NEI, NORTHWEST AND ETHICAL FUNDS - Portfolios Prospectus Jun 26... · NEI, NORTHWEST AND ETHICAL...

NEI, NORTHWEST AND ETHICAL FUNDS

Simplified Prospectus

June 26, 2014

OFFERING SERIES A, B, T, F, I, P AND PF UNITS OR SHARES UNLESS OTHERWISE NOTED.

NEI FUNDS

(Offering Series A, F and I, except where noted, and Series P, PF and

T where noted)

NEI Money Market Fund1

NEI Canadian Bond Fund

NEI Income Fund

NEI Global Total Return Bond Fund2,5

ETHICAL FUNDS

(Offering Series A, F and I and Series P and PF where noted)

NEI Ethical Balanced Fund

NEI Ethical Canadian Equity Fund

NEI Ethical Special Equity Fund

NEI Ethical American Multi-Strategy Fund

NEI Ethical Global Dividend Fund5

NEI Ethical Global Equity Fund

NEI Ethical International Equity Fund

NORTHWEST FUNDS

(Offering Series A, F and I, and Series T, P and PF where noted)

NEI Northwest Specialty High Yield Bond Fund2

NEI Northwest Specialty Global High Yield Bond Fund2

NEI Northwest Tactical Yield Fund2,5

NEI Northwest Growth and Income Fund2

NEI Northwest Macro Canadian Asset Allocation Fund2,5

NEI Northwest Macro Canadian Equity Fund

NEI Northwest Canadian Dividend Fund2

NEI Northwest Canadian Equity Fund

NEI Northwest Global Equity Fund

NEI Northwest U.S. Dividend Fund5

NEI Northwest Emerging Markets Fund

NEI Northwest Specialty Equity Fund

1. Does not offer Series F units or shares

2. Also offers Series T units or shares

3. Does not offer Series B units

4. Also offers Series I shares

5. Also offers Series P and Series PF units

SELECT PORTFOLIOS

(Offering Series A, B and F, except where noted)

NEI Ethical Select Income Portfolio

NEI Ethical Select Conservative Portfolio3

NEI Ethical Select Balanced Portfolio3

NEI Ethical Select Growth Portfolio3

NEI Select Conservative Portfolio

NEI Select Canadian Balanced Portfolio

NEI Select Canadian Growth Portfolio

NEI Select Global Balanced Portfolio3

NEI Select Global Growth Portfolio3

NEI Select Global Maximum Growth Portfolio

NEI CORPORATE CLASS FUNDS(Offering Series A and F, except where noted, and Series I and T

where noted)

NEI Northwest Short Term Corporate Class1

NEI Northwest Tactical Yield Corporate Class2

NEI Northwest Growth and Income Corporate Class2

NEI Northwest Macro Canadian Asset Allocation Corporate Class2

NEI Northwest Macro Canadian Equity Corporate ClassNEI Northwest Enhanced Yield Equity Corporate Class4

NEI Northwest Canadian Dividend Corporate ClassNEI Northwest Canadian Equity Corporate ClassNEI Northwest U.S. Dividend Corporate ClassNEI Northwest Emerging Markets Corporate ClassNEI Northwest Global Equity Corporate ClassNEI Northwest Specialty Equity Corporate ClassNEI Select Conservative Corporate Class Portfolio2

NEI Select Balanced Corporate Class Portfolio2

NEI Select Growth Corporate Class PortfolioNEI Select Global Maximum Growth Corporate Class Portfolio

No securities regulatory authority has expressed an opinion about the merits of these units and shares. To claim that they have is anoffence.

The Funds and the securities of the Funds offered under this simplified prospectus are not registered with the United StatesSecurities and Exchange Commission and they are sold in the United States only in reliance on exemptions from registration.

TABLE OF CONTENTS

INTRODUCTION..................................................................................................................................4

WHAT IS A MUTUAL FUND AND WHAT ARE THE RISKS OF INVESTING IN A MUTUAL FUND?.................5

ORGANIZATION AND MANAGEMENT OF THE FUNDS......................................................................... 10

PURCHASES, SWITCHES, CONVERSIONS AND REDEMPTIONS ............................................................. 11

OPTIONAL SERVICES......................................................................................................................... 18

FEES AND EXPENSES ......................................................................................................................... 19

IMPACT OF SALES CHARGES.............................................................................................................. 25

DEALER COMPENSATION.................................................................................................................. 26

DEALER COMPENSATION FROM MANAGEMENT FEES........................................................................ 28

INCOME TAX CONSIDERATIONS FOR INVESTORS............................................................................... 28

WHAT ARE YOUR LEGAL RIGHTS?...................................................................................................... 30

ADDITIONAL INFORMATION ............................................................................................................. 30

SPECIFIC INFORMATION ABOUT EACH OF THE MUTUAL FUNDS DESCRIBED IN THIS DOCUMENT ........ 32

NEI MONEY MARKET FUND............................................................................................................... 33

NEI CANADIAN BOND FUND ............................................................................................................. 35

NEI INCOME FUND ........................................................................................................................... 38

NEI GLOBAL TOTAL RETURN BOND FUND.......................................................................................... 41

NEI ETHICAL BALANCED FUND .......................................................................................................... 45

NEI ETHICAL CANADIAN EQUITY FUND.............................................................................................. 48

NEI ETHICAL SPECIAL EQUITY FUND .................................................................................................. 51

NEI ETHICAL AMERICAN MULTI-STRATEGY FUND .............................................................................. 53

NEI ETHICAL GLOBAL DIVIDEND FUND .............................................................................................. 55

NEI ETHICAL GLOBAL EQUITY FUND .................................................................................................. 58

NEI ETHICAL INTERNATIONAL EQUITY FUND ..................................................................................... 60

NEI NORTHWEST SPECIALTY HIGH YIELD BOND FUND........................................................................ 63

NEI NORTHWEST SPECIALTY GLOBAL HIGH YIELD BOND FUND........................................................... 66

NEI NORTHWEST TACTICAL YIELD FUND............................................................................................ 69

NEI NORTHWEST GROWTH AND INCOME FUND................................................................................ 72

NEI NORTHWEST MACRO CANADIAN ASSET ALLOCATION FUND........................................................ 75

NEI NORTHWEST MACRO CANADIAN EQUITY FUND.......................................................................... 79

NEI NORTHWEST CANADIAN DIVIDEND FUND................................................................................... 82

NEI NORTHWEST CANADIAN EQUITY FUND....................................................................................... 85

NEI NORTHWEST GLOBAL EQUITY FUND ........................................................................................... 87

NEI NORTHWEST U.S. DIVIDEND FUND ............................................................................................. 90

NEI NORTHWEST EMERGING MARKETS FUND ................................................................................... 93

NEI NORTHWEST SPECIALTY EQUITY FUND........................................................................................ 96

NEI ETHICAL SELECT INCOME PORTFOLIO.......................................................................................... 98

NEI ETHICAL SELECT CONSERVATIVE PORTFOLIO ............................................................................. 101

NEI ETHICAL SELECT BALANCED PORTFOLIO .................................................................................... 104

NEI ETHICAL SELECT GROWTH PORTFOLIO ...................................................................................... 107

NEI SELECT CONSERVATIVE PORTFOLIO........................................................................................... 110

NEI SELECT CANADIAN BALANCED PORTFOLIO ................................................................................ 113

NEI SELECT CANADIAN GROWTH PORTFOLIO .................................................................................. 116

NEI SELECT GLOBAL BALANCED PORTFOLIO..................................................................................... 119

NEI SELECT GLOBAL GROWTH PORTFOLIO....................................................................................... 122

NEI SELECT GLOBAL MAXIMUM GROWTH PORTFOLIO..................................................................... 125

NEI NORTHWEST SHORT TERM CORPORATE CLASS.......................................................................... 128

NEI NORTHWEST TACTICAL YIELD CORPORATE CLASS...................................................................... 130

NEI NORTHWEST GROWTH AND INCOME CORPORATE CLASS.......................................................... 134

NEI NORTHWEST MACRO CANADIAN ASSET ALLOCATION CORPORATE CLASS.................................. 137

NEI NORTHWEST MACRO CANADIAN EQUITY CORPORATE CLASS .................................................... 140

NEI NORTHWEST ENHANCED YIELD EQUITY CORPORATE CLASS....................................................... 143

NEI NORTHWEST CANADIAN DIVIDEND CORPORATE CLASS............................................................. 146

NEI NORTHWEST CANADIAN EQUITY CORPORATE CLASS................................................................. 149

NEI NORTHWEST U.S. DIVIDEND CORPORATE CLASS ....................................................................... 151

NEI NORTHWEST EMERGING MARKETS CORPORATE CLASS ............................................................. 154

NEI NORTHWEST GLOBAL EQUITY CORPORATE CLASS ..................................................................... 157

NEI NORTHWEST SPECIALTY EQUITY CORPORATE CLASS.................................................................. 159

NEI SELECT CONSERVATIVE CORPORATE CLASS PORTFOLIO............................................................. 161

NEI SELECT BALANCED CORPORATE CLASS PORTFOLIO .................................................................... 164

NEI SELECT GROWTH CORPORATE CLASS PORTFOLIO ...................................................................... 167

NEI SELECT GLOBAL MAXIMUM GROWTH CORPORATE CLASS PORTFOLIO ....................................... 170

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INTRODUCTION

This simplified prospectus contains selected important information to help you make an informed investment decisionabout the family of NEI, Northwest and Ethical Funds, which includes all of the funds as listed on the front cover of thisdocument (collectively the “Funds” and individually a “Fund”), and to help you understand your rights as an investor.

