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					                                                                                                                                                 CANADIAN BALANCED
      MANAGEMENT REPORT OF FUND PERFORMANCE
      NEXGEN CANADIAN GROWTH AND INCOME REGISTERED FUND                                                                          For the Year Ended December 31, 2010




The NexGen Canadian Growth and Income Registered Fund (the “Fund”) invests                     The Regular Series of the Fund returned 7.1% after fees and expenses
directly in shares of the NexGen Canadian Growth and Income Tax Managed Fund                   for the year ending December 31, 2010, compared to a 10.8% return on
(the “Tax Managed Fund”) having a similar investment objective. Accordingly, the               its benchmark, the 50%/50% blend of the S&P/TSX Composite Index
Management Discussion of Fund Performance that follows represents generally                    and DEX Universe Bond Index, (the “Benchmark”), from which fees and
that of the Tax Managed Fund with the exception of the sections titled Investment              expenses are not deducted. See the section of this report titled “Past
Objectives and Strategies, Risk, Financial Highlights, Management Fees and                     Performance” for a detailed summary of the performance of the Fund.
Series Description and Past Performance which are specific to the Fund. Within the             Equity prices in North America bottomed in June 2010. The Sub-Advisor
section titled Results of Operations, the net asset value and performance figures              believes this marked the start of a new four year bull market in equities.
discussed also relate specifically to the Fund. For information specific to the Tax
Managed Fund please refer to the Management Report of Fund Performance of                      Expectations of a Q4/2010 market advance were supported by the
the Tax Managed Fund.                                                                          historical observations of an 8% median increase in the fourth quarter of
                                                                                               a U.S. mid-term election year. Positive performance typically continues
Management Discussion of Fund Performance                                                      through the first and second quarter of the following year.
The Management Report of Fund Performance (MRFP) contains financial highlights which           From a seasonal perspective gold shares rise from later summer into the
should be read in conjunction with the Financial Statements of the Fund. If you have not       New Year. The performance of the Tax Managed Fund benefited from
elected to receive the Financial Statements, you may obtain a copy at your request, and        this trend as the equity Sub-Advisor increased holdings of gold and silver
at no cost, by calling us toll free at 1-866-378-7119, by writing to us at NexGen Financial    shares in later summer. These weightings were subsequently significantly
Limited Partnership, 36 Toronto Street, Toronto, ON., M5C 2C5, or by visiting our website at   reduced in the second half of December.
www.nexgenfinancial.ca or SEDAR at www.sedar.com.
                                                                                               Strong equity contributors to performance were: Ithaca Energy, Neo
Securityholders may also contact us using one of these methods to request a copy of the        Material Technology, Talisman Energy and Pason Systems. Laggards were:
Fund’s proxy voting policies and procedures, proxy voting disclosure record, or quarterly      SXC Health Solutions, Iamgold and San Gold.
portfolio disclosure.
                                                                                               The Canadian bond market enjoyed good returns in 2010 as yields
Investment Objective and Strategies                                                            declined and prices rose for all but the shortest maturities. The decline
                                                                                               in yields was the result of a combination of factors including weaker
The investment objective of the Fund is to provide a combination of capital
                                                                                               than expected economic growth, investor demand for the security of
preservation, income generation and long-term capital growth primarily
                                                                                               fixed income investments, and record demand for Canadian bonds from
through investment in a diversified portfolio of Canadian securities. The
                                                                                               international investors.
Fund will seek to achieve the investment objective through the investment
of substantially all of its portfolio assets in the non-publically offered                     Following robust growth in the first quarter of 2010, the Canadian
debt and shares of the Inter-Fund Class of the Tax Managed Fund. The                           economic recovery slowed significantly over the balance of the year. In
Tax Managed Fund’s Sub-Advisors, Selective Asset Management Inc.                               part, the deceleration was due to pent-up demand that had built up during
(“Selective”) and J. Zechner Associates Inc. (“Zechner”), co-manage the                        the recession being satisfied and domestic demand returning to lower,
Fund’s portfolio.                                                                              more normal levels. The pace of economic growth in the first half of the
                                                                                               year prompted the Bank of Canada to begin removing the extraordinary
The Tax Managed Fund will invest in publicly traded Canadian equity, trust
                                                                                               monetary stimulus that had been put in place during the financial crisis.
and limited partnership securities and in government issued or guaranteed
bonds, corporate debentures, mortgage and asset backed securities and                          The Canadian bond market also benefitted from volatility in global equity
treasury bills. The Tax Managed Fund may invest in fixed income and                            markets during the year. Negative equity returns in the first half of the year,
income trust securities directly, or indirectly through the use of derivatives,                combined with a weakening economic outlook made many investors prefer
to provide it, with an investment return similar to a direct investment, less                  the perceived safety of bonds over stocks.
the derivative costs. The method of investment by the Tax Managed Fund                         Canadian bonds were also in demand due to unprecedented international
in fixed income and income trust securities will be determined primarily                       buying. The sovereign debt crisis in Europe spurred interest in Canada
based upon maximizing the tax efficiency of the Tax Managed Fund.                              and Canadian dollar investments as alternative to European bonds. For
                                                                                               the year as a whole, corporate yield spreads finished little changed from
Risk                                                                                           their starting levels. However, the higher yield earned on the corporate
The overall level of risk In the Fund has not changed. Specifically, each of                   bond holdings in the Tax Managed Fund during the year justified the
the Individual risks described In the Fund’s prospectus continued to have                      Sub-Advisor’s decision to over-weight the sector and under-weight lower
application and the investor risk tolerance and suitability for investment In                  yielding Canada bonds.
respect of the Fund has not changed.                                                           In speaking at Fortune magazine’s Most Powerful Women conference on
                                                                                               October 6, 2010 Warren Buffet noted, “It’s quite clear that stocks are
Results of Operations                                                                          cheaper than bonds”. Investors started to accelerate their asset shift from
The Fund’s net asset value decreased during the period from $9,933,000                         bonds to equity funds in the fourth quarter of 2010. If U.S. corporations
to $9,411,000. This decrease was a result of a combination of positive                         were to refinance their existing debt a 1% reduction in cost would improve
investment returns offset by net redemptions.                                                  U.S. corporate profitability by $70 billion. This would offset the increased
                                                                                               funding requirements for the widening corporate pension fund deficits.

