Brand Leaders Income Fund Interim Financial Statements · PDF file 2017-11-30 ·...

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Transcript of Brand Leaders Income Fund Interim Financial Statements · PDF file 2017-11-30 ·...

  • Brand Leaders Income Fund

    Interim Financial Statements

    (Unaudited)

    June 30, 2014

    tained at your request, and at no cost, by calling us at 866 998 8298; by writing to us at Harvest Portfolios Group, 710 Dorval Drive, Suite 209, Oakville, Ontario, L6K 3V7; by visiting our website at www.harvestportfolios.com; or on SEDAR at www.sedar.com.

    Brand Leaders Income Fund

  • Brand Leaders Income Fund

    STATEMENTS OF FINANCIAL POSITION (Unaudited)

    As at June 30,

    2014 December

    2013 January 1,

    2013 Assets Current assets Investments (cost: June 30, 2014 - $20,623,528; December 31, 2013 - $22,118,908; January 1, 2013 - $25,069,489) $ 27,438,693 $ 29,915,604 $ 27,436,352 Cash 912,591 75,415 824,009 Dividends receivable 60,112 44,307 9,443 Receivable for investments sold 40,512 - - Unrealized appreciation on foreign currency forward contracts(Note 6) 522,950 - - 28,974,858 30,035,326 28,269,804 Liabilities Current liabilities Distributions payable 147,674 155,769 165,534 Warrants (Note 4) 261,000 - - Payable for option contracts written (cost: June 30, 2014 - $41,329; December 31, 2013 - $Nil; January 1, 2013 - $75,003) 39,976 -

    70,142

    Unrealized depreciation on foreign currency forward contracts (Note 6) - 98,521 298,367 448,650 254,290 534,043 Net assets attributable to holders of redeemable units $ 28,526,208 $ 29,781,036 $ 27,735,761 Number of units outstanding (Note 4) 2,271,907 2,396,448 2,546,678 Number of warrants outstanding (Note 4) 1,186,621 n/a n/a Net assets attributable to holders of redeemable units per unit $ 12.56 $ 12.43 $ 10.89

    The accompanying notes are an integral part of these financial statements.

    31,

    1

  • Brand Leaders Income Fund

    STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) For the six-month period ended June 30, 2014 2013 Income Net gain (loss) on investments Dividends $ 365,820 $ 422,228 Interest for distribution purposes 121 - Net realized gain (loss) on sale of investments 2,611,839 875,124 Net change in unrealized appreciation (depreciation) of investments (980,178) 2,431,387 Net gain (loss) on investments 1,997,602 3,728,739 Net gain (loss) on derivatives Net realized gain (loss) on foreign exchange (759,709) (870,739) Net change in unrealized appreciation (depreciation) of foreign exchange 616,141 (643,246) Net change in warrant appreciation (depreciation) (108,000) - Net gain (loss) on derivatives (251,568) (1,513,985) Total income (net) 1,746,034 2,214,754 Expenses (Note 5) Management fees 131,531 138,940 Service fees 57,733 61,372 Withholding taxes 48,254 56,250 Unitholder reporting costs 101,384 100,411 Audit fees 8,449 7,774 Transfer agency fees 4,772 5,020 Custodian fees and bank charges 22,613 27,818 Independent review committee fees 4,355 4,032 Filing fees 28,433 22,894 Legal fees 9,723 10,043 Transaction costs (Note 7) 13,736 12,989 Total expenses 430,983 447,543 Increase (decrease) in net assets attributable to holders of redeemable units $ 1,315,051 $ 1,767,211 Increase (decrease) in net assets attributable to holders of redeemable units per unit $ 0.62 $ 0.73

    The accompanying notes are an integral part of these financial statements.

    2

  • Brand Leaders Income Fund

    STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS (Unaudited) For the six-month period ended June 30, 2014 2013 Net assets attributable to holders of redeemable units beginning of period $ 29,781,036 $ 27,735,761

    Increase (decrease) in net assets attributable to holders of redeemable units 1,315,051 1,767,211

    Redeemable unit transactions Proceeds from issue of redeemable units on warrants exercised 4,291,698 - Cancellation of redeemable units (5,755,991) (1,660,139) Warrants (153,000) -

    (43,867) - Cost of issue (100,814) -

    $ (1,761,974) $ (1,660,139)

    Distributions to holders of redeemable units Net investment income (807,905) (945,459) Capital gains - - Return of capital - - Total distributions to holders of redeemable units (807,905) (945,459)

    Net assets attributable to holders of redeemable units end of period $ 28,526,208 $ 26,897,374

    The accompanying notes are an integral part of these financial statements.