Throughout this simplified prospectus:

we, us, the Manager, and our refer to Northwest & Ethical Investments L.P., the manager of the Funds, acting throughits general partner, Northwest & Ethical Investments Inc.;

you, unitholders, shareholders and securityholders refer to everyone who invests in the Funds;

NEI Funds refers to the Funds listed under the heading “NEI Funds” on the front cover of this document;

Ethical Funds refers to the Funds listed under the heading “Ethical Funds” on the front cover of this document;

Northwest Funds refers to the Funds listed under the heading “Northwest Funds” on the front cover of this document;

Corporate Funds refers to the Funds listed under the heading “NEI Corporate Class Funds” on the front cover of thisdocument, which are each a separate class of special shares of Northwest Corporate Class Inc.;

Trust Funds refers to the Funds that are organized as trusts;

Portfolios refers to the Funds listed under the heading “Select Portfolios” on the front cover of this document andinclude the NEI Select Portfolios and the NEI Ethical Select Portfolios, which are the two groups of managed solutionsoffered within the Northwest Funds and the Ethical Funds, respectively;

Corporate Class Portfolios refers to the Corporate Funds that are portfolios; and

units refers to units of a Fund, or shares of a Corporate Fund.

This document is divided into two parts:

Part A, the first part, from pages 4 to 32 contains general information about the Funds

Part B, the second part, from pages 33 to 172 contains specific information about each of the Funds

Additional information about each Fund is available in the following documents:

the fund facts document;

the annual information form;

the most recently filed annual financial statements;

any interim financial report filed after those annual financial statements;

the most recently filed annual management report of fund performance; and

any interim management report of fund performance filed after that annual management report of fund performance.

These documents are incorporated by reference into this simplified prospectus, which means they legally form part of thissimplified prospectus just as if they were printed in it.

You can get a free copy of these documents, at your request, and at no cost by calling 1-888-809-3333 or by asking yourMutual Funds Investment Dealer or representative. You can also find these documents on our website atwww.NEIinvestments.com.

These documents and other information about the Funds are also available at www.sedar.com.

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WHAT IS A MUTUAL FUND AND WHAT ARE THE RISKS OF INVESTING IN A MUTUAL FUND?

A mutual fund is an investment vehicle created to permit money contributed by people with similar investment objectivesto be pooled. People who contribute money become securityholders of the mutual fund. Mutual fund securityholdersshare (in proportion to the units they own) the mutual fund’s income, expenses, and the gains and losses the mutual fundmakes on its investments. The value of an investment in a mutual fund is realized by redeeming the units held. Where amutual fund has more than one series of securities, each series shares in the mutual fund’s income, expenses and anygains and losses allocated to the series generally in proportion to the value of each series as of the date of calculation.

A mutual fund may own different types of investments - stocks, bonds, cash, and derivatives - all depending upon itsinvestment objectives. The value of these investments will change from day to day, reflecting changes in interest rates,economic conditions, and market and company news, with these and other factors affecting mutual funds with varyingdegrees of impact. For example, mutual funds which invest in equity securities will be greatly affected by changes in theequity markets generally while a mutual fund investing solely in bonds would not. As a result, the value of a mutual fundmay go up and down, and the value of your investment may be more or less when you redeem it than when youpurchased it.

The specific investment objectives and strategies of the Funds are separately described in Part B of this document underthe heading “What Does the Fund Invest In?”

We do not guarantee that the full amount of your original investment in any of the Funds will be returned to you. Unlikebank accounts or GICs, mutual fund units are not covered by the Canada Deposit Insurance Corporation or any othergovernment deposit insurer.

Under exceptional circumstances, a mutual fund may suspend redemptions of units. Please see page 17 “Redemptions”.

WHAT ARE THE RISKS OF INVESTING IN A MUTUAL FUND?

Everyone has a different tolerance for risk. Some individuals are significantly more conservative than others when makingtheir investment decisions. It is important to take into account your own comfort with risk as well as the amount of risksuitable for your financial goals. In addition, you should carefully discuss your particular investment needs and goals withyour financial advisor in order to not only determine the optimal risk levels for your investments generally but also howthese and other mutual funds would be consistent with such levels.

The risks associated with investing in a mutual fund are the risks associated with the securities in which the mutual fundinvests. These risks are described further below. The specific risks applicable to each Fund are separately described in PartB of this document for each Fund under the heading “What are the Risks of Investing in the Fund?”

Asset Allocation Risk:

Funds and Portfolios that use a "fund of fund" structure allocate their assets among underlying funds with the goal ofensuring that the asset class, investment style, geographic and market capitalization allocation for each Fund or Portfoliois optimal. Balanced Funds employ a similar asset allocation methodology through direct investment in underlying assetclasses. There can be no guarantee that a Fund or Portfolio will allocate its assets successfully. Similarly, there can be noguarantee against losses resulting from the asset allocation.

Capital Erosion Risk:

In periods of declining markets the net asset value of a fund may be reduced. In situations where a fund’s fixeddistributions exceed net income and realized capital gains, the distributions may consist in whole or in part of a return ofcapital, which could diminish the fund’s ability to generate future earnings.

Commodity Risk:

Mutual funds that invest in commodities such as gold, silver, and other precious metals will be affected by changes incommodity prices. Commodity prices tend to be cyclical and may experience significant price fluctuations over a shortperiod of time as a result of supply and demand, speculation, political, international monetary, and other macroeconomicfactors.

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Certain Funds may invest in precious metals, including gold, silver or permitted gold or silver certificates, or underlyingfunds including exchange traded funds (“ETFs”), the investment of which includes precious metals. Direct purchases ofprecious metals may generate higher custody and transaction costs than other investments. Precious metals andapproved certificates do not generally provide an income stream. A Fund will only earn money on these investments tothe extent that they are sold at a price higher than their cost.

Also, mutual funds that invest in companies engaged in the energy and/or natural resources industries, such as gold,silver, platinum, oil and gas, or other commodity focused industries will be affected by changes in the price ofcommodities which can fluctuate significantly in short time periods. Commodity prices can change as a result of a numberof factors, including supply and demand, speculation, government and regulatory activities, international monetary andpolitical factors, central bank activity and changes in interest rates and currency values.

Concentration Risk:

If the holdings of a mutual fund in one issuer exceed 10% of the fund’s assets, it is possible that the fund may experiencereduced liquidity and diversification. Additionally, if the fund holds significant investments in a few companies, changes inthe value of the securities of those companies may increase the volatility of the net asset value of the fund.

Credit Risk:

The value of fixed income securities depends, in part, on the perceived ability of the government or company which issuedthe securities to pay the interest and to repay the original investments. Securities issued by issuers who have a low creditrating are considered to have a higher credit risk than securities issued by issuers who have a high credit rating.

Currency Risk:

The value of securities denominated in a currency other than Canadian dollars will be affected by changes in the value ofthe Canadian dollar in relation to the value of the currency in which the security is denominated.

Derivative Risk:

Securities legislation sets limits on the amount and types of derivative instruments that mutual funds can hold. Generally,it depends on whether the derivative is being used for hedging purposes (to mitigate market or portfolio risk) or for non-hedging purposes (to enhance returns). Either way, derivatives involve risk as mentioned below. Examples of derivativesthat may be used include but are not limited to options, futures, swaps or forward contracts.

Use of Options - One type of derivative is an option. Options can be used for hedging as described above. A fund maywrite covered call options on securities owned by that Fund. The writing of covered call options provides a fund with apremium and provides the purchaser with the right to exercise the option to acquire the underlying securities at aspecified exercise price. If the market price of the security goes above the exercise price, the fund will likely notparticipate in a gain above the exercise price on a security subject to a call option because the holder of the option willlikely exercise the option. The premiums received on writing covered call options may not exceed the returns thatwould have resulted if a fund had remained directly invested in the securities subject to call options. The use ofoptions may also limit or reduce the total returns of a fund if the expectations concerning future events or marketconditions prove to be incorrect. A fund remains subject to the full risk of its investment position if the market price ofsecurities in its portfolio decline. There can be no assurance that a liquid exchange or over-the-counter (“OTC”) marketwill exist to enable a fund to write covered call options on desired terms or to close out option positions if it wishes todo so. In addition, exchanges may suspend the trading of options in volatile markets. If a fund is unable to repurchase acall option that is in-the-money, it will be unable to realize its profits or limit its losses until the option it has writtenbecomes exercisable or expires. If the fund is unable to settle an in-the-money option in cash, it may be forced todeliver the underlying equity securities. This could result in the fund being forced to dispose of equity securities itwould otherwise wish to continue to hold.

Non-Hedging Strategies - Although derivatives used for non-hedging purposes may offer the potential for increasedreturns, such as benefiting from lower transaction costs than would otherwise arise through direct investments, theyalso expose a fund to risk. In addition to the risks described below, there is the risk that the underlying security orinvestment on which the derivative is based, and the derivative itself, may not perform the way it is expected toperform. If this happens, a fund may lose money on its investments.

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Hedging Strategies - A hedging strategy may be used by a mutual fund in an effort to reduce the overall risk of one ormore positions in a fund’s portfolio such as currency fluctuations (currency hedging) or to reduce the risk of a marketor portfolio. However, there can be no assurance that a fund’s hedging transactions will be effective. There may be animperfect historical correlation between changes in the market value or attribute of the investment (includingcurrency risk) being hedged and the instrument with which the investment or attribute is hedged, and any historicalcorrelation may not continue for the period during which the hedge is in place. Hedging against a decline in the valueof a currency does not eliminate fluctuations in the prices of portfolio securities or prevent losses if the prices of suchsecurities decline. It also precludes the opportunity for gain if the value of the hedged currency should rise. Moreover,it may not be possible for a fund to hedge against generally anticipated devaluations, as the fund may not be able tocontract to sell the currency at a price above the devaluation level generally anticipated.

Whether derivatives are used as part of either hedging or non-hedging strategies, there can be no assurance that a liquidexchange or over-the-counter (“OTC”) market will exist to permit a mutual fund to realize its profits or limit its losses byclosing out positions. A fund is subject to the credit risk that its counterparty (whether a clearing corporation in the case ofexchange traded instruments or other third party in the case of OTC traded instruments) may be unable to meet itsobligations. In addition, there is the risk of loss by a fund of margin deposits in the event of bankruptcy of a dealer withwhom the fund has an open derivative position. Derivative instruments traded in foreign markets may offer less liquidityand greater credit risk than comparable instruments traded in North American markets. The ability of a fund to close outits positions may also be affected by exchange-imposed daily trading limits on exchange-traded derivatives.

