September 13, 2018 NAV = $16.32 Last Trade: $16.37, 52 Week Range: $13.76 - $16.38
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Use of Comparable Indices
Given the idiosyncratic nature of the Fund’s investment strategy, the Investment Manager does not believe there is an index that sufficiently resembles the Fund to the degree it should be considered or used as a “benchmark”. However, the Investment Manager provides historical performance data for several indices in addition to the results of the Fund for comparison purposes. The Investment Manager has chosen indices that it believes are relevant to the investment mandate of the Fund and / or to capital markets in general. However, while each of these indices overlap with certain aspects of the Fund’s mandate, none of them share significant similarities with the Fund’s investment portfolio:

• The S&P/TSX Composite Total Return Index (“S&P/TSX”) is the principal broad-based measure commonly accepted by investors to measure the performance of Canadian equity markets. The S&P/TSX is a relevant index for comparison purposes as the Fund’s investment portfolio contains Canadian equity investments and the Fund’s debt investments are frequently converted into equity securities as part of the restructuring process. However, the performance of the S&P/TSX will vary greatly from the Fund as its investment portfolio is primarily comprised of securities that are not included in the S&P/TSX.

• The S&P/TSX Small Cap Total Return Index (“TSX Small Cap”) tracks the performance of the Canadian small cap equity market. The TSX Small Cap is a relevant index for comparison purposes as the Fund invests in Canadian small cap companies that are attractively valued with catalysts to unlock value. However, the performance of the TSX Small Cap will vary greatly from the Fund as its investment portfolio is primarily comprised of securities that are not included in the TSX Small Cap.

• The ICE BofAML US High Yield Index (“BAMLHY”) tracks the performance of USD-denominated, sub-investment grade rated corporate debt. BAMLHY is a relevant index for comparison purposes as the Fund invests in corporate debt securities that are rated below investment grade. However, the Fund’s investment portfolio also includes defaulted debt and equity securities which are not included in the BAMLHY and thus the Fund’s performance may vary greatly from BAMLHY.

• The Credit Suisse Distressed Hedge Fund Index (“CSDHFI”) tracks the aggregate performance of investment funds that focus on investing in companies that are subject to financial or operational distress or bankruptcy proceedings. The CSDHFI is a relevant index for comparison purposes as the Fund’s investment mandate broadly overlaps that of the funds that make up the CSDHFI. However, it is likely that the composition of the Fund’s investment portfolio is unique from these peers and thus the Fund’s performance may vary greatly from the CSDHFI.

As the Fund makes idiosyncratic investments in securities which are overlooked by the capital markets, the Fund’s investment portfolio contains investments that are not likely included in any of the above indices and thus an investment in the Fund should not be considered a substitute or proxy for the underlying index. For the reasons stated above, these indices should not be considered a benchmark for the Fund and there can be no assurance that any historical correlation or relationship will continue in the future. As the CSDHFI and BAMLHY indices are reported in USD while the Fund reports in CAD, the Manager translates the CSDHFI and BAMLHY into CAD using the prevailing foreign exchange rate as of the date of each observation.