      NEXGEN FINANCIAL LIMITED PARTNERSHIP
                                                                                                                              CANADIAN BALANCED
     MANAGEMENT REPORT OF FUND PERFORMANCE
     NEXGEN CANADIAN GROWTH AND INCOME REGISTERED FUND                                                         For the Year Ended December 31, 2010




Recessions typically don’t recover quickly on their own. Consumers are         Concerns about rising inflation and the U.S. budget deficit at 10% of
reluctant to spend money because they are worried about losing their           G.D.P. are expected to hold back bond prices in 2011. As a result investors
jobs, have had their hours of employment cut back or have been laid off.       should shift their focus from bond to equity funds in 2011. The equity
Consumers avoid the shopping mall in order to pay down debt. Companies         Sub-Advisor favours growth stocks over value stocks at this stage in the
have excess capacity so they have no need to spend money on new plants         market. The S&P/TSX Composite index has outperformed the S&P 500
or equipment. As a result, government is left to increase spending to turn     Composite Index in 8 of the past 9 years due to the strong performance
the economy around.                                                            of resource sector stocks. The S&P/TSX is expected to outperform again
In November U.S. Federal Reserve Board (Fed) Chairman Bernanke                 in 2011 as its over 50% resource stock weight benefits from rising global
described the expected benefits of round two of the Fed’s quantitative         economic growth and particularly from the strong emerging market
easing (QE2) actions (printing money to buy Treasury Bonds) in a               economies.
Washington Post op-ed article: “Lower mortgage rates will make housing         Oil appears to have broken out (to the upside) from an 18 month trading
more affordable and allow more homeowners to refinance. Lower                  range. Copper has risen above $4.00/pound and because of strong
corporate bond rates will encourage investment. And higher stock prices        demand and limited growth in supply for the next 2 years it appears that
will boost consumer wealth and help increase confidence, which can also        the price of copper will be significantly higher by the end of 2011.
spur spending. Increased spending will lead to higher incomes and profits
                                                                               The U.S. household debt servicing cost is the lowest it has been in
that, in a virtuous circle, will further support economic expansion.”
                                                                               20 years. This may lead to an upside surprise in U.S. consumer spending
Recent Developments                                                            in 2011. Small businesses in the U.S. may be the driver of increased hiring
                                                                               leading to further reductions in the U.S. unemployment rate.
As we move into 2011, the fixed-income Sub-Advisor’s fundamental
valuations suggest that the Canadian bond market is fully valued. With         Rising energy and raw material costs in 2011 may lead to a squeeze in
the Canadian economy 18 months into recovery and looking likely to             consumer oriented profit margins. This occurred in 2007/2008 but natural
improve further, it seems odd that long term Canada bond yields remain         resource companies (the providers of the raw materials) benefited at that
near the their lowest levels of the past 50 years. The fixed-income Sub-       time and are expected to benefit in 2011 providing further support of our
Advisor’s believe that, based on economic fundamentals, yields should          view that the S&P/TSX should outperform.
rise somewhat through the coming year. However, the current level of           Since mid-November $20 billion has been withdrawn from U.S. bond
yields also reflects a high degree of investor uncertainty and caution.        mutual funds to pay for equity purchases. Flows from fixed income funds
Another area of concern is that the Bank of Canada is not yet finished         into equities are expected to continue to drive demand for equities.
raising interest rates.                                                        In the third week of January China reported Q4/2010 GDP of 9.8% year
In light of our concerns noted above, the fixed-income Sub-Advisor has         over year growth. This was ahead of expectations (Chinese GDP for
shifted the portfolio to a defensive structure. Duration, which reflects the   2010 was up 10.3% up from 8.7% in 2009). The better than expected
Tax Managed Fund’s sensitivity to yield changes, has been reduced, and         Q4/2010 Chinese economic growth increased speculation that Chinese
the fixed-income Sub-Advisor is monitoring the market for opportunities        policy makers would tighten monetary policy more quickly than markets
for further reductions. Holdings of short and mid-term issues have been        had anticipated. The equity Sub-Advisor expects this to cause short term
replaced with investments in money market securities and longer term           weakness in commodity prices.
bonds to minimize the impact of potential and anticipated rate increases       The equity Sub-Advisor sees 2011 as a year of opportunity as they believe
by the Bank of Canada. Amongst the sectors, corporate bonds offer the          a new equity bull market is under way. A near term pull back of 5 to 10%
best value with relatively wide yield spreads. Given the ongoing economic      would be viewed as an opportunity to increase resource stock holdings.
recovery, overall creditworthiness will continue to improve and may lead
to additional gains for the sector. Government of Canada bonds, with their     Related Party Transactions
low yields, offer less income protection from possible price volatility and
                                                                               NexGen Financial Limited Partnership (“NexGen”) is the manager of the
have been de-emphasized.                                                       Fund. In this capacity it provides investment management, distribution
2010 was a strong year for equity markets as earnings continued to             and administrative services to the Fund. In consideration for the services
rebound from their recessionary lows. Strong 2011 forecast earnings            provided, NexGen receives a monthly management fee based on the
growth of 26% for the S&P/TSX companies and 13% for S&P 500                    average net asset value of each series of the Fund, other than the Wrap
companies is expected to drive stocks higher in 2011. The equity               and Institutional Front End Load Series. For the year ending December 31,
Sub-Advisor expects 2011 to be the year when rising earnings momentum          2010, the Fund paid $199,119 to NexGen for these services.
distinguishes the performance leaders versus the laggards.
In late August in the growth oriented portfolios the equity Sub-Advisor        Past Performance
“increased the emphasis on a company’s ability to service its debt as          The past performance shows historical performance of each series of units
well as reduce its debt.” This change has contributed to the significant       of the Fund (other than the Wrap series which is not currently offered by
performance that has occurred in the growth portfolios since the end of        the Fund). This information is provided to show the past performance only
August.                                                                        and does not necessarily indicate how the Fund will perform in the future.


     NEXGEN FINANCIAL LIMITED PARTNERSHIP
                                                                                                                                                                                                                          CANADIAN BALANCED
       MANAGEMENT REPORT OF FUND PERFORMANCE
       NEXGEN CANADIAN GROWTH AND INCOME REGISTERED FUND                                                                                                                                                  For the Year Ended December 31, 2010




