CAN EQUITY MRFP 2007 by dfsdf224s

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									                                                              Northwest Tactical Yield Fund

Annual Management Report of Fund                               Results of Operations
Performance as at September 30, 2010                           The inception date of the Fund was September 1, 2010.
                                                               Historic performance reporting is not permitted until the
                                                               Portfolio has at least 12 months of performance.
This Annual Management Report of Fund Performance
contains financial highlights but does not contain either      The blended benchmark is composed of an 20% weight
interim or annual financial statements of the investment       in the DEX Universe Bond Index, a 10% weight in the
fund. You can get a copy of the interim or annual              S&P/TSX 60 Index, a 30% weight in the Russell 3000
financial statements at your request, and at no cost, by       Value Index (US$) and a 40% weight in the Barclays
calling 1-888-809-3333, by writing us at Northwest &           Capital U.S. High Yield Index (US$).
Ethical Investments L.P., 155 University Avenue Suite
400, Toronto, ON M5H 3B7 or by visiting our website at         For the full 12 months the benchmark returned The Dex
www.northwestfunds.com or SEDAR at www.sedar.com.              Universe Bond Index returned 7.33%, the S&P/TSX 60
                                                               returned 8.73%, Russell 3000 Value Index returned
Security holders may also contact us using one of these        9.15%, and the Barclays Capital U.S. High Yield Index
methods to request a copy of the investment fund’s proxy       returned 18.24%.
voting policies and procedures, proxy voting disclosure
record, or quarterly portfolio disclosure.                     Asset Allocation
                                                               At the end of the period the portfolio had 29% exposure in
                                                               investment grade bonds, 7% weight in Canadian Equities
Management Discussion of Performance                           and 19% weight in US Equities and a 45% weight in High
                                                               Yield Bonds. See “Summary of Investment Portfolio” for
Investment Objective and Strategies                            list of actual Mutual Funds held in the Portfolio.
The Northwest Tactical Yield Fund aims to generate a
high level of income while providing some potential for        Recent Developments
capital growth primarily through exposure to a portfolio of    With extremely low interest rates and lower inflation
fixed income and high yielding equity securities. The Fund     expectations, demand for high yield bonds continued to
uses a tactical approach to asset allocation based on the      be strong in September, in this environment the high yield
attractiveness of the asset class and potential return.        bond market returned 2.92%. For the course of the
Security holder approval (by a majority of votes cast at a     month, the Fund on average had a neutral allocation to
meeting of security holders) is required prior to a            the high yield bond market.
fundamental change of investment objectives.
                                                               A round of positive economic releases welcomed
The Fund will invest primarily in debt and income‐oriented     investors during the month. Retail same-store sales
equity securities with no restrictions on market               increased by 3.6% for August, well above consensus, and
capitalization, industry sector or geographic mix. The         initial jobless claims fell to 453,000 for the week ending
allocations will be decided on a tactical basis by the         September 25, the lowest level since July. Equities
Portfolio sub‐advisor based on the attractiveness of the       surged on the upbeat news. The equity market, measured
asset class and potential return. Considerations may           by the Russell 3000 Value Index, returned 4.19%.
include, but not limited to: Economic and market
conditions, cash yields, total return characteristics and      The Fund on average had an underweight in this equity
risk profiles.                                                 allocation.

Risk                                                           Canadian equities performed well for the month but not
                                                               as strongly as the U.S. equity market (measured in local
The risks associated with investing in the Fund remain as
                                                               currency). The run-up in commodity prices and a stable
discussed in the prospectus. This Fund is suitable for
                                                               recovery in the housing market also contributed to the
investors with a below average tolerance for risk. It is
                                                               strong performance. Canadian equities, measured by the
best suited to those seeking exposure to both fixed-
                                                               S&P TSX60, returned 3.28% for the month. The Fund on
income and equity securities.
                                                               average had a neutral allocation to Canadian equities.
Given the fund is one month old no update on risks has
                                                               Canadian government bonds lagged the other asset
been included.
                                                               classes in September, as investors ran for riskier assets.
                                                               Canadian fixed income, as measured by the DEX
                                                               Universe, materially underperformed the high yield bond
                                                               and equity markets, returning 0.65% for the month. The
                                                               Northwest Tactical Yield Fund