    3

  • Brand Leaders Income Fund

    STATEMENTS OF CASH FLOWS (Unaudited)

    For the six-month period ended June 30, 2014 2013

    Operating activities

    Increase (decrease) in net assets attributable to holders of redeemable units $ 1,315,051 $ 1,767,211

    Add (deduct) items not affecting cash Realized (gain) loss on sale of investments (2,611,839) (875,124) Change in unrealized (appreciation) depreciation of investments 980,178 (2,431,387) Proceeds from sale of investments 9,517,531 5,406,307 Purchases of investments (5,409,495) (2,565,156)

    Net change in non-cash assets and liabilities (529,276) 600,468 Net cash flow provided by (used in) operating activities 3,262,150 1,902,319

    Financing activities Proceeds from redeemable units issued 4,291,698 - Redemption and cancellation of redeemable units (5,755,991) (1,660,139)

    (43,867) - Issuance costs (100,814) - Distributions paid to holders of redeemable units (816,000) (954,996) Net cash flow provided by (used in) financing activities $ (2,424,974) $ (2,615,135)

    Net increase (decrease) in cash during the period 837,176 (712,816)

    Cash, beginning of the period 75,415 824,009 Cash, end of the period $ 912,591 $ 111,193 Supplemental disclosure of cash flow information Interest received during the period* $ 121 $ - Dividends received, net of withholding taxes* $ 301,751 $ 331,114

    *included in operating activities

    The accompanying notes are an integral part of these financial statements.

    4

  • Brand Leaders Income Fund

    SCHEDULE OF INVESTMENTS (Unaudited) As at June 30, 2014 Number of Shares Security

    Average Cost ($)

    Carrying Value ($)

    % of Net Assets

    EQUITIES Banking and Other Financial Issuers

    18,900 American Express Company 1,222,945 1,909,860 6.7 32,700 HSBC Holdings PLC ADR 1,610,555 1,769,384 6.2

    2,833,500 3,679,244 12.9 Consumer Discretionary Issuers

    20,700 The Walt Disney Company 972,965 1,890,447 6.6 972,965 1,890,447 6.6

    Consumer Staple Issuers 15,500 Anheuser-Busch InBev NV ADR 1,208,910 1,897,640 6.7 25,700 Kellogg Co. 1,497,972 1,798,495 6.3 40,000 The Coca-Cola Company 1,393,404 1,804,790 6.3

    4,100,286 5,500,925 19.3 Energy Issuers

    20,300 Royal Dutch Shell PLC Cl. A ADR 1,487,501 1,781,049 6.2 1,487,501 1,781,049 6.2

    Industrials Issuers 11,800 3M Co. 1,261,461 1,800,350 6.3 15,600 Caterpillar Inc. 1,541,235 1,805,698 6.3 12,300 Siemens AG 1,398,481 1,731,867 6.1 16,300 United Parcel Service, Inc. Cl. B 1,393,455 1,782,377 6.2

    5,594,632 7,120,292 24.9 Information Technology Issuers

    19,600 Apple Inc. 1,277,602 1,940,094 6.8 60,100 Intel Corporation 1,378,224 1,978,079 6.9 9,200 International Business Machines Corporation 1,687,988 1,776,334 6.2

    39,900 Microsoft Corporation 1,290,830 1,772,229 6.2 5,634,644 7,466,736 26.1 Total equities 20,623,528 27,438,693 96.0

    OPTIONS Banking and Other Financial Issuers

    (4,500) American Express Company - Jul 2014 @ USD $98 (2,061) (2,061) - (2,061) (2,061) -

    Consumer Discretionary Issuers (4,900) The Walt Disney Company - Jul 2014 @ USD $88 (2,140) (2,296) -

    (2,140) (2,296) -

    The accompanying notes are an integral part of these financial statements.

    5

  • Brand Leaders Income Fund

    SCHEDULE OF INVESTMENTS (continued) (Unaudited) As at June 30, 2014 Number of Shares Security

    Average Cost ($)

    Carrying Value($)

    % of Net Assets

    Consumer Staple Issuers (3,700) Anheuser-Busch InBev NV - Jul 2014 @ USD $115 (7,882) (6,976) - (6,100) Kellogg Co. - Jul 2014 @ USD $68 (2,269) (1,949) - (9,600) The Coca-Cola Company - Jul 2014 @ USD $43 (1,841) (1,841) -

    (11,992) (10,766) - Industrials Issuers

    (2,800) 3M Co. - Jul 2014 @ USD $145 (2,654) (1,998) - (3,600) Caterpillar Inc. - Jul 2014 @ USD $110 (3,183) (2,761) -

    (5,837) (4,759) - Information Technology Issuers

    (4,700) Apple Inc. - Jul 2014 @ USD $94 (5,607) (7,009) - (14,400) Intel Corporation - Jul 2014 @ USD $31 (7,669) (7,669) -

    (2,200) International Busine