The past performance information assumes that all distributions were                                                                                                    The DEX Universe Bond Index is a broad measure of Canadian bonds with terms
reinvested in additional units of the same series of the Fund. The past                                                                                                 to maturity of more than one year. It includes approximately 1,000 federal,
performance information does not take into account sales, redemption,                                                                                                   provincial, municipal and corporate bonds rated “BBB” or higher
distribution or other optional charges that would have reduced returns or                                                                                             3 Annual compound returns since inception for all series are from the Inception
performance.                                                                                                                                                            Date, other than the Regular F and High Net Worth F Series which are from July 1,
                                                                                                                                                                        2007, and for the Low Load Series which is from March 8, 2010.
Year-by-Year Returns
                                                                                                                                                                      4 The Since Inception annual compound return of the benchmark from July 1,
The following chart illustrates the annual performance of each series of                                                                                                2007 was 3.3%.
units of the Fund since inception date of September 5, 2006. The chart                                                                                                5 The Since Inception annual compound return of the Benchmark from March 8,
shows, in percentage terms, how much an investment made on the first                                                                                                    2010 was 8.9%.
day of each financial period would have increased or decreased by the
last day of each financial period. (Performance for the F Series for 2007                                                                                             Management Fees and Series Description
covers the period from July 1 to December 31, 2007. Performance for
the Low Load Series for 2010 covers the period from March 8 to                                                                                                        The Fund currently offers eight series of units: Regular, Regular F, High
December 31, 2010.                                                                                                                                                    Net Worth, High Net Worth F, Ultra High Net Worth, Institutional Front
                                                                                                                                                                      End Load, Deferred Load and Low Load Series. (The Fund commenced
         Dec. 31, 2006                 Dec. 31, 2007                          Dec. 31, 2008                       Dec. 31, 2009                      Dec. 31, 2010
                                                                                                                                                                      offering the Low Load Series on March 8, 2010).
 15%                                   12.4                                                   12.7                       12.0
                                                                                                                                                 13.6                 Management fees differ among the Fund’s series of units. The Fund
                    11.2                                         11.5                                                                    11.3
 10%          9.0
                           7.1                8.2          9.2
                                                                        7.3                          8.5          9.5
                                                                                                                                7.9
                                                                                                                                                     10.0
                                                                                                                                                               7.8    pays NexGen an aggregate management fee. Management fees for
  5%
  0%
                                 0.8                                                  0.9                                                                             Institutional Front End Load Series units are negotiated and paid directly
 -5%
       -5.0                                         -4.8                                                   -4.7                       -4.5
                                                                                                                                                                      by the investor, not by the Fund. From its management fees, NexGen
-10%
-15%
                                                                                                                                                                      pays the costs of portfolio manager compensation and sales and trailing
                                                                                        -14.6                                                -14.0
-20%
                -15.6              -14.8                     -15.6                                                  -15.2
                                                                                                                                                                      commissions paid to dealers who distribute securities of the Fund.
           Regular               Regular F               High                          High                   Ultra High               Institutional           Low
          & Deferred                                   Net Worth                    Net Worth F               Net Worth                 Front End              Load   Series                                                       Management Fee
             Load
                                                                              Series                                                                                  Regular, Deferred and Low Load                                             2.00%