Fund on average had an overweight in this                       • Statement of Cash Flows:
underperforming market.                                         According to current accounting policies (Section 1540,
                                                                Cash Flow Statements), presentation of the Cash Flow
The month of September was characterized as one in              Statement is not required when the cash flow information
which riskier assets performed exceptionally well.              is readily apparent from other financial statements or is
Sentiment toward a double-dip recession faded, and              adequately disclosed in the Notes to the Financial
corporate earnings have been remarkably strong. With            Statements.
the backdrop of declining default rates, strong balance
sheets and solid corporate earnings, fundamentals are           In accordance with IAS 7, Statements of Cash Flows, the
supportive of both the corporate debt and equity markets.       presentation of the Statement of Cash Flows will be
The decision to be underweight equities was mostly              required for all entities.
driven by concerns centring on the high levels of volatility
in the market.                                                  A team was appointed to oversee the IFRS conversion
                                                                project. Beginning in 2011, the team will start gathering
International Financial Reporting Standards                     comparative information as of March 31, 2012 in order to
In February 2008, the Canadian Institute of Chartered           prepare for the semi-annual financial statements ending
Accountants (“CICA”) announced that Canadian                    March 31, 2013 under Canadian GAAP and in
Generally Accepted Accounting Principals (the “GAAP”),          accordance with IFRS standards.
for publically accountable enterprises, will be replaced by
International Financial reporting Standards (“IFRS”) and it     Currently, the Manager has determined that the transition
will apply to semi-annual and annual financial statements       to IFRS will have no significant impact on the Funds’ NAV
for fiscal years beginning on or after January 1, 2011.         per unit.

In October 2010, the CICA amended the date of                   Related Party Transactions
application of IFRS for investment companies that apply         Northwest & Ethical Investments L.P. (“NEILP”) is the
the accounting guideline on investment companies                Manager, the Trustee, the Portfolio Manager and the
(AcG-18). Hence, IFRS will be adopted for interim and           Registrar of the Fund. NEILP is 50% owned by the
annual financial statements for periods beginning               Fédération des caisses Desjardins du Québec
January 1, 2012.                                                (“Fédération”) and 50% indirectly owned by seven
                                                                Provincial Credit Union Centrals.
Northwest and Ethical Investments L.P. (the “Manager”)
monitors developments in the IFRS conversion program            NEILP is the Manager of the Fund pursuant to the
and, in particular, the key elements below:                     administration agreement. The Manager ensures the daily
                                                                administration of the Fund. NEILP provides the Fund or
•   Changes in accounting policies;
                                                                makes sure the Fund is provided with all services
•   Impacts on information technology and data systems;
                                                                (accounting, custody, portfolio management, record
•   Impacts on internal control over financial reporting;
                                                                maintenance, transfer agent) required to function properly.
•   Impacts on disclosure controls and procedures;
                                                                The fees are presented in the “Management Fees”
•   Impacts on expertise in financial reporting.
                                                                section.
As of today, the Manager has completed the identification
                                                                Desjardins Trust Inc. is the custodian of the Fund.
phase and the effects of conversion to IFRS standards.
                                                                Desjardins Trust Inc. is a wholly-owned subsidiary of the
The Manager established that conversion to the current          Fédération, which is a 50% owner of NEILP. Before
IFRS will essentially change the following policies:            November 1, 2009, the custodian fees of Desjardins Trust
                                                                Inc. were at the Funds’ expense. Since that date, the fees
• Classification of Units:                                      are at NEILP’s expense and are established based on
According to current accounting policies (EIC-149,              market conditions.
Accounting for Retractable or Mandatory Shares) units
are presented to the unitholders’ equity.                       Management, custodian and administrative fees
                                                                presented in the Statement of Operations are incurred by
In accordance with IAS 1, Presentation of Financial             the Fund with NEILP or with other companies of which
Statements, and IAS 32, Financial Instruments:                  Fédération is a significant owner.
Presentation, units will be classified as liabilities or as
unitholders equity based on the units’ characteristics.         These transactions are in the normal course of operations
                                                                and are measured at the exchange amount, which is the
                                                                Northwest Tactical Yield Fund

amount of consideration established and agreed to by the
related parties.

At the end of the period ended September 30, 2010,
accrued expenses payable to related parties are $3,128.

During the period ended September 30, 2010, the Fund
received $4,022 of interest and $557 of dividends from
the underlying funds managed by the Fund’s Manager.

The Fund is distributed through Credential Asset
Management Inc., Credential Securities Inc, Desjardins
Securities Inc., Desjardins Financial Services Firm Inc.,

Desjardins Financial Security Investments Inc. and
Gestions SFL Inc. and other non-related dealers. The
named dealers are related to NEILP by way of shared
ownership. NEILP pays to these related parties
distribution and servicing fees based on a percentage of
the average daily value of the units of each held by the
dealer’s clients and additionally, in some cases, on the
amount of the initial purchase.

