GUARDIAN CAPITAL FUNDS
SIMPLIFIED PROSPECTUS DATED APRIL 30, 2021
Guardian Canadian Bond Fund1, 3, 4 Guardian Canadian Equity Fund4 Guardian Canadian Equity Income Fund4, 5 Guardian Canadian Equity Select Fund4 Guardian Canadian Focused Equity Fund1, 3, 4 Guardian Canadian Growth Equity Fund4 Guardian Canadian Short-Term Investment Fund4, 5 Guardian Directed Equity Path Portfolio (formerly, Guardian SteadyPace Equity Fund)1, 3, 4 Guardian Directed Premium Yield Portfolio (formerly, Guardian SteadyFlow Equity Fund)1, 3, 4 Guardian Emerging Markets Equity Fund1, 3, 4 Guardian Fixed Income Select Fund4 Guardian Fundamental Global Equity Fund4, 5, 6 Guardian High Yield Bond Fund4, 5 Guardian i3 Global Dividend Growth Fund (formerly, Guardian Global Dividend Growth Fund)4, 5, 6 Guardian i3 Global Quality Growth Fund (formerly, Guardian Global Equity Fund)1, 3, 4 Guardian i3 International Quality Growth Fund (formerly, Guardian International Equity Fund)1, 3, 4 Guardian International Equity Select Fund4 Guardian Investment Grade Corporate Bond Fund1, 3, 4 Guardian Managed Balanced Portfolio (formerly, Guardian Balanced Fund)4, 5 Guardian Managed Growth Portfolio4, 5 Guardian Managed Income & Growth Portfolio2, 3, 4 Guardian Managed Income Portfolio2, 3, 4 Guardian Risk Managed Conservative Portfolio3, 4, 5 Guardian Short Duration Bond Fund1, 3, 4 Guardian U.S. Equity All Cap Growth Fund4 Guardian U.S. Equity Fund1, 3, 4 Guardian U.S. Equity Select Fund4
No securities regulatory authority has expressed an opinion about these units. It is an offence to claim otherwise.
The Funds and the securities of the Funds offered under this Simplified Prospectus are not registered with the United States Securities and Exchange Commission and they are sold in the United States only in reliance on exemptions from registration.
1 Offering Series A units 2 Offering Series C units 3 Offering Series F units 4 Offering Series I units 5 Offering Series W units 6 Offering Series WF units
Table of Contents
Introduction ...... 1 Tax information reporting ...... 22 What is a mutual fund and what are the What are your legal rights? ...... 23 risks of investing in a mutual fund? ...... 3 Specific information about each of the What is a mutual fund? ...... 3 mutual funds described in this document ...... 24 What do you own? ...... 3 Guardian Canadian Bond Fund ...... 28 Structure of the Funds ...... 3 Guardian Canadian Equity Fund ...... 30 Series of units...... 3 Guardian Canadian Equity Income Fund ...... 32 What are the general risks of investing in Guardian Canadian Equity Select Fund ...... 34 a mutual fund? ...... 3 Guardian Canadian Focused Equity Fund ...... 36 What are the specific risks of investing in Guardian Canadian Growth Equity Fund ...... 38 a mutual fund? ...... 4 Guardian Canadian Short-Term Organization and management of the Investment Fund ...... 40 Guardian Capital Funds ...... 9 Guardian Directed Equity Path Portfolio Purchases, switches and redemptions ...... 11 (formerly, Guardian SteadyPace Equity Series of units...... 11 Fund) ...... 42 How to purchase Units ...... 12 Guardian Directed Premium Yield How to redeem your Units ...... 13 Portfolio (formerly, Guardian SteadyFlow Equity Fund) ...... 44 How to switch your Units ...... 15 Guardian Emerging Markets Equity Optional Services ...... 15 Fund ...... 46 Fees and expenses ...... 16 Guardian Fixed Income Select Fund ...... 48 Fees and expenses payable by the Funds ...... 16 Guardian Fundamental Global Equity Fees and expenses payable directly by Fund ...... 50 you ...... 17 Guardian High Yield Bond Fund ...... 52 Impact of sales charges ...... 18 Guardian i3 Global Dividend Growth Dealer compensation ...... 18 Fund (formerly, Guardian Global Dividend Growth Fund) ...... 54 Sales commission ...... 18 Guardian i3 Global Quality Growth Fund Trailing commission ...... 18 (formerly, Guardian Global Equity Sales incentives ...... 20 Fund) ...... 56 Equity interest ...... 20 Guardian i3 International Quality Growth Fund (formerly, Guardian International Sales Practices of the Principal Equity Fund) ...... 58 Distributors ...... 20 Guardian International Equity Select Dealer compensation from management Fund ...... 60 fees ...... 20 Guardian Investment Grade Corporate Income tax considerations for investors ...... 20 Bond Fund ...... 62 How mutual funds earn taxable income ...... 20 Guardian Managed Balanced Portfolio How your investment is taxed ...... 21 (formerly, Guardian Balanced Fund) ...... 64 Non-registered accounts ...... 21 Guardian Managed Growth Portfolio ...... 66 Buying Units before a distribution date ...... 21 Guardian Managed Income & Growth Portfolio ...... 68 Registered plans ...... 22 Guardian Managed Income Portfolio ...... 71
Guardian Risk Managed Conservative Portfolio ...... 73 Guardian Short Duration Bond Fund ...... 75 Guardian U.S. Equity All Cap Growth Fund ...... 77 Guardian U.S. Equity Fund ...... 79 Guardian U.S. Equity Select Fund ...... 81
Introduction
This document contains selected important information to help you make an informed investment decision and understand your rights as an investor. Throughout this document:
we, us, Guardian or the Manager means Guardian Capital LP, the trustee, investment fund manager and portfolio manager of the Funds.
you means each person who invests in the Funds.
investment advisor means the registered representative who advises you on your investments.
dealer means the company where your investment advisor works.
custodian means RBC Investor Services Trust.
Fund means a mutual fund listed on the front cover of this Simplified Prospectus.
Guardian Fund means a mutual fund managed by Guardian, which includes the Funds.
HST means harmonized sales tax.
intermediary means a third party that you or your dealer may use to administer your accounts.
IRC means the independent review committee established by the Manager under National Instrument 81-107 Independent Review Committee for Investment Funds.
MER means management expense ratio and includes, for a series, any management fee, administration fee and other operating expenses paid by the Fund, but excludes brokerage commissions on portfolio transactions and certain other costs, including certain taxes.
NAV means the net asset value of a Fund.
Series NAV in respect of any particular series of Units of a Fund means the portion of the NAV attributed to such series.
Series NAV per Unit in respect of any particular series of Units of a Fund means the portion of the NAV attributed to each Unit of such series.
Simplified Prospectus means this simplified prospectus of the Funds.
Tax Act means Income Tax Act (Canada) and the regulations issued thereunder, as amended from time to time.
underlying fund means any mutual fund in which a Fund invests.
Unit means a mutual fund unit of a Fund.
Unitholder means a holder of Units.
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How to use this Simplified Prospectus This Simplified Prospectus is divided into two parts. The first part, on pages 1 to 23, provides basic information about mutual funds and general information about all of the Funds. The second part, on pages 24 to 82, provides specific information about each Fund.
For more information You can find more information about each Fund in:
The Funds’ Annual Information Form;
The most recently filed fund facts (Fund Facts);
The latest annual financial statements for each Fund;
Any interim financial report filed after those annual financial statements;
The most recently filed annual management report of fund performance (MRFP); and
Any interim MRFP filed after that annual MRFP.
These documents are incorporated by reference into this document, which means that they legally form part of this document just as if they were printed as part of it.
For a free copy of these documents, call us toll-free at 1-866-383-6546 or ask your investment advisor. These documents and other information about the Funds are also available at www.guardiancapital.com/investmentsolutions and at www.sedar.com.
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What is a mutual fund and what are the risks of investing in a mutual fund?
What is a mutual fund? The Funds are mutual funds. A mutual fund is a way of making collective investments. When you invest in a mutual fund, you contribute your cash to a pool of investments along with many other people. Professional money managers use the cash to buy securities on behalf of all the contributors to a particular mutual fund.
A mutual fund invests in different kinds of securities based on its investment objectives. For example, a global equity fund buys mainly shares of global corporations, while a global balanced fund buys a mix of global equities and bonds. In each case, these securities form the mutual fund’s investment portfolio. The value of these securities changes from day to day, reflecting changes in economic and market conditions, interest rates and company news. See Price fluctuation below for details.
What do you own? You receive units in a mutual fund in exchange for the cash you contribute, and you become a unitholder of the mutual fund. You share in the fund’s income, expenses and capital gains or losses in proportion to the number of units of that fund that you own.
Structure of the Funds Each Fund is an open-end mutual fund governed by an amended and restated master declaration of trust under Ontario laws. Guardian, as trustee for the Funds, holds the property and investments of the Funds in trust for the Unitholders and arranges for a professional custodian to hold the investments in safekeeping.
You can buy an unlimited number of Units of each Fund.
Series of units A Fund may issue units in one or more series. For some purposes, such as calculating fees and expenses, a series of units may be dealt with separately from other series of units of that Fund. For other purposes, such as Fund investment activity, all series of units of a Fund are dealt with together.
See Series of units on page 11 for more details on the different series of units available.
What are the general risks of investing in a mutual fund? Risk is the chance that your investment may not perform as expected. There are different degrees and types of risk but, in general, the more investment risk you are willing to accept, the higher your potential returns and the greater your potential losses.
The general risks include:
Price fluctuation Mutual funds own different types of investments, depending on their investment objectives. The value of these investments will change from day to day, reflecting changes in interest rates, economic conditions, market and company news, and global or regional political, economic, health and banking crisis. As a result, the value of a mutual fund’s units may go up and down and the value of your investment in a mutual fund may be worth more or less when you redeem it than when you purchased it.
Your investment is not guaranteed The value of your investment in a mutual fund is not guaranteed. Unlike bank accounts or guaranteed investment certificates, mutual fund units are not covered by the Canada Deposit Insurance Corporation or any other government deposit insurer.
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Redemptions may be suspended Under exceptional circumstances, your right to redeem your Units may be suspended. See Suspending your right to redeem on page 14 for details.
What are the specific risks of investing in a mutual fund? Each mutual fund also has specific risks. If a mutual fund invests in an underlying fund, the risks of the mutual fund include the risks of the underlying fund. A mutual fund takes on the risks of an underlying fund in proportion to its investment in that underlying fund. The description of each Fund, starting on page 27, sets out the risks that apply to that Fund and any underlying funds in which the Fund invests. Following, in alphabetical order, is a description of each of those risks:
Active management risk Each of the Funds is actively managed. The Funds are dependent on their portfolio management team to select individual securities and, therefore, are subject to the risk that poor security selection or market allocation will cause a Fund to underperform relative to other mutual funds with a similar investment objective or relative to its benchmark index.
Capital erosion risk Certain Funds make distributions of a fixed amount comprised, in whole or in part, of return of capital. A return of capital represents a return to you of a portion of your own invested capital. It therefore reduces the amount of your original investment. Return of capital that is not reinvested will reduce the NAV of the Fund, which could reduce the Fund’s ability to generate future distributions. You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution.
Credit risk Credit risk can have a negative impact on the value of a debt security, such as a bond. This risk includes:
Default risk, which is the risk that the issuer of the debt will not be able to pay interest or repay the debt when it is due. Generally, the greater the risk of default, the lower the quality of the debt security.
Credit spread risk, which is the risk that the difference in interest rates (called credit spread) between the issuer’s bond and a bond considered to have little associated risk (such as a treasury bill) will increase. An increase in credit spread generally decreases the value of a debt security.
Downgrade risk, which is the risk that a specialized credit rating agency will reduce the credit rating of an issuer’s securities. A downgrade in credit rating generally decreases the value of a debt security.
Collateral risk, which is the risk that in the event of a default under secured debt instruments, it may be difficult to sell the assets the issuer has given as collateral for the debt or that the assets may be deficient. This difficulty could cause a significant decrease in the value of a debt security.
Currency risk The assets and liabilities of each series and each Fund, other than Series I of Guardian U.S. Equity Fund, are valued in Canadian dollars. If a Fund valued in Canadian dollars holds a security denominated in a foreign currency for the purposes of calculating the NAV of that Fund, we convert, on a daily basis, the value of the security into Canadian dollars. Fluctuations in the value of the Canadian dollar relative to the foreign currency will impact the NAV of the Fund. If the value of the Canadian dollar has increased relative to the foreign currency, the return on the foreign security may be reduced, eliminated or made negative. The opposite can also occur; that is, if a Fund holds a security denominated in a foreign currency, it may benefit from an increase in the value of the foreign currency relative to the Canadian dollar. To protect against variations in exchange rates, we may engage in foreign currency risk hedging by buying or selling forward currency contracts.
Some foreign governments may restrict currency exchange. If we cannot exchange the currencies in which a Fund is invested, we may be unable to make distributions or process redemptions.
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Cyber security risk As the use of technology has become more prevalent in the course of business, the Funds have become potentially more susceptible to operational risks through breaches in cyber security. A breach in cyber security refers to both intentional and unintentional events that may cause a Fund to lose proprietary information, suffer data corruption or lose operational capacity. This in turn could cause a Fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures, and/or financial loss. Cyber security breaches may involve unauthorized access to a Fund’s digital information systems (e.g., through “hacking” or malicious software coding), but may also result from outside attacks, such as denial-of-service attacks (i.e., efforts to make network services unavailable to intended users). In addition, cyber security breaches of a Fund’s third party service providers (e.g., registrar and record keeper, custodian and sub-advisers) or issuers that a Fund invests in can also subject a Fund to many of the same risks associated with direct cyber security breaches. As with operational risk in general, the Manager has established risk management systems designed to reduce the risks associated with cyber security. However, there is no guarantee that such efforts will succeed, especially since the Manager does not directly control the cyber security systems of issuers or third party service providers.
Debt securities risk Investments in debt securities are subject to certain general investment risks that are similar to equity investments. In addition to credit risk and interest rate risk, a number of other factors may cause the price of a debt security to decline. In the case of corporate debt, this could include specific developments relating to the company, as well as general financial, political and economic conditions in the country where the company operates. In the case of government debt, this could include general economic, financial and political conditions. The market value of a Fund is affected by changes in the prices of the debt securities that it holds.
Derivatives risk Derivatives are investments whose value is based on, or derived from, an underlying asset, such as a stock or a market index. Derivatives are not a direct investment in the underlying asset itself. Derivatives are often contracts with another party to buy or sell an asset at a later date. Some common derivatives are: (a) a futures or forward contract, which is an agreement to buy or sell currencies, commodities or securities for a set price at a specified future date; or (b) an option, which gives the buyer the right, but not the obligation, to buy or sell currencies, commodities or securities at a set price within a certain time period. The Funds may use derivatives to limit potential gains or losses caused by changes in exchange rates, stock prices or interest rates. This is called hedging. The Funds may also use derivatives for non-hedging purposes, such as reducing transaction costs, increasing liquidity, gaining exposure to financial markets or increasing speed and flexibility in making portfolio changes.
Any use of derivatives has risks, including:
The hedging strategy may not be effective;
There is no guarantee that a market for the derivative contract will exist when a Fund wants to buy or sell;
There is no guarantee that the Fund will be able to find an acceptable counterparty willing to enter into a derivative contract;
The counterparty to the derivative contract may not be able to meet its obligations;
A large percentage of the assets of a Fund may be placed on deposit with one or more counterparties, which exposes the Fund to the credit risk of those counterparties;
Securities exchanges may set daily trading limits or halt trading, which may prevent a Fund from selling a particular derivative contract;
The price of a derivative may not accurately reflect the value of the underlying asset; and
The Tax Act, or its interpretation, may change in respect of the tax treatment of derivatives.
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Equity risk Companies issue equities, or stocks, to help finance their operations and future growth. A company’s performance outlook, market activity and the larger economic picture influence its stock price. When the economy is expanding, the outlook for many companies will be positive and the value of their stocks should rise. The opposite is also true. The value of a Fund is affected by changes in the prices of the stocks it holds. The risks and potential rewards are usually greater for small companies, start-ups, resource companies and companies in emerging markets. Investments that are convertible into equity may also be subject to equity risk.
Foreign investment risk Some of the Funds invest in securities issued by corporations in, or governments of, countries other than Canada. Investing in foreign securities can be beneficial in expanding your investment opportunities and portfolio diversification, but there are risks associated with foreign investments, including:
Companies outside of Canada may be subject to different regulations, standards, reporting practices and disclosure requirements than those that apply in Canada;
The legal systems of some foreign countries may not adequately protect investor rights;
Political, social or economic instability may affect the value of foreign securities;
Foreign governments may make significant changes to tax policies, which could affect the value of foreign securities; and
Foreign governments may impose currency exchange controls that prevent a Fund from taking money out of the country.
The foreign investment risk associated with securities in developing countries may be higher than the foreign investment risk associated with securities in developed countries, as many developing countries tend to be less stable politically, socially and economically, may be more subject to corruption and may have less market liquidity and lower standards of business practices and regulation.
Many foreign countries preserve their right under domestic tax laws and applicable tax conventions with respect to taxes on income and on capital (Tax Treaties) to impose tax on dividends and interest paid or credited to persons who are not resident in such countries. While each Fund intends to make investments in such a manner as to minimize the amount of foreign taxes incurred under foreign tax laws and subject to any applicable Tax Treaties, investments in global equity and debt securities may subject the Fund to foreign taxes on dividends and interest paid or credited to them or any gains realized on the disposition of such securities. Any foreign taxes incurred by a Fund will generally reduce the value of its portfolio.
Under certain Tax Treaties, a Fund may be entitled to a reduced rate of tax on such foreign income. Some countries require the filing of a tax reclaim or other forms to receive the benefit of the reduced tax rate. Whether or when a Fund will receive the tax reclaim is within the control of the particular foreign country. Information required on these forms may not be available (such as unitholder information); therefore, a Fund may not receive the reduced treaty rates or potential reclaims. Certain countries have conflicting and changing instructions and restrictive timing requirements that may cause a Fund not to receive the reduced treaty rates or potential reclaims. In some instances, it may be costlier to pursue tax reclaims than the value of the benefits received by the Fund. Where a Fund expects to recover withholding tax, the NAV of the Fund generally includes accruals for such tax refunds. If the likelihood of receiving refunds materially decreases, accruals in the Fund’s NAV for such refunds may need to be written down partially or in full, which will adversely affect that Fund’s NAV. Investors in the Fund at the time an accrual is written down will bear the impact of any resulting reduction in the NAV regardless of whether they were investors during the accrual period. Conversely, if a Fund obtains a refund of foreign taxes that has not been previously accrued, investors in the Fund at the time the claim is successful will benefit from any resulting increase in the Fund’s NAV. Investors who sold their Units prior to such time will not benefit from such NAV increase.
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Fund-of-funds risk Certain funds invest directly in, or obtain exposure to, other investment funds as part of their investment strategy. Therefore, these funds will be subject to the risks of the underlying funds. Also, if an underlying fund suspends redemptions, the investment fund that invests in the underlying fund will be unable to value part of its portfolio and may be unable to redeem securities.
Income trust risk Funds that invest in real estate trusts, royalty trusts, business trusts and income trusts may be exposed to the risk that as a holder of trust units, a Fund (and its investors) could be held liable for all claims and obligations not satisfied by the trust. However, this risk is largely considered remote. Many provinces, including Ontario and Alberta, have enacted legislation to protect investors in investment trusts from the potential of such liability. In addition, some investment trusts include provisions in their contractual agreements that effectively relieve investors of such obligations.
Interest rate risk The value of Funds that hold fixed-income securities will rise and fall as interest rates change. When interest rates fall, the value of an existing bond will rise. When interest rates rise, the value of an existing bond will fall. The value of debt securities that pay a variable (or floating) rate of interest is generally less sensitive to interest rate changes. To the extent a Fund invests in instruments with a negative yield (i.e. where there are negative interest rates), its value could be impaired.
Large transaction risk If an investor in a Fund or underlying fund makes a large transaction, that fund’s cash flow may be affected. For example, if an investor redeems a large number of securities of a Fund or an underlying fund, that fund may be forced to sell securities at unfavourable prices to pay the proceeds of redemption. This unexpected sale may have a negative impact on the value of your investment in the Fund.
We or others may offer investment products that invest all or a significant portion of their assets in a Fund. These investments may become large and could result in large purchases or redemptions of Units of the Fund.
Liquidity risk A liquid asset trades on an organized market, such as a stock exchange, which provides price quotations for the asset. The use of an organized market means that it should be possible to convert the asset to cash at, or close to, the quoted price.
An asset is considered illiquid if it is more difficult to convert it to a liquid investment, such as cash. A company’s securities may be illiquid if:
The company is not well known;
There are few outstanding shares;
There are few potential buyers; and
They cannot be resold because of a promise or an agreement.
The value of a Fund that holds illiquid securities may rise and fall substantially because the Fund may not be able to sell the securities for the value that we use in calculating the NAV of the Fund. There are restrictions on the amount of illiquid securities a Fund may hold.
Market disruption risk The market value of a mutual fund’s investment may rise and fall based on specific company developments, broader market conditions, including financial conditions in countries where the investments are based, or other factors. Political, regulatory, economic or other developments, such as: war and occupation; terrorism and related geopolitical risks; natural disasters; and public health emergencies, including an epidemic or pandemic, may lead to increased
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short-term market volatility, unusual liquidity concerns, and may have adverse long-term effects on world economies and markets generally, including in Canada and the U.S. The effects of these or similar events on the economies and markets of countries cannot be predicted. These events could also have an acute effect on individual issuers or related groups of issuers. These risks could also adversely affect securities markets, fixed income markets, inflation and other factors relating to the portfolio securities of the mutual fund.
Repurchase and reverse repurchase transactions and securities lending risk Certain Funds may engage in securities lending, repurchase and reverse repurchase transactions. Under a repurchase transaction, a Fund agrees to sell securities for cash while, at the same time, assuming an obligation to repurchase the same securities for a set amount of cash at a later date. A reverse repurchase transaction is a transaction pursuant to which a Fund buys securities for cash while, at the same time, agreeing to resell the same securities for cash (usually at a higher price) at a later date. Securities lending is an agreement whereby a Fund lends securities through an authorized agent in exchange for a fee and a form of acceptable collateral.
There is the risk that the other party to these types of transactions may default under the agreement or go bankrupt. If that happens in a reverse repurchase transaction and the market value of the security has dropped, the Fund may be unable to sell the security at the price it paid plus interest. If that happens in a repurchase or a securities lending transaction, the Fund may suffer a loss if the value of the security it sold or loaned has increased more than the value of the cash or collateral the Fund holds.
To reduce these risks, the Funds require the other party to one of these transactions to put up collateral. The value of the collateral must be at least 102% of the market value of the security sold (for a repurchase transaction), bought (for a reverse repurchase transaction) or loaned (for a securities lending transaction). The value of the collateral is checked and reset daily. The market value of securities sold under repurchase transactions and loaned under securities lending agreements must not exceed 50% of a Fund’s assets. This calculation excludes cash held by a Fund for sold securities and collateral held for loaned securities.
Series risk Certain Funds are available in more than one series of Units. Each series has its own fees and expenses, which the Fund tracks separately. If a Fund cannot pay the expenses of one series using that series’ proportionate share of the assets of the Fund, the Fund will have to pay those expenses out of the other series’ proportionate share of the assets, which would lower the investment return of that other series.
