Amendment to Policy Statement to Regulation 81-106 respecting Investment Fund Continuous Disclosure

CHANGES TO POLICY STATEMENT TO REGULATION 81-106 RESPECTING INVESTMENT FUND CONTINUOUS DISCLOSURE

1. Section 3.3 of Policy Statement to Regulation 81-106 respecting Investment Fund
   Continuous Disclosure is changed:
   (1) by replacing “Management Reports of Fund Performance” in the title by “Fund Reports”; (2) by replacing “management reports of fund performance” by “fund reports”.
2. The title of part 4 of the Policy Statement is changed by replacing “MANAGEMENT
   REPORTS OF FUND PERFORMANCE” by “FUND REPORTS”.
3. Section 4.1 of the Policy Statement is changed:
   (1) by replacing “management reports of fund performance” in the text preceding subparagraph (a) of paragraph (1) by “fund reports”; (2) by striking out “Investment funds are obligated to state on the first page of their management reports of fund performance that this disclosure is available.” in paragraph (5).
4. Section 4.3 of the Policy Statement is changed by replacing “management report of
   fund performance” by “fund report” and “management reports” by “fund reports”.
5. The Policy Statement is changed by inserting, after section 4.5, the following part:
   “PART 4.1 FUND REPORT
   Sample
   4.1.1. A sample fund report is set out in Appendix C to this Policy Statement. The
   sample is provided for illustrative purposes only.”.
6. Section 10.1 of the Policy Statement is changed:
   (1) by replacing “management report of fund performance” in paragraph (1) by “fund report”; (2) by striking out paragraph (5).
7. The Policy Statement is changed by adding, at the end, the following appendix:
   “APPENDIX C SAMPLE FUND REPORT

XYZ Canadian Equity Fund
Annual Fund Report 1
ANNUAL FUND REPORT (for the 12-month period ended March 31, 2022) XYZ Mutual Funds | XYZ Canadian Equity Fund | www.xyzfunds.com | Preparation Date: June 28, 2022 Purpose and Content This Annual Fund Report contains important information about your fund. Use this report and speak with your representative to assess whether your fund continues to be right for you. This document is intended for investors of all backgrounds and levels of investment experience. It includes the following information about your fund:
APPENDIX C – SAMPLE FUND REPORT
1. Investment Objectives and Investment Strategies
1. Investment Objectives and Strategies
2. Portfolio Holdings
3. Costs
4. Performance
5. Statistics
6. Risk Profile
7. Liquidity Profile
8. Borrowing and Leverage
9. Other Material Information
10. Additional Resources.
Summary of fund’s investment objectives and investment strategies Fund’s satisfaction of its investment objectives and use of investment strategies during the last 12 months Factors that may impact the fund’s satisfaction of its investment objectives and use of investment strategies going forward

• This fund aims to increase the
  value of your investment by investing in a broad range of equity securities of Canadian companies of any size and from any industry.
• Equities are selected that trade
  below their intrinsic value, demonstrate superior earnings growth and positive price momentum.
• During the period,
  the net asset value of the fund increased from $1.05 billion to $1.2 billion due to positive performance, partially offset by net redemptions.
• While long-term prospects for Canadian equities are positive,
  strong equity market performance in the period covered by this Fund Report, coupled with full valuation levels across most sectors, is likely to lead to more modest returns.
• Equity markets and the global economy may be challenged by
  high inflation levels, continued supply-chain issues, geopolitical uncertainty and rising interest rates.
• Risk related to U.S. Federal Reserve policy could slow growth by
  raising interest rates too quickly or could fail to contain inflation by raising them too slowly, leading to larger rate increases. Important: This Annual Fund Report may contain forward-looking statements that reflect current forecasts of future events. Due to many factors, such as general economic and political conditions in Canada and internationally, actual events may differ materially from those expressed in, or implied by, these forward-looking statements. Do not overly rely on forward-looking statements to make investment decisions.