                                                                                                                                                                      Regular F                                                                  1.00%
Annual Compound Returns                                                                                                                                               High Net Worth                                                             1.75%
                                                                                                                                                                      High Net Worth F                                                           0.75%
The following table shows the annual compounded total return for each
                                                                                                                                                                      Ultra High Net Worth                                                       1.50%
series currently offered by the Fund for the periods shown ended on
December 31, 2010. The annual compound total return is also compared                                                                                                  Summary of Investment Portfolio at December 31, 2010
to the Benchmark on the same compound basis.
                                                                                                                                                                      The Fund invests directly in shares of the NexGen Canadian Growth and
                                                                                                                                                Since                 Income Tax Managed Fund. The top 25 largest holdings by percentage
Series 1                                                                            1 Year                              3 Year               Inception 3              of net asset value and sector allocation of this fund are listed below. The
                                                                                                                                                                      prospectus and other information about the NexGen Canadian Growth
Regular and Deferred Load                                                             7.1%                               0.1%                        0.9%             and Income Tax Managed Fund is available at www.nexgenfinancial.ca or
Regular F                                                                             8.2%                               1.2%                        1.3%             www.sedar.com.
High Net Worth                                                                        7.3%                               0.4%                        1.2%
                                                                                                                                                                      The Summary of Investment Portfolio may change due to ongoing
High Net Worth F                                                                      8.5%                               1.4%                        1.5%
                                                                                                                                                                      portfolio transactions of the Fund. You may obtain monthly updates to the
Ultra High Net Worth                                                                  7.9%                               0.8%                        1.6%
                                                                                                                                                                      Fund’s holdings free of charge by calling us toll free at 1-866-378-7119
Institutional Front End Load                                                         10.0%                               2.4%                        3.1%
Low Load                                                                                 –                                  –                        7.8%             or by writing us at NexGen Financial Limited Partnership, 36 Toronto
                                                                                                                                                                      Street, Suite 1070, Toronto, ON, M5C 2C5, by visiting our website at
Return of Benchmark 2, 4, 5                    10.8%           3.1%        4.4%                                                                                       www.nexgenfinancial.ca or SEDAR at www.sedar.com.
1 Net of all fees and expenses paid by the Fund other than the Institutional Front
  End Load Series where performance is reported gross of fees negotiated and paid                                                                                     Top 25 Holdings                                         % of Net Asset Value1
  directly by the investor.                                                                                                                                           Cash and Cash Equivalents                                                    20.1
2 This blended benchmark is comprised of 50% of the S&P/TSX and 50% of the                                                                                            Ithaca Energy, Inc.                                                           3.3
  DEX Universe Bond Index.                                                                                                                                            Southern Pacific Resource Corp                                                3.2
  The S&P/TSX Composite Index is a capitalization-weighted index that represents                                                                                      Home Capital Group Inc. Cl. B Sub. Voting                                     3.1
  some of the largest float-adjusted stocks trading on the Toronto Stock Exchange.                                                                                    Ensign Energy Services, Inc.                                                  3.0
  Company size and liquidity are the chief attributes determining index membership.                                                                                   Imperial Oil Limited                                                          2.9
                                                                                                                                                                      SXC Health Solutions Corporation                                              2.8