Smaller company risk A Fund may make investments in smaller capitalization companies. For several reasons, these investments are generally riskier than investments in larger companies. Smaller companies are often relatively new and may not have an extensive track record, which may make it difficult for the market to place a proper value on these companies. Some of these companies may not have extensive financial resources and, as a result, may be unable to react to events in an optimal manner. In addition, stocks of smaller companies are sometimes less liquid, meaning that there is less demand for such stocks in the marketplace at a price that is deemed fair by sellers.
Specialization risk A Fund that invests primarily in one industry, market capitalization range or specific region or country may be more volatile than a less specialized Fund and will be strongly affected by the overall economic performance of the area of specialization in which the Fund invests. The Fund must continue to follow its investment objectives regardless of the economic performance of the area of specialization.
Tax risk As of the date hereof, each of the Funds, other than Guardian i3 Global Quality Growth Fund and Guardian Managed Growth Portfolio, qualifies as a “mutual fund trust” under the Tax Act. It is the Manager’s intention that the conditions prescribed in the Tax Act for qualification as a mutual fund trust will be satisfied on a continuing basis by these Funds. If a Fund ceases to qualify as a mutual fund trust under the Tax Act, the income tax considerations described under Income tax considerations for investors on page 20 could be materially and adversely different in certain respects. Each of Guardian i3 Global Quality Growth Fund and Guardian Managed Growth Portfolio currently does not qualify as a mutual fund trust under the Tax Act, but is registered as a registered investment. A Fund that is a “registered investment” under the Tax Act and is not a mutual fund trust may, in some circumstances, be subject to tax under Part
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X.2 of the Tax Act if the Fund makes an investment in property that is not a qualified investment for registered plans. Each of Guardian i3 Global Quality Growth Fund and Guardian Managed Growth Portfolio do not intend on making any investment that would result in the Fund becoming subject to tax under Part X.2 of the Tax Act, but no assurances can be given in this regard.
In determining its income for tax purposes, each Fund will treat gains or losses on the dispositions of securities in the portfolio of the Fund as capital gains and losses. Generally, each Fund will include gains and deduct losses on income account in connection with investments made through derivatives, except where such derivatives are used to hedge securities in the portfolio of the Fund held on capital account provided there is sufficient linkage, and will recognize such gains or losses for tax purposes at the time they are realized by the Fund. In addition, gains or losses in respect of foreign currency hedges entered into in respect of amounts invested in the portfolio of a Fund should constitute capital gains and capital losses to the Fund if the securities in the portfolio of the Fund are capital property to the Fund and there is sufficient linkage. Designations with respect to a Fund’s income and capital gains will be made and reported to unitholders of a Fund on the foregoing basis. The Canada Revenue Agency’s (the CRA) practice is not to grant advance income tax rulings on the characterization of items as capital gains or income and no advance income tax ruling has been requested or obtained. If these dispositions or transactions of a Fund are determined not to be on capital account (whether pursuant to the DFA Rules discussed in the Funds’ Annual Information Form under the heading Income Tax Considerations – Taxation of the Funds or otherwise), the net income of a Fund for tax purposes and the taxable component of distributions to unitholders of the Fund could increase. Any such redetermination of the CRA may result in a Fund being liable for unremitted withholding taxes on prior distributions made to unitholders who were not resident in Canada for purposes of the Tax Act at the time of the distribution. Such potential liability may reduce the NAV of a Fund and/or Series NAV per Unit.
A Fund that experiences a “loss restriction event” (i) will be deemed to have a year-end for tax purposes (which would result in an allocation of the Fund’s taxable income at such time to Unitholders so that the Fund is not liable for income tax on such amounts), and (ii) the Fund will become subject to the loss restriction rules generally applicable to corporations that experience an acquisition of control, including a deemed realization of any unrealized capital losses and restrictions on their ability to carry forward losses. Generally, a Fund will be subject to a loss restriction event when a person becomes a “majority-interest beneficiary” of the Fund, or a group of persons becomes a “majority- interest group of beneficiaries” of the Fund, as those terms are defined in the affiliated persons rules contained in the Tax Act, with appropriate modifications. Generally, a majority interest beneficiary of a Fund will be a beneficiary who, together with the beneficial interests of persons and partnerships with whom the beneficiary is affiliated, has a fair market value that is greater than 50% of the fair market value of all the interests in the income or capital, respectively, in the Fund.
Organization and management of the Guardian Capital Funds
MANAGER Guardian Capital LP The manager is responsible for the day-to-day business Commerce Court West, Suite 3100 and operations of the Funds. We may hire arm’s length 199 Bay Street third parties or affiliates to perform some of the services Toronto, Ontario, M5L 1E8 required by the Funds.
TRUSTEE Guardian Capital LP The Funds are mutual fund trusts. When you invest in Toronto, Ontario one of the Funds, you buy Units of that trust. The trustee holds title to the Funds’ investments in trust for the Unitholders.
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PORTFOLIO MANAGER Guardian Capital LP We are the portfolio manager of each Fund and are Toronto, Ontario responsible for selecting the securities held by each Fund and managing the investment portfolio of each Fund. We may appoint sub-advisers for the Funds. Any sub-adviser is identified in the disclosure for each specific Fund. There may be difficulty enforcing legal rights against any sub-adviser for the Funds that is located outside of Canada with all or substantially all of its assets situated outside of Canada.
PRINCIPAL DISTRIBUTORS Worldsource Financial Management Inc. The principal distributors market the Units of the Funds Markham, Ontario and sell the Units through their own sales forces. Each principal distributor is an indirect wholly-owned Worldsource Securities Inc. subsidiary of Guardian Capital Group Limited. Markham, Ontario
CUSTODIAN RBC Investor Services Trust The custodian holds all of the Funds’ investments in Toronto, Ontario safekeeping.
REGISTRAR & RECORD KEEPER RBC Investor Services Trust The registrar and record keeper keeps a record of the Toronto, Ontario owners of Units of the Funds and processes subscriptions, redemptions and any other changes in ownership.
AUDITOR PricewaterhouseCoopers LLP The auditor audits the Funds’ annual financial Toronto, Ontario statements and provides an opinion as to whether they present fairly in all material respects each Fund’s financial position, its financial performance and cashflows in accordance with International Financial Reporting Standards.
SECURITIES LENDING AGENT RBC Investor Services Trust RBC Investor Services Trust is the securities lending Toronto, Ontario agent for those Funds that engage in securities lending. The securities lending agent is independent of the Manager.
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INDEPENDENT REVIEW COMMITTEE (IRC) The mandate of the IRC is to review, and provide input Each member of the IRC is independent of us, the on, our written policies and procedures that deal with Guardian Funds and any party related to us. The IRC conflict of interest matters in respect of the Guardian will prepare, at least annually, a report of its activities Funds and to review and, in some cases, approve for unitholders of the Guardian Funds. This report will conflict of interest matters. The IRC may also approve be available on our website at certain mergers involving the Guardian Funds and any www.guardiancapital.com/investmentsolutions or you change of the auditors of the Guardian Funds. may request a copy, at no cost to you, by contacting us Unitholder approval will not be obtained in these at [email protected]. circumstances, but you will be sent a written notice at least 60 days before the effective date of any such Additional information about the IRC, including the merger or change of auditor. names of the members, is available in the Annual Information Form. The IRC is composed of three individuals, each of whom is independent of the Manager.
Fund of funds Certain of the Funds (referred to in this context as a top fund) may buy securities of another mutual fund (an underlying fund). Where we are the manager of both the top fund and the underlying fund, we will not vote the securities of the underlying fund that are held by the top fund. However, in our discretion, we may decide to flow those voting rights to Unitholders in the top fund. Purchases, switches and redemptions
Series of units Each Fund may have an unlimited number of series of Units and may issue an unlimited number of Units of each series. Each series of Units is intended for different types of investors. The money that you and other investors pay to purchase Units of any series is tracked on a series-by-series basis in your Fund’s administration records. However, the assets of all series of any Fund are combined in a single pool to create one portfolio for investment purposes.
Series A Series A Units are offered by Guardian Canadian Bond Fund, Guardian Canadian Focused Equity Fund, Guardian Directed Equity Path Portfolio, Guardian Directed Premium Yield Portfolio, Guardian Emerging Markets Equity Fund, Guardian i3 Global Quality Growth Fund, Guardian i3 International Quality Growth Fund, Guardian Investment Grade Corporate Bond Fund, Guardian Short Duration Bond Fund and Guardian U.S. Equity Fund. Series A Units are available to all investors through authorized dealers, subject to the minimum investment requirements set forth in this Simplified Prospectus.
Series C Series C Units are offered by Guardian Managed Income & Growth Portfolio and Guardian Managed Income Portfolio. Series C Units are exclusively available to certain investors who invest at least $500.00 in either of these Funds through a qualified dealer that has entered into an eligibility agreement with us. Series C Units are subject to the minimum investment requirements set forth in this Simplified Prospectus.
Series F Series F Units are offered by Guardian Canadian Bond Fund, Guardian Canadian Focused Equity Fund, Guardian Directed Equity Path Portfolio, Guardian Directed Premium Yield Portfolio, Guardian Emerging Markets Equity Fund, Guardian i3 Global Quality Growth Fund, Guardian i3 International Quality Growth Fund, Guardian Investment Grade Corporate Bond Fund, Guardian Managed Income & Growth Portfolio, Guardian Managed Income Portfolio, Guardian Risk Managed Conservative Portfolio, Guardian Short Duration Bond Fund and Guardian U.S. Equity Fund. Series F Units are available to investors who have a fee-based account through their dealer and whose dealer has signed an agreement with us. Instead of paying sales charges, investors buying Series F Units pay fees to their dealer for investment advice and other services. We do not pay any commissions to dealers in respect of Series F Units, so
Guardian Capital Funds Simplified Prospectus 11
we can charge a lower management fee. Series F Units are subject to the minimum investment requirements set forth in this Simplified Prospectus.
Series I Series I Units are offered by all Funds. To be eligible to purchase Series I Units, you or your investment advisor must enter into an agreement with us or one of our affiliates. This agreement sets out, among other things, the investment advisory fees payable to us or our affiliate, as the case may be. Series I Units are subject to the minimum investment requirements set forth in this Simplified Prospectus.
Series W Series W Units are offered by Guardian Canadian Equity Income Fund, Guardian Canadian Short-Term Investment Fund, Guardian Fundamental Global Equity Fund, Guardian High Yield Bond Fund, Guardian i3 Global Dividend Growth Fund, Guardian Managed Balanced Portfolio, Guardian Managed Growth Portfolio and Guardian Risk Managed Conservative Portfolio. Series W Units are available to all investors through a qualified dealer that has entered into an eligibility agreement with us and are subject to the minimum investment requirements set forth in this Simplified Prospectus.
Series WF Series WF Units are offered by Guardian Fundamental Global Equity Fund and Guardian i3 Global Dividend Growth Fund and are available to investors who have a fee-based account through their dealer and whose dealer has signed an agreement with us. Instead of paying sales charges, investors buying Series WF Units pay fees to their dealer for investment advice and other services. We do not pay any commissions to dealers in respect of Series WF Units, so we can charge a lower management fee. Series WF Units are subject to the minimum investment requirements set forth in this Simplified Prospectus.
How to purchase Units You can buy Units of the Funds through a registered dealer. You must be of the age of majority in the province or territory in which you live to buy units in a mutual fund. You may hold Units in trust for a minor. Subject to limited exceptions, Series C, Series W Units and Series WF Units are exclusively available for purchase through the Principal Distributors of the Funds.
Purchase price When you buy Units in a Fund, the price you pay is the Series NAV per Unit of those Units. In general, we calculate the Series NAV per Unit of a Fund by taking that series’ proportionate share of the assets of the Fund, subtracting the liabilities for that series and its proportionate share of the Fund’s common expenses, and dividing that number by the total number of outstanding Units of that series.
The Series NAV per Unit of a Fund is calculated for each series of each Fund at the end of each business day.
We calculate the Series NAV per Unit for each Fund in Canadian dollars, except for Series I of Guardian U.S. Equity Fund, whose Series NAV per Unit is calculated in U.S. dollars.
If we receive your purchase order before 4:00 p.m. Eastern Time on a day that the Toronto Stock Exchange (TSX) is open for business or before the TSX closes for the day, whichever is earlier, we will process your order based on the Series NAV per Unit calculated on that day. If we receive your order after that time, we will process your order based on the Series NAV per Unit calculated on the next business day.
When you buy Series A, Series C or Series W Units, you negotiate and pay your dealer an initial sales charge of up to 5% of the amount invested at the time you purchase such Units. Series F, Series I and Series WF Units have no sales charges. See Fees and expenses payable directly by you on page 17.
Minimum investment The minimum initial investment in each series of Units is $500.00. The minimum additional investment in Series A, Series C, Series F, Series W and Series WF Units is $50.00. There is no minimum additional investment threshold for
Guardian Capital Funds Simplified Prospectus 12
Series I Units. The minimum investment amounts may be adjusted or waived in our absolute discretion and without notice to Unitholders.
How we process your order You and your investment advisor are responsible for ensuring that your purchase order is accurate and that we receive all the necessary documents or instructions.
If your purchase is made through a dealer, we must receive full payment within two business days of processing your order. If we do not receive payment within that time or if the payment is returned, we will sell your Units on the next business day. If the proceeds are greater than the amount you owe us, the Fund will keep the difference. If the proceeds are less than the amount you owe us, your dealer will pay the difference to the Fund and you may have to reimburse your dealer.
We can accept or reject your order within one business day of receiving it. If we accept your order, you will receive a written confirmation from us and/or your dealer or the intermediary. If we reject your order, we will return your money to you without interest.
How to redeem your Units If you want to redeem any of your Units of the Funds, please contact your investment advisor, who may ask you to complete a redemption request form.
We will pay you the current Series NAV per Unit for your Units. If we receive your redemption request before 4:00 p.m. Eastern Time on a day that the TSX is open for business or before the TSX closes for the day, whichever is earlier, we will calculate your redemption value as of that day. If we receive your redemption request after that time, we will calculate your redemption value as of the next business day.
Special rules apply if:
Your redemption proceeds are $25,000.00 or more;
You ask us to send your redemption proceeds to another person or to a different address than that is recorded for your account;
Your redemption proceeds are not payable to all joint owners on your account; or
A corporation, partnership, agent, fiduciary or surviving joint owner is redeeming Units.
These rules are set out in the Funds’ Annual Information Form and are also available from your investment advisor.
Redemption fees There are no redemption fees charged for redeeming Units of a Fund.
Excessive short-term trading In general, the Funds are long-term investments. Some Unitholders may seek to trade or switch Units frequently to try to take advantage of changes in a Fund’s NAV or the difference between a Fund’s NAV and the value of the Fund’s portfolio holdings. This activity is sometimes referred to as “market-timing”. Frequent trading or switching in order to time the market can hurt a Fund’s performance, affecting all the Unitholders in a Fund, by forcing the Fund to keep cash or sell investments to meet redemptions. We use a combination of measures to detect and deter market-timing activity, including:
Monitoring trading activity in our client accounts and, through this monitoring, declining certain trades when necessary;
Imposing short-term trading fees; and
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When appropriate, applying fair value pricing to foreign portfolio holdings in determining the prices of the Funds.
Short-term trading fees If you redeem or switch within 45 days of purchase, we may charge a short-term trading fee on behalf of the Fund. This is in addition to any switch fee that you may pay to your dealer. See Switch Fees on page 15 and Fees and expenses payable directly by you on page 17. Each additional switch counts as a new purchase for this purpose. If the Manager adopts a pre-authorized purchase plan and/ or systematic withdrawal plan, purchases or redemptions under the pre-authorized purchase plan and/or systematic withdrawal plan will not trigger a short-term trading fee.
Fair value pricing The TSX generally closes at 4:00 p.m. Eastern Time. We price a Fund’s equity holdings using their market values as of 4:00 p.m. Eastern Time. For securities traded on North American markets, the closing prices are generally an accurate reflection of market values at 4:00 p.m. Eastern Time. However, closing prices on foreign securities exchanges may, in certain cases, no longer accurately reflect market values, because their local closings may have occurred many hours earlier. Events affecting the values of the Fund’s foreign portfolio holdings may have occurred after the foreign market closed but before 4:00 p.m. Eastern Time. Absent our fair value pricing procedures, these events would not be captured in a Fund’s NAV. We employ fair value pricing for two purposes. Firstly, it increases the likelihood that a Fund’s NAV truly reflects the value of its holdings at the time the price of the Units is determined. Secondly, it acts to deter market-timing activity by decreasing the likelihood that a Unitholder is able to take inappropriate advantage of market developments that occur following the foreign market close and prior to 4:00 p.m. Eastern Time. Our fair value pricing techniques involve assigning values to the Funds’ portfolio holdings that may differ from the closing prices on the foreign securities exchanges. We do this in circumstances where we have in good faith determined that to do so better reflects the market values of the securities in question.
How we process your redemption request We will pay you the proceeds of your redemption request within two business days of receiving all the required documents or instructions. We will deduct any required withholding tax from the payment, as applicable.
If your account is registered in the name of your dealer or an intermediary, we will send the proceeds to that account unless your dealer or the intermediary tells us otherwise.
If your account is registered in your name, we will deliver the proceeds by wire transfer to your account at a Canadian bank, trust company or credit union. You need to send us an imprinted void cheque so we can deposit the funds directly into your account, and you will be charged the cost of this wire transfer.
If we do not receive all the necessary documents or instructions within 10 business days of receiving your redemption order, we will buy back your Units on the next business day. If the sale proceeds are greater than the cost, the Fund will keep the difference. If the sale proceeds are less than the cost, your dealer will pay the difference to the Fund and you may have to reimburse your dealer.
Automatic redemption Unitholders in the Funds must keep at least $500.00 in each of their accounts. If your account falls below $500.00, we may notify you and give you 30 days to make another investment. If your account stays below $500.00 after those 30 days, we may redeem all of the Units in your account and send the proceeds to you.
Suspending your right to redeem Canadian securities regulators allow us to suspend your right to redeem your Units when:
Normal trading is suspended in any market where securities or derivatives that make up more than 50% of the Fund’s total value are traded and there is no other market or exchange that represents a reasonable alternative; or
We receive the consent of the Canadian securities regulators.
Guardian Capital Funds Simplified Prospectus 14
If we suspend redemption rights after you have requested a redemption and before your redemption proceeds have been determined, you may either withdraw your redemption request or redeem your Units at the Series NAV per Unit determined after the suspension period ends. We will not accept orders to buy Units of a Fund during any period in which redemptions are suspended.
How to switch your Units
Switching between Guardian Funds You can switch your investment from Units of a Fund into units of any other Guardian Fund, provided you meet the relevant eligibility criteria for investing in that Guardian Fund. A switch involves selling your original Units of a Fund and buying new units of a different Guardian Fund.
Switching between series You can switch your investment from Units of a particular series of a Fund into Units of another series of the same Fund or a different Guardian Fund, provided you meet the relevant eligibility criteria for investment for that series. If, at any time, you cease to meet the relevant eligibility criteria for a series you own, the Manager may switch your units to another series which you are eligible to hold.
Tax consequences of switching If you switch between Guardian Funds, the switch will involve both a redemption and a purchase of Units. A redemption is a disposition for tax purposes and may result in a capital gain or capital loss, which will be taxable if you hold your Units outside of a registered plan.
If you switch between series of the same Fund, the switch will be processed as a redesignation, which is not considered a disposition for tax purposes, with the exception of switch into Series I from any other series, which will not be processed as redesignation.
Any redemption of Units to pay any applicable switch fee will be considered a disposition for tax purposes and may result in a capital gain or capital loss if the Units are held outside a registered plan. See Income tax considerations for investors on page 20 for more details.
Switch fees Your dealer may charge you a fee of up to 2% of the amount you switch. You and your investment advisor negotiate the fee.
You may also have to pay a short-term trading fee if you switch Units you bought or switched into in the last 45 days. See Excessive short-term trading on page 13 and Short-term trading fees on page 14.
Optional Services
Pre-Authorized Purchase Plans
Unitholders may be able to make pre-authorized purchases at regular intervals in order to make additional investments in Units of a Fund. In such a case, subscription proceeds would be automatically withdrawn from a Unitholder’s bank account at such regular intervals, and invested in Units. Such investments would be subject to investing and maintaining the initial minimum amounts, and the minimum additional investments required, if any. Typically, Unitholders will be entitled to invest weekly, bi-weekly, monthly or quarterly, depending on the nature of their account. Participation in any such the pre-authorized purchase plan may be cancelled if payment is returned as a result of insufficient funds.
Once a plan is adopted by the Manager, Unitholders may choose this option upon the initial purchase of Units or at any time thereafter. Unitholders should contact their dealer or advisor for details regarding any available pre- authorized purchase plan, if any. Pre-authorized purchase plans will be implemented through your advisor, and may take a minimum period of time to set-up. As noted above, initial investments must meet the minimum initial
Guardian Capital Funds Simplified Prospectus 15
investment and the minimum additional investment requirements, if any. Unitholders will only be permitted to buy Units in the applicable currency under the pre-authorized purchase plan.
Pre-authorized purchase plans may be cancelled at any time provided minimum notice periods established by the Manager are met. Once a Unitholder redeems all of its Units, the pre-authorized purchase plan will automatically terminate.
Systematic Withdrawal Plan
A systematic withdrawal plan may be adopted by the Manager. Once adopted, Unitholders may be permitted to make regular withdrawals from their non-registered investment in a Fund. In order to participate in any systematic withdrawal plan, Unitholders must maintain a minimum amount in their non-registered account. Unitholders can typically choose to withdraw a set amount weekly, bi-weekly, monthly or quarterly, depending on the nature of the account. Upon each withdrawal, funds will be deposited directly into the directed bank account of the Unitholder. Unitholders who have a systematic withdrawal plan that also holds investments that are below the minimum balance for a Fund, may be asked to increase their investment to the minimum amount or to redeem their remaining investment.
Unitholders should contact their dealer or advisor for details regarding any available systematic withdrawal plan, if any. Systematic withdrawal plans will be implemented through your advisor, and may take a certain period of time to set-up. The Manager may, at its discretion, set a minimum withdrawal amount.
Systematic withdrawal plans may be cancelled at any time provided minimum notice periods established by the Manager are met. Once a Unitholder redeems all of its Units, the systematic withdrawal plan will automatically terminate. Fees and expenses
The following tables show the fees and expenses you may have to pay if you invest in the Funds. You will pay some of these fees and expenses directly. Your Fund may pay some of these fees and expenses, which therefore reduces the value of your investment in the Fund. Please note that no management fee is payable by you or the Funds in respect of Series I Units.
Fees and expenses payable by the Funds Management fees Each Fund is responsible for paying to the Manager and, where applicable, its affiliates, an annual management fee (Management Fee) in respect of Series A, Series C, Series F, Series W and Series WF Units of the Funds. This Management Fee is based on a percentage of the average applicable Series NAV during each month, calculated and accrued daily and payable monthly. Management fees are subject to applicable taxes, including HST. See the Fund details section of each Fund starting on page 27 for the Management Fee payable in respect of Series A, Series C, Series F, Series W and Series WF Units, as applicable.
In return for the payment of the Management Fee, various services are provided to the Funds, including, but not limited to, portfolio advisory and related investment management services, day-to-day operational services, including the processing of subscriptions, redemptions and redesignations and calculating NAV, arranging for the distribution and sale of Units by duly qualified investment dealers, brokers, mutual fund dealers and others, arranging for office facilities and personnel, custodial and safekeeping services, bookkeeping and internal accounting and audit services, legal services and other usual and ordinary office services, preparing all required disclosure and other documents, and providing all other necessary or desirable services.