XYZ Canadian Equity Fund
Annual Fund Report 2
3. Costs (information is provided as of March 31, 2022)
Increased exposure Decreased exposure

• Energy industry • Materials sector
  More Information:
• See the designated website for the fund’s Quarterly Portfolio Disclosure.
• More detailed portfolio holdings information is available in the financial statements for the fund, in particular the Statement of Investment
  Portfolio.
  Summary:
  The fund expense ratio for Series A (the series with the highest fund expense ratio) was 2.57%. The fund expense ratio of Series A increased by 0.01% as compared to the year prior. Did you know... A fund’s management expense ratio (“MER”) is the total of the fund’s management fee (which includes the trailing commission) and operating expenses. A fund’s trading expense ratio (“TER”) represents the fund’s trading costs. Fund expenses reduce the return on your investment. A fund expense ratio (“FER”) is the total of the fund’s MER and TER. Each investment fund can have different classes or series of securities and each class or series can have different costs and therefore different returns – make sure you know which class or series you hold.

4. Performance
   Summary:
   Performance of the Series A units (+26.2%) was lower than the fund’s benchmark, the S&P/TSX Composite Total Return Index (+27.5%) over the period covered by the report. Did you know... A benchmark is typically a market or sector index against which the performance of an investment fund can be measured. By comparing a fund to an appropriate benchmark, you can see how the investments held by the fund performed compared to the market or sector in general.
5. Portfolio Holdings
   For the year ended March
   31, 2022
   Management expense ratio (%)1
   Trading expense ratio (%)
   Fund expense ratio (%)
   The fund expense ratio represents the total of all ongoing expenses set out in this table and does not represent a separate expense charged to the investment fund. Fund expenses ($) per $1000 invested Series A 2.50 0.07 2.57 26 Series B 2.40 0.07 2.47 25 Series T5 1.81 0.07 1.88 19 Series D 1.05 0.07 1.12 11 Series F 0.77 0.07 0.84 8 Series FT5 0.77 0.07 0.84 8 Series I 0.25 0.07 0.32 3 Series O 0.02 0.07 0.09 1 1 See Other Material Information for MER without waivers or absorptions.

XYZ Canadian Equity Fund
Annual Fund Report 3
Important:

• Performance of the series of securities that you hold may not be presented in this Fund Report. Information is only
  presented in respect of the series with the highest management fee (Series A).
• Returns provided are after expenses have been deducted. These expenses reduce the fund’s returns and they negatively
  compound over time since the money used to pay expenses is not able to grow.
• Past performance of the fund does not necessarily indicate how the fund will perform in the future. For example, strong past
  performance may not be repeated.
• The benchmark of the fund is the S&P/TSX Composite Total Return Index. The S&P/TSX Composite Total Return Index is a
  market capitalization-weighted index of securities of the largest and most liquid companies on the Toronto Stock Exchange. Performance against benchmark Contributors to performance Detractors from performance
• Last year performance of the benchmark
  was 1.3% higher than that of Series A of the fund.
• Overweight allocation to the financials
  sector.
• Exposure to certain stocks in the
  information technology sector.
• Investments in certain stocks in the
  materials sector.
• Underweight allocation to the
  communication services sector. a) Year-by-Year Returns How to Read this Information:
  The following bar chart shows the fund’s annual performance for each of the financial years shown. Series A (%) -20 -10 0 10 20 30 2022 26.2% 2020 15.6% 2019 24.1% 2018 -22.9% 2017 5.3% 2016 15.0% 2015 16.2% 2014 12.9% 2013 26.7% 2021 -7.0% b) Annual Compound Returns How to Read this Information:
• This table shows the fund’s annual compound total returns for the periods indicated, compared with its benchmark.
• All benchmark returns are calculated in Canadian dollars on a total return basis, meaning that all dividend payments, interest
  income accruals and interest payments are reinvested.
• Benchmarks are not investable, and benchmark returns do not reflect transaction costs associated with making actual investments.
  Percentage Return 1 Yr 3 Yr 5 Yr 10 Yr Since Inception (1) Series A 26.2 8.3 13.9 11.3 S&P/TSX Composite Total Return Index 27.5 9.4 15.9 13.3 (1) The return since inception for each series will differ when the inception date differs and is only provided when a series has been active for a period of less than 10 years. More Information:
• If performance information for your series of securities is not included here, refer to the performance information in the Fund Facts for that
  series and on the designated website of the investment fund.
• Find more information about the expenses associated with your fund in its Fund Facts.

