FERIQUE Canadian Equity Fund

C1 Contents C1 C2 SHORT-TERM-INCOME CANADIAN-BOND GLOBALLY-DIVERSIFIED-INCOME CONSERVATIVE MODERATE BALANCED GROWTH AGGRESSIVE-GROWTH CANADIAN-DIVIDEND-EQUITY CANADIAN-EQUITY AMERICAN-EQUITY EUROPEAN-EQUITY 20 ASIAN-EQUITY EMERGING-MARKETS INTERIM WORLD-DIVIDEND-EQUITY MANAGEMENT C4 REPORT of Fund Performance for the period ended June 30, 2020 EQUITY FUNDS FÉRIQUE Canadian Equity Fund This Interim Management Report of Fund Performance contains financial highlights but does not contain the complete interim or annual financial statements of the Fund. You can get a copy of the Interim Financial Statements at your request, and at no cost, by calling our Advisory Services at 514-788-6485 (toll-free 1-800-291-0337), by writing to us at Gestion FÉRIQUE, Place du Canada, 1010 de La Gauchetière Street West, Suite 1400, Montréal, Québec H3B 2N2, or by visiting our website at ferique.com or SEDAR at sedar.com. Unitholders may also contact us using one of these methods to request a copy of the Fund’s proxy voting policies and procedures, proxy voting disclosure record and quarterly portfolio disclosure. C2 There may be management fees and expenses associated with an investment in the Funds. Management expense ratios vary from one year to another. Please read the Prospectus before investing. Mutual funds are not guaranteed or covered by the Canada Deposit Insurance Corporation or another government deposit insurer. Their values fluctuate frequently and past performance may not be repeated. FÉRIQUE Funds are distributed by Services d’investissement FÉRIQUE since July 1, 2013 and used to be by National Bank Securities Inc., until June 30, 2013. A Note on Forward-looking Statements This report may contain forward-looking statements about the Funds, their future performance, strategies or prospects, and possible future Fund actions. The words “may”, “could”, “should”, “would”, “suspect”, “outlook”, “believe”, “plan”, “anticipate”, “estimate”, “expect”, “intend”, “forecast”, “objective” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance. Forward-looking statements involve inherent risks and uncertainties, both about the Funds and general economic factors, so it is possible that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement made in relation to the Funds. These factors include, but are not limited to, general economic, political and market factors in Canada, the United States and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological changes, changes in laws and regulations, judicial or regulatory judgments, legal proceedings and catastrophic events. The above list of important factors that may affect future results is not exhaustive. Before making any investment decisions, we encourage you to consider these and other factors carefully. All opinions contained in forward-looking statements are subject to change without notice and are provided in good faith but without legal responsibility. CANADIAN-EQUITY INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE FÉRIQUEFÉRIQUE Canadian Nom du EquityFonds Fund As at June 30, 2020 Management Discussion In light of this outlook, the portfolio sub-manager most significantly increased the weight of the Financials (the banking industry, of Fund Performance in particular) and Consumer Discretionary (the automotive industry, especially) sectors. CC&L added new positions in Sun Life Financial Results of Operations and Royal Bank of Canada, two Financials sector companies that will benefit from a rising rate environment, and in Magna International, The FÉRIQUE Canadian Equity Fund posted a net return of a quality auto parts supplier. -7.1% for the period ended June 30, 2020. Its benchmark, Lockdown measures pushed e-commerce a few years forward the S&P/TSX Composite Index, posted -7.5% for the same period. and the e-commerce software platform Shopify benefited greatly. Contrary to benchmark returns, which include no investment fees, They are expected to continue growing as a consequence of Fund returns are expressed net of management and operating this structural trend. Accordingly, the portfolio sub-manager increased expenses payable by the Fund. the overweight position into the company. A global transition towards 1 On a relative basis, the Fund outperformed the industry median , renewable energy is also underway. As a result, the portfolio which posted -10.0%, net of management fees for the period. sub-manager took advantage of cheap valuations during the sell-off CC&L to increase its positions in Boralex and Brookfield Renewable. Sector allocation and security selection were both drivers