Guardian Capital Funds Simplified Prospectus 16
Administration fees Each Fund is responsible for paying to the Manager an administration fee (Administration Fee), calculated as a fixed annual percentage of each Fund’s NAV, which is calculated and accrued daily and payable monthly in arrears. The Administration Fee rate varies for each Fund and is shown in the description of each Fund, starting on page 27. The Administration Fee is subject to applicable taxes, including HST. In return for the payment of the Administration Fee, the Manager pays all of the variable operating expenses of the Funds, including audit, custody, recordkeeping, fund accounting, filing, securityholder reporting, legal and HST on these expenses, and other related expenses. The Administration Fee paid to the Manager by a Fund may, in any particular period, exceed or be lower than the variable operating expenses the Manager incurs for that Fund.
Other operating expenses Each Fund is responsible for paying its own operating expenses (other than the variable operating expenses paid by the Manager in return for the Administration Fee), including interest and borrowing costs, brokerage commissions, foreign withholding taxes and other taxes to which the Funds may be subject, fees and expenses in connection with the Guardian Funds’ IRC (as described below), the costs of complying with any new regulatory or legal requirements imposed upon the Funds, any other fees that become commonly charged in the Canadian mutual fund industry, and applicable taxes payable on any of these expenses, including HST.
The expenses will be allocated among each Fund’s series of Units. Each series will bear separately any expense item that can be attributed specifically to that series. Common expenses will be allocated based on the relative Series NAV of each series.,
Each member of the IRC receives an annual retainer of $18,000. In addition, each member receives a $2,500 fee for each additional meeting of the IRC attended by the member beyond the regularly scheduled semi-annual meetings of the IRC in person or a $500 fee if attended by telephone. Each IRC member will be reimbursed for reasonable expenses incurred.
Each Guardian Fund pays a proportionate share of the total annual compensation and expenses paid in connection with the IRC, which is allocated among the series of the Guardian Fund based on the relative Series NAV of each series, as applicable.
Underlying funds When a Fund invests in an underlying fund, the underlying fund may charge the Fund a management fee (if the underlying fund is not a Guardian Fund) and other expenses. However, the Fund will not pay management fees on the portion of its assets that it invests in an underlying fund managed by us that, to a reasonable person, would duplicate a fee payable by the Fund for the same service.
Fees and expenses payable directly by you Sales charges You may have to pay your dealer up to 5% of the purchase price of the Series A, Series C and Series W Units you buy. You negotiate the sales charge with your investment advisor.
Switch fees You may have to pay up to 2% of the current value of the Units you switch. You negotiate the switch fees with your investment advisor. See Switch fees on page 15 for details.
Short-term trading fee You may pay 2% of the current value of the Units you redeem or switch if you redeem or switch them within 45 days of purchase. See Short-term trading fees on page 14 for details.
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Series I fees For Series I Units of each Fund, investors pay a negotiated investment advisory fee directly to the Manager or its affiliates. Unless otherwise noted, the maximum percentage that may be charged for this fee is generally equal to the Series W management fee of the same Fund or, if the Fund does not offer Series W, the maximum percentage that may be charged for this fee is generally equal to the Series A management fee of the same Fund.
For each of Guardian Canadian Equity Fund, Guardian Canadian Equity Select Fund, Guardian Canadian Growth Equity Fund, Guardian i3 Global Quality Growth Fund, Guardian i3 International Quality Growth Fund, Guardian International Equity Select Fund, Guardian Investment Grade Corporate Bond Fund, Guardian Managed Income & Growth Portfolio, Guardian Managed Income Portfolio, Guardian U.S. Equity All Cap Growth Fund, Guardian U.S. Equity Fund and Guardian U.S. Equity Select Fund the maximum percentage is 1.50%. For Guardian Fixed Income Select Fund, the maximum percentage is 1.00%.
Impact of sales charges The following table shows the maximum amount of sales charges that you would have to pay if you made an investment of $1,000 in Series A, Series C and Series W Units of a Fund, held that investment for one, three, five or ten years and redeemed immediately before the end of that period.
At Time of 1 Year 3 Years 5 Years 10 Years Purchase
Sales Charge $50 None None None None Dealer compensation
Sales commission If you buy Series A, Series C or Series W Units of a Fund, the commission you negotiate (up to 5% of your purchase amount) is deducted from your purchase amount and paid by you, through us, to your dealer.
No sales commission is payable by us to a dealer who sells Series F, Series I or Series WF Units.
Trailing commission
We pay your dealer a trailing commission on Series A, Series C and Series W Units on a monthly or quarterly basis to service your account. This commission is based on the average daily value of your Series A, Series C or Series W Units. The terms of these payments may change from time to time as long as they comply with Canadian securities rules and regulations. We reserve the right to change the frequency of these payments or cancel these payments at our sole discretion. The following table shows the maximum annual trailing commission for Series A, Series C and Series W Units of each Fund, as applicable, which ranges from 0.15% to a maximum of 1.00% and is paid to your dealer by the Manager out of the Management Fee.
Fund Maximum Trailing Maximum Trailing Maximum Trailing Commission Payable on Commission Payable on Commission Payable on Series A Units Series C Units Series W Units
Guardian Canadian Bond 0.50% n/a n/a Fund
Guardian Capital Funds Simplified Prospectus 18
Fund Maximum Trailing Maximum Trailing Maximum Trailing Commission Payable on Commission Payable on Commission Payable on Series A Units Series C Units Series W Units
Guardian Canadian Equity n/a n/a 1.00% Income Fund
Guardian Canadian 1.00% n/a n/a Focused Equity Fund
Guardian Canadian n/a n/a 0.15% Short-Term Investment Fund
Guardian Directed Equity 1.00% n/a n/a Path Portfolio
Guardian Directed 1.00% n/a n/a Premium Yield Portfolio
Guardian Emerging 1.00% n/a n/a Markets Equity Fund
Guardian Fundamental n/a n/a 1.00% Global Equity Fund
Guardian High Yield n/a n/a 0.80% Bond Fund
Guardian i3 Global n/a n/a 1.00% Dividend Growth Fund
Guardian i3 Global 1.00% n/a n/a Quality Growth Fund
Guardian i3 International 1.00% n/a n/a Quality Growth Fund
Guardian Investment 0.50% n/a n/a Grade Corporate Bond Fund
Guardian Managed n/a n/a 1.00% Balanced Portfolio
Guardian Managed n/a n/a 1.00% Growth Portfolio
Guardian Managed n/a 1.00% n/a Income & Growth Portfolio
Guardian Managed n/a 1.00% n/a Income Portfolio
Guardian Capital Funds Simplified Prospectus 19
Fund Maximum Trailing Maximum Trailing Maximum Trailing Commission Payable on Commission Payable on Commission Payable on Series A Units Series C Units Series W Units
Guardian Risk Managed n/a n/a 1.00% Conservative Portfolio
Guardian Short Duration 0.50% n/a n/a Bond Fund
Guardian U.S. Equity 1.00% n/a n/a Fund
No trailing commission is payable to your dealer on Series F, Series I or Series WF Units.
Sales incentives We may assist dealers with marketing and educational programs by paying a portion of the cost of such programs. We may also provide promotional items of minimal value to representatives of dealers. These activities are in compliance with applicable laws and regulations and any costs incurred by them will be paid by us and not the Funds.
Equity interest The Manager is a wholly-owned subsidiary of Guardian Capital Group Limited, a diversified financial services company. Guardian Capital Advisors LP, a portfolio manager and exempt market dealer, Worldsource Financial Management Inc., a mutual fund dealer, and Worldsource Securities Inc., an investment dealer, may sell Units of the Funds to their clients. Guardian Capital Advisors LP is also a wholly-owned subsidiary of Guardian Capital Group Limited. Each of Worldsource Financial Management Inc. and Worldsource Securities Inc. is an indirect wholly- owned subsidiary of Guardian Capital Group Limited.
Sales Practices of the Principal Distributors The Principal Distributors may offer certain permitted incentives for you to invest in the Funds. For example, they may absorb or waive certain fees in the event that you reach and maintain a certain level of investment in the Funds. Dealer compensation from management fees
Approximately 67.7% of the total management fees we received from the Guardian Funds in the financial year ended December 31, 2020 were used to pay for sales and trailing commissions and other marketing, promotional and educational activities. Income tax considerations for investors
This information is a general summary of Canadian federal income tax rules applicable to an individual (other than a trust) who for the purposes of the Tax Act is a resident in Canada and who holds Units in the Funds directly as capital property or in a registered plan. It is not intended to be legal or tax advice.
We do not describe the tax rules in detail or cover all the income tax consequences that may apply. We recommend you consult your tax advisor for advice about your individual situation.
How mutual funds earn taxable income Mutual funds may earn income and capital gains in a number of ways. For example, a mutual fund is generally required to include in income interest as it accrues, dividends when they are received and trust income when it is paid.
Guardian Capital Funds Simplified Prospectus 20
A Fund realizes a capital gain if it sells an investment for more than its cost, or a capital loss if it sells an investment for less than its cost. A Fund may realize gains (or losses) from derivative activities. These are treated as either income gains or losses or capital gains or losses, depending on the situation.
Each Fund will distribute enough of its net income and net realized capital gains so that it does not have to pay ordinary income tax under the Tax Act for a taxation year. Each Fund generally flows all of its taxable income through to its Unitholders in the form of distributions. This income is generally taxed as if you earned it directly.
How your investment is taxed The tax you pay on your mutual fund investment depends on whether you hold your Units in a non-registered account or in a registered plan.
Non-registered accounts
Distributions Generally, you must include the taxable portion of distributions from the Funds in computing your income for tax purposes. This is the case whether you receive them in cash or reinvest them in additional Units. The amount of any reinvested distributions is added to your adjusted cost base (ACB) and thus reduces your capital gain or increases your capital loss when you redeem those Units, so that you do not pay tax twice on the same amount. The Funds will take steps so that capital gains, Canadian dividends and foreign source income will retain their character when paid to you. Canadian dividends are subject to the dividend gross-up and tax credit rules. The Funds will take steps to pass on to you the benefit of the enhanced dividend tax credit that is available with respect to certain eligible dividends received from Canadian corporations.
Distributions from the Funds may be treated as returns of capital. A distribution to you will generally be treated as a return of capital if distributions to you in the year exceed your share of the Fund’s net income and net realized capital gains. A return of capital distribution is not included in your income for tax purposes, but will reduce the ACB of your Units on which it was paid. Where net reductions to the ACB of Units would result in an ACB becoming a negative amount, such amount will be treated as a capital gain realized by you and the ACB of your Units will then be nil.
We provide you with T3 tax slips showing the amount and type of distributions (ordinary income, eligible and ineligible Canadian dividends for which an applicable dividend tax credit is available, foreign income, returns of capital and/or capital gains) you received from each Fund and showing any related foreign tax credits.
Adjusted cost base (ACB)The aggregate ACB of your Units per series of a Fund is made up of: The amount you paid for your Units, including sales commissions, plus
Any reinvested distributions, minus
Any return of capital distributions, minus
The ACB of any Units already redeemed.
You must keep a record of the price you paid for your Units, any distributions you receive and the NAV of Units redeemed or switched. This record will allow you to calculate your ACB and capital gains or capital losses when you redeem your Units. Your tax advisor can help you with these calculations.
Buying Units before a distribution date The Series NAV per Unit at any time may reflect accrued income and/or gains that have not yet been realized and distributed. If you buy Units before a distribution date, the distributions paid to you may include income or capital gains that arose before you owned your Units and may have been reflected in the price you paid for the Units.
Portfolio turnover rate The portfolio turnover rate is how often the portfolio manager or portfolio management team buy and sell securities for a Fund. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its
Guardian Capital Funds Simplified Prospectus 21
portfolio one time in the course of a year. The higher a Fund’s portfolio turnover rate, the greater the chance that the Fund will have realized gains on the sale of investments, and therefore that you will receive a distribution of capital gains. Any gains realized by the Fund would be offset by any losses realized on its portfolio transactions. There is not necessarily a relationship between a high portfolio turnover rate and the performance of a Fund.
Tax impact of redeeming your Units If you redeem Units with a NAV that is greater than the ACB, you will have a capital gain, but if you redeem Units with a NAV that is less than the ACB, you will have a capital loss. You may deduct any redemption expenses in calculating your capital gains or losses.
Generally, one-half of a capital gain is included in your income and you may deduct one-half of your capital losses from your taxable capital gains, subject to certain tax rules.
Tax impact of switching Switching Units of a Fund for units of another Guardian Fund involves both a redemption and a purchase of Units. A redemption is considered a disposition for tax purposes of the Units switched and the same tax rules apply as if you redeemed those Units. Switching Units of a Fund for Units of a different series of the same Fund is not considered a disposition for tax purposes and no capital gain or capital loss will be realized. However, any redemption of Units to pay any applicable switch fee will be considered a disposition for tax purposes.
Registered plans Provided that the Units of a Fund are “qualified investments” under the Tax Act, you generally do not pay tax on distributions from the Fund you receive in a registered plan as long as you do not make a withdrawal from the plan.
Tax impact of redeeming or switching your Units When you redeem or switch your Units, generally, you do not pay tax unless you withdraw the proceeds you receive from your registered plan. In that case, you will generally pay tax on the amount you withdraw at your marginal tax rate. Special rules apply to Registered Education Savings Plans and Registered Disability Savings Plans, while withdrawals from a Tax-Free Savings Account are not subject to tax.
You will be subject to adverse tax consequences if Units of a Fund are “prohibited investment” within the meaning of the Tax Act for your registered plan. If you intend to purchase Units of a Fund through a registered plan, you should consult with your tax advisor as to whether Units of the Fund would be a “prohibited investment” under the Tax Act in your particular circumstances.
Tax information reporting Pursuant to the Canada-United States Enhanced Tax Information Exchange Agreement entered into between Canada and the United States on February 5, 2014 (the IGA) and Part XVIII of the Tax Act (collectively FATCA) and the Organization for Economic Co-operation and Development Common Reporting Standard (as implemented in Canada by Part XIX of the Tax Act, CRS), the Funds and/or registered dealers through which you hold your Units have due diligence and reporting obligations. Generally, Unitholders (or in the case of certain Unitholders that are entities, the “controlling persons” thereof) will be required by law to provide the Fund and/or registered dealer with information relating to their citizenship or tax residence and, if applicable, their foreign tax identification number. If a Unitholder (or, if applicable, any of its controlling persons) does not provide the information and indicia of U.S. or non-Canadian status is present or, for FATCA purposes, is identified as a U.S. resident, U.S. citizen (including a U.S. citizen living in Canada), and certain other “U.S. persons” as defined under the IGA or, for CRS purposes, is identified as a tax resident of a country other than Canada or the U.S., information about the Unitholder (or, if applicable, its controlling persons) and their investment in a Fund will generally be reported to the CRA unless the Units are held within a registered plan. The CRA will provide that information to, in the case of FATCA, the U.S. Internal Revenue Service and in the case of CRS, the relevant tax authority of any country that is a signatory of the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information or that has otherwise agreed to a bilateral information exchange with Canada under CRS.
Guardian Capital Funds Simplified Prospectus 22
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, 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 to make a claim for damages, if the Simplified Prospectus, Annual Information Form, Fund Facts or financial statements misrepresent any facts about the 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 a lawyer.
Guardian Capital Funds Simplified Prospectus 23
Specific information about each of the mutual funds described in this document
You will find detailed descriptions of each of the Funds in this part of the Simplified Prospectus. Here are explanations of what you will find under each heading.
Fund details This tells you:
Fund type: the type of mutual fund
Securities offered: the series of Units that the Fund offers. Currently, all of the Funds offer Series I Units and certain Funds offer Series A, Series F, Series W and Series WF Units
Start date: the dates that Units of each series could first be bought by the public; prior to the applicable Series I start date, Series I Units of some Funds were sold on a private placement basis to qualified purchasers
Registered plan eligibility: whether the Fund is a qualified investment for a registered plan
Administration fee: the fee payable to the Manager in return for the Manager paying the variable operating expenses of the Fund
Management fee: the fee payable to the Manager and, where applicable, its affiliates, for management of the Fund
Portfolio manager: we are the portfolio manager for each Fund, but we have appointed a sub-adviser for five Funds
What does the Fund invest in? This tells you the Fund’s:
Investment objectives: the goals of the Fund, including any specific focus it has and the kinds of securities in which it may invest
Investment strategies: how the portfolio manager tries to meet the Fund’s investment objectives
Each Fund may invest in other mutual funds, which may or may not be managed by us or one of our affiliates or associates. The simplified prospectus and other information about the underlying funds are available on the Internet at www.sedar.com.
In selecting underlying funds, we assess a variety of criteria, including management style, investment performance and consistency, risk tolerance levels, calibre of reporting procedures and, if the underlying fund is managed by a third party, quality of the underlying fund’s investment fund manager and/or portfolio manager.
We review and monitor the performance of the underlying funds in which a Fund invests. The review process consists of an assessment of the underlying funds. Factors such as adherence to stated investment mandate, returns, risk-adjusted return measures, assets, investment management process, style, consistency and continued portfolio fit may be considered.
What are the risks of investing in the Fund? This tells you the specific risks of investing in the Fund. You’ll find details about what each risk means in What are the specific risks of investing in a mutual fund? beginning on page 4.
Guardian Capital Funds Simplified Prospectus 24
Investment risk classification methodology The Manager assigns an investment risk rating to each Fund to provide you with further information to help you determine whether the Fund is appropriate for you. Each Fund is assigned an investment risk rating in one of the following categories: low, low to medium, medium, medium to high or high risk.
The investment risk rating of each Fund is required to be determined in accordance with a standardized risk classification methodology that is based on the Fund’s historical volatility as measured by the 10-year standard deviation of the returns of the Fund. For each Fund that does not have at least 10 years of performance history, the standard deviation of the Fund will be calculated using the return history of a reference index that is expected to reasonably approximate the standard deviation of the Fund. The performance history of these Funds is calculated using the following reference indices:
Fund Reference Index Description of Reference Index
Guardian Canadian S&P/TSX Composite Index The S&P/TSX Composite Index is designed to be a Equity Select Fund (Total Return) broad measure of the Canadian equity markets. It includes common stocks and income trust units listed on the Toronto Stock Exchange.
Guardian Canadian S&P/TSX Capped The S&P/TSX Capped Composite Index is designed Focused Equity Fund Composite Index to be a broad measure of the largest companies listed on the Toronto Stock Exchange, with the relative weighting of each stock capped at 10%
Guardian Directed MSCI World Index (Total The MSCI World Index is designed to be a broad Equity Path Portfolio Return, Unhedged, C$) measure of both large and mid-cap equities across (60%)/ FTSE Canada developed countries. The FTSE Canada Universe Universe Bond Index (40%) Bond Index is designed to be a broad measure of the Canadian investment grade fixed income market.
Guardian Directed MSCI World Index (Total The MSCI World Index is designed to be a broad Premium Yield Portfolio Return, Unhedged, C$) measure of both large and mid-cap equities across (90%)/ FTSE Canada developed countries. The FTSE Canada Universe Universe Bond Index (10%) Bond Index is designed to be a broad measure of the Canadian investment grade fixed income market.
Guardian Emerging MSCI Emerging Markets The MSCI Emerging Markets Index is designed to be Markets Equity Fund Index (Net, C$) a broad measure of emerging market equity performance in developing markets outside North America.
Guardian Fixed Income FTSE Canada 1-10 Year The FTSE Canada 1-10 Year Laddered Government Select Fund Laddered Government Bond Bond Index is designed to be a laddered index Index (20%)/ FTSE Canada structure for government bonds rated “A” or higher, 1-10 Year Laddered denominated in Canadian dollars and selected from the Corporate Bond Index (80%) FTSE Canada Universe Bond Index. The FTSE Canada 1-10 Year Laddered Corporate Bond Index is designed to be a laddered index structure for corporate bonds rated “A” or higher, denominated in Canadian dollars and selected from the FTSE Canada Universe Bond Index.
Guardian Fundamental MSCI World Index (Net, C$) The MSCI World Index is designed to be a broad Global Equity Fund measure of both large and mid-cap equities across developed countries.
Guardian Capital Funds Simplified Prospectus 25
Fund Reference Index Description of Reference Index
Guardian International MSCI EAFE Index (Total The MSCI EAFE Index is designed to represent the Equity Select Fund Return, Unhedged, C$) performance of large and mid-cap equity securities across 21 developed markets, including countries in Europe, Australasia and the Far East, excluding the U.S. and Canada.
Guardian Investment FTSE Canada Mid Term The FTSE Canada Mid Term Corporate Bond Index is Grade Corporate Bond Corporate Bond Index designed to be a broad measure of the Canadian Fund investment-grade fixed income market. Its constituents have 5-10 year maturities.
Guardian Managed MSCI World Index (Net, C$) The MSCI World Index is designed to be a broad Growth Portfolio (55%)/ S&P/TSX Capped measure of both large and mid-cap equities across Composite Index (25%)/ developed countries. The S&P/TSX Capped FTSE Canada Universe Bond Composite Index is designed to be a broad measure of Index (20%) the largest companies listed on the Toronto Stock Exchange, with the relative weighting of each stock capped at 10%. The FTSE Canada Universe Bond Index is designed to be a broad measure of the Canadian investment grade fixed income market.
Guardian Managed FTSE Canada Universe The FTSE Canada Universe Bond Index is designed to Income & Growth Bond Index (40%)/ MSCI be a broad measure of the Canadian investment grade Portfolio World Index (Net, C$) fixed income market. The MSCI World Index is (30%)/ S&P/TSX Capped designed to be a broad measure of both large and mid- Composite Index (30%) cap equities across developed countries. The S&P/TSX Capped Composite Index is designed to be a broad measure of the largest companies listed on the Toronto Stock Exchange, with the relative weighting of each stock capped at 10%.
Guardian Managed FTSE Canada Universe Bond The FTSE Canada Universe Bond Index is designed to Income Portfolio Index (60%)/ MSCI World be a broad measure of the Canadian investment grade Index (Net, C$) (20%)/ fixed income market. The MSCI World Index is S&P/TSX Capped designed to be a broad measure of both large and mid- Composite Index (20%) cap equities across developed countries. The S&P/TSX Capped Composite Index is designed to be a broad measure of the largest companies listed on the Toronto Stock Exchange, with the relative weighting of each stock capped at 10%.
Guardian Risk Managed FTSE Canada Universe Bond The FTSE Canada Universe Bond Index is designed to Conservative Portfolio Index (75%)/ MSCI World be a broad measure of the Canadian investment grade Index (Net, C$) (25%) fixed income market. The MSCI World Index is designed to be a broad measure of both large and mid- cap equities across developed countries.
Guardian Short Duration FTSE Canada Short Term The FTSE Canada Short Term Overall Bond Index is Bond Fund Overall Bond Index designed to be a broad measure of the Canadian investment grade short-term fixed income market.
Guardian Capital Funds Simplified Prospectus 26
Fund Reference Index Description of Reference Index
Guardian U.S. Equity All S&P 500 Index (Total The S&P 500 Index is designed to measure the Cap Growth Fund Return, Unhedged, C$) performance of the large-cap segment of the U.S. equity market, and is composed of 500 constituent companies.