Emerging Markets Risk:

In emerging market countries, securities markets may be smaller than in more developed countries, making it moredifficult to sell securities in order to take profits or avoid losses. Companies in these markets may have limited productlines, markets or resources, making it difficult to measure the value of the company. Political instability and possiblecorruption, as well as lower standards of regulation for business practices increase the possibility of fraud and other legalproblems. Emerging markets investments may increase a fund’s volatility.

Exchange Traded Funds Risk:

A fund may invest in exchange traded funds (“ETFs”) that seek to provide returns similar to a particular benchmark, suchas a stock market index. These ETFs may not achieve the same return as their benchmark due to differences in the actualweighting of securities held in the ETF versus the weightings in the actual benchmark, and due to the operating andadministrative expenses of the ETF.

Foreign Security Risk:

The value of foreign securities will be affected by factors affecting other similar securities and could also be affected byadditional factors such as the absence of timely information, less stringent auditing standards and less liquid markets. Aswell, different financial, political and social factors may involve risk not typically associated with investing in Canada.

Fund of Fund Risk:

Certain Funds may invest in securities of underlying mutual funds managed by the Manager. The proportions and types ofunderlying funds held by a Fund will vary according to the risk and investment objective of the Fund. Pursuant to therequirements of applicable securities legislation, no Fund will vote any of the securities it holds in an underlying fundmanaged by us or any of our affiliates and associates. However, we may in our sole discretion, arrange for you to voteyour share of those securities of the underlying fund. To the extent that the Fund invests in underlying funds, it has thesame risks as the underlying funds.

Interest Rate Risk:

The value of fixed income securities will generally rise if interest rates fall and will generally fall if interest rates rise.Changes in interest rates may also affect the value of equity securities.

8

Investment Trust Risk:

A mutual fund may invest in real estate, royalty, income and other investment trusts which are investment vehicles in theform of trusts rather than corporations. To the extent that claims, whether in contract, in tort, or as a result of tax orstatutory liability, against an investment trust are not satisfied by the trust, investors in the investment trust, including afund that may have invested in such investment trust, could be held liable for such obligations. Investment trusts generallyseek to make this risk remote in the case of contracts by including provisions in their agreements that the obligations ofthe investment trust will not be binding on investors personally. However, investment trusts could still have exposure todamage claims such as personal injury and environmental claims.

Certain jurisdictions have enacted legislation to protect investors in investment trusts from the possibility of such liability.Investors in most Canadian investment trusts have been placed on the same footing as shareholders of Canadiancorporations which receive the protection of statutorily mandated limited liability in several provincial jurisdictions.However, the extent to which a fund remains at risk for the obligations of investment trusts ultimately depends on thelocal laws of the jurisdictions where the fund invests in investment trusts.

Large Transaction Risk:

Where a significant portion of the securities of a mutual fund are held by a securityholder, including another mutual fund,there is the risk that such securityholder may purchase or redeem a substantial number of securities in a short period oftime which may make the execution of the mutual fund’s investment strategy difficult and thereby negatively affect itsinvestment performance. The mutual fund may need to purchase or sell significant investments for or from its portfolio atprices less advantageous than might be obtained in respect of purchases or sales of lesser amounts of portfolioinvestments, which could negatively affect the mutual fund.

Liquidity Risk:

Liquidity risk is the possibility that a mutual fund will not be able to convert its investments to cash when it needs to. Thevalue of securities which are not regularly traded (less liquid) will generally be subject to greater fluctuations.

Multiple Class Risk:

Each of the Corporate Funds is a class of shares of Northwest Corporate Class Inc. (the “Corporation”). Each CorporateFund will be charged any expenses which are specifically attributable to that Corporate Fund. However, those expensescontinue to be a liability of the Corporation as a whole and therefore, if there are insufficient assets of a Corporate Fundto pay those expenses, the remaining assets of the Corporation, being the other Corporate Funds, would be used to paythose excess expenses. In such circumstances, the share price of the other Corporate Funds would decline. TheCorporation may, without shareholder approval, create and issue additional Corporate Funds.

Multiple Series Risk:

Each series of securities of a Fund will be charged, as a separate series, any expenses and administrative fees which arespecifically attributable to that series. However, those expenses do continue to be a liability of the Fund as a whole andtherefore, if there are insufficient assets of a series to pay those expenses, the remaining assets of the Fund would beused to pay those excess expenses. In such circumstances, the unit price of the other series would decline.

Securities Lending, Repurchase, and Reverse Repurchase Risk:

Certain Funds may enter into securities lending, repurchase, and reverse repurchase transactions. In a securities lendingtransaction, a fund lends its securities through an authorized agent to another party (the “counterparty”) in exchange for afee and a form of acceptable collateral. In a repurchase transaction, a fund sells its securities for cash through anauthorized agent while at the same time it assumes an obligation to repurchase the same securities for cash (usually at alower price) at a later date. In a reverse repurchase transaction, a fund buys securities for cash while at the same time itagrees to resell the same securities for cash (usually at a higher price) at a later date. We have set out below some of thebasic risks associated with these transaction types.

The counterparty may default under the agreement or go bankrupt and the fund would be forced to make a claim torecover its investment.

9

The fund could incur a loss if the value of the securities loaned (in a securities lending transaction) or sold (in a repurchasetransaction) increases in value relative to the value of the collateral held by the fund.

The fund could incur a loss if the value of the securities it has purchased (in a reverse repurchase transaction) decreasesbelow the value of cash paid by the fund to the counterparty.

Short Selling Risk:

Because a “short sale” involves a fund borrowing securities from a lender and selling those securities in the open market,the fund will generally see a profit if the securities decrease in value and will generally see a loss if the securities increasein value. Unlike a purchase of securities, where the maximum amount of the loss is limited to the amount invested, thereis theoretically no limit to a fund’s exposure on a short sale. In addition, the securities loaned for the short sale may berecalled by the lender, and limitations on availability of securities may limit the fund’s freedom of action in connectionwith short sales.

Smaller Company Risk:

Investments in smaller, less established companies may involve greater risks than investments in larger, more establishedcompanies. Smaller companies may have more limited markets and financial resources and their securities may be moresensitive to market changes.

Specific Issuer Risk:

The value of all securities will vary positively and negatively with developments within the specific companies orgovernments which issue the securities.

Stock Market Risk:

The value of most securities, in particular equity securities, changes with stock market conditions. These conditions areaffected by general economic and market conditions.

Tax Risk:

If a Trust Fund experiences a “loss restriction event” (i) the Fund will be deemed to have a year-end for tax purposes, and(ii) the Fund will become subject to the loss restriction rules generally applicable to corporations that experience anacquisition of control, including a deemed realization of any unrealized capital losses and restrictions on their ability tocarry forward losses. Generally, a Trust Fund will be subject to a loss restriction event when a person becomes a “majority-interest beneficiary” of the Fund, or a group of persons becomes a “majority-interest group of beneficiaries” of the Fund,as those terms are defined in the affiliated persons rules contained in the Tax Act, with appropriate modifications.Generally, a majority-interest beneficiary of a Trust Fund will be a beneficiary who, together with the beneficial interestsof persons and partnerships with whom the beneficiary is affiliated, has a fair market value that is greater than 50% of thefair market value of all the interests in the income or capital, respectively, in the Fund.

Additional Risks:

Any additional risks specifically related to a Fund is set out in the specific information on the Fund in this prospectus.Under exceptional circumstances, a Fund may suspend redemptions. See page 17 for details.

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ORGANIZATION AND MANAGEMENT OF THE FUNDS

Manager and Trustee

Northwest & Ethical Investments L.P.

151 Yonge Street, 12th Floor

Toronto, Ontario M5C 2W7

Tel: 416-594-6633

Fax: 416-594-3370

Toll free: 1-888-809-3333

www.NEIinvestments.com

As manager for the Funds, we manage the overall business of the Funds, includingproviding administration services, promoting sales of the Funds’ units and makingprovisions for fund accounting.

Each of the Funds is organized as a trust, other than the Corporate Funds, which areorganized as classes of shares in a corporation.

When you invest in any of the Funds, other than the Corporate Funds, you are buyingunits of a trust. When you invest in any of the Corporate Funds, you are buying shares ofa corporation. In our capacity as the Funds’ trustee and/or manager, we hold actual titleto the property in the Funds - the cash and securities - on your behalf (although physicalcustody of such property is held by the Funds’ custodian, as described below).

We are owned, directly or indirectly, as to 50% by five Provincial Credit Union Centralsand as to 50% by Fédération des caisses Desjardins du Québec.

Portfolio Managers and Portfolio Sub-Advisors


Toronto, Ontario

Portfolio Managers and Portfolio Sub-Advisors provide investment advice to the Fundsand make the day to day investment decisions for the Funds.

Some of the Funds use third party Portfolio Managers or Portfolio Sub-Advisors appointedby us to provide portfolio advice for a portion of, or for the entire portfolio.

The Fund descriptions in Part B starting on page 33 tells you who the PortfolioManager/Sub-Advisor is for each Fund.

The Portfolio Managers and Portfolio Sub-Advisors, with the exception of DesjardinsGlobal Asset Management Inc., are not related to us.

Custodian

Desjardins Trust Inc.

Montréal, Québec

Royal Canadian Mint

Ottawa, Ontario

Desjardins Trust Inc. has physical custody of the Funds’ property, excluding silver andgold.

The Royal Canadian Mint holds custody of all silver and gold where the Funds hold silverand gold.

Principal Distributor

Credential Asset Management Inc.

Vancouver, British Columbia

The principal distributor markets the Funds and sells them through Mutual FundsInvestment Specialists at credit unions across the country. Credential Asset ManagementInc. is a wholly-owned subsidiary of Credential Financial Inc. (“CFI”). CFI is owned as to50% by the same five Provincial Credit Union Centrals which also own a 50% interest inNorthwest & Ethical Investments L.P., and 50% by The CUMIS Group Limited.

Registrar


Toronto, Ontario

The registrar keeps track of the owners of units of each of the Funds and processespurchase, switch, conversion and redemption orders, issues investor account statementsand issues annual tax reporting information, if applicable. Northwest & EthicalInvestments L.P. may outsource these registrar services if it determines necessary.

