017 2016 Amount ($) 2017 2016 Gross Securities Lending Income 43 74 100.0 100.0 Securities Lending Agent fees (10) (18) (23.3) (24.3) Securities Lending Income to the Fund before Withholdings Taxes 33 56 76.7 75.7 Withholding Taxes (2) – (4.7) – Net Securities Lending Income 31 56 72.0 75.7 (e)Commissions The brokerage commissions paid to certain dealers included an amount of $34 (2016 – $26) that was available for payment to third party vendors for the provision of investment decision making services. This amount represented 5.7% (2016 – 5.7%) of the total commissions and other transaction costs paid during the period. (f) Offsetting of Financial Assets and Liabilities The following table presents offsetting of financial assets and liabilities and collateral amounts that would occur if future events, such as bankruptcy or termination of contracts were to arise. No amounts were offset in the financial statements. Instruments disclosed in the table are included in the appropriate line item on the Statements of Financial Position. March 31, 2017 Gross amount of assets/liabilities ($) Amount offset ($) Margin ($) Net amount ($) Unrealized gains on derivative contracts 204 (194) – 10 Unrealized losses on derivative contracts (380) 194 – (186) – – – – (176) – – (176) Liability for options written Total As at March 31, 2016, there were no amounts subject to offsetting. MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 NOTES TO FINANCIAL STATEMENTS 9. Fund Specific Information (in ’000s, except for (a)) (cont’d) (g) Risks Associated with Financial Instruments i. Risk exposure and management The Fund seeks long-term capital growth by investing primarily in Canadian equities. The Fund uses a growth style of investing and may hold up to 49% of its assets in foreign investments. ii. Currency risk The table below indicates currencies to which the Fund had significant exposure as at period end in Canadian dollar terms, including the underlying principal amount of any derivative instruments. Other financial assets and liabilities (including accrued interest and dividends receivable, and receivables/payables for investments sold/purchased) that are denominated in foreign currencies do not expose the Fund to significant currency risk. Currency U.S. dollar March 31, 2017 Cash and Derivative Investments Short-Term Instruments ($) Investments ($) ($) Net Exposure* ($) 54,225 30 (302) 53,953 5,725 138 1,827 7,690 11,451 – (7,851) 3,600 Swiss franc 2,622 – – 2,622 Australian dollar 2,130 – – 2,130 Hong Kong dollar 1,228 – (419) 809 Brazilian real 2,043 54 (1,993) 104 Mexican peso – – (1) (1) Japanese yen Euro South Korean won 3,897 – (3,961) (64) British pound 5,488 43 (9,666) (4,135) 88,809 265 (22,366) 66,708 44.8 0.1 (11.3) 33.6 Total % of Net Assets Currency March 31, 2016 Cash and Derivative Investments Short-Term Instruments ($) Investments ($) ($) Net Exposure* ($) U.S. dollar 53,827 29 – 53,856 Japanese yen 12,896 – – 12,896 Euro 8,543 11 – 8,554 British pound 7,212 – – 7,212 Brazilian real 3,209 – – 3,209 Swiss franc 2,921 – – 2,921 Swedish krona 2,405 – – 2,405 Mexican peso Total % of Net Assets 1,878 – – 1,878 92,891 40 – 92,931 42.7 – – 42.7 * Includes both monetary and non-monetary financial instruments As at March 31, 2017, had the Canadian dollar increased or decreased by 5% relative to all foreign currencies, with all other variables held constant, net assets would have decreased or increased by approximately $3,335 or 1.7% of total net assets (2016 – $4,647 or 2.1%). In practice, the actual trading results may differ and the difference could be material. MACKENZIE CANADIAN LARGE CAP GROWTH FUND CANADIAN EQUITY FUND ANNUAL AUDITED FINANCIAL STATEMENTS | March 31, 2017 NOTES TO FINANCIAL STATEMENTS 9. Fund Specific Information (in ’000s, except for (a)) (cont’d) (g) Risks Associated with Financial Instruments (cont’d) iii. Interest rate risk As at March 31, 2017 and 2016, the Fund did not have a significant exposure to interest rate risk. iv. Other price risk The Fund’s most significant exposure to price risk arises from its investment in equity securities. As at March 31, 2017, had the prices on the respective stock exchanges for these securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $19,566 or 9.9% of total net assets (2016 – $21,271 or 9.8%). In practice, the actual trading results may differ and the difference could be material. v. Credit risk As at March 31, 2017 and 2016, the Fund did not have a significant exposure to credit risk. (h) Fair Value Classification The table below summarizes the fair value of the Fund’s financial instruments using the following fair value hierarchy: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and Level 3 – Inputs that are not based on observable market data. The inputs are considered observable if they are developed using market data, such as publicly available information about actual events or transactions, and that reflect the assumption that market participants would use when pricing the asset or liability. Equities Derivative assets Derivative liabilities Short-term investments Total Level 1 ($) 195,660 – – – 195,660 March 31, 2017 Level 2 Level 3 ($) ($) – – 519 – (848) – 2,017 – 1,688 – Total ($) 195,660 519 (848) 2,017 197,348 Level 1 ($) 212,705 – – – 212,705 March 31, 2016 Level 2 Level 3 ($) ($) – – – – – – 2,119 – 2,119 – Total ($) 212,705 – – 2,119 214,824 The Fund’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as of the date of the event or change in circumstances that caused the transfer. In accordance with the Fund’s valuation policy, the Fund applies fair value adjustment factors to the quoted market prices for non-North American equities when North American intraday stock market movements exceed pre-determined tolerances. The adjustment factors are applied in order to estimate the impact on fair values of events occurring between the close of the non-North American stock markets and the close of business for the Fund. If fair value adjustment factors are applied, non-North American equities are classified as Level 2. Consequently, during the period ended March 31, 2017, non-North American equities frequently transferred between Level 1 (unadjusted quoted market prices) and Level 2 (adjusted market prices). As at March 31, 2017, these securities were classified as Level 1 (2016 – Level 1). Financial instruments classified as level 2 investments are valued through incorporating observable market data and using standard market convention practices. Short-term investments classified as level 2 investments are valued based on amortized cost plus accrued interest which closely approximates fair value.