       NEXGEN FINANCIAL LIMITED PARTNERSHIP
                                                                                                                                                   CANADIAN BALANCED
        MANAGEMENT REPORT OF FUND PERFORMANCE
        NEXGEN CANADIAN GROWTH AND INCOME REGISTERED FUND                                                                        For the Year Ended December 31, 2010




IAMGOLD Corporation                                                               2.8    Future Accounting Standards
Dundee Precious Metals Inc.                                                       2.7
                                                                                         In January 2006, the CICA Accounting Standards Board (“AcSB”) adopted a
Talisman Energy Inc.                                                              2.6
Celtic Exploration Ltd.                                                           2.5    strategic plan for the direction of accounting standards in Canada. As part of
Cameco Corporation                                                                2.5    that plan, the AcSB confirmed in February 2008 that International Financial
Pason Systems Inc.                                                                2.5    Reporting Standards (“IFRS”) will replace Canadian GAAP in fiscal 2011 for
TMX Group Inc.                                                                    2.5    profit oriented Canadian publicly accountable enterprises. On May 14, 2010,
Canadian Natural Resources Limited                                                2.3    the AcSB proposed amendments which provided most investment funds
Petrominerales Ltd.                                                               2.3    with the option to defer adoption of IFRS until January 1, 2012. In January
Coastal Energy Company                                                            2.3    2011, the Canadian Accounting Standards Board approved a one year
Magna International Inc. Cl. A Sub. Voting                                        2.2    extension to the optional one year deferral from IFRS adoption for investment
Valeant Pharmaceuticals International, Inc.                                       2.1    funds. Accordingly the Funds will adopt IFRS for the fiscal period beginning
Sino-Forest Corporation                                                           2.1    January 1, 2013 and will issue their initial statements, including comparative
San Gold Corporation                                                              1.5
                                                                                         information, for the interim period June 30, 2013.
Neo Material Technologies, Inc.                                                   1.4
Province of Ontario Zero Coupon 12/02/22                                          1.3    NexGen is taking the following steps to transition to IFRS:
Westshore Terminals Income Fund                                                   1.2    • Identification of areas of qualitative and quantitative changes in financial
Trican Well Service Ltd.                                                          1.1      statement and note disclosure required under IFRS;
                                                                                         • Assessment of the impact, if any, on Net Asset and Net Asset Value;
Sector Allocation                                          % of Net Asset Value1         • Assessment of State Street’s( the “administrator’s”) reporting system
Energy                                                                          31.4       capability and their readiness for IFRS implementation;
Cash And Cash Equivalents                                                       20.1     • Assessment of the administrator’s implementation plan; and
Corporate Bonds                                                                 15.8
Materials                                                                       10.3     • Implementation of an effective investor communication and education
Provincial Government Bonds                                                      6.9       plan.
Financials                                                                       5.5     NexGen has not currently identified any changes that will impact Net Assets
Health Care                                                                      4.9     or Net Asset Value per Share as a result of the transition to IFRS.
Consumer Discretionary                                                           2.2
Municipal Government Bonds                                                       1.2     New Series
Industrials                                                                      1.2     The Fund commenced offering the Low Load Series on March 8, 2010.
Federal Government Bonds                                                         0.4
Other Assets less Liabilities                                                    0.1     A NOTE ON FORWARD-LOOKING STATEMENTS
                                                                                         This report may contain forward-looking statements about the Fund, including its strategy,
Total                                                                          100.0     expected performance and conditions. Forward-looking statements are statements that
                                                                                         are predictive in nature, that depend upon or refer to future events or conditions, or that
                                                                                         include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates” or negative
Asset Alloction                                            % of Net Asset Value1         versions thereof and similar expressions. In addition, any statement that may be concerning
                                                                                         future performance, strategies or prospects, and possible future Fund action, is also a
Equity                                                                          55.5
                                                                                         forward-looking statement. Forward-looking statements are based on current expectations
Fixed Income                                                                    24.3     and projections about future events and are inherently subject to, among other things, risk,
Cash and Cash Equivalents                                                       20.1     uncertainties and assumptions about the Fund and economic factors.
Other Assets less Liabilities                                                    0.1     Forward-looking statements are not guarantees of future performance, and actual events
                                                                                         and results could differ materially from those expressed or implied in any forward-looking
Total                                                                          100.0     statements made by the Fund. Any number of important factors could contribute to these
                                                                                         digressions, including, but not limited to, general economic, political and market factors,
1
    Based on transactional NAV in which securities are priced at market closing prices   interest and foreign exchange rates, capital markets, business competition, technological
    on December 31, 2010.                                                                changes, changes in government regulations, unexpected judicial or regulatory proceedings
                                                                                         and catastrophic events.
OTHER MATERIAL INFORMATION                                                               We stress that the above-mentioned list is not exhaustive. We encourage you to consider
                                                                                         these and other factors carefully before making any investment decisions and we urge you
Harmonized Sales Tax (“HST”)                                                             to avoid placing undue reliance on forward-looking statements. Further, you should be
                                                                                         aware of the fact that the Fund has no specific intention of updating any forward-looking
Provincial Governments have taken steps to harmonize their provincial
                                                                                         statements whether as a result of new information, future events or otherwise.
sales tax with the federal goods and services tax. The HST increased the
amount of taxes paid by the Fund, and therefore increased the Fund’s
management expense ratio effective July 1, 2010.

