Ninepoint Partners LP...Ninepoint Gold and Precious Minerals Fund Statements of Financial Position...

Ninepoint Partners LP NINEPOINT GOLD AND PRECIOUS MINERALS FUND NINEPOINT ENERGY FUND NINEPOINT GOLD BULLION FUND NINEPOINT DIVERSIFIED BOND FUND NINEPOINT HIGH INTEREST SAVINGS FUND NINEPOINT SILVER BULLION FUND NINEPOINT ENHANCED BALANCED FUND NINEPOINT GLOBAL INFRASTRUCTURE FUND NINEPOINT GLOBAL REAL ESTATE FUND NINEPOINT ALTERNATIVE HEALTH FUND NINEPOINT INTERNATIONAL SMALL CAP FUND NINEPOINT CONCENTRATED CANADIAN EQUITY FUND

Annual Financial Statements

December 31

2019

Contents 7 Ninepoint Gold and Precious Minerals Fund 19 Ninepoint Energy Fund 29 Ninepoint Gold Bullion Fund 37 Ninepoint Diversified Bond Fund 52 Ninepoint High Interest Savings Fund 61 Ninepoint Silver Bullion Fund 69 Ninepoint Enhanced Balanced Fund 82 Ninepoint Global Infrastructure Fund 92 Ninepoint Global Real Estate Fund 103 Ninepoint Alternative Health Fund 116 Ninepoint International Small Cap Fund 127 Ninepoint Concentrated Canadian Equity Fund 137 Notes to Financial Statements

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KPMG LLP Bay Adelaide Centre 333 Bay Street, Suite 4600 Toronto, ON M5H 2S5 Canada Tel 416-777-8500 Fax 416-777-8818

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. KPMG Canada provides services to KPMG LLP.

INDEPENDENT AUDITORS’ REPORT To the Unitholders of:

Ninepoint Gold and Precious Minerals Fund Ninepoint Energy Fund Ninepoint Gold Bullion Fund Ninepoint Diversified Bond Fund Ninepoint High Interest Savings Fund Ninepoint Silver Bullion Fund Ninepoint Enhanced Balanced Fund Ninepoint Global Infrastructure Fund Ninepoint Global Real Estate Fund Ninepoint Alternative Health Fund Ninepoint International Small Cap Fund Ninepoint Concentrated Canadian Equity Fund (Collectively, the “Funds”)

Opinion We have audited the financial statements of the Funds, which comprise:

the statements of financial position as at December 31, 2019 and December 31, 2018, as applicable

the statements of comprehensive income (loss) for the applicable periods ended December 31, 2019 and 2018

the statements of changes in net assets attributable to holders of redeemable units for the applicable periods ended December 31, 2019 and 2018

the statements of cash flows for the applicable periods ended December 31, 2019 and 2018

and notes to the financial statements, including a summary of significant accounting policies

(hereinafter referred to as the “financial statements”).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Funds as at December 31, 2019 and December 31, 2018, as applicable, and their financial performance and their cash flows for the applicable periods ended December 31, 2019 and 2018 in accordance with International Financial Reporting Standards (“IFRS”).

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Basis for Opinion We conducted our audits in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditors’ Responsibilities for the Audits of the Financial Statements” section of our auditors’ report.

We are independent of the Funds in accordance with the ethical requirements that are relevant to our audits of the financial statements in Canada and we have fulfilled our other responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information Management is responsible for the other information. Other information comprises:

the information included in the Management Report of Fund Performances filed with the relevant Canadian Securities Commissions.

Our opinion on the financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.

In connection with our audits of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audits and remain alert for indications that the other information or appears to be materially misstated.

We obtained the Management Report of Fund Performances filed with the relevant Canadian Securities Commissions as at the date of this auditors’ report. If, based on the work we have performed on this other information, we conclude that there is a material misstatement of this other information, we are required to report that fact in the auditors’ report.

We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Funds’ ability to continue as going concerns, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Funds or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Funds’ financial reporting process.

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Auditors’ Responsibilities for the Audits of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit.

We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audits in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Funds’ ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Funds to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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Communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits and significant audit findings, including any significant deficiencies in internal control that we identify during our audits.

Chartered Professional Accountants, Licensed Public Accountants Toronto, Canada March 27, 2020

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Ninepoint Gold and Precious Minerals Fund

Statements of Financial Position

(in Canadian Dollars)

As at December 31 2019 2018 $ $

Assets Current assets

Investments (note 3, 5, 10) 121,843,599 140,862,134 Cash (note 10) 199,949 4,982,102 Subscriptions receivable 78,543 103,067 Dividends receivable 24,690 11,277 Interest receivable 188,299 12,327 Total assets 122,335,080 145,970,907

Liabilities

Current liabilities

Redemptions payable 109,790 120,428 Incentive fees payable (note 11) - 21,850 Accrued expenses 103,021 63,166

Total liabilities 212,811 205,444

Net Assets attributable to holders of redeemable units 122,122,269 145,765,463

Net Assets attributable to holders of redeemable units per series

Series A 95,730,478 101,103,195 Series D 2,882,638 262,632 Series F 13,646,437 26,742,872 Series I - 1,357,755 Series QF 9,862,716 16,299,009

Net Assets attributable to holders of redeemable units per series per unit (note 8)

Series A 39.99 32.22 Series D 11.84 9.49 Series F 45.55 36.31 Series I - 5.50 Series QF 13.37 10.61

See accompanying notes which are an integral part of these financial statements

On behalf of the Manager, Ninepoint Partners LP,

by its General Partner, Ninepoint Partners GP Inc.

John Wilson Kirstin McTaggart DIRECTOR DIRECTOR

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Statements of Comprehensive Income (Loss)

(in Canadian Dollars, except unit amounts)

For the years ended December 31

2019

2018

$ $

Income

Interest income for distribution purposes (note 3) 514,358 631,703 Dividends (note 3) 906,035 851,455 Net realized gains (losses) on sale of investments 13,142,172 6,646,659 Net realized gains (losses) on forward currency contracts 210 - Net realized gains (losses) on option contracts 48,159 (7,333,891) Change in unrealized appreciation (depreciation) in the value of investments 18,614,540 (18,437,960) Change in unrealized appreciation (depreciation) on option contracts 1,841 5,666,886 Net realized gains (losses) on foreign exchange (128,518) (15,706) Securities lending income 33,924 - Other income 57,912 273,584 Total income (loss) 33,190,633 (11,717,270)

Expenses (note 11, 12)

Management fees 3,177,256 3,430,425 Transaction costs (note 3,13) 565,234 688,754 Unitholder reporting costs 246,431 338,029 Administrative fees 174,198 109,048 Interest expense and bank charges 54,226 - Filing fees 38,155 31,137 Audit fees 31,457 34,972 Custodial fees 28,283 29,768 Withholding taxes 24,597 210,743 Legal fees 18,581 26,747 Independent Review Committee fees (note 14) 5,158 4,484 Incentive fees (note 11) - 21,850 Securities borrowing fees - 769 Total expenses 4,363,576 4,926,726 Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations 28,827,057 (16,643,996)

Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations per series

Series A 20,124,959 (14,053,468) Series D 131,696 14,194 Series F 4,301,188 (3,070,087) Series I 57,154 (197,805) Series QF 4,212,060 663,170

Weighted average number of redeemable units

Series A 2,727,092 3,273,952 Series D 135,375 11,024 Series F 527,639 717,437 Series I 232,468 310,162 Series QF 1,239,801 1,426,832

Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations per series per unit (note 3)

Series A 7.38 (4.29) Series D 0.97 1.29 Series F 8.15 (4.28) Series I 0.25 (0.64) Series QF 3.40 0.46


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Statements of Changes in Net Assets Attributable to Holders of Redeemable Units


For the years ended December 31 2019 2018 $ $

Net Assets attributable to holders of redeemable units, beginning of year Series A

101,103,195

127,971,310

Series D 262,632 - Series F 26,742,872 35,067,595 Series I 1,357,755 2,384,297 Series QF 16,299,009 -

145,765,463 165,423,202

Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations Series A

20,124,959

(14,053,468) Series D 131,696 14,194 Series F 4,301,188 (3,070,087) Series I 57,154 (197,805) Series QF 4,212,060 663,170

28,827,057 (16,643,996)

Redeemable unit transactions (note 8)

Proceeds from redeemable units issued Series A

2,711,130

15,341,565

Series D 2,608,995 252,760 Series F 1,698,799 15,058,875 Series I - 22,880 Series QF 1,263,734 15,652,755 Redemption of redeemable units Series A

(28,208,806)

(28,156,212)

Series D (120,685) (4,322) Series F (19,096,422) (20,313,511) Series I (1,414,909) (851,617) Series QF (11,912,087) (16,916)

(52,470,251) (3,013,743)

Increase (Decrease) in Net Assets attributable to holders of redeemable units Series A

(5,372,717)

(26,868,115) Series D 2,620,006 262,632 Series F (13,096,435) (8,324,723) Series I (1,357,755) (1,026,542) Series QF (6,436,293) 16,299,009

(23,643,194) (19,657,739)

Net Assets attributable to holders of redeemable units, end of year Series A

95,730,478

101,103,195 Series D 2,882,638 262,632 Series F 13,646,437 26,742,872 Series I - 1,357,755 Series QF 9,862,716 16,299,009

122,122,269 145,765,463 See accompanying notes which are an integral part of these financial statements

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Statements of Changes in Net Assets Attributable to Holders of Redeemable Units continued

For the years ended December 31 2019 2018

Units, beginning of year Series A

3,137,465

3,528,759 Series D 27,662 - Series F 736,482 867,336 Series I 246,870 396,329 Series QF 1,535,899 -

5,684,378 4,792,424


Redeemable units issued Series A

75,008

466,824

Series D 225,898 28,152 Series F 42,677 408,296 Series I - 4,572 Series QF 114,620 1,537,563 Redemption of redeemable units Series A

(818,437)

(858,118)

Series D (10,134) (490) Series F (479,567) (539,150) Series I (246,870) (154,031) Series QF (912,919) (1,664)

(2,009,724) 891,954

Units, end of year Series A

2,394,036

3,137,465 Series D 243,426 27,662 Series F 299,592 736,482 Series I - 246,870 Series QF 737,600 1,535,899


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Statements of Cash Flows



Cash flows from operating activities Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations

28,827,057

(16,643,996)

Adjustments for: Foreign exchange (gains) losses on cash

95,278

4,977

Net realized (gains) losses on sale of investments (13,142,172) (6,646,659) Net realized (gains) losses on option contracts (48,159) 7,333,891 Change in unrealized (appreciation) depreciation in value of investments (18,614,540) 18,437,960

Change in unrealized (appreciation) depreciation on option contracts (1,841) (5,666,886)

Purchases of investments (89,014,325) (121,445,226) Proceeds from sales of investments 139,839,572 158,903,116 Net increase (decrease) in other assets and liabilities (171,380) 298,300 Net cash provided by (used in) operating activities 47,769,490 34,575,477

Cash flows from financing activities Proceeds from redeemable units issued

5,252,077

19,340,626 Redemption of redeemable units (57,708,442) (47,855,565) Net cash provided by (used in) financing activities (52,456,365) (28,514,939)

Foreign exchange gains (losses) on cash

(95,278)

(4,977)

Net increase (decrease) in cash (4,686,875) 6,060,538 Cash (Bank indebtedness) at beginning of year 4,982,102 (1,073,459) Cash (Bank indebtedness) at end of year 199,949 4,982,102 Supplemental Information Interest received

338,386

807,005 Interest paid 54,226 - Dividends received, net of withholding taxes 868,714 754,079


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Schedule of Investment Portfolio As at December 31, 2019 Maturity Date Average Cost Fair Value

PAR VALUE LOANS [3.76%]

$ $

125,000 Energold Drilling Corp., 14.000% ** Jan 16, 2020 125,000 35,125 2,303,000 Energold Drilling Corp., 9.500% ** Jun 14, 2022 2,303,000 603,386 3,034,687 TMAC Resources Inc., 6.500% (plus LIBOR) ** Jul 31, 2022 3,802,628 3,948,575

Total Loans 6,230,628 4,587,086

SHARES EQUITIES [95.53%]

PRECIOUS METALS [94.14%]

196,900 Alacer Gold Corp. 748,570 1,358,609 300,700 Alamos Gold Inc. 2,227,578 2,354,481 85,800 AngloGold Ashanti Ltd. 2,323,748 2,489,024 535,100 Argonaut Gold Inc. 1,219,967 1,043,445 1,147,067 B2Gold Corp. 3,906,927 5,976,219 4,561,032 Bellevue Gold Ltd. 1,413,144 2,223,605 270,900 Bonterra Resources Inc. 1,333,401 609,525 3,344,200 Caldera Resources Inc.** 1 - 3,489,434 Calidus Resources Ltd. 1,342,466 779,044 448,475 Castile Resources Ltd.** 4 81,735 635,400 Centamin PLC 1,218,304 1,388,025 168,900 Centerra Gold Inc. 1,783,658 1,744,737 708,400 CIC Capital Ltd.** - - 1,799,400 CIC Capital Ltd.** 2 - 2,507,800 CIC Capital Ltd.** - - 365,256 CIC Gold Group Ltd. - - 1,713,881 Contact Gold Corp. 1,678,256 265,652 494,900 Dundee Precious Metals Inc. 1,577,820 2,761,542 219,762 Endeavour Mining Corp. 4,605,848 5,390,762 100,500 Evolution Mining Ltd. 321,272 348,009 281,991 Fire River Gold Corp.** 3,904,077 - 902,400 Fortuna Silver Mines Inc. 4,179,182 4,773,696 660,000 Fosterville South Exploration Ltd.** 264,000 264,000 162,000 Gold Fields Ltd. 1,268,624 1,388,410 6,119,000 Goldsource Mines Inc. 734,280 520,115 388,300 Hochschild Mining PLC 1,397,025 1,222,263 5,397,210 Intelicrypt Tactical Solutions Ltd.** 1,483,609 - 261,200 IAMGOLD Corp. 1,283,377 1,266,820 918,600 Kinross Gold Corp. 5,138,538 5,658,576 51,536 Kirkland Lake Gold Ltd. 1,037,968 2,949,921 4,209 Luiri Gold Ltd.** - - 186,500 MAG Silver Corp. 1,939,937 2,860,910 2,585,698 New Guinea Gold Corp.** - - 847,489 Northern Star Resources Ltd. 6,837,143 8,734,488 271,900 Pan American Silver Corp.** - - 180,555 Pan American Silver Corp. 3,148,515 5,553,872 2,000,000 Pembrook Copper Corp.** 2,000,000 - 713,900 Premier Gold Mines Ltd. 1,497,522 1,406,383 132,319 Pretium Resources Inc. 1,351,635 1,912,010 3,620,000 Pure Gold Mining Inc. 1,991,000 2,932,200 3,442,200 Ramelius Resources Ltd. 2,255,784 3,873,859 1,723,286 Roxgold Inc. 1,577,957 1,792,217 1,217,900 Sabina Gold & Silver Corp. 2,552,252 2,338,368 35,345,300 San Gold Corp.** 8,142,468 - 1,302,079 Saracen Mineral Holdings Ltd. 2,881,189 3,927,409 107,600 Seabridge Gold Inc. 1,856,403 1,930,985 2,000,000 Seafield Resources Ltd.** 482,260 - 711,373 SEMAFO Inc. 2,545,654 1,920,707 5,303,290 Shear Diamonds Ltd.** 2,159,518 - 2,671,600 Silver Lake Resources Ltd. 2,433,010 3,262,248 531,120 Silvercrest Metals Inc. 1,672,068 4,657,922 132,100 SSR Mining Inc. 1,968,983 3,301,179 1,274,000 Tectonic Metals Inc. 445,900 334,425 613,000 Teranga Gold Corp. 3,206,659 4,052,281 1,121,874 Tietto Minerals Ltd. 262,980 265,802 152,619 TMAC Resources Inc. 918,664 576,900 169,956 Torex Gold Resources Inc. 2,320,839 3,487,497 1,943,800 Westgold Resources Ltd. 3,416,019 4,056,279 95,400 Wheaton Precious Metals Corp. 2,488,231 3,686,256 1,087,100 White Gold Corp. 1,363,042 1,239,294 110,107,278 114,961,706

BASE METALS [1.39%]

1,183,500 Adriatic Metals PLC 1,086,159 1,698,594 769,897 Minco Base Metals Corp.** 866,500 - 1,952,659 1,698,594

OIL & GAS [0.00%]

642,060 Gastem Inc.** - - 3,582,000 Oilsands Quest Inc.** - - 512,500 Rodinia Oil Corp.** - - - - Total Equities 112,059,937 116,660,300

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Schedule of Investment Portfolio continued

As at December 31, 2019 Expiry Date Average Cost Fair Value $ $

SHARES

448,475

WARRANTS & RIGHTS [0.48%] PRECIOUS METALS [0.48%] Castile Resources Ltd., Rights

Jan 10, 2020

-

- 3,312,000 Goldsource Mines Inc. Apr 11, 2021 - 97,469 1,810,000 Pure Gold Mining Inc. Jul 18, 2022 - 407,819 727,500 Skeena Resources Ltd. Mar 29, 2020 1,180 15,326 1,274,000 Tectonic Metals Inc. Jul 12, 2021 - 69,136 49,281 TMAC Resources Inc. Jul 26, 2022 - 6,445 1,180 596,195

460,600

OIL & GAS [0.00%] Energold Drilling Corp.

Jun 14, 2022

1,034

18 1,034 18 Total Warrants 2,214 596,213 Transaction Costs (note 3) (290,931) - Total Investments [99.77%] 118,001,848 121,843,599 Cash and Other Assets Less Liabilities [0.23%] 278,670 Total Net Assets attributable to holders of redeemable units [100.00%] 122,122,269 ** Private Company or private loans.


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Ninepoint Gold and Precious Minerals Fund Notes to financial statements – Fund specific information December 31, 2019

Financial Risk Management (note 6)

Investment Objective The objective of the Fund is to provide long-term capital growth. In order to achieve its investment objective, the Fund invests primarily in gold, gold certificates, precious metals and minerals, certificates relating to such metals and minerals and/or in equity securities of companies that are directly or indirectly involved in the exploration, mining, production or distribution of gold and precious metals and minerals.

The Schedule of Investment Portfolio presents the securities held by the Fund as at December 31, 2019. Significant risks that are relevant to the Fund are discussed here. General information on risks and risk management is described in Note 6 of the Generic Notes.

Market Risk a) Other Price Risk As at December 31, 2019 and 2018, if the S&P/TSX Global Gold Total Return Index were to fluctuate by 10%, with all other variables held constant, Net Assets attributable to holders of redeemable units would increase or decrease by the amounts shown in the table below. This is a measure based on the historical relationship of the Fund’s performance against the index noted above. The composition of this calculation contains several subjective components that, although reasonably estimated, could alter the resulting estimate should these components be modified based on revised assumptions.

December 31, 2019 December 31, 2018 As a % of Net Assets

attributable to holders

As a % of Net Assets attributable to holders

Impact of redeemable units Impact of redeemable units

$ % $ % 10,746,760 8.80 13,410,423 9.20

b) Currency Risk The tables below summarize the Fund’s exposure to currency risk as at December 31, 2019 and 2018. The tables also illustrate the potential impact to the Fund’s Net Assets attributable to holders of redeemable units as a result of 1% changes in these currencies relative to the Canadian dollar, with all other variables held constant.

December 31, 2019 % of Net Assets Impact on Net Assets attributable to holders attributable to holders Currency Fair Value of redeemable units of redeemable units

$ % $

Australian Dollar 29,269,952 23.97 292,700 U.S. Dollar 9,947,044 8.14 99,470 Pound Sterling 2,610,282 2.14 26,103 41,827,278 34.25 418,273

December 31, 2018

% of Net Assets Impact on Net Assets attributable to holders attributable to holders Currency Fair Value of redeemable units of redeemable units

$ % $ Australian Dollar 27,109,913 18.60 271,099 U.S. Dollar 20,111,592 13.80 201,116 Pound Sterling 11,086,763 7.60 110,868 58,308,268 40.00 583,083

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c) Interest Rate Risk As of December 31, 2019, 3.76% (December 31, 2018 – 4.73%) of the Fund's Net Assets attributable to holders of redeemable units were invested in fixed income securities, 100.00% of which were private loans (December 31, 2018 – 100.00%). As a result, a 1% change in interest rates would not have a significant impact on the Fund.

Credit Risk As of December 31, 2019, 3.76% (December 31, 2018 – 4.73%) of the Fund's Net Assets attributable to holders of redeemable units were invested in fixed income securities, 100.00% of which were private loans (December 31, 2018 – 100.00%). As a result, the credit risk is considered minimal.

Concentration Risk The table below summarizes the Fund’s concentration risk as a percentage of Net Assets attributable to holders of redeemable units as at December 31, 2019 and 2018.

December 31, 2019 December 31, 2018 % %

Equities:

Precious Metals 94.14 89.01 Base Metals 1.39 0.92 Oil & Gas – 0.77

Warrants 0.48 0.05 Loans 3.76 4.73 Silver Bullion – 1.16 Cash and Other Assets Less Liabilities 0.23 3.36 Total Net Assets attributable to holders of redeemable units 100.00 100.00

Fair Value Measurements (note 5) The Fund’s assets and liabilities measured at fair value have been categorized based upon the fair value hierarchy in the tables below as at December 31, 2019 and 2018.

December 31, 2019 Level 1 Level 2 Level 3 Total $ $ $ $

Equities 113,437,159 2,877,406 345,735 116,660,300 Warrants and Rights – 596,213 – 596,213 Loans – – 4,587,086 4,587,086 113,437,159 3,473,619 4,932,821 121,843,599


Equities 129,678,787 1,135,834 1,386,000 132,200,621 Warrants and Rights 5,170 73,900 – 79,070 Silver Bullion 1,690,967 – – 1,690,967 Loans – – 6,891,476 6,891,476 131,374,924 1,209,734 8,277,476 140,862,134

During the years ended December 31, 2019 and 2018, there were no significant transfers between levels other than the transfers indicated below, which resulted from the public offering of the security.

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The reconciliation of investments measured at fair value using unobservable inputs (Level 3) for the years ended December 31, 2019 and 2018 are presented as follows:

December 31, 2019 December 31, 2018

Equities Loans Equities Loans $ $ $ $

Balance, beginning of year 1,386,000 6,891,476 1,898,750 6,676,337 Net transfers in (out) – – (1,474,054) – Purchases 264,004 – 961,304 976,866 Sales – (312,866) – (1,173,410) Realized gains (losses) – 16,990 – 61,872 Change in unrealized appreciation (depreciation) in the value of

investments

(1,304,269)

(2,008,514)

–

349,811 Balance, end of year 345,735 4,587,086 1,386,000 6,891,476 Change in unrealized appreciation (depreciation) during the year for

investments held at end of year

(1,304,269)

(1,982,984)

–

353,051

The Fund’s Level 3 securities consist of private equity and private loan positions. The Manager determines their fair value by utilizing a variety of valuation techniques such as the use of comparable recent transactions, discounted cash flows and other techniques used by market participants. As at December 31, 2019, these positions were not significant to the Fund and any changes in reasonable possible assumptions used in their valuation would not have a significant impact to the Net Assets attributable to holders of redeemable units of the Fund. As at December 31, 2018, these positions were significant to the Fund and the significant unobservable inputs used in these valuation techniques could have varied considerably over time depending on company specific factors and economic or market conditions. The potential impact of applying reasonable possible alternative assumptions for valuing material Level 3 financial assets or liabilities was as follows:

December 31, 2018 Increase Decrease Impact on Net assets attributable to holders of redeemable units 0.10% (0.12%)

Management Fees (note 11) This fee differs among the series of units of the Fund as set out in the chart below:

Series A Series D Series F Series I* Series QF Up to 2.50% Up to 2.00% Up to 1.50% Negotiated by the

Unitholder Up to 1.15%

* The management fee for Series I units of the Fund is negotiated by the unitholder and may be paid directly by the Fund or by the unitholder.

Related Party Holdings Ninepoint Financial Group, the parent company of the Fund manager, and its respective subsidiaries, held the following investments in the Fund as at December 31, 2019 and 2018.

December 31, 2019 December 31, 2018 Units held Class F

25

25

Value of units held ($) 1,132 888

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Tax Loss Carryforwards (note 3) As of the taxation year ended December 31, 2019, the Fund had capital and non-capital losses available for tax purposes as follows:

Capital losses Non-capital losses

Non-capital losses year of expiry

$ 187,535,539

$ 167,088

2034

2,887,641 2035 2,209,077 2037 6,342,827 2038 2,199,308 2039

Securities Lending (note 3) As at December 31, 2019 and 2018, the market values of securities loaned and related collateral amounts were as follows:

December 31, 2019 December 31, 2018 $ $

Securities loaned 11,504,664 – Collateral 12,119,543 – Collateral as a percentage of securities loaned (%) 105 –

During the years ended December 31, 2019 and 2018, securities lending income and charges were as follows: December 31, 2019 December 31, 2018

Custodian

The Bank of New York

Mellon Corp.

RBC Investor Services

Trust Trust $ $ $

Gross securities lending income 67,157 – – Securities lending charges (33,233) – – Net securities lending income 33,924 – – Withholding taxes on securities lending income (689) – – Net securities lending income received by the Fund 33,235 – – Securities lending charges as a percentage of gross securities lending income (%) 50 – –

Sharing Arrangements (note 13) During the year ended December 31, 2019, the Fund paid $21,471 out of the total transaction costs incurred to certain brokers for research provided to the portfolio manager (December 31, 2018 - $32,985).

17


Fund Merger During the year ended December 31, 2018, the Fund acquired all the assets of the funds listed below (the “Acquired Funds”), and in exchange, it issued shares to the Acquired Funds which in turn were distributed to the shareholders of the Acquired Funds. The Manager was the investment advisor to the Acquired Funds.