Guardian U.S. Equity S&P 500 Index (Total The S&P 500 Index is designed to measure the Select Fund Return, Unhedged, C$) performance of the large-cap segment of the U.S. equity market, and is composed of 500 constituent companies.
The risk classification assigned to each Fund is approved by our Chief Compliance Officer. We also review the risk classification for each Fund at least annually, as well as if there is a material change in a Fund’s risk profile that may affect its classification, or a change in the Fund’s investment objective or investment strategy.
The methodology that the Manager uses to identify the investment risk level of each Fund is available at no cost by calling us at 1-866-383-6546 or by writing to us at [email protected].
Who should invest in this Fund? This section will help you decide whether a Fund is right for you. This information is only a guide. When you are choosing investments, you should, together with your investment and tax advisor, consider your whole portfolio, your investment objectives and your risk tolerance level.
Distribution policy This tells you how often you will receive a distribution and how it is paid. Each Fund makes distributions to Unitholders if and when it has amounts to distribute. Distributions on Units from all of the Funds are automatically reinvested in additional Units of the same Fund, unless you tell us in writing that you prefer to receive cash.
Each of the Funds has the ability to make distributions as returns of capital.
Fund expenses indirectly borne by investors Each Fund pays the applicable Management Fee in respect of its Series A, Series C, Series F, Series W Units and Series WF Units to the Manager and, where applicable, its affiliates. Each Fund pays the applicable Administration Fee to the Manager and is also responsible for the payment of other operating expenses. The Management Fee, the Administration Fee and the other operating expenses are paid out of the assets of the Fund, which means that you indirectly pay for these expenses through lower returns.
The table in this section lets you compare the cost of investing in each series of Units of the Fund with the cost of investing in other mutual funds. The table shows the cumulative expenses you would have paid if:
You invested $1,000 for the periods shown (without any sales charge);
The Fund’s return was 5% each year; and
The Fund paid the same expenses in each period shown as it did in its last completed financial year.
The Management Fee is described on page 16 of this Simplified Prospectus, and is charged in respect of the Series A, Series C, Series F, Series W and Series WF Units at the rate shown under Fund Details for each applicable Fund, beginning at page 27. The Administration Fee is described beginning on page 17 of this Simplified Prospectus, and is charged at rates shown under Fund Details for each Fund, beginning at page 27. The table does not reflect the trading expenses and certain taxes borne by a Fund, as such expenses are not included in the MER in accordance with law.
See Fees and expenses on page 16 for more information about the cost of investing in the Funds.
Guardian Capital Funds Simplified Prospectus 27
Guardian Canadian Bond Fund
Fund Details The Fund may be invested in foreign pay Canadian issues and securities of foreign issuers. A maximum of Fund type Canadian Bond 30% of the Fund may be held in foreign-denominated Securities offered Series A (formerly, Series securities. W), Series F and Series I Units of a mutual fund The Fund does not invest in securities issued by a trust corporation in respect of which the majority of revenue Start date Series A Units: April 4, is derived from the manufacture or distribution of 2012 tobacco-related products. Series F Units: April 22, 2019 The Fund may invest up to 10% of its assets in Series I Units: March 30, securities of other mutual funds, as described on 2011* page 24. Registered plan Qualified investment for eligibility registered plans The Fund may use derivatives to hedge against Administration fee Series A Units: 0.04% potential loss in respect of foreign-denominated Series F Units: 0.04% securities. The Fund will only use derivatives as Series I Units: 0.04% permitted by Canadian securities regulatory Management fee Series A Units: 0.80% authorities. Series F Units: 0.30% Portfolio manager Guardian Capital LP The Fund may enter into securities lending, repurchase Toronto, Ontario and reverse repurchase transactions to earn additional * Series I Units were previously offered on a private returns, subject, in each case, to limits at least as placement basis since January 3, 1997. stringent as those required by Canadian securities regulatory authorities. For a description of these What does the Fund invest in? transactions and how the Fund reduces the risks associated with these transactions, please see the Investment objectives discussion under Repurchase and reverse repurchase transactions and securities lending risk on page 8. The primary objective of the Fund is the provision of a high level of current interest income while at the We may actively trade the Fund’s investments, which same time preserving capital and seeking opportunities can increase trading costs and, in turn, lower the for capital appreciation primarily through investments Fund’s returns. It also increases the possibility that you in Canadian bonds, debentures, notes or other will receive taxable capital gains if you hold Units of evidence of indebtedness. the Fund in a non-registered account.
The investment objectives of the Fund can only be The Fund may hold all or a portion of its assets in cash, changed with the approval of a majority of the money market instruments, bonds or other debt Unitholders at a meeting called for such purpose. securities in response to adverse market, economic and/or political conditions or for defensive or other Investment strategies purposes. As a result, the Fund may not be fully invested in accordance with its investment objectives. We use a pro-active, disciplined management approach while employing various analytical tools to identify investments that offer value on a relative basis with a view to maximizing current income while preserving the prospect for some capital growth. We adhere to a risk management process that is designed to limit total exposure to individual issuers, diversify exposure to various term maturities and credit risks, and maintain portfolio liquidity.
Guardian Capital Funds Simplified Prospectus 28 Guardian Canadian Bond Fund (continued)
What are the risks of investing in the Fund? income tax. The Fund may also make distributions of income, capital gains and capital at such other times as The following are the risks associated with an we consider appropriate. Distributions on Units are investment in the Fund: automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to Active management risk receive cash. Credit risk Currency risk Fund expenses indirectly borne by investors Cyber security risk Debt securities risk Please see Fund expenses indirectly borne by investors Derivatives risk on page 27 for a description of the expenses included in, and the assumptions required to be used in, this Foreign investment risk table. Our actual costs may be higher or lower. Interest rate risk Large transaction risk Market disruption risk Expenses payable over: Repurchase, reverse repurchase and 1 year 3 years 5 years 10 securities lending risk years Series risk Tax risk Series A $12.10 $38.13 $66.83 $152.13
For a detailed description of these mutual fund risks, Series F $4.00 $12.61 $22.10 $50.29 see What are the specific risks of investing in a mutual Series I $0.51 $1.62 $2.83 $6.45 fund? beginning on page 4.
As at March 31, 2021, one Unitholder held Units representing approximately 20.12% of the net asset value of the Fund. See Large transaction risk on page 7 for a description of the risks associated with possible redemption requests by these investors.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a core Canadian fixed-income fund for your portfolio; You want exposure to a portfolio of debt securities issued by Canadian companies; and You are comfortable with low investment risk.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
Each quarter, the Fund will distribute an amount calculated based on the Fund’s net income for the quarter. The Fund will distribute enough of its undistributed net income and net realized capital gains in December so that it does not have to pay ordinary
Guardian Capital Funds Simplified Prospectus 29
Guardian Canadian Equity Fund
Fund details sector categories of the S&P/TSX Capped Composite Index. Fund type Canadian Equity Securities offered Series I Units of a mutual The Fund will maintain a Canadian equity focus. fund trust However, due to increased global integration and Start date Series I Units: March 30, cross-border corporate transactions, the Fund may 2011* invest up to 10% of its market value in individual Registered plan Qualified investment for foreign equities that have either significant business eligibility registered plans operations in Canada or are listed on the TSX. Administration fee Series I Units: 0.15% Portfolio manager Guardian Capital LP The Fund does not invest in securities issued by a Toronto, Ontario corporation in respect of which the majority of revenue * Series I Units were previously offered on a private is derived from the manufacture or distribution of placement basis since December 1, 1985. tobacco-related products.
The Fund may invest up to 10% of its assets in What does the Fund invest in? securities of other mutual funds, as described on page 24. Investment objectives The Fund may use derivatives to hedge against The primary objective of the Fund is the achievement potential loss. The Fund may also use derivatives for of long-term growth of capital while maintaining non-hedging purposes, including options, futures and steady current dividend income, primarily through the forward contracts, in order to gain exposure to certain investment in common shares or other equity-related securities without investing directly in such securities, investments issued by Canadian companies. to reduce the impact of currency fluctuations on the Fund or to provide protection for the Fund’s portfolio. The investment objectives of the Fund can only be The Fund will only use derivatives as permitted by changed with the approval of a majority of the Canadian securities regulatory authorities. For a Unitholders at a meeting called for such purpose. description of the nature of each type of derivative that may be used by the Fund, please see the discussion Investment strategies under Derivatives risk on page 5.
We primarily use a fundamental, bottom-up approach The Fund may enter into securities lending, repurchase to security analysis. We identify companies that we and reverse repurchase transactions to earn additional believe have the potential for significant long-term returns, subject, in each case, to limits at least as capital growth, and invest in the securities of those stringent as those required by Canadian securities which can be obtained at a reasonable price. regulatory authorities. For a description of these transactions and how the Fund reduces the risks In conducting our analysis, we evaluate the financial associated with these transactions, please see the condition and management of the company, its discussion under Repurchase and reverse repurchase industry and relevant economic factors. As part of this transactions and securities lending risk on page 8. evaluation, we: The Fund may hold all or a portion of its assets in cash, analyze financial data and other money market instruments, bonds or other debt information services relevant to the issuer; securities in response to adverse market, economic assess the quality of company and/or political conditions or for defensive or other management; and purposes. As a result, the Fund may not be fully conduct company interviews, as deemed invested in accordance with its investment objectives. necessary.
The Fund maintains a large capitalization bias and is diversified by sector, normally investing in at least 8
Guardian Capital Funds Simplified Prospectus 30 Guardian Canadian Equity Fund (continued)
What are the risks of investing in the Fund? Fund expenses indirectly borne by investors
The following are the risks associated with an Please see Fund expenses indirectly borne by investors investment in the Fund: on page 27 for a description of the expenses included in, and the assumptions required to be used in, this Active management risk table. Our actual costs may be higher or lower. Cyber security risk Derivatives risk Expenses payable over: Equity risk Large transaction risk 1 year 3 years 5 years 10 Market disruption risk years Repurchase, reverse repurchase and Series I $1.74 $5.49 $9.63 $21.91 securities lending risk Series risk Tax risk
For a detailed description of these mutual fund risks, see What are the specific risks of investing in a mutual fund? beginning on page 4.
As at March 31, 2021, three Unitholders held Units representing approximately 24.68%, 21.25% and 11.30%, respectively, of the net asset value of the Fund. See Large transaction risk on page 7 for a description of the risks associated with possible redemption requests by these investors.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a core Canadian equity fund for your portfolio; You are comfortable with medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
The Fund distributes any net income and net realized capital gains in December of each year. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Guardian Capital Funds Simplified Prospectus 31
Guardian Canadian Equity Income Fund
Fund details due to increased global integration and cross-border corporate transactions, the Fund may invest up to 20% Fund type Canadian Equity and of its market value in individual foreign equities that Income have either significant business operations in Canada Securities offered Series I and Series W Units or are listed on the TSX. of a mutual fund trust Start date Series I Units: March 30, The Fund may invest in convertible debentures up to a 2011* maximum of 20% of the market value of the Fund. Series W Units: April 4, 2012 The Fund may invest up to 10% of its assets in Registered plan Qualified investment for securities of other mutual funds, as described on eligibility registered plans page 24. Administration fee Series I Units: 0.18% Series W Units: 0.18% The Fund may use derivatives only to hedge against Management fee Series W Units: 1.50% foreign currencies. The Fund will only use derivatives Portfolio manager Guardian Capital LP as permitted by Canadian securities regulatory Toronto, Ontario authorities. * Series I Units were previously offered on a private placement basis since February 14, 2003. The Fund may enter into securities lending, repurchase and reverse repurchase transactions to earn additional returns, subject, in each case, to limits at least as What does the Fund invest in? stringent as those required by Canadian securities regulatory authorities. For a description of these Investment objectives transactions and how the Fund reduces the risks associated with these transactions, please see the The principal objective of the Fund is the achievement discussion under Repurchase and reverse repurchase of a high level of stable income, with an attractive total transactions and securities lending risk on page 8. return, by investing primarily in Canadian dividend-paying equity securities, income trust units The Fund may hold all or a portion of its assets in cash, and other flow-through securities. money market instruments, bonds or other debt securities in response to adverse market, economic The investment objectives of the Fund can only be and/or political conditions or for defensive or other changed with the approval of a majority of the purposes. As a result, the Fund may not be fully Unitholders at a meeting called for such purpose. invested in accordance with its investment objectives.
Investment strategies What are the risks of investing in the Fund?
The Fund may invest in any income-oriented equity The following are the risks associated with an security, including, but not limited to, common investment in the Fund: equities, income trusts and real estate investment trusts (REITs). Income trusts structured as limited Active management risk partnerships are permitted. Credit risk Currency risk We primarily use a fundamental, bottom-up approach Cyber security risk to security analysis. We seek out income trusts and Derivatives risk higher yielding equities with stable and predictable Equity risk revenue and cash flow, a diversified customer base, Foreign investment risk and focused management, and invest in the securities Income trust risk of those which can be obtained at a reasonable price. Large transaction risk The Fund will be broadly diversified by issuer. The Market disruption risk Fund will maintain a Canadian equity focus. However,
Guardian Capital Funds Simplified Prospectus 32 Guardian Canadian Equity Income Fund (continued)
Repurchase, reverse repurchase and Fund expenses indirectly borne by investors securities lending risk Series risk Please see Fund expenses indirectly borne by investors Tax risk on page 27 for a description of the expenses included in, and the assumptions required to be used in, this For a detailed description of these mutual fund risks, table. Our actual costs may be higher or lower. see What are the specific risks of investing in a mutual fund? beginning on page 4. Expenses payable over:
As at March 31, 2021, one Unitholder held Units 1 year 3 years 5 years 10 representing approximately 71.09% of the net asset years value of the Fund. See Large transaction risk on page 6 for a description of the risks associated with possible Series I $2.05 $6.46 $11.32 $25.78 redemption requests by this investor. Series W $19.48 $61.40 $107.61 $244.95
Who should invest in this Fund?
This Fund may be suitable for you if:
You are seeking to maximize your after-tax income in your non-registered account; You are comfortable with medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
Each quarter, the Fund will distribute an amount calculated based on the Fund’s net income for the quarter. The Fund will distribute enough of its undistributed net income and net realized capital gains in December so that it does not have to pay ordinary income tax. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Guardian Capital Funds Simplified Prospectus 33
Guardian Canadian Equity Select Fund
Fund details securities without investing directly in such securities, to reduce the impact of currency fluctuations on the Fund type Canadian Equity Fund or to provide protection for the Fund’s portfolio. Securities offered Series I Units of a mutual The Fund will only use derivatives as permitted by fund trust Canadian securities regulatory authorities. For a Start date Series I Units: April 28, description of the nature of each type of derivative that 2017* may be used by the Fund, please see the discussion Registered plan Qualified investment for under Derivatives risk on page 5. eligibility registered plans Administration fee Series I Units: 0.18% The Fund may enter into securities lending, repurchase Portfolio manager Guardian Capital LP and reverse repurchase transactions to earn additional Toronto, Ontario returns, subject, in each case, to limits at least as * Series I Units were previously offered on a private stringent as those required by Canadian securities placement basis since August 29, 2016. regulatory authorities. For a description of these transactions and how the Fund reduces the risks What does the Fund invest in? associated with these transactions, please see the discussion under Repurchase and reverse repurchase Investment objectives transactions and securities lending risk on page 8.
The primary objective of the Fund is the achievement The Fund may hold all or a portion of its assets in cash, of a high level of stable income, with an attractive total money market instruments, bonds or other debt return, by investing primarily in Canadian dividend- securities in response to adverse market, economic paying equity securities and income trust units. and/or political conditions or for defensive or other purposes. As a result, the Fund may not be fully The investment objectives of the Fund can only be invested in accordance with its investment objectives. changed with the approval of a majority of the Unitholders at a meeting called for such purpose. What are the risks of investing in the Fund?
Investment strategies The following are the risks associated with an investment in the Fund: We invest primarily in securities of mid- to large-size Canadian companies that have a track record of paying Active management risk and growing dividends. The Fund is broadly Cyber security risk diversified by sector and seeks a dividend yield that is Derivatives risk competitive with the market, normally holding Equity risk between 15 and 30 issuers. Income trust risk Large transaction risk The Fund will maintain a Canadian equity focus. Market disruption risk However, due to increased global integration and Repurchase, reverse repurchase and cross-border corporate transactions, the Fund may securities lending risk invest up to 10% of its market value in individual Series risk foreign equities that have either significant business Tax risk operations in Canada or are listed on the TSX. For a detailed description of these mutual fund risks, The Fund may invest up to 10% of its assets in see What are the specific risks of investing in a mutual securities of other mutual funds, as described on fund? beginning on page 4. page 24. As at March 31, 2021, two Unitholders held Units The Fund may use derivatives to hedge against representing approximately 13.06% and 11.48%, potential loss. The Fund may also use derivatives for respectively, of the net asset value of the Fund. See non-hedging purposes, including options, futures and Large transaction risk on page 6 for a description of forward contracts, in order to gain exposure to certain
Guardian Capital Funds Simplified Prospectus 34 Guardian Canadian Equity Select Fund (continued)
the risks associated with possible redemption requests by these investors.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a core Canadian equity fund for your portfolio; You are comfortable with medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
Each quarter, the Fund will distribute an amount calculated based on the Fund’s net income for the quarter. The Fund will distribute enough of its undistributed net income and net realized capital gains in December so that it does not have to pay ordinary income tax. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Fund expenses indirectly borne by investors
Please see Fund expenses indirectly borne by investors on page 27 for a description of the expenses included in, and the assumptions required to be used in, this table. Our actual costs may be higher or lower.
Expenses payable over:
1 year 3 years 5 years 10 years
Series I $2.05 $6.46 $11.32 $25.78
Guardian Capital Funds Simplified Prospectus 35
Guardian Canadian Focused Equity Fund
Fund details evaluation, we may conduct interviews with company management and analyze financial data and other Fund type Canadian Equity information sources relevant to the issuer. Securities offered Series A (formerly, Series W), Series F and Series I The Fund will normally hold a concentrated portfolio Units of a mutual fund of 15-20 issuers. The Fund normally invests in at least trust 5 sector categories of the S&P/TSX Capped Start date Series A Units: April 22, Composite Index. 2016 Series F Units: April 22, The Fund will maintain a Canadian equity focus. 2019 However, due to increased global integration and cross Series I Units: April 22, border corporate transactions, the Fund may invest up 2016* to 15% of its market value in individual foreign Registered plan Qualified investment for equities that have either significant business eligibility registered plans operations in Canada or are listed on the TSX. Administration fee Series A Units: 0.18% Series F Units: 0.18% The Fund may invest up to 10% of its assets in Series I Units: 0.18% securities of other mutual funds, as described on Management fee Series A Units: 1.50% page 24. Series F Units: 0.50% Portfolio manager Guardian Capital LP The Fund may use derivatives to hedge against Toronto, Ontario potential loss. The Fund may also use derivatives for * Series I Units were previously offered on a private non-hedging purposes, including options, futures and placement basis since December 15, 2015. forward contracts, in order to gain exposure to certain securities without investing directly in such securities, What does the Fund invest in? to reduce the impact of currency fluctuations on the Fund or to provide protection for the Fund’s portfolio. Investment objectives The Fund will only use derivatives as permitted by Canadian securities regulatory authorities. For a The primary objective of the Fund is the achievement description of the nature of each type of derivative that of long-term growth of capital, primarily through the may be used by the Fund, please see the discussion investment in a concentrated portfolio of common under Derivatives risk on page 5. shares or other equity-related investments issued by Canadian companies. The Fund may enter into securities lending, repurchase and reverse repurchase transactions to earn additional The investment objectives of the Fund can only be returns, subject, in each case, to limits at least as changed with the approval of a majority of the stringent as those required by Canadian securities Unitholders at a meeting called for such purpose. regulatory authorities. For a description of these transactions and how the Fund reduces the risks Investment strategies associated with these transactions, please see the discussion under Repurchase and reverse repurchase We primarily use a fundamental, bottom up approach transactions and securities lending risk on page 8. to security analysis. We identify companies that we believe have the potential for significant long-term We may actively trade the Fund’s investments, which capital growth based on specific quality drivers, and can increase trading costs and, in turn, lower the invest in the securities of those which can be obtained Fund’s returns. It also increases the possibility that you at a reasonable price. will receive taxable capital gains if you hold Units of the Fund in a non-registered account. In conducting our analysis, we evaluate the financial condition and management of the company, its The Fund may hold all or a portion of its assets in cash, industry and relevant economic factors. As part of this money market instruments, bonds or other debt
Guardian Capital Funds Simplified Prospectus 36 Guardian Canadian Focused Equity Fund (continued)
securities in response to adverse market, economic Distribution policy and/or political conditions or for defensive or other purposes. As a result, the Fund may not be fully The Fund distributes any net income and net realized invested in accordance with its investment objectives. capital gains in December of each year. The Fund may also make distributions of income, capital gains and What are the risks of investing in the Fund? capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in The following are the risks associated with an additional Units of the Fund, unless you tell us in investment in the Fund: writing that you prefer to receive cash.
Active management risk Fund expenses indirectly borne by investors Cyber security risk Derivatives risk Please see Fund expenses indirectly borne by investors Equity risk on page 27 for a description of the expenses included Large transaction risk in, and the assumptions required to be used in, this Market disruption risk table. Our actual costs may be higher or lower. Repurchase, reverse repurchase and securities lending risk Expenses payable over: Series risk 1 year 3 years 5 years 10 Tax risk years
For a detailed description of these mutual fund risks, Series A $19.48 $61.40 $107.61 $244.95 see What are the specific risks of investing in a mutual fund? beginning on page 4. Series F $7.89 $24.88 $43.61 $99.27 Series I $2.05 $6.46 $11.32 $25.78 As at March 31, 2021, two Unitholders held Units representing approximately 14.99% and 14.61%, respectively, of the net asset value of the Fund. See Large transaction risk on page 7 for a description of the risks associated with possible redemption requests by these investors.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for Canadian equity exposure for your portfolio; You are comfortable with medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Guardian Capital Funds Simplified Prospectus 37
Guardian Canadian Growth Equity Fund
Fund details cross-border corporate transactions, the Fund may invest up to 10% of its market value in individual Fund type Canadian Equity foreign equities that have either significant business Securities offered Series I Units of a mutual operations in Canada or are listed on the TSX. fund trust Start date Series I Units: March 30, The Fund may invest up to 10% of its assets in 2011* securities of other mutual funds, as described on Registered plan Qualified investment for page 24. eligibility registered plans Administration fee Series I Units: 0.18% The Fund may use derivatives to hedge against Portfolio manager Guardian Capital LP potential loss. The Fund may also use derivatives for Toronto, Ontario non-hedging purposes, including options, futures and * Series I Units were previously offered on a private forward contracts, in order to gain exposure to certain placement basis since July 31, 1986. securities without investing directly in such securities, to reduce the impact of currency fluctuations on the Fund or to provide protection for the Fund’s portfolio. What does the Fund invest in? The Fund will only use derivatives as permitted by Canadian securities regulatory authorities. For a Investment objectives description of the nature of each type of derivative that may be used by the Fund, please see the discussion The primary objective of the Fund is the achievement under Derivatives risk on page 5. of long-term growth of capital primarily through the investment in the equity securities of Canadian issuers The Fund may enter into securities lending, repurchase with a growth orientation that are reasonably priced and reverse repurchase transactions to earn additional within the market. returns, subject, in each case, to limits at least as stringent as those required by Canadian securities The investment objectives of the Fund can only be regulatory authorities. For a description of these changed with the approval of a majority of the transactions and how the Fund reduces the risks Unitholders at a meeting called for such purpose. associated with these transactions, please see the discussion under Repurchase and reverse repurchase Investment strategies transactions and securities lending risk on page 8.