This document contains forward-looking statements.
Such statements are generally identifiable by the
terminology used, such as “plan”, “anticipate”, “intend”,
“expect”, “estimate”, or other similar wording. These
forwardlooking statements are subject to known and
unknown risks and uncertainties and other factors which
may cause actual results, levels of activity and
achievements to differ materially from those expressed or
implied by such statements. Such factors include, but are
not limited to: general economic, market and business
conditions; fluctuations in securities prices, fluctuation in
interest rates and foreign currency exchange rates; and
actions by governmental authorities. Future events and
their effects on the fund may not be those anticipated by
us. Actual results may differ materially from the results
anticipated in these forward-looking statements. We do
not undertake, and specifically disclaim, any obligation to
update or revise any forward-looking information,
whether as a result of new information, future
developments or otherwise.
                                                                             Northwest Tactical Yield Fund
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 the
last period.

Net Assets per Unit(1) - Northwest Tactical Yield Fund, Series A
                                                                         September 30     September 30      September 30      September 30      September 30
                                                                             2010*            2009              2008              2007              2006
                                                                           (1 month)       (12 months)       (12 months)       (12 months)       (12 months)
                                                                               $                $                 $                 $                 $

Net assets, beginning of period                                             10.00             4.97               7.74             7.31              6.73
Increase (decrease) from operations:
Total revenue                                                                 0.05            0.21               0.26             0.22              0.17
Total expenses                                                              (0.02)           (0.14)             (0.20)           (0.24)            (0.20)
Realized gains (losses)                                                       0.01           (1.73)             (1.01)            1.05              0.15
Unrealized gains (losses)                                                     0.07            2.45              (1.70)           (1.00)             0.46
Commissions and other portfolio transaction costs                                -           (0.02)             (0.04)           (0.03)                -
Total increase (decrease) from operations(2)                                  0.11            0.77              (2.69)           (0.00)             0.58
Distributions:
From income (excluding dividends)                                               -                -                  -                -                 -
From dividends                                                                  -             0.09                  -                -                 -
From capital gains                                                              -                -                  -                -                 -
Return of capital                                                               -                -                  -                -                 -
Total Distributions(3)                                                          -             0.09                  -                -                 -
Net Assets, End of Period                                                   10.07             5.77               4.97             7.74              7.31
* Beginning of Operations in September 2010.
(1) This information is derived from the Fund’s audited annual financial statements. 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 the notes to the financial
statements.
(2) Net assets and distributions are based on the actual number of units outstanding 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 paid in cash or reinvested in additional units of the Fund.



Ratios and Supplemental Data - Northwest Tactical Yield Fund, Series A
                                                                         September 30     September 30      September 30      September 30      September 30
                                                                             2010*            2009              2008              2007              2006
                                                                           (1 month)       (12 months)       (12 months)       (12 months)       (12 months)

Total net asset value (000’s of $)                                           2,437           14,703            15,553            30,263            16,648
Number of units outstanding                                                241,886        2,539,510         3,125,392         3,904,114         2,277,397
Management expense ratio (%)(1)                                               2.41             3.03              2.96              2.87              2.89
Management expense ratio before waivers
 and absorptions (%)                                                          2.41              3.12              2.96             2.94              3.07
Trading expense ratio (%)(2)                                                  0.57              0.40              0.59             0.37              0.24
Portfolio turnover rate (%)(3)                                                4.32             93.03             85.72            53.56             41.99
Net asset value per unit ($)                                                 10.08              5.79              4.98             7.75              7.31
* Beginning of Operations in September 2010.
(1) Management expense ratio is based on total expenses (excluding commissions and other portfolio transaction costs) for the stated period and is
expressed as an annualized percentage of daily average net asset value during the period.
(2) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily
average net asset value during the period.
(3) The Fund's portfolio turnover rate indicates how actively 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. The higher a fund's portfolio
turnover rate in a period, the greater the trading costs payable by the fund in the period, and the greater the chance of an investor receiving taxable
capital gains in the period. There is not necessarily a relationship between a high turnover rate and the performance of a fund.
                                                                            Northwest Tactical Yield Fund
Financial Highlights
Net Assets per Unit(1) - Northwest Tactical Yield Fund, Series F