Auditor

PricewaterhouseCoopers LLP

Montréal, Québec

The auditor is responsible for auditing the annual financial statements of the Funds.

Securityholders will be sent a written notice at least 60 days before the effective date ofany change in auditor of the Funds.

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Independent Review Committee

Independent Review, Inc.

Toronto, Ontario

The Independent Review Committee (the “IRC”) reviews conflict of interest mattersreferred to it by the Manager relating to the operations of the Funds. In addition, in somecircumstances, in place of obtaining securityholder approval, a Fund may be reorganizedwith, or its assets transferred to, another mutual fund managed by us or an affiliate,provided that the IRC has approved the transaction and that securityholders are sent awritten notice at least 60 days before the effective date of the change.

The IRC is composed of persons who are independent of the Manager, the Funds’ andentities related to the Manager. The costs associated with the IRC will form part of theoperating expenses of the Funds.

The IRC prepares at least annually a report of its activities for securityholders which isavailable on the Funds’ internet site at www.NEIinvestments.com, or at a securityholder’srequest at no cost by contacting the Manager at [email protected].

Additional information about the IRC, including the names of members, is available in theFunds’ annual information form.

Certain of the Funds invest all or part of their assets in other mutual funds, including funds managed by the Manager. Thesecurities held in other Funds will not be voted by the Manager, but the Manager may arrange for the securities to bevoted by the beneficial holders of securities of the Funds.

PURCHASES, SWITCHES, CONVERSIONS AND REDEMPTIONSEach of the Funds has one or more series of units and is permitted to issue an unlimited number of units of each series asindicated in the table below.

SeriesA

SeriesB

SeriesT

SeriesF

SeriesI

SeriesP

SeriesPF

NEI Money Market Fund x x

NEI Canadian Bond Fund x x x

NEI Income Fund x x x

NEI Global Total Return Bond Fund x x x x x x

NEI Ethical Balanced Fund x x x

NEI Ethical Canadian Equity Fund x x x

NEI Ethical Special Equity Fund x x x

NEI Ethical American Multi-Strategy Fund x x x

NEI Ethical Global Dividend Fund x x x x x

NEI Ethical Global Equity Fund x x x

NEI Ethical International Equity Fund x x x

NEI Northwest Specialty High Yield Bond Fund x x x x

NEI Northwest Specialty Global High Yield Bond Fund x x x x

NEI Northwest Tactical Yield Fund x x x x x x

NEI Northwest Growth and Income Fund x x x x

NEI Northwest Macro Canadian Asset Allocation Fund x x x x x x

NEI Northwest Macro Canadian Equity Fund x x x

NEI Northwest Canadian Dividend Fund x x x x

12

SeriesA

SeriesB

SeriesT

SeriesF

SeriesI

SeriesP

SeriesPF

NEI Northwest Canadian Equity Fund x x x

NEI Northwest Global Equity Fund x x x

NEI Northwest U.S. Dividend Fund x x x x x

NEI Northwest Emerging Markets Fund x x x

NEI Northwest Specialty Equity Fund x x x

NEI Ethical Select Income Portfolio x x x

NEI Ethical Select Conservative Portfolio x x

NEI Ethical Select Balanced Portfolio x x

NEI Ethical Select Growth Portfolio x x

NEI Select Conservative Portfolio x x x

NEI Select Canadian Balanced Portfolio x x x

NEI Select Canadian Growth Portfolio x x x

NEI Select Global Balanced Portfolio x x

NEI Select Global Growth Portfolio x x

NEI Select Global Maximum Growth Portfolio x x x

NEI Northwest Short Term Corporate Class x

NEI Northwest Tactical Yield Corporate Class x x x

NEI Northwest Growth and Income Corporate Class x x x

NEI Northwest Macro Canadian Asset Allocation Corporate Class x x x

NEI Northwest Macro Canadian Equity Corporate Class x x

NEI Northwest Enhanced Yield Equity Corporate Class x x x

NEI Northwest Canadian Dividend Corporate Class x x

NEI Northwest Canadian Equity Corporate Class x x

NEI Northwest U.S. Dividend Corporate Class x x

NEI Northwest Emerging Markets Corporate Class x x

NEI Northwest Global Equity Corporate Class x x

NEI Northwest Specialty Equity Corporate Class x x

NEI Select Conservative Corporate Class Portfolio x x x

NEI Select Balanced Corporate Class Portfolio x x x

NEI Select Growth Corporate Class Portfolio x x

NEI Select Global Maximum Growth Corporate Class Portfolio x x

Some Funds may offer Series I units on a private placement basis.

Series A units, Series B units, Series T units, Series F units, Series I units, Series P units and Series PF units are each targetedto a specific type of investor, as described below. All new units that you receive on reinvestment of distribution of incomeand capital or which are purchased under this simplified prospectus will have the attributes described below.

13

Series A unitsInvestors purchasing on a front-end sales charge option, deferred sales charge option, low load,low load 2, or low load 3 sales charge option basis.

Series B unitsSeries B units are available only to investors who have purchased through a registered dealer thathas entered into a Series B Distribution Agreement with us. Series B units may only be purchasedon a front-end sales charge option basis.

Series T unitsInvestors purchasing on a front-end sales charge option, deferred sales charge option, low load,low load 2, or low load 3 sales charge option basis, who also require a fixed monthly distributionamount to provide a regular income stream.

Series F units

Investors participating in programs that do not require the payment of sales charges by investorsand do not require the payment of service fees to investment professionals or dealers from us. Forthese investors, we are able to charge a lower management fee.

Potential investors include clients of “fee-for-service” financial advisors, dealer-sponsored “wrapaccounts”, and others who pay an annual fee to their dealer or investment professional insteadof transactional sales charges and whose advisor does not receive trailing commissions from us.Series F units may only be purchased on a front-end sales charge option basis.

Series I units

Institutional or other high net worth investors who negotiate and pay management fees directlyto the Manager.

These investors may also pay fees to their dealer, which they negotiate directly with their dealer.

Series P unitsInvestors who make large investments in a single Fund. Series P securities may only be purchasedon a front-end sales charge option basis.

Series PF units

Investors who make large investments in a single Fund. Investors participating in programs thatdo not require the payment of sales charges by investors and do not require the payment ofservice fees to investment professional or dealers from us. For these investors, we are able tocharge a lower management fee.

Potential investors include clients of “fee-for-service” financial advisors, dealer sponsored “wrapaccounts”, and others who pay an annual fee to their dealer or investment professional insteadof transactional sales charges and whose advisor does not receive trailing commissions from us.Series PF units may only be purchased on a front-end sales charge option basis.

Although the money you and other investors pay to purchase units is tracked on a series by series basis in each Fund’sadministrative records, the assets of each series of a Fund are combined into a single pool to create one portfolio forinvestment purposes for such Fund.

HOW WE PRICE A FUND’S UNITS

All transactions are based on the price of a Fund’s units (or, where applicable, the price of the units of a specific series)(the “NAV per series unit”). We usually calculate the NAV per series unit for each Fund after 4:00 p.m. (Toronto time) oneach day that the Toronto Stock Exchange is open for business but in some circumstances, we may calculate it at anothertime. The NAV per series unit can change daily. The NAV per series unit is the price for all purchases (including purchasesmade on the reinvestment of distributions), switches, conversions and redemptions.

We calculate a separate net asset value (“NAV”) for each series of units of a Fund by taking the series’ proportionate share ofthe Fund’s common assets less common liabilities and deducting from this amount all liabilities that relate solely to a specific

14

series. The NAV per series unit is derived by dividing the NAV of the series by the total number of series units outstanding.You will find more information about the calculation of NAV attributable to a series in the annual information form.

It is our intention to maintain the NAV per series unit of NEI Money Market Fund as near as possible to $10.

HOW TO PURCHASE, SWITCH, CONVERT AND REDEEM UNITS OF THE FUNDS

You can purchase, switch, convert and redeem units of the Funds by contacting your investment professional. If you donot have an investment professional, call us at 1-888-809-3333. We will be pleased to recommend investmentprofessionals in your area.

Once you place your order to purchase, switch, convert or redeem units, your investment professional will transmit theorder to us as soon as possible.

All Funds are offered for sale in Canadian dollars only.

HOW WE PROCESS YOUR PURCHASE, SWITCH, CONVERSION OR REDEMPTION ORDER

The issue, transfer, conversion and redemption price of the units of a Fund are based on their NAV per series unit nextdetermined after receipt by the Fund of your order. If we receive your order before 4:00 p.m. (Toronto time), yourtransaction will be processed at that day’s closing NAV per series unit. If we receive your order after 4:00 p.m. (Torontotime), your transaction will be processed at the NAV per series unit at the close of the next business day.

In the event that we determine that the NAV per series unit will be calculated at a time other than 4:00 p.m. (Torontotime) on a day that the Toronto Stock Exchange is open for business, the NAV per series unit that will be used to processthe transaction will be determined relative to that time. All orders are processed within three business days (one businessday for NEI Money Market Fund). You will find more information about purchasing, switching, converting and redeemingunits of the Funds in the annual information form.

We may accept or reject a purchase order within one business day of receiving it. If we accept your order, we will sendyou a confirmation within seven days, which is your proof of the transaction. If you sign up for a pre-authorized paymentplan (as described below under “Optional Services”), you will only receive confirmation of the first transaction made underthe plan. If we reject your order, we will return any money we have received immediately, without interest.

If settlement of your transaction fails for any reason (for example, your cheque does not clear or your cheque is returned),we will cancel your order and sell the units. If we sell the units for more than you paid, the difference will go to the Fund. Ifwe sell the units for less than you paid, you or your dealer may have to make up the difference, including any additionalcosts, expenses and lost interest.

We do not issue a certificate when you purchase units of a Fund, but you will receive a confirmation of the transaction.The account statement will be issued by us or, by your dealer if your account is held in nominee name. A record of thenumber and series of units you own and their value appears on your account statement.

For NEI Northwest Short Term Corporate Class, we will enter an order for the purchase of shares only in the case of aconversion from another Corporate Fund. Please see “Purchases” below.