We primarily use a disciplined, fundamental The Fund may hold all or a portion of its assets in cash, bottom-up approach to security analysis. We identify money market instruments, bonds or other debt companies that we believe have an entrepreneurial securities in response to adverse market, economic spirit, a unique product or service, and/or strong and/or political conditions or for defensive or other earnings growth momentum, and invest in the purposes. As a result, the Fund may not be fully securities of those which can be obtained at a invested in accordance with its investment objectives. reasonable price. What are the risks of investing in the Fund? In conducting our analysis, we evaluate the financial condition and management of the company. As part of The following are the risks associated with an this evaluation, we may conduct interviews with investment in the Fund: company management and analyze financial data and other information sources relevant to the issuer. Active management risk Currency risk The Fund will normally hold a concentrated portfolio Cyber security risk of 30 to 40 issuers. Derivatives risk Equity risk The Fund will maintain a Canadian equity focus. Foreign investment risk However, due to increased global integration and
Guardian Capital Funds Simplified Prospectus 38 Guardian Canadian Growth Equity Fund (continued)
Large transaction risk Fund expenses indirectly borne by investors Market disruption risk Repurchase, reverse repurchase and Please see Fund expenses indirectly borne by investors securities lending risk on page 27 for a description of the expenses included Series risk in, and the assumptions required to be used in, this Tax risk table. Our actual costs may be higher or lower.
For a detailed description of these mutual fund risks, Expenses payable over: see What are the specific risks of investing in a mutual fund? beginning on page 4. 1 year 3 years 5 years 10 years As at March 31, 2021, one Unitholder held Units Series I $2.05 $6.46 $11.32 $25.78 representing approximately 44.31% of the net asset value of the Fund. See Large transaction risk on page 7 for a description of the risks associated with possible redemption requests by these investors.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a core Canadian equity fund for your portfolio; You are comfortable with medium investment risk; You are seeking long-term capital growth from your investment; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
The Fund distributes any net income and net realized capital gains in December of each year. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Guardian Capital Funds Simplified Prospectus 39
Guardian Canadian Short-Term Investment Fund
Fund details The Fund will invest primarily in high credit quality issues that have been scrutinized for credit quality Fund type Canadian Money through an ongoing internal credit quality assessment Market across qualitative and quantitative factors. Spread Securities offered Series I and Series W analysis and duration-neutral strategies, such as Units of a mutual fund barbell and bullet structures, are used for adding value trust through sector allocation and security selection. Start date Series I Units: March 30, 2011* The Fund may enter into securities lending, repurchase Series W Units: April and reverse repurchase transactions to earn additional 4, 2012 returns, subject, in each case, to limits at least as Registered plan Qualified investment stringent as those required by Canadian securities eligibility for registered plans regulatory authorities. For a description of these Administration fee Series I Units: 0.02% transactions and how the Fund reduces the risks Series W Units: 0.02% associated with these transactions, please see the Management fee Series W Units: 0.50% discussion under Repurchase and reverse repurchase Portfolio manager Guardian Capital LP transactions and securities lending risk on page 8. Toronto, Ontario * Series I Units were previously offered on a private Although the Fund intends to maintain a constant price placement basis since February 2, 2009. for its Units, there is no guarantee that the price will not go up or down.
What does the Fund invest in? What are the risks of investing in the Fund?
Investment objectives The following are the risks associated with an investment of the Fund: The primary objective of the Fund is the preservation of capital together with earning income through Active management risk investments in high quality, short-term fixed-income Credit risk securities. Cyber security risk Debt securities risk The investment objective of the Fund can only be Interest rate risk changed with the approval of a majority of the Large transaction risk Unitholders at a meeting called for such purpose. Market disruption risk Repurchase, reverse repurchase and Investment strategies securities lending risk Series risk In order to qualify as a “money market fund” within the meaning of National Instrument 81-102 – Specialization risk Investment Funds (NI 81-102), the Fund has adopted Tax risk the standard restrictions related to investments of money market funds set out in NI 81-102. For a detailed description of these mutual fund risks, see What are the specific risks of investing in a mutual We use fundamental analysis and other rational fund? beginning on page 4. measures of value to identify and actively manage high quality, short-term (less than one year) fixed-income As at March 31, 2021, one Unitholder held Units securities issued or guaranteed primarily by representing approximately 10.94% of the net asset governments, Canadian corporations and Canadian value of the Fund. See Large transaction risk on chartered banks. We target a weighted average credit page 7 for a description of the risks associated with rating of “AA”. possible redemption requests by this investor.
Guardian Capital Funds Simplified Prospectus 40 Guardian Canadian Short-Term Investment Fund (continued)
During the 12 months preceding March 31, 2021, up to 10.27% of the net assets of the Fund were invested in securities of Canadian Imperial Bank of Commerce.
Who should invest in this Fund?
This Fund may be suitable for you if:
You want a more secure investment with low investment risk; and You are looking for a short-term investment.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
Each month, the Fund will distribute an amount calculated based on the Fund’s net income for the month. The Fund will distribute enough of its undistributed net income and net realized capital gains in December so that it does not have to pay ordinary income tax. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Fund expenses indirectly borne by investors
Please see Fund expenses indirectly borne by investors on page 27 for a description of the expenses included in, and the assumptions required to be used in, this table. Our actual costs may be higher or lower.
Expenses payable over:
1 year 3 years 5 years 10 years
Series I $0.21 $0.66 $1.15 $2.59
Series W $2.77 $8.73 $15.29 $34.80
Guardian Capital Funds Simplified Prospectus 41
Guardian Directed Equity Path Portfolio (formerly, Guardian SteadyPace Equity Fund)
Fund details use of derivatives including, without limitation, buying or selling a combination of put and/or call Fund type Global Equity options. The Fund employs this strategy to reduce Securities offered Series A (formerly, Series exposure to market declines, while recognizing that W), Series F and Series I the Fund may not fully benefit from strong equity Units of a mutual fund trust market growth. Start date Series A Units: January 22, 2019 The Fund is diversified by sector, normally holding Series F Units: April 22, between 20 and 40 issuers. 2019 Series I Units: January 22, The Fund is diversified globally but maintains a U.S. 2019 equity bias, targeting a minimum 50% allocation to Registered plan Qualified investment for U.S. equities. eligibility registered plans Administration fee Series A Units: 0.18% The Fund will use derivatives to hedge against Series F Units: 0.18% potential loss. The Fund will also use derivatives for Series I Units: 0.18% non-hedging purposes, including put and/or call Management fee Series A Units: 1.85% options, futures, forward contracts and swaps, in order Series F Units: 0.85% to gain exposure to certain securities without investing Portfolio manager Guardian Capital LP directly in such securities, to reduce the impact of Toronto, Ontario currency fluctuations on the Fund or to provide protection for the Fund’s portfolio. The Fund will only What does the Fund invest in? use derivatives as permitted by Canadian securities regulatory authorities. For a description of the nature of each type of derivative that may be used by the Investment objectives Fund, please see the discussion under Derivatives risk on page 5. The primary objective of the Fund is to seek to preserve the value of the Fund’s investments and The Fund may enter into securities lending, repurchase provide long-term capital appreciation with reduced and reverse repurchase transactions to earn additional portfolio volatility, by investing directly and indirectly returns, subject, in each case, to limits at least as primarily in global equity securities of high quality stringent as those required by Canadian securities companies. regulatory authorities. For a description of these transactions and how the Fund reduces the risks The investment objectives of the Fund can only be associated with these transactions, please see the changed with the approval of a majority of the discussion under Repurchase and reverse repurchase Unitholders at a meeting called for such purpose. transactions and securities lending risk on page 8. Investment strategies We may actively trade the Fund’s investments, which can increase trading costs and, in turn, lower the We primarily use a fundamental bottom-up approach Fund’s returns. It also increases the possibility that you to security analysis. The Fund maintains a global will receive taxable capital gains if you hold Units of equity focus and invests primarily in securities of mid- the Fund in a non-registered account. to large-size companies that have a track record of sustained earnings growth. The Fund also invests in The Fund may hold all or a portion of its assets in cash, sector and market exchange traded funds. money market instruments, bonds or other debt securities in response to adverse market, economic The Fund seeks to manage the downside risks of the and/or political conditions or for defensive or other equity securities in which the Fund invests through the
Guardian Capital Funds Simplified Prospectus 42 Guardian Directed Equity Path Portfolio (continued)
purposes. As a result, the Fund may not be fully Distribution policy invested in accordance with its investment objectives. The Fund will make monthly distributions based on a What are the risks of investing in the Fund? target annualized monthly distribution of 4% of the Series NAV per Unit at the end of the prior year. The The following are the risks associated with an target monthly distributions may be comprised of investment in the Fund: income, capital gains or capital. The Fund will distribute enough of its undistributed net income and Active management risk net realized capital gains in December so that it does Capital erosion risk not have to pay ordinary income tax. The Fund may Currency risk also make distributions of income, capital gains and Cyber security risk capital at such other times as we consider appropriate. Derivatives risk Distributions on Units are automatically reinvested in Equity risk additional Units of the Fund, unless you tell us in Foreign investment risk writing that you prefer to receive cash. Large transaction risk Liquidity risk Fund expenses indirectly borne by investors Market disruption risk Repurchase, reverse repurchase and Please see Fund expenses indirectly borne by investors securities lending risk on page 27 for a description of the expenses included Series risk in, and the assumptions required to be used in, this Tax risk table. Our actual costs may be higher or lower. For a detailed description of these mutual fund risks, Expenses payable over: see What are the specific risks of investing in a mutual fund? beginning on page 4. 1 year 3 years 5 years 10 years
As at March 31, 2021, three Unitholders held Units Series A $23.58 $74.32 $130.27 $296.52 representing approximately 33.83%, 20.39% and 15.47%, respectively, of the net asset value of the Series F $10.97 $34.58 $60.61 $137.95 Fund. See Large transaction risk on page 7 for a Series I $2.15 $6.78 $11.89 $27.07 description of the risks associated with possible redemption requests by these investors.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a portfolio that preserves and grows capital over the long- term, while reducing portfolio volatility; You want to diversify your portfolio globally; You are comfortable with low to medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Guardian Capital Funds Simplified Prospectus 43
Guardian Directed Premium Yield Portfolio (formerly, Guardian SteadyFlow Equity Fund)
Fund details buying or selling a combination of put and/or call options. The Fund employs this strategy to reduce Fund type Global Equity exposure to market declines, while recognizing that Securities offered Series A (formerly, Series the Fund may not fully benefit from strong equity W), Series F and Series I market growth. Units of a mutual fund trust Start date Series A Units: January 22, The Fund is diversified by sector, normally holding 2019 between 20 and 40 issuers. The Fund is diversified Series F Units: April 22, globally but maintains a U.S. equity bias, targeting a 2019 minimum 50% allocation to U.S. equities. Series I Units: January 22, 2019 The Fund will use derivatives to hedge against Registered plan Qualified investment for potential loss. The Fund will also use derivatives for eligibility registered plans non-hedging purposes, including put and/or call Administration fee Series A Units: 0.18% options, futures, forward contracts and swaps, in order Series F Units: 0.18% to gain exposure to certain securities without investing Series I Units: 0.18% directly in such securities, to reduce the impact of Management fee Series A Units: 1.85% currency fluctuations on the Fund or to provide Series F Units: 0.85% protection for the Fund’s portfolio. The Fund will only Portfolio manager Guardian Capital LP use derivatives as permitted by Canadian securities Toronto, Ontario regulatory authorities. For a description of the nature of each type of derivative that may be used by the
Fund, please see the discussion under Derivatives risk What does the Fund invest in? on page on page 5. Investment objectives The Fund may enter into securities lending, repurchase and reverse repurchase transactions to earn additional The primary objective of the Fund is to provide long- returns, subject, in each case, to limits at least as term capital appreciation and to reduce portfolio stringent as those required by Canadian securities volatility, by investing directly and indirectly regulatory authorities. For a description of these primarily in global equity securities of high quality transactions and how the Fund reduces the risks companies. associated with these transactions, please see the discussion under Repurchase and reverse repurchase The investment objectives of the Fund can only be transactions and securities lending risk on page 8. changed with the approval of a majority of the Unitholders at a meeting called for such purpose. We may actively trade the Fund’s investments, which can increase trading costs and, in turn, lower the Investment strategies Fund’s returns. It also increases the possibility that you will receive taxable capital gains if you hold Units of We primarily use a fundamental bottom-up approach the Fund in a non-registered account. to security analysis. The Fund maintains a global equity focus and invests primarily in securities of mid- The Fund may hold all or a portion of its assets in cash, to large-size companies that have a track record of money market instruments, bonds or other debt sustained earnings growth. The Fund also invests in securities in response to adverse market, economic sector and market exchange traded funds. and/or political conditions or for defensive or other purposes. As a result, the Fund may not be fully The Fund seeks to manage the downside risks of the invested in accordance with its investment objectives. equity securities in which the Fund invests through the use of derivatives including, without limitation,
Guardian Capital Funds Simplified Prospectus 44 Guardian Directed Premium Yield Portfolio (continued)
What are the risks of investing in the Fund? target monthly distributions may be comprised of income, capital gains or capital. The Fund will The following are the risks associated with an distribute enough of its undistributed net income and investment in the Fund: net realized capital gains in December so that it does not have to pay ordinary income tax. The Fund may Active management risk also make distributions of income, capital gains and Capital erosion risk capital at such other times as we consider appropriate. Currency risk Distributions on Units are automatically reinvested in Cyber security risk additional Units of the Fund, unless you tell us in Derivatives risk writing that you prefer to receive cash. Equity risk Foreign investment risk Fund expenses indirectly borne by investors Large transaction risk Liquidity risk Please see Fund expenses indirectly borne by investors Market disruption risk on page 27 for a description of the expenses included Repurchase, reverse repurchase and in, and the assumptions required to be used in, this securities lending risk table. Our actual costs may be higher or lower. Series risk Tax risk Expenses payable over:
For a detailed description of these mutual fund risks, 1 year 3 years 5 years 10 years see What are the specific risks of investing in a mutual fund? beginning on page 4. Series A $23.47 $74.00 $129.70 $295.24
As at March 31, 2021, three Unitholders held Units Series F $11.69 $36.84 $64.57 $146.97 representing approximately 27.46%, 19.89% and Series I $2.15 $6.78 $11.89 $27.07 15.79%, respectively, of the net asset value of the Fund. See Large transaction risk on page 7 for a description of the risks associated with possible redemption requests by these investors.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a portfolio that produces long-term capital growth, while reducing portfolio volatility; You want to diversify your portfolio globally; You are comfortable with medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
The Fund will make monthly distributions based on a target annualized monthly distribution of 6% of the Series NAV per Unit at the end of the prior year. The
Guardian Capital Funds Simplified Prospectus 45
Guardian Emerging Markets Equity Fund
Fund details The Fund may use derivatives only to hedge against potential loss in respect of foreign-denominated Fund type Foreign Equity securities and foreign currencies. The Fund will only Securities offered Series A (formerly, Series use derivatives as permitted by Canadian securities W), Series F and Series I regulatory authorities. Units of a mutual fund trust The Fund may hold all or a portion of its assets in cash, Start date Series A Units: April 22, money market instruments, bonds or other debt 2016 securities in response to adverse market, economic Series F Units: April 30, and/or political conditions or for defensive or other 2021 purposes. As a result, the Fund may not be fully Series I Units: April 22, invested in accordance with its investment objectives. 2016* Registered plan Qualified investment for What are the risks of investing in the Fund? eligibility registered plans Administration fee Series A Units: 0.19% The following are the risks associated with an Series F Units: 0.19% investment in the Fund: Series I Units: 0.19% Management fee Series A Units: 1.85% Active management risk Series F Units: 0.85% Currency risk Portfolio manager Guardian Capital LP Cyber security risk Toronto, Ontario Derivatives risk Sub-Adviser GuardCap Asset Equity risk Management Limited Foreign investment risk London, United Kingdom Large transaction risk * Series I Units were previously offered on a private Liquidity risk placement basis since June 30, 2014. Market disruption risk Repurchase, reverse repurchase and What does the Fund invest in? securities lending risk Series risk Investment objectives Tax risk The primary objective of the Fund is to provide long- term capital appreciation by investing primarily in For a detailed description of these mutual fund risks, equity or equity-related securities with exposure to see What are the specific risks of investing in a mutual emerging market economies. fund? beginning on page 4.
The investment objectives of the Fund can only be As at March 31, 2021, two Unitholders held Units changed with the approval of a majority of the representing approximately 25.00% and 16.30%, Unitholders at a meeting called for such purpose. respectively, of the net asset value of the Fund. See Large transaction risk on page 7 for a description of Investment strategies the risks associated with possible redemption requests by these investors.
The sub-adviser uses a disciplined, fundamental During the 12 months preceding March 31, 2021, up bottom-up approach to security selection. The Fund is to 10.46% of the net assets of the Fund were invested diversified by issuer, sector and geographic region, in securities of MercadoLibre, Inc. without being subject to minimum or maximum allocation constraints by country.
The Fund may invest up to 10% of its assets in securities of other mutual funds, as described on page 24.
Guardian Capital Funds Simplified Prospectus 46 Guardian Emerging Markets Equity Fund (continued)
Who should invest in this Fund?
This Fund may be suitable for you if:
You are seeking long-term capital growth from your investment; You want to diversify your portfolio with emerging markets exposure; You are comfortable with medium to high investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
The Fund distributes any net income and net realized capital gains in December of each year. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Fund expenses indirectly borne by investors
Please see Fund expenses indirectly borne by investors on page 27 for a description of the expenses included in, and the assumptions required to be used in, this table. Our actual costs may be higher or lower.
Expenses payable over:
1 year 3 years 5 years 10 years
Series A $24.81 $78.21 $137.07 $312.00
Series I $2.26 $7.12 $12.47 $28.37
No information is included in this table for Series F Units because Series F Units are new.
Guardian Capital Funds Simplified Prospectus 47
Guardian Fixed Income Select Fund
Fund details The Fund may invest up to 10% of its assets in securities of other mutual funds, as described on Fund type Canadian Bond page 24. Securities offered Series I Units of a mutual fund trust The Fund may use derivatives to hedge against Start date Series I Units: April 4, 2012 potential loss. The Fund may also use derivatives for Registered plan Qualified investment for non-hedging purposes, including options, futures and eligibility registered plans forward contracts, in order to gain exposure to certain Administration fee Series I Units: 0.10% securities without investing directly in such securities, Portfolio manager Guardian Capital LP to reduce the impact of currency fluctuations on the Toronto, Ontario Fund or to provide protection for the Fund’s portfolio. Sub-Adviser Guardian Capital The Fund will only use derivatives as permitted by Advisors LP Canadian securities regulatory authorities. For a Toronto, Ontario description of the nature of each type of derivative that may be used by the Fund, please see the discussion What does the Fund invest in? under Derivatives risk on page 5.
Investment objectives The Fund may enter into securities lending, repurchase and reverse repurchase transactions to earn additional The primary objective of the Fund is to generate an returns, subject, in each case, to limits at least as above-average income stream, primarily through stringent as those required by Canadian securities investments in investment grade corporate bonds, regulatory authorities. For a description of these debentures, notes or other evidence of indebtedness. transactions and how the Fund reduces the risks associated with these transactions, please see the The investment objectives of the Fund can only be discussion under Repurchase and reverse repurchase changed with the approval of a majority of the transactions and securities lending risk on page 8. Unitholders at a meeting called for such purpose. The Fund may hold all or a portion of its assets in cash, Investment strategies money market instruments, bonds or other debt securities in response to adverse market, economic The sub-adviser uses a disciplined management and/or political conditions or for defensive or other purposes. As a result, the Fund may not be fully approach while employing various analytical tools to invested in accordance with its investment objectives. identify investments that offer value on a relative basis with a view to maximizing current income while preserving the prospect for some capital growth. The What are the risks of investing in the Fund? sub-adviser will, under normal conditions, adhere to a laddered approach designed to diversify exposure to The following are the risks associated with an various term maturities and maintain portfolio investment in the Fund: liquidity. The Fund will also be diversified by issuer and by number of issues. Active management risk Credit risk The Fund may be invested in foreign pay Canadian Currency risk issues, real return bonds, mortgage-backed securities Cyber security risk and securities of foreign issuers. A maximum of 10% Debt securities risk of the Fund may be held in foreign-dominated Foreign investment risk securities. Debt securities issued or guaranteed by the Interest rate risk government of Canada or any Canadian province may Market disruption risk be held in the Fund from time to time. Repurchase, reverse repurchase and securities lending risk
Guardian Capital Funds Simplified Prospectus 48 Guardian Fixed Income Select Fund (continued)
Series risk Tax risk
For a detailed description of these mutual fund risks, see What are the specific risks of investing in a mutual fund? beginning on page 4.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a core investment grade corporate bond fund for your portfolio; You want the potential for higher income from corporate bonds; and You are comfortable with low investment risk.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
Each month, the Fund will distribute an amount calculated based on the Fund’s net income for the month. The Fund will distribute enough of its undistributed net income and net realized capital gains in December so that it does not have to pay ordinary income tax. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Fund expenses indirectly borne by investors
Please see Fund expenses indirectly borne by investors on page 27 for a description of the expenses included in, and the assumptions required to be used in, this table. Our actual costs may be higher or lower.
Expenses payable over:
1 year 3 years 5 years 10 years
Series I $1.13 $3.55 $6.23 $14.19
Guardian Capital Funds Simplified Prospectus 49
Guardian Fundamental Global Equity Fund
Fund details The Fund may use derivatives only to hedge against potential loss in respect of foreign-denominated Fund type Global Equity securities and foreign currencies. The Fund will only Securities offered Series I, Series W and use derivatives as permitted by Canadian securities Series WF Units of a mutual regulatory authorities. fund trust Start date Series I Units: April 22, The Fund may hold all or a portion of its assets in cash, 2015* money market instruments, bonds or other debt Series W Units: April 22, securities in response to adverse market, economic 2015 and/or political conditions or for defensive or other Series WF Units: April 22, purposes. As a result, the Fund may not be fully 2020 invested in accordance with its investment objectives. Registered plan Qualified investment for eligibility registered plans What are the risks of investing in the Fund? Administration fee Series I Units: 0.19% Series W Units: 0.19% The following are the risks associated with an Series WF Units: 0.19% investment in the Fund: Management fee Series W Units: 1.50% Series WF Units: 0.50% Active management risk Portfolio manager Guardian Capital LP Currency risk Toronto, Ontario Cyber security risk Sub-Adviser GuardCap Asset Derivatives risk Management Limited Equity risk London, United Kingdom Foreign investment risk * Series I Units were previously offered on a private Large transaction risk placement basis since July 31, 2014. Market disruption risk Repurchase, reverse repurchase and What does the Fund invest in? securities lending risk Series risk Investment objectives Tax risk
The primary objective of the Fund is to achieve long- For a detailed description of these mutual fund risks, term capital appreciation through investment in a see What are the specific risks of investing in a mutual portfolio of high quality equity or equity-related fund? beginning on page 4. securities of issuers throughout the world.