                                                                        September 30     September 30      September 30     September 30      September 30
                                                                            2010*            2009              2008             2007              2006
                                                                          (1 month)       (12 months)       (12 months)      (12 months)       (12 months)
                                                                              $                $                 $                $                 $

Net assets, beginning of period                                            10.00              9.84            15.27            14.31             13.05
Increase (decrease) from operations:
Total revenue                                                                0.04            0.41               0.52             0.42              0.33
Total expenses                                                             (0.01)           (0.18)            (0.26)           (0.29)            (0.25)
Realized gains (losses)                                                      0.01           (3.32)            (1.97)             2.03              0.30
Unrealized gains (losses)                                                    0.06            4.81             (3.41)           (1.24)              0.98
Commissions and other portfolio transaction costs                               -           (0.04)            (0.08)           (0.06)                 -
Total increase (decrease) from operations(2)                                 0.10            1.68             (5.20)             0.86              1.36
Distributions:
From income (excluding dividends)                                           0.01                -                  -               -                 -
From dividends                                                              0.02             0.30               0.13            0.05                 -
From capital gains                                                             -                -                  -               -                 -
Return of capital                                                           0.02                -                  -               -                 -
Total Distributions(3)                                                      0.05             0.30               0.13            0.05                 -
Net Assets, End of Period                                                  10.02            11.41               9.84           15.27             14.31
* Beginning of Operations in September 2010.
(1) This information is derived from the Fund’s audited annual financial statements. 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 the notes to the financial
statements.
(2) Net assets and distributions are based on the actual number of units outstanding 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 paid in cash or reinvested in additional units of the Fund.




Ratios and Supplemental Data - Northwest Tactical Yield Fund, Series F
                                                                        September 30     September 30      September 30     September 30      September 30
                                                                            2010*            2009              2008             2007              2006
                                                                          (1 month)       (12 months)       (12 months)      (12 months)       (12 months)

Total net asset value (000’s of $)                                             69           40,015           41,190             71,313           60,054
Number of units outstanding                                                 6,917        3,498,205        4,177,161         4,661,184         4,195,527
Management expense ratio (%)(1)                                              1.37             1.96             1.92              1.81              1.83
Management expense ratio before waivers
 and absorptions (%)                                                         1.37             2.05             1.92               1.89              2.03
Trading expense ratio (%)(2)                                                 0.57             0.40             0.59               0.37              0.24
Portfolio turnover rate (%)(3)                                               4.32            93.03            85.72              53.56             41.99
Net asset value per unit ($)                                                10.02            11.44             9.86              15.30             14.31

* Beginning of Operations in September 2010.
(1) Management expense ratio is based on total expenses (excluding commissions and other portfolio transaction costs) for the stated period and is
expressed as an annualized percentage of daily average net asset value during the period.
(2) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily
average net asset value during the period.
(3) The Fund's portfolio turnover rate indicates how actively 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. The higher a fund's portfolio
turnover rate in a period, the greater the trading costs payable by the fund in the period, and the greater the chance of an investor receiving taxable
capital gains in the period. There is not necessarily a relationship between a high turnover rate and the performance of a fund.
                                                                                 Northwest Tactical Yield Fund
Financial Highlights
Net Assets per Unit(1) - Northwest Tactical Yield Fund, Series T
                                                                            September 30       September 30          September 30   September 30      September 30
                                                                                2010*              2009                  2008           2007              2006
                                                                              (1 month)         (12 months)           (12 months)    (12 months)       (12 months)
                                                                                  $                  $                     $              $                 $
Net assets, beginning of period                                                10.00                 8.38               12.70          11.98              10.74
Increase (decrease) from operations:
Total revenue                                                                    0.05                0.35                0.44           0.34               0.29
Total expenses                                                                 (0.02)                    -                   -              -                 -
Realized gains (losses)                                                          0.01               (2.73)              (1.92)          1.37               0.28
Unrealized gains (losses)                                                        0.05                4.21               (2.95)         (0.88)              0.89
Commissions and other portfolio transaction costs                                   -               (0.03)              (0.06)         (0.05)                 -
Total increase (decrease) from operations(2)                                     0.09                1.80               (4.49)          0.78               1.46
Distributions:
From income (excluding dividends)                                                  -                    -                   -              -                  -
From dividends                                                                  0.02                 0.36                0.10           0.39                  -
From capital gains                                                                 -                    -                   -              -                  -
Return of capital                                                               0.03                    -                   -              -                  -
Total Distributions(3)                                                          0.05                 0.36                0.10           0.39                  -
Net Assets, End of Period                                                      10.02                 9.75                8.38          12.70              11.98
* Beginning of Operations in September 2010.
(1) This information is derived from the Fund’s audited annual financial statements. 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 the notes to the financial statements.
(2) Net assets and distributions are based on the actual number of units outstanding 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 paid in cash or reinvested in additional units of the Fund.