        NEXGEN FINANCIAL LIMITED PARTNERSHIP
                                                                                                                                                                                 CANADIAN BALANCED
      MANAGEMENT REPORT OF FUND PERFORMANCE
      NEXGEN CANADIAN GROWTH AND INCOME REGISTERED FUND                                                                                                     For the Year Ended December 31, 2010




Financial Highlights
The following tables show selected key financial information about the Fund and are intended to help you understand the Fund’s financial performance
for each of the year ending dates indicated.
NET ASSETS PER UNIT ($) 1
                                                   Regular, Deferred and Low Load Series5                                Regular F Series                                     High Net Worth Series
                                               Dec. 31    Dec. 31    Dec. 31    Dec. 31     Dec. 31    Dec. 31      Dec. 31    Dec. 31    Dec. 31     Dec. 31    Dec. 31    Dec. 31    Dec. 31    Dec. 31    Dec. 31
                                                 ’10        ’09        ’08        ’07         ’06        ’10          ’09        ’08        ’07         ’06        ’10        ’09        ’08        ’07        ’06
Net assets, beginning of the year                 9.29       8.49      10.26       9.49      10.00       9.22          8.34      9.97       10.00          –       9.20       8.41      10.11       9.51      10.00
Increase (decrease) from operations:
  Total revenue                                   0.16       0.15       0.27        0.36      0.11        0.16         0.15       0.26       0.18          –        0.16       0.15       0.25       0.35      0.11
  Total expenses                                     –          –          –           –         –           –            –          –          –          –           –          –          –          –         –
  Realized gains (losses) for the year           (0.15)     (0.21)     (0.18)      (0.01)        –       (0.23)       (0.21)     (0.21)         –          –       (0.08)     (0.22)     (0.24)     (0.02)        –
  Unrealized gains (losses) for the year          0.58       1.02      (2.54)       0.18      0.36        0.70         1.11      (2.50)     (0.09)         –        0.58       1.05      (3.56)      0.57      0.46
Total increase (decrease) from operations 2       0.59       0.96      (2.45)       0.53      0.47        0.63         1.05      (2.45)      0.09          –        0.66       0.98      (3.55)      0.90      0.57
Distributions:
  From income (excluding dividends)              (0.18)     (0.15)     (0.18)      (0.08)     (0.01)     (0.20)       (0.15)     (0.16)     (0.10)         –       (0.18)     (0.17)     (0.14)     (0.27)     (0.01)
  From dividends                                     –          –          –           –          –          –            –          –          –          –           –          –          –          –          –
  From capital gains                             (1.24)         –          –           –          –      (1.38)           –          –          –          –       (1.22)         –          –          –          –
  Return of capital                                  –          –          –           –          –          –            –          –          –          –           –          –          –          –          –
Total annual distributions 3                     (1.42)     (0.15)     (0.18)     (0.08)      (0.01)     (1.58)       (0.15)     (0.16)     (0.10)         –       (1.40)     (0.17)     (0.14)    (0.27)      (0.01)
Net assets, end of the year 4                     8.53       9.29       8.49      10.26        9.49       8.40         9.22       8.34       9.97          –        8.48       9.20       8.41     10.11        9.51