For NEI Money Market Fund, we will enter an order for the purchase of units only upon receipt of cash, a cheque, a wiretransfer, an official bank cheque or money order or an electronic funds transfer or other consideration acceptable to us.Units of NEI Money Market Fund purchased will be entered and confirmed to the purchaser as credited to suchpurchaser’s account at the NAV per series unit next determined after receipt of payment. Please see “Purchases” below.

Your initial investment in the Funds must be at least $500 for all Funds, except for the Portfolios and the Corporate ClassPortfolios, where the minimum initial purchase is $25,000 and the Series P and Series PF units where the minimum initialpurchase is $100,000.

Any subsequent purchase must be at least $25 for any of the Funds. We may, at our sole discretion, change the minimumpurchase amounts from time to time without notice.

PURCHASES

Series A and Series T UnitsSeries A units and Series T units of the Funds (other than NEI Money Market Fund and NEI Northwest Short TermCorporate Class) are offered by four purchase options, as indicated below:

15

1. Front-end sales charge option – The first option is a front end sales charge option under which you pay a salescharge or commission to your dealer when you buy the units. You negotiate the rate of commission directly withyour dealer, up to a maximum of 5%.

2. Deferred sales charge option – The second option is a deferred sales charge option under which you pay no salescharge or commission at the time of purchase and there is no deferred sales charge unless units purchased underthis option are redeemed within six years of purchase, in which case a deferred sales charge will apply at the timeof redemption.

3. Low load sales charge option – The third option is a low load sales charge option under which you pay no salescharge or commission at the time of purchase and there is no deferred sales charge unless units purchased underthis option are redeemed within two years of purchase, in which case a deferred sales charge will apply at thetime of redemption.

4. Low load 2 and low load 3 sales charge option – The fourth option is a low load 2 or low load 3 sales chargeoption under which you pay no sales charge or commission at the time of purchase and there is no deferred salescharge unless units purchased under this option are redeemed within three years of purchase, in which case adeferred sales charge will apply at the time of redemption.

Units of NEI Money Market Fund may only be purchased under the front-end sales charge option described above.

Shares of NEI Northwest Short Term Corporate Class cannot be purchased directly under the preceding options, and areavailable only upon a conversion of shares. The shares issued on such a conversion of shares will be deemed to have beenacquired under the purchase option under which the converted shares were originally deemed to have been purchased.

The choice of purchase option affects the amount of compensation received by your dealer. Please see “DealerCompensation” for details. Please also refer to “Fees and Expenses” for details of the expenses borne by securityholdersunder the various purchase options.

For investors who purchased units under a purchase option that is no longer offered, please refer to the simplifiedprospectus under which those units were originally deemed to have been purchased for details about the relevantpurchase option.

Series B Units

Series B units are only available if your dealer has entered into a Series B Distribution Agreement with us. Series B unitsmay only be purchased under the front-end sales charge option.

Series F Units

Series F units are only available if your dealer has entered into a Series F Distribution Agreement with us.

No sales or redemption charges are payable by you to us on the purchase or sale of Series F units and we do not pay yourdealer compensation on the purchase or sale of Series F units.

We are able to reduce our management fee rate on the Series F units for investors who participate in a dealer-sponsoredprogram that does not require the securityholder to pay a sales or redemption charge on the purchase or redemption ofSeries F units, and that does not require us to pay a trailing commission to the dealer for assets held in Series F accounts.

If we become aware that you are no longer eligible to hold Series F units, we will convert your Series F units to Series Aunits of the same Fund after giving you 30 days’ notice. We will not make this change if you or your dealer notifies usduring the notice period that you are once again eligible to hold Series F units. When converting from Series F units toSeries A units, your dealer may charge you a front-end sales charge or change your units into those which are subject todeferred sales charges.

We may also issue Series F units to other investors for whom we do not incur any distribution costs.

Series I Units

Series I units are designed for institutional and other high net worth investors who are entitled to reduced management feesand operating expenses because of the lower cost of servicing large dollar investments in the Funds. We will negotiate theterms of purchase of Series I units directly with each investor, including any management fee. No sales or redemption chargeis payable to us when you purchase or redeem Series I units; you will negotiate any sales charges directly with your dealer.We may, if requested by your dealer and agreed to by you in writing, agree to collect this fee on your dealer’s behalf.

16

Series P Units

Series P units are designed for investors with $100,000 or more to invest in a single Fund. Series P units are designed forinvestors who have agreed with their registered representative that they wish to purchase a series of securities offeringreduced overall costs, including a reduced management fee.

Series P units may only be purchased under the front-end sales charge option.

If the original subscription price of your units declines below $100,000 and the aggregate original subscription price ofyour units is less than $100,000, we will provide written notice to your dealer during which you may make additionalinvestments sufficient to bring the value of the units of the Fund held to a minimum of $100,000. Should you fail to do so,we reserve the right to convert all units of the Fund held by you into Series A units of the Fund.

Series PF Units

Series PF units are designed for investors with $100,000 or more to invest in a single Fund. Series PF units are designed forinvestors who have agreed with their registered representative that they wish to purchase a series of securities offeringreduced overall costs, including a reduced management fee.

Series PF units are only available if your dealer has entered into a Series F Distribution Agreement with us.

No sales or redemption charges are payable by you to us on the purchase or sale of Series PF units and we do not pay yourdealer compensation on the purchase or sale of Series PF units.

We are able to reduce our management fee rate on the Series PF units for investors who participate in a dealer-sponsoredprogram that does not require the securityholder to pay a sales or redemption charge on the purchase or redemption ofSeries PF units, and that does not require us to pay a trailing commission to the dealer for assets held in Series PFaccounts.

If we become aware that you are no longer eligible to hold Series PF units, we will convert your Series PF units to Series Punits of the same Fund after giving you 30 days’ notice. We will not make this change if you or your dealer notifies usduring the notice period that you are once again eligible to hold Series PF units. When converting from Series PF units toSeries P, your dealer may charge you a front-end sales charge or change your units into those which are subject todeferred sales charges.

If the original subscription price of your units declines below $100,000 and the aggregate original subscription price ofyour units is less than $100,000, we will provide written notice to your dealer during which you may make additionalinvestments sufficient to bring the value of the units of the Fund held to a minimum of $100,000. Should you fail to do so,we reserve the right to convert all units of the Fund held by you into Series F units of the Fund.

SWITCHES

You can redeem units of one Fund to buy units of the same series of another Fund as long as you meet the minimum initialinvestment and minimum account balance requirements, as the case may be. If the Fund you are buying does not offerthe same Series of the Fund as the redeeming Fund, you may buy units of Series A (for Series T, Series B or Series Predemptions) or Series F (for Series PF redemptions) as long as you meet the minimum initial investment and minimumaccount balance requirements, as the case may be. This is called a switch. When we receive your order to switch, we willsell your units in the original Fund and use the proceeds to buy units of the same series of the new Fund.

You can switch from one Fund to another mutual fund managed by us, including switching units of a Fund structured as atrust for shares of a Corporate Fund (provided that your dealer is authorized to sell shares or units of those Funds) or toany new mutual fund, which is created and offered by us after the date of this document (provided that units of the newmutual fund have been qualified for sale in your province or territory of residence and your dealer is authorized to sellunits or shares of that fund) through your dealer who may charge you a switch fee. In addition, if you switch within 29days of your original purchase, you will be subject to a short-term trading fee. Please see “Fees and Expenses” for details.

You may switch units purchased under the deferred sales charge option, low load, low load 2, or low load 3 sales chargeoption for the same sales charge option units of another Fund without paying the applicable deferred sales charge; unitsacquired under one of these options cannot be switched for units with a different sales charge option, either of the sameFund or a different Fund. The deferred sales charge on the new units is based on the date and original purchase price ofthe units before the switch.

Switching between Funds, may result in a capital gain or loss for tax purposes in a non-registered plan. Switching withinCorporate Funds is not a taxable event.

17

CONVERSIONS

In the case of a Fund which has authorized the issue of more than one series of units, you can convert from one series ofunits to another series of units of the same Fund, as long as you meet the minimum initial investment and minimumaccount balance requirements, as the case may be. This is called a conversion.

You can convert from one series of units to another series of units of the same Fund through your dealer. Units originallyacquired under the deferred sales charge option, low load, low load 2, or low load 3 sales charge option cannot beconverted to another series while subject to a deferred sales charge. Units received on conversion of units originallyacquired under the deferred sales charge option, low load, low load 2 or low load 3 sales charge option which areconverted following the expiration of the applicable deferred sales charge schedule will be held on the same terms as theunits which were converted.

However, you may convert your annual free redemption amount (described under “Fees and Expenses” below) to thefront-end sales charge option of a Fund in order not to lose that entitlement, since the free redemption amount cannot becarried forward to succeeding years. The self-regulatory organization your dealer belongs to has rules that apply to thesetypes of conversions; your dealer must comply with the applicable rules. Your dealer is paid a higher trailing commissionon units converted to the front-end sales charge option. Please see “Dealer Compensation”.

Your dealer may charge you a conversion fee. Please see “Fees and Expenses” for details.

A conversion of units from one series to another series of the same Fund is not a disposition for tax purposes andconsequently does not result in a capital gain or loss to a converting securityholder.

REDEMPTIONS

You may request a Fund to redeem (or sell) any or all of your units at any time. Redemption orders in respect of a Fundwill be implemented based on the NAV per series unit determined as of the close of business on the day on which suchorders are deemed received provided the order is received before the cut off time. If we receive your order after the cutoff time, it will be processed on the following business day.

Payment for any units redeemed (including by reason of a mandatory redemption as described below), less all taxesrequired to be withheld and all applicable redemption charges will be made by the applicable Fund within three businessdays of the determination of the redemption price. If you redeem within 29 days of your original purchase, you will becharged a short-term trading fee. Please see “Fees and Expenses” for details.

Unless you request otherwise, your redemption proceeds will be sent to your dealer. If you so request, we will wire theredemption proceeds to a designated bank account on the day on which the redemption proceeds are made available bythe applicable Fund to us.