Transfer Date

Acquired Fund Fair Value of Assets

Acquired by the Fund Number of shares issued by the

Fund to the Acquired Fund July 31, 2018 Ninepoint Bull/Bear RSP Fund $3,243,251 98,023 July 31, 2018 Ninepoint Hedge Fund L.P. $16,047,520 450,642 July 31, 2018 Ninepoint Hedge Fund L.P. II $6,107,118 183,999

See accompanying generic notes which are an integral part of these financial statements

18

Ninepoint Energy Fund



As at December 31 2019 2018 $ $

Assets

Current assets

Investments (note 3, 5) 77,164,500 106,609,822 Cash 35,668,583 2,548,736 Due from broker 5,173,520 - Subscriptions receivable 267,211 975,134 Dividends receivable 107,750 - Total assets 118,381,564 110,133,692

Liabilities

Current liabilities

Unrealized depreciation on forward currency contracts (note 3, 5) - 983,664 Due to broker 3,413,440 - Redemptions payable 75,831 587,856 Accrued expenses 117,350 102,288

Total liabilities 3,606,621 1,673,808



Series A 49,624,790 44,898,238 Series D 2,112,251 649,633 Series F 63,037,892 61,848,115 Series I - 1,063,888 Series PTF 10 10


Series A 9.08 7.72 Series D 6.56 5.54 Series F 10.30 8.65 Series I - 4.07 Series PTF 10.00 10.00





19





2019

2018

$ $

Income

Interest income for distribution purposes (note 3) - 223 Dividends (note 3) 1,489,633 691,198 Net realized gains (losses) on sale of investments (18,072,125) (5,556,428) Net realized gains (losses) on forward currency contracts (160,418) (4,060,541) Change in unrealized appreciation (depreciation) in the value of investments 38,652,010 (48,895,250) Change in unrealized appreciation (depreciation) on forward currency contracts 983,664 (1,066,502) Net realized gains (losses) on foreign exchange 42,178 (735,935) Securities lending income 5,789 - Other income 91,979 140,719 Total income (loss) 23,032,710 (59,482,516)


Transaction costs (note 3, 13) 3,242,721 5,258,713 Management fees 2,244,493 3,239,694 Unitholder reporting costs 233,711 357,129 Administrative fees 164,984 138,747 Interest expense and bank charges 44,999 15,325 Audit fees 22,873 24,766 Withholding taxes 22,675 6,737 Filing fees 20,658 25,671 Legal fees 18,701 47,334 Custodial fees 15,015 20,046 Independent Review Committee fees (note 14) 5,191 4,395 Total expenses 6,036,021 9,138,557 Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations 16,996,689 (68,621,073)


Series A 6,944,268 (32,027,381) Series D 253,332 (393,920) Series F 9,698,876 (35,395,308) Series I 100,213 (804,464) Series PTF - -


Series A 5,712,236 5,972,223 Series D 200,544 77,363 Series F 6,677,219 5,649,528 Series I 246,525 326,670 Series PTF 1 1


Series A 1.22 (5.36) Series D 1.26 (5.09) Series F 1.45 (6.27) Series I 0.41 (2.46) Series PTF - (0.00)


20






44,898,238

79,796,392

Series D 649,633 - Series F 61,848,115 76,170,371 Series I 1,063,888 2,735,919 Series PTF 10 -

108,459,884 158,702,682


6,944,268

(32,027,381) Series D 253,332 (393,920) Series F 9,698,876 (35,395,308) Series I 100,213 (804,464) Series PTF - -

16,996,689 (68,621,073)



8,796,412

23,537,571

Series D 2,073,909 1,369,824 Series F 18,517,029 48,436,187 Series I 4 105,630 Series PTF - 10 Redemption of redeemable units Series A

(11,014,128)

(26,408,344)

Series D (864,623) (326,271) Series F (27,026,128) (27,363,135) Series I (1,164,105) (973,197) Series PTF - -

(10,681,630) 18,378,275

Net increase (decrease) in Net Assets attributable to holders of redeemable units Series A

4,726,552

(34,898,154) Series D 1,462,618 649,633 Series F 1,189,777 (14,322,256) Series I (1,063,888) (1,672,031) Series PTF - 10

6,315,059 (50,242,798)


49,624,790

44,898,238 Series D 2,112,251 649,633 Series F 63,037,892 61,848,115 Series I - 1,063,888 Series PTF 10 10


21


Statements of Changes in Net Assets Attributable to Holders of Redeemable Units Continued

For the years ended December 31 2019 2018 Units, beginning of year Series A

5,817,238

6,170,667 Series D 117,257 - Series F 7,146,324 5,312,933 Series I 261,543 412,902 Series PTF 1 - 13,342,363 11,896,502 Redeemable unit transactions (note 8)


1,061,122

1,887,399

Series D 355,212 159,691 Series F 2,063,359 4,217,265 Series I - 4,834 Series PTF - 1 Redemption of redeemable units Series A

(1,415,220)

(2,240,828)

Series D (150,656) (42,434) Series F (3,089,149) (2,383,874) Series I (261,543) (156,193) Series PTF - - (1,436,875) 1,445,861 Units, end of year Series A

5,463,140

5,817,238 Series D 321,813 117,257 Series F 6,120,534 7,146,324 Series I - 261,543 Series PTF 1 1 11,905,488 13,342,363 See accompanying notes which are an integral part of these financial statements

22






16,996,689

(68,621,073) Adjustments for:

Foreign exchange (gains) losses on cash

52,201

746,296 Net realized (gains) losses on sale of investments 18,072,125 5,556,428 Change in unrealized (appreciation) depreciation in value of investments (38,652,010) 48,895,250 Change in unrealized (appreciation) depreciation on forward currency contracts (983,664) 1,066,502

Purchases of investments (416,063,949) (914,141,135) Proceeds from sales of investments 464,329,076 924,291,442 Net increase (decrease) in other assets and liabilities (92,688) 95,403 Net cash provided by (used in) operating activities 43,657,780 (2,110,887)


28,695,339

53,886,719 Redemption of redeemable units (39,181,071) (50,954,058) Net cash provided by (used in) financing activities (10,485,732) 2,932,661


(52,201)

(746,296) Net increase in cash 33,172,048 821,774 Cash (Bank indebtedness) at beginning of year 2,548,736 2,473,258 Cash (Bank indebtedness) at end of year 35,668,583 2,548,736

Supplemental Information Interest received

-

223 Interest paid 44,999 15,325 Dividends received, net of withholding taxes 1,359,208 743,736


23


Schedule of Investment Portfolio As at December 31, 2019 Average Cost Fair Value

SHARES

EQUITIES [67.23%] OIL AND GAS EXPLORATION AND PRODUCTION [58.03%]

$ $

6,000,000 Baytex Energy Corp. 18,113,467 11,220,000 100,000 Canadian Natural Resources Ltd., NPV 3,897,964 4,200,000

2,000,000 Crescent Point Energy Corp. 9,374,000 11,580,000 1,100,000 Enerplus Corp. 12,094,244 10,175,000

750,000 Kelt Exploration Ltd. 2,925,649 3,652,500 300,000 Parex Resources Inc. 6,756,589 7,245,000 400,000 Seven Generations Energy Ltd. 3,413,440 3,388,000

1,000,000 Torc Oil & Gas Ltd. 3,427,267 4,490,000 700,000 Tourmaline Oil Corp. 8,701,890 10,654,000

68,704,510 66,604,500

INTEGRATED OIL AND GAS [9.20%]

800,000 Cenovus Energy Inc. 10,389,235 10,560,000 10,389,235 10,560,000 Total Equities 79,093,745 77,164,500 Transaction Costs (note 3) (287,014) - Total Investments [67.23%] 78,806,731 77,164,500 Cash and Other Assets Less Liabilities [32.77%] 37,610,443 Total Net Assets attributable to holders of redeemable units [100.00%] 114,774,943


24

Ninepoint Energy Fund Notes to financial statements – Fund specific information December 31, 2019


Investment Objective The Fund seeks to achieve long-term capital growth. The Fund invests primarily in equity and equity-related securities of companies that are involved directly or indirectly in the exploration, development, production and distribution of oil, gas, coal, or uranium and other related activities in the energy and resource sector.

The Schedule of Investment Portfolio presents the securities held by the Fund as at December 31, 2019. Significant risks that are relevant to the Fund are discussed here. General information on risks and risk management is described in Note 6.

Market Risk a) Other Price Risk As at December 31, 2019 and 2018, if the S&P/TSX Capped Energy Total Return Index were to fluctuate by 10%, with all other variables held constant, Net Assets attributable to holders of redeemable units would increase or decrease by the amounts shown in the table below. This is a measure based on the historical relationship of the Fund’s performance against the noted index. The composition of this calculation contains several subjective components that, although reasonably estimated, could alter the resulting estimate should these components be modified based on revised assumptions.

December 31, 2019 December 31, 2018 As a % of Net Assets

attributable to holders


Impact of redeemable units Impact of redeemable units

$ % $ % 14,346,868 12.50 13,340,566 12.30

b) Currency Risk As at December 31, 2019, the Fund did not have a significant exposure to currency risk. As at December 31, 2018, the Fund was exposed to currency risk. The table below illustrates the potential impact to the Fund’s Net Assets attributable to holders of redeemable units as a result of 1% changes in these currencies relative to the Canadian dollar, with all other variables held constant.

December 31, 2018

Forward Currency

% of Net Assets attributable to holders

Impact on Net Assets attributable to holders

Currency Fair Value Contracts Net Exposure of redeemable units of redeemable units $ $ $ % $

U.S. Dollar 57,168,073 (45,387,760) 11,780,313 10.86 117,803

c) Interest Rate Risk As at December 31, 2019 and 2018, the Fund did not have a significant exposure to interest rate risk.

Credit Risk As at December 31, 2019, the Fund did not have a significant exposure to credit risk. As at December 31, 2018, the Fund was exposed to credit risk from over-the-counter derivative contracts with counterparties. The credit risk was considered minimal as these counterparties have a minimal credit rating of AA- by Standard & Poor’s or equivalent.

25




Equities: Oil and Gas Exploration and Production 58.03 88.59 Integrated Oil and Gas 9.20 – Oil and Gas Equipment and Services – 9.71

Unrealized depreciation on forward currency contracts – (0.91) Cash and Other Assets Less Liabilities 32.77 2.61 Total Net Assets attributable to holders of redeemable units 100.00 100.00


December 31, 2019 Level 1 Level 2 Level 3 Total Equities

$ 77,164,500

$ –

$ –

$ 77,164,500

77,164,500 – – 77,164,500

December 31, 2018 Level 1 Level 2 Level 3 Total $ $ $ $ Equities 106,609,822 – – 106,609,822 Forward Currency Contracts – (983,664) – (983,664) 106,609,822 (983,664) – 105,626,158

During the years ended December 31, 2019 and 2018, there were no significant transfers between levels.


Series A Series D Series F Series I* Series PTF Up to 2.50% Up to 2.00% Up to 1.50% Negotiated by the



26


Related Party Broker Commissions Brokerage commissions paid by the Fund to Sightline Wealth Management (formerly, SP Wealth), a related party of Ninepoint Financial Group Inc., for brokerage services provided to the Fund for the year ended December 31, 2019 were $221,566 (December 31, 2018 - $185,871).




$ $

140,519,317 3,002,680 2028 – 2,083,078 2029 – 2,820,390 2030 – 1,986,159 2032 – 323,020 2033 – 3,631,410 2037 – 2,441,670 2038 – 878,793 2039




During the years ended December 31, 2019 and 2018, securities lending income and charges were as follows:


Custodian

The Bank of New York Mellon

Corp.

RBC Investor Services Trust


$ $ $

Gross securities lending income 11,576 – – Securities lending charges (5,787) – – Net securities lending income 5,789 – – Withholding taxes on securities lending income – – – Net securities lending income received by the Fund 5,789 – – Securities lending charges as a percentage of gross securities lending income (%) 50 – –

Sharing Arrangements (note 13) During the year ended December 31, 2019, the Fund paid $17,250 out of the total transaction costs incurred to certain brokers for research provided to the portfolio manager (December 31, 2018 - $50,178).

27


Fund Merger During the year ended December 31, 2018, the Fund acquired all the assets of the fund listed below (the “Acquired Fund”), and in exchange, it issued units to the Acquired Fund, which, in turn were distributed to the unitholders of the Acquired Fund. The Manager was the investment advisor to the Acquired Fund.

Transfer Date Acquired Fund

Fair Value of Assets Acquired by the Fund

Number of units issued by the Fund to the Acquired Fund

November 29, 2018 Ninepoint Energy Opportunities Trust (formerly, $15,542,462 1,581,302 Sprott Energy Opportunities Trust)


28

Ninepoint Gold Bullion Fund



As at December 31 2019 2018 $ $


Investments (note 3, 5) 157,548,346 122,007,405 Cash 1,167,098 - Subscriptions receivable 187,917 120,794 Total assets 158,903,361 122,128,199

Liabilities

Current liabilities

Bank indebtedness - 64,518 Redemptions payable 319,347 28,877 Accrued expenses 99,312 60,128




Series A 74,074,548 64,092,220 Series F 84,410,154 57,882,456


Series A 15.10 13.60 Series F 15.64 14.04 Series A $US 11.63 9.97 Series F $US 12.04 10.29





29





2019

2018

$ $

Income

Interest income for distribution purposes (note 3) - 84 Net realized gains (losses) on sale of investments 1,244,189 2,544,533 Net realized gains (losses) on foreign exchange (64,018) (7,578) Change in unrealized appreciation (depreciation) in the value of investments 15,790,542 4,913,263 Other income 42 16,086 Total income (loss) 16,970,755 7,466,388


Management fees 1,015,021 928,053 Unitholder reporting costs 180,815 223,019 Administrative fees 129,269 77,686 Custodial fees 57,925 45,456 Legal fees 39,831 36,594 Filing fees 25,729 28,830 Audit fees 14,229 15,701 Independent Review Committee fees (note 14) 5,164 4,455 Interest expense and bank charges 3,248 - Total expenses 1,471,231 1,359,794 Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations 15,499,524 6,106,594


Series A 6,949,111 3,337,055 Series F 8,550,413 2,769,539


Series A 4,717,962 5,058,792 Series F 5,163,845 4,674,860


Series A 1.47 0.66 Series F 1.66 0.59


30





64,092,220

70,699,303

Series F 57,882,456 60,702,509 121,974,676 131,401,812


6,949,111

3,337,055 Series F 8,550,413 2,769,539

15,499,524 6,106,594



14,388,527

6,340,925

Series F 38,540,142 13,607,817 Redemption of redeemable units Series A

(11,355,310)

(16,285,063)

Series F (20,562,857) (19,197,409) 21,010,502 (15,533,730)


9,982,328

(6,607,083) Series F 26,527,698 (2,820,053)

36,510,026 (9,427,136)


74,074,548

64,092,220 Series F 84,410,154 57,882,456


31





4,711,243

5,481,741 Series F 4,122,474 4,575,841

8,833,717 10,057,582



991,560

488,914


(798,205)

(1,259,412)

Series F (1,392,696) (1,470,077) 1,467,777 (1,223,865)


4,904,598

4,711,243 Series F 5,396,896 4,122,474


32






15,499,524

6,106,594


29,638

(1,511)

Net realized (gains) losses on sale of investments (1,244,189) (2,544,533) Change in unrealized (appreciation) depreciation in value of investments (15,790,542) (4,913,263)

Purchases of investments (24,336,089) (2,699,457) Proceeds from sales of investments 5,829,879 19,341,839 Net increase (decrease) in other assets and liabilities 39,184 (14,430) Net cash provided by (used in) operating activities (19,972,595) 15,275,239


51,488,365

18,055,173 Redemption of redeemable units (30,254,516) (33,676,298) Net cash provided by (used in) financing activities 21,233,849 (15,621,125)


(29,638)

1,511

Net increase (decrease) in cash 1,261,254 (345,886) Cash (Bank indebtedness) at beginning of year (64,518) 279,857 Cash (Bank indebtedness) at end of year 1,167,098 (64,518)


-

84 Interest paid 3,248 -


33



$ $

OUNCES 79,964

BULLION [99.41%] Gold Bullion

117,323,996

157,548,346

Total Investments [99.41%] 117,323,996 157,548,346 Cash and Other Assets Less Liabilities [0.59%] 936,356 Total Net Assets attributable to holders of redeemable units [100.00%] 158,484,702


34

Ninepoint Gold Bullion Fund Notes to financial statements – Fund specific information December 31, 2019


Investment Objective The investment objective of the Fund is to seek to provide a secure, convenient alternative for investors seeking to hold gold. The Fund will invest primarily in unencumbered, fully allocated gold bullion and permitted gold certificates, the underlying interest of which is gold. The Fund may also invest a portion of its assets in cash, money market instruments and/or treasury bills. The Fund will only purchase and expects to only own “Good Delivery Bars” as defined by the London Bullion Market Association (“LBMA”), with each bar purchased being verified against the LBMA source.

The Schedule of Investment Portfolio presents the investments held by the Fund as at December 31, 2019. Significant risks that are relevant to the Fund are discussed here. General information on risks and risk management is described in Note 6 of the Generic Notes.

Market Risk a) Other Price Risk If the price of gold bullion were to fluctuate by 10%, with all other variables held constant, the Fund’s Net Assets attributable to holders of redeemable units would increase or decrease by the amounts shown in the table below.


Impact


of redeemable units Impact


of redeemable units

$ % $ % 15,754,835 9.94 12,200,741 10.01


December 31, 2019 % of Net Assets Impact on Net Assets attributable to holders attributable to holders Currency Fair Value of redeemable units of redeemable units U.S. Dollar

$ 158,267,848

% 99.86

$ 1,582,678

December 31, 2018

% of Net Assets Impact on Net Assets attributable to holders attributable to holders Currency Fair Value of redeemable units of redeemable units U.S. Dollar

$ 122,079,097

% 100.09

$ 1,220,791


Credit Risk As at December 31, 2019 and 2018, the Fund did not have a significant exposure to credit risk.

35

Ninepoint Gold Bullion Fund Notes to financial statements – Fund specific information December 31, 2019


December 31, 2019 December 31, 2018 % % Gold Bullion 99.41 100.03 Cash and Other Assets Less Liabilities 0.59 (0.03) Total Net Assets attributable to holders of redeemable units 100.00 100.00


December 31, 2019 Level 1 Level 2 Level 3 Total Gold Bullion

$ 157,548,346

$ –

$ –

$ 157,548,346

December 31, 2018 Level 1 Level 2 Level 3 Total Gold Bullion

$ 122,007,405

$ –

$ –

$ 122,007,405



Series A Series D Series F Series I* Up to 0.80% Up to 0.65% Up to 0.50% Negotiated by the

Unitholder * The management fee for Series I units of the Fund is negotiated by the unitholder and may be paid directly by the Fund or by the unitholder.

Tax Loss Carryforwards (note 3) As of the taxation year ended December 31, 2019, the Fund had no capital and non-capital losses available for tax purposes.


36

Ninepoint Diversified Bond Fund



As at December 31 2019 2018 $ $


Investments (note 3, 5, 10) 390,725,599 359,423,819 Cash (note 10) 45,771,191 30,908,058 Options purchased (note 3, 5) 1,198,886 162,422 Unrealized appreciation on forward currency contracts (note 3, 5) 779,575 - Broker margin (note 10) 32,408 - Due from broker 42,459 - Subscriptions receivable 1,095,186 920,080 Dividends receivable - 19,751 Interest receivable 2,584,392 3,034,955 Total assets 442,229,696 394,469,085

Liabilities

Current liabilities

Investments sold short (note 3, 5) 5,612,659 - Options written (note 3, 5) 661,416 152,869 Unrealized depreciation on forward currency contracts (note 3, 5) - 1,026,054 Distribution payable to unitholders 185,108 - Redemptions payable 1,051,640 1,555 Accrued expenses 112,365 107,131

Total liabilities 7,623,188 1,287,609



Series A 29,978,191 24,743,895 Series D 68,997 - Series F 71,725,210 36,365,497 Series I 262,562,290 318,260,869 Series P 4,228,666 994,270 Series PF 18,524,508 7,175,291 Series T 1,705,111 2,041,026 Series FT 6,610,810 1,288,043 Series QF 39,202,725 703,668 Series QFT - 1,608,917


Series A 10.53 10.37 Series D 9.78 - Series F 10.74 10.56 Series I 10.83 10.66 Series P 9.98 9.95 Series PF 10.33 10.15 Series T 7.88 7.95 Series FT 8.83 8.82 Series QF 10.04 9.85 Series QFT - 9.81





37





2019

2018 $ $

Income Interest income for distribution purposes (note 3) 14,091,054 11,099,126 Dividends (note 3) 266,600 686,836 Net realized gains (losses) on sale of investments (75,967) (900,579) Change in unrealized appreciation (depreciation) on option contracts 171,128 100,922 Net realized gains (losses) on forward currency contracts 1,558,568 (1,615,097) Net realized gains (losses) on option contracts (141,846) 1,561,444 Change in unrealized appreciation (depreciation) in the value of investments 3,710,040 (5,819,322) Change in unrealized appreciation (depreciation) on forward currency contracts 1,805,629 (2,053,558) Net realized gains (losses) on foreign exchange (847,703) 140,333 Securities lending income 20,243 - Other income - 15,479 Total income (loss) 20,557,746 3,215,584


Management fees 1,237,209 790,394 Administrative fees 397,113 204,346 Unitholder reporting costs 118,016 101,685 Dividends paid on investments sold short 112,944 - Transaction costs (note 3, 13) 94,335 6,926 Interest on short positions 42,886 71,088 Custodial fees 37,839 26,826 Filing fees 23,382 39,093 Audit fees 22,063 25,245 Legal fees 18,039 17,506 Withholding taxes 16,672 8,142 Securities borrowing fees 7,120 11,511 Independent Review Committee fees (note 14) 5,008 4,480 Total expenses 2,132,626 1,307,242 Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations 18,425,120 1,908,342

Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations per series Series A

776,092

(177,189) Series D (66) - Series F 1,936,583 19,970 Series I 15,273,139 2,063,572 Series P 1,748 (2,158) Series PF 392,738 29,480 Series T 66,930 (15,135) Series FT 87,748 40 Series QF (172,322) (3,309) Series QFT 62,530 (6,929)


Series A 2,630,521 2,363,271 Series D 2,995 - Series F 5,237,764 2,464,882 Series I 27,070,797 20,594,097 Series P 130,027 99,709 Series PF 1,357,772 707,280 Series T 255,571 278,961 Series FT 428,987 96,494 Series QF 1,069,013 69,170 Series QFT 161,291 151,903

38


Statements of Comprehensive Income (Loss) Continued



2019

2018 $ $


Series A 0.30 (0.07) Series D (0.02) - Series F 0.37 0.01 Series I 0.56 0.10 Series P 0.01 (0.02) Series PF 0.29 0.04 Series T 0.26 (0.05) Series FT 0.20 (0.00) Series QF (0.16) (0.05) Series QFT 0.39 (0.05)


39






24,743,895

25,087,250

Series D - - Series F 36,365,497 17,556,971 Series I 318,260,869 134,993,568 Series P 994,270 - Series PF 7,175,291 7,484,553 Series T 2,041,026 2,642,001 Series FT 1,288,043 594,668 Series QF 703,668 - Series QFT 1,608,917 -

393,181,476 188,359,011


776,092

(177,189) Series D (66) - Series F 1,936,583 19,970 Series I 15,273,139 2,063,572 Series P 1,748 (2,158) Series PF 392,738 29,480 Series T 66,930 (15,135) Series FT 87,748 40 Series QF (172,322) (3,309) Series QFT 62,530 (6,929)

18,425,120 1,908,342

Distributions to holders of redeemable units From net investment income Series A

(396,072)

(527,549) Series D (251) - Series F (1,355,018) (819,594) Series I (9,710,638) (8,764,122) Series P (2,821) (3,192) Series PF (344,290) (234,257) Series T (43,859) (113,206) Series FT (94,335) (41,681) Series QF (257,973) (6,868) Series QFT (40,232) (20,865) From net capital gains on investments Series A

(29,865)

-

Series D (5) - Series F (72,534) - Series I (306,365) - Series P (26) - Series PF (17,968) - Series T (39,427) - Series FT (75,149) - Series QF (20,957) - Series QFT (14,893) -

(12,822,678) (10,531,334)

40





2019

2018

$ $



17,321,676

13,380,579

Series D 131,701 - Series F 54,116,497 25,163,018 Series I 40,616,474 212,911,958 Series P 4,236,220 996,428 Series PF 17,593,080 236,063 Series T 374,867 246,200 Series FT 5,805,606 831,242 Series QF 39,486,617 794,998 Series QFT 346,001 1,664,427 Reinvestments of distributions to holders of redeemable units Series A

347,360

456,290

Series D 84 - Series F 1,130,761 668,513 Series I 10,017,003 8,761,228 Series P 2,846 3,192 Series PF 351,036 234,257 Series T 193 - Series FT 90,971 - Series QF 523 - Series QFT - - Redemption of redeemable units Series A

(12,784,895)

(13,475,486)

Series D (62,466) - Series F (20,396,576) (6,223,381) Series I (111,588,192) (31,705,335) Series P (1,003,571) - Series PF (6,625,379) (574,805) Series T (694,619) (718,834) Series FT (492,074) (96,226) Series QF (536,831) (81,153) Series QFT (1,962,323) (27,716)

35,822,590 213,445,457


5,234,296

(343,355) Series D 68,997 - Series F 35,359,713 18,808,526 Series I (55,698,579) 183,267,301 Series P 3,234,396 994,270 Series PF 11,349,217 (309,262) Series T (335,915) (600,975) Series FT 5,322,767 693,375 Series QF 38,499,057 703,668 Series QFT (1,608,917) 1,608,917

41,425,032 204,822,465


29,978,191

24,743,895 Series D 68,997 - Series F 71,725,210 36,365,497 Series I 262,562,290 318,260,869 Series P 4,228,666 994,270 Series PF 18,524,508 7,175,291 Series T 1,705,111 2,041,026 Series FT 6,610,810 1,288,043 Series QF 39,202,725 703,668 Series QFT - 1,608,917


41


Statements of Changes in Net Assets Attributable to Holders of Redeemable Units Continued



2,386,748

2,353,177 Series D - - Series F 3,443,458 1,618,701 Series I 29,861,261 12,338,209 Series P 99,964 - Series PF 706,864 716,988 Series T 256,672 313,960 Series FT 146,047 64,397 Series QF 71,411 - Series QFT 163,980 -

37,136,405 17,405,432



1,636,579

1,268,722

Series D 13,269 - Series F 5,017,471 2,342,376 Series I 3,757,949 19,643,883 Series P 423,622 99,643 Series PF 1,690,750 22,960 Series T 46,813 30,060 Series FT 647,443 92,341 Series QF 3,884,422 79,568 Series QFT 34,778 166,761 Reinvestments of distributions to holders of redeemable units Series A

32,882

43,345

Series D 9 - Series F 104,826 62,489 Series I 922,491 811,792 Series P 284 321 Series PF 33,802 22,727 Series T 24 - Series FT 10,161 - Series QF 52 - Series QFT - - Redemption of redeemable units

Series A (1,210,367) (1,278,496) Series D (6,221) - Series F (1,885,856) (580,108) Series I (10,288,443) (2,932,623) Series P (100,114) - Series PF (638,025) (55,811) Series T (87,017) (87,348) Series FT (54,930) (10,691) Series QF (53,098) (8,157) Series QFT (198,758) (2,781)

3,734,798 19,730,973

Units, end of year

Series A 2,845,842 2,386,748 Series D 7,057 - Series F 6,679,899 3,443,458 Series I 24,253,258 29,861,261 Series P 423,756 99,964 Series PF 1,793,391 706,864 Series T 216,492 256,672 Series FT 748,721 146,047 Series QF 3,902,787 71,411 Series QFT - 163,980


42






18,425,120

1,908,342


566,775

(11,211)

Net realized (gains) losses on sale of investments 75,967 900,579 Net realized (gains) losses on option contracts 141,846 (1,561,444) Change in unrealized (appreciation) depreciation in value of investments (3,710,040) 5,819,322 Change in unrealized (appreciation) depreciation on forward currency contracts (1,805,629) 2,053,558 Change in unrealized (appreciation) depreciation on option contracts (171,128) (100,922)

Purchases of investments (696,577,472) (538,232,967) Proceeds from sales of investments 673,981,330 343,894,637 Net increase (decrease) in other assets and liabilities 443,140 1,088,790 Net cash provided by (used in) operating activities (8,630,091) (184,241,316)

Cash flows from financing activities Distributions paid to holders of redeemable units, net of reinvested distributions

(696,793)

(407,854) Proceeds from redeemable units issued 165,342,251 253,661,393 Redemption of redeemable units (140,585,459) (51,322,506) Net cash provided by (used in) financing activities 24,059,999 201,931,033


(566,775)

11,211

Net increase in cash 15,429,908 17,689,717 Cash (Bank indebtedness) at beginning of year 30,908,058 13,207,130 Cash (Bank indebtedness) at end of year 45,771,191 30,908,058


14,540,945

9,927,462 Interest paid 42,886 67,291 Dividends received, net of withholding taxes 270,715 685,652 Dividends paid 112,944 -


43


Schedule of Investment Portfolio

As at December 31, 2019 Expiry/Maturity Date Average Cost Fair Value $ $ PAR VALUE* SHORT TERM INVESTMENTS [10.89%] 6,000,000 Government of Canada, 0.000% Jan 6, 2020 5,998,327 5,998,680 5,000,000 Enbridge Inc., 0.000% Jan 23, 2020 4,992,087 4,993,950 21,500,000 Enbridge Inc., 0.000% Feb 6, 2020 21,445,189 21,356,380 4,000,000 Enbridge Inc., 0.000% Jan 7, 2020 3,998,071 3,998,640 10,000,000 Enbridge Inc., 0.000% Jan 9, 2020 9,993,777 9,995,500

USD 750,000 United States Treasury Bill, 0.000% Jan 21, 2020 985,948 973,159 Total Short Term Investments 47,413,399 47,316,309

2,000,000

BONDS [73.22%] CORPORATE BONDS [49.02%] AltaGas Canada Inc., Series 20, 2.609%,

Dec 16, 2022

2,000,000

2,005,648 2,500,000 Artis Real Estate Investment Trust, 3.674% Feb 22, 2021 2,500,000 2,527,294

USD 4,000,000 Bank of America Corp., 2.930% Apr 25, 2025 4,000,000 4,038,010 USD 3,000,000 Bank of America Corp., 3.301% Apr 24, 2024 2,996,960 3,071,259

2,000,000 Bank of Nova Scotia, 2.580% Mar 30, 2027 1,956,340 2,007,410 2,250,000 Brookfield Infrastructure Finance ULC, 3.315% Feb 22, 2024 2,221,875 2,293,766 6,000,000 Brookfield Infrastructure Finance ULC, 3.410% Oct 9, 2029 6,000,000 5,921,724 2,000,000 Brookfield Infrastructure Finance ULC, 3.452% Mar 11, 2022 2,020,600 2,044,847 2,000,000 Brookfield Property Finance ULC, 4.115% Oct 19, 2021 2,000,000 2,054,679

USD 3,000,000 Brookfield Property Finance ULC, 4.300% Mar 1, 2024 2,998,710 3,111,047 2,500,000 Brookfield Property Finance ULC, 4.346% Jul 3, 2023 2,500,000 2,596,442 4,000,000 Brookfield Renewable Partners Finance ULC, 4.790% Feb 7, 2022 4,232,440 4,200,402 3,000,000 Canadian Imperial Bank of Commerce, 2.350% Aug 28, 2024 3,000,000 2,976,603 1,700,000 Canadian Imperial Bank of Commerce, 3.450% Apr 4, 2028 1,703,082 1,743,788 1,000,000 Canadian Natural Resources Ltd., 3.310% Feb 11, 2022 1,009,030 1,019,762 5,000,000 Canadian Natural Resources Ltd., Series 2, 2.890% Aug 14, 2020 5,025,600 5,020,715 3,000,000 Canadian Tire Corp. Ltd., 3.167% Jul 6, 2023 2,993,400 3,062,839 2,500,000 Canadian Western Bank, 2.788% Sep 13, 2021 2,477,475 2,519,439 3,500,000 Canadian Western Bank, 2.833% Mar 14, 2022 3,500,000 3,533,650 1,500,000 Chartwell Retirement Residences, 3.786% Dec 11, 2023 1,500,000 1,546,865 3,500,000 Choice Properties Real Estate Investment Trust, 3.010% Mar 21, 2022 3,486,425 3,546,377 1,750,000 Crombie Real Estate Investment Trust, 3.962% Jun 1, 2021 1,760,463 1,785,013 1,682,000 Crombie Real Estate Investment Trust, 4.066% Nov 21, 2022 1,680,525 1,737,862 3,500,000 Daimler Canada Finance Inc., 3.300% Aug 16, 2022 3,501,296 3,567,530 5,000,000 Dollarama Inc., 3.550% Nov 6, 2023 4,976,850 5,155,305 9,000,000 Empire Life Insurance Co., 3.383% Dec 16, 2026 9,038,700 9,151,169 4,000,000 Enmax Corp., 2.922% Oct 18, 2022 4,000,000 4,040,229 3,000,000 Equitable Bank, 2.948% Sep 26, 2022 3,000,000 3,013,060 7,000,000 Fairfax Financial Holdings Ltd., 4.500% Mar 22, 2023 7,387,080 7,382,785 4,750,000 Federation Des Caisses Desjardins Du Quebec, 2.417% Oct 4, 2024 4,750,000 4,724,604 3,000,000 Ford Credit Canada Co., 2.650% Dec 1, 2020 3,000,000 2,996,640 5,000,000 Ford Credit Canada Co., 2.710% Feb 23, 2022 4,939,792 4,945,648 2,000,000 Ford Credit Canada Co., 4.460%** Mar 13, 2020**, Nov 13, 2024 2,000,000 2,018,123 7,900,000 GE Capital Canada Funding Co., 4.600% Jan 26, 2022 8,099,552 8,172,145 5,060,000 General Motors Financial of Canada Ltd., 3.000% Feb 26, 2021 5,047,957 5,086,709 2,250,000 General Motors Financial of Canada Ltd., Series 5, 3.250% Nov 7, 2023 2,249,415 2,255,240 5,000,000 Genworth MI Canada Inc., 4.242% Apr 1, 2024 5,211,210 5,249,456 2,000,000 Gibson Energy Inc., 3.600% Sep 17, 2029 1,994,000 2,011,058 2,550,000 Gibson Energy Inc., 5.250% Jul 15, 2024 2,705,224 2,693,378 3,079,000 Glacier Credit Card Trust, 3.298% Sep 20, 2022 2,982,135 3,077,676 1,500,000 Glacier Credit Card Trust, 4.138% Sep 20, 2023 1,500,000 1,531,590 2,400,000 HSBC Bank Canada, 3.245% Sep 15, 2023 2,400,000 2,467,968

GBP 3,000,000 HSBC Holdings PLC, 3.196% Dec 5, 2023 3,005,220 3,055,769 3,500,000 Inter Pipeline Ltd., Series 2019-B, 6.625% Nov 19, 2079 3,500,000 3,532,981 2,500,000 Laurentian Bank of Canada, 3.000% Sep 12, 2022 2,495,600 2,529,236 2,250,000 Laurentian Bank of Canada, 3.450% Jun 27, 2023 2,253,068 2,308,142 1,100,000 Manulife Financial Corp., 3.318% May 9, 2028 1,100,000 1,127,779 6,000,000 MCAP Commercial LP 5.00% Dec 14, 2022 6,018,680 6,251,018

USD 1,500,000 McDonald's Corp., 3.125% Mar 4, 2025 1,491,495 1,538,685 1,765,000 Metro Inc., 2.680% Dec 5, 2022 1,754,639 1,781,353 4,000,000 NBC Asset Trust, 7.450% Jun 30, 2020 4,237,040 4,098,855 5,000,000 Nissan Canada Financial Services Inc., 3.150% Sep 14, 2021 5,000,000 5,052,584 4,000,000 Pembina Pipeline Corp., 2.560% Jun 1, 2023 3,999,640 4,004,442 4,000,000 Penske Truck Leasing Canada Inc., 2.700% Sep 30, 2024 3,991,840 3,967,224 3,000,000 Reliance LP, 3.750% Mar 15, 2026 2,990,280 3,074,611 2,000,000 Shaw Communications Inc., 3.800% Nov 2, 2023 2,000,000 2,084,452 5,000,000 Shaw Communications Inc., 4.350% Jan 31, 2024 5,267,300 5,309,003 3,000,000 SNC Lavalin Group Inc., 2.689% Nov 24, 2020 2,995,060 2,996,076 7,485,000 SNC Lavalin Group Inc., 3.235% Mar 2, 2023 7,416,456 7,361,406

USD 2,500,000 Trulieve Cannabis Corp., 9.750% Jun 18, 2024 3,220,280 3,002,897 2,000,000 VW Credit Canada Inc., 2.850% Sep 26, 2024 1,995,740 2,000,853 2,000,000 VW Credit Canada Inc., 3.250% Mar 29, 2023 1,997,620 2,037,768

USD 2,000,000 Wells Fargo & Co., 2.975% May 19, 2026 1,917,260 2,010,151 210,993,354 213,031,039

44



As at December 31, 2019 Restriction/Expiry/Maturity Date Average Cost Fair Value

PAR VALUE*

GOVERNMENT BONDS [13.38%] $ $

EUR 10,000,000 Bundesrepublik Deutschland Bundesanleihe, 0.250% Feb 15, 2029 15,424,295 15,207,586 EUR 11,000,000 French Republic Government Bond OAT, 1.500% May 25, 2050 20,586,587 18,496,616

20,000,000 Government of Canada, 2.750% Dec 1, 2048 24,886,000 24,461,857 60,896,882 58,166,059

INVESTMENT GRADE BONDS [7.47%]

USD 5,000,000 AT&T Inc., 3.825% Nov 25, 2020 5,075,050 5,070,360 3,000,000 Capital Power Corp., 4.284% Sep 18, 2024 3,000,000 3,133,400 3,000,000 Capital Power Corp., 4.986% Jan 23, 2026 3,210,630 3,214,882 2,554,000 Capital Power Corp., 5.276% Nov 16, 2020 2,623,622 2,618,566 3,000,000 First National Financial Corp., 3.582%** Mar. 25, 2020**, Nov. 25, 2024 3,000,000 2,998,642 5,765,000 First National Financial Corp., 4.010% Apr 9, 2020 5,803,485 5,788,415 1,500,000 Morguard Corp., Series F, 4.204%** Mar 27, 2020**, Nov 27, 2024 1,500,000 1,506,226 1,500,000 Morguard Corp., Series C, 4.333% Sep 15, 2022 1,500,000 1,544,288 3,000,000 Morguard Corp., Series E, 4.715% Jan 25, 2024 3,000,000 3,103,196

AUD 3,500,000 National Australia Bank Ltd., Callable, 3.515% Jun 12, 2030 3,500,000 3,504,674 32,212,787 32,482,649

HIGH YIELD BONDS [3.35%]

2,000,000 Cominar Real Estate Investment Trust, 4.000% Nov 2, 2020 1,990,000 2,019,751 3,400,000 Cominar Real Estate Investment Trust, 4.500% May 15, 2024 3,400,000 3,514,465 3,566,000 Element Fleet Management Corp., 4.250% Jun 30, 2020 3,531,915 3,583,652 2,000,000 Hudbay Minerals Inc., Callable, 7.250% Jan 15, 2023 2,718,117 2,700,439 1,500,000 Hudbay Minerals Inc., Callable, 7.625% Jan 15, 2025 1,999,493 2,059,991 1,000,000 Source Energy Services Canada LP/ Source Energy Services Canada Holdings Ltd., 10.50% Dec 15, 2021 1,057,500 662,500 14,697,025 14,540,798 Total Bonds 318,800,048 318,220,545

ASSET-BACKED SECURITIES [4.46%]

5,619,179 Classic RMBS Trust, 3.064% Aug 16, 2049 5,619,179 5,611,368 2,232,660 Ford Auto Securitization Trust, 2.528% Aug 15, 2022 2,232,660 2,238,184 2,000,000 Ford Auto Securitization Trust, 2.841% Jan 15, 2024 2,000,000 2,022,116 2,250,670 MCAP RMBS Issuer Corp. Mortgage Pass-Through Certificates Series 2018-2 A, 2.750% May 15, 2023 2,221,508 2,262,351 1,659,476 Real Estate Asset Liquidity Trust, 2.870% Jun 12, 2022 1,659,266 1,672,259 1,625,687 Real Estate Asset Liquidity Trust, 3.072% Jun 12, 2023 1,624,561 1,640,697 3,948,977 Real Estate Asset Liquidity Trust, 3.641% Jun 14, 2024 3,948,955 3,958,810 Total Asset-Backed Securities 19,306,129 19,405,785

SHARES EQUITIES [1.28%]

UTILITIES [1.28%] 166,972 AltaGas Canada Inc. 5,550,150 5,571,710

Total Equities 5,550,150 5,571,710

SHARES WARRANTS [0.05%]

HEALTH CARE [0.05%]

65,000 Trulieve Cannabis Corp. Jun 18, 2022 - 211,250 Total Warrants - 211,250 Transaction Costs (note 3) (22,516) - Total Investments Owned [89.90%] 391,047,210 390,725,599

SHORT POSITIONS [-1.29%]

UNITS FUNDS [-1.29%] (49,150) iShares iBoxx $ High Yield Corporate Bond ETF (5,623,304) (5,612,659) Total Investments Sold Short [-1.29%] (5,623,304) (5,612,659) Net Investments [88.61%] 385,423,906 385,112,940 Total unrealized appreciation on forward currency contracts [0.18%] (Schedule 1) 779,575 Options purchased [0.28%] (Schedule 2) 1,198,886 Options written [-0.15%] (Schedule 2) (661,416) Cash and Other Assets Less Liabilities [11.08%] 48,176,523 Total Net Assets attributable to holders of redeemable units [100.00%] 434,606,508 * All par values are in Canadian Dollars unless otherwise noted. ** Securities that are restricted for resale until the date indicated, or under Rule 144 of the Securities Act of 1933 for those noted R1933 *** Private Company. See accompanying notes which are an integral part of these financial statements

45


Forward Currency Contracts (Schedule 1)

As at December 31, 2019

Settlement

Contract Cost

Forward Value

Unrealized Appreciation

Bought ($) Sold ($) Date $(CAD) $(CAD) $(CAD) 11,273,516 Canadian Dollar (8,590,000) U.S. Dollar 10-Jan-20 (11,273,516) (11,154,124) 119,392 12,329,940 Canadian Dollar (9,300,000) U.S. Dollar 14-Feb-20 (12,329,940) (12,074,264) 255,676 9,188,556 Canadian Dollar (6,930,000) U.S. Dollar 14-Feb-20 (9,188,556) (8,997,274) 191,282

18,091,736 Canadian Dollar (12,340,000) Euro 10-Jan-20 (18,091,736) (17,981,703) 110,033 16,627,706 Canadian Dollar (11,340,000) Euro 10-Jan-20 (16,627,706) (16,524,514) 103,192

Total 779,575

Option Contracts (Schedule 2)


Options Purchased

Premium Fair Number of Expiration Strike Paid Value Option Details Option Type Contracts Date Price ($) $(CAD) $(CAD) iShares 20+ Year Treasury Bond ETF Put 5,400 17-Jan-20 136.00 USD 826,236 1,100,911 iShares 20+ Year Treasury Bond ETF Put 5,400 17-Jan-20 130.00 USD 161,674 91,158 iShares iBoxx $ Investment Grade Corporate Bond ETF Put 350 17-Jan-20 112.00 USD 142,447 6,817 Total 1,130,357 1,198,886 Options Written

Premium Fair Number of Expiration Strike Received Value Option Details Option Type Contracts Date Price ($) $(CAD) $(CAD) iShares 20+ Year Treasury Bond ETF Put (10,800) 17-Jan-20 133.00 USD (691,344) (659,144) iShares 20+ Year Treasury Bond ETF Put (350) 17-Jan-20 105.00 USD (57,446) (2,272) Total (748,790) (661,416)

46

Ninepoint Diversified Bond Fund Notes to financial statements – Fund specific information December 31, 2019


Investment Objective The Fund’s investment objective is to maximize the total return of the Fund and provide income by investing primarily in debt and debt-like securities of corporate and government issuers from around the world.

The Schedule of Investment Portfolio presents the securities held by the Fund as at December 31, 2019. Significant risks that are relevant to the Fund are discussed here. General information on risks and risk management is described in Note 6.

Market Risk a) Other Price Risk As at December 31, 2019 and 2018, the Fund did not have a significant exposure to other price risk.

b) Currency Risk The tables below summarize the Fund’s exposure to currency risk at December 31, 2019 and 2018. The tables also illustrate the potential impact to the Fund’s Net Assets attributable to holders of redeemable units as a result of 1% changes in these currencies relative to the Canadian dollar, with all other variables held constant.

December 31, 2019 Currency

Fair Value

Forward Currency

Contracts

Net Exposure


of redeemable units


of redeemable units $ $ $ % $ U.S. Dollar 44,292,953 (32,225,662) 12,067,291 2.77 120,673 Euro 33,888,179 (34,506,216) (618,037) (0.14) (6,180) 78,181,132 (66,731,878) 11,449,254 2.63 114,493

December 31, 2018

% of Net Assets Impact on Net Assets Forward Currency attributable to holders attributable to holders Currency Fair Value Contracts Net Exposure of redeemable units of redeemable units

$ $ $ % $ U.S. Dollar 37,296,892 (38,394,637) (1,097,745) (0.28) (10,977) Euro 2,474,473 (2,345,444) 129,029 0.03 1,290 39,771,365 (40,740,081) (968,716) (0.25) (9,687)

c) Interest Rate Risk The table below summarizes the Fund’s exposure to interest rate risk, categorized by earlier of contractual re-pricing or maturity dates as at December 31, 2019 and 2018. The table also illustrates the potential impact to the Fund’s Net Assets attributable to holders of redeemable units, had interest rates increased or decreased by 1% with all other variables remaining constant. In practice, the actual results may differ from this sensitivity analysis and the difference could be material. The Fund’s short-term assets and liabilities are not subject to a significant amount of risk due to fluctuations in the prevailing level of market interest rates.

Total Exposure Term to Maturity December 31, 2019 December 31, 2018

$ $ Less than 1 year 77,410,483 60,396,672 1-5 years 187,447,195 154,008,413 >5 years 120,084,961 129,359,960 Total 384,942,639 343,765,045 Impact on Net Assets attributable to holders of redeemable units ($) 22,078,151 8,147,232 Impact on Net Assets attributable to holders of redeemable units (%) 5.08 2.07

47


Credit Risk The Fund invests in debt instruments, which have a credit rating as rated primarily by Dominion Bond Rating Services, Standard & Poor’s or Moody’s. The Fund generally invests in fixed income securities issued or generated by the Canadian government or its agencies , other Canadian issuers, foreign governments or their agencies, other foreign issuers, and supranational organizations. The table below summarizes the ratings for securities that subject the Fund to credit risk, as a percentage of Net Assets attributable to holders of redeemable units, as at December 31, 2019 and 2018.


AAA 19.45 6.42 AA 2.23 4.98 A 14.75 18.39 BBB 48.11 45.74 BB 2.09 7.65 B 1.25 3.46 Not Rated 0.69 0.80 Total 88.57 87.44

As at December 31, 2019 and 2018, the Fund was also exposed to credit risk from over-the-counter derivative contracts with counterparties. The credit risk is considered minimal as these counterparties have a minimum credit rating of AA- by Standard & Poor’s or equivalent.

Concentration Risk The table below summarizes the Fund’s concentration risk as a percentage of Net Assets attributable to holders of redeemable units as at December 31, 2019 and 2018. December 31, 2019 December 31, 2018 % % Bonds and Convertible Debentures:

Corporate Bonds 49.02 67.26 Government Bonds 13.38 – Investment Grade Bonds 7.47 – High Yield Bonds 3.35 11.16 Convertible Bonds – 0.75

Asset-Backed Securities 4.46 2.91 Short-Term Investments 10.89 5.36 Equities: – –

Utilities 1.28 – Financials – 1.86 Other – 0.75

Warrants 0.05 – Funds (1.29) 1.37 Unrealized appreciation on forward currency contracts 0.18 – Unrealized depreciation on forward currency contracts – (0.26) Options purchased 0.28 0.04 Options written (0.15) (0.04) Cash and Other Assets Less Liabilities 11.08 8.84 Total Net Assets attributable to holders of redeemable units 100.00 100.00

48


The Fund’s investment portfolio is concentrated in the following geographic segments as at December 31, 2019 and 2018.

December 31, 2019 December 31, 2018 % % Canada 75.35 68.28 France 4.25 – United States 4.00 17.03 Germany 3.49 1.65 United Kingdom 0.70 2.45 Japan – 1.27 Switzerland – 0.69 Other 0.82 0.05 Unrealized appreciation on forward currency contracts 0.18 – Unrealized depreciation on forward currency contracts – (0.26) Options purchased 0.28 0.04 Options written (0.15) (0.04) Cash and Other Assets Less Liabilities 11.08 8.84 Total Net Assets attributable to holders of redeemable units 100.00 100.00



Bonds – 318,220,545 – 318,220,545 Equities 5,571,710 – – 5,571,710 Warrants 211,250 – – 211,250 Funds (5,612,659) – – (5,612,659) Short-Term Investments – 47,316,309 – 47,316,309 Asset-Backed Securities – 19,405,785 – 19,405,785 Forward Currency Contracts – 779,575 – 779,575 Options Purchased 1,198,886 – – 1,198,886 Options Written (661,416) – – (661,416) 707,771 385,722,214 – 386,429,985


Bonds and Convertible Debentures – 331,067,550 172,940 331,240,490 Equities 15,658,774 – – 15,658,774 Warrants – – – – Short-Term Investments – 21,089,882 – 21,089,882 Asset-Backed Securities – 11,434,673 – 11,434,673 Forward Currency Contracts – (1,026,054) – (1,026,054) Options Purchased 162,422 – – 162,422 Options Written (152,869) – – (152,869) 15,668,327 362,566,051 172,940 378,407,318

During the years ended December 31, 2019 and 2018, there were no significant transfers between levels other than the transfers indicated below.

49


The reconciliation of investments measured at fair value using unobservable inputs (Level 3) for the years ended December 31, 2019 and 2018, is presented as follows:

investments


The Fund’s Level 3 securities consist of private warrant and private bond positions. The Manager determines the fair value by utilizing a variety of valuation techniques such as the use of comparable recent transactions, discounted cash flows and other techniques used by market participants. As at December 31, 2019, the Fund did not hold Level 3 securities. As at December 31, 2018, the positions were not significant to the Fund and any changes in reasonable possible assumptions used in their valuation would not have a significant impact to the Net Assets attributable to holders of redeemable units of the Fund.

Restricted Cash and Investments (note 10) As at December 31, 2019, restricted cash and investments held for the Fund totaled $12,736,240 (December 31, 2018 - $5,438,340).


Series A Series D Series F Series I* Series T Series FT Series P Series PT Series PF Series PFT Series Q Series QT Series QF Series QFT Up to 1.65%

Up to 1.20%

Up to 0.75%

Negotiated by the

Unitholder

Up to 1.65%

Up to 0.75%

Up to 1.55%

Up to 1.55%

Up to 0.65%

Up to 0.65%

Up to 1.45%

Up to 1.45%

Up to 0.55%

Up to 0.55%




Securities loaned 23,082,170 20,433,585 Collateral 24,244,658 20,842,264 Collateral as a percentage of securities loaned (%) 105 102

December 31, 2019 December 31, 2018 Bonds Warrants Bonds Warrants $ $ $ $

Balance, beginning of year 172,940 – 43,819 – Sales (25,941) – (6,924) – Realized gains (losses) (100,058) – (26,705) – Change in unrealized appreciation (depreciation) in the value of (46,941) – 162,750 –

Balance, end of year – – 172,940 –

Change in unrealized appreciation (depreciation) during the year for – – 138,353 –

50


For the years ended December 31, 2019 and 2018, securities lending income was as follows: December 31, 2019 December 31, 2018

Custodian

The Bank of New York Mellon

Corp.



$ $ $

Gross securities lending income 23,323 10,908 – Securities lending charges (11,660) (2.328) – Net securities lending income 11,663 8,580 – Withholding taxes on securities lending income – (364) – Net securities lending income received by the Fund 11,663 8,216 – Securities lending charges as a percentage of gross securities lending income (%) 50 21 –


Sharing Arrangements (note 13) During the year ended December 31, 2019, the Fund paid $648 out of the total transaction costs incurred to certain brokers for research provided to the portfolio manager (December 31, 2018 - $nil).


51

Ninepoint High Interest Savings Fund (formerly, Ninepoint Short-Term Bond Fund)



As at December 31 2019 2018 $ $


Investments (note 3, 5) 146,986,678 9,275,835 Cash - 2,822,823 Subscriptions receivable 2,916,252 - Interest receivable 264,958 37,564 Prepaid expenses 3,756 - Total assets 150,171,644 12,136,222

Liabilities

Current liabilities Bank indebtedness 4,512 - Distribution payable to unitholders 188 - Redemptions payable 5,183,303 - Accrued expenses - 3,820 Total liabilities 5,188,003 3,820 Net Assets attributable to holders of redeemable units 144,983,641 12,132,402


Series A 41,757,298 2,876,468 Series F 99,852,716 3,054,339 Series I 3,373,627 5,983,337 Series I1 - 218,258


Series A 9.73 9.72 Series F 9.72 9.71 Series I 9.99 9.79 Series I1 - 10.02





52





2019

2018

$ $

Income

Interest income for distribution purposes (note 3) 2,001,066 359,769 Net realized gains (losses) on sale of investments (16,983) (42,907) Change in unrealized appreciation (depreciation) in the value of investments 28,302 15,460 Other income - 1,638 Total income (loss) 2,012,385 333,960


Management fees 189,293 44,582 Administrative fees 75,511 31,943 Unitholder reporting costs 41,485 18,983 Filing fees 19,233 20,402 Legal fees 18,308 14,974 Audit fees 5,347 11,313 Independent Review Committee fees (note 14) 4,331 4,318 Custodial fees 2,642 897 Interest expense and bank charges 86 - Total expenses 356,236 147,412 Expenses waived/absorbed by the Manager (note 12) (151,757) - Net expenses 204,479 147,412 Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations 1,807,906 186,548


Series A (249,753) 34,969 Series F 888,196 44,759 Series I 1,112,710 104,662 Series I1 56,753 2,158


Series A 2,135,460 322,606 Series F 6,357,680 328,313 Series I 725,164 556,825 Series I1 31,017 17,673


Series A (0.12) 0.11 Series F 0.14 0.14 Series I 1.53 0.19 Series I1 1.83 0.12


53






2,876,468

3,538,898

Series F 3,054,339 3,949,010 Series I 5,983,337 6,340,751 Series I1 218,258 100,539

12,132,402 13,929,198


(249,753)

34,969 Series F 888,196 44,759 Series I 1,112,710 104,662 Series I1 56,753 2,158

1,807,906 186,548


(370,944)

(46,236) Series F (1,293,552) (52,682) Series I (119,006) (119,841) Series I1 - (3,439) From return of capital Series A

-

-

Series F - - Series I - - Series I1 (653) -

(1,784,155) (222,198)



85,982,879

1,596,543

Series F 295,576,789 26,921 Series I 27,134,627 1,621,184 Series I1 144,203 179,000 Reinvestments of distributions to holders of redeemable units Series A

370,382

46,236

Series F 1,293,549 52,682 Series I 119,006 119,841 Series I1 - - Redemption of redeemable units Series A

(46,851,734)

(2,293,942)

Series F (199,666,605) (966,351) Series I (30,857,047) (2,083,260) Series I1 (418,561) (60,000)

132,827,488 (1,761,146)


38,880,830

(662,430) Series F 96,798,377 (894,671) Series I (2,609,710) (357,414) Series I1 (218,258) 117,719

132,851,239 (1,796,796)


41,757,298

2,876,468 Series F 99,852,716 (894,671) Series I 3,373,627 5,983,337 Series I1 - 218,258


54





296,073

362,881 Series F 314,698 405,253 Series I 611,433 645,600 Series I1 21,787 10,000

1,243,991 1,423,734



8,767,530

163,334

Series F 30,346,470 2,753 Series I 2,809,666 165,066 Series I1 19,931 17,760 Reinvestments of distributions to holders of redeemable units Series A

38,065

4,785

Series F 133,083 5,403 Series I 11,928 12,194 Series I1 - - Redemption of redeemable units Series A

(4,811,337)

(234,927)

Series F (20,520,571) (98,711) Series I (3,095,332) (211,427) Series I1 (41,718) (5,973)

13,657,715 (179,743)


4,290,331

296,073 Series F 10,273,680 (90,555) Series I 337,695 611,433 Series I1 - 21,787

14,901,706 838,738 See accompanying notes which are an integral part of these financial statements

55






1,807,906

186,548 Adjustments for:

Net realized (gains) losses on sale of investments

16,983

42,907

Change in unrealized (appreciation) depreciation in value of investments (28,302) (15,460) Purchases of investments (331,516,245) (5,155,698) Proceeds from sales of investments 193,816,722 9,855,114 Net increase (decrease) in other assets and liabilities (234,970) 81,356 Net cash provided by (used in) operating activities (136,137,906) 4,994,767


(1,030)

(3,439) Proceeds from redeemable units issued 405,326,792 3,423,648 Redemption of redeemable units (272,015,191) (5,439,797) Net cash provided by (used in) financing activities 133,310,571 (2,019,588)

Net increase (decrease) in cash

(2,827,335)

2,975,179

Cash (Bank indebtedness) at beginning of year 2,822,823 (152,356) Cash (Bank indebtedness) at end of year (4,512) 2,822,823


1,773,672

436,773 Interest paid 86 -


56



As at December 31, 2019 Average Cost Fair Value

$ $

HIGH INTEREST SAVINGS ACCOUNTS [101.38%] Bank of Montreal Cash Account

87,660,376

87,660,376

Toronto Dominion Bank Cash Account 59,326,302 59,326,302 Total in High Interest Savings Accounts 146,986,678 146,986,678 Total Investments [101.38%] 146,986,678 146,986,678 Cash and Other Assets Less Liabilities [-1.38%] (2,003,037) Total Net Assets attributable to holders of redeemable shares [100.00%] 144,983,641


57


Notes to financial statements – Fund specific information December 31,2019


Investment Objective The Fund’s objective is to maximize yield on cash balances, while providing easy access to investments with daily liquidity. The Fund invests in high interest savings accounts offered at Schedule 1 Canadian Banks.

General information on risks and risk management is described in Note 6.

Market Risk a) Other Price Risk As at December 31, 2019 and 2018, the Fund did not have a significant exposure to other price risk.

b) Currency Risk As at December 31, 2019 and 2018, the Fund did not have a significant exposure to currency risk.

c) Interest Rate Risk As at December 31, 2019, the Fund did not have a significant exposure to interest rate risk. The table below summarizes the Fund’s exposure to interest rate risk, categorized by the earlier of contractual re-pricing or maturity dates as at December 31, 2018. The table also illustrates the potential impact to the Fund’s Net Assets attributable to holders of redeemable units, had interest rates increased or decreased by 1% with all other variables remaining constant. In practice, the actual results may differ from this sensitivity analysis and the difference could be material. The Fund’s short-term assets and liabilities are not subject to a significant amount of risk due to fluctuations in the prevailing level of market interest rates.

Total Exposure Term to Maturity December 31, 2018

$

Less than 1 year 3,504,095 1-5 years 5,771,740 >5 years – Total 9,275,835

Impact on Net Assets attributable to holders of redeemable units ($) 50,090 Impact on Net Assets attributable to holders of redeemable units (%) 0.41

Credit Risk As at December 31, 2019, the Fund held deposit accounts with Schedule 1 Canadian Banks. The Fund is exposed to the credit risk that a bank, with which it has a deposit account, will be unable to pay amounts in full when due. This credit risk is considered low.

As at December 31, 2018, the Fund invested in debt instruments which had a credit rating as rated primarily by Dominion Bond Rating Services, Standard & Poor’s or Moody’s. The Fund generally invested in fixed income securities issued or generated by the Canadian government or its agencies, other Canadian issuers, foreign governments or their agencies, other foreign issuers, and supranational organizations. The table below summarizes the credit ratings for banks, with which the Fund has a deposit account, securities subject to credit risk, and as a percentage of Net Assets attributable to holders of redeemable units as at December 31, 2018.

Rating December 31, 2018 %

AAA 0.82 AA 8.25 A 27.99 BBB 39.40 Total 76.46

58



Concentration Risk The table below summarizes the Fund’s concentration risk as a percentage of Net Assets attributable to holders of redeemable units as at December 31, 2019 and December 31, 2018.

December 31, 2019 December 31, 2018 % % Bonds and Convertible Debentures:

Corporate Bonds – 75.64 Government Bonds – 0.82

High Interest Savings Accounts 101.38 – Cash and Other Assets Less Liabilities (1.38) 23.54 Total Net Assets attributable to holders of redeemable units 100.00 100.00

Fair Value Measurements (note 5) As at December 31, 2019, the Fund’s investments are in high interest savings accounts offered by Schedule 1 Canadian banks.

The Fund’s assets and liabilities measured at fair value have been categorized based upon the fair value hierarchy in the table below as at December 31, 2018.

December 31, 2018 Level 1 Level 2 Level 3 Total Bonds and Convertible Debentures

$ –

$ 9,275,835

$ –

$ 9,275,835

– 9,275,835 – 9,275,835

During the year ended December 31, 2018, there were no significant transfers between levels.


Series A Series D Series F Series I* Series I1* Up to 0.39% Up to 0.26% Up to 0.14% Negotiated by the

Unitholder Negotiated by the

Unitholder * The management fee for Series I units of the Fund is negotiated by the unitholder and may be paid directly by the Fund or by the unitholder.

Related Party Holdings Ninepoint Financial Group, the parent company of the Manager, and its respective subsidiaries, held the following investments in the Fund as at December 31, 2019 and December 31, 2018.

December 31, 2019 December 31, 2018 Shares held Series A

107

–

Value of shares held ($) 1,037 –


Non-capital losses Capital losses Non-capital losses

$ $ year of expiry

520,044 – –

59



Fund Merger During the period ended December 31, 2019, the Fund acquired all the assets of the fund listed below (the “Acquired Fund”), and in exchange, it issued shares to the Acquired Fund which in turn were distributed to the shareholders of the Acquired Fund. The Manager was the investment advisor to the Acquired Fund.



Number of shares issued by the Fund to the Acquired Fund

March 4, 2019 Ninepoint Short-Term Bond Class $4,773,273 491,293


60

Ninepoint Silver Bullion Fund



As at December 31 2019 2018 $ $

Assets

Current assets

Investments (note 3, 5) 50,618,712 43,384,379 Cash 151,035 - Due from broker - 311,651 Subscriptions receivable 6,941 2,209 Total assets 50,776,688 43,698,239

Liabilities

Current liabilities

Bank indebtedness - 62,336 Redemptions payable 31,597 71,494 Accrued expenses 122,793 56,037




Series A 30,858,587 34,821,613 Series F 19,763,711 8,686,759


Series A 5.02 4.73 Series F 5.24 4.91 Series A $US 3.87 3.47 Series F $US 4.04 3.60





61





2019

2018

$ $

Income Interest income for distribution purposes (note 3) - Net realized gains (losses) on sale of investments (2,695,647) (8,395,987) Net realized gains (losses) on foreign exchange (87,534) 118,867 Change in unrealized appreciation (depreciation) in value of investments 7,216,846 7,671,632 Other income 41 12,461 Total income (loss) 4,433,706 (593,027)


Management fees 571,879 649,165 Custodial fees 166,273 149,356 Unitholder reporting costs 105,569 152,389 Administrative fees 71,576 51,802 Legal fees 34,449 30,916 Filing fees 25,009 25,951 Audit fees 14,448 15,804 Interest expense and bank charges 12,433 - Independent Review Committee fees (note 14) 5,243 4,485 Total expenses 1,006,879 1,079,868 Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations 3,426,827 (1,672,895)


Series A 1,802,477 (1,475,984) Series F 1,624,350 (196,911)


Series A 6,551,712 8,294,270 Series F 2,686,593 1,994,040


Series A 0.28 (0.18) Series F 0.60 (0.10)


62






34,821,613

54,536,359

Series F 8,686,759 10,860,885 43,508,372 65,397,244


1,802,477

(1,475,984) Series F 1,624,350 (196,911)

3,426,827 (1,672,895)



2,052,413

2,535,414


(7,817,916)

(20,774,176)

Series F (3,142,407) (4,414,808) 3,687,099 (20,215,977)


(3,963,026)

(19,714,746) Series F 11,076,952 (2,174,126)

7,113,926 (21,888,872)


30,858,587

34,821,613 Series F 19,763,711 8,686,759


63





7,357,144

11,179,045 Series F 1,769,358 2,156,708

9,126,502 13,335,753



430,368

549,328

Series F 2,653,178 517,528 Redemption of redeemable units Series A

(1,645,738)

(4,371,229)

Series F (648,895) (904,878) 788,913 (4,209,251)


6,141,774

7,357,144 Series F 3,773,641 1,769,358


64






3,426,827

(1,672,895)


79,692

16

Net realized (gains) losses on sale of investments 2,695,647 8,395,987 Change in unrealized (appreciation) depreciation in value of investments (7,216,846) (7,671,632)

Purchases of investments (10,357,822) - Proceeds from sales of investments 7,956,339 21,110,497 Net increase (decrease) in other assets and liabilities 66,756 (27,292) Net cash provided by (used in) operating activities (3,349,407) 20,134,681


14,336,391

4,785,817 Redemption of redeemable units (10,693,921) (24,992,316) Net cash provided by (used in) financing activities 3,642,470 (20,206,499)


(79,692)

(16)

Net increase (decrease) in cash 293,063 (71,818) Cash (Bank indebtedness) at beginning of year (62,336) 9,498 Cash (Bank indebtedness) at end of year 151,035 (62,336)


-

- Interest paid 12,433 -


65



$ $

OUNCES BULLION [99.99%] 2,183,525 Silver Bullion 59,558,935 50,618,712

Total Investments [99.99%] 59,558,935 50,618,712 Cash and Other Assets Less Liabilities [0.01%] 3,586 Total Net Assets attributable to holders of redeemable units [100.00%] 50,622,298


66

Ninepoint Silver Bullion Fund Notes to financial statements – Fund specific information December 31, 2019


Investment Objective The investment objective of the Fund is to seek to provide a secure, convenient alternative for investors seeking to hold silver. The Fund will invest primarily in unencumbered, fully allocated silver bullion and silver certificates. The Fund may also invest a portion of its assets in cash, money market instruments and/or treasury bills. The Fund will only purchase and expects only to own “Good Delivery Bars” as defined by the London Bullion Market Association (“LBMA”), with each bar purchased being verified against the LBMA source.

The Schedule of Investment Portfolio presents the investments held by the Fund as at December 31, 2019. Significant risks that are relevant to the Fund are discussed here. General information on risks and risk management is described in Note 6 of the Generic Notes.

Market Risk a) Other Price Risk If the price of silver bullion were to fluctuate by 10%, with all other variables held constant, the Fund’s Net Assets attributable to holders of redeemable units would increase or decrease by the amounts shown in the table below.


Impact




of redeemable units

$ % $ % 5,061,871 10.00 4,338,438 9.97


December 31, 2019


$ 50,618,720

% 99.99

$ 506,187

December 31, 2018


$ 43,379,419

% 99.70

$ 433,794



67

Ninepoint Silver Bullion Fund Notes to financial statements – Fund specific information December 31, 2019


December 31, 2019 December 31, 2018 % % Silver Bullion 99.99 99.72 Cash and Other Assets Less Liabilities 0.01 0.28 Total Net Assets attributable to holders of redeemable units 100.00 100.00


December 31, 2019 Level 1 Level 2 Level 3 Total Silver Bullion

$ 50,618,712

$ –

$ –

$ 50,618,712

December 31, 2018 Level 1 Level 2 Level 3 Total Silver Bullion

$ 43,384,379

$ –

$ –

$ 43,384,379



Series A Series D Series F Series I*

Up to 1.30% Up to 1.08% Up to 0.85% Negotiated by the Unitholder





$ 50,458,046

$ –

–


68

Ninepoint Enhanced Balanced Fund



As at December 31 2019 2018 $ $


Investments (note 3, 5, 10) 26,195,426 42,392,388 Cash (note 10) 363,557 646,770 Options purchased (note 3, 5) 147,440 299,626 Unrealized appreciation on forward currency contracts (note 3, 5) 101,917 - Broker margin (note 10) 545,391 409,473 Due from broker 14,802 35,093 Subscriptions receivable 725 2,150 Dividends receivable 28,679 22,892 Interest receivable 36,944 - Total assets 27,434,881 43,808,392

Liabilities

Current liabilities

Options written (note 3, 5) 141,574 28,915 Unrealized depreciation on forward currency contracts (note 3, 5) - 263,138 Distribution payable to unitholders 52,435 - Due to broker 53,252 - Redemptions payable 35,917 261,217 Accrued expenses 8,494 20,475




Series A 14,031,672 26,533,975 Series A1 2,230,667 3,790,171 Series D - - Series F 8,937,992 10,048,955 Series F1 331,148 514,797 Series T 1,062,392 1,401,806 Series FT 549,338 940,350 Series I - 4,593


Series A 11.02 10.64 Series A1 11.04 10.72 Series D - - Series F 11.66 11.43 Series F1 11.77 11.52 Series T 7.10 7.21 Series FT 7.88 7.92 Series I - 10.16





69





2019

2018

$ $

Income

Interest income for distribution purposes (note 3) 2,105 12,563 Distribution income (note 3) 628,950 949,084 Dividends (note 3) 244,021 639,261 Net realized gains (losses) on sale of investments 1,960,625 2,007,290 Net realized gains (losses) on forward currency contracts (164,065) (290,783) Net realized gains (losses) on option contracts (1,247,085) 481,541 Change in unrealized appreciation (depreciation) in the value of investments 905,235 (7,349,317) Change in unrealized appreciation (depreciation) on forward currency contracts 365,055 (564,834) Change in unrealized appreciation (depreciation) on option contracts 196,914 (35,648) Net realized gains (losses) on foreign exchange (74,165) 69,450 Securities lending income 609 - Other income 20,145 5,013 Total income (loss) 2,838,344 (4,076,380)


Management fees 601,199 1,068,031 Administrative fees 86,969 88,343 Transaction costs (note 3, 13) 77,221 51,319 Unitholder reporting costs 76,379 111,612 Filing fees 27,184 22,429 Audit fees 22,797 25,389 Legal fees 18,640 21,440 Withholding taxes 11,912 23,368 Independent Review Committee fees (note 14) 5,174 4,506 Custodial fees 3,430 5,509 Interest expense and bank charges 926 - Total expenses 931,831 1,421,946 Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations 1,906,513 (5,498,326)


Series A 1,068,014 (3,510,753) Series A1 159,250 (510,724) Series D (6) - Series F 544,793 (1,117,761) Series F1 27,079 (54,105) Series T 58,892 (188,570) Series FT 48,288 (115,977) Series I 203 (436)


Series A 1,727,556 2,979,106 Series A1 262,240 446,188 Series D 373 - Series F 854,755 894,684 Series F1 34,417 43,226 Series T 180,599 233,944 Series FT 95,751 137,935 Series I 453 429


Series A 0.62 (1.18) Series A1 0.61 (1.14) Series D (0.02) - Series F 0.64 (1.25) Series F1 0.79 (1.25) Series T 0.33 (0.81) Series FT 0.50 (0.84) Series I 0.45 (1.02)


70






26,533,975

44,079,307

Series A1 3,790,171 7,867,748 Series D - - Series F 10,048,955 12,111,803 Series F1 514,797 616,967 Series T 1,401,806 2,614,833 Series FT 940,350 1,560,380 Series I 4,593 5,029

43,234,647 68,856,067


1,068,014

(3,510,753) Series A1 159,250 (510,724) Series D (6) - Series F 544,793 (1,117,761) Series F1 27,079 (54,105) Series T 58,892 (188,570) Series FT 48,288 (115,977) Series I 203 (436)

1,906,513 (5,498,326)

Distributions to holders of redeemable units

From net investment income Series A

-

(2,363)

Series A1 - (834) Series D - - Series F (95,069) (13,251) Series F1 (3,615) (704) Series T - (115,588) Series FT (4,489) (73,600) Series I - (10) From net capital gains on investments Series A

(110,998)

(1,299,358)

Series A1 (32,059) (185,722) Series D - - Series F (211,137) (493,890) Series F1 (7,806) (25,338) Series T (16,483) (71,989) Series FT (12,975) (48,687) Series I - (225) From return of capital Series A

-

-

Series A1 - - Series D - - Series F - - Series F1 - - Series T (60,254) - Series FT (26,760) - Series I - -

(581,645) (2,331,559)

71







2,660,099

1,814,364

Series A1 1,764 1,764 Series D 3,725 - Series F 6,793,489 2,189,205 Series F1 - - Series T 558,871 36,353 Series FT Series I

363,923 -

99,157

Reinvestments of distributions to holders of redeemable units Series A

106,204

1,273,897

Series A1 29,536 178,353 Series D - - Series F 269,356 454,656 Series F1 10,606 22,580 Series T 2,790 1,680 Series FT 2,262 - Series I - 235 Redemption of redeemable units Series A

(16,225,622)

(15,821,119)

Series A1 (1,717,995) (3,560,414) Series D (3,719) - Series F (8,412,395) (3,081,807) Series F1 (209,913) (44,603) Series T (883,230) (874,913) Series FT (761,261) (480,923) Series I (4,796) -

(17,416,306) (17,791,535)


(12,502,303)

(17,545,332) Series A1 (1,559,504) (4,077,577) Series D - - Series F (1,110,963) (2,062,848) Series F1 (183,649) (102,170) Series T (339,414) (1,213,027) Series FT (391,012) (620,030) Series I (4,593) (436)

(16,091,438) (25,621,420)


14,031,672

26,533,975 Series A1 2,230,667 3,790,171 Series D - - Series F 8,937,992 10,048,955 Series F1 331,148 514,797 Series T 1,062,392 1,401,806 Series FT 549,338 940,350 Series I - 4,593


72





2,493,676

3,522,467 Series A1 353,733 624,925 Series D - - Series F 879,134 910,242 Series F1 44,674 46,044 Series T 194,416 291,133 Series FT 118,771 160,063 Series I 452 429

4,084,856 5,555,303



240,971

146,589

Series A1 159 143 Series D 373 - Series F 569,582 165,879 Series F1 - - Series T 76,432 3,967 Series FT 45,103 10,415 Series I - - Reinvestments of distributions to holders of redeemable units Series A

9,634

119,722

Series A1 2,675 16,645 Series D - - Series F 23,097 39,776 Series F1 902 1,960 Series T 389 231 Series FT 285 - Series I - 23 Redemption of redeemable units Series A

(1,471,415)

(1,295,102)

Series A1 (154,519) (287,980) Series D (373) - Series F (705,396) (236,763) Series F1 (17,437) (3,330) Series T (121,541) (100,915) Series FT (94,476) (51,707) Series I (452) -

(1,596,007) (1,470,447)


1,272,866

2,493,676 Series A1 202,048 353,733 Series D - - Series F 766,417 879,134 Series F1 28,139 44,674 Series T 149,696 194,416 Series FT 69,683 118,771 Series I - 452


73






1,906,513

(5,498,326)


50,515

(23,372)

Distribution Income (628,950) (949,084) Net realized (gains) losses on sale of investments (1,960,625) (2,007,290) Net realized (gains) losses on option contracts 1,247,085 (481,541) Change in unrealized (appreciation) depreciation in value of investments (905,235) 7,349,317 Change in unrealized (appreciation) depreciation on forward currency contracts (365,055) 564,834 Change in unrealized (appreciation) depreciation on option contracts (196,914) 35,648

Purchases of investments (14,593,626) (29,227,094) Proceeds from sales of investments 42,682,248 43,159,058 Net increase (decrease) in other assets and liabilities (190,630) 171,070 Net cash provided by (used in) operating activities 27,045,326 13,093,220


(108,456)

(400,158) Proceeds from redeemable units issued 1,111,439 3,407,133 Redemption of redeemable units (28,281,007) (22,921,932) Net cash provided by (used in) financing activities (27,278,024) (19,914,957)


(50,515)

23,372

Net decrease in cash (232,698) (6,821,737) Cash (Bank indebtedness) at beginning of year 646,770 7,445,135 Cash (Bank indebtedness) at end of year 363,557 646,770

Supplemental Information

Interest received - 12,563 Interest paid 926 - Dividends received, net of withholding taxes 226,322 652,101


74



As at December 31, 2019 Expiry Date Average Cost Fair Value $ $ SHARES EQUITIES [18.98%]

11,946

FINANCIALS [6.64%] Bank of America Corp.

399,232

546,350

4,450 Citigroup Inc. 404,505 461,648 2,960 Intercontinental Exchange Inc. 214,197 355,735 16,661 Manulife Financial Corp. 372,716 439,184 1,390,650 1,802,917

1,540

INFORMATION TECHNOLOGY [3.30%] CGI Inc.

85,093

167,352 2,210 Fiserv Inc. 292,030 331,834 1,940 Microsoft Corp. 341,192 397,276 718,315 896,462

88,940

ENERGY [2.51%] Gran Tierra Energy Inc.

371,790

150,309 21,936 Parex Resources Inc. 382,095 529,754 753,885 680,063

7,122

UTILITIES [1.70%] Brookfield Infrastructure Partners L.P.

294,461

461,933 294,461 461,933

2,167

HEALTH CARE [1.48%] Boston Scientific Corp.

123,368

127,247 68,562 Cansortium Inc. 180,530 39,174 1,594 Medtronic PLC 229,055 234,829 532,953 401,250

16,010

REAL ESTATE [1.40%] Brookfield Property Partners L.P.

452,665

379,917 452,665 379,917

694

CONSUMER DISCRETIONARY [1.23%] Alibaba Group Holding Ltd.

147,646

191,143 69,786 Roots Corp. 730,253 143,975 877,899 335,118

834

INDUSTRIALS [0.72%] Union Pacific Corp.

185,679

195,793 185,679 195,793 Total Equities 5,206,507 5,153,453

SHARES

WARRANTS [0.02%]

214,500

MATERIALS [0.01%] Sherritt International Corp.

Jan 25, 2021

1,363

3,218

1,363 3,218

112,500

HEALTH CARE [0.01%] Cansortium Inc.

Mar 21, 2021

14,939

2,191 14,939 2,191 Total Warrants 16,302 5,409

UNITS

FUNDS [77.51%]

140,700 iShares S&P/TSX 60 Index ETF 3,607,775 3,596,291 1,294,403 Ninepoint Diversified Bond Fund, Series I 13,882,295 14,013,072 8,200 SPDR S&P 500 ETF Trust 3,453,702 3,427,201 Total Funds 20,943,772 21,036,564 Transaction Costs (note 3) (34,931) - Total Investments [96.51%] 26,131,650 26,195,426 Total unrealized appreciation on forward currency contracts [0.38%] (Schedule 1) 101,917 Options purchased [0.54%] (Schedule 2) 147,440 Options written [-0.52%] (Schedule 2) (141,574) Cash and Other Assets Less Liabilities [3.09%] 840,000 Total Net Assets attributable to holders of redeemable units [100.00%] 27,143,209


75


Forward Currency Contracts (Schedule 1)

As at December 31, 2019 Unrealized Settlement Contract Cost Forward Value Appreciation

Bought ($) Sold ($) Date $(CAD) $(CAD) $(CAD) 1,667,167 Canadian Dollar (1,270,000) U.S Dollar 10-Jan-20 (1,667,167) (1,649,096) 18,071 1,709,787 Canadian Dollar (1,290,000) U.S Dollar 14-Feb-20 (1,709,787) (1,674,818) 34,969 2,383,797 Canadian Dollar (1,810,000) U.S Dollar 13-Mar-20 (2,383,797) (2,349,784) 34,013 1,534,110 Canadian Dollar (1,170,000) U.S Dollar 10-Jan-20 (1,534,110) (1,519,246) 14,864

Total 101,917



Options Purchased

Premium Fair Number of Expiration Strike Paid Value Option Details Option Type Contracts Date Price ($) $(CAD) $(CAD) iShares S&P/TSX 60 Index ETF Put 261 21-Feb-20 25.00 CAD 8,483 6,786 iShares S&P/TSX 60 Index ETF Put 258 20-Mar-20 24.75 CAD 7,160 8,901 iShares S&P/TSX 60 Index ETF Put 443 19-Jun-20 24.50 CAD 22,372 19,492 iShares S&P/TSX 60 Index ETF Put 445 18-Sep-20 24.00 CAD 26,923 20,693 SPDR S&P 500 ETF Trust Put 23 17-Apr-20 306.00 USD 17,665 15,441 SPDR S&P 500 ETF Trust Put 19 15-May-20 307.00 USD 16,836 16,457 SPDR S&P 500 ETF Trust Put 16 20-Nov-20 298.00 USD 25,546 23,737 SPDR S&P 500 ETF Trust Put 24 18-Dec-20 295.00 USD 38,936 35,933 Total 163,921 147,440 Options Written

Premium Fair Number of Expiration Strike Received Value Option Details Option Type Contracts Date Price ($) $(CAD) $(CAD) iShares S&P/TSX 60 Index ETF Put (261) 21-Feb-20 23.25 CAD (1,436) (1,304) iShares S&P/TSX 60 Index ETF Put (258) 20-Mar-20 23.00 CAD (1,935) (2,193) iShares S&P/TSX 60 Index ETF Put (443) 19-Jun-20 22.00 CAD (8,639) (7,310) iShares S&P/TSX 60 Index ETF Put (445) 18-Sep-20 21.00 CAD (8,789) (8,455) iShares S&P/TSX 60 Index ETF Call (261) 21-Feb-20 26.25 CAD (4,437) (1,566) iShares S&P/TSX 60 Index ETF Call (258) 20-Mar-20 26.50 CAD (2,451) (4,902) iShares S&P/TSX 60 Index ETF Call (443) 19-Jun-20 26.50 CAD (11,740) (10,632) iShares S&P/TSX 60 Index ETF Call (445) 18-Sep-20 27.00 CAD (13,128) (7,343) SPDR S&P 500 ETF Trust Put (23) 17-Apr-20 275.00 USD (5,858) (4,868) SPDR S&P 500 ETF Trust Put (19) 15-May-20 275.00 USD (6,012) (5,798) SPDR S&P 500 ETF Trust Put (16) 20-Nov-20 250.00 USD (8,578) (7,864) SPDR S&P 500 ETF Trust Put (24) 18-Dec-20 245.00 USD (13,000) (12,591) SPDR S&P 500 ETF Trust Call (23) 17-Apr-20 331.00 USD (10,551) (13,828) SPDR S&P 500 ETF Trust Call (19) 15-May-20 335.00 USD (10,336) (10,338) SPDR S&P 500 ETF Trust Call (16) 20-Nov-20 342.00 USD (15,613) (17,993) SPDR S&P 500 ETF Trust Call (24) 18-Dec-20 345.00 USD (21,276) (24,589) Total (143,779) (141,574) See accompanying notes which are an integral part of these financial statements

76

Ninepoint Enhanced Balanced Fund Notes to financial statements – Fund specific information December 31, 2019


Investment Objective The Fund seeks to achieve long-term capital growth and generate current income. The Fund invests primarily in Canadian equities, fixed-income securities of Canadian issuers, and foreign equities and fixed-income securities.

The Schedule of Investment Portfolio represents the securities held by the Fund as at December 31, 2019. Significant risks that are relevant to the Fund are discussed here. The Fund also invests in redeemable units of an investment fund managed by Ninepoint Partners LP (the “Underlying Fund”) and investments funds managed by third party investment managers to gain exposure to their investment objective and strategies. As a result, the Fund may be indirectly exposed to other price risk, currency risk, interest rate risk, credit risk and concentration risk from these holdings. As at December 31, 2019, 77.51% (December 31, 2018 – 60.60%) of the Fund’s Net Assets attributable to holders of redeemable shares were invested in units of the Underlying Fund and third party funds. Only direct exposure to significant risks that are relevant to the Fund are discussed here. For more information regarding the risks of the Underlying Fund and third party funds, refer to their respective financial statements. General information on risks and risk management is described in Note 6 of the Generic Notes.

Market Risk a) Other Price Risk As at December 31, 2019 and 2018, if a blended index of the S&P/TSX Composite Total Return Index, S&P 500 Total Return Index, Bloomberg Barclays Canadian Aggregate Bond Index and S&P Canada Treasury Bill Index, return were to fluctuate by 10%, with all other variables held constant, Net Assets attributable to holders of redeemable units would increase or decrease by the amounts shown in the table below. This is a measure based on the historical relationship of the Fund’s performance against the index noted above. The composition of this calculation contains several subjective components that, although reasonably estimated, could alter the resulting calculation should these components be modified based on revised assumptions.


Impact




of redeemable units

$ % $ % 868,583 3.20 2,680,548 6.20



Fair Value

Forward Currency

Contracts

Net Exposure


of redeemable units


of redeemable units U.S. Dollar

$ 7,240,238

$ (7,192,944)

$ 47,294

% 0.17

$ 473

December 31, 2018

% of Net Assets Impact on Net Assets Forward Currency attributable to holders attributable to holders Currency Fair Value Contracts Net Exposure of redeemable units of redeemable units U.S. Dollar

$ 9,686,393

$ (5,637,037)

$ 4,049,356

% 9.37

$ 40,494

77


Credit Risk As at December 31, 2019 and 2018, the Fund is exposed to credit risk from over-the-counter derivative contracts with counterparties. The credit risk is considered minimal as these counterparties have a minimum credit rating of AA- by Standard & Poor’s or equivalent.

Concentration Risk The table below summarizes the Fund’s concentration risk as a percentage of Net Assets attributable to holders of redeemable unit as at December 31, 2019 and 2018.


Funds Equities:

77.51 60.60

Financials 6.64 13.17 Information Technology 3.30 3.52 Energy 2.51 7.16 Utilities 1.70 3.15 Health Care 1.48 3.69 Real Estate 1.40 2.45 Consumer Discretionary 1.23 1.75 Consumer Staples – 0.59 Other 0.72 1.95

Warrants 0.02 0.02 Unrealized appreciation on forward currency contracts 0.38 (0.61) Options purchased 0.54 0.69 Options written (0.52) (0.07) Cash and Other Assets Less Liabilities 3.09 1.94 Total Net Assets attributable to holders of redeemable units 100.00 100.00



Equities 5,153,453 – – 5,153,453 Warrants 3,218 2,191 – 5,409 Funds 21,036,564 – – 21,036,564 Forward Currency Contracts – 101,917 – 101,917 Options Purchased 147,440 – – 147,440 Options Written (141,574) – – (141,574) 26,199,101 104,108 – 26,303,209


Equities 15,817,342 – 363,066 16,180,408 Warrants 9,600 67 – 9,667 Funds 26,202,313 – – 26,202,313 Forward Currency Contracts – (263,138) – (263,138) Options Purchased 299,626 – – 299,626 Options Written (28,915) – – (28,915) 42,299,966 (263,071) 363,066 42,399,961

78


During the years ended December 31, 2019 and 2018, there were no significant transfers between levels other than the transfers indicated below, which resulted from the public offering of the security.

The reconciliation of investments measured at fair value using unobservable inputs (Level 3) for the years ended December 31, 2019 and 2018, is presented as follows:

December 31, 2019 December 31, 2018 Equities Equities $ $

Balance, beginning of year 363,066 – Purchases – 348,871 Transfers in (out) (363,066) – Change in unrealized appreciation (depreciation) in the value of

investments

–

14,195 Balance, end of year – 363,066 Change in unrealized appreciation (depreciation) during the period for


–

14,195

The Fund’s Level 3 securities consisted of a private equity position. The Manager determined the fair value by utilizing a variety of valuation techniques such as the use of comparable recent transactions, discounted cash flows and other techniques used by market participants. As at December 31, 2019, the Fund did not hold Level 3 securities. As at December 31, 2018, the position was not significant to the Fund and any changes in reasonable possible assumptions used in the valuation would not have a significant impact to the Net Assets attributable to holders of redeemable units of the Fund.

Investments in Underlying Funds The Underlying Fund invests in a portfolio of assets to generate returns in the form of investment income and capital appreciation for its unitholders. The Underlying Fund finances its operations primarily through the issuance of redeemable units, which are puttable at the unitholder’s option and entitle the unitholder to a proportionate share of the Underlying Fund’s net assets. The Fund’s interest in the Underlying Fund, held in the form of redeemable units, is reported in its Schedule of Investments at fair value, which represent the Fund’s maximum exposure to these investments. Distributions earned from the Underlying Fund are included in “Distribution income” in the Statements of Comprehensive Income (Loss). The total realized gains and change in unrealized appreciation arising from the Underlying Fund included in the Statements of Comprehensive Income (Loss) for the year ended December 31, 2019 were $258,219 and $92,792, respectively (December 31, 2018 – realized gains of nil and change in unrealized depreciation of $658,472). The Fund does not provide any additional significant financial or other support to the Underlying Fund. The tables below set out the interest held by the Fund in the Underlying Fund.

December 31, 2019 Country of

establishment Total Net Assets Carrying amount and principal Ownership of Underlying included in Statement

Underlying Fund place of business interest Fund of Financial Position Ninepoint Diversified Bond Fund, Series I

Canada

% 3.22

$ 434,606,508

$ 14,013,072

14,013,072

December 31, 2018 Country of establishment and Carrying amount principal place of Ownership Total Net Assets of included in Statement Underlying Fund business interest Underlying Fund of Financial Position Ninepoint Diversified Bond Fund, Series I

Canada

% $ 6.41 393,181,476

$ 25,206,205

25,206,205

79


Restricted Cash and Investments (note 10) As at December 31, 2019 restricted cash and investments held for the Fund totaled $9,821,423 (December 31, 2018 – $696,207).


Series A Series A1 Series D Series F Series F1 Series I* Series FT Series T Up to 1.90% Up to 1.80% Up to 1.40% Up to 0.90% Up to 0.80% Negotiated by the

Unitholder Up to 0.90% Up to 1.90%



Related Party Broker Commissions Brokerage commissions paid by the Fund to Sightline Wealth Management (formerly, SP Wealth), a related party of Ninepoint Financial Group Inc., for brokerage services provided to the Fund for the year ended December 31, 2019 were $7,774 (December 31, 2018 – $30,201).



Securities loaned 299,344 – Collateral 314,692 – Collateral as a percentage of securities loaned (%) 105 –


December 31, 2019 December 31, 2018 The Bank of

New York RBC Investor

Services RBC Investor

Services Custodian Mellon Corp. Trust Trust $ $ $

Gross securities lending income 1,217 – – Securities lending charges (608) – – Net securities lending income 609 – – Withholding taxes on securities lending income – – – Net securities lending income received by the Fund 609 – – Securities lending charges as a percentage of gross securities lending income (%) 50 – –

Sharing Arrangements (note 13) During the year ended December 31, 2019, the Fund paid $7,468 out of the total transaction costs incurred to certain brokers for research provided to the portfolio manager (December 31, 2018 – $8,521).

80


Fund Merger During the year ended December 31, 2019, the Fund acquired all the assets of the fund listed below (the “Acquired Fund”), and in exchange, it issued shares to the Acquired Fund. In turn, those shares were distributed to the shareholders of the Acquired Fund. The Manager was the investment advisor to the Acquired Fund.




June 7, 2019 Ninepoint Enhanced Balanced Class $9,108,633 881,886


81

Ninepoint Global Infrastructure Fund



As at December 31 2019 2018 $ $


Investments (note 3, 5) 19,221,889 9,568,442 Cash 1,180,261 202,174 Dividends receivable 66,523 34,532 Prepaid expenses - 8,708 Total assets 20,468,673 9,813,856

Liabilities

Current liabilities

Unrealized depreciation on forward currency contracts (note 3, 5) - 82,428 Distribution payable to unitholders 39,762 - Redemptions payable 18,038 13,951 Accrued expenses 21,387 -




Series A 13,662,993 4,583,519 Series D 47,194 - Series F 6,679,299 3,691,641 Series I - 1,442,317


Series A 11.10 9.38 Series D 10.61 - Series F 11.59 9.80 Series I - 8.55 See accompanying notes which are an integral part of these financial statements




82





2019

2018

$ $

Income

Interest income for distribution purposes (note 3) 2,064 - Dividends (note 3) 558,147 254,602 Net realized gains (losses) on sale of investments 1,646,465 387,488 Net realized gains (losses) on forward currency contracts 34,924 (302,688) Change in unrealized appreciation (depreciation) in the value of investments 1,171,665 (761,091) Change in unrealized appreciation (depreciation) on forward currency contracts 82,427 (84,883) Net realized gains (losses) on foreign exchange 11,112 (31,871) Securities lending income 393 - Other income - 11,386 Total income (loss) 3,507,197 (527,057)


Management fees 303,761 178,845 Transaction costs (note 3, 13) 80,344 31,288 Administrative fees 77,106 26,721 Withholding taxes 36,661 33,613 Filing fees 29,233 23,545 Unitholder reporting costs 28,265 30,234 Legal fees 17,997 21,588 Audit fees 10,235 11,378 Independent Review Committee fees (note 14) 4,996 4,343 Custodial fees 4,780 3,910 Interest expense and bank charges 3,127 - Total expenses 596,505 365,465 Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations 2,910,692 (892,522)


Series A 1,742,954 (451,011) Series D 2,502 66 Series F 1,047,056 (347,358) Series I 118,180 (94,219)


Series A 1,026,366 533,754 Series D 2,873 162 Series F 506,984 466,316 Series I 159,248 204,540


Series A 1.70 (0.84) Series D 0.87 0.41 Series F 2.07 (0.74) Series I 0.74 (0.46)


83






4,583,519

6,553,210

Series D - - Series F 3,691,641 4,425,990 Series I 1,442,317 2,421,593

9,717,477 13,400,793


1,742,954

(451,011) Series D 2,502 66 Series F 1,047,056 (347,358) Series I 118,180 (94,219)

2,910,692 (892,522)


-

- Series D (191) - Series F (22,688) - Series I - - From net capital gains on investments Series A

(428,084)

-

Series D (1,908) - Series F (271,151) - Series I - - From return of capital Series A

(7,480)

(255,293)

Series D - (24) Series F - (232,114) Series I (5,107) (86,181)

(736,609) (573,612)



11,408,427

470,011

Series D 46,886 3,350 Series F 3,902,757 1,708,986 Series I - 26,999 Reinvestments of distributions to holders of redeemable units Series A

314,555

164,910

Series D 2,055 9 Series F 203,199 103,050 Series I 5,107 86,181 Redemption of redeemable units Series A

(3,950,898)

(1,898,308)

Series D (2,150) (3,401) Series F (1,871,515) (1,966,913) Series I (1,560,497) (912,056)

8,497,926 (2,217,182)


9,079,474

(1,969,691) Series D 47,194 - Series F 2,987,658 (734,349) Series I (1,442,317) (979,276)

10,672,009 (3,683,316)


13,662,993

4,583,519 Series D 47,194 - Series F 6,679,299 3,691,641 Series I - 1,442,317


84





488,436

611,186 Series D - - Series F 376,515 399,472 Series I 168,690 253,464

1,033,641 1,264,122



1,086,386

44,141

Series D 4,453 334 Series F 347,227 154,899 Series I - 3,043 Reinvestments of distributions to holders of redeemable units Series A

29,028

15,942

Series D 193 1 Series F 17,798 9,603 Series I 568 9,235 Redemption of redeemable units Series A

(372,479)

(182,833)

Series D (200) (335) Series F (165,473) (187,459) Series I (169,258) (97,052)

778,243 (230,481)


1,231,371

488,436 Series D 4,446 - Series F 576,067 376,515 Series I - 168,690


85






2,910,692

(892,522)


(31,103)

2,602

Net realized (gains) losses on sale of investments (1,646,465) (387,488) Change in unrealized (appreciation) depreciation in value of investments (1,171,665) 761,091 Change in unrealized (appreciation) depreciation on forward currency contracts (82,427) 84,883

Purchases of investments (57,049,111) (13,696,136) Proceeds from sales of investments 37,688,840 17,205,530 Net increase (decrease) in other assets and liabilities (1,896) 11,001 Net cash provided by (used in) operating activities (19,383,135) 3,088,961


(171,931)

(219,462) Proceeds from redeemable units issued 26,992,594 2,104,791 Redemption of redeemable units (6,490,544) (4,692,575) Net cash provided by (used in) financing activities 20,330,119 (2,807,246)


31,103

(2,602)

Net increase (decrease) in cash 946,984 281,715 Cash (Bank indebtedness) at beginning of year 202,174 (76,939) Cash (Bank indebtedness) at end of year 1,180,261 202,174 Supplemental Information Interest received

2,064

- Interest paid 3,127 - Dividends received, net of withholding taxes 489,495 252,205


86



As at December 31, 2019 Average Cost Fair Value $ $

SHARES

37,221

EQUITIES [94.27%] UTILITIES [35.41%] Algonquin Power & Utilities Corp.

627,769

683,750 5,044 American Electric Power Company, Inc. 611,279 619,030 28,352 Boralex Inc. 534,686 693,490 63,805 Enel SpA 621,285 657,256 31,752 Engie SA 629,537 665,995 9,862 Firstenergy Corp. 529,942 622,386 2,183 Nextera Energy Inc. 454,440 686,459 22,456 Northland Power Inc. 618,959 610,803 12,118 NRG Energy Inc. 625,720 625,499 3,326 Sempra Energy 541,253 654,239 20,255 Veolia Environnement SA 598,040 699,522 6,392,910 7,218,429

2,026

INDUSTRIALS [19.70%] Canadian Pacific Railway Ltd.

622,426

670,667 4,809 Eiffage SA 644,073 714,484 16,753 Ferrovial SA 487,680 658,129 3,499 Kansas City Southern 577,995 695,902 2,671 Union Pacific Corp. 626,093 627,057 4,518 Vinci SA 566,662 651,507 3,524,929 4,017,746

12,559

ENERGY [15.98%] Enbridge Inc.

628,327

648,421 25,200 Gibson Energy Inc. 616,843 670,068 6,495 ONEOK Inc. 572,865 638,207 13,597 Parkland Fuel Corp. 618,007 648,713 9,453 TC Energy Corp. 635,178 653,769 3,071,220 3,259,178

2,397

REAL ESTATE [13.85%] American Tower Corp.

694,208

715,343 3,845 Crown Castle International Corp. 703,504 709,744 1,079 Equinix Inc. 691,207 817,843 5,016 Prologis Inc. 500,690 580,616 2,589,609 2,823,546

825

INFORMATION TECHNOLOGY [6.54%] Mastercard Inc.

280,309

319,880 3,407 Microsoft Corp. 502,268 697,690 1,294 Visa Inc. 286,264 315,732 1,068,841 1,333,302

172,106

COMMUNICATION SERVICES [2.79%] BT Group PLC

632,608

569,688 632,608 569,688 Total Equities 17,280,117 19,221,889 Transaction Costs (note 3) (20,659) - Total Investments [94.27%] 17,259,458 19,221,889 Cash and Other Assets Less Liabilities [5.73%] 1,167,597 Total Net Assets attributable to holders of redeemable units [100.00%] 20,389,486


87

Ninepoint Global Infrastructure Fund Notes to financial statements – Fund specific information December 31, 2019


Investment Objective The investment objective of the Fund is primarily to maximize risk adjusted long-term returns and secondarily to achieve a high level of income. The Fund focuses on achieving growth of capital through securities selection and pursues a long-term investment program with the aim of generating capital gains. The Fund seeks to provide a moderate level of volatility and a low degree of correlation to other asset classes through diversifying across a relatively concentrated group of global infrastructure stocks.


Market Risk a) Other Price Risk As at December 31, 2019 and 2018, if the MSCI World Core Infrastructure Index (CAD) were to fluctuate by 10%, with all other variables held constant, Net Assets attributable to holders of redeemable units would increase or decrease by the amounts shown in the table below. This is a measure based on the historical relationship of the Fund’s performance against the noted index. The composition of this calculation contains several subjective components that, although reasonably estimated, could alter the resulting estimate should these components be modified based on revised assumptions.


Impact




of redeemable units

$ % $ % 1,631,159 8.00 757,963 7.80



Fair Value

Forward Currency

Contracts

Net Exposure


of redeemable units


of redeemable units U.S. Dollar

$ 9,359,736

$ –

$ 9,359,736

% 45.90

$ 93,597

Euro 4,059,781 – 4,059,781 19.91 40,598 Pound Sterling 583,366 – 583,366 2.86 5,834 Australian Dollar 1,277 – 1,277 0.01 13 14,004,160 – 14,004,160 68.68 140,042

December 31, 2018


$ $ $ % $ U.S. Dollar 7,180,601 (3,835,369) 3,345,232 34.43 33,452 Euro 1,519,096 – 1,519,096 15.63 15,191 Pound Sterling 390 – 390 0.00 4 8,700,087 (3,835,369) 4,864,718 50.06 48,647

88



Credit Risk As at December 31, 2019, the Fund did not have a significant exposure to credit risk. As at December 31, 2018, the Fund was exposed to credit risk from over-the-counter derivative contracts with counterparties. The credit risk was considered minimal as these counterparties have a minimum credit rating of AA- by Standard & Poor’s or equivalent.


December 31, 2019 December 31, 2018 % % Equities:

Utilities 35.41 32.37 Industrials 19.70 23.79 Energy 15.98 11.16 Real Estate 13.85 13.58 Information Technology 6.54 7.34 Communication Services 2.79 6.66 Financials – 3.57


The Fund’s investment portfolio is concentrated in the following geographic segments as at December 31, 2019 and 2018 .

December 31, 2019 December 31, 2018 % % United States 45.74 69.06 Canada 25.89 12.01 France 13.40 3.65 Spain 3.23 10.37 Italy 3.22 3.38 United Kingdom 2.79 – Unrealized depreciation on forward currency contracts – (0.85) Cash and Other Assets Less Liabilities 5.73 2.38 Total Net Assets attributable to holders of redeemable units 100.00 100.00

89




$ 19,221,889

$ –

$ –

$ 19,221,889

19,221,889 – – 19,221,889

December 31, 2018 Level 1 Level 2 Level 3 Total $ $ $ $ Equities 9,568,442 – – 9,568,442 Forward Currency Contracts – 82,428 – 82,428 9,568,442 82,428 – 9,650,870



Series A Series D Series F Series I*

Up to 2.00% Up to 1.50% Up to 1.00% Negotiated by the Unitholder



Related Party Holdings Ninepoint Financial Group, the parent company of the Manager, and its respective subsidiaries, held the following investments in the Fund as at December 31, 2019 and 2018.

December 31, 2019 December 31, 2018 Shares held Series A

196

–

Series F 204 – Value of shares held ($) 4,597 –

90










Gross securities lending income 786 – – Securities lending charges (393) – – Net securities lending income 393 – – Withholding taxes on securities lending income – – – Net securities lending income received by the Fund 393 – – Securities lending charges as a percentage of gross securities lending income (%) 50 – –


Fund Merger During the year ended December 31, 2019, the Fund acquired all the assets of the funds listed below (the “Acquired Funds”), and in exchange, it issued shares to the Acquired Funds which in turn were distributed to the shareholders of the Acquired Funds. The Manager was the investment advisor to the Acquired Funds.




March 4, 2019 Ninepoint Real Asset Class $4,982,286 485,752 June 7, 2019 Ninepoint Focused U.S. Dividend Class $7,542,667 685,592


91

Ninepoint Global Real Estate Fund



As at December 31 2019 2018 $ $


Investments (note 3, 5) 7,431,079 11,068,244 Cash 468,979 255,936 Subscriptions receivable 300 300 Dividends receivable 42,149 55,062 Total assets 7,942,507 11,379,542

Liabilities

Current liabilities

Unrealized depreciation on forward currency contracts (note 3, 5) - 81,548 Distribution payable to unitholders 209,457 - Accrued expenses 1,409 3,096




Series A 4,564,216 4,080,923 Series D 152,495 - Series F 2,713,150 5,385,047 Series I - 1,529,272 Series FT - 16,634 Series T 301,780 283,022


Series A 11.40 10.69 Series D 9.26 - Series F 12.12 11.08 Series I - 11.19 Series FT - 9.36 Series T 9.86 9.25





92





2019

2018

$ $

Income

Interest income for distribution purposes (note 3) 11,852 47,229 Dividends (note 3) 268,732 710,183 Net realized gains (losses) on sale of investments 1,575,465 134,746 Net realized gains (losses) on forward currency contracts 29,948 (256,539) Change in unrealized appreciation (depreciation) in the value of investments 2,894 (476,433) Change in unrealized appreciation (depreciation) on forward currency contracts 81,548 (81,548) Net realized gains (losses) on foreign exchange 54,885 (36,416) Securities lending income 132 - Other income 3,732 12 Total income (loss) 2,029,188 41,234


Management fees 159,152 190,086 Transaction costs (note 3, 13) 67,716 43,569 Administrative fees 37,469 61,618 Withholding taxes 36,441 131,327 Unitholder reporting costs 22,322 37,599 Filing fees 19,474 18,766 Legal fees 16,735 17,259 Audit fees 7,201 8,696 Independent Review Committee fees (note 14) 4,400 4,585 Custodial fees 3,746 4,708 Interest expense and bank charges 516 - Total Expenses 375,172 518,213 Expenses waived/absorbed by the Manager (note 12) (65,290) (82,272) Net Expenses 309,882 435,941 Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations 1,719,306 (394,707)


Series A 742,791 (199,492) Series D 2,849 - Series F 812,639 (153,858) Series I 107,884 (27,838) Series FT 1,986 (571) Series T 51,157 (12,948)


Series A 394,449 411,265 Series D 6,157 - Series F 320,000 613,682 Series I 69,701 167,631 Series FT 1,744 1,778 Series T 30,603 30,603


Series A 1.88 (0.49) Series D 0.46 - Series F 2.54 (0.25) Series I 1.55 (0.17) Series FT 1.14 (0.32) Series T 1.67 (0.42)


93






4,080,923

5,267,716

Series D - - Series F 5,385,047 6,712,106 Series I 1,529,272 2,512,182 Series FT 16,634 18,303 Series T 283,022 314,862

11,294,898 14,825,169


742,791

(199,492) Series D 2,849 - Series F 812,639 (153,858) Series I 107,884 (27,838) Series FT 1,986 (571) Series T 51,157 (12,948)

1,719,306 (394,707)


(21,375)

(118,472) Series D (3,798) - Series F (20,618) (180,115) Series I - (48,581) Series FT - (604) Series T (1,886) (10,395) From net capital gains on investments Series A

(450,034)

-

Series D (14,604) - Series F (265,346) - Series I - - Series FT - - Series T (30,513) - From return of capital Series A

-

(96,852)

Series D - - Series F - (147,247) Series I (5,496) (39,716) Series FT (332) (494) Series T - (8,497)

(814,002) (650,973)



1,372,709

689,953

Series D 168,099 - Series F 171,391 1,974,613 Series I 17,618 28,129 Series FT - - Series T - - Reinvestments of distributions to holders of redeemable units Series A

260,159

124,022

Series D 18,282 - Series F 142,944 75,407 Series I 5,440 88,030 Series FT - - Series T - - Redemption of redeemable units Series A

(1,420,957)

(1,585,952)

Series D (18,333) - Series F (3,512,907) (2,895,859) Series I (1,654,718) (982,934) Series FT (18,288) - Series T - -

(4,468,561) (2,484,591)

94






483,293

(1,186,793)

Series D 152,495 - Series F (2,671,897) (1,327,059) Series I (1,529,272) (982,910) Series FT (16,634) (1,669) Series T 18,758 (31,840)

(3,563,257) (3,530,271)


4,564,216

4,080,923 Series D 152,495 - Series F 2,713,150 5,385,047 Series I - 1,529,272 Series FT - 16,634 Series T 301,780 283,022


95





381,764

449,489 Series D - - Series F 485,957 558,801 Series I 136,723 210,292 Series FT 1,778 1,778 Series T 30,603 30,603

1,036,825 1,250,963



115,241

60,209

Series D 16,300 - Series F 13,795 168,249 Series I 1,465 2,426 Series FT - - Series T - - Reinvestments of distributions to holders of redeemable units Series A

22,482

10,910

Series D 1,954 - Series F 11,702 6,438 Series I 459 7,489 Series FT - - Series T - - Redemption of redeemable units Series A

(119,255)

(138,844)

Series D (1,783) - Series F (287,527) (247,531) Series I (138,647) (83,484) Series FT (1,778) - Series T - -

(365,592) (214,138)


400,232

381,764 Series D 16,471 - Series F 223,927 485,957 Series I - 136,723 Series FT - 1,778 Series T 30,603 30,603

671,233 1,036,825 See accompanying notes which are an integral part of these financial statements

96






1,719,306

(394,707)


(44,706)

(4,950)

Net realized (gains) losses on sale of investments (1,575,465) (134,746) Change in unrealized (appreciation) depreciation in value of investments (2,894) 476,433 Change in unrealized (appreciation) depreciation on forward currency contracts (81,548) 81,548

Purchases of investments (22,947,530) (15,524,350) Proceeds from sale of investments 28,163,054 18,033,165 Net increase (decrease) in other assets and liabilities 11,226 (11,799) Net cash provided by (used in) operating activities 5,241,443 2,520,594


(177,720)

(363,514) Proceeds from redeemable units issued 1,631,933 2,472,762 Redemption of redeemable units (6,527,319) (5,220,909) Net cash provided by (used in) financing activities (5,073,106) (3,111,661)


44,706

4,950

Net increase (decrease) in cash 168,337 (591,067) Cash (Bank indebtedness) at beginning of year 255,936 842,053 Cash (Bank indebtedness) at end of year 468,979 255,936 Supplemental Information Interest received

11,852

47,229 Interest paid 516 - Dividends received, net of withholding taxes 245,204 563,446


97



As at December 31, 2019 Average Cost Fair Value $ $ SHARES EQUITIES [96.11%] INDUSTRIAL REITS [22.55%]

21,080 Dream Industrial Real Estate Investment Trust 230,409 276,991 5,387 Duke Realty Corp. 218,907 242,527 3,681 Granite Real Estate Investment Trust 234,618 242,872 2,180 Prologis Inc. 155,572 252,341 4,030 Rexford Industrial Realty Inc. 220,378 238,998 5,904 STAG Industrial Inc. 234,222 242,036 3,523 Terreno Realty Corp. 234,699 247,679 1,528,805 1,743,444

RESIDENTIAL REITS [17.68%]

7,144 American Homes 4 Rent 226,979 243,146 4,488 Canadian Apartment Properties Real Estate Investment Trust 238,650 237,909 20,107 InterRent Real Estate Investment Trust 282,839 314,474 6,217 Invitation Homes Inc. 217,673 241,950 14,223 Minto Apartment Real Estate Investment Trust 293,421 329,262 1,259,562 1,366,741

RETAIL REITS [15.97%]

1,166 Alexandria Real Estate Equities Inc. 219,403 244,650 4,508 Allied Properties Real Estate Investment Trust 184,412 234,732 5,405 Hudson Pacific Properties Inc. 241,607 264,253 2,278 Kilroy Realty Corp. 235,623 248,184 9,074 RioCan Real Estate Investment Trust 243,701 242,820 1,124,746 1,234,639

927

SPECIALIZED REITS [14.64%] American Tower Corp.

268,518

276,647 1,487 Crown Castle International Corp. 272,105 274,484 419 Equinix Inc. 262,170 317,587 7,929 VICI Properties Inc. 252,482 263,068 1,055,275 1,131,786

OFFICE REITS [6.35%]

4,758 Cousins Properties Inc. 242,564 252,949 1,992 SL Green Realty Corp. 236,835 237,667 479,399 490,616

HEALTHCARE REITS [6.26%]

4,158 Community Healthcare Trust Inc. 205,895 231,417 9,228 Medical Properties Trust Inc. 238,043 252,962 443,938 484,379

DIVERSIFIED REITS [5.98%]

4,788 STORE Capital Corp. 209,429 231,538 21,734 Tricon Capital Group Inc. 240,274 231,032 449,703 462,570

REAL ESTATE REITS [3.36%]

16,105 CT Real Estate Investment Trust 242,699 259,935 242,699 259,935

REAL ESTATE OPERATING COMPANIES [3.32%]

6,201 TLG Immobilien AG 242,780 256,969 242,780 256,969 Total Equities 6,826,907 7,431,079 Transaction Costs (note 3) (10,115) - Total Investments [96.11%] 6,816,792 7,431,079 Cash and Other Assets Less Liabilities [3.89%] 300,562 Total Net Assets attributable to holders of redeemable units [100.00%] 7,731,641


98

Ninepoint Global Real Estate Fund Notes to financial statements – Fund specific information December 31, 2019


Investment Objective The objective of the Fund is to provide stable monthly cash distribution and long-term total return through capital appreciation by providing exposure to the global real estate securities market. The Fund invests primarily in real estate investment trusts (“REITs”), equity-based securities of companies in the global real estate sectors (residential and commercial) and structured products that hold real estate related investments.


Market Risk a) Other Price Risk As at December 31, 2019 and 2018, if the MSCI World IMI Core Real Estate Index (CAD) were to fluctuate by 10%, with all other variables held constant, Net Assets attributable to holders of redeemable units would increase or decrease by the amounts shown in the table below. This is a measure based on the historical relationship of the Fund’s performance against the index noted above. The composition of this calculation contains several subjective components that, although reasonably estimated, could alter the resulting estimate should these components be modified based on revised assumptions.


Impact




of redeemable units

$ % $ % 788,627 10.20 1,095,605 9.70


December 31, 2019 % of Net Assets Impact on Net Assets Forward Currency attributable to holders attributable to holders Currency Fair Value Contracts Net Exposure of redeemable units of redeemable units

$ $ $ % $ U.S. Dollar 4,822,519 – 4,822,519 62.37 48,225 Euro 275,505 – 275,505 3.56 2,755 5,098,024 – 5,098,024 65.93 50,980

December 31, 2018


$ $ $ % $ U.S. Dollar 7,142,777 (3,794,422) 3,348,355 29.65 33,484 Euro 1,203,126 – 1,203,126 10.65 12,031 8,345,903 (3,794,422) 4,551,481 40.30 45,515

c) Interest Rate Risk Disclosure As at December 31, 2019 and 2018, the Fund did not have a significant exposure to interest rate risk.

99


Credit Risk As at December 31, 2019, the Fund did not have significant exposure to credit risk. As at December 31, 2018, the Fund was exposed to credit risk from over-the-counter derivative contracts with counterparties. The credit risk was considered minimal as these counterparties have a minimum credit rating of AA- by Standard & Poor’s or equivalent.


December 31, 2019 December 31, 2018 % % Equities:

Industrial REITs 22.55 14.49 Residential REITs 17.68 24.51 Retail REITs 15.97 19.74 Specialized REITs 14.64 14.96 Office REITs 6.35 3.53 Healthcare REITs 6.26 3.53 Diversified REITs 5.98 3.48 Real Estate REITs 3.36 – Real Estate Operating Companies 3.32 7.07 Communication Services – 3.44 Hotels Restaurants & Leisure – 3.24



December 31, 2019 December 31, 2018 % % United States 62.13 56.64 Canada 30.66 30.84 Germany 3.32 3.44 Luxembourg – 3.63 Spain – 3.44 Unrealized depreciation on forward currency contracts – (0.72) Cash and Other Assets Less Liabilities 3.89 2.73 Total Net Assets attributable to holders of redeemable units 100.00 100.00



$ 7,431,079

$ –

$ –

$ 7,431,079

7,431,079 – – 7,431,079

100


December 31, 2018 Level 1 Level 2 Level 3 Total

$ $ $ $ Equities 11,068,244 – – 11,068,244 Forward Currency Contracts – (81,548) – (81,548) 11,068,244 (81,548) – 10,986,696



Series A Series D Series F Series I* Series FT Series T Up to 2.00% Up to 1.50% Up to 1.00% Negotiated by the

Unitholder Up to 1.00% Up to 2.00%

*The management fee for Series I units of the Fund is negotiated by the unitholder and may be paid directly by the Fund or by the unitholder.

Related Party Holdings Ninepoint Financial Group, the parent company of the Manager and its respective subsidiaries, held the following investments in the Fund as at December 31, 2019 and 2018.

December 31, 2019 December 31, 2018 Units held Class A

104

94

Value of units held ($) 1,264 1,003










Gross securities lending income 263 – – Securities lending charges (131) – – Net securities lending income 132 – – Withholding taxes on securities lending income – – – Net securities lending income received by the Fund 132 – – Securities lending charges as a percentage of gross securities lending income (%) 50 – –

101




102

Ninepoint Alternative Health Fund



As at December 31 2019 2018 $ $


Investments (note 3, 5, 10) 50,512,623 36,942,434 Cash (note 10) 988,469 3,011,387 Due from broker - 337,218 Subscriptions receivable 98,169 338,108 Broker Margin (note 10) 2,898,736 - Dividends receivable 37,960 5,808 Interest receivable 41,688 - Total assets 54,577,645 40,634,955

Liabilities

Current liabilities

Options written (note 3, 5) 37,620 35,108 Due to broker 90,109 583,183 Redemptions payable 381,344 227,345 Accrued expenses 73,561 31,485




Series A 25,745,846 18,781,068 Series D 1,162,689 1,064,724 Series F 27,086,456 19,900,103 Series I 10 11,929 Series PTF 10 10


Series A 14.73 15.79 Series D 9.67 10.30 Series F 14.91 15.80 Series I 10.00 10.70 Series PTF 10.00 10.00





103





2019

2018

$ $

Income

Interest income for distribution purposes (note 3) 129,708 16,160 Distribution income (note 3) 72,880 - Dividends (note 3) 353,501 136,909 Net realized gains (losses) on sale of investments (3,229,357) 2,095,678 Net realized gains (losses) on option contracts 1,779,651 571,601 Change in unrealized appreciation (depreciation) in the value of investments (6,404,965) (1,441,461) Change in unrealized appreciation (depreciation) on option contracts 16,904 (170) Net realized gains (losses) on foreign exchange (48,820) 42,590 Securities lending income 391,368 - Other income 593 5,324 Total income (loss) (6,938,537) 1,426,631


Management fees 1,200,162 407,229 Transaction costs (note 3) 133,046 82,872 Unitholder reporting costs 120,489 47,654 Administrative fees 100,124 19,535 Withholding taxes 44,213 15,575 Legal fees 38,511 65,279 Filing fees 20,658 10,566 Audit fees 12,771 8,696 Custodial fees 12,031 7,316 Independent Review Committee fees (note 14) 4,929 2,271 Total expenses 1,686,934 666,993 Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations (8,625,471) 759,638


Series A (4,328,218) (91,833) Series D (206,482) (18,127) Series F (4,094,185) 870,365 Series I 3,414 (767) Series PTF - -


Series A 1,690,777 628,108 Series D 133,173 56,774 Series F 1,692,654 714,594 Series I 229 1,088 Series PTF 1 1


Series A (2.56) (0.15) Series D (1.55) (0.32) Series F (2.42) 1.22 Series I 14.91 (0.70) Series PTF - -


104






18,781,068

2,642,577

Series D 1,064,724 - Series F 19,900,103 5,038,653

Series I 11,929 - Series PTF 10 - 39,757,834 7,681,230


(4,328,218)

(91,833) Series D (206,482) (18,127) Series F (4,094,185) 870,365 Series I 3,414 (767) Series PTF - -

(8,625,471) 759,638


-

(749,986) Series D - (53,135) Series F - (951,879) Series I - (696) Series PTF - -

- (1,755,696)



23,293,293

22,530,778

Series D 973,830 1,220,663 Series F 19,999,433 17,847,438 Series I 14 17,905 Series PTF - 10 Reinvestments of distributions to holders of redeemable units Series A

-

707,173

Series D - 52,867 Series F - 564,427 Series I - 696 Series PTF - - Redemption of redeemable units Series A

(12,000,297)

(6,257,641)

Series D (669,383) (137,544) Series F (8,718,895) (3,468,901) Series I (15,347) (5,209) Series PTF - -

22,862,648 33,072,662


6,964,778

16,138,491 Series D 97,965 1,064,724 Series F 7,186,353 14,861,450 Series I (11,919) 11,929 Series PTF - 10

14,237,177 32,076,604


25,745,846

18,781,068 Series D 1,162,689 1,064,724 Series F 27,086,456 19,900,103 Series I 10 11,929 Series PTF 10 10


105





1,189,414

187,684 Series D 103,351 - Series F 1,259,137 357,172

Series I 1,115 - Series PTF 1 - 2,553,018 544,856



1,224,772

1,322,777

Series D 75,907 110,019 Series F 1,057,284 1,064,499 Series I 1 1,524 Series PTF - 1 Reinvestments of distributions to holders of redeemable units Series A

-

44,786

Series D - 5,132 Series F - 35,713 Series I - 65 Series PTF - - Redemption of redeemable units Series A

(666,314)

(365,833)

Series D (59,054) (11,800) Series F (499,224) (198,247) Series I (1,115) (474) Series PTF - -

1,132,257 2,008,162


1,747,872

1,189,414 Series D 120,204 103,351 Series F 1,817,197 1,259,137 Series I 1 1,115 Series PTF 1 1


106






(8,625,471)

759,638


82,022

(55,239)

Distribution Income (72,880) - Net realized (gains) losses on sale of investments 3,229,357 (2,095,678) Net realized (gains) losses on option contracts (1,779,651) (571,601) Change in unrealized (appreciation) depreciation in value of investments 6,404,965 1,441,461 Change in unrealized (appreciation) depreciation on option contracts (16,904) 170

Purchases of investments (107,547,383) (60,907,185) Proceeds from sales of investments 86,058,963 31,520,616 Net increase (decrease) in other assets and liabilities (2,930,500) 21,004 Net cash provided by (used in) operating activities (25,197,482) (29,886,814)


-

(430,533) Proceeds from redeemable units issued 44,504,747 41,299,578 Redemption of redeemable units (21,248,161) (9,695,393) Net cash provided by (used in) financing activities 23,256,586 31,173,652


(82,022)

55,239

Net increase (decrease) in cash (1,940,896) 1,286,838 Cash (Bank Indebtedness) at beginning of year 3,011,387 1,669,310 Cash (Bank Indebtedness) at end of year 988,469 3,011,387 Supplemental Information Interest received

88,020

16,160 Dividends received, net of withholding taxes 277,136 117,095


107


Schedule of Investment Portfolio As at December 31, 2019

Maturity/Expiry Date

Average Cost

Fair Value $ $

PAR VALUE SHORT-TERM INVESTMENTS [3.70%] 2,000,000 Bank of Montreal, 0.000%

Jan 10, 2020

1,998,964

1,999,020

Total Short-Term Investments 1,998,964 1,999,020

PAR VALUE*

LOANS [1.40%]

300,000 Green Peak Innovations LLC, Convertible, 8.000% ** Mar 4, 2021 394,575 354,504 375,000 Leef Holdings Inc., 9.000% ** Jun 6, 2022 501,413 389,078 Total Loans 895,988 743,582

SHARES

EQUITIES [81.52%]

96,100

CANNABIS [42.89%] Akumin Inc.

495,754

461,724

30,500 Aphria Inc. 268,277 206,790 USD 80,300 Aphria Inc. 819,141 544,308

60,700 Charlotte's Web Holdings Inc. 841,162 603,358 67,432 Columbia Care Inc. 619,750 222,526 105,000 Cresco Labs Inc. 949,416 937,650 384,000 Curaleaf Holdings Inc. 3,620,790 3,141,120 308,300 Green Thumb Industries Inc. 4,646,166 3,943,157 13,000 GW Pharmaceuticals PLC 2,657,370 1,765,093 158,000 Harvest Health & Recreation Inc. 1,291,988 655,700 1,000,000 Hemp Hydrate International Holdings Ltd.** 500,000 300,000 380,952 IM Cannabis Corp. 400,000 129,524 240,000 MediPharm Labs Corp. 1,133,242 926,400 90,000 Molecular Science Corp.** 202,500 99,000 300,000 OG DNA Genetics Inc.** 400,305 233,739 356,200 OrganiGram Holdings Inc. 2,029,902 1,136,278 94,100 Planet 13 Holdings Inc. 185,756 241,837 400,000 Segra International Corp.** 300,000 210,000 434,783 StillCanna Inc. 500,000 106,522 15,000 Tilray Inc. 398,689 333,662 144,900 Trulieve Cannabis Corp. 2,132,822 2,227,113 235,210 Urban-Gro Inc. 765,664 389,426 475,000 Valens Groworks Corp. 2,021,712 1,629,250

USD 27,800 Village Farms International Inc. 383,638 224,901 256,700 Village Farms International Inc. 3,214,233 2,071,569 250,000 ZYUS Life Sciences Ltd.** 250,000 970,000 30,778,277 23,710,647

13,400

PHARMACEUTICALS & HEALTH TECHNOLOGY [21.81%] Abbott Laboratories

1,205,587

1,511,414 18,000 Gilead Sciences Inc. 1,602,826 1,518,836 1,400 Intuitive Surgical Inc. 1,029,473 1,074,693 8,000 Johnson & Johnson 1,504,768 1,515,356 15,600 Merck & Company Inc. 1,472,266 1,842,409 29,500 Pfizer Inc. 1,565,229 1,500,877 8,000 Procter & Gamble Co. (The) 1,135,897 1,297,511 33,000 Wright Medical Group 1,222,879 1,306,134 10,738,925 11,567,230

32,000

OTHER WELLNESS [13.26%] Americold Realty Trust

1,525,165

1,456,869 98,800 Chartwell Retirement Residences Trust 1,439,168 1,373,320 14,000 Innovative Industrial Properties Inc. 1,730,782 1,379,294 10,000 Maple Leaf Foods Inc. 257,674 258,800 9,500 Planet Fitness Inc. 841,781 921,269 4,300 UnitedHealth Group Inc. 1,469,790 1,641,515 7,264,360 7,031,067

73,200

ORGANICS, SUPPLEMENTS & NEUTRACEUTICALS [3.56%] Jamieson Wellness Inc.

1,544,461

1,884,900 1,544,461 1,884,900 Total Equities 50,326,023 43,223,844

SHARES

WARRANTS [0.37%]

26,000

CANNABIS [0.37%] Columbia Care Inc.

Apr 26, 2024

51,282

8,255

12,500 Cresco Labs Inc. Sep 24, 2022 - 14,750 75,000 Green Growth Brands Inc. Aug 22, 2022 - 20,371 37,500 Green Organic Dutch Holdings Ltd. May 2, 2020 - 1,664 190,476 IM Cannabis Corp. Oct 10, 2021 - 32,713 2,000 Medreleaf Corp. Jan 31, 2020 - 6 112,500 Planet 13 Holdings Inc. Dec 4, 2021 25,862 22,500 80,000 SLANG Worldwide Inc. Jan 24, 2021 60,800 2,741 217,391 StillCanna Inc. May 6, 2020 - 1 114,103 Urban-Gro Inc. May 29, 2021 - 89,066 76,388 Xanthic Biopharma Inc. Nov 9, 2020 - 10,500 137,944 202,567 Total Warrants 137,944 202,567

108



As at December 31, 2019 Average Cost Fair Value $ $

UNITS FUNDS [6.36%] 337,695 Ninepoint High Interest Savings Fund, Series I 3,377,998 3,373,610

Total Funds 3,377,998 3,373,610 Transaction Costs (note 3) (27,931) - Total Investments [93.43%] 56,708,986 50,512,623 Options Written [-0.07%] (Schedule 1) (37,620) Cash and Other Assets Less Liabilities [6.64%] 3,520,008 Total Net Assets attributable to holders of redeemable units [100.00%] 53,995,011

**Private Company


109




Options Written

Premium Fair

Option Details

Option Type

Number of Contracts

Expiration Date

Strike Price ($)

Received $(CAD)

Value $(CAD)

GW Pharmaceuticals PLC Call (25) 17-Jan-20 115.00 USD (8,783) (4,058) Innovative Industrial Properties Inc. Call (30) 17-Jan-20 75.00 USD (10,376) (13,245) Intuitive Surgical Inc. Put (10) 3-Jan-20 582.50 USD (4,710) (1,766) Maple Leaf Foods Inc. Put (125) 17-Jan-20 25.00 CAD (5,500) (2,813) Planet Fitness Inc. Put (35) 17-Jan-20 72.50 USD (6,249) (2,727) UnitedHealth Group Inc. Put (20) 3-Jan-20 290.00 USD (4,342) (935) Walgreens Boots Alliance Inc. Put (100) 17-Jan-20 57.50 USD (14,032) (12,076) Total (53,992) (37,620)

110

Ninepoint Alternative Health Fund Notes to financial statements – Fund specific information December 31, 2019


Investment Objective The investment objective of the Fund is to achieve growth by investing primarily in equity securities of companies engaged in nutrition, nutraceuticals and new forms of medicines and pharmaceutical solutions.


Market Risk a) Other Price Risk As at December 31, 2019 and 2018, if a blended index of Thomson Reuters Canada Health Care Total Return Index and Thomson Reuters United States Healthcare Total Return Index were to fluctuate by 10%, with all other variables held constant, Net Assets attributable to holders of redeemable units would increase or decrease by amounts shown in the table below. This is a measure based on the historical relationship of the Fund’s performance against the indices noted above. The composition of this calculation contains several subjective components that, although reasonably estimated, could alter the resulting estimate should these components be modified based on revised assumptions.


Impact




of redeemable units

$ % $ % 4,589,576 8.50 3,260,143 8.20

b) Currency Risk The tables below summarize the Fund’s exposure to currency risk as at December 31, 2019 and 2018. The tables also illustrate the potential impact to the Fund’s Net Assets attributable to holders of redeemable units as a result of 1% change in these currencies relative to the Canadian dollar, with all other variables held constant.

December 31, 2019 % of Net Assets Impact on Net Assets Forward Currency attributable to holders attributable to holders Currency Fair Value Contracts Net Exposure of redeemable units of redeemable units U.S. Dollar

$ 24,648,487

$ –

$ 24,648,487

% 45.65

$ 246,485

December 31, 2018

% of Net Assets Impact on Net Assets Forward Currency attributable to holders attributable to holders Currency Fair Value Contracts Net Exposure of redeemable units of redeemable units U.S. Dollar

$ 16,145,967

$ –

$ 16,145,967

% 40.61

$ 161,460

111


c) Interest Risk The table below summarizes the Fund’s exposure to interest rate risk, categorized by earlier of contractual re-pricing or maturity dates as at December 31, 2019 and 2018. The table also illustrates the potential impact to the Fund’s Net Assets attributable to holders of redeemable units, had interest rates increased or decreased by 1% with all other variables remaining constant. In practice, the actual results may differ from this sensitivity analysis and the difference could be material. The Fund’s short term assets and liabilities are not subject to a significant amount of risk due to fluctuations in the prevailing level of market interest rates.

Total Exposure Term to Maturity December 31, 2019 December 31, 2018

$ $

Less than 1 year 1,999,020 5,993,940 1-5 Years 743,582 – Total 2,742,602 5,993,940 Impact on Net Assets attributable to holders of redeemable units 12,916 4,017 Impact on Net Assets attributable to holders of redeemable units (%) 0.02 0.01

Credit Risk The Fund invests in debt instruments, which have a credit rating as rated primarily by Dominion Bond Rating Services, Standard & Poor’s or Moody’s. The Fund will generally invest in fixed income securities issued or generated by the Canadian government or its agencies, other Canadian issuers, foreign governments or their agencies, other foreign issuers, and supranational organizations. The table below summarizes the ratings for securities that subject the Fund to credit risk, as a percentage of Net Assets attributable to holders of redeemable units, as at December 31, 2019 and 2018.

Ratings December 31, 2019 December 31, 2018

% % AAA – 15.08 AA 3.70 – Not Rated 1.38 – Total 5.08 15.08

As at December 31, 2019 and 2018, the Fund was exposed to credit risk from over-the-counter derivative contracts with counterparties. The credit risk is considered minimal as these counterparties have a minimum credit rating of AA- by Standard & Poor’s or equivalent.



Equities: Cannabis

43.91

43.43

Pharmaceuticals & Health Technology 21.42 23.89 Other Wellness 13.02 6.77 Organics, Supplements & Nutraceuticals 3.50 3.13

Short-Term Investments 3.70 15.08 Funds 6.25 – Loans 1.38 – Warrants 0.37 0.62 Options Written (0.07) (0.09) Cash and Other Assets Less Liabilities 6.52 7.17 Total Net Assets attributable to holders of redeemable units 100.00 100.00

112



December 31, 2019 Level 1 Level 2 Level 3 Total $ $ $ $ Equities 42,381,105 – 1,812,739 44,193,844 Warrants 45,505 157,061 – 202,566 Funds – – 3,373,610 3,373,610 Loans – – 743,582 743,582 Short-Term Investments – 1,999,020 – 1,999,020 Options written (37,620) – – (37,620) 42,388,990 2,156,081 5,929,931 50,475,002

December 31, 2018

Level 1

Level 2

Level 3

Total $ $ $ $

Equities 25,780,581 2,357,266 2,564,571 30,702,418 Warrants 27,000 219,076 – 246,076 Short-Term Investments – 5,993,940 – 5,993,940 Options written (35,108) – – (35,108) 25,772,473 8,570,282 2,564,571 36,907,326

During the year ended December 31, 2019 and 2018, there were no significant transfers between levels other than the transfers indicated below.

The reconciliation of investments measured at fair value using unobservable inputs (level 3) for the years ended December 31, 2019 and 2018, are presented as follows:


Equities Warrants Loans Equities Warrants $ $ $ $ $

Balance beginning of year 2,564,571 – – – – Purchases 500,000 – 1,639,423 1,986,862 – Transfer in (out) (656,057) – – 300,000 – Sales (478,000) – (743,435) – – Realized gains (losses) – – – – – Changed in unrealized appreciation/(depreciation) in the value of

investments (117,775) – (152,406) 277,709 – Balance end of year 1,812,739 – 743,582 2,564,571 – Change in unrealized appreciation/(depreciation) during the year for

investments held at end of year (150,679) – (152,406) 277,709 –

The Fund’s Level 3 securities consist of private loans, private equity and private warrant positions. The Manager determines their fair value by utilizing a variety of valuation techniques such as the use of comparable recent transactions, discounted cash flows and other techniques used by market participants. The significant unobservable input used in these valuation techniques can vary considerably over time depending on company specific factors and economic or market conditions. The potential impact of applying reasonable possible alternative assumptions for valuing material Level 3 financial assets or liabilities is as follows:

113


December 31, 2019 Increase Decrease Impact on Net assets attributable to holders of redeemable units 0.37% (0.72%)

December 31, 2018

Increase

Decrease

Impact on Net assets attributable to holders of redeemable units 1.33% (0.93%)

Restricted Cash and Investments (note 10) As at December 31, 2019, restricted cash and investments held for the Fund totaled $2,898,736 (December 31, 2018 - $nil).

Investments in Underlying Funds Each Underlying Fund invests in a portfolio of assets to generate returns in the form of investment income and capital appreciation for its unitholders. Each Underlying Fund finances its operations primarily through the issuance of redeemable units, which are puttable at the unitholder’s option and entitle the unitholder to a proportionate share of the Underlying Fund’s net assets. The Fund’s interests in Underlying Funds, held in the form of redeemable units, are reported in its Schedule of Investments at fair value, which represent the Fund’s maximum exposure to these investments. Distributions earned from Underlying Funds are included in “Distribution income” in the Statements of Comprehensive Income. The total realized gains and change in unrealized depreciation arising from Underlying Funds included in the Statements of Comprehensive Income for the year ended December 31, 2019 were $5,118 and $4,388, respectively. The Fund does not provide any additional significant financial or other support to any Underlying Funds. The tables below set out the interest held by the Fund in Underlying Funds.

December 31, 2019 Country of Total Net establishment Assets of Carrying amount Underlying Fund and principal Ownership Underlying included in Statement place of business interest Fund of Financial Position Ninepoint High Interest Savings Fund, Series I

% Canada 2.33

$ 144,983,641

$ 3,373,610

3,373,610

Management fees (note 11) The fees differ among the series of units of the Fund as set out in the chart below:

Series A Series D Series F Series I* Series PTF Up to 2.25% Up to 1.75% Up to 1.25% Negotiated by the

unitholder Up to 1.25%

*The management fee for Series I of the Fund is negotiated by the unitholder and may be paid directly by the Fund or by the unitholder.




$ 1,341,444

$ 591,379

2039

114










Gross securities lending income 782,736 – – Securities lending charges (391,368) – – Net securities lending income 391,368 – – Withholding taxes on securities lending income – – – Net securities lending income received by the Fund 391,368 – – Securities lending charges as a percentage of gross securities lending income (%) 50 – –


115

Ninepoint International Small Cap Fund



As at December 31 2019 2018 $ $


Investments (note 3, 5) 63,381,757 44,674,808 Cash 1,054,126 614,888 Due from broker 12,460 - Subscriptions receivable 26,500 30,861 Dividends receivable 165,486 78,057 Total assets 64,640,329 45,398,614

Liabilities

Current liabilities

Due to broker 43,306 - Redemptions payable 16,850 580 Accrued expenses 76,467 19,603 Total liabilities 136,623 20,183 Net Assets attributable to holders of redeemable units 64,503,706 45,378,431


Series A 10,783,988 11,624,488 Series D 262,287 159,879 Series F 13,869,002 10,683,267 Series PF 39,588,429 22,910,797


Series A 10.45 8.77 Series D 10.65 8.90 Series F 10.56 8.77 Series PF 10.76 8.93





116




For the year ended December 31, 2019 and from March 15, 2018 to December 31, 2018

2019

2018

$ $

Income

Interest income for distribution purposes (note 3) 2,146 26,869 Dividends (note 3) 1,346,726 416,268 Net realized gains (losses) on sale of investments 1,774,871 508,623 Net realized gains (losses) on forward currency contracts (401) - Change in unrealized appreciation (depreciation) in the value of investments 8,777,794 (3,158,599) Net realized gains (losses) on foreign exchange (137,173) 3,376 Securities lending income (note 3) 10,115 10,727 Other income - 20,407 Total income (loss) 11,774,078 (2,172,329)


Management fees 1,010,426 470,736 Administrative fees 131,454 31,314 Withholding taxes 127,008 47,057 Unitholder reporting costs 107,701 44,822 Transaction costs (note 3, 13) 103,745 131,881 Custodial fees 55,097 33,639 Legal fees 30,120 3,883 Filing fees 20,658 2,928 Audit fees 19,203 20,502 Independent Review Committee fees (note 14) 5,396 2,348 Interest expense and bank charges 717 - Total expenses 1,611,525 789,110 Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations 10,162,553 (2,961,439)


Series A 1,956,870 (1,370,931) Series D 42,701 (17,691) Series F 2,203,154 (693,684) Series PF 5,959,828 (879,133)


Series A 1,174,184 1,362,214 Series D 24,454 12,793 Series F 1,242,533 1,118,370 Series PF 3,277,811 559,720


Series A 1.67 (1.01) Series D 1.75 (1.38) Series F 1.77 (0.62) Series PF 1.82 (1.57)


117




For the year ended December 31, 2019 and from March 15, 2018 to December 31, 2018 2019 2018 $ $

Net Assets attributable to holders of redeemable units, beginning of period Series A

11,624,488

-

Series D 159,879 - Series F 10,683,267 - Series PF 22,910,797 -

45,378,431 -


1,956,870

(1,370,931) Series D 42,701 (17,691) Series F 2,203,154 (693,684) Series PF 5,959,828 (879,133)

10,162,553 (2,961,439)


-

(38,651) Series D - (870) Series F - (128,423) Series PF - (36,308) From return of capital Series A

-

(146,714)

Series D - (2,017) Series F - (134,697) Series PF - (288,859)

- (776,539)



758,075

16,541,669

Series D 62,382 187,619 Series F 5,393,344 37,945,671 Series PF 21,429,763 24,096,985 Reinvestments of distributions to holders of redeemable units Series A

-

185,365

Series D - 2,887 Series F - 263,120 Series PF - 325,167 Redemption of redeemable units Series A

(3,555,445)

(3,546,250)

Series D (2,675) (10,049) Series F (4,410,763) (26,568,720) Series PF (10,711,959) (307,055)

8,962,722 49,116,409


(840,500)

11,624,488 Series D 102,408 159,879 Series F 3,185,735 10,683,267 Series PF 16,677,632 22,910,797

19,125,275 45,378,431

Net Assets attributable to holders of redeemable units, end of period Series A

10,783,988



118



For the year ended December 31, 2019 and from March 15, 2018 to December 31, 2018 2019 2018

Units, beginning of period Series A

1,324,983

- Series D 17,962 - Series F 1,217,813 - Series PF 2,567,027 -

5,127,785 -



79,265

1,671,130

Series D 6,942 18,689 Series F 555,025 4,032,872 Series PF 2,188,935 2,563,940 Reinvestments of distributions to holders of redeemable units Series A

-

21,101

Series D - 324 Series F - 29,994 Series PF - 36,433 Redemption of redeemable units Series A

(371,832)

(367,248)

Series D (276) (1,051) Series F (459,092) (2,845,053) Series PF (1,076,367) (33,346)

922,600 5,127,785

Units, end of period Series A

1,032,416



119




For the year ended December 31, 2019 and from March 15, 2018 to December 31, 2018 2019 2018 $ $


10,162,553



143,354

(9,058) Net realized (gains) losses on sale of investments (1,774,871) (508,623) Change in unrealized (appreciation) depreciation in value of investments (8,777,794) 3,158,599

Purchases of investments (27,819,394) (40,664,190) Proceeds from sales of investments 19,695,956 9,896,347 Net increase (decrease) in other assets and liabilities (30,565) (58,454) Net cash provided by (used in) operating activities (8,400,761) (31,146,818)


27,497,506

39,648,933 Redemption of redeemable units (18,514,153) (7,896,285)

Net cash provided by (used in) financing activities 8,983,353 31,752,648


(143,354)

9,058 Net increase in cash 582,592 605,830 Cash (Bank indebtedness) at beginning of period 614,888 - Cash (Bank indebtedness) at end of period 1,054,126 614,888


2,146

26,869 Interest paid 717 - Dividends received, net of withholding taxes 1,132,756 291,269


120




Average Cost Fair Value

SHARES

EQUITIES [98.26%] INDUSTRIALS [27.29%]

$ $

5,951 Akka Technologies 521,156 567,765 219,711 Biffa PLC 873,501 1,035,496 251,378 Clipper Logistics PLC 1,094,382 1,244,196 62,600 DMG Mori Co., Ltd. 1,243,414 1,264,358 8,900 En-Japan Inc. 429,040 507,893

43,095 HomeServe PLC 712,298 936,958 232,327 IWG PLC 1,009,572 1,740,340 874,500 Kerry Logistics Network Ltd. 1,784,950 1,949,885 34,743 LISI S.A. 1,507,796 1,520,720 18,984 Loomis AB 819,989 1,020,666 12,320 Mabuchi Motor Co., Ltd. 638,260 611,037 31,600 OSG Corp. 849,912 789,300 26,420 Palfinger AG 1,154,553 1,125,631

567 Schweiter Technologies AG 798,490 932,710 11,240 SHO-BOND Holdings Co., Ltd. 540,496 609,861 29,591 Tarkett S.A. 852,959 620,668 18,100 THK Co., Ltd. 549,286 642,024 11,680 Tomra Systems ASA 364,203 480,962

15,744,257 17,600,470

66,100

CONSUMER DISCRETIONARY [10.86%] Asics Corp.

1,192,078

1,434,585 132,302 Autogrill S.p.A. 1,824,357 1,797,982 31,049 De' Longhi S.p.A. 1,067,462 852,504 12,220 Greggs PLC 262,175 483,023

131,192 Melia Hotels International, S.A. 1,854,104 1,501,991 26,320 Seria Co., Ltd. 1,055,326 934,225

7,255,502 7,004,310

76,985

FINANCIALS [10.70%] Dovalue S.p.A.

1,282,172

1,379,268 22,971 Flatex AG 823,277 819,754

107,571 OneSavings Bank PLC 745,407 801,919 40,322 Rothschild & Co. 1,846,804 1,503,555

336,400 Seven Bank Ltd. 1,218,291 1,439,289 25,889 Vienna Insurance Group AG Wiener Versicherung Gruppe 915,719 957,825

6,831,670 6,901,610

354

REAL ESTATE [10.69%] Advance Residence Investment Corp.

1,230,025

1,455,361 93,968 Hemfosa Fastigheter AB 1,015,799 1,580,262 25,233 Patrizia Immobilien AG 692,282 729,937 59,295 Safestore Holdings PLC 548,491 822,052 81,653 Savills PLC 1,163,204 1,594,095

120,484 Urban & Civic PLC 629,542 714,981 5,279,343 6,896,688

CONSUMER STAPLES [9.80%]

14,250 Ain Holdings Inc. 1,279,501 1,180,204 12,050 Ariake Japan Co., Ltd. 1,207,379 1,170,810

613,550 L'Occitane International S.A. 1,510,782 1,887,447 8,329 Milbon Co., Ltd. 450,688 617,154

28,340 Norway Royal Salmon ASA 877,960 1,002,674 98,000 Vitasoy International Holdings Ltd. 434,365 461,357

5,760,675 6,319,646

169,200

INFORMATION TECHNOLOGY [9.29%] Bravura Solutions Ltd.

706,246

801,760 13,031 Cancom SE 762,616 998,391 14,400 Horiba Ltd. 1,072,522 1,261,466 6,400 Lasertec Corp. 175,390 425,269

17,100 NS Solutions Corp. 671,466 735,712 6,207 Sopra Steria Group 888,380 1,297,391

150,454 Vista Group International Ltd. 515,142 473,489 4,791,762 5,993,478

8,433

HEALTH CARE [7.57%] BioGaia AB

493,801

496,304 70,523 CVS Group PLC 719,569 1,388,937 29,184 Evotec SE 797,931 979,835 29,400 Nihon Kohden Corp. 1,169,189 1,064,631

986,600 Raffles Medical Group Ltd. 1,009,758 952,563 4,190,248 4,882,270

121




Average Cost Fair Value

SHARES

MATERIALS [6.10%]

$ $

386,298 Alumina Ltd. 889,286 809,638 37,858 Fuji Seal International Inc. 1,548,616 1,096,276 32,372 Lintec Corp. 1,054,348 945,540

373,951 Orora Ltd. 1,114,859 1,083,634 4,607,109 3,935,088

47,261

COMMUNICATION SERVICES [2.58%] Internet Initiative Japan Inc.

1,248,702

1,663,402 1,248,702 1,663,402

14,286

UTILITIES [2.16%] Ormat Technologies Inc.

1,017,940

1,398,865 1,017,940 1,398,865

10,727

ENERGY [1.22%] Schoeller-Bleckmann Oilfield Equipment AG

1,188,617

785,930 1,188,617 785,930 Total Equities 57,915,825 63,381,757 Transaction Costs (note 3) (153,263) - Total Investments [98.26%] 57,762,562 63,381,757 Cash and Other Assets Less Liabilities [1.74%] 1,121,949 Total Net Assets attributable to holders of redeemable units [100.00%] 64,503,706


122

Ninepoint International Small Cap Fund Notes to financial statements – Fund specific information December 31, 2019


Investment Objective The objective of the Fund is to provide unitholders with long term capital appreciation by investing primarily in a portfolio of international small capitalization equity securities of issuers in countries and industries primarily located in Europe, Japan and Asia-Pacific ex-Japan.


Market Risk a) Other Price Risk As at December 31, 2019, if the MSCI EAFE Small Cap Net Index were to fluctuate by 10%, with all other variables held constant, Net Assets attributable to holders of redeemable units would increase or decrease by the amount in the table below. This is a measure based on the historical relationship of the fund’s performance against the noted index. The composition of this calculation contains several subjective components that, although reasonably estimated, could alter the resulting estimate should these components be modified based on several assumptions.

Impact

December 31, 2019


of redeemable units

$ % 6,708,385 10.40

As at December 31, 2018, 98.45% of the Fund’s net assets were invested in equities that were exposed to market price fluctuations. Given the Fund’s recent inception, there was insufficient data to approximate the Fund’s beta and consequently, it was not possible to reliably determine the impact of a 10% change in any given index on the Fund’s net asset value.



Fair Value


of redeemable units


of redeemable units Japanese Yen

$ 19,914,725

% 30.87

$ 199,147

Euro 17,674,938 27.40 176,749 Pound Sterling 10,785,668 16.72 107,857 Hong Kong Dollar 4,299,957 6.67 43,000 Swedish Krone 3,278,949 5.08 32,789 Australian Dollar 2,713,970 4.21 27,140 Norwegian Krone 1,681,827 2.61 16,818 Israeli Shekel 1,431,722 2.22 14,317 Singapore Dollar 965,050 1.50 9,651 Swiss Franc 941,429 1.46 9,414 New Zealand Dollar 478,189 0.74 4,782 U.S. Dollar 117,303 0.18 1,173 64,283,727 99.66 642,837

123


December 31, 2018 % of Net Assets Impact on Net Assets attributable to holders attributable to holders Currency Fair Value of redeemable units of redeemable units

$ % $ Japanese Yen 13,491,541 29.73 134,915 Euro 11,901,678 26.23 119,017 Pound Sterling 7,379,385 16.26 73,794 Hong Kong Dollar 4,144,442 9.13 41,444 Swedish Krone 2,329,759 5.13 23,298 Australian Dollar 2,138,626 4.71 21,386 Norwegian Krone 1,322,702 2.91 13,227 Israeli Shekel 1,287,125 2.84 12,871 Singapore Dollar 546,513 1.20 5,465 Swiss Franc 517,154 1.14 5,172 New Zealand Dollar 381,322 0.84 3,813 U.S. Dollar 10,500 0.02 105 45,450,747 100.14 454,507



Concentration Risk The table below summarizes the Fund’s concentration risk as a percentage of Net Assets attributable to holders of redeemable units as at December 31, 2019 and 2018. December 31, 2019 December 31, 2018 % %

Equities: Industrials 27.29 27.17 Consumer Discretionary 10.86 18.27 Financials 10.70 5.20 Real Estate 10.69 9.16 Consumer Staples 9.80 9.23 Information Technology 9.29 7.57 Health Care 7.57 4.45 Materials 6.10 8.59 Communication Services 2.58 4.06 Utilities 2.16 2.61 Energy 1.22 2.14

Cash and Other Assets Less Liabilities 1.74 1.55 Total Net Assets attributable to holders of redeemable units 100.00 100.00

124




Japan 30.79 28.98 United Kingdom 13.97 16.15 France 7.65 8.46 Italy 6.25 5.90 Germany 5.47 5.49 Sweden 4.80 4.97 Austria 4.45 2.94 Australia 4.18 4.70 Switzerland 4.14 1.12 Hong Kong 3.74 9.13 Luxembourg 2.93 – Spain 2.33 3.20 Norway 2.30 2.83 United States 2.17 – Singapore 1.48 1.14 Belgium 0.88 – New Zealand 0.73 0.83 Israel – 2.61 Cash and Other Assets Less Liabilities 1.74 1.55 Total Net Assets attributable to holders of redeemable units 100.00 100.00

Fair Value Measurements (note 5) The Fund’s assets and liabilities measured at fair value have been categorized based upon the fair value hierarchy in the table below as at December 31, 2019 and 2018:


$

63,381,757 $

– $

– $

63,381,757 63,381,757 – – 63,381,757

December 31, 2018

Level 1

Level 2

Level 3

Total Equities

$

44,674,808 $

– $

– $

44,674,808 44,674,808 – – 44,674,808

During the year ended December 31, 2019 and the period from March 15, 2018 to December 31, 2018, there were no significant transfers between levels.


Series A Series D Series F Series I* Series PF Up to 2.50% Up to 2.00% Up to 1.50% Negotiated by the



125






For the years ended December 31, 2019 and 2018, securities lending income and charges were as follows: December 31, 2019 December 31, 2018 The Bank of RBC Investor RBC Investor New York Services Services Custodian Mellon Corp. Trust Trust $ $ $

Gross securities lending income 3,810 10,946 14,302 Securities lending charges (1,905) (2,736) (3,575) Net securities lending income 1,905 8,210 10,727 Withholding taxes on securities lending income – (467) (115) Net securities lending income received by the Fund 1,905 7,742 10,612 Securities lending charges as a percentage of gross securities lending income (%) 50 25 25 See accompanying generic notes which are an integral part of these financial statements

126

Ninepoint Concentrated Canadian Equity Fund



As at December 31 2019 2018 $ $

Assets

Current assets

Investments (note 3, 5) 27,528,055 29,079,027 Cash 60,803 168,441 Dividends receivable 78,322 108,844 Due from broker 1,068,676 - Total assets 28,735,856 29,356,312

Liabilities

Current liabilities

Due to broker 1,429,728 - Redemptions payable - 75,672 Accrued expenses 68,675 39,184

Total liabilities 1,498,403 114,856



Series A 26,055,425 28,107,937 Series D 42,777 8,139 Series F 1,139,251 1,125,380


Series A 10.16 8.57 Series D 9.85 8.48 Series F 10.12 8.63





127




For the years ended December 31, 2019 and from March 29, 2018 to December 31, 2018

2019

2018

$ $

Income

Interest income for distribution purposes (note 3) 18,214 54,109 Dividends (note 3) 828,740 831,315 Net realized gains (losses) on sale of investments 1,100,918 (1,302) Change in unrealized appreciation (depreciation) in the value of investments 4,697,791 (4,886,481) Net realized gains (losses) on foreign exchange 6 (24) Securities lending income 2,064 3,916 Other Income - 88,488 Total income (loss) 6,647,733 (3,909,979)


Management fees 695,150 676,313 Transaction costs (note 3, 13) 184,373 197,255 Unitholder reporting costs 144,271 128,445 Administrative fees 43,724 25,893 Legal fees 29,273 3,422 Filing fees 21,098 2,928 Audit fees 18,664 20,509 Custodial fees 5,781 6,502 Independent Review Committee fees (note 14) 5,244 2,219 Withholding taxes 14 27 Total expenses 1,147,592 1,063,513 Increase (Decrease) in Net Assets attributable to holders of redeemable units from operations 5,500,141 (4,973,492)


Series A 5,265,673 (4,803,937) Series D 4,545 (604) Series F 229,923 (168,951)


Series A 2,895,444 3,669,200 Series D 2,680 408 Series F 119,458 145,072


Series A 1.82 (1.31) Series D 1.70 (1.48) Series F 1.92 (1.16)


128




For the years ended December 31, 2019 and from March 29, 2018 to December 31, 2018 2019 2018 $ $

Net Assets attributable to holders of redeemable units, beginning of period Series A

28,107,937

-

Series D 8,139 - Series F 1,125,380 -

29,241,456 -


5,265,673

(4,803,937) Series D 4,545 (604) Series F 229,923 (168,951)

5,500,141 (4,973,492)


-

- Series D (139) - Series F (593) - From net capital gains on investments Series A

(512,566)

-

Series D (1,799) - Series F (47,907) -

(563,004) -



65,301

41,066,660

Series D 30,578 11,262 Series F 72,872 1,975,857 Reinvestments of distributions to holders of redeemable units Series A

512,566

-

Series D 1,938 - Series F 48,500 - Redemption of redeemable units Series A

(7,383,486)

(8,154,786)

Series D (485) (2,519) Series F (288,924) (681,526)

(6,941,140) 34,214,948


(2,052,512)

28,107,937 Series D 34,638 8,139 Series F 13,871 1,125,380

(2,004,003) 29,241,456

Net Assets attributable to holders of redeemable units, end of period Series A

26,055,425

28,107,937 Series D 42,777 8,139 Series F 1,139,251 1,125,380


129



For the years ended December 31, 2019 and from March 29, 2018 to December 31, 2018 2019 2018

Units, beginning of period Series A

3,281,428

- Series D 960 - Series F 130,330 -

3,412,718 -



6,964

4,106,854

Series D 3,235 1,210 Series F 7,521 197,553 Reinvestments of distributions to holders of redeemable units Series A

50,427

-

Series D 197 - Series F 4,794 - Redemption of redeemable units Series A

(775,445)

(825,426)

Series D (49) (250) Series F (30,044) (67,223)

(732,400) 3,412,718

Units, end of period Series A

2,563,374

3,281,428 Series D 4,343 960 Series F 112,601 130,330


130




For the years ended December 31, 2019 and from March 29, 2018 to December 31, 2018 2019 2018 $ $


5,500,141



(101)

(12) Net realized (gains) losses on sale of investments (1,100,918) 1,302 Change in unrealized (appreciation) depreciation in value of investments (4,697,791) 4,886,481

Purchases of investments (36,690,945) (37,549,595) Proceeds from sales of investments 44,401,678 46,361,239 Net increase (decrease) in other assets and liabilities 60,013 (69,660) Net cash provided by (used in) operating activities 7,472,077 8,656,263


67,650

204,873 Redemption of redeemable units (7,647,466) (8,692,707) Net cash provided by (used in) financing activities (7,579,816) (8,487,834)


101

12 Net increase (decrease) in cash (107,739) 168,429 Cash (Bank indebtedness) at beginning of period 168,441 - Cash (Bank indebtedness) at end of period 60,803 168,441


18,214

54,109 Dividends received, net of withholding taxes 859,262 722,471


131

Ninepoint Concentrated Canadian Equity Fund Schedule of Investment Portfolio As at December 31, 2019 Maturity Date Average Cost Fair Value

PAR VALUE

SHORT-TERM INVESTMENTS [8.43%] TREASURY BILLS [8.43%]

$ $

1,700,000 Canadian Treasury Bill, 0.000% Feb 20, 2020 1,696,089 1,696,157 150,000 Canadian Treasury Bill, 0.000% Jan 9, 2020 149,939 149,946 150,000 Canadian Treasury Bill, 0.000% Jan 23, 2020 149,848 149,852 300,000 Canadian Treasury Bill, 0.000% Feb 6, 2020 299,503 299,514

Total Short-Term Investments 2,295,379 2,295,469

SHARES

EQUITIES [92.64%]

FINANCIALS [41.18%]

24,470 Bank of Nova Scotia 1,846,570 1,794,874 13,100 Canadian Imperial Bank of Commerce 1,457,448 1,415,585 39,460 CI Financial Inc. 961,910 856,677 1,500 Fairfax Financial Holdings Ltd. 874,965 914,610

36,200 Manulife Financial Corp. 823,934 954,232 25,570 Power Corporation of Canada 742,523 855,317 20,800 Royal Bank of Canada 2,046,391 2,137,200 31,420 Toronto Dominion Bank 2,242,994 2,288,319

10,996,735 11,216,814

MATERIALS [17.81%]

34,400 Detour Gold Corp. 461,380 864,816 162,200 Hudbay Minerals Inc. 727,171 872,636 89,460 Lachlan Star Ltd. - 326 20,800 Methanex Corp. 1,344,204 1,043,120 16,200 Nutrien Ltd. 1,010,712 1,007,154 47,200 Teck Resources Ltd. 1,199,398 1,062,944

4,742,865 4,850,996

ENERGY [12.74%]

67,860 Cenovus Energy Inc. 782,012 895,752 147,930 Crescent Point Energy Corp. 771,670 856,515 153,900 Encana Corp. 826,554 935,712 684,850 Trican Well Service Ltd. 1,134,852 780,729

3,515,088 3,468,708

INDUSTRIALS [10.41%]

81,600 Element Fleet Management Corp. 896,768 904,944 38,700 NFI Group Inc. 1,261,349 1,031,355 56,700 Transcontinental Inc. 828,680 899,829

2,986,797 2,836,128

CONSUMER DISCRETIONARY [6.95%]

46,200 Sleep Country Canada Holdings Inc. 885,974 933,702 84,200 Uni-Select Inc. 1,390,469 959,038

2,276,443 1,892,740

COMMUNICATION SERVICES [3.55%]

15,000 Rogers Communications Inc. 963,266 967,200 963,266 967,200 Total Equities 25,481,194 25,232,586 Transaction Costs (note 3) (59,828) - Total Investments [101.07%] 27,716,745 27,528,055 Cash and Other Assets Less Liabilities [-1.07%] (290,602) Total Net Assets attributable to holders of redeemable units [100.00%] 27,237,453


132

Ninepoint Concentrated Canadian Equity Fund Notes to financial statements – Fund specific information December 31, 2019


Investment Objective The objective of the Fund is to seek to provide unitholders with long term capital appreciation by investing primarily in a concentrated portfolio of Canadian equity securities.


Market Risk a) Other Price Risk As at December 31, 2019, if the S&P/ TSX Composite Index were to fluctuate by 10%, with all other variables held constant, Net Assets attributable to holders of redeemable units would increase or decrease by the amount in the table below. This is a measure based on the historical relationship of the Fund’s performance against the index noted. The composition of this calculation contains several subjective components that, although reasonably estimated, could alter the resulting estimate should these components be modified based on revised assumptions.

Impact

December 31, 2019


of redeemable units

$ % 2,723,745 10.00

As at December 31, 2018, 97.90% of the Fund’s net assets were invested in equities that were exposed to market price fluctuations. As the Fund launched in 2018, there was insufficient data to approximate the Fund’s beta and consequently, it was not possible to reliably determine the impact of a 10% change in any given index on the Fund’s net asset value.

b) Currency Risk The tables below summarize the Fund’s exposure to currency risk as at December 31, 2019. The tables also illustrate the potential impact to the Fund’s Net Assets attributable to holders of redeemable units as a result of 1% changes in these currencies relative to the Canadian dollar, with all other variables held constant. The Fund did not have a significant exposure to currency risk as at December 31, 2018.

December 31, 2019 % of Net Assets Impact on Net Assets Forward Currency attributable to holders attributable to holders Currency Fair Value Contracts Net Exposure of redeemable units of redeemable units

$ $ $ % $ U.S. Dollar 13,916 – 13,916 0.05 139 Australian Dollar 326 – 326 0.00 3 14,242 – 14,242 0.05 142

c) Interest Rate Risk The table below summarizes the Fund’s exposure to interest rate risk, categorized by earlier of contractual re-pricing or maturity dates as at December 31, 2019. The table also illustrates the potential impact to the Fund’s Net Assets attributable to holders of redeemable units, had interest rates increased or decreased by 1% with all other variables remaining constant. In practice, the actual results may differ from this sensitivity analysis and the difference could be material. The Fund’s short term assets and liabilities are not subject to a significant amount of risk due to fluctuations in the prevailing level of market interest rates. The Fund did not have a significant exposure to interest rate risk as at December 31, 2018.

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Total Exposure Term to Maturity December 31, 2019 December 31, 2018 Less than 1 year

$

2,295,469 $

– Total 2,295,469 – Impact on Net Assets attributable to holders of redeemable units 2,893 – Impact on Net Assets attributable to holders of redeemable units (%) 0.01 –

Credit Risk The Fund invests in short term investments, which have a credit rating as rated primarily by Dominion Bond Rating Services, Standard & Poor’s or Moody’s. The Fund will generally invest in short term investments issued or generated by the Canadian government or its agencies, other Canadian issuers, foreign governments or their agencies, other foreign issuers, and supranational organizations. The table below summarizes the ratings for securities that subject the Fund to credit risk, as a percentage of Net Assets attributable to holders of redeemable units, as at December 31, 2019. The Fund did not have a significant exposure to credit risk as at December 31, 2018.

Ratings December 31, 2019 December 31, 2018 AAA

% 8.43

% –

Total 8.43 –



Equities

Financials 41.18 49.07 Materials 17.81 25.38 Energy 12.74 16.24 Industrials 10.41 3.57 Consumer Discretionary 6.95 3.63 Communication Services 3.55 –

Short-Term Investments 8.43 1.54 Warrants – 0.01 Cash and Other Assets Less Liabilities (1.07) 0.56 Total Net Assets attributable to holders of redeemable units 100.00 100.00

Fair Value Measurements (note 5) The Fund’s assets and liabilities measured at fair value have been categorized based upon the fair value hierarchy in the table below as at December 31, 2019 and 2018.


Equities 25,232,586 – – 25,232,586 Short-Term Investments – 2,295,469 – 2,295,469 25,232,586 2,295,469 – 27,528,055

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Equities 28,628,468 – – 28,628,468 Warrants – 1,490 – 1,490 Short-Term Investments – 449,069 – 449,069 28,628,468 450,559 – 29,079,027

During the year ended December 31, 2019 and the period from March 29, 2018 to December 31, 2018, there were no significant transfers between levels.


Series A Series D Series F Series I* Series PF Up to 2.25% Up to 1.75% Up to 1.25% Negotiated by the







During the year ended December 31, 2019 and the period from March 29, 2018 to December 31, 2018, securities lending income was as follows:


Custodian

The Bank of New York

Mellon Corp.

RBC Investor

Services Trust

RBC Investor Services

Trust $ $ $

Gross securities lending income 1,900 1,469 5,221 Securities lending charges (949) (356) (1,305) Net securities lending income 951 1,113 3,916 Withholding taxes on securities lending income – (14) (27) Net securities lending income received by the Fund 951 1,099 3,889 Securities lending charges as a percentage of gross securities lending income (%) 50 25 25

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Fund Merger During the year ended December 31, 2018, the Fund acquired all the assets of the below fund (the “Acquired Fund”), and in exchange, the Fund issued units to this Acquired Fund which in turn, were distributed to the unitholders of the Acquired Fund. The Manager was the investment advisor to the Acquired Fund. Tax elections were made, which allowed the transfer of assets on a tax-deferred basis.



Number of units issued by the Fund to the Acquired Fund

April 10, 2018 Ninepoint Canadian Equity Fund $42,778,454 4,277,541


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Generic Notes to Financial Statements December 31, 2019

1. Establishment of the Funds Ninepoint Gold and Precious Minerals Fund, Ninepoint Energy Fund, Ninepoint Gold Bullion Fund, Ninepoint Diversified Bond Fund, Ninepoint High Interest Savings Funds (formerly, Ninepoint Short-Term Bond Fund), Ninepoint Silver Bullion Fund, Ninepoint Enhanced Balanced Fund, Ninepoint Global Infrastructure Fund, Ninepoint Global Real Estate Fund, Ninepoint Alternative Health Fund (formerly, Ninepoint UIT Alternative Health Fund), Ninepoint International Small Cap Fund, and Ninepoint Concentrated Canadian Equity Fund are open-ended mutual fund trusts (collectively, the “Funds” and each, a “Fund”). The Funds, other than Ninepoint Alternative Health Fund, were established under the laws of the Province of Ontario pursuant to a trust agreement dated September 9, 1997, as amended and restated on October 16, 2001 and February 13, 2004, and as further amended on November 1, 2007, January 16, 2009, July 16, 2010, August 5 , 2010, August 24, 2011, March 27, 2012, January 2, 2013 and April 10, 2014, together with amended and restated Schedule “A” dated as of January 26, 2018, July 30, 2018 and March 6, 2019. Ninepoint Alternative Health Fund was established under the laws of the Province of Ontario pursuant to a trust agreement dated September 16, 2016, as amended and restated on April 16, 2018. Ninepoint Partners LP (the "Manager") is the manager and portfolio advisor of the Funds. As of May 6, 2019, CIBC Mellon Trust Company became the custodian of the Funds, prior to which RBC Investor Services Trust was the custodian, other than for Ninepoint Energy Fund and Ninepoint Alternative Health Fund, for which the custodian was CIBC Mellon Trust Company throughout the year. The address of the Funds’ registered office is 200 Bay Street, Toronto, Ontario.

The date of inception and series structure of each of the Funds are as follows: Name of the Fund Date of Inception Series Information Ninepoint Gold and Precious Minerals Fund October 16, 2001

(publicly launched on November 15, 2001) Became multi-series in October 2004. The existing units were designated as Series A and new Series F and I were introduced. On April 23, 2018, new Series D was introduced. On November 26, 2018, new Series QF was introduced.

Ninepoint Energy Fund March 24, 2004 (publicly launched on April 15, 2004)

A multi-series fund since inception, having three series, Series A, F and I. On April 23, 2018, new Series D was introduced. On November 30, 2018, new Series PTF was introduced.

Ninepoint Gold Bullion Fund March 10, 2009 (publicly launched on March 17, 2009)

A multi-series fund since inception, having three series, Series A, F and I.

Ninepoint Diversified Bond Fund July 16, 2010 (publicly launched on August 5, 2010)

A multi-series fund since inception, having four series, Series A, F, T and I. On August 24, 2011, new Series FT were introduced. On May 28, 2015, new Series P, PT, PF, PFT, Q, QT, QF and QFT were introduced. On April 23, 2018, new Series D was introduced.

Ninepoint High Interest Savings Fund July 16, 2010 (publicly launched on August 5, 2010)

A multi-series fund since inception, having three series, Series A, F and I. On November 16, 2017, new Series I1 was introduced.

Ninepoint Silver Bullion Fund May 3, 2011 (publicly launched on May 10, 2011)

A multi-series fund since inception, having three series, Series A, F and I.

Ninepoint Enhanced Balanced Fund March 27, 2012 (publicly launched on April 16, 2012)

A multi-series fund since inception, having seven series, Series A, A1, F, F1, FT, I and T. On April 23, 2018, new Series D was introduced.

Ninepoint Global Infrastructure Fund September 1, 2011 (publicly launched on September 1, 2011)

A multi-series fund since inception, having three series, Series A, F and I. On April 23, 2018, new Series D was introduced.

Ninepoint Global Real Estate Fund June 29, 2015 (publicly launched on August 5, 2015)

A multi-series fund since inception, having three series, Series A, F and I. On February 7, 2017, new Series T and FT were introduced. On April 23, 2018, new Series D was introduced.

Ninepoint Alternative Health Fund September 16, 2016 (publicly launched on March 30, 2017)

A single series fund since inception; Series A. On June 28, 2017, new Series F was introduced. On April 23, 2018, new Series D and I were introduced. On October 17, 2018, new Series PTF was introduced.

Ninepoint International Small Cap Fund January 26, 2018 (publicly launched on March 15, 2018)

A multi-series fund since inception, having five series, Series A, D, F, I and PF.

Ninepoint Concentrated Canadian Equity Fund January 26, 2018 (publicly launched on March 29, 2018)

A multi-series fund since inception, having five series, Series A, D, F, I and PF.

The differences among the series of units are the different eligibility criteria, fee structures and administrative expenses associated with each series.

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The Statements of Financial Position of each of the Funds are as at December 31, 2019 and 2018. The Statements of Comprehensive Income (Loss), Statements of Changes in Net Assets Attributable to Holders of Redeemable Units and Statements of Cash Flows for each Fund are for the years ended December 31, 2019 and 2018, except for series of a Fund established during either year, in which case the information for the applicable series is provided for the period from the start date of the series of the Fund to December 31 of the applicable year. The Schedule of Investment Portfolio for each Fund is as at December 31, 2019.

These financial statements were approved for issuance by the Manager on March 27, 2020.

2. Basis of Presentation These financial statements have been prepared in compliance with International Financial Reporting Standards (“IFRS”) as published by the International Accounting Standards Board (“IASB”) and include estimates and assumptions made by the Manager that may affect the reported amounts of assets, liabilities, income, expenses and the reported amounts of changes in Net Assets during the reporting year. Actual results could differ from those estimates.

The financial statements have been prepared on a going concern basis using the historical cost convention. However, each Fund is an investment entity and primarily all financial assets and financial liabilities are measured at fair value in accordance with IFRS.

The financial statements are presented in Canadian dollars, which is each Fund’s functional currency.

3. Summary of Significant Accounting Policies The following is a summary of significant accounting policies followed by the Funds:

CLASSIFICATION AND MEASUREMENT OF INVESTMENTS

The Funds classify and measure financial instruments in accordance with IFRS 9, Financial Instruments (“IFRS 9”). Based on the Funds’ business model for managing the financial assets and the contractual cash flow characteristics of these assets, it requires financial assets to be classified as amortized cost, fair value through profit or loss (“FVTPL”), or fair value through other comprehensive income (“FVOCI”).

The Funds’ investments, investments sold short and derivative assets and liabilities are measured at FVTPL.

The Funds’ accounting policies for measuring the fair value of its investments and derivatives are identical to those used in measuring its Net Asset Value for transactions with unitholders. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Financial assets and liabilities are recorded in the Statements of Financial Position at fair value upon initial recognition. All transaction costs such as brokerage commissions incurred in the purchase and sale of such securities are recognized directly in the Statements of Comprehensive Income (Loss). Subsequent to initial measurement, financial assets and liabilities at FVTPL are recorded at fair value which, as at the financial reporting year end is determined as follows:

1. Securities listed upon a recognized public stock exchange are valued at the closing price recorded by the exchange on which the security is principally traded, where the last traded price falls within that day’s bid-ask spread. In circumstances where the closing price is not within the bid-ask spread, the Manager determines the point within the bid-ask spread that is most representative of fair value based on the specific facts and circumstances.

2. Common shares of unlisted companies and warrants that are not traded on an exchange are valued using valuation techniques established by the Manager. Restricted securities are valued in a manner that the Manager determines represents fair value.

3. Short-term notes and treasury bills are valued at their cost. The cost, together with accrued interest, approximates fair value using closing prices.

4. Bonds, debentures and other debt obligations are valued at the mean of bid/ask prices provided by recognized investment dealers. Unlisted bonds are valued using valuation techniques established by the Manager.

5. Mutual fund units held as investments are fair valued using their respective NAV per unit on the relevant valuation dates, as these values are most readily and regularly available.

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Physical gold bullion and silver bullion are measured at fair value determined by reference to published price quotations, with unrealized and realized gains and losses recorded in income based on the IAS 40 – Investment Property (“IAS 40”) fair value model as IAS 40 is the most relevant standard to apply.

The difference between the fair value of investments and the cost of investments represents the unrealized appreciation or depreciation in the value of investments. The cost of investments for each security is determined on an average cost basis.

All other financial assets and financial liabilities are classified at amortized cost. They are recognized at fair value upon initial recognition and subsequently measured at amortized cost. IFRS 9 requires that an entity recognize a loss allowance for expected credit losses on financial assets which are measured at amortized cost or FVOCI. The Funds consider both historical analysis and forward looking information in determining any expected credit loss. The Funds’ obligation for Net Assets attributable to holders of redeemable units is presented at the redemption amount.

TRANSACTION COSTS

Transaction costs are expensed and are included in “Transaction costs” in the Statements of Comprehensive Income (Loss). Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of an investment, which include fees and commissions paid to agents, advisors, brokers and dealers, levies by regulatory agencies and securities exchanges, and transfer taxes and duties.

INVESTMENT TRANSACTIONS AND INCOME RECOGNITION

Investment transactions are accounted for on the business day following the date the order to buy or sell is executed, with the exception of short-term investments, which are accounted for on the date the order to buy or sell is executed. Realized gains and losses arising from the sale of investments and unrealized appreciation and depreciation on investments are calculated with reference to the average cost of the related investments and are recorded in the Statements of Comprehensive Income (Loss).

Interest income for distribution purposes represents the coupon interest recognized on an accrual basis. Dividend income is recognized on the ex-dividend date, presented gross of any non-recoverable withholding taxes, which are disclosed separately in the Statements of Comprehensive Income (Loss). Distributions from underlying funds are recognized on the distribution date.

FOREIGN CURRENCY TRANSLATION

The fair values of foreign-currency-denominated investments are translated into Canadian dollars using the prevailing rate of exchange on each valuation date. Income, expenses and investment transactions in foreign currencies are translated into Canadian dollars at the rate of exchange prevailing on the respective dates of such transactions.

The Funds do not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in “Change in unrealized appreciation (depreciation) in the value of investments” in the Statements of Comprehensive Income (Loss). Realized foreign exchange gains or losses from sales of investments and cash in foreign currencies are included in “Net realized gains (losses) on foreign exchange” in the Statements of Comprehensive Income (Loss). Any difference between the recorded amounts of dividends, interest and foreign withholding taxes and the Canadian dollar equivalent of the amounts actually received is reported as part of the investment income in the Statements of Comprehensive Income (Loss).

CASH

Cash is comprised of cash on deposit with financial institutions.

FORWARD CURRENCY CONTRACTS

The value of a forward currency contract is the gain or loss that would be realized if, on the date that valuation is made, the position was closed out. It is reflected in the Statements of Financial Position as part of “Unrealized appreciation (depreciation) on forward currency contracts” and the change in value over the year is reflected in the Statements of Comprehensive Income (Loss) as part of “Change in unrealized appreciation (depreciation) on forward currency contracts”. When the forward currency contracts are closed out, gains and losses are realized and included in “Net realized gains (losses) on forward currency contracts” in the Statements of Comprehensive Income (Loss).

139


OPTION CONTRACTS

When the Funds purchase options, the premiums paid for purchasing options are included as an asset and are subsequently adjusted each valuation day to the fair value of the option contract. Premiums received from writing options are included as a liability and are subsequently adjusted each valuation day to the fair value of the option contract. These amounts are reflected in the Statements of Financial Position as part of “Options purchased” or “Options written”. Option contracts are valued each valuation day according to the gain or loss that would be realized if the contracts were closed out on that day. All unrealized gains (losses) arising from option contracts are recorded as “Change in unrealized appreciation (depreciation) on option contracts” in the Statements of Comprehensive Income (Loss), until the contracts are closed out or expire, at which time the gains (losses) are realized and reflected in the Statements of Comprehensive Income (Loss) as “Net realized gains (losses) on option contracts”.

CREDIT DEFAULT SWAPS

The fair value of credit default swaps with exposures to underlying marketable issuers is determined using indicative values obtained by vendors from third party-broker dealers. Pricing vendors determine the fair value using valuation models that are based on assumptions that are supported by observable market inputs such as credit spreads. The fair value is independently assessed by valuation specialists to ensure that they are reasonable. The fair values of credit default swaps are affected by the perceived credit risk of the underlying issuers, movements in credit spreads and the length of time to maturity. These amounts are reflected in the Statements of Financial Position as part of “Swap contracts”.

Any interest paid for credit default swaps contracts is recorded as “Interest paid on swap contracts” in the Statements of Comprehensive Income (Loss). The unrealized gain or loss on credit default swaps contracts is reflected in the Statements of Comprehensive Income (Loss) as part of “Change in unrealized appreciation (depreciation) on swap contracts”. When the credit default swaps are closed out, any gains (losses) are recorded as “Net realized gain (loss) on swap contracts” in the Statements of Comprehensive Income (Loss).

CALCULATION OF NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER SERIES PER UNIT

The Net Assets attributable to holders of redeemable units per unit of a series is based on the fair value of the series’ proportionate share of the assets and liabilities of the Fund common to all series, less any liabilities of the Fund attributable only to that series, divided by the total outstanding units of that series. Income, non-series-specific expenses, realized and unrealized gains (losses) on investments and transaction costs are allocated to each series of a Fund based on the series’ pro-rata share of Net Assets attributable to holders of redeemable units of that Fund. Expenses directly attributable to a series are charged directly to that series.

INCOME TAXES

The Funds qualify as mutual fund trusts under the Income Tax Act (Canada), and accordingly, are not taxed on that portion of taxable income that is paid to or allocated to unitholders. The Funds may also retain some net capital gains by utilizing the capital gains refund mechanism available to mutual fund trusts without incurring any income taxes. No provision for income taxes has been recorded in the Funds as sufficient income and net realized capital gains have been distributed to unitholders. Non-capital losses may be carried forward for up to 20 years and can be offset against future taxable income. Capital losses may be carried forward indefinitely to be applied against future capital gains.

For tax purposes, certain Funds generally treat gains from the disposition of gold bullion and silver bullion as capital gains, rather than income, as they intend to be long-term passive holders of gold bullion and silver bullion, and generally dispose of their holdings in bullion only for the purposes of meeting redemptions. The Canada Revenue Agency has, however, expressed its opinion that gains or losses of mutual fund trusts resulting from transactions in commodities should generally be treated for tax purposes as ordinary income rather than as capital gains, although the treatment in each particular case remains a question of fact to be determined having regard to all the circumstances.

The Funds incur withholding taxes imposed by certain countries on investment income and capital gains. Such income and gains are recorded on a gross basis and the related withholding taxes are shown separately in the Statements of Comprehensive Income (Loss).

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PER UNIT

“Increase (decrease) in Net Assets attributable to holders of redeemable units from operations per unit” in the Statements of Comprehensive Income (Loss) represents the increase (decrease) in Net Assets attributable to holders of redeemable units from operations per series, divided by the weighted average number of units of the series outstanding during the year, which is presented in the Statements of Comprehensive Income (Loss).

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SHORT SELLING

When a Fund engages in a short sale, it borrows that security from a prime broker to complete the sale. The cost of entering into short positions is recorded in the Statements of Comprehensive Income (Loss) under “Securities borrowing expense”. Short selling can provide the Fund with opportunities for gains when markets are volatile or declining. A Fund will engage in short selling only within certain limits and conditions including: (i) the Fund will short sell only liquid securities that are traded on a stock exchange, (ii) the Fund will limit its short sale exposure to any single issuer to 5% of the Fund’s total NAV and an aggregate short exposure to 20% of its total NAV, and (iii) the Fund will hold cash cover in an amount (including the Fund’s assets deposited with lenders and short-term investments) that is at least 150% of the aggregate fair value of all securities sold short. The Fund can realize a gain on a short sale if the price of the security decreases from the date the security was sold short until the date at which the Fund closes out its short position, by buying that security at a lower price. A loss will be incurred if the price of the security increases.

OFFSETTING OF FINANCIAL INSTRUMENTS

Financial assets and liabilities are disclosed net if there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and liability simultaneously. Where applicable, additional information is disclosed in the Offsetting of Financial Instruments section of the Notes to financial statements – Fund specific information.

SECURITIES LENDING

The Funds may enter into securities lending transactions. These transactions involve the temporary exchange of securities as collateral with a commitment to deliver the same securities on a future date. Income is earned from these transactions in the form of fees paid by the counterparty and, in certain circumstances, interest paid on securities held as collateral. Income earned from these transactions is recognized on an accrual basis and included in the Statements of Comprehensive Income (Loss).

Certain Funds entered into a securities lending program with their custodian, CIBC Mellon Trust Company, and lending agent, The Bank of New York Mellon. Prior to May 6, 2019, their custodian and lending agent was RBC Investor Services Trust. Securities lending income reported in the Statements of Comprehensive Income (Loss) is net of a securities lending charge which the Funds’ custodians are entitled to receive. The aggregate market value of all securities loaned by a Fund cannot exceed 50% of the assets of that Fund. As at December 31, 2019, collateral was at least 105% of the value of the securities on loan (December 31, 2018 – at least 102%). Collateral will generally be comprised of cash and obligations of, or guaranteed by, the Government of Canada or a province thereof, or the United States Government or its agencies, or a permitted supranational agency as defined in National Instrument 81-102.

STANDARDS ISSUED BUT NOT YET EFFECTIVE

The Funds have determined there are no IFRS standards that are issued but not yet effective that could materially impact the Funds’ financial statements.

4. Critical Accounting Estimates and Judgments The preparation of financial statements requires management to use judgment in applying its accounting policies and to make estimates and assumptions about the future. The following discusses the most significant accounting judgments and estimates that the Funds have made in preparing the financial statements:

FAIR VALUE MEASUREMENT OF DERIVATIVES AND SECURITIES NOT QUOTED IN AN ACTIVE MARKET

The Funds hold financial instruments that are not quoted in active markets, including derivatives. Fair values of such instruments are determined using valuation techniques and may be determined using reputable pricing sources (such as pricing agencies) or indicative prices from market makers. Where no market data is available, the Funds may value investments using valuation models, which are usually based on methods and techniques generally recognized as standard within the industry. The models used to determine fair values are validated and periodically reviewed by experienced personnel of the Manager, independent of the party that created them. Models use observable data, to the extent practicable. However, areas such as credit risk (both own and counterparty), volatilities and correlations require the Manager to make estimates. Changes in assumptions about these factors could affect the reported fair values of financial instruments. The Funds consider observable data to be market data that is readily available, regularly distributed and updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. Common shares of unlisted companies may be valued at cost and adjusted based on the last known transaction. Refer to Note 5 for further information about the fair value measurement of the Funds’ financial instruments.

141


CLASSIFICATION AND MEASUREMENT OF INVESTMENTS AND APPLICATION OF THE FAIR VALUE OPTION

In classifying and measuring financial instruments held by the Funds, the Manager is required to make significant judgments in determining the most appropriate classification in accordance with IFRS 9. The Manager has assessed the Funds’ business models and concluded that FVTPL, in accordance with IFRS 9, provides the most appropriate classification of the Funds’ financial instruments.

ASSESSMENT AS AN INVESTMENT ENTITY

Entities that meet the definition of an investment entity within IFRS 10, Consolidated Financial Statements are required to measure their subsidiaries at FVTPL rather than consolidate them. The criteria which define an investment entity are as follows:

an entity that obtains funds from one or more investors for the purpose of providing those investors with investment services; an entity that commits to its investors that its business purpose is to invest funds solely for returns from capital appreciation,

investment income or both; and an entity that measures and evaluates the performance of substantially all of its investments on a fair value basis.

The Manager has assessed the characteristics of an investment entity as they apply to the Funds, and such assessment requires significant judgments. Based on the assessment, the Manager concluded that each Fund meets the definition of an investment entity.

5. Fair Value Measurements The Funds use a three-tier hierarchy as a framework for disclosing fair value based on inputs used to value the Funds’ investments. The fair value hierarchy has the following levels:

Level 1 Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date;

Level 2 Quoted prices which are not active, or inputs that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and

Level 3 Prices, inputs or complex modeling techniques that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

The hierarchy of investments and derivatives for each Fund is included in the Notes to financial statements – Fund specific information of each Fund.

All fair value measurements are recurring. The carrying values of cash, subscriptions receivable, interest receivable, payable for investments purchased, redemptions payable, distributions payable, accrued expenses and each Fund’s obligations for Net Assets attributable to holders of redeemable units approximate their fair values due to their short-term nature. Fair values are classified as Level 1 when the related security or derivative is actively traded and a quoted price is available. If an instrument classified as Level 1 subsequently ceases to be actively traded, it is transferred out of Level 1. In such cases, instruments are reclassified into Level 2, unless the measurement of its fair value requires the use of significant unobservable inputs, in which case it is classified as Level 3.

The following provides details of the categorization in the fair value hierarchy by asset classes:

Level 1 securities include: Equity securities and options using quoted market prices (unadjusted). Investments in other mutual funds valued at their respective NAV per unit on relevant valuation dates.

Level 2 securities include: Equity securities that are not frequently traded in active markets. In such cases, fair value is determined based on observable market

data (e.g., transactions for similar securities of the same issuer). Fixed-income securities valued at evaluated bid prices provided by recognized investment dealers (i.e. third-party pricing vendor

based on a variety of factors including broker input, financial information on the issuer and other observable market inputs). Derivative assets and liabilities such as forward currency contracts and swaps, which are valued based on observable inputs such as

the notional amount, forward market rate, contract rates, interest and credit spreads. To the extent that the inputs used are observable and reliable, these derivatives are included in Level 2.

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Level 3 securities include:

Investments valued using valuation techniques that are based on unobservable market data. These techniques are determined pursuant to procedures established by the Manager. Quantitative information about unobservable inputs and related sensitivity of the fair value measurement are disclosed in the Notes to financial statements – Fund specific information.

Additional disclosures relating to transfers between levels and a reconciliation of the beginning and ending balances in Level 3 are also disclosed in the Notes to financial statements – Fund specific information.

For the years ended December 31, 2019 and 2018, the majority of Level 2 securities consisted of private placement common shares subject to a hold period following the closing date of the purchase, and warrants received in consideration of the private placement purchase. Upon the passing of the hold period on the private placement common shares during the year, the shares would be moved from Level 2 to Level 1. The warrants would be Level 2 until either the warrant expired, at which time the security would be removed from the Level 2 balance, or the warrant was exercised, at which time the warrant would be converted into a Level 1 security to the extent that the security is traded in an active market. There were no other material transfers between Level 1 and Level 2 during the years.

6. Financial Risk Management Each Fund is exposed to risks that are associated with its investment strategies, financial instruments and markets in which it invests. The extent of risk within a Fund is largely contingent upon the Fund’s investment policy and guidelines as stated in its prospectus, and the management of such risks is contingent upon the qualification and diligence of the portfolio manager designated to manage the Fund. The Schedule of Investment Portfolio groups securities by asset type, sector or geographic region. Significant risks that are relevant to the Funds are discussed below. Refer to the Notes to financial statements – Fund specific information of each Fund for specific risk disclosures.

MARKET RISK

The Funds’ investments are subject to market risk, which is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market variables such as equity prices, currency rates and interest rates.

a) Other Price Risk Other price risk is the risk that the fair value of a financial instrument will fluctuate due to a change in market prices (other than those arising from interest rate risk or currency risk). The sensitivity analysis disclosed is estimated based on the historical correlation between the return of a Fund as compared to the return of a Fund’s benchmark. The analysis assumes that all other variables remain unchanged. The his torical correlation may not be representative of future correlation and accordingly, the impact on net assets could be materially different. The investments of a Fund are subject to normal market fluctuations and the risks inherent in the financial markets. The maximum risk resulting from purchased securities held by the Funds is limited to the fair value of these investments. The Manager moderates this risk through a careful selection of securities within specified limits, as well as through the diversification of the investment portfolio.

b) Currency Risk Currency risk is the risk that arises from the change in the price of one currency against another. The Funds hold securities that are denominated in currencies other than the Canadian dollar. These securities are converted to the Funds’ functional currency (Canadian dollar) in determining fair value, and fair values are subject to fluctuations relative to the strengthening or weakening of the functional currency.

c) Interest Rate Risk Interest rate risk is the risk borne by an interest-bearing financial instrument that is attributed to interest rate fluctuations. Cash does not expose the Funds to significant amounts of interest rate risk. Excess cash amounts and amounts held as collateral for securities sold short may be invested in Government of Canada treasury bills with maturities of less than three months.

CREDIT RISK

Credit risk is the risk of loss due to the failure of a counterparty to satisfy its obligations. The credit risk relating to issuers of debt securities is reviewed periodically and adjustments may be made, as appropriate, to reflect an allowance for possible default. The credit risk relating to issuers of the secured debt is managed by the terms of agreements; in particular, the notes are secured and the issuers are subject to a number of financial covenants, which are monitored on a regular basis.

The Funds may also be exposed to credit risk from the counterparties to the derivative instruments they hold. Credit risk associated with these transactions is considered minimal as all counterparties have an approved credit rating equivalent to a Standard & Poor’s credit rating of AA – or higher on their long-term debt.

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All transactions executed by a Fund in listed securities are settled upon delivery using approved brokers. The risk of default is considered minimal, as the delivery of those securities sold is made only when the broker has received payment. Payment is made on purchases only when the security is received by the broker. The trade will fail to consummate if either party fails to meet its obligations.

LIQUIDITY RISK

Liquidity risk is the risk that a Fund will not be able to generate sufficient cash resources to fulfill its payment obligations. The Funds predominantly invest in liquid securities that are readily tradable in an active market. Consequently, the Funds are able to readily dispose of securities, if necessary, to fund redemptions in the course of operations. The Funds traditionally maintain a cash reserve in anticipation of normal redemption activity. Although each Fund may, from time to time, invest in illiquid or restricted securities such as private placements, private companies and warrants which are identified in the applicable Fund’s Schedule of Investment Portfolio, such investments do not comprise a significant portion of a Fund’s investment portfolio.

With the exception of derivative contracts and investments sold short, where applicable, all of the Funds’ financial liabilities are short-term liabilities maturing within 90 days after the year end. For Funds that hold investments sold short, these investments have no specific maturity date. For Funds that hold derivative contracts with a term to maturity that exceeds 90 days from the year end, further information related to those contracts can be found in the derivatives schedules included in the Schedule of Investment Portfolio of those Funds.

CONCENTRATION RISK

Concentration risk arises as a result of the concentration of financial instrument exposures within the same category, whether it is geographic region, asset type or industry sector.

7. Capital Management The capital of a Fund is represented by the issued and outstanding units and the NAV attributable to participating unitholders. The Manager utilizes the capital of the Funds in accordance with each Fund’s investment objectives, strategies and restrictions, as outlined in the Fund’s prospectus, while maintaining sufficient liquidity to meet normal redemptions. The Funds do not have any externally imposed capital requirements.

8. Redeemable Units Each Fund is permitted to issue an unlimited number of series of redeemable units and an unlimited number of redeemable units in each series. Redeemable units of the Funds are redeemable at the option of the unitholders, in accordance with the offering documents of each Fund, at their NAV per unit. For the series available to each of the Funds, refer to Note 1. Establishment of the Funds.

The Funds have multiple classes of redeemable units that do not have identical features and therefore, the units do not qualify as equity under IAS 32, Financial Instruments: Presentation (“IAS 32”).

The various series that may be offered by the Funds are described below:

Series Series Description Series A Available to all investors. Series A1 Available to all investors who purchased this series on or before April 16, 2013 and has the same features of Series A. Series D Available to investors who acquire securities through a discount brokerage account or other account approved by the

Manager and whose dealer has signed a Series D agreement with the Manager relating to the distribution of these securities.

Series F Available to investors who participate in fee-based programs through their dealers and whose dealer has signed a Series F agreement with the Manager, or individual investors approved by the Manager.

Series F1 Available to all investors who purchased this series on or before April 16, 2013 and has the same features of Series F. Series T Available to all investors and designed to provide cash flow to investors by making monthly distributions of cash

comprising a return of capital, net income and/or capital gains and the composition of the monthly distributions may vary from month to month.

Series FT Available to investors who participate in fee-based programs and who seek monthly distributions at a target annual distribution rate. Other than the distribution policy, this series of a Fund has the same features as Series F of the same Fund and the distribution policy of this series of a Fund is the same as that of Series T of the same Fund.

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Series Series Description Series I Available to institutional investors or to other investors on a case-by-case basis, all at the discretion of the Manager. Series P Available to an investor, discretionary accounts of an advisor or existing participants in a “household group”, holding in

aggregate at least a $1 million investment and whose dealer has signed a Series P Agreement with the Manager or a former manager of the Funds.

Series PF Available to an investor, discretionary accounts of an advisor or existing participants in a “household group”, holding in aggregate at least a $1 million investment and who participate in fee-based programs through their dealer and whose dealer has signed a Series F Agreement with the Manager or a former manager of the Funds, investors for whom the Manager does not incur distribution costs, or individual investors approved by the Manager and whose dealer has signed a Series P Agreement with the Manager or a former manager of the Funds. This series is only available for purchase if the Manager and their broker, dealer or advisor approve the order first.

Series PT Available to an investor, discretionary accounts of an advisor or existing participants in a “household group”, holding in aggregate at least a $1 million investment and whose dealer has signed a Series P Agreement with the Manager or a former manager of the Funds. The distribution policy of this series is the same as that of Series T of the same Fund.

Series PFT Available to an investor, discretionary accounts of an advisor or existing participants in a “household group”, holding in aggregate at least a $1 million investment and whose dealer has signed a Series P Agreement with the Manager or a former manager of the Funds. Other than the distribution policy, this series has the same features as Series PF of the same Fund. The distribution policy of this series is the same as that of Series PT of the same Fund.

Series PTF Available to investors who participate in fee-based programs through their dealer and whose dealer has signed a Series PTF Agreement with the Manager. Series PTF is only available through dealers who have met certain infrastructure requirements.

Series Q Available to an investor, discretionary accounts of an advisor or existing participants in a “household group”, holding in aggregate at least a $5 million investment and whose dealer has signed a Series Q Agreement with the Manager or a former manager of the Funds.

Series QF Available to an investor or discretionary accounts of an advisor or existing participants in a “household group”, holding in aggregate at least a $5 million investment and who participate in fee-based programs through their dealer and whose dealer has signed a Series F Agreement with the Manager or a former manager of the Funds, investors for whom the Manager does not incur distribution costs, or individual investors approved by us and whose dealer has signed a Series Q Agreement with the Manager or a former manager of the Funds. The series is only available for purchase if the Manager and their broker, dealer or advisor approve the order first.

Series QT Available to an investor, discretionary accounts of an advisor or existing participants in a “household group”, holding in aggregate at least a $5 million investment and whose dealer has signed a Series Q Agreement with the Manager or a former manager of the Funds. The distribution policy of this series is the same as that of Series T of the same Fund.

Series QFT Available to an investor, discretionary accounts of an advisor or existing participants in a “household group”, holding in aggregate at least a $5 million investment and whose dealer has signed a Series Q Agreement with the Manager or a former manager of the Funds. Other than the distribution policy, it has the same features as Series QF of the same Fund. The distribution policy of the series is the same as that of Series QT of the same Fund.

9. Distribution of Income and Capital Gains Ninepoint Diversified Bond Fund, Ninepoint Enhanced Balanced Fund and Ninepoint Global Real Estate Fund make monthly distributions on Series T units and Series FT units as applicable. Ninepoint Diversified Bond Fund, Ninepoint High Interest Savings Fund, Ninepoint Global Infrastructure Fund and Ninepoint Global Real Estate Fund also make monthly distributions on Series A units, Series F units and Series I units. Ninepoint Diversified Bond Fund also makes monthly distributions on Series P units, Series PF units, Series QF units and Series QFT units. Prior to March 2019, Ninepoint High Interest Savings Fund also made monthly distributions on Series I1 units. Ninepoint Global Infrastructure Fund also make monthly distributions on Series D units. All other Funds and series make annual distributions of net investment income and net realized capital gains to unitholders at the end of the calendar year. All distributions allocated to unitholders are either paid in cash or reinvested automatically in additional units of the Funds. These amounts are reflected on the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units as part of “Distributions to unitholders” and/or “Units issued from reinvested distributions”.

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10. Restricted Cash and Investments Cash, investments and broker margin include balances with prime brokers held as collateral for securities sold short and other derivatives. This collateral is not available for general use by the Funds. The value of any restricted cash and investments held for each of the Funds is disclosed in the Notes to financial statements – Fund specific information, if applicable.

11. Related-Party Transactions MANAGEMENT FEES

Each Fund pays the Manager an annual management fee to cover management expenses. Management fees are unique to each Fund and each series and are subject to applicable taxes. The management fee is calculated and accrued daily and is paid on the last business day of each month based on the daily NAV of each Fund.

INCENTIVE FEES

The Funds listed below pay the Manager an incentive annually fee that is equal to 10% of the difference by which the percentage return in the unit value of the applicable series of the Fund from January 1 to December 31 exceeds the percentage return of the benchmark index. The benchmark indices are as follows:

Name of the Fund Benchmark

Ninepoint Gold and Precious Minerals Fund S&P TSX Global Gold Total Return Index

Ninepoint Energy Fund S&P TSX Capped Energy Total Return Index

If the performance of a series of a Fund in any year is less than the performance of the applicable index described above (the “Deficiency”), then no incentive fee will be payable in any subsequent year until the performance of the applicable series of the applicable Fund, on a cumulative basis calculated from the first of such subsequent years, has exceeded the amount of the Deficiency. The Manager may reduce the incentive fee payable by a Fund with respect to a particular investor.

12. Operating Expenses and Sales Charges Each Fund pays its own operating expenses, other than marketing costs and costs of dealer compensation programs, which are paid by the Manager. Operating expenses include, but are not limited to, audit, legal, safekeeping, trustee, custodial, fund administration expenses, preparation costs of financial statements and other reports to investors and Independent Review Committee (“IRC”) member fees and expenses. Operating expenses are charged to all Funds pro-rata, on the basis of Net Assets or another measure that provides a fair and reasonable allocation.

At its sole discretion, the Manager may waive or absorb a portion of the operating expenses of certain Funds. Amounts waived or absorbed by the Manager are reported in the Statements of Comprehensive Income (Loss). Waivers or absorptions can be terminated at any time without notice.

13. Sharing Arrangements In addition to paying for the cost of brokerage services in respect of securities transactions, commissions paid to certain brokers may also cover research services provided to the portfolio manager. Sharing arrangements for each Fund are disclosed in the Notes to financial statements – Fund specific information, if applicable.

14. Independent Review Committee In accordance with National Instrument 81-107, Independent Review Committee for Investment Funds, the Manager has established an IRC for all of the Funds. The mandate of the IRC is to consider and provide recommendations to the Manager on conflicts of interest to which the Manager is subject when managing the Funds. The IRC reports annually to unitholders of the Funds on its activities, and the annual report is available on or after March 31 in each year. The Manager charges compensation paid to the IRC members and the costs of the ongoing administration of the IRC to the Funds. These amounts are recorded in the Statements of Comprehensive Income (Loss).

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15. Subsequent Events Management has evaluated subsequent events for the Funds through to March 27, 2020, the date the financial statements were available to be issued, and has concluded that there were no subsequent events relevant for financial statement disclosure, except as discussed below.

ECONOMIC CONDITIONS

In January 2020, the World Health Organization declared the coronavirus a global health emergency and declared it as a global pandemic on March 11, 2020. This has presented many uncertainties which have reflected in the subsequent stock market volatility. Equity markets have reacted with the biggest decline experienced in more than a decade. In response, both the U.S. Federal Reserve and the Bank of Canada quickly reduced their key interest rates by 50 basis points. At this time, governments and businesses around the world are introducing significant new measures to contain and control the spread of the coronavirus. The full impact of these circumstances on global growth and businesses will not be fully understood until more time has passed. The ultimate extent of the effect of this on the Funds is uncertain. As a result, the Manager has and will continually assess the performance of the portfolios and make investment decisions that are aligned with each of the Fund’s respective mandates and the best interest of its unitholders.

INVESTMENT STRATEGY

Effective February 18, 2020, the investment strategy of Ninepoint Enhanced Balanced Fund, with regards to the equity portion of its portfolio, changed to achieving its investment objective by obtaining exposure to equities through investment in one or more exchange-traded funds that track the performance of applicable equity indices, rather than concentrated investment in single-name securities.

MANAGEMENT FEES

Effective February 18, 2020, the management fee rates for Ninepoint Enhanced Balance Fund were reduced to the following:

Series Former Management Fee Rate New Management Fee Rate Series A 1.90% 1.75% Series D 1.40% 1.25% Series F 0.90% 0.75% Series FT 0.90% 0.75% Series I - Negotiated by the securityholder 1.90% 1.75% Series T 1.90% 1.75%

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Corporate Information

Corporate Address Ninepoint Partners LP Royal Bank Plaza, South Tower 200 Bay Street, Suite 2700, P.O. Box 27 Toronto, Ontario M5J 2J1 T 416.362.7172 TOLL-FREE 1.888.362.7172 F 416.628.2397 E [email protected] For additional information visit our website: www.ninepoint.com Call our mutual fund information line for daily closing prices: 416.362.7172 or 1.888.362.7172

Auditors KPMG LLP Bay Adelaide Centre 333 Bay Street Suite 4600 Toronto, Ontario M5H 2S5

Legal Counsel Borden Ladner Gervais LLP Bay Adelaide Centre, East Tower 22 Adelaide Street West Suite 3400 Toronto, Ontario M5H 4E3

The opinions, estimates and projections (‘‘information’’) contained within this report are solely those of Ninepoint Partners LP and are subject to change without notice. Ninepoint Partners LP makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Ninepoint Partners LP assumes no responsibility for any losses or damages, whether direct or indirect, that arise out of the use of this information. Ninepoint Partners LP is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Ninepoint Partners LP is the investment manager of the Ninepoint Gold and Precious Minerals Fund, the Ninepoint Energy Fund, the Ninepoint Gold Bullion Fund, the Ninepoint Diversified Bond Fund, the Ninepoint High Interest Savings Fund, the Ninepoint Silver Bullion Fund, the Ninepoint Enhanced Balanced Fund, the Ninepoint Global Infrastructure Fund, the Ninepoint Global Real Estate Fund, Ninepoint Alternative Health Fund, the Ninepoint International Small Cap Fund, and the Ninepoint Concentrated Canadian Equity Fund (the ‘‘Funds’’). Commissions, trailing commissions, management fees and other expenses may be associated with these Funds. Please read the simplified prospectus carefully before investing. The indicated rates of return are based on the historical annual compounded total returns, including changes in unit value and reinvestment of all distributions, and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their unit values and investment returns will fluctuate, and past performance is not indicative of future performance.

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