                                                            High Net Worth F Series                                 Ultra High Net Worth Series                        Institutional Front End Load Series
                                               Dec. 31    Dec. 31    Dec. 31    Dec. 31     Dec. 31    Dec. 31      Dec. 31    Dec. 31    Dec. 31     Dec. 31    Dec. 31    Dec. 31    Dec. 31    Dec. 31    Dec. 31
                                                 ’10        ’09        ’08        ’07         ’06        ’10          ’09        ’08        ’07         ’06        ’10        ’09        ’08        ’07        ’06
Net assets, beginning of the year                 8.98       8.12       9.83      10.00          –       9.26          8.44     10.14        9.51      10.00       8.65       7.76       9.33       8.60      10.00
Increase (decrease) from operations:
  Total revenue                                   0.18       0.15       0.27        0.17         –        0.16         0.15       0.27       0.35       0.11        0.16       0.14       0.26       0.32       0.20
  Total expenses                                     –          –          –           –         –           –            –          –          –          –           –          –          –          –          –
  Realized gains (losses) for the year            1.46      (0.23)     (0.11)          –         –       (0.18)       (0.22)     (0.20)     (0.02)         –       (0.06)     (0.23)     (0.11)     (0.02)     (0.01)
  Unrealized gains (losses) for the year          0.56       1.16      (1.59)      (0.09)        –        0.64         1.12      (2.59)      0.60       0.47        0.77       1.21      (1.45)      0.66      (0.90)
Total increase (decrease) from operations 2       2.20       1.08      (1.43)       0.08         –        0.62         1.05      (2.52)      0.93       0.58        0.87       1.12      (1.30)      0.96      (0.71)
Distributions:
  From income (excluding dividends)              (0.20)     (0.17)     (0.28)     (0.25)         –       (0.18)       (0.20)     (0.17)      (0.27)     (0.01)     (0.15)     (0.17)     (0.27)     (0.24)     (0.92)
  From dividends                                     –          –          –          –          –           –            –          –           –          –          –          –          –          –          –
  From capital gains                             (1.42)         –          –          –          –       (1.25)           –          –           –          –      (1.07)         –          –          –          –
  Return of capital                                  –          –          –          –          –           –            –          –           –          –          –          –          –          –          –
Total annual distributions 3                     (1.62)     (0.17)     (0.28)     (0.25)         –       (1.43)       (0.20)     (0.17)     (0.27)      (0.01)     (1.22)     (0.17)     (0.27)     (0.24)     (0.92)
Net assets, end of the year 4                     8.11       8.98       8.12       9.83          –        8.56         9.26       8.44      10.14        9.51       8.29       8.65       7.76       9.33       8.60

1   This information is derived from the Fund’s audited annual financial statements as at December 31 of the years shown. The net assets per unit presented in the financial statements differs from the net asset
    value calculated for fund pricing purposes. An explanation of these differences can be found in Note 2 of the notes to the financial statements.
2   Net assets and distributions are based on the actual amount of units at the relevant time. The increase (decrease) from operations is based on the weighted average number of units outstanding over the
    financial period.
3   Distributions were reinvested in additional units of the Fund, unless the investor requested payment in cash.
4   This is not a reconciliation of the beginning and ending net assets per unit as the increase (decrease) from operations data is based on the weighted average number of units during the period rather than
    actual unit amounts at the relevant time.
5   The Fund commenced offering the Low Load Series on March 8, 2010.




      NEXGEN FINANCIAL LIMITED PARTNERSHIP
                                                                                                                                                                                      CANADIAN BALANCED
      MANAGEMENT REPORT OF FUND PERFORMANCE
      NEXGEN CANADIAN GROWTH AND INCOME REGISTERED FUND                                                                                                        For the Year Ended December 31, 2010




RATIOS AND SUPPLEMENTAL DATA 1
                                                              Regular, Deferred and Low Load Series6                                                                Regular F Series
                                          Dec. 31 ’10       Dec. 31 ’09       Dec. 31 ’08       Dec. 31 ’07       Dec. 31 ’06       Dec. 31 ’10       Dec. 31 ’09       Dec. 31 ’08       Dec. 31 ’07       Dec. 31 ’06
Total net asset value ($)2                  8,116,130         8,453,205         7,345,434          808,641             72,176          573,501           741,554           665,590            72,329                 –
Number of units outstanding                   951,573           910,124           865,598           78,850              7,607           68,310            80,425            79,780             7,257                 –
Management expense ratio (%) 3                   2.74              2.65              2.64             2.69               2.72             1.65              1.60              1.60              1.64                 –
Management expense ratio before
  waivers or absorptions (%) 3                   2.82              2.82              2.98              5.98             23.66              1.73              1.78              1.93              4.10                –
Trading expense ratio (%) 4                      5.85              0.69              0.73                 –                 –              5.85              0.69              0.73                 –                –
Portfolio turnover rate (%) 5                  988.23             17.34             28.98              2.09              5.56            988.23             17.34             28.98              2.09                –
Net asset value per unit ($) 2                   8.53              9.29              8.49             10.26              9.49              8.40              9.22              8.34              9.97                –