Ratios and Supplemental Data - Northwest Tactical Yield Fund, Series T
                                                                            September 30       September 30          September 30   September 30      September 30
                                                                                2010*              2009                  2008           2007              2006
                                                                              (1 month)         (12 months)           (12 months)    (12 months)       (12 months)
Total net asset value (000’s of $)                                             1,228                  20,147            15,995          8,897            5,185
Number of units outstanding                                                  122,443               2,062,111         1,903,866        699,616          432,649
Management expense ratio (%)(1)                                                 2.42                     N/A               N/A            N/A              N/A
Management expense ratio before waivers
 and absorptions (%)                                                            2.42                   N/A               N/A             N/A               N/A
Trading expense ratio (%)(2)                                                    0.57                   0.40              0.59            0.37              0.24
Portfolio turnover rate (%)(3)                                                  4.32                  93.03             85.72           53.56             41.99
Net asset value per unit ($)                                                   10.03                   9.77              8.40           12.72             11.98
* Beginning of Operations in September 2010.
(1) Management expense ratio is based on total expenses (excluding commissions and other portfolio transaction costs) for the stated period and is expressed
as an annualized percentage of daily average net asset value during the period.
(2) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net
asset value during the period.
(3) The Fund's portfolio turnover rate indicates how actively 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. The higher a fund's portfolio turnover rate in a
period, the greater the trading costs payable by the fund in the period, and the greater the chance of an investor receiving taxable capital gains in the period.
There is not necessarily a relationship between a high turnover rate and the performance of a fund.

Management Fees
The Manager is responsible for the management, supervision and administration of the Fund. The Manager receives from the Tactical
Yield Fund management fees, before GST, calculated daily on the net asset value of the Fund at an annual rate of 1.95% for Series A
units, 0.95% for Series F units and 1.95% for Series T units.
The management fee covers the cost of investment advisory fees, sales, marketing, and distribution expenses of the Fund. In
addition, the Manager pays a trailer fee to dealers out of this management fee. The trailer fee is a percentage of the average daily
value of the units of the Fund held by the dealer’s clients.
The following table shows the major services paid for out of management fees as a percentage of the management fee for Series A,
Series F and Series T units:
                                                          Management Fee         Investment            Trailer Fee
                                                                              Advisory and other
 Series A                                                      1.95%                89.94%              10.06%
 Series F                                                      0.95%                 100%                 N/A
 Series T                                                      1.95%                87.06%              12.94%
                                                                       Northwest Tactical Yield Fund
Summary of Investment Portfolio as at September 30, 2010
Total Net Asset Value: $3,434,970

POSITIONS (long positions)*                                           %       NET ASSET VALUE MIX
AND NET ASSET VALUE MIX                                                       as at September 30, 2010                             %

                                                                              Cash and Cash Equivalents                           31.3
1      Northwest Specialty Global High Yield Bond Fund, Series I     31.9
                                                                                Derivative Financial Instruments                   0.0
2      Cash and Cash Equivalents                                     31.3
                                                                                Derivative Financial Instruments-CAD               0.0
3      iShares CND DEX Universe Bond Index Fund                      19.2
                                                                              Investment Funds                                    68.7
4      iShares Russell 3000 Index Fund                               13.1
5      Northwest Canadian Dividend Fund, Series I                     4.5     Total Net Asset Value                           100.0
       Total                                                        100.0
                                                                              SECTOR ALLOCATION
                                                                              as at September 30, 2010                             %
    * There is no short position in this Fund.
    The Summary of Investment Portfolio may change due to ongoing portfolio   Investment Funds                                    68.7
    transactions of the investment fund.                                      Cash and Cash Equivalents                           31.3
    A quarterly update is available.                                          Derivatives                                          0.0
                                                                              Total Net Asset Value                           100.0


                                                                              GEOGRAPHIC DISTRIBUTION
                                                                              as at September 30, 2010                             %

                                                                              Canada                                              55.6
                                                                              Cash and Cash Equivalents                           31.3
                                                                              United States                                       13.1
                                                                              Total Net Asset Value                           100.0




                                                      1-888-809-3333
                                                   www.northwestfunds.com
                                                                                                                       NWT 190E    000A

								
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