Annual Letters

Laurus Investment Counsel claims compliance with the Global Investment Performance Standards (GIPS^®) and has prepared and presented this report in compliance with the GIPS standards. Laurus Investment Counsel has not been independently verified. The performance shown above represents the Laurus US Small Cap Equity Fund and represents all of the assets under management in the strategy.

Investing in small cap funds will be more volatile and loss of principal could be greater than investing in large cap or more diversified funds. Investing in foreign securities entails special risks, such as currency fluctuations and political uncertainties. Fund holdings are subject to risks and may change at any time. A Canadian investor should consider investment objectives, risks, charges and expenses related to the pooled fund carefully before investing. To obtain additional information on charges to our Fund, which contains this and other information, call 844.430.5501. Please read the Information Memorandum carefully before investing.

Performance Methodology Key Terms: Est. 5-year EPS Growth %: Estimated percentage increase in earnings per share (EPS) per year of the fund’s holdings over the next 5 years. P/E Ratio (forward): Sum of stock prices of the fund’s holdings divided by the aggregate earnings per share of those holdings for the next 12 months. Market Cap: Weighted average market capitalization of companies held by the fund, the median is the midpoint. Portfolio Turnover: A measure of trading activity in a fund’s portfolio over the past 12 months expressed as a percentage of the fund’s average total assets. Alpha measures a fund’s risk/reward potential. A positive alpha means the fund outperformed the index. A negative alpha means the fund underperformed the index. Beta measures a fund’s sensitivity to market movements. The beta of the market is 1.00 by definition.

R-Squared measures (from 0 to 1.0) how closely a fund’s movements are correlated with movements of its benchmark. An R-squared of 1.0 would mean that the fund’s movements are completely correlated with the movements of its benchmark. Active Share measures the difference between portfolio holdings and the benchmark. Standard Deviation measures the degree to which a fund’s performance has varied from its average performance over a particular time period. The greater the standard deviation, the greater a fund’s volatility (risk). Upside Capture explains how well a fund performs in time periods where the benchmark’s returns are greater than zero. Downside Capture explains how well a fund performs in time periods where the benchmark’s returns are less than zero.

Definition of the Firm: Laurus is a privately owned investment manager registered in Canada in the Provinces of Ontario, Manitoba, Saskatchewan, Alberta, and British Columbia as an Investment Fund Manager and Portfolio Manager. It manages internal pooled funds and fully discretionary accounts primarily corporations, insurance companies, investment companies, pension and profit-sharing plans, endowments, foundations, and state or municipal entities.

The Laurus US Small Cap Equity Fund seeks long term capital appreciation by investing in a concentrated group of growth-oriented US domiciled small/mid capitalization equities (market cap less than $7 Billion at purchase). Under normal market conditions, the Portfolio will invest at least 90% of its net assets at time of purchase in US equity securities. Investment Guidelines are available upon request.