If we do not receive all the documents required to complete your sale in ten business days, we will buy the same numberof units you sold. If the purchase price is less than the sale price for the units, the applicable Fund is required by securitiesregulation to keep the difference. If the purchase price is greater than the sale price for the units, we are required to paythe Fund the difference, and will collect the difference from your dealer, who may then collect from you.

If the aggregate unit price of the units of a Fund (excluding Series P and Series PF units) held in your account declinesbelow $500 and the aggregate original subscription price of your units is less than $500, we may cause the redemption ofall units of the Fund held by you after fifteen days’ written notice, provided that you may, within the notice period,increase your investment in units of the Fund to a level which meets the minimum requirement. We reserve the right toredeem, without notice to you, all of the units that you hold in a Fund or Funds if your investment in that Fund or Fundsfalls below $50. We also intend to observe all redemption policies that may be implemented from time to time by industryparticipants such as FundSERV, the provider of the transaction processing system used by most mutual funds in Canada.

Under exceptional circumstances, we may be unable to process your redemption order. This would most likely occur ifmarket trading were suspended on stock exchanges where the Funds hold their investments. Payment of the redemptionprice of the units of a Fund that is subject to a redemption order may be postponed.

A Fund may suspend the calculation of NAV per series unit and the redemption of its units in the following cases:

a) for any period when normal trading is suspended on any stock exchange, options exchange or futures exchange onwhich securities are listed and traded, or on which permitted derivatives are traded, which represent more than50% in value or underlying market exposure of the total assets of the Fund, without allowance for liabilities

18

(provided that such securities or derivatives are not traded on any other exchange that represents a reasonablypractical alternative for the Fund); or

b) if the Ontario Securities Commission authorizes such suspension.

If the right of redemption is suspended, a securityholder may either withdraw his or, her redemption request or receivepayment based on the NAV per series unit next determined after the end of the suspension. Such Fund will not bepermitted to issue units during any period when the right to redeem units is suspended.

SHORT-TERM TRADING

Investors are discouraged from short-term trading. Short-term trading can harm a Fund’s performance and the value ofother investors’ holdings in a Fund except in funds that are designed to be short term funds, such as NEI Money MarketFund, because such trading can increase brokerage and other administrative costs of a Fund and interfere with theinvestment decision making of the Fund’s portfolio manager. Short-term trading may be particularly problematic whenlarge sums are involved. Short-term trading can include purchasing and then redeeming or switching units of a Fund soonafter purchasing or switching them.

We have policies and procedures to detect and deter short-term trading that include the ability to refuse your present orfuture order(s) to purchase or switch units. If you switch or redeem units within 29 days of a purchase or switch you willbe charged a short-term trading fee to be paid directly to the Fund out of your redemption proceeds, reducing the amountotherwise payable to you on the redemption or switch (please see “Fees and Expenses”). We have the option to waive thispenalty at any time.

The restrictions imposed on short-term trading, including the short-term trading fees, will generally not apply inconnection with redemptions or switches for money market funds and other short-term funds, systematic withdrawalplans and rebalancing in connection with the Planimaîtres asset rebalancing program and in respect of redemptions madeby other mutual funds managed by the Manager.

The annual information form includes a description of all arrangements, whether formal or informal, with any person orcompany, to permit short-term trades of units of the Funds.

Despite these restrictions and our procedures to detect and deter short-term trading, we cannot ensure that such tradingwill be completely eliminated.

OPTIONAL SERVICES

REGISTERED PLANS

Units of the Funds are qualified investments for RRSPs, RRIFs, deferred profit sharing plans, RESPs, registered disabilitysavings plans and TFSAs (as defined below, and collectively “registered plans”).

We offer registered retirement savings plans (RRSPs), registered retirement income funds (RRIFs), life income funds (LIFs),locked-in retirement income funds (LRIFs), locked-in retirement accounts (LIRAs), retirement savings fixed term annuities(RSFAs) (in Québec only), registered education savings plans (RESPs) (including some provincial programs tied toeducational savings) and tax free savings plans (TFSAs), (collectively, “registered plans”). There is an annual administrationfee for some registered plans we offer (see “Fees and Expenses Payable Directly by You”).

The trustee of our registered plans is Concentra Trust.

PRE-AUTHORIZED PAYMENT PLAN

Under a pre-authorized payment plan you can indicate a regular amount of investment (not less than $25) per Fund, to bemade on a periodic basis, the Fund or Funds in which the investment is to be made, and the chequing account from whichthe investment amount is to be debited. You may suspend or terminate such a plan on ten days’ prior written notice.

We obtained relief to permit dealers to deliver the fund facts once to participants in a pre-authorized payment plan(except participants resident in Quebec) upon their initial purchase of securities of a Fund and then not thereafter forsubsequent purchases pursuant to the pre-authorized payment plan, unless they request it. We intend to rely on this reliefuntil it terminates on the effective date following any applicable transition period for any legislation or rule dealing with

19

an exception from the fund facts delivery requirement for pre-authorized payment plans. For participants who areresident in Quebec, we are relying on a blanket order in Quebec, which has the same result as the relief described above.

AUTOMATIC WITHDRAWAL PLAN

You can establish an automatic withdrawal plan, provided you are not investing through a retirement savings plan. Underan automatic withdrawal plan, you can indicate a regular amount of cash redemption (not less than $100 monthly) to bemade on a periodic basis, the Fund or Funds from which the investment is to be withdrawn and the chequing or savingsaccount to which the withdrawn amounts are to be credited. Withdrawals will be made by way of redemption of units. Ifwithdrawals are in excess of dividends and distributions and net capital appreciation, they will result in encroachment on,or possible exhaustion of, your original capital. If you choose the automatic withdrawal plan, all dividends anddistributions declared on units held under such a plan in respect of a Fund must be reinvested into additional units of theFund. To establish an automatic withdrawal plan in respect of a Fund, your account must have a minimum value of $5,000.You may modify, suspend or terminate an automatic withdrawal plan on ten days’ prior written notice.

ELECTRONIC FUNDS TRANSFER

You can arrange to have money moved electronically when you buy or redeem your units, just ask your Mutual FundsInvestment Specialist or Investment Advisor.

FEES AND EXPENSESThis section sets out the fees and expenses related to investments in our Funds.

The first part of this section shows the fees and expenses the Funds may pay. Although you do not pay these directly, theywill reduce the value of your investment.

The second part of this section shows the fees and expenses you may have to pay directly.

Fees and expenses payable by the Funds

Management Fees

Each Fund pays us a management fee which is subject to applicable taxes, including HST (and QST for Quebec residents). The fee iscalculated daily and paid monthly. The table below shows the annual management fee charged for Series A, Series F, Series P, andSeries PF units of each Fund (exclusive of applicable taxes, including HST (and QST for Quebec residents)). Series T and Series Bunits of the respective Funds are charged the same annual management fee as Series A units. The annual management feecharged for Series I units is negotiated directly with each investor but will not exceed the annual management fee charged inrespect of Series A units of the same Fund.

Series Aunits

Series Funits

Series Punits

Series PFunits

NEI FUNDS

NEI Money Market Fund


NEI Income Fund

NEI Global Total Return Bond Fund

0.70%

1.15%

1.15%

1.50%

N/A

0.65%

0.65%

0.75%

N/A

N/A

N/A

1.30%

N/A

N/A

N/A

0.55%

ETHICAL FUNDS





NEI Ethical Global Dividend Fund



1.75%

2.00%

2.20%

1.85%

2.00%

2.00%

2.10%

0.75%

1.00%

1.20%

0.85%

1.00%

1.00%

1.10%

N/A

N/A

N/A

N/A

1.75%

N/A

N/A

N/A

N/A

N/A

N/A

0.75%

N/A

N/A

20

NORTHWEST FUNDS

NEI Northwest Specialty High Yield Bond Fund

NEI Northwest Specialty Global High Yield Bond Fund

NEI Northwest Tactical Yield Fund

NEI Northwest Growth and Income Fund

NEI Northwest Macro Canadian Asset Allocation Fund


NEI Northwest Canadian Dividend Fund



NEI Northwest U.S. Dividend Fund



1.60%

1.60%

1.95%

2.00%

1.95%

2.00%

2.00%

2.00%

2.00%

1.90%

2.15%

2.00%

0.85%

0.85%

0.95%

1.00%

0.95%

1.00%

1.00%

1.00%

1.00%

0.90%

1.15%

1.25%

N/A

N/A

1.65%

N/A

1.65%

N/A

N/A

N/A

N/A

1.65%

N/A

N/A

N/A

N/A

0.65%

N/A

0.65%

N/A

N/A

N/A

N/A

0.65%

N/A

N/A

SELECT PORTFOLIOS


NEI Ethical Select Conservative Portfolio

NEI Ethical Select Balanced Portfolio

NEI Ethical Select Growth Portfolio




NEI Select Global Balanced Portfolio

NEI Select Global Growth Portfolio


1.40%

1.75%

1.90%

2.00%

1.75%

1.90%

2.00%

1.90%

2.00%

2.10%

0.65%

0.75%

0.90%

1.00%

0.75%

0.90%

1.00%

0.90%

1.00%

1.10%

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

NEI CORPORATE CLASS FUNDS

NEI Northwest Short Term Corporate Class

NEI Northwest Tactical Yield Corporate Class

NEI Northwest Growth and Income Corporate Class

NEI Northwest Macro Canadian Asset Allocation Corporate Class

NEI Northwest Macro Canadian Equity Corporate Class

NEI Northwest Enhanced Yield Equity Corporate Class

NEI Northwest Canadian Dividend Corporate Class

NEI Northwest Canadian Equity Corporate Class

NEI Northwest U.S. Dividend Corporate Class

NEI Northwest Emerging Markets Corporate Class

NEI Northwest Global Equity Corporate Class

NEI Northwest Specialty Equity Corporate Class

NEI Select Conservative Corporate Class Portfolio

NEI Select Balanced Corporate Class Portfolio

NEI Select Growth Corporate Class Portfolio

NEI Select Global Maximum Growth Corporate Class Portfolio

0.70%

1.95%

2.00%

1.95%

2.00%

2.00%

2.00%

2.00%

1.90%

2.15%

2.00%

2.00%

1.75%

1.90%

2.00%

2.10%

N/A

0.95%

1.00%

0.95%

1.00%

1.00%

1.00%

1.00%

0.90%

1.15%

1.00%

1.25%

0.75%

0.90%

1.00%

1.10%

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

21

Underlying Fund Management Fee

Certain Funds may invest in other mutual funds, referred to as the “underlying funds”. In addition to the management fee paid bya Fund to us, the Fund will also reimburse us for the investment management fees that are paid by us to the underlying funds forthe investment management services provided by the underlying fund managers. The arrangements in respect of the Funds andthe underlying funds are such as to avoid duplication of management fees. There will also be no sales or redemption fees payablein relation to the purchase of securities in the underlying funds by a Fund.