As at March 31, 2021, two Unitholders held Units The investment objectives of the Fund can only be representing approximately 15.06% and 10.49%, changed with the approval of a majority of the respectively, of the net asset value of the Fund. See Unitholders at a meeting called for such purpose. Large transaction risk on page 7 for a description of the risks associated with possible redemption requests Investment strategies by these investors. The sub-adviser uses a disciplined, fundamental bottom-up approach to security selection. The Fund is broadly diversified by issuer, sector and geographic region, without being subject to minimum or maximum allocation constraints by country.
The Fund may invest up to 10% of its assets in securities of other mutual funds, as described on page 24.
Guardian Capital Funds Simplified Prospectus 50 Guardian Fundamental Global Equity Fund (continued)
Who should invest in this Fund?
This Fund may be suitable for you if:
You are seeking long-term capital growth from your investment; You want to diversify your portfolio globally; You are comfortable with medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
Each quarter, the Fund will distribute an amount calculated based on the Fund’s net income for the quarter. The Fund will distribute enough of its undistributed net income and net realized capital gains in December so that it does not have to pay ordinary income tax. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Fund expenses indirectly borne by investors
Please see Fund expenses indirectly borne by investors on page 27 for a description of the expenses included in, and the assumptions required to be used in, this table. Our actual costs may be higher or lower.
Expenses payable over:
1 year 3 years 5 years 10 years
Series I $2.15 $6.78 $11.89 $27.07
Series W $19.48 $61.40 $107.61 $244.95
Series WF $8.00 $25.20 $44.18 $100.55
Guardian Capital Funds Simplified Prospectus 51
Guardian High Yield Bond Fund
Fund details Investment-grade issues may be held in the Fund from time to time. Fund type Canadian High Yield Bond Securities offered Series I and Series W Units The Fund may invest up to 10% of its assets in of a mutual fund trust securities of other mutual funds, as described on Start date Series I Units: March 30, page 24. 2011* Series W Units: April 4, The Fund may use derivatives to hedge against 2012 potential loss. Currency hedging may be used against Registered plan Qualified investment for foreign currency positions. The Fund may also use eligibility registered plans derivatives for non-hedging purposes, including Administration fee Series I Units: 0.18% options, futures and forward contracts, in order to gain Series W Units: 0.18% exposure to certain securities without investing Management fee Series W Units: 1.30% directly in such securities, to reduce the impact of Portfolio manager Guardian Capital LP currency fluctuations on the Fund or to provide Toronto, Ontario protection for the Fund’s portfolio. The Fund will only * Series I Units were previously offered on a private use derivatives as permitted by Canadian securities placement basis since May 1, 1999. regulatory authorities. For a description of the nature of each type of derivative that may be used by the What does the Fund invest in? Fund, please see the discussion under Derivatives risk on page 5. Investment objectives The Fund may enter into securities lending, repurchase The primary objective of the Fund is to generate a high and reverse repurchase transactions to earn additional level of interest income by investing predominantly in returns, subject, in each case, to limits at least as high-yield bonds and debentures issued primarily by stringent as those required by Canadian securities Canadian corporations and other Canadian entities, as regulatory authorities. For a description of these well as other securities, such as high-yield bonds transactions and how the Fund reduces the risks offered in the non-Canadian marketplace, as the associated with these transactions, please see the portfolio manager may from time to time determine. discussion under Repurchase and reverse repurchase transactions and securities lending risk on page 8. The investment objectives of the Fund can only be changed with the approval of a majority of the The Fund may hold all or a portion of its assets in cash, Unitholders at a meeting called for such purpose. money market instruments, bonds or other debt securities in response to adverse market, economic Investment strategies and/or political conditions or for defensive or other purposes. As a result, the Fund may not be fully We may invest the Fund’s assets in high yield bonds invested in accordance with its investment objectives. offered in the Canadian or non-Canadian marketplace, as well as debentures and similar securities. We may What are the risks of investing in the Fund? elect to invest a portion of the Fund’s assets in securities denominated in foreign currencies and/or in The following are the risks associated with an securities issued by foreign entities. More than half of investment in the Fund: the Fund’s assets could potentially be invested in securities of foreign issuers. Active management risk Credit risk The Fund is diversified by issuer and industry. We Currency risk maintain an income orientation, focusing on yield Cyber security risk maximization in the context of rigorous credit Debt securities risk analysis. Derivatives risk
Guardian Capital Funds Simplified Prospectus 52 Guardian High Yield Bond Fund (continued)
Equity risk we consider appropriate. Distributions on Units are Foreign investment risk automatically reinvested in additional Units of the Interest rate risk Fund, unless you tell us in writing that you prefer to Large transaction risk receive cash. Liquidity risk Market disruption risk Fund expenses indirectly borne by investors Repurchase, reverse repurchase and securities lending risk Please see Fund expenses indirectly borne by investors Series risk on page 27 for a description of the expenses included in, and the assumptions required to be used in, this Smaller company risk table. Our actual costs may be higher or lower. Tax risk
For a detailed description of these mutual fund risks, Expenses payable over: see What are the specific risks of investing in a mutual 1 year 3 years 5 years 10 fund? beginning on page 4. years As at March 31, 2021, two Unitholder held Units representing approximately 45.48% and 19.95%, Series I $2.05 $6.46 $11.32 $25.78 respectively, of the net asset value of the Fund. See Series W $17.12 $53.96 $94.59 $215.31 Large transaction risk on page 7 for a description of the risks associated with possible redemption requests by this investor.
During the 12 months preceding March 31, 2021, up to 17.08% of the net assets of the Fund were invested in securities of Canadian Imperial Bank of Commerce.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for income and the potential for capital gains through investments in non-investment grade bonds; You are comfortable with low to medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
Each month, the Fund will distribute an amount calculated based on the Fund’s net income for the month. The Fund will distribute enough of its undistributed net income and net realized capital gains in December so that it does not have to pay ordinary income tax. The Fund may also make distributions of income, capital gains and capital at such other times as
Guardian Capital Funds Simplified Prospectus 53
Guardian i3 Global Dividend Growth Fund (formerly, Guardian Global Dividend Growth Fund)
Fund details both capital growth and sustainable dividend yield. In making our assessment, we place particular focus on Fund type Global Equity dividend growth and dividend quality. Securities offered Series I, Series W and Series WF Units of a mutual fund The Fund maintains a large capitalization bias and is trust broadly diversified by issuer, sector and geographic Start date Series I Units: March 30, region. 2011* Series W Units: November 2, The Fund may invest up to 10% of its assets in 2011 securities of other mutual funds, as described on Series WF Units: April 30, page 24. 2021 Registered plan Qualified investment for The Fund may use derivatives to hedge against eligibility registered plans potential loss. The Fund may also use derivatives for Administration fee Series I Units: 0.19% non-hedging purposes, including options, futures and Series W Units: 0.19% forward contracts, in order to gain exposure to certain Series WF Units: 0.19% securities without investing directly in such securities, Management fee Series W Units: 1.50% to reduce the impact of currency fluctuations on the Series WF Units: 0.50% Fund or to provide protection for the Fund’s portfolio. Portfolio manager Guardian Capital LP The Fund will only use derivatives as permitted by Toronto, Ontario Canadian securities regulatory authorities. For a * Series I Units were previously offered on a private description of the nature of each type of derivative that placement basis since May 31, 2010. may be used by the Fund, please see the discussion under Derivatives risk on page 5. What does the Fund invest in? The Fund may enter into securities lending, repurchase Investment objectives and reverse repurchase transactions to earn additional returns, subject, in each case, to limits at least as The primary objective of the Fund is the achievement stringent as those required by Canadian securities of attractive dividend income coupled with long-term regulatory authorities. For a description of these growth of capital, primarily through investment in a transactions and how the Fund reduces the risks portfolio of equity or equity-related securities of associated with these transactions, please see the issuers with business operations located throughout discussion under Repurchase and reverse repurchase the world. transactions and securities lending risk on page 8.
The investment objectives of the Fund can only be The Fund may hold all or a portion of its assets in cash, changed with the approval of a majority of the money market instruments, bonds or other debt Unitholders at a meeting called for such purpose. securities in response to adverse market, economic and/or political conditions or for defensive or other Investment strategies purposes. As a result, the Fund may not be fully invested in accordance with its investment objectives. We employ a system-driven bottom-up research approach to assess relative value and capital growth potential within a broad stock-selection universe. We use a quantitative approach to analyze multiple fundamental factors and incorporate financial data and other information sources relevant to the issuer, including rates of change of fundamental factors. We seek out companies that we believe have potential for
Guardian Capital Funds Simplified Prospectus 54 Guardian i3 Global Dividend Growth Fund (continued)
What are the risks of investing in the Fund? income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are The following are the risks associated with an automatically reinvested in additional Units of the investment of the Fund: Fund, unless you tell us in writing that you prefer to receive cash. Active management risk Currency risk Fund expenses indirectly borne by investors Cyber security risk Equity risk Please see Fund expenses indirectly borne by investors Foreign investment risk on page 27 for a description of the expenses included Large transaction risk in, and the assumptions required to be used in, this table. Our actual costs may be higher or lower. Market disruption risk Repurchase, reverse repurchase and securities lending risk Expenses payable over: Series risk 1 year 3 years 5 years 10 Tax risk years
For a detailed description of these mutual fund risks, Series I $2.15 $6.78 $11.89 $27.07 see What are the specific risks of investing in a mutual fund? beginning on page 4. Series W $19.17 $60.43 $105.92 $241.10
As at March 31, 2021, three Unitholders held Units No information is included in this table for Series WF representing approximately 21.55%, 13.15% and Units because Series WF Units are new. 11.90%, respectively, of the net asset value of the Fund. See Large transaction risk on page 7 for a description of the risks associated with possible redemption requests by these investors.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are seeking long-term capital growth from your investment; You want to diversify your portfolio globally; You are comfortable with low to medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
Each quarter, the Fund will distribute an amount calculated based on the Fund’s net income for the quarter. The Fund will distribute enough of its undistributed net income and net realized capital gains in December so that it does not have to pay ordinary income tax. The Fund may also make distributions of
Guardian Capital Funds Simplified Prospectus 55
Guardian i3 Global Quality Growth Fund (formerly, Guardian Global Equity Fund)
Fund details The Fund may invest up to 10% of its assets in securities of other mutual funds, as described on Fund type Global Equity page 24. Securities offered Series A, Series F and Series I Units of a unit trust The Fund may use derivatives to hedge against Start date Series A Units: April 30, 2021 potential loss. The Fund may also use derivatives for Series F Units: April 30, 2021 non-hedging purposes, including options, futures and Series I Units: March 30, 2011* forward contracts, in order to gain exposure to certain Registered plan Qualified investment for securities without investing directly in such securities, eligibility registered plans to reduce the impact of currency fluctuations on the Administration fee Series A Units: 0.19% Fund or to provide protection for the Fund’s portfolio. Series F Units: 0.19% The Fund will only use derivatives as permitted by Series I Units: 0.19% Canadian securities regulatory authorities. For a Management fee Series A Units: 1.65% description of the nature of each type of derivative that Series F Units: 0.65% may be used by the Fund, please see the discussion Portfolio manager Guardian Capital LP Toronto, under Derivatives risk on page 5. Ontario * Series I Units were previously offered on a private The Fund may enter into securities lending, repurchase placement basis since July 10, 1998. and reverse repurchase transactions to earn additional returns, subject, in each case, to limits at least as stringent as those required by Canadian securities What does the Fund invest in? regulatory authorities. For a description of these transactions and how the Fund reduces the risks Investment objectives associated with these transactions, please see the discussion under Repurchase and reverse repurchase The primary objective of the Fund is the achievement transactions and securities lending risk on page 8. of long-term growth of capital primarily through the investment in a portfolio of equity or equity-related We may actively trade the Fund’s investments, which securities of issuers with business operations located can increase trading costs and, in turn, lower the throughout the world. Fund’s returns. It also increases the possibility that you will receive taxable capital gains if you hold Units of The investment objectives of the Fund can only be the Fund in a non-registered account. changed with the approval of a majority of the Unitholders at a meeting called for such purposes. The Fund may hold all or a portion of its assets in cash, money market instruments, bonds or other debt Investment strategies securities in response to adverse market, economic and/or political conditions or for defensive or other We employ a system-driven bottom-up research purposes. As a result, the Fund may not be fully approach to assess relative value and capital growth invested in accordance with its investment objectives. potential within a broad stock-selection universe. We use a quantitative approach to analyze multiple fundamental factors and incorporate financial data and other information sources relevant to the issuer, including rates of change of fundamental factors.
The Fund maintains a mid-large capitalization bias and is broadly diversified by issuer, sector and geographic region, seeking to isolate stock selection as the primary source of alpha.
Guardian Capital Funds Simplified Prospectus 56 Guardian i3 Global Quality Growth Fund (continued)
What are the risks of investing in the Fund? Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in The following are the risks associated with an writing that you prefer to receive cash. investment of the Fund: Fund expenses indirectly borne by investors Active management risk Currency risk Please see Fund expenses indirectly borne by investors Cyber security risk on page 27 for a description of the expenses included Equity risk in, and the assumptions required to be used in, this Foreign investment risk table. Our actual costs may be higher or lower. Large transaction risk Market disruption risk Expenses payable over: Liquidity risk 1 year 3 years 5 years 10 Repurchase, reverse repurchase and years securities lending risk Series risk Series I $2.26 $7.12 $12.47 $28.37 Smaller company risk
Tax risk No information is included in this table for Series A Units and Series F Units because Series A Units and For a detailed description of these mutual fund risks, Series F Units are new. see What are the specific risks of investing in a mutual fund? beginning on page 4.
As at March 31, 2021, three Unitholders held Units representing approximately 40.98%, 30.45% and 19.59%, respectively, of the net asset value of the Fund. See Large transaction risk on page 7 for a description of the risks associated with possible redemption requests by these investors.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are seeking long-term capital growth from your investment; You want to diversify your portfolio globally; You are comfortable with medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
The Fund distributes any net income and net realized capital gains in December of each year. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate.
Guardian Capital Funds Simplified Prospectus 57
Guardian i3 International Quality Growth Fund (formerly, Guardian International Equity Fund)
Fund details The Fund may invest up to 10% of its assets in securities of other mutual funds, as described on Fund type International Equity page 24. Securities offered Series A, Series F and Series I Units of a mutual The Fund may use derivatives to hedge against fund trust potential loss. The Fund may also use derivatives for Start date Series A Units: April 30, non-hedging purposes, including options, futures and 2021 forward contracts, in order to gain exposure to certain Series F Units: April 30, securities without investing directly in such securities, 2021 to reduce the impact of currency fluctuations on the Series I Units: March 30, Fund or to provide protection for the Fund’s portfolio. 2011* The Fund will only use derivatives as permitted by Registered plan Qualified investment for Canadian securities regulatory authorities. For a eligibility registered plans description of the nature of each type of derivative that Administration fee Series A Units: 0.19% may be used by the Fund, please see the discussion Series F Units: 0.19% under Derivatives risk on page 5. Series I Units: 0.19% Management fee Series A Units: 1.65% The Fund may enter into securities lending, repurchase Series F Units: 0.65% and reverse repurchase transactions to earn additional Portfolio manager Guardian Capital LP returns, subject, in each case, to limits at least as Toronto, Ontario stringent as those required by Canadian securities * Series I Units were previously offered on a private regulatory authorities. For a description of these placement basis since January 3, 1997. transactions and how the Fund reduces the risks associated with these transactions, please see the What does the Fund invest in? discussion under Repurchase and reverse repurchase transactions and securities lending risk on page 8. Investment objectives We may actively trade the Fund’s investments, which The primary objective of the Fund is the achievement can increase trading costs and, in turn, lower the of long-term growth of capital primarily through Fund’s returns. It also increases the possibility that you investment in equity and equity-related securities of will receive taxable capital gains if you hold Units of issuers outside of North America. the Fund in a non-registered account.
The investment objective of the Fund can only be The Fund may hold all or a portion of its assets in cash, changed with the approval of a majority of the money market instruments, bonds or other debt Unitholders at a meeting called for such purpose. securities in response to adverse market, economic and/or political conditions or for defensive or other Investment strategies purposes. As a result, the Fund may not be fully invested in accordance with its investment objectives. We employ a system-driven bottom-up research approach to assess relative value and capital growth What are the risks of investing in the Fund? potential within a broad stock-selection universe. We use a quantitative approach to analyze multiple The following are the risks associated with an fundamental factors and incorporate financial data and investment of the Fund: other information sources relevant to the issuer, including rates of change of fundamental factors. Active management risk Currency risk The Fund maintains a mid-large capitalization bias and Cyber security risk is broadly diversified by issuer, sector and geographic Equity risk region, seeking to isolate stock selection as the Foreign investment risk primary source of alpha. Large transaction risk
Guardian Capital Funds Simplified Prospectus 58 Guardian i3 Global Quality Growth Fund (continued)
Liquidity risk Expenses payable over: Market disruption risk Repurchase, reverse repurchase and 1 year 3 years 5 years 10 securities lending risk years Series risk Series I $2.26 $7.12 $12.47 $28.37 Smaller company risk Tax risk No information is included in this table for Series A For a detailed description of these mutual fund risks, Units and Series F Units because Series A Units and see What are the specific risks of investing in a mutual Series F Units are new. fund? beginning on page 4.
As at March 31, 2021, one Unitholder held Units representing approximately 72.39% of the net asset value of the Fund. See Large transaction risk on page 7 for a description of the risks associated with possible redemption requests by this investor.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are seeking long-term capital growth from your investment; You want to diversify your portfolio outside of North America; You are comfortable with medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
The Fund distributes any net income and net realized capital gains in December of each year. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Fund expenses indirectly borne by investors
Please see Fund expenses indirectly borne by investors on page 27 for a description of the expenses included in, and the assumptions required to be used in, this table. Our actual costs may be higher or lower.
Guardian Capital Funds Simplified Prospectus 59
Guardian International Equity Select Fund
Fund details Fund or to provide protection for the Fund’s portfolio. The Fund will only use derivatives as permitted by Fund type International Equity Canadian securities regulatory authorities. For a Securities offered Series I Units of a mutual description of the nature of each type of derivative that fund trust may be used by the Fund, please see the discussion Start date Series I Units: April 28, under Derivatives risk on page 5. 2017* Registered plan Qualified investment for The Fund may enter into securities lending, repurchase eligibility registered plans and reverse repurchase transactions to earn additional Administration fee Series I Units: 0.18% returns, subject, in each case, to limits at least as Portfolio manager Guardian Capital LP stringent as those required by Canadian securities Toronto, Ontario regulatory authorities. For a description of these * Series I Units were previously offered on a private transactions and how the Fund reduces the risks placement basis since August 29, 2016. associated with these transactions, please see the discussion under Repurchase and reverse repurchase What does the Fund invest in? transactions and securities lending risk on page 8.
Investment objectives We may actively trade the Fund’s investments, which can increase trading costs and, in turn, lower the The primary objective of the Fund is the achievement Fund’s returns. It also increases the possibility that you of a high level of stable income, with an attractive total will receive taxable capital gains if you hold Units of return, by investing primarily in international the Fund in a non-registered account. dividend-paying equity securities. The Fund may hold all or a portion of its assets in cash, The investment objective of the Fund can only be money market instruments, bonds or other debt changed with the approval of a majority of the securities in response to adverse market, economic Unitholders at a meeting called for such purpose. and/or political conditions or for defensive or other purposes. As a result, the Fund may not be fully Investment strategies invested in accordance with its investment objectives.
We maintain an international equity focus and invest What are the risks of investing in the Fund? primarily in securities of mid- to large-size international companies that have a track record of The following are the risks associated with an paying and growing dividends. International markets investment of the Fund: are defined as those countries included in the MSCI EAFE Index. Securities are selected primarily from Active management risk developed markets, but the Fund may invest in Currency risk emerging market securities. The Fund is broadly Cyber security risk diversified by sector and seeks a dividend yield that is Derivatives risk competitive with the market, normally holding Equity risk between 15 and 30 issuers. Foreign investment risk Large transaction risk The Fund may invest up to 10% of its assets in Market disruption risk securities of other mutual funds, as described on Repurchase, reverse repurchase and page 24. securities lending risk Series risk The Fund may use derivatives to hedge against Tax risk potential loss. The Fund may also use derivatives for non-hedging purposes, including options, futures and For a detailed description of these mutual fund risks, forward contracts, in order to gain exposure to certain see What are the specific risks of investing in a mutual securities without investing directly in such securities, fund? beginning on page 4. to reduce the impact of currency fluctuations on the
Guardian Capital Funds Simplified Prospectus 60 Guardian International Equity Select Fund (continued)
As at March 31, 2021, one Unitholder held Units representing approximately 24.09% of the net asset value of the Fund. See Large transaction risk on page 7 for a description of the risks associated with possible redemption requests by this investor.
Who should invest in this Fund?
This Fund may be suitable for you if:
You want to diversify your portfolio outside of North America; You are comfortable with medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
Each quarter, the Fund will distribute an amount calculated based on the Fund’s net income for the quarter. The Fund will distribute enough of its undistributed net income and net realized capital gains in December so that it does not have to pay ordinary income tax. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Fund expenses indirectly borne by investors
Please see Fund expenses indirectly borne by investors on page 27 for a description of the expenses included in, and the assumptions required to be used in, this table. Our actual costs may be higher or lower.