                                                                       High Net Worth Series                                                                    High Net Worth F Series
                                          Dec. 31 ’10       Dec. 31 ’09       Dec. 31 ’08       Dec. 31 ’07       Dec. 31 ’06       Dec. 31 ’10       Dec. 31 ’09       Dec. 31 ’08       Dec. 31 ’07       Dec. 31 ’06
Total net asset value ($) 2                   651,529          679,638           701,512             28,714            28,608            14,039              781              2,154             2,521                –
Number of units outstanding                    76,788           73,842            83,442              2,840             3,008             1,730                87               265               256                –
Management expense ratio (%) 3                   2.48             2.39              2.37               2.40              2.52              1.42              1.29              1.28              1.33                –
Management expense ratio before
waivers or absorptions (%) 3                     2.55              2.56              2.71              5.70             23.26              1.49              1.47              1.62              3.29                –
Trading expense ratio (%) 4                      5.85              0.69              0.73                 –                 –              5.85              0.69              0.73                 –                –
Portfolio turnover rate (%) 5                  988.23             17.34             28.98              2.09              5.56            988.23             17.34             28.98              2.09                –
Net asset value per unit ($) 2                   8.48              9.20              8.41             10.11              9.51              8.11              8.98              8.12              9.83                –


                                                                    Ultra High Net Worth Series                                                           Institutional Front End Load Series
                                          Dec. 31 ’10       Dec. 31 ’09       Dec. 31 ’08       Dec. 31 ’07       Dec. 31 ’06       Dec. 31 ’10       Dec. 31 ’09       Dec. 31 ’08       Dec. 31 ’07       Dec. 31 ’06
Total net asset value ($) 2                    54,547            57,268            70,562            28,804            28,615             1,086              987            27,335            31,757            28,564
Number of units outstanding                     6,373             6,187             8,356             2,840             3,008               131              114             3,521             3,404             3,320
Management expense ratio (%) 3                   1.98              1.93              1.93              2.13              2.25              0.16              0.55             0.55              0.55              0.16
Management expense ratio before
waivers or absorptions (%) 3                     2.06              2.10              2.27              5.43             22.70              0.24              0.73              0.89              3.84             18.44
Trading expense ratio (%) 4                      5.85              0.69              0.73                 –                 –              5.85              0.69              0.73                 –                 –
Portfolio turnover rate (%) 5                  988.23             17.34             28.98              2.09              5.56            988.23             17.34             28.98              2.09              5.56
Net asset value per unit ($) 2                   8.56              9.26              8.44             10.14              9.51              8.29              8.65              7.76              9.33              8.60

1   The information is provided as at December 31 of the years shown.
2   Total Net Asset Value and Net Asset Value per unit are presented based on transactional NAV which may differ from amounts in the financial statements as a result of adopting the requirements under
    Section 3855 of the CICA Handbook, Financial Instruments – Recognition and Measurement.
3   The management expense ratio is based on total expenses (excluding commissions, portfolio transaction costs and forward fees as applicable) for the stated period and is expressed as an annualized
    percentage of daily average net asset value during the period. In a period where a series is established, the management fee ratio is annualized from the date of inception to the end of the period.
    The Institutional Front End Load Series of the Fund was charged operating expenses beginning October 12, 2006.
    NexGen Financial Limited Partnership, the Manager, expects to continue to absorb expenses relating to the operation of the Fund until such time as this Fund is of sufficient size to reasonably absorb all
    expenses.
    Management expense ratio before waivers and absorptions prior to Dec. 31, 2009 were restated to conform to the presentation in subsequent periods.
4   The Fund invests in shares of the Tax Managed Fund and does not directly incur portfolio transaction costs. The trading expense ratio represents total commissions and other portfolio transaction costs of
    the underlying Tax Managed Fund expressed as an annualized percentage of daily the daily average transactional NAV of the Tax Managed Fund during the period.
5   The Fund’s portfolio turnover rate indicates how the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the
    securities in its portfolio once in the course of the period. Typically, the higher a fund’s portfolio turnover rate, the greater the trading costs payable by a fund. The higher portfolio turnover rate experienced
    by the Fund starting in 2010 represents the required rebalancing of the Fund’s debt & equity shares of the underlying Tax Managed Fund and has not adversely affected the cost or the performance of the
    Fund. There is not necessarily a relationship between a high turnover rate and the performance of a fund.
6   The Fund commenced offering the Low Load Series on March 8, 2010.




      NEXGEN FINANCIAL LIMITED PARTNERSHIP

				
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