Operating Expenses

We pay all of the operating expenses of the Funds, except for:

costs and expenses associated with taxes, including HST, borrowing, the costs associated with the independent reviewcommittee and the costs of compliance with any regulatory changes imposed following September 30, 2009 (together the“Fund Expenses”); and

costs associated with portfolio transactions, including brokerage commissions and research and execution costs (“PortfolioTransaction Costs”).

The Fund Expenses, Portfolio Transaction Costs and any expenses of the Fund outside of operating expenses are paid directly byeach Fund.

In return for assuming the obligation to pay the Funds’ operating expenses, we are paid a fixed annual administration fee (the“Administration Fee”), which is subject to applicable taxes, including HST. The Administration Fee payable by Series A, Series F,Series T, Series B, Series P and Series PF units of a Fund is equal to a specified percentage of the NAV of the series, calculated andaccrued daily and paid monthly.

Each Fund will be subject to HST based on the jurisdictions of residence of its securityholders. Each Fund will calculate and pay HSTon an aggregate basis, such that the cost of the HST will be borne by all investors, regardless of their individual province ofresidence.

The Administration Fee for Series A, Series B, Series T, Series F, Series P and Series PF units of a Fund is the same but theAdministration Fee varies between Funds because the expenses associated with various types of Funds differ. No AdministrationFee is charged to Series I units of the Funds because of the fee structures associated with such series. The following table showsthe Administration Fee applicable to Series A, Series F, Series T Series B, Series P and Series PF units of each Fund:

Fixed Administration Fee

NEI FUNDS

NEI Money Market Fund


NEI Income Fund


0.05%

0.35%

0.35%

0.40%

ETHICAL FUNDS








0.40%

0.40%

0.40%

0.50%

0.40%

0.50%

0.55%

22

NORTHWEST FUNDS













0.40%

0.40%

0.35%

0.45%

0.35%

0.40%

0.40%

0.40%

0.50%

0.50%

0.55%

0.40%

SELECT PORTFOLIOS



NEI Ethical Select Balanced Portfolio





NEI Select Global Balanced Portfolio

NEI Select Global Growth Portfolio


0.30%

0.30%

0.40%

0.50%

0.30%

0.40%

0.50%

0.40%

0.50%

0.50%

NORTHWEST CORPORATE CLASS FUNDS

NEI Northwest Short Term Corporate Class



NEI Northwest Macro Canadian Asset Allocation Corporate Class








NEI Northwest Specialty Equity Corporate Class


NEI Select Balanced Corporate Class Portfolio


NEI Select Global Maximum Growth Corporate Class Portfolio

0.15%

0.35%

0.45%

0.35%

0.40%

0.45%

0.40%

0.40%

0.50%

0.55%

0.50%

0.40%

0.30%

0.40%

0.50%

0.50%

23

Independent Review Committee

The Funds, together with all other funds managed by us, pay the fees and expenses associated with the IRC, including annual feesand meeting fees, if any, payable to members of the IRC and the payment of any other expenses related to the operation of theIRC which could include travel expenses, educational amounts or legal fees. The Chair of the IRC is paid an annual retainer of$34,000 plus expenses and the other members are each paid an annual retainer of $28,000 plus expenses. These amounts will beallocated among the funds managed by us in a manner that is fair and reasonable. For amounts allocated to a particular Fundplease refer to the Fund's financial statements.

Fees and expenses payable directly by you

Sales Charges

Under the front-end sales charge option, there is a maximum charge of 5% of the amount you invest in Series A, Series B, Series Tor Series P units of a Fund. The amount of the fee is a matter between you and your dealer. There are no sales charges on Series F,Series I or Series PF units. For Series F or Series PF units you may be required to pay your dealer an advisory or asset- based fee inaddition to the Series F or Series PF management fees.

Switch/Conversion Fees

Up to 2% of the amount you wish to switch or convert, as applicable. The amount of the fee is a matter between you and yourdealer.

Redemption Fees

Except as described in the following paragraphs, holders of low load, low load 2 or low load 3 sales charge units will be treated inan identical manner to holders of deferred sales charge units (including the 10% free redemption right).

Series F, Series B, Series I, Series P and Series PF units of any Fund and all series of units of NEI Money Market Fund are notavailable under the deferred sales charge option, low load, low load 2 or low load 3 sales charge option. These purchase optionsare also not available for direct purchases of shares of NEI Northwest Short Term Corporate Class, which is only available forconversions of shares of Corporate Funds originally purchased under these options.

Deferred Sales Charge Option:Under the deferred sales charge option, there is no sales charge until you redeem your Series A or Series T units. A redemptioncharge of 6% of the original cost (i.e., the Series A or Series T NAV per series unit at the time of your purchase) of the Series A orSeries T units you wish to redeem is payable if redeemed in the first year. The redemption charge declines to 0% after six years.

The following table sets out the applicable deferred sales charge payable in respect of Series A or Series T units.

Redemption of Deferred Sales Charge UnitsDuring Following Periods After Date of Issue

Deferred Sales Charge as a Percentage of theOriginal Purchase Price

During the first year 6.0%

During the second year 5.5%

During the third year 5.0%

During the fourth year 3.5%

During the fifth year 2.5%

During the sixth year 1.5%

After the end of the sixth year 0%

Free Redemption Amount:In any year, you may redeem, without paying the deferred sales charges that would otherwise be applicable, such number ofdeferred sales charge units of a Fund as is equal to:

10% of the number of deferred sales charge units of such Fund held by you as of December 31 of the previous year,

plus 10% of the number of deferred sales charge units of such Fund purchased by you during the current year,

less any distributions or dividends received in cash which are not reinvested in units in respect of units purchased prior

24

to April 13, 2009,

less the number of units previously redeemed by you during the calendar year or prior to the redemption date.

This free redemption amount is not cumulative. If you do not take advantage of the free redemption amount (or any part of thefree redemption amount) in any calendar year, you cannot carry it forward to future years.

Units held as a result of the reinvestment of ordinary taxable dividends, capital gains dividends or return of capital on sharespurchased prior to April 13, 2009, including reinvestments of ordinary taxable dividends, capital gains dividends or return ofcapital on units received after April 13, 2009 where the original purchase was made prior to April 13, 2009, are treated as newlypurchased units as described above. Units held as a result of the reinvestment of ordinary taxable dividends, capital gainsdividends or return of capital on units purchased after April 13, 2009 are not subject to deferred sales charges.

Low Load Sales Charge Option:If you choose the low load sales charge option, you will pay no sales charge or commission at the time of purchase, and you willpay no deferred sales charge unless low load sales charge units are redeemed within two years of purchase, in which case adeferred sales charge of 1.5% of the original cost (i.e., the Series A or Series T NAV per series unit at the time of your purchase)will be payable by you at the time of redemption.

Low Load 2 Sales Charge Option:If you choose the low load 2 sales charge option, you will pay no commission at the time of purchase and no deferred sales chargethereafter unless low load 2 sales charge units are redeemed within three years of purchase.

A redemption charge of 3% of the original cost (i.e., the Series A or Series T NAV per unit at the time of your purchase) of the Series Aor Series T units you wish to redeem is payable if redeemed in the first year. The redemption charge declines to 0% after three years.

The following table sets out the applicable deferred sales charges payable in respect of Series A or Series T units.

Redemption of Low Load 2 Sales Charge UnitsDuring Following Periods After Date of Issue

Low Load 2 Sales Charge as a Percentageof the Original Purchase Price




After the end of the third year 0%

Low Load 3 Sales Charge Option:If you choose the low load 3 sales charge option, you will pay no commission at the time of purchase and no deferred sales chargethereafter unless low load 3 sales charge units are redeemed within three years of purchase.

A redemption charge of 4.5% of the original cost (i.e., the NAV per series unit at the time of your purchase) of the units you wishto redeem is payable if redeemed in the first year. The redemption charge declines to 0% after three years.

The following table sets out the applicable deferred sales charges payable in respect of Series A or Series T units.

Redemption of Low Load 3 Sales Charge UnitsDuring Following Periods After Date of Issue

Low Load 3 Sales Charge as a Percentageof the Original Purchase Price




After the end of the third year 0%

Short-Term Trading Fee

Units of Funds other than NEI Money Market Fund are subject to a short-term trading fee payable to the relevant Fund onredemptions and switches in excess of $10,000 on the following basis:

2% of the redemption proceeds otherwise payable if a redemption or switch occurs within 1 to 7 days of a purchase or switch.

1% of the redemption proceeds otherwise payable if a redemption or switch occurs within 8 to 29 days of a purchase orswitch.

25

Returned Cheques

There will be a $25 fee for Non-Sufficient Funds cheques returned or if there are insufficient funds in your account to pay for yourunits.

Registered Plans

Registered plans which have assets of less than $5,000 on the first Friday of October of any year will, on that day, be charged anannual fee of $25 other than Northwest Funds client name accounts opened prior to April 13, 2009. We charge you only oneadministration fee per year even if you own or participate in more than one registered plan. We do not charge the administrationfee if you have a total of $5,000 or more invested in mutual funds managed by us on the date the fee is assessed, if the mutualfunds are held within a Group RRSP offered by us, or if you maintain an active pre-authorized contribution plan. If you have onlyone Fund in your account, we will charge this fee to that Fund by redeeming the appropriate amount of units. If you have multipleFunds in your account, including NEI Money Market Fund, we will redeem the appropriate amount of units of the NEI MoneyMarket Fund to pay this fee. If you have multiple Funds in your account but no units of NEI Money Market Fund, we will redeemfront-end sales charge units if possible to pay this fee. If you do not have front-end sales charge units, we will redeem deferredsales charge units, low load, low load 2, or low load 3 sales charge units to pay this fee, and will charge you the correspondingdeferred sales charge, low load, low load 2, or low load 3 deferred sales charge.