Expenses payable over:
1 year 3 years 5 years 10 years
Series I $2.05 $6.46 $11.32 $25.78
Guardian Capital Funds Simplified Prospectus 61
Guardian Investment Grade Corporate Bond Fund
Fund details A maximum of 30% of the Fund may be held in foreign currency denominated securities. Fund type Canadian Bond Securities offered Series A, Series F and The Fund does not invest in securities issued by a Series I Units of a mutual corporation in respect of which the majority of revenue fund trust is derived from the manufacture or distribution of Start date Series A Units: April 30, tobacco-related products. 2021 Series F Units: April 30, The Fund may invest up to 10% of its assets in 2021 securities of other mutual funds, as described on Series I Units: April 20, page 24. 2018 Registered plan Qualified investment for The Fund may use derivatives to hedge against eligibility registered plans potential loss in respect of foreign currency Administration fee Series A Units: 0.10% denominated securities. The Fund will only use Series F Units: 0.10% derivatives as permitted by Canadian securities Series I Units: 0.10% regulatory authorities. Management fee Series A Units: 0.90% Series F Units: 0.40% The Fund may enter into securities lending, repurchase Portfolio manager Guardian Capital LP and reverse repurchase transactions to earn additional Toronto, Ontario returns, subject, in each case, to limits at least as stringent as those required by Canadian securities What does the Fund invest in? regulatory authorities. For a description of these transactions and how the Fund reduces the risks Investment objectives associated with these transactions, please see the discussion under Repurchase and reverse repurchase The primary objective of the Fund is to provide transactions and securities lending risk on page 8. investors with a higher level of income by investing primarily in mid-term investment grade corporate We may actively trade the Fund’s investments, which bonds. can increase trading costs and, in turn, lower the Fund’s returns. It also increases the possibility that you The investment objectives of the Fund can only be will receive taxable capital gains if you hold Units of changed with the approval of a majority of the the Fund in a non-registered account. Unitholders at a meeting called for such purpose. The Fund may hold all or a portion of its assets in cash, Investment strategies money market instruments, bonds or other debt securities in response to adverse market, economic We use a pro-active, disciplined management and/or political conditions or for defensive or other approach while employing proprietary analytical tools purposes. As a result, the Fund may not be fully to identify corporate bond investments that offer value invested in accordance with its investment objectives. on a relative basis with a view to maximizing current income. We adhere to a risk management process that What are the risks of investing in the Fund? is designed to limit total exposure to individual issuers, diversify exposure to various term maturities and The following are the risks associated with an credit risks, and maintain portfolio liquidity. investment in the Fund:
The Fund’s investments will generally be comprised Active management risk of bonds, notes, debentures, or other evidences of Credit risk indebtedness of primarily Canadian corporations, and Currency risk can also include similar types of securities of non- Cyber security risk Canadian issuers. The Fund may also be invested in Debt securities risk mortgage-backed securities. Derivatives risk
Guardian Capital Funds Simplified Prospectus 62
Guardian Investment Grade Corporate Bond Fund (continued)
Foreign investment risk Fund expenses indirectly borne by investors Interest rate risk Large transaction risk Please see Fund expenses indirectly borne by investors Market disruption risk on page 27 for a description of the expenses included Repurchase, reverse repurchase and in, and the assumptions required to be used in, this securities lending risk table. Our actual costs may be higher or lower. Tax risk Expenses payable over: For a detailed description of these mutual fund risks, see What are the specific risks of investing in a mutual 1 year 3 years 5 years 10 fund? beginning on page 4. years Series I 0.11% $1.13 $3.55 $6.23 As at March 31, 2021, three Unitholders held Units representing approximately 29.69%, 14.25% and 11.97%, respectively, of the net asset value of the No information is included in this table for Series A Fund. See Large transaction risk on page 7 for a Units and Series F Units because Series A Units and description of the risks associated with possible Series F Units are new. redemption requests by these investors
During the 12 months preceding March 31, 2021, up to 10.02% of the net assets of the Fund were invested in securities of Canadian Imperial Bank of Commerce.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a Canadian corporate bond fund for your portfolio; You want the potential for higher income from investment grade corporate bonds; and You are comfortable with low investment risk.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
Each quarter, the Fund will distribute an amount calculated based on the Fund’s net income for the quarter. The Fund will distribute enough of its undistributed net income and net realized capital gains in December so that it does not have to pay ordinary income tax. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Guardian Capital Funds Simplified Prospectus 63
Guardian Managed Balanced Portfolio (formerly, Guardian Balanced Fund)
Fund details incorporated in these two asset classes. If the asset mix between equities and bonds varies by more than 15% Fund type Tactical Balanced from the long-term mix, the Fund is normally Securities offered Series I and Series W rebalanced. Units of a mutual fund trust Within its long-term mix, the Fund invests in a core Start date Series I Units: March 30, portfolio and, from time to time, a satellite portfolio. 2011* The Fund’s core portfolio currently consists entirely of Series W Units: April 4, holdings in units of Guardian Canadian Bond Fund, 2012 Guardian Canadian Equity Fund, Guardian Registered plan Qualified investment for Fundamental Global Equity Fund and Guardian i3 eligibility registered plans Global Dividend Growth Fund. On a tactical basis, the Administration fee Series I Units: 0.04% Fund may also invest from time to time in a satellite Series W Units: 0.04% portfolio consisting of securities of other Funds, Management fee Series W Units: 1.50% mutual funds, exchange-traded funds and other Portfolio manager Guardian Capital LP securities that are consistent with the Fund’s Toronto, Ontario investment objectives. * Series I Units were previously offered on a private placement basis since July 31, 1995. The Fund may use derivatives to hedge against potential loss. The Fund may also use derivatives for non-hedging purposes, including options, futures and What does the Fund invest in? forward contracts, in order to gain exposure to certain securities without investing directly in such securities, Investment objectives to reduce the impact of currency fluctuations on the Fund or to provide protection for the Fund’s portfolio. The primary objective of the Fund is the achievement The Fund will only use derivatives as permitted by of a balance between long-term growth of capital and Canadian securities regulatory authorities. For a reasonable income through diversified investments in description of the nature of each type of derivative that equity or equity-related securities and in fixed-income may be used by the Fund, please see the discussion securities, either long-term or short-term. under Derivatives risk on page 5. The Fund may also be exposed to derivatives, used for hedging or non- The investment objective of the Fund can only be hedging purposes, through its investments in changed with the approval of a majority of the underlying funds. Unitholders at a meeting called for such purpose. The Fund may enter into securities lending, repurchase Investment strategies and reverse repurchase transactions to earn additional returns, subject, in each case, to limits at least as The Fund invests in securities of other investment stringent as those required by Canadian securities funds managed by us, and may also invest in other regulatory authorities. For a description of these securities, including exchange traded funds, to achieve transactions and how the Fund reduces the risks its objectives. associated with these transactions, please see the discussion under Repurchase and reverse repurchase We use strategic and tactical asset allocation to create transactions and securities lending risk on page 8. a portfolio diversified by investment style, asset class and geographic region, with an emphasis on growth of The Fund may hold all or a portion of its assets in cash, capital. The portfolio generally includes exposure to money market instruments, bonds or other debt Canadian equities, developed market global equities securities in response to adverse market, economic and investment grade fixed-income securities. and/or political conditions or for defensive or other purposes. As a result, the Fund may not be fully Currently, the Fund’s long-term asset mix policy is invested in accordance with its investment objectives. 60% stocks and 40% bonds, with cash reserves
Guardian Capital Funds Simplified Prospectus 64 Guardian Managed Balanced Portfolio (continued)
What are the risks of investing in the Fund? Please see Investment risk classification methodology on page 25 for a description of how we determine this The following are the risks associated with an risk tolerance level. investment in the Fund: Distribution policy Active management risk Credit risk The Fund distributes any net income and net realized Currency risk capital gains in December of each year. The Fund may Cyber security risk also make distributions of income, capital gains and Debt securities risk capital at such other times as we consider appropriate. Derivatives risk Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in Equity risk writing that you prefer to receive cash. Foreign investment risk Fund-of-funds risk Fund expenses indirectly borne by investors Interest rate risk Large transaction risk Please see Fund expenses indirectly borne by investors Market disruption risk on page 27 for a description of the expenses included Repurchase, reverse repurchase and in, and the assumptions required to be used in, this securities lending risk table. Our actual costs may be higher or lower. Series risk Tax risk Expenses payable over:
For a detailed description of these mutual fund risks, 1 year 3 years 5 years 10 years see What are the specific risks of investing in a mutual fund? beginning on page 4. Series I $1.85 $5.82 $10.20 $23.21 Series W $19.27 $60.75 $106.48 $242.36 As at March 31, 2021, three Unitholders held Units representing approximately 42.84%, 14.19% and 13.71%, respectively, of the net asset value of the Fund. See Large transaction risk on page 7 for a description of the risks associated with possible redemption requests by these investors.
During the 12 months preceding March 31, 2021, up to 100% of the net assets of the Fund were invested in securities of Guardian Canadian Bond Fund, Guardian Investment Grade Corporate Bond Fund, Guardian Canadian Equity Fund, Guardian Canadian Growth Equity Fund, Guardian Canadian Focused Equity Fund, Guardian U.S. Equity All-Cap Growth Fund, Guardian Fundamental Global Equity Fund, Guardian i3 Global Dividend Growth Fund, Guardian i3 Global Quality Growth Fund.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are comfortable with low to medium investment risk; and You plan to hold this investment for the medium to long term.
Guardian Capital Funds Simplified Prospectus 65
Guardian Managed Growth Portfolio
Fund details from the long-term mix, the Fund is normally rebalanced. Fund type Tactical Balanced Securities offered Series I and Series W Units Within its long-term asset mix, the Fund invests in a of a unit trust core portfolio and, from time to time, a satellite Start date Series I Units: January 22, portfolio. The Fund’s core portfolio currently consists 2019 entirely of holdings in units of Guardian Canadian Series W Units: January 22, Focused Equity Fund, Guardian Canadian Growth 2019 Equity Fund, Guardian Emerging Markets Equity Registered plan Qualified investment for Fund, Guardian Fundamental Global Equity Fund, eligibility registered plans Guardian High Yield Bond Fund, Guardian i3 Global Administration fee Series I Units: 0.04% Quality Growth Fund, Guardian Investment Grade Series W Units: 0.04% Corporate Bond Fund and Guardian Short Duration Management fee Series W Units: 1.50% Bond Fund. Portfolio manager Guardian Capital LP Toronto, Ontario On a tactical basis, the Fund may also invest from time to time in a satellite portfolio consisting of securities
of other investment funds, exchange traded funds and What does the Fund invest in? other securities that are consistent with the Fund’s investment objectives. Investment objectives The Fund invests in securities of other investment The primary objective of the Fund is to provide a funds, as described on page 24. portfolio that emphasizes long-term growth of capital through diversified investments in Canadian and The Fund may be exposed to derivatives, used for foreign equity or equity-related securities and in fixed- hedging or non-hedging purposes, through its income securities. investments in underlying funds. The Fund may use derivatives to hedge against potential loss. The Fund The investment objectives of the Fund can only be may also use derivatives for non-hedging purposes, changed with the approval of a majority of the including options, futures and forward contracts, in Unitholders at a meeting called for such purpose. order to gain exposure to certain securities without investing directly in such securities, to reduce the Investment strategies impact of currency fluctuations on the Fund or to provide protection for the Fund’s portfolio. The Fund The Fund invests in securities of other investment will only use derivatives as permitted by Canadian funds managed by us, and may also invest in other securities regulatory authorities. For a description of securities, including exchange traded funds, to achieve the nature of each type of derivative that may be used its objectives. by the Fund, please see the discussion under Derivatives risk on page 5. We use strategic and tactical asset allocation to create a portfolio diversified by investment style, asset class The Fund may enter into securities lending, repurchase and geographic region, with an emphasis on long-term and reverse repurchase transactions to earn additional growth of capital. The portfolio generally includes returns, subject, in each case, to limits at least as exposure to Canadian equities, global equities, stringent as those required by Canadian securities investment grade fixed-income securities and high regulatory authorities. For a description of these yield bonds. transactions and how the Fund reduces the risks associated with these transactions, please see the Currently, the Fund’s long-term asset mix policy is discussion under Repurchase and reverse repurchase 80% equities and 20% bonds, with cash reserves transactions and securities lending risk on page 8. incorporated in these two asset classes. If the asset mix between equities and bonds varies by more than 20%
Guardian Capital Funds Simplified Prospectus 66 Guardian Managed Growth Portfolio (continued)
We may actively trade the Fund’s investments, which Who should invest in this Fund? can increase trading costs and, in turn, lower the Fund’s returns. It also increases the possibility that you This Fund may be suitable for you if: will receive taxable capital gains if you hold Units of the Fund in a non-registered account. You are looking for a diversified portfolio of equity and fixed-income securities that The Fund may hold all or a portion of its assets in cash, emphasizes long-term growth of capital; money market instruments, bonds or other debt You are comfortable with medium securities in response to adverse market, economic investment risk; and and/or political conditions or for defensive or other You plan to hold this investment for the purposes. As a result, the Fund may not be fully medium to long term. invested in accordance with its investment objectives. Please see Investment risk classification methodology What are the risks of investing in the Fund? on page 25 for a description of how we determine this risk tolerance level. The following are the risks associated with an investment in the Fund: Distribution policy
Active management risk The Fund distributes any net income and net realized Credit risk capital gains in December of each year. The Fund may Currency risk also make distributions of income, capital gains and Cyber security risk capital at such other times as we consider appropriate. Debt securities risk Distributions on Units are automatically reinvested in Derivatives risk additional Units of the Fund, unless you tell us in Equity risk writing that you prefer to receive cash. Foreign investment risk Fund-of-funds risk Fund expenses indirectly borne by investors Interest rate risk Market disruption risk Please see Fund expenses indirectly borne by investors Repurchase, reverse repurchase and on page 27 for a description of the expenses included securities lending risk in, and the assumptions required to be used in, this Series risk table. Our actual costs may be higher or lower. Tax risk Expenses payable over: For a detailed description of these mutual fund risks, see What are the specific risks of investing in a mutual 1 year 3 years 5 years 10 fund? beginning on page 4. years Series I $2.46 $7.75 $13.59 $30.94 During the 12 months preceding March 31, 2021, up to 100% of the net assets of the Fund were invested in Series W $19.89 $62.69 $109.88 $250.12 units of Guardian Canadian Bond Fund, Guardian Canadian Equity Fund, Guardian Canadian Equity Income Fund, Guardian Canadian Equity Select Fund, Guardian Canadian Focused Equity Fund, Guardian Canadian Growth Equity Fund, Guardian Emerging Markets Equity Fund, Guardian Fundamental Global Equity Fund, Guardian i3 Global Dividend Growth Fund, Guardian High Yield Bond Fund, Guardian Investment Grade Corporate Bond Fund, Guardian Short Duration Bond Fund, Guardian Directed Premium Yield Portfolio, Guardian U.S. All Cap Growth Fund.
Guardian Capital Funds Simplified Prospectus 67
Guardian Managed Income & Growth Portfolio
Fund details Currently, the Fund’s long-term asset mix policy is 60% equities and 40% bonds, with cash reserves Fund type Tactical Balanced incorporated in these two asset classes. If the asset mix Securities offered Series C, Series F and Series between equities and bonds varies by more than 15% I Units of a mutual fund trust from the long-term mix, the Fund is normally Start date Series C Units: April 22, rebalanced. 2015 Series F Units: April 22, Within its long-term asset mix, the Fund invests in a 2019 core portfolio and, from time to time, a satellite Series I Units: April 22, 2015 portfolio. The Fund’s core portfolio currently consists Registered plan Qualified investment for entirely of holdings in Units of Guardian Short eligibility registered plans Duration Bond Fund, Guardian Canadian Bond Fund, Administration fee Series C Units: 0.04% Guardian High Yield Bond Fund, Guardian Series F Units: 0.04% Investment Grade Corporate Bond Fund, Guardian Series I Units: 0.04% Canadian Equity Income Fund, Guardian Canadian Management fee Series C Units: 1.35% Equity Select Fund, Guardian Canadian Equity Fund, 3 Series F Units: 0.35% Guardian i Global Dividend Growth Fund and Portfolio manager Guardian Capital LP Guardian Fundamental Global Equity Fund. On a Toronto, Ontario tactical basis, the Fund may also invest from time to time in a satellite portfolio consisting of securities of
other investment funds, exchange traded funds, and other securities that are consistent with the Fund’s What does the Fund invest in? investment objectives. Investment objectives The Fund invests in securities of other investment funds, as described on page 24. The primary objective of the Fund is to provide a balanced portfolio that emphasizes growth of capital, The Fund may use derivatives to hedge against with some level of income generation, through potential loss. The Fund may also use derivatives for diversified investments in Canadian and foreign equity non-hedging purposes, including options, futures and or equity-related securities and in fixed-income forward contracts, in order to gain exposure to certain securities, either long-term or short-term. securities without investing directly in such securities, to reduce the impact of currency fluctuations on the The investment objectives of the Fund can only be Fund or to provide protection for the Fund’s portfolio. changed with the approval of a majority of the The Fund will only use derivatives as permitted by Unitholders at a meeting called for such purpose. Canadian securities regulatory authorities. For a description of the nature of each type of derivative that Investment strategies may be used by the Fund, please see the discussion under Derivatives risk on page 5. The Fund may also The Fund invests in securities of other investment be exposed to derivatives, used for hedging or non- funds managed by us, and may also invest in other hedging purposes, through its investments in securities, including exchange traded funds, to achieve underlying funds. its objectives. The Fund may enter into securities lending, repurchase We use strategic and tactical asset allocation to create and reverse repurchase transactions to earn additional a portfolio diversified by investment style, asset class returns, subject, in each case, to limits at least as and geographic region, with an emphasis on growth of stringent as those required by Canadian securities capital. The portfolio generally includes exposure to regulatory authorities. For a description of these Canadian equities, global equities, investment grade transactions and how the Fund reduces the risks fixed-income securities and high yield bonds. associated with these transactions, please see the
Guardian Capital Funds Simplified Prospectus 68 Guardian Managed Income & Growth Portfolio (continued)
discussion under Repurchase and reverse repurchase Investment Grade Corporate Bond Fund, Guardian transactions and securities lending risk on page 8. Short Duration Bond Fund, Guardian Directed Premium Yield Portfolio, Guardian U.S. All Cap The Fund may hold all or a portion of its assets in cash, Growth Fund. money market instruments, bonds or other debt securities in response to adverse market, economic Who should invest in this Fund? and/or political conditions or for defensive or other purposes. As a result, the Fund may not be fully This Fund may be suitable for you if: invested in accordance with its investment objectives. You are looking for a balanced portfolio What are the risks of investing in the Fund? that produces income and some growth; You are comfortable with low to medium The following are the risks associated with an investment risk; and investment in the Fund: You plan to hold this investment for the medium to long term. Active management risk Capital erosion risk Please see Investment risk classification methodology Credit risk on page 25 for a description of how we determine this Currency risk risk tolerance level. Cyber security risk Debt securities risk Distribution policy Derivatives risk Equity risk With respect to Series F Units and Series C Units, the Foreign investment risk Fund will make monthly distributions based on a target Fund-of-funds risk annualized monthly distribution of 4% of the Series Interest rate risk NAV per Unit at the end of the prior year. The target Large transaction risk monthly distributions may be comprised of income, Market disruption risk capital gains or capital. Repurchase, reverse repurchase and securities lending risk With respect to Series I Units, the Fund distributes any net income and net realized capital gains in December Series risk of each year. Tax risk
The Fund will distribute enough of its undistributed For a detailed description of these mutual fund risks, net income and net realized capital gains in December see What are the specific risks of investing in a mutual so that it does not have to pay ordinary income tax. fund? beginning on page 4. The Fund may also make distributions of income,
capital gains and capital at such other times as we As at March 31, 2021, one Unitholder held Units consider appropriate. Distributions on Units are representing approximately 13.49% of the net asset automatically reinvested in additional Units of the value of the Fund. See Large transaction risk on Fund, unless you tell us in writing that you prefer to page 7 for a description of the risks associated with receive cash. possible redemption requests by this investor. Fund expenses indirectly borne by investors During the 12 months preceding March 31, 2021, up to 100% of the net assets of the Fund were invested in units of Guardian Canadian Bond Fund, Guardian Please see Fund expenses indirectly borne by investors Canadian Equity Fund, Guardian Canadian Equity on page 27 for a description of the expenses included Income Fund, Guardian Canadian Equity Select Fund, Guardian Canadian Focused Equity Fund, Guardian Canadian Growth Equity Fund, Guardian Emerging Markets Equity Fund, Guardian Fundamental Global Equity Fund, Guardian i3 Global Dividend Growth Fund, Guardian High Yield Bond Fund, Guardian
Guardian Capital Funds Simplified Prospectus 69 Guardian Managed Income & Growth Portfolio (continued)
in, and the assumptions required to be used in, this table. Our actual costs may be higher or lower.
Expenses payable over:
1 year 3 years 5 years 10 years
Series C $16.71 $52.67 $92.32 $210.14
Series F $6.25 $19.71 $34.55 $78.65
Series I $2.15 $6.78 $11.89 $27.07
Guardian Capital Funds Simplified Prospectus 70
Guardian Managed Income Portfolio
Fund details incorporated in these two asset classes. If the asset mix between equities and bonds varies by more than 15% Fund type Tactical Balanced from the long-term mix, the Fund is normally Securities offered Series C, Series F and Series I rebalanced. Units of a mutual fund trust Start date Series C Units: April 22, 2015 Within its long-term asset mix, the Fund invests in a Series F Units: April 22, 2019 core portfolio and, from time to time, a satellite Series I Units: April 22, 2015 portfolio. The Fund’s core portfolio currently consists Registered plan Qualified investment for entirely of holdings in Units of Guardian Short eligibility registered plans Duration Bond Fund, Guardian Canadian Bond Fund, Administration Series C Units: 0.04% Guardian High Yield Bond Fund, Guardian fee Series F Units: 0.04% Investment Grade Corporate Bond Fund, Guardian Series I Units: 0.04% Canadian Equity Income Fund, Guardian Canadian Management fee Series C Units: 1.35% Equity Select Fund, Guardian Canadian Equity Fund, 3 Series F Units: 0.35% Guardian i Global Dividend Growth Fund, and Portfolio manager Guardian Capital LP Guardian Fundamental Global Equity Fund. On a Toronto, Ontario tactical basis, the Fund may also invest from time to time in a satellite portfolio consisting of securities of
other investment funds, exchange traded funds, and What does the Fund invest in? other securities that are consistent with the Fund’s investment objectives. Investment objectives The Fund invests in securities of other investment The primary objective of the Fund is to provide a funds, as described on page 24. conservative balanced portfolio that emphasizes income generation, with some level of growth of The Fund may use derivatives to hedge against capital, through diversified investments in Canadian potential loss. The Fund may also use derivatives for and foreign equity or equity-related securities and in non-hedging purposes, including options, futures and fixed-income securities, either long-term or short- forward contracts, in order to gain exposure to certain term. securities without investing directly in such securities, to reduce the impact of currency fluctuations on the The investment objectives of the Fund can only be Fund or to provide protection for the Fund’s portfolio. changed with the approval of a majority of the The Fund will only use derivatives as permitted by Unitholders at a meeting called for such purpose. Canadian securities regulatory authorities. For a description of the nature of each type of derivative that Investment strategies may be used by the Fund, please see the discussion under Derivatives risk on page 5. The Fund may also The Fund invests in securities of other investment be exposed to derivatives, used for hedging or non- funds managed by us, and may also invest in other hedging purposes, through its investments in securities, including exchange traded funds, to achieve underlying funds. its objectives. The Fund may enter into securities lending, repurchase We use strategic and tactical asset allocation to create and reverse repurchase transactions to earn additional a portfolio diversified by investment style, asset class returns, subject, in each case, to limits at least as and geographic region, with an emphasis on income stringent as those required by Canadian securities generation. The portfolio generally includes exposure regulatory authorities. For a description of these to Canadian equities, global equities, investment grade transactions and how the Fund reduces the risks fixed-income securities and high yield bonds. associated with these transactions, please see the discussion under Repurchase and reverse repurchase Currently, the Fund’s long-term asset mix policy is transactions and securities lending risk on page 8. 60% bonds and 40% equities, with cash reserves
Guardian Capital Funds Simplified Prospectus 71 Guardian Managed Income Portfolio (continued)
The Fund may hold all or a portion of its assets in cash, Who should invest in this Fund? money market instruments, bonds or other debt securities in response to adverse market, economic This Fund may be suitable for you if: and/or political conditions or for defensive or other purposes. As a result, the Fund may not be fully You are looking for a balanced portfolio invested in accordance with its investment objectives. that produces income and some growth; You are comfortable with low to medium What are the risks of investing in the Fund? investment risk; and You plan to hold this investment for the The following are the risks associated with an medium to long term. investment in the Fund: Please see Investment risk classification methodology Active management risk on page 25 for a description of how we determine this Capital erosion risk risk tolerance level. Credit risk Currency risk Distribution policy Cyber security risk Debt securities risk With respect to Series F Units and Series C Units, the Derivatives risk Fund will make monthly distributions based on a target Equity risk annualized monthly distribution of 4% of the Series Foreign investment risk NAV per Unit at the end of the prior year. The target Fund-of-funds risk monthly distributions may be comprised of income, Interest rate risk capital gains or capital. Market disruption risk Repurchase, reverse repurchase and With respect to Series I Units, the Fund distributes any securities lending risk net income and net realized capital gains in December Series risk of each year. Tax risk The Fund will distribute enough of its undistributed
net income and net realized capital gains in December For a detailed description of these mutual fund risks, so that it does not have to pay ordinary income tax. see What are the specific risks of investing in a mutual The Fund may also make distributions of income, fund? beginning on page 4. capital gains and capital at such other times as we
consider appropriate. Distributions on Units are During the 12 months preceding March 31, 2021, up automatically reinvested in additional Units of the to 100% of the net assets of the Fund were invested in Fund, unless you tell us in writing that you prefer to units of Guardian Canadian Bond Fund, Guardian receive cash. Canadian Equity Fund, Guardian Canadian Equity Income Fund, Guardian Canadian Equity Select Fund, Guardian Canadian Focused Equity Fund, Guardian Fund expenses indirectly borne by investors Canadian Growth Equity Fund, Guardian Emerging Markets Equity Fund, Guardian Fundamental Global Please see Fund expenses indirectly borne by investors Equity Fund, Guardian i3 Global Dividend Growth on page 27 for a description of the expenses included Fund, Guardian High Yield Bond Fund, Guardian in, and the assumptions required to be used in, this Investment Grade Corporate Bond Fund, Guardian table. Our actual costs may be higher or lower. Short Duration Bond Fund, Guardian Directed Premium Yield Portfolio, Guardian U.S. All Cap Expenses payable over: Growth Fund. 1 year 3 years 5 years 10 years
Series C $16.40 $51.70 $90.62 $206.28
Series F $5.95 $18.74 $32.85 $74.78
Series I $1.85 $5.82 $10.20 $23.21
Guardian Capital Funds Simplified Prospectus 72
Guardian Risk Managed Conservative Portfolio
Fund details portfolio generally includes exposure to global equities, U.S. equities, investment grade fixed-income Fund type Tactical Balanced securities and high yield bonds. Securities offered Series F, Series I and Series W Units of a mutual fund Within its long-term asset mix, the Fund invests in a trust core portfolio and, from time to time, a satellite Start date Series F Units: April 22, portfolio. The Fund’s core portfolio currently consists 2019 entirely of holdings in units of Guardian Directed Series I Units: January 22, Equity Path Portfolio and Guardian Directed Premium 2019 Yield Portfolio and any one or more of Guardian Series W Units: January 22, Canadian Bond Fund, Guardian High Yield Bond 2019 Fund, Guardian Investment Grade Corporate Bond Registered plan Qualified investment for Fund and Guardian Short Duration Bond Fund. eligibility registered plans Administration fee Series F Units: 0.04% On a tactical basis, the Fund may also invest from time Series I Units: 0.04% to time in a satellite portfolio consisting of securities Series W Units: 0.04% of other investment funds, exchange traded funds and Management fee Series F Units: 0.65% other securities that are consistent with the Fund’s Series W Units: 1.65% investment objectives. The Fund invests in securities Portfolio manager Guardian Capital LP of other investment funds, as described on page 24. Toronto, Ontario The Fund may be exposed to derivatives, used for What does the Fund invest in? hedging or non-hedging purposes, through its investments in underlying funds. The Fund may use derivatives to hedge against potential loss. The Fund Investment objectives may also use derivatives for non-hedging purposes, including options, futures and forward contracts, in The primary objective of the Fund is to seek to order to gain exposure to certain securities without preserve the value of the Fund’s investments with investing directly in such securities, to reduce the reduced portfolio volatility, while seeking to generate impact of currency fluctuations or volatility on the a moderate level of income with some potential for Fund or to provide protection for the Fund’s portfolio. capital growth. The Fund will only use derivatives as permitted by Canadian securities regulatory authorities. For a The investment objectives of the Fund can only be description of the nature of each type of derivative that changed with the approval of a majority of the may be used by the Fund, please see the discussion Unitholders at a meeting called for such purpose. under Derivatives risk on page 5. Investment strategies The Fund may enter into securities lending, repurchase and reverse repurchase transactions to earn additional The Fund invests in securities of other investment returns, subject, in each case, to limits at least as funds managed by us, and may also invest in other stringent as those required by Canadian securities securities, including exchange traded funds, to achieve regulatory authorities. For a description of these its objectives. transactions and how the Fund reduces the risks associated with these transactions, please see the We use strategic and tactical asset allocation to create discussion under Repurchase and reverse repurchase a portfolio diversified by asset class and markets, with transactions and securities lending risk on page 8. an emphasis on moderate income generation and some growth of capital while seeking to reduce portfolio The Fund may hold all or a portion of its assets in cash, volatility. We seek to reduce losses from market money market instruments, bonds or other debt declines, while recognizing that the Fund may not securities in response to adverse market, economic fully benefit from strong equity market growth. The
Guardian Capital Funds Simplified Prospectus 73 Guardian Risk Managed Conservative Portfolio (continued)
and/or political conditions or for defensive or other Please see Investment risk classification methodology purposes. As a result, the Fund may not be fully on page 25 for a description of how we determine this invested in accordance with its investment objectives. risk tolerance level.