of portfolio Franklin Templeton performance during the period. The portfolio’s outperformance Security selection within the Information Technology and Energy stems from an overweight to top performing Information Technology sectors detracted the most from performance. This was partially sector, where investors have rewarded the resilient growth offset by strong security selection within the Industrials and Consumer characteristics of software companies. The underweight to the Discretionary sectors. Not holding the outperforming Shopify in the lagging Energy sector also added value, while security selection Information Technology sector was by far the largest detractor. In within the Financials, Real Estate and Utilities sectors also the Energy sector, Inter Pipeline and Keyera were the leading bolstered returns. detractors. Overweight positions in First Capital REIT in Real Estate In Financials, overweight positions in TMX Group and Intact Financial and ATCO in Utilities, as well as a lack of exposure to Barrick Gold Corporation were strong contributors. In Utilities, overweight in the Materials sector also significantly impeded returns. Conversely, positions in renewable energy companies Northland Power an overweight position in Wheaton Precious Metals in Materials and Boralex added value over the period. In Real Estate, and an underweight position in Suncor Energy in Energy were among the overweight position in CAPREIT was the portfolio’s top contributor. the most notable contributors to relative returns. The lack of exposure Conversely, the overweight position in energy producer Crescent to Air Canada also added value. Point was the main detractor during the period. From a sector allocation standpoint, underweights to underperforming As it became clear that the COVID-19 virus was going to have a major Financials and Energy sectors and an overweight to the outperforming impact on the global economy, the Canadian equity market Consumer Staples sector bolstered the Fund’s performance. This experienced one of its fastest sell-offs in history. Investors fled was partially counterbalanced by the portfolio’s underweights to safety and very quickly priced in a severe recession. Companies to outperforming Materials and Information Technology sectors. with strong balance sheets and good free cash flow outperformed Record-breaking volatility provided plenty of chances to rebalance more volatile, highly levered companies. the portfolio. With the broad market experiencing weakness starting Early in the second quarter, the portfolio sub-manager began to look in late February, the portfolio sub-manager pursued a greater number forward to an eventual economic recovery. Assuming that government of opportunities as extreme dislocation emerged, taking advantage shutdowns will be lifted by the end of the summer, CC&L predicts of mispricings that had become rampant at this stage of the recession to be severe but relatively short-lived and global the market cycle. economic growth to reaccelerate in the second half of 2020. With During the period, the portfolio sub-manager increased most the return to normalcy, the portfolio sub-manager expects considerably the Fund’s exposure to Materials, Consumer Staples the extraordinary amounts of liquidity injected into the global and Utilities, while reducing most significantly exposure to Financials financial system to lead to a rapid V-shaped recovery. (across banks, life insurance companies and diversified financial), The portfolio held up very well during this volatile period thanks Energy and Industrials. The cash allocation has also been increased to its high-quality positioning and outperformed its benchmark compared to last year, as the proceeds from trimming and eliminating during the first quarter of 2020. The portfolio sub-manager then positions in the portfolio have not yet been fully redeployed. endeavoured to shift the portfolio towards more cyclical companies The portfolio sub-manager introduced positions in Wheaton Precious as the outlook started to improve in the second quarter. However, Metals in Materials, Waste Connections in Industrials and Emera the sharp rally in value, small cap, cyclical stocks in June made in Utilities by eliminating holdings in Mullen Group in Industrials, the portfolio lose some of the ground it had gained over Enghouse Systems in Information Technology, Onex in Financials, its benchmark. as well as in Peyto Exploration & Development, Kelt Exploration, NuVista Energy and Inter Pipeline in Energy. INTERIM MANAGEMENT REPORT OF FUND PERFORMANCE

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