XYZ Canadian Equity Fund
Annual Fund Report 4
5. Statistics (information is provided as of March 31, 2022)
Portfolio turnover rate (%) for the year ended March 31, 2022 39.97 For the year ended Mar. 31, 2022 Total distributions ($) Portion of distributions that is return of capital ($) Distribution rate (%) Series A 0.88 0.00 6.50 Series B 0.88 0.00 6.50 Series T5 0.87 0.00 6.60 Series D 1.03 0.00 7.50 Series F 1.17 0.00 7.80 Series FT5 1.13 0.00 7.80 Series I 1.26 0.00 8.40 Series O 1.07 0.00 8.70 Did you know... A fund’s portfolio turnover rate represents how frequently the portfolio manager buys and sells securities. A fund’s distributions can consist of dividends, interest, capital gains, return of capital or other income the fund earns on its investments. A fund’s distribution rate represents its distributions as a percentage of its net asset value per unit.
6. Risk Profile
Did you know...
A mutual fund’s risk rating is based on how much the fund’s returns have changed from year to year. If the fund’s returns vary a lot, the fund may be considered higher risk because its performance can change quickly up or down. The rating can change over time. Monitoring the rating can help you make decisions about whether this fund continues to be appropriate for you.

• During the period covered, there were no changes to the fund that materially affected the overall risk level associated with an investment in
  the fund.
  Risk rating change
  (since the last Fund Report dated September 30, 2021) Added or removed risks (since the last Fund Report dated September 30, 2021)
• No change • No new risks identified and no existing risks removed
  More Information:
• Find your fund’s current risk rating in its most recent Fund Facts document.
• Find a discussion of the risks applicable to your fund in the most recent simplified prospectus.

XYZ Canadian Equity Fund
Annual Fund Report 5
Summary:
The fund could sell (for cash) 83.5% of its holdings within one day, and 99.1% within one week. The fund did not face any liquidity challenges during the reporting period.
7. Liquidity Profile (information is provided as of March 31, 2022)

• There were no material liquidity issues during the reporting period.
  How to Read this Information:
• The following pie chart illustrates the number of days needed to convert the fund’s portfolio holdings into cash under normal
  market conditions. The more of a fund’s portfolio holdings that can be converted into cash within a short timeframe, the more liquid it is and the easier it will be to sell your holdings at a fair price. This can be particularly important during periods of greater than usual market volatility. Decide whether you are comfortable with the liquidity of your fund’s portfolio holdings. 0.4% / 8-30 Days 0.4% / 31-90 Days 0.2% / 91+ Days Liquidity of the Investment Portfolio of Your Investment Fund as at March 31, 2022 83.5% / 1 Day 15.6% / 2-7 Days

8. Borrowing and Leverage
9. Other Material Information
   This fund does not engage in any borrowing or use leverage.
   The investment fund manager waived or absorbed some of the fund’s expenses. Had the investment fund manager not done so, the MER would have been higher. MER without waivers or absorptions for Series D was 1.07% for the year ended March 31, 2022.

XYZ Canadian Equity Fund
Annual Fund Report 6
Contact XYZ Mutual Funds for a copy of this Fund Report, questions about this Fund Report, or a copy of the financial statements for this fund:
To learn more about investing in mutual funds, see the brochure "Understanding mutual funds", which is available on the website of the Canadian Securities Administrators at https://www.securities-administrators.ca/. XYZ Mutual Funds 123 Asset Allocation St. Toronto, ON M1A 2B3 Phone: (416) 555-5555 Toll-free: 1-800-555-5556 E-mail: investing@xyzfunds.com www.xyzfunds.com Your next Fund Report will be prepared for the interim period ended September 30, 2022. Like this Fund Report, it will assist you in making decisions about your investment in this fund.
10. Additional Resources
Designated Website:
CSA Website: