Norrep Funds

FUNDSHesperian Capital Management Ltd.

Monthly Fund SuMMarieSAUGUST 31, 2013

Norrep Fund

Norrep II Class

Norrep All Cap Quant Class

Norrep Income Growth Class

Norrep Global Class

Norrep Energy Class

Norrep Entrepreneurs Class

Norrep Market Neutral Income Fund

www.norrep.com | 877.431.1407

Norrep Global Income Growth Class

Norrep Tactical Opportunities Class

Norrep High Yield Class

Norrep Short Term Income Fund

Norrep US Dividend Plus Class

1.877.431.1407www.norrep.com

CAPPEDNAV/Unit: $34.00

*Annualized

Performance

Five-Year Metrics^Beta Correlation R-Squared Standard

Deviation

0.85 0.91 83 22.9% ^ See glossary below

Up Months 4.8% average return in up months

Down Months -5.0% average return in down months

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The fund invests primarily in small and mid cap Canadian equities using a proven and repeatable value methodology. The portfolio management team selects equities generating earnings growth, cash flow growth, and high returns on equity that are reasonably valued in regards to the historical norms for the equity, the sector, and the broad market. With respect to the fundamentals, companies in the portfolio tend to exhibit high quality management teams, clean balance sheets, and strengthening competitive positions in their industry. The fund is most suited to investors with an above average tolerance for volatility and a desire for long-term capital appreciation as an important component of their portfolio.

Norrep FundMonthly Fund Summary as at August 31, 2013

Profit from Hesperian’s proven and repeatable value methodology to make active management count

A well-managed small/mid cap equity fund has historically added tremendous long-term value

Risk is managed by building and maintaining specialist in-house small/mid cap equity expertise

1997^ 1998 1999 2000 2001 2002 2003 2004 2005

3.4% -21.3% 31.7% 44.7% 23.5% 20.7% 43.9% 25.0% 32.4%

2006 2007 2008 2009 2010 2011 2012^ 1997 return begins with May 31 inception25.7% 19.9% -51.1% 62.8% 30.8% -4.3% 10.0%

1 month 3 month YTD 1 year 3 year* 5 year* 10 year* 15 year* Inception*

1.1% 4.5% 14.2% 22.7% 16.0% 7.1% 13.7% 19.0% 15.5%

Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).

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Value of $10,000 Invested in the Norrep Fund at Inception

CAPPED


The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Mutual fund shares or units of the Norrep Mutual Funds are offered for sale by way of prospectus in all provinces of Canada except Quebec. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Mutual Funds prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice.

Fund Code NRP 101

Net Assets $103.5 million

Inception May 31,1997

CIFSC Category

Canadian small/mid cap equity

ManagementFee

2.00%

Benchmark Index

BMO Small Cap Equity Only Weighted Total Return Index

Portfolio Manager

Hesperian Capital Management Ltd.

Auditor KPMG LLP

Custodian CIBC Mellon Trust Company

Transfer Agent and Registrar

CIBC Mellon Global Securities Services Company

Baytex Energy Corp. Linamar Corporation

Black Diamond Group Limited MEGA Brands Inc.

Computer Modelling Group Ltd. Peyto Exploration & Development Corp.

Corus Entertainment Inc. Stella-Jones Inc.

Descartes Systems Group Inc. TransForce Inc.

Top Ten Holdings Listed Alphabetically as at July 31, 2013*

Sector Weightings

Trailing P/E Trailing ROE Cash Flow/Debt Trailing P/CF

Norrep Fund 17.9x 15.1% 0.46 8.9xIndex1 30.6x 7.8% 0.32 8.9xAdvantage 12.7x 7.3% 0.14 0.0x

Equity Portfolio Attributes

Source: CPMS (of covered securities) 1BMO Small Cap Equity Only Weighted Total Return Index

* The portfolio manager believes that more than 30-40 securities will dilute performance. The fund’s ten largestpositions generally comprise 40-50% of the portfolio and are reported on a one-month lag to preserve the portfoliomanager’s ability to invest for the benefit of fund investors and their advisors rather than for the public distribution.

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Worse than -5% -5% to Zero Zero to 5% Better than 5%

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Distribution of Monthly Returns Since Inception

Norrep Fund


Energy (16.4%)

Basic Materials (12.4%)

Industrials (16.9%)

Consumer Discretionary (15.3%)

Healthcare (3.1%)

Financials (6.3%)

Information Technology (12.1%)

Net Cash (17.5%)


NAV/Share: MF Series $35.63 F Series $39.00

*Annualized, ^ F Series inception Jan 31/05

Performance


Deviation

0.88 0.93 87 23.3%^ See glossary below


Down Months -4.5% average return in down months48

The fund invests primarily in small and mid cap Canadian equities using a proven and repeatable value methodology. The portfolio management team selects equities generating earnings growth, cash flow growth, and high returns on equity that are reasonably valued in regards to the historical norms for the equity, the sector, and the broad market. With respect to the fundamentals, companies in the portfolio tend to exhibit high quality management teams, clean balance sheets, and strengthening competitive positions in their industry. The fund is most suited to investors with an above average tolerance for volatility and a desire for long-term capital appreciation as an important component of a diversified portfolio.

Norrep II ClassMonthly Fund Summary as at August 31, 2013

1 month 3 month 6 month YTD 1 year 3 year* 5 year* 10 year* Inception*

MF 1.5% 4.1% 7.9% 11.3% 19.1% 13.1% 4.8% 11.2% 15.2%

F 1.5% 4.4% 8.4% 12.0% 20.3% 14.2% 6.0% 9.9%^

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Value of $10,000 Invested in the Norrep II Class at Inception

2009 2010 2011 2012

MF 60.5% 31.4% -7.9% 8.2%

2001^ 2002 2003 2004 2005 2006 2007 2008

MF 14.3% 27.2% 45.8% 23.5% 33.9% 18.6% 16.4% -52.1%

^ 2001 return begins with September 30 inception


Profit from Hesperian’s proven and repeatable value methodology to make active management count

A well-managed small/mid cap equity fund has historically added tremendous long-term value

Risk is managed by building and maintaining specialist in-house small/mid cap equity expertise

95



Fund Codes NRP 200 (F)NRP 201 (FE)NRP 202 (LSC)


Inception September 30, 2001

CIFSC Category


ManagementFee (MF Series)

2.00%*

Benchmark Index

BMO Small Cap Equity Only Weighted Total Return Index

Portfolio Manager


Auditor KPMG LLP




*Does not include performance bonus.

Baytex Energy Corp. Descartes Systems Group Inc.

Black Diamond Group Limited Linamar Corporation

COM DEV International Ltd. Peyto Exploration & Development Corp.

Computer Modelling Group Ltd. Stella-Jones Inc.

Corus Entertainment Inc. TransForce Inc.


Sector Weightings

Trailing P/E Trailing ROE Cash Flow/Debt Trailing P/CF

Norrep II 17.7x 15.2% 0.47 9.1xIndex1 30.6x 7.8% 0.32 8.9xAdvantage 12.9x 7.4% 0.15 -0.2x


Source: CPMS (of covered securities) 1BMO Small Cap Equity Only Weighted Total Return Index



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Norrep II - MF

Energy (17.7%)Basic Materials (13.6%)Industrials (17.4%)Consumer Discretionary (15.8%)Healthcare (3.3%)Financials (6.6%)Information Technology (14.7%)Net Cash (10.9%)



Performance

20041 2005 2006 2007 2008 2009 2010

MF Series 9.4% 33.4% 16.9% 6.1% -44.0% 30.8% 15.3%


Deviation




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The fund invests in Canadian equities using a proprietary quantitative methodology driven by value and momentum metrics. After extensive quantitative screening, the portfolio management team selects a logical and disciplined portfolio of equities exhibiting earnings momentum, price momentum, low debt, and high returns on equity with a reasonable valuation in regards to the historical norms for the equity, the sector, and the broad market. In applying the quantitative methodology, the fund is nimble in adjusting positions as the metrics change. The fund is most suited to investors with an average tolerance for volatility and a desire for long-term capital appreciation as an important component of a diversified portfolio.

Norrep All Cap Quant ClassMonthly Fund Summary as at August 31, 2013

Offers investors valuable diversification for their Canadian equity allocation as the fund’s active share vs. index is high

Canadian equity fund applying a quantitative methodology to invest in companies with strong value and momentum metrics

Investors gain exposure to a portfolio of low multiple stocks with high growth, low debt, and strong momentum

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1 month 3 month 6 month YTD 1 year 3 year* 5 year* Inception*

MF Series 1.6% 3.2% 6.4% 8.8% 14.3% 4.7% -1.5% 4.3%

F Series^ 1.7% 3.5% 6.9% 9.5% 15.4% 5.8% -0.3% 3.9%

*Annualized ^F Series inception March 23, 2005

12004 return begins with March 31 inception


2011 2012

MF Series -13.0% 3.2%



Fund Codes NRP300 (F)NRP301 (FE)NRP302 (LSC)


Inception March 31, 2004

CIFSC Category

Canadian Equity


2.00%*

Benchmark Index

S&P/TSX Total Return Index

Portfolio Manager


Auditor KPMG LLP





Canadian Imperial Bank of Commerce Royal Bank of Canada

First National Financial Corp. Sun Life Financial Inc.

National Bank of Canada Suncor Energy Inc.

Nevsun Resources Ltd. Toronto-Dominion Bank

Power Financial Corporation Whitecap Resources Inc.


Sector Weightings

Trailing P/E Trailing ROE QEM Yield Cash Flow/Debt

Norrep All Cap Quant 13.1x 19.6% 7.4% 4.2% 0.72Index1 15.5x 14.5% 2.1% 3.2% 0.44Advantage 2.4x 5.1% 5.3% 1.0% 0.28


Source: CPMS (of covered securities) 1S&P/TSX Total Return Index

* The portfolio manager believes that more than 30-40 securities will dilute performance. The fund’s ten largest positions are reported on a one-month lag to preserve the portfolio manager’s ability to invest for the benefit of fund investors and their advisors rather than for the public distribution.


Energy (20.9%)Basic Materials (13.1%)Industrials (8.2%)Consumer Discretionary (10.0%)Healthcare (2.1%)Financials (35.0%)Information Technology (3.0%)Telecommunications (2.6%)Net Cash (5.1%)

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Norrep All CapQuant - MF



B Series 0.4% 1.3% 3.3% 6.3% 8.6% 6.7%

MF Series � 0.4% 1.4% 3.5% 6.6% 9.0% 13.2% 9.1% 10.1%

F Series 0.5% 1.5% 3.6% 6.8% 9.4% 13.8% 9.7% 10.8%

NAV/Share: B Series $12.69 MF Series $12.83 F Series $13.68

*Annualized

Performance

2006 2007 2008 2009 2010 2011 2012

MF Series 13.8% 19.6% -33.6% 42.3% 32.6% 2.2% 12.6%

Five-Year Metrics (MF Series)^ Beta Correlation R-Squared Standard Deviation




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The fund invests primarily in dividend-paying small and mid cap Canadian equities with a minimum 10% weight in high yield fixed income. The portfolio manager selects equities generating earnings growth, cash flow growth, and high returns on equity that are reasonably valued and offer a high dividend yield. By targeting companies that pay out a low percentage of their earnings, yield stability is increased. With respect to the fundamentals, companies in the portfolio tend to exhibit high quality management teams, clean balance sheets, and strengthening competitive positions in their industry. The fund is most suited to investors requiring a high, stable tax-advantaged yield paid monthly with long-term growth upside from participation in the Canadian equity market.

Norrep Income Growth ClassMonthly Fund Summary as at August 31, 2013

To strengthen after-tax returns, investors receive a stable $0.06/share monthly tax-advantaged distribution ($0.72 annualized)

Canadian equity balanced fund investing primarily in small and mid cap dividend-paying equities with minimum 10% in fixed income

Over and above the yield, investors retain upside participation in the long-term growth of Canada’s equity market


� MF Series performance is for fund codes NRP 501 (Front End) and NRP 502 (Low Load). These codes closed to new investors in July 2011. B Series NRP 503 (Front End) and NRP 504 (Low Load) is open for purchase.

2 The MF Series is closed to new investors (the B Series is available for purchase). MF Series performance is shown as it has a longer term track record utilizing the same fund mandate and proven and repeatable investment methodology.

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Value of $10,000 Invested in Norrep Income Growth (MF Series) at Inception2



Fund Codes NRP500 (F) NRP503 (FE) NRP504 (LSC)


Inception December 31, 2005^

CIFSC Category

Canadian Equity Balanced

ManagementFee (B Series)

2.00%*

Benchmark Index

75% S&P/TSX Total Return Index

25% DEX Universe Bond Index

Portfolio Manager


Auditor KPMG LLP




^MF Series – B Series inception as at June 30, 2011 *Does not include performance bonus.

Badger Daylighting Ltd. Gamehost Inc.

Baytex Energy Corp. K-Bro Linen Inc.

Black Diamond Group Ltd. Peyto Exploration & Development Corp.

Boyd Group Income Fund SIR Royalty Income Fund

Canaccord Financial Inc. Whitecap Resources Inc.


Indu

stry

Sec

tors

Portfolio Weightings

Trailing P/E Trailing ROE Cash Flow/Debt Expected Yield

Norrep Income Growth 16.4x 16.3% 0.58 4.2%S&P/TSX 15.5x 14.5% 0.44 3.2%Advantage -0.9x 1.8% 0.14 1.0%


Source: CPMS (of covered securities)

Com

posi

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Distribution of MF Series Monthly Returns Since Inception

Energy (15.3%)Basic Materials (6.7%)Industrials (22.8%)Consumer Discretionary (21.3%)Financials (16.3%)Fixed Income (15.2%)Net Cash (2.4%)

Common Stock (82.4%)

Bonds (15.2%)

Cash (2.4%)

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Income Growth - MF



*Annualized

Performance

2006^ 2007 2008 2009 2010 2011 2012

MF Series 13.1% -9.4% -34.9% 12.4% 24.1% -16.7% 14.3%


Deviation




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The fund invests primarily in small and mid cap global equities using a proven and repeatable value methodology. The portfolio management team selects equities generating earnings growth, cash flow growth, and high returns on equity that are reasonably valued in regards to the historical norms for the equity, the sector, and the broad market. With respect to the fundamentals, companies in the portfolio tend to exhibit high quality management teams, clean balance sheets, and strengthening competitive positions in their industry. The fund is most suited to investors with an above average tolerance for volatility and a desire for long-term capital appreciation as an important component of a diversified portfolio.

Norrep Global ClassMonthly Fund Summary as at August 31, 2013

Small/mid cap inefficiency is not limited to Canada and investors gain diversification into the other 95% of the world’s markets

Global small/mid cap equity fund accessing attractive global growth companies with reasonable valuations

Investors benefit from the fund’s focus on the “price of growth” to ensure that global growth is obtained at a reasonable price


MF Series -1.6% 0.9% 5.7% 15.1% 20.9% 10.4% 1.3% 0.3%

F Series -1.6% 1.0% 6.0% 15.7% 22.0% 11.4% 2.5% 1.4%

^ 2006 return begins with May 31 inception

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Inception May 31, 2006

CIFSC Category

Global small/mid cap equity


2.00%*

Benchmark Index

S&P Developed Small Cap Total Return Index

Portfolio Manager


Auditor KPMG LLP





Bank of Central Asia Ingenico Ltd.

Brinker International Inc. Nokian Renkaat Oyj

First Pacific Company Limited PHI Inc.

General Mills Inc. TIBCO Software Inc.

GERRY WEBER International AG The Timken Company



Current Year P/E Current Year ROE Current Year EV/EBITDA Current Year D/E

Norrep Global 16.4x 14.3% 9.1x 0.90Index1 19.3x 13.8% 11.1x 0.77Advantage 2.9x 0.5% 2.0x -0.13


Source: Capital IQ 1S&P Developed Small Cap Total Return Index



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Norrep Global - MF

Energy (10.9%) Basic Materials (10.0%)Industrials (19.6%) Consumer Discretionary (20.4%)Consumer Staples (3.7%) Financials (15.3%)Information Technology (10.8%) Telecommunications (6.1%)Net Cash (3.2%)

Europe (38.6%)North America (51.1%)Asia Pacific (ex. Japan) (10.3%)Japan (0.0%)



*Annualized

Performance

2009^ 2010 2011 2012

MF Series 35.1% 27.7% -5.6% -0.9%

Since Inception Metrics^Beta Correlation R-Squared Standard

Deviation

0.92 0.85 73 19.0%^ See glossary below



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The fund invests primarily in equities of all market capitalizations in Canada’s energy sector using a value methodology commonly referred to as “growth at a reasonable price.” The portfolio management team selects equities with a high potential for share price appreciation that can be realized from a revaluation of the company, growth from developing a resource prospect, and/or exposure to rising commodity prices. Companies in the portfolio tend to have high quality management teams, trade below intrinsic value or at a discount to peers, and have above average growth prospects. The fund is most suited to investors with an above average tolerance for volatility and a desire for long-term capital appreciation as an important component of a diversified portfolio.

Norrep Energy ClassMonthly Fund Summary as at August 31, 2013

Investors gain a specialist Calgary-based portfolio management team with strong relationships in the core of Canada’s energy industry

Natural resources equity fund investing primarily in Canadian energy equities of all capitalizations

Investors obtain exposure to Canada’s energy -- large reserves, low geopolitical risk, and a fast-growing production profile


MF Series 1.5% 3.3% 11.9% 11.4% 18.5% 4.4% 11.4% 14.8%

F Series 1.5% 3.6% 12.4% 12.1% 19.7% 5.5% 12.4% 16.0%


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Value of $10,000 Invested in Norrep Energy Class at Inception

Beta represents the tendency of the fund’s return to respond to market swings. <1 means the fund has less volatile returns than the index. Correlation measures how two instruments (fund and index) move in relation to each other: +1 is perfect positive correlation. R-Squared is a number 0 to 100 representing the percentage of a fund’s movements explained by movements in its index. A high number indicates a more useful beta figure. Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower standard deviation the closer the data points are to the mean.






CIFSC Category

Natural resources equity


2.00%*

Benchmark Index

S&P/TSX Capped Energy Total Return Index

Portfolio Manager


Auditor KPMG LLP





Cenovus Energy Inc Secure Energy Services Inc.

DeeThree Exploration Ltd. Surge Energy Inc.

Manitok Energy Inc. Vermilion Energy Inc.

Raging River Exploration Inc. Whitecap Resources Inc.

RMP Energy Inc. Yoho Resources Inc.


Sector Weightings

Fund Index1

Market Cap - Median ($Mm) $694 $2,681

EV/EBITDA 7.1x 7.0x

Producers’ Production - Median (Boe/d) 6,853 52,093

Producers’ Gas Weighting (%) 39% 31%


Source: Bloomberg, CanOils 1S&P/TSX Capped Energy Total Return Index



Large Cap (6.2%)

Mid Cap (48.3%)

Small Cap (21.9%)

Net Cash (23.6%)

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Norrep Energy - MF



*Annualized

Performance

2010^ 2011 2012

MF Series 25.5% -2.0% 22.5%


Deviation


The fund applies the same proven and repeatable methodology as Norrep Fund (1997 inception) and Norrep II (2001 inception) to invest primarily in Canadian and global micro capitalization equities. The portfolio management team selects equities generating earnings growth, cash flow growth, and high returns on equity. The equities must be reasonably valued in regards to the historical norms for the equity, the sector, and the broad market. With respect to the fundamentals, companies in the portfolio tend to exhibit high quality management teams and strengthening competitive positions in their industry. The fund is most suited to investors with an above average tolerance for volatility and a desire for long-term capital appreciation as an important component of a diversified portfolio.

Norrep Entrepreneurs ClassMonthly Fund Summary as at August 31, 2013

Investors gain professionally-managed access to the 70% of the Canadian equity market largely ignored by investment funds

Specialist fund investing primarily in Canadian and global micro capitalization equities (<$250 million market capitalization)

Risk is managed with specialist in-house expertise and the deep due diligence required to excel in the inefficient micro cap equity space


MF Series 2.8% 6.0% 11.3% 16.2% 27.1% 17.0% 20.8% 18.8%

F Series 2.9% 6.3% 11.8% 17.0% 28.5% 17.9% 22.3% 20.2%





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Value of $10,000 Invested in Norrep Entrepreneurs Class at Inception






CIFSC Category



2.00%*

Benchmark Index

70% BMO Small Cap Equity Only Weighted Total Return Index, 30% S&P Developed Small Cap Total Return Index

Portfolio Manager


Auditor KPMG LLP





AKITA Drilling Ltd. Pollard Banknote Limited

Boyd Group Income Fund Trimac Transportation Ltd.

EXCO Technologies Limited Wenzel Downhole Tools Ltd.

Hardwoods Distribution Inc. Western Forest Products Inc.

Petrowest Corporation Winalta Inc.


Sector Weightings

Trailing P/E Trailing ROE Debt/Equity Trailing P/CF

Norrep Entrepreneurs 16.6x 15.8% 0.12 11.9x

Index1 28.0x 8.5% 0.55 10.4x

Advantage 11.4x 7.3% 0.43 -1.5x


Source: CPMS (of covered securities) 170% BMO Small Cap Equity Only Weighted Total Return Index, 30% S&P Developed Small Cap Total Return Index



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Norrep EntrepreneursClass - MF

Energy (17.8%)

Basic Materials (8.5%)

Industrials (23.6%)

Consumer Discretionary (25.3%)

Consumer Staples (1.2%)

Healthcare (1.2%)

Financials (7.3%)

Information Technology (7.9%)

Net Cash (7.2%)


NAV/Share: Class A $11.29 Class F $11.60

Performance

What is the Norrep Market Neutral Income Fund?The fund’s objective is to eliminate the risk associated with directional moves in the stock market through a balance of long and short security positions. This investment style tends to outperform the equity markets when they are down or flat and tends to underperform in strong bull equity markets (although still providing a positive return). Returns of a market neutral fund reflect the difference between the long positions and the short positions regardless of market direction. Norrep has added an additional element to the traditional market neutral fund by introducing a distribution greater than the yield of the current five year Government of Canada note.

For each dollar invested in the Norrep Market Neutral Income Fund, the investor will own approximately $1 in a passively managed investment-grade corporate bond portfolio, $1 of a short portfolio of Canadian-listed securities and $1 of a long portfolio of Canadian-listed securities.

Norrep Market Neutral Income FundMonthly Fund Summary as at August 31, 2013

Low volatility fund with returns uncorrelated to the market

Opportunity to attain positive returns regardless of market direction

Earn a 4.0%* yield with downside protection

1 month 3 month 6 month YTD 1 year 2 year Inception*

Class A -1.4% -1.0% 3.0% 4.1% 1.0% 7.1% 8.5%

Class F -1.3% -0.8% 3.4% 4.8% 2.0% 8.1% 9.6%

*Annualized

S&P/TSX Return Norrep Market Neutral Income Return

August 8, 2011 -4.0% +1.4%August 4, 2011 -3.4% +0.4%September 22, 2011 -3.3% +0.3%October 3, 2011 -3.2% +0.1%August 18, 2011 -3.1% +0.6%June 21, 2012 -3.0% +0.5%November 9, 2011 -2.7% +0.9%April 15, 2013 -2.7% +0.6%

The S&P/TSX experienced significant daily losses of more than -2.5% eight times since the Norrep Market Neutral Income Fund’s inception. The fund achieved positive returns on each of these days.

*Based on December 31, 2012 unit value

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Value of $10,000 Invested in the Norrep Market Neutral Income at Inception


The contents of this document are intended for information purposes only and should not be considered an advertisement or offer to sell or solicitation to buy any securities in any jurisdiction. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Norrep Market Neutral Income Fund offering documents before investing. The indicated rates of return are the historical annual compounded total returns including changes in share or unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer, their values change frequently and past performance may not be repeated. If we have included a rate of return or mathematical table to illustrate the potential effects of a compound rate of return, it is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. We have made reasonable commercial efforts, to ensure that the information contained in this document is accurate, complete and timely but provide no guarantees of same either express or implied. All opinions expressed and data provided herein are subject to change without notice. * See Offering Memorandum for complete list of exemptions.

Fund Codes NRP3100 (F)NRP3101 (A)


Inception Dec 31, 2010

Classification Canadian MarketNeutral

Management Fee

0.9% (F)1.9% (A)

Capped MER 2.25% excludingperformance bonus and taxes

Yield* 4.0%

2013 Paid Distributions

$0.22


$0.40


$0.45

Portfolio Manager


Auditor KPMG LLP



Prime Broker Scotia Capital Inc.*Paid quarterly, based on December 31, 2012 unit value

Sold under the Accredited Investor Offering Memorandum and minimum purchase ($150,000) exemptions.*

Trailing P/E Trailing ROE Earnings Surprise QEM Yield

Longs 13.3x 17.0% 2.4% 6.0% 3.6%

Shorts 38.2x 6.3% -3.8% -3.2% 3.1%

Number of Longs 29

Number of Shorts 31

Number of Pairs 21

Number of Bonds 18

Percent Long 102%

Percent Short 102%

Percent Bond 100%

Modified Duration 2.9 years

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

2011 -0.8% 2.5% 1.7% -2.0% 1.8% -0.2% 0.7% 4.8% 1.6% -1.3% 2.5% -0.1% 11.3%

2012 -1.8% 1.1% 2.2% 3.2% 1.6% 1.8% 3.2% -0.9% -2.0% 1.8% -0.9% -2.0% 7.4%

2013 0.2% 0.9% 2.5% -0.1% 1.6% -0.5% 1.0% -1.4% 4.1%

S&P/TSX Norrep Market Neutral Income

Average monthly return since inception 0.1% 0.7%

Average return in up months 2.2% 0.3%

Average return in down months -2.3% 1.1%

Maximum Drawdown* 18.4% 5.7%

Standard Deviation^ 10.5% 6.1%

*Based on weekly performance ^Since Inception

Monthly Performance - Class A

Sector Exposures (Gross and Net %)

Portfolio Attributes

3.8%

1.5%

7.0%

20.6%

0.0%

2.2%

16.2%

10.6%

20.7%

19.0%

-3.8%

-1.5%

-7.0%

-20.6%

0.0%

-2.2%

-16.3%

-10.5%

-20.7%

-19.0%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

-0.1%

0.1%

0.0%

0.0%

-40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0%

Utilities

Telecom.

Info Tech

Financials

Health Care

Cons. Staples

Con. Disc.

Industrials

Basic Materials

EnergyNet



Performance

The fund invests primarily in dividend-paying global equities of all market capitalizations with a minimum 10% weight in fixed income. The portfolio manager mainly selects equities generating earnings growth, cash flow growth, and high returns on equity that are reasonably valued and offer a high dividend yield. By targeting companies that pay out a low percentage of their earnings, yield stability is increased. With respect to the fundamentals, companies in the portfolio tend to exhibit high quality management teams, clean balance sheets, and strengthening competitive positions in their industry. The fund is most suited to investors requiring a high, stable yield paid monthly with long-term growth upside and diversification from participation in the global equity market.

Norrep Global Income Growth ClassMonthly Fund Summary as at August 31, 2013

Canadian investors gain currency-hedged geographic and sector diversification into the other 95% of the world’s markets

Global equity balanced fund investing primarily in dividend-paying equities with a minimum 10% weight in fixed income

Over and above the stable $0.04 per share monthly yield, investors retain long-term growth upside in the global equity market

2013 Paid Distributions $0.32


*Annualized

2011^ 2012

MF Series -9.7% 11.8%


Deviation




18

9

1 month 3 month 6 month YTD 1 year 2 year* Inception*

MF Series -1.8% 1.3% 6.3% 12.6% 17.6% 12.8% 5.9%

F Series -1.7% 1.6% 6.8% 13.3% 18.7% 14.0% 6.9%


$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

2012 2013

Value of $10,000 Invested in Norrep Global Income Growth at Inception




Fund Codes NRP1000 (F) NRP1001 (FE) NRP1002 (LSC)



CIFSC Category

Global equity balanced


2.00%*

Benchmark Index

75% MSCI World Index and 25% DEX Universe Bond Index

Portfolio Manager


Auditor KPMG LLP





North America (62.1%)

Europe (33.0%)

Asia Pacific (ex. Japan) (4.9%)

Japan (0.0%)

Anheuser-Busch InBev N.V. Manulife Financial Corporation

Brinker International Inc. RTL-Westcan Limited Partnership

Eaton Corp. St. Jude Medical, Inc.

JPMorgan Chase & Co. United Technologies Corporation

L Brands Inc. Wells Fargo & Company


Sect

ors


Current Year P/E Current Year ROE Current Year EV/EBITDA Current Year D/E Yield

15.2x 15.3% 9.2x 0.97 4.7%


Source: Capital IQ

Com

posi

tion


Geo

grap

hic


0

2

4

6

8

10

12

14

16


2

7

16

2

Norrep Global IG -MF

Common Stock (82.7%)

Bonds (16.5%)

Cash (0.8%)

Energy (2.5%)Basic Materials (2.2%)Industrials (17.4%)Consumer Discretionary (12.9%)Consumer Staples (8.5%)Healthcare (9.1%)Financials (26.0%)Information Technology (4.1%)Fixed Income (16.5%)Net Cash (0.8%)



*Annualized.

Performance

2011^ 2012

MF Series 3.3% 9.8%


Deviation




13

10

The fund invests ~75% of its portfolio in income-producing securities to generate a 4% targeted annualized distribution paid to investors quarterly. The distribution is made in a tax-advantaged form to increase after tax return. The remaining ~25% focuses on high value, economically-sensitive equities with solid balance sheets and competitive metrics. Return potential is strengthened by a broad investment mandate allowing the fund to access securities offering the best value in Canada and abroad. The fund is best suited to investors with a high tolerance for volatility who are interested in an active investment approach that capitalizes on the changing macroeconomic environment.

Norrep Tactical Opportunities ClassMonthly Fund Summary as at August 31, 2013

1 month 3 month 6 month YTD 1 year Inception*

MF Series 2.5% 5.2% 10.0% 15.1% 26.2% 14.6%

F Series 2.6% 5.0% 10.4% 15.8% 27.3% 15.7%

^ 2011 return begins with September 16 inception. 1 Distribution of 1.0% per quarter.


Categorized as a tactical balanced fund with a broad mandate to invest in the best risk/reward opportunities in Canada and abroad

Investors benefit from a portfolio component of up to ten, heavily researched, contrarian ideas

Investors receive a shock absorber from the targeted 4% annualized tax-advantaged yield



$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

2012 2013

Value of $10,000 Invested in Norrep Tactical Opportunities at Inception






CIFSC Category

Tactical Balanced


2.00%*

Benchmark Index

60% S&P/TSX TotalReturn Index, 20% Russell 3000 Index,20% DEX UniverseBond Index

Portfolio Manager


Auditor KPMG LLP





Absolute Software Corporation Laurentian Bank of Canada

Canadian Imperial Bank of Commerce iShares U.S. Preferred Stock Index

CIT Group Inc. Norrep High Yield Class Series O

Crescent Point Energy Corp. Suncor Energy Inc.

InnVest REIT Teck Resources Limited




Source: CPMS (of covered securities)



0

1

2

3

4

5

6

7

8

9


1

9 9

4

Norrep Tactical -MF

Equi

ty S

ecto

rs

Com

posi

tion

Equities (80.5%)Fixed Income (13.6%)Cash (5.9%)

Energy (18.5%)Industrials (9.8%)Consumer Discretionary (-3.7%)Financials (47.2%)Information Technology (8.7%)Fixed Income (13.6%)Net Cash (5.9%)

Trailing P/E Trailing ROE Trailing P/CF Cash Flow/Debt

17.7x 10.4% 7.1x 0.23


The fund invests primarily in high yield corporate bonds and floating-rate senior secured loans to provide investors with a stable stream of monthly cash distributions. Distributions are paid in a tax-advantaged form to increase investors’ after tax return compared to heavily-taxed interest income distributions from traditional options. The fund may also invest in government bonds, investment grade corporate bonds, convertible bonds, and similar yield-paying securities. The portfolio manager selects securities based on top-down macroeconomic analysis blended with in-depth analysis of the issuer’s entire capital structure. The fund is most suited to investors requiring a high, stable yield paid monthly without sacrificing long-term capital gains potential.

Norrep High Yield ClassMonthly Fund Summary as at August 31, 2013

Capital gains potential over and above the stable stream of $0.06 per share monthly tax-advantaged distributions ($0.72 annualized)

Fixed income fund with a unique strategy of investing in both floating rate senior secured loans and high yield corporate bonds

Take advantage of an appealing risk reward environment where corporate default rates are at historical lows



NAV/Unit: MF Series $9.28 F Series $9.52

*Annualized

Performance

2011^ 2012

MF Series -1.5% 7.6%


Deviation




21

6

1 month 3 month 6 month YTD 1 year 2 year* Inception*

MF Series 0.2% 0.4% 2.1% 3.9% 7.6% 6.1% 4.4%

F Series 0.3% 0.7% 2.7% 4.6% 8.7% 7.2% 5.4%



$8,000

$9,000

$10,000

$11,000

$12,000

2012 2013

Value of $10,000 Invested in the Norrep High Yield Class at Inception






CIFSC Category

High yield fixed income


2.00%*

Benchmark Index

Merrill Lynch Canada High Yield Canadian Issuers Index

Portfolio Manager


Auditor KPMG LLP




Portfolio Composition


Current Yield 7.7% Modified Duration 1.9 years

Yield to Maturity 7.4% Holdings 62

Spread 618 bps

Portfolio Ratings

Government bonds 0.0%

Investment grade bonds 0.0%

High yield bonds 43.8%

Senior loans 50.3%

Asset backed securities 0.0%

Net cash 5.9%

Short Positions 0.0%

Total 100.0%

0

5

10

15

20

25


0

6

21

0

Norrep High Yield- MF



BB (17.2%)

B (49.3%)

CCC (21.2%)

Not Rated (6.4%)

Net Cash (5.9%)

1.877.431.1407www.norrep.comNorrep Short Term Income

The fund is designed to provide unitholders with a portfolio of debt securities targeting a net 3% to 4% annualized yield and a duration below 3 years. The fund’s main objective is to achieve the target return while maintaining a high level of capital preservation and providing minimal unit price volatility. The portfolio will be invested across a wide variety of debt securities including government bonds, corporate bonds and floating rate senior secured loans. The portfolio manager selects securities by looking across the North American debt spectrum and investing in those that provide the best risk adjusted returns. This fund offers investors an alternative to other short-term income products such as government bonds which are currently generating yields near historical lows.

Norrep Short Term Income Fund Monthly Fund Summary as at August 31, 2013



NAV/Unit: MF Series $10.02 F Series $10.13

*Annualized

Performance

2011^ 2012

MF Series 0.7% 4.6%


Deviation




22

1

1 month 3 month 6 month YTD 1 year Inception*

MF Series 0.0% -0.5% 0.7% 1.9% 4.1% 3.7%

F Series 0.1% -0.4% 1.0% 2.2% 4.6% 4.2%

^ 2011 return begins with September 16 inception

$9,000

$9,500

$10,000

$10,500

$11,000

2012 2013

Value of $10,000 Invested in Norrep Short Term Income Fund at Inception

Standard deviation is a measurement of investment volatility (up and down) that illustrates how much dispersion there is from the mean. The lower the standard deviation the closer the data points are to the mean (average).

Fund pays a stable monthly distribution of $0.03 per unit

Fixed income fund investing in a wide range of debt securities that target a net 3% to 4% annualized return

Provides investors with a higher return than traditional short term income alternatives



Norrep Short Term Income

Fund Codes NRP1100 (F) NRP1101 (FE)



CIFSC Category

Miscellaneous - Income and Real Property


1.25%

Portfolio Manager


Auditor KPMG LLP




Portfolio Composition


Portfolio Ratings

0

5

10

15

20

25


01

22

0

Norrep STIncome - MF


Government bonds 1.9%

Investment grade bonds 13.6%

High yield bonds 34.6%

Senior loans 45.4%

Asset backed securities 1.6%

Net cash 2.9%

Total 100.0%

AAA (0.2%)

AA (1.7%)

A (2.2%)

BBB (12.2%)

BB (37.8%)

B (37.9%)

Not Rated (5.1%)

Net Cash (2.9%)

Current Yield 5.8% Modified Duration 2.3 years

Yield to Maturity 5.4% Holdings 54

Spread 374 bps



*Annualized

Performance1

2006 2007 2008 2009 2010 2011 2012

MF Series 12.4% -15.6% -19.0% 6.3% 22.5% -12.3% 17.8%


Deviation




52

40

The Fund seeks a balance of current income and long-term capital appreciation by investing in a diversified portfolio of primarily dividend-paying U.S. equities of all market capitalizations. Security selection follows a bottom-up approach combining aspects of both fundamental and quantitative analysis. Quantitative techniques help identify potentially attractive securities from a large investable universe based on a combination of attributes in areas such as valuation, growth, profitability, momentum and risk. Fundamental analysis incorporates careful company specific research - evaluating the financial condition, management and prospects of each company and its industry, in relation to the overall economy. The Fund is most suited to investors requiring stable monthly income with long-term growth upside from participation in the U.S. equity markets.

Norrep US Dividend Plus ClassMonthly Fund Summary as at August 31, 2013

Offering investors valuable diversification away from Resources into sectors not well represented in Canada

A core U.S. equity fund focusing primarily on dividend payers through a unique all-cap approach

Providing investors a stable $0.035/share monthly distribution with upside participation as the U.S. market continues to recover


MF Series -1.1% 2.8% 12.8% 21.2% 28.9% 16.8% 6.9% 3.0%

F Series -1.2% 2.8% 13.0% 21.7% 29.8% 17.9% 8.0% 4.1%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

2006 2007 2008 2009 2010 2011 2012 2013

Value of $10,000 Invested in the Norrep US Dividend Plus Class at Inception



1 On January 31, 2013, the investment objective of the Norrep US Class was changed from a focus on small and micro-capitalization U.S. equities to a broader mandate focused on dividend-paying U.S. equity securities of all capitalization. If the change had been in effect prior to January 31, 2013, the Fund’s performance could have been materially different. Also on this date, the Norrep US Class was renamed the Norrep US Dividend Plus Class and its benchmark was changed to the S&P 1500 Total Return Index in Local Currency.





Inception December 31, 2005^

CIFSC Category

US equity


2.00%*

Benchmark Index

S&P Composite 1500 Total Return Index

Portfolio Manager


Auditor KPMG LLP




^ The Norrep US Class mandate changed and the fund was renamed the Norrep US Dividend Plus Class on January 31, 2013.*Does not include performance bonus.

Cal-Maine Foods Inc. Occidental Petroleum Corporation

Cinemark Holdings, Inc. St. Jude Medical Inc.

FMC Corporation State Street Corporation

International Business Machines Corp Steris Corporation

Microsoft Corporation Texas Instruments Incorporated

Top Ten Holdings as at July 31, 2013*

Sector Weightings

Trailing P/E Current Year P/E Trailing ROE Trailing P/CF

Norrep US Dividend Plus Class 18.1x 15.6x 16.3% 11.3x


Source: Capital IQ



Energy (4.9%)Basic Materials (4.3%)Industrials (4.8%)Consumer Discretionary (9.8%)Consumer Staples (10.0%)Healthcare (14.5%)Financials (20.1%)Information Technology (15.9%)Telecommunications (2.4%)Utilities (2.0%)Net Cash (11.3%)

0

5

10

15

20

25

30

35

40


16

24

36

16


US Dividend Plus -MF

Benefits of Norrep Opportunities Corp.Norrep Opportunities Corp. is a multi-class corporation offering the benefit of tax-deferred switches between all open investment products under the Norrep Opportunities umbrella. All of the funds are RSP eligible and TFSA eligible.

The Norrep Market Neutral Income Fund resides outside of this corporate class structure and is available to accredited investors with a minimum investment of $5,000 or non-accredited investors with a $150,000 minimum investment by offering memorandum.

The Norrep Short Term Income Fund also resides outside the corporate class structure but is available to all investors for purchase with an initial minimum investment of $5,000 and subsequent purchases of $100. The same minimums apply to funds within the Corporate Class structure.

CONTACT US

Hesperian Capital Management Ltd. The Norrep Group of Funds

CALGARY OFFICE

175, 601 – 10 Avenue SWCalgary, Alberta T2R 0B2

TORONTO OFFICE

3730, 77 King Street WestToronto, ON M5K 2A1

Toll-free [email protected]

www.norrep.com

Documents

Norrep Funds