What are the risks of investing in the Fund? Distribution policy
The following are the risks associated with an The Fund will make monthly distributions based on a investment in the Fund: target annualized monthly distribution of 4% of the Active management risk Series NAV per Unit at the end of the prior year. The target monthly distributions may be comprised of Capital erosion risk income, capital gains or capital. The Fund will Credit risk distribute enough of its undistributed net income and Currency risk net realized capital gains in December so that it does Cyber security risk not have to pay ordinary income tax. The Fund may Debt securities risk also make distributions of income, capital gains and Derivatives risk capital at such other times as we consider appropriate. Equity risk Distributions on Units are automatically reinvested in Foreign investment risk additional Units of the Fund, unless you tell us in Fund-of-funds risk writing that you prefer to receive cash. Interest rate risk Liquidity risk Fund expenses indirectly borne by investors Market disruption risk Repurchase, reverse repurchase and Please see Fund expenses indirectly borne by investors securities lending risk on page 27 for a description of the expenses included Series risk in, and the assumptions required to be used in, this Tax risk table. Our actual costs may be higher or lower. For a detailed description of these mutual fund risks, Expenses payable over: see What are the specific risks of investing in a mutual fund? beginning on page 4. 1 year 3 years 5 years 10 years
During the 12 months preceding March 31, 2021, up Series F $9.53 $30.05 $52.68 $119.90 to 100% of the net assets of the Fund were invested in units of Guardian Canadian Bond Fund, Guardian Series I $2.26 $7.12 $12.47 $28.37 Investment Grade Corp Bond Fund, Guardian Series W $21.42 $67.53 $118.37 $269.44 Emerging Markets Equity Fund, Guardian Fundamental Global Equity Fund, Guardian i3 Global Dividend Growth Fund, Guardian High Yield Bond Fund, Guardian Directed Equity Path Portfolio, Guardian Directed Premium Yield Portfolio.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a balanced portfolio that produces moderate income and some growth, while reducing portfolio volatility; You are comfortable with low investment risk; and You plan to hold this investment for the medium to long term.
Guardian Capital Funds Simplified Prospectus 74
Guardian Short Duration Bond Fund
Fund details diversify exposure to various credit risks, and maintain portfolio liquidity. Fund type Canadian Bond Securities offered Series A (formerly, Series The Fund may be invested in foreign pay Canadian W), Series F and Series I issues and securities of foreign issuers. A maximum of Units of a mutual fund trust 30% of the Fund may be held in foreign currency Start date Series A Units: April 24, denominated securities. 2014 Series F Units: April 30, The Fund does not invest in securities issued by a 2021 corporation in respect of which the majority of revenue Series I Units: April 24, is derived from the manufacture or distribution of 2014* tobacco related products. Registered plan Qualified investment for eligibility registered plans The Fund may invest up to 10% of its assets in Administration fee Series A Units: 0.04% securities of other mutual funds, as described on Series F Units: 0.04% page 24. Series I Units: 0.04% Management fee Series A Units: 0.80% The Fund may use derivatives only to hedge against Series F Units: 0.30% potential loss in respect of foreign-denominated Portfolio manager Guardian Capital LP securities. The Fund will only use derivatives as Toronto, Ontario permitted by Canadian securities regulatory * Series I Units were previously offered on a private authorities. placement basis since August 29, 2013. The Fund may enter into securities lending, repurchase and reverse repurchase transactions to earn additional What does the Fund invest in? returns, subject, in each case, to limits at least as stringent as those required by Canadian securities Investment objectives regulatory authorities. For a description of these transactions and how the Fund reduces the risks The principal objective of the Fund is the provision of associated with these transactions, please see the current interest income while at the same time discussion under Repurchase and reverse repurchase preserving capital and seeking opportunities for capital transactions and securities lending risk on page 8. appreciation, while maintaining relatively short portfolio duration, through investment in bonds, We may actively trade the Fund’s investments, which debentures, notes or other evidence of indebtedness. can increase trading costs and, in turn, lower the Fund’s returns. It also increases the possibility that you The investment objectives of the Fund can only be will receive taxable capital gains if you hold Units of changed with the approval of a majority of the the Fund in a non-registered account. Unitholders at a meeting called for such purpose. The Fund may hold all or a portion of its assets in cash, Investment strategies money market instruments, bonds or other debt securities in response to adverse market, economic We use a pro-active, disciplined management and/or political conditions or for defensive or other approach while employing various analytical tools to purposes. As a result, the Fund may not be fully identify investments that offer value on a relative basis invested in accordance with its investment objectives. with a view to providing current income while maintaining relatively short portfolio duration and preserving the prospect for some potential capital growth. We adhere to a risk management process that is designed to limit total exposure to individual issuers,
Guardian Capital Funds Simplified Prospectus 75 Guardian Short Duration Bond Fund (continued)
What are the risks of investing in the Fund? Please see Investment risk classification methodology on page 25 for a description of how we determine this The following are the risks associated with an risk tolerance level. investment in the Fund: Distribution policy Active management risk Credit risk Each quarter, the Fund will distribute an amount Currency risk calculated based on the Fund’s net income for the Cyber security risk quarter. The Fund will distribute enough of its Debt securities risk undistributed net income and net realized capital gains Derivatives risk in December so that it does not have to pay ordinary Equity risk income tax. The Fund may also make distributions of Foreign investment risk income, capital gains and capital at such other times as Interest rate risk we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Large transaction risk Fund, unless you tell us in writing that you prefer to Market disruption risk receive cash. Repurchase, reverse repurchase and securities lending risk Fund expenses indirectly borne by investors Series risk Tax risk Please see Fund expenses indirectly borne by investors on page 27 for a description of the expenses included For a detailed description of these mutual fund risks, in, and the assumptions required to be used in, this see What are the specific risks of investing in a mutual table. Our actual costs may be higher or lower. fund? beginning on page 4.
As at March 31, 2021, two Unitholders held Units Expenses payable over: representing approximately 21.21% and 18.98%. 1 year 3 years 5 years 10 years respectively, of the net asset value of the Fund. See Large transaction risk on page 7 for a description of Series A $11.99 $37.80 $66.26 $150.83 the risks associated with possible redemption requests by these investors. Series I $0.51 $1.62 $2.83 $6.45
During the 12 months preceding March 31, 2021, up No information is included in this table for Series F to 10.80%, 11.24%, and 10.11% respectively, of the Units because Series F Units are new. net assets of the Fund were invested in securities of Bank of Montreal, Royal Bank of Canada and Toronto Dominion Bank, respectively.
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a core Canadian fixed-income fund for your portfolio, but are concerned about the risk of rising interest rates in the general economy; You are prepared to accept lower interest income in exchange for the lower volatility of shorter-term bonds; and You are comfortable with low investment risk.
Guardian Capital Funds Simplified Prospectus 76
Guardian U.S. Equity All Cap Growth Fund
Fund details may be used by the Fund, please see the discussion under Derivatives risk on page 5. Fund type U.S. Equity Securities offered Series I Units of a mutual fund The Fund may enter into securities lending, repurchase trust and reverse repurchase transactions to earn additional Start date Series I Units: April 20, 2018 returns, subject, in each case, to limits at least as Registered plan Qualified investment for stringent as those required by Canadian securities eligibility registered plans regulatory authorities. For a description of these Administration fee Series I Units: 0.18% transactions and how the Fund reduces the risks Portfolio manager Guardian Capital LP associated with these transactions, please see the Toronto, Ontario discussion under Repurchase and reverse repurchase Sub-Adviser Alta Capital transactions and securities lending risk on page 8. Management, LLC Salt Lake City, United States The Fund may hold all or a portion of its assets in cash, money market instruments, bonds or other debt What does the Fund invest in? securities in response to adverse market, economic and/or political conditions or for defensive or other Investment objectives purposes. As a result, the Fund may not be fully invested in accordance with its investment objectives. The primary objective of the Fund is to provide long- term capital appreciation by investing primarily in What are the risks of investing in the Fund? equity securities of high quality U.S.-based companies of mid- to large capitalization. The following are the risks associated with an investment in the Fund: The investment objectives of the Fund can only be changed with the approval of a majority of the Active management risk Unitholders at a meeting called for such purpose. Currency risk Cyber security risk Investment strategies Derivatives risk Equity risk The sub-adviser maintains a U.S. equity focus and Foreign investment risk invests primarily in securities of mid- to large-size Large transaction risk U.S. companies that have a track record of sustained Market disruption risk earnings growth. The Fund is diversified by sector, Repurchase, reverse repurchase and normally holding between 25 and 40 issuers. securities lending risk Specialization risk The Fund may invest up to 10% of its assets in Tax risk securities of other mutual funds, as described on page 24. For a detailed description of these mutual fund risks, see What are the specific risks of investing in a mutual The Fund may use derivatives to hedge against fund? beginning on page 4. potential loss. The Fund may also use derivatives for non-hedging purposes, including options, futures and As at March 31, 2021, one Unitholder held Units forward contracts, in order to gain exposure to certain representing approximately 12.32% of the net asset securities without investing directly in such securities, value of the Fund. See Large transaction risk on to reduce the impact of currency fluctuations on the page 7 for a description of the risks associated with Fund or to provide protection for the Fund’s portfolio. possible redemption requests by this investor. The Fund will only use derivatives as permitted by Canadian securities regulatory authorities. For a description of the nature of each type of derivative that
Guardian Capital Funds Simplified Prospectus 77 Guardian U.S. Equity All Cap Growth Fund (continued)
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a core U.S. equity fund for your portfolio; You are comfortable with medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
The Fund distributes any net income and net realized capital gains in December of each year. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Fund expenses indirectly borne by investors
Please see Fund expenses indirectly borne by investors on page 27 for a description of the expenses included in, and the assumptions required to be used in, this table. Our actual costs may be higher or lower.
Expenses payable over:
1 year 3 years 5 years 10 years
Series I $2.05 $6.46 $11.32 $25.78
Guardian Capital Funds Simplified Prospectus 78
Guardian U.S. Equity Fund
Fund details returns, subject, in each case, to limits at least as stringent as those required by Canadian securities Fund type U.S. Equity regulatory authorities. For a description of these Securities offered Series A, Series F and Series I transactions and how the Fund reduces the risks Units of a mutual fund trust associated with these transactions, please see the Start date Series A Units: April 30, 2021 discussion under Repurchase and reverse repurchase Series F Units: April 30, 2021 transactions and securities lending risk on page 8. Series I Units: March 30, 2011* We may actively trade the Fund’s investments, which Registered plan Qualified investment for can increase trading costs and, in turn, lower the eligibility registered plans Fund’s returns. It also increases the possibility that you Administration fee Series A Units: 0.19% will receive taxable capital gains if you hold Units of Series F Units: 0.19% the Fund in a non-registered account. Series I Units: 0.19% Management fee Series A Units: 1.55% The Fund may hold all or a portion of its assets in cash, Series F Units: 0.55% money market instruments, bonds or other debt Portfolio manager Guardian Capital LP securities in response to adverse market, economic Toronto, Ontario and/or political conditions or for defensive or other Sub-Adviser Alta Capital purposes. As a result, the Fund may not be fully Management, LLC invested in accordance with its investment objectives. Salt Lake City, United States * Series I Units were previously offered on a private What are the risks of investing in the Fund? placement basis since November 28, 1995. The following are the risks associated with an investment in the Fund: What does the Fund invest in? Active management risk Investment objectives Currency risk Cyber security risk The primary objective of the Fund is the achievement Equity risk of long-term growth of capital primarily through Foreign investment risk investment in equity and equity-related securities of Large transaction risk issuers whose principal business operations are located Market disruption risk in the United States. Repurchase, reverse repurchase and securities lending risk The investment objectives of the Fund can only be Specialization risk changed with the approval of a majority of the Unitholders at a meeting called for such purpose. Tax risk
For a detailed description of these mutual fund risks, Investment strategies see What are the specific risks of investing in a mutual fund? beginning on page 4. The Fund invests primarily in U.S. exchange-listed securities and is broadly diversified by sector and As at March 31, 2021, two Unitholder held Units individual security. representing approximately 42.34% and 16.02%, respectively, of the net asset value of the Fund. See The sub-adviser maintains a U.S. equity focus and Large transaction risk on page 7 for a description of invests primarily in securities of mid- to large-size the risks associated with possible redemption requests U.S. companies that have a track record of sustained by this investor. earnings growth.
The Fund may enter into securities lending, repurchase and reverse repurchase transactions to earn additional
Guardian Capital Funds Simplified Prospectus 79 Guardian U.S. Equity Fund (continued)
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a core U.S. equity fund for your portfolio; You are seeking long-term capital growth from your investment; and You are comfortable with medium investment risk.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
The Fund distributes any net income and net realized capital gains in December of each year. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Fund expenses indirectly borne by investors
Please see Fund expenses indirectly borne by investors on page 27 for a description of the expenses included in, and the assumptions required to be used in, this table. Our actual costs may be higher or lower.
Expenses payable over:
1 year 3 years 5 years 10 years
Series I $2.26 $7.12 $12.47 $28.37
No information is included in this table for Series A Units and Series F Units because Series A Units and Series F Units are new.
Guardian Capital Funds Simplified Prospectus 80
Guardian U.S. Equity Select Fund
Fund details The Fund may enter into securities lending, repurchase and reverse repurchase transactions to earn additional Fund type U.S. Equity returns, subject, in each case, to limits at least as Securities offered Series I Units of a mutual fund stringent as those required by Canadian securities trust regulatory authorities. For a description of these Start date Series I Units: April 28, 2017* transactions and how the Fund reduces the risks Registered plan Qualified investment for associated with these transactions, please see the eligibility registered plans discussion under Repurchase and reverse repurchase Administration fee Series I Units: 0.18% transactions and securities lending risk on page 8. Portfolio manager Guardian Capital LP Toronto, Ontario The Fund may hold all or a portion of its assets in cash, * Series I Units were previously offered on a private money market instruments, bonds or other debt placement basis since August 29, 2016. securities in response to adverse market, economic and/or political conditions or for defensive or other What does the Fund invest in? purposes. As a result, the Fund may not be fully invested in accordance with its investment objectives. Investment objectives What are the risks of investing in the Fund? The primary objective of the Fund is the achievement of a high level of stable income, with an attractive total The following are the risks associated with an return, by investing primarily in U.S. dividend-paying investment in the Fund: equity securities and income trust units. Active management risk The investment objectives of the Fund can only be Currency risk changed with the approval of a majority of the Cyber security risk Unitholders at a meeting called for such purpose. Derivatives risk Equity risk Investment strategies Foreign investment risk Income trust risk We maintain a U.S. equity focus and invest primarily Large transaction risk in securities of mid- to large-size U.S. companies that Market disruption risk have a track record of paying and growing dividends. Repurchase, reverse repurchase and The Fund is broadly diversified by sector and seeks a securities lending risk dividend yield that is competitive with the market, Series risk normally holding between 15 and 30 issuers. Specialization risk The Fund may invest up to 10% of its assets in Tax risk securities of other mutual funds, as described on page 24. For a detailed description of these mutual fund risks, see What are the specific risks of investing in a mutual fund? beginning on page 4. The Fund may use derivatives to hedge against potential loss. The Fund may also use derivatives for non-hedging purposes, including options, futures and As at March 31, 2021, one Unitholder held Units forward contracts, in order to gain exposure to certain representing approximately 26.30% of the net asset securities without investing directly in such securities, value of the Fund. See Large transaction risk on page to reduce the impact of currency fluctuations on the 7 for a description of the risks associated with possible Fund or to provide protection for the Fund’s portfolio. redemption requests by this investor. The Fund will only use derivatives as permitted by Canadian securities regulatory authorities. For a description of the nature of each type of derivative that may be used by the Fund, please see the discussion under Derivatives risk on page 5.
Guardian Capital Funds Simplified Prospectus 81
Guardian U.S. Equity Select Fund (continued)
Who should invest in this Fund?
This Fund may be suitable for you if:
You are looking for a core U.S. equity fund for your portfolio; You are comfortable with medium investment risk; and You plan to hold this investment for the medium to long term.
Please see Investment risk classification methodology on page 25 for a description of how we determine this risk tolerance level.
Distribution policy
Each quarter, the Fund will distribute an amount calculated based on the Fund’s net income for the quarter. The Fund will distribute enough of its undistributed net income and net realized capital gains in December so that it does not have to pay ordinary income tax. The Fund may also make distributions of income, capital gains and capital at such other times as we consider appropriate. Distributions on Units are automatically reinvested in additional Units of the Fund, unless you tell us in writing that you prefer to receive cash.
Fund expenses indirectly borne by investors
Please see Fund expenses indirectly borne by investors on page 27 for a description of the expenses included in, and the assumptions required to be used in, this table. Our actual costs may be higher or lower.
Expenses payable over:
1 year 3 years 5 years 10 years
Series I $2.05 $6.46 $11.32 $25.78
Guardian Capital Funds Simplified Prospectus 82
GUARDIAN CAPITAL FUNDS
Guardian Canadian Bond Fund Guardian Canadian Equity Fund Guardian Canadian Equity Income Fund Guardian Canadian Equity Select Fund Guardian Canadian Focused Equity Fund Guardian Canadian Growth Equity Fund Guardian Canadian Short-Term Investment Fund Guardian Directed Equity Path Portfolio (formerly, Guardian SteadyPace Equity Fund) Guardian Directed Premium Yield Portfolio (formerly, Guardian SteadyFlow Equity Fund) Guardian Emerging Markets Equity Fund Guardian Fixed Income Select Fund Guardian Fundamental Global Equity Fund Guardian High Yield Bond Fund Guardian i3 Global Dividend Growth Fund (formerly, Guardian Global Dividend Growth Fund) Guardian i3 Global Quality Growth Fund (formerly, Guardian Global Equity Fund) Guardian i3 International Quality Growth Fund (formerly, Guardian International Equity Fund) Guardian International Equity Select Fund Guardian Investment Grade Corporate Bond Fund Guardian Managed Balanced Portfolio (formerly, Guardian Balanced Fund) Guardian Managed Growth Portfolio Guardian Managed Income & Growth Portfolio Guardian Managed Income Portfolio Guardian Risk Managed Conservative Portfolio Guardian Short Duration Bond Fund Guardian U.S. Equity All Cap Growth Fund Guardian U.S. Equity Fund Guardian U.S. Equity Select Fund
You can find more information about each Fund in its Annual Information Form, Fund Facts, management report of fund performance and financial statements. These documents are incorporated by reference into this document, which means that they legally form part of this document just as if they were printed as part of it.
For a free copy of these documents, call us toll-free at 1-866-383-6546 or ask your investment advisor. These documents and other information about the Funds, such as information circulars and material contracts, are also available on Guardian’s internet site at www.guardiancapital.com/investmentsolutions and at www.sedar.com.
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