Account Closing Fees

Client name accounts will be charged a fee of $25 if you close the account or we close it because your total investment in mutualfunds we manage falls below $500, other than Northwest Funds client name accounts opened prior to April 13, 2009.

Any new fee or expense or a change in the basis for the calculation of a fee or expense that is charged to a Fund, or tosecurityholders of a Fund in connection with the holding of units of the Fund, that could result in an increase in charges tothe Fund or its securityholders must be approved by a majority of the votes cast at a meeting of the securityholders of theFund, as the case may be, called for such purpose.

If the change or new fee or expense described above is a result of a change made by a third party at arm’s length to theFund, or if securityholder consent is not required by securities regulation, we will give you 60 days’ written notice of thechange before the effective date of the change if such notice is required by securities regulation.

IMPACT OF SALES CHARGESThe following table shows the amount of fees that you would have to pay under the different purchase options availableto you if you make an investment of $1,000 in Series A, Series T, Series B or Series P units of one of the Funds, if you holdthat investment for one, three, five or ten years and redeem immediately before the end of that period.

At Time ofPurchase

1Year

3Years

5Years

10Years

Front-end Sales Charge Option(1)(4)

$50.00 - - - -

Deferred Sales Charge Option(2)(3)(4)

- $60.00 $50.00 $25.00 -

Low Load Sales Charge Option(2)(3)(4)

- $15.00 - - -

Low Load 2 Sales Charge Option(2)(3)(4)

- $30.00 $20.00 - -

Low Load 3 Sales Charge Option(2)(3)(4)

- $45.00 $20.00 - -

(1) Assuming the maximum charge of 5% of the amount invested.

(2) Redemption charges are shown under “Fees and Expenses” above and are based on the original purchase price. Redemption charges may

apply only if you redeem your units in a particular year.

(3) Redemption charges do not include the 10% free redemption amount available to the investor in any year.

(4) There are no sales charges for Series F, Series I or Series PF units. Investors in Series F or Series PF units may be required to pay their dealer

an advisory or asset-based fee in addition to the Series F or Series PF management fee payable by the Fund.

26

DEALER COMPENSATION

Sales Commissions and Switch and Conversion Fees

For Series A, Series B, Series T or Series P units purchased under the front-end sales charge purchase option, you will pay your dealer asales commission at the time of your purchase, such commission being up to 5% of the amount you invest. The actual percentage is amatter between you and your dealer.

For Series A or Series T units purchased under the deferred sales charge purchase option, you are not required to pay your dealer acommission. We, however, will pay your dealer up to 5% of the amount you purchased under this option.

For Series A or Series T units purchased under the low load sales charge purchase option, you are not required to pay your dealer acommission. We, however, will pay your dealer 1% of the amount you purchased under this option.

For Series A or Series T units purchased under the low load 2 sales charge purchase option, you are not required to pay your dealer acommission. We, however, will pay your dealer 2.5% of the amount you purchased under this option.

For Series A or Series T units purchased under the low load 3 sales charge purchase option, you are not required to pay your dealer acommission. We, however, will pay your dealer 3.5% of the amount you purchased under this option.

Sales charges are not paid when you switch or convert your units, but a switch or conversion fee, as applicable of up to 2% may becharged to you and retained by your dealer. The amount of any switch or conversion fee is a matter between you and your dealer.

No sales commissions are paid when you receive units from reinvested distributions.

There is no sales charge to purchase Series F, Series I or Series PF units but you may be required to pay your dealer an advisory or asset-based fee in addition to the Series F or Series PF management fee payable by the Fund or the Series I management fee paid directly byyou.

Trailing Commissions

We pay your dealer a trailing commission either at month or quarter end for the ongoing advice and service you receive from yourdealer relating to Series A, Series B, Series T or Series P units. We also pay trailing commissions to the discount broker for securities youpurchase through your discount brokerage account. The maximum trailing commission payable will depend on the payment option youhave chosen and the Fund in which you have purchased units. Dealers receive this trailing commission based on the aggregate Series A,Series B, Series T or Series P NAV of their clients’ investment in the Funds at the annualized rates indicated below:

Trailing Commission Rate

FundFront-EndSales ChargeOption

DeferredSales ChargeOption

Low LoadSales ChargeOption

Low Load 2 and LowLoad 3 Sales ChargeOption

NEI Money Market Fund 0% N/A N/A N/A


NEI Income Fundup to 0.50% up to 0.25% up to 0.50%

up to 0.25% during first3 years and thereafterup to 0.50%








up to 1.00% up to 0.50% up to 1.00%up to 0.50% during first3 years and thereafterup to 1.00%





27
















NEI Northwest Specialty Equity Fund up to 0.75% up to 0.50% up to 0.75%up to 0.50% during first3 years and thereafterup to 0.75%


up to 0.75%

or 0.90% onSeries B only

up to 0.25% up to 0.75%up to 0.25% during first3 years and thereafterup to 0.75%


NEI Ethical Select Balanced Portfolioup to 1.00% up to 0.50% up to 1.00%



NEI Select Global Growth Portfolioup to 1.20% up to 0.50% up to 1.00%


NEI Select Global Balanced Portfolio up to 1.00% up to 0.50% up to 1.00%up to 0.50% during first3 years and thereafterup to 1.00%



up to 1.00%

or 1.40% onSeries B only




up to 1.20%

and 1.40% onSeries B only


NEI Northwest Short Term Corporate Class 0% N/A N/A N/A



NEI Northwest Macro Canadian Asset AllocationCorporate Class









28






NEI Northwest Specialty Equity Corporate Class up to 1.00% up to 0.50% up to 0.75%up to 0.50% during first 3years and thereafter upto 1.00%


NEI Select Balanced Corporate Class Portfolioup to 1.00% up to 0.50% up to 1.00%

up to 0.50% during first 3years and thereafter upto 1.00%


NEI Select Global Maximum Growth Corporate ClassPortfolio

up to 1.20% up to 0.50% up to 1.00%up to 0.50% during first 3years thereafter up to1.20%

We may change or cancel the terms of trailing commissions that we pay at any time.

There are no trailing commissions paid to your dealer by us with respect to Series F or Series PF units which you holdbecause you pay an advisory or asset-based fee directly to your dealer. No trailing commissions are payable in respect ofSeries I units.

Incentive Programs

We may provide additional monetary or non-monetary incentives and marketing support for dealers, as permitted bysecurities regulations governing sales practices. These incentives are not charged to the Funds.

Related Dealers

We are 50% owned by Fédération des caisses Desjardins du Québec (“Fédération”) and 50% owned by five ProvincialCredit Union Centrals (the “Centrals”). Certain registered dealers through which units of the Funds may be purchased arerelated to us by way of ownership interests in such dealers by Fédération or the Centrals. The related dealers are: (i)Desjardins Securities Inc., (ii) Desjardins Financial Services Firm Inc., and (iii) Desjardins Financial Security Investments Inc.,each of which is an indirect wholly-owned subsidiary of Fédération, (iv) Credential Asset Management Inc., and (v)Credential Securities Inc. and Credential Direct (a division of Credential Securities Inc.), in which the Centrals haveownership interests.

DEALER COMPENSATION FROM MANAGEMENT FEESDuring the financial year ended September 30, 2013, the total cash compensation (sales commissions, trailingcommissions, and other kinds of dealer compensation such as marketing support payments) paid to dealers whodistributed units of the Funds, represented approximately 42.94% of the total management fees paid by the Funds.

INCOME TAX CONSIDERATIONS FOR INVESTORSThis section is a summary of how taxes affect your investment in the Funds. It is written for individual securityholders whoare residents of Canada and who hold their units as capital property. More detailed information is contained in the annualinformation form.

We’ve tried to make this section as helpful and accurate as possible, but your situation may be different. Please consult atax advisor about your own circumstances.

How the Funds Aim to Make Money

A Fund can make money in two ways. First, it can earn income. Examples of income earned are interest paid on bonds,dividends paid on stocks, and distributions from underlying funds. A Fund can also have capital gains if the value of itsholdings goes up. If the Fund sells an investment at a gain, the gain is realized. If the Fund continues to hold the

29

investment, the gain is unrealized. Generally, gains and losses from derivatives will be recognized on income account fortax purposes, rather than as capital gains and losses.

How Your Mutual Fund Investment is Taxed

The tax you pay on your mutual fund investment depends on whether the Fund is a trust or a corporation and on whetheryou hold units directly in a non-registered account or indirectly through a registered plan like an RRSP.

All Funds You Hold in a Registered Plan

If you hold your units in a registered plan, generally you do not have to pay tax on distributions or dividends from theFunds or on any capital gains your plan realizes from selling units. If you take money out of your registered plan, you willgenerally have to pay tax on it; however, withdrawals from TFSAs are not subject to tax. RESPs and registered disabilitysavings plans are subject to special rules.

Trust Funds You Hold in a Non-Registered Account

If you hold units of a Trust Fund directly in a non-registered account, we will send you a tax slip by the end of March eachyear. It shows your share of the Fund’s distributions of income, net realized capital gains and return of capital for theprevious year as well as any allowable tax credits. Income includes dividend income from taxable Canadian corporations,and foreign income. If the Fund has earned foreign income, it may have paid foreign withholding tax. Some or all of thismay be credited against the Canadian income tax you pay if the fund makes an according designation. Dividends paid byCanadian companies will be subject to the gross-up and dividend tax credit. An enhanced gross-up and dividend tax creditis available for certain eligible dividends. Other income is fully taxable. Capital gains distributed by the Funds will betreated as if they were realized directly by you. You must include the income shown on the tax slip as part of your annualincome. This applies whether your distributions were reinvested in units of the Fund or were paid to you in cash. If youreceive more in distributions in a year than your share of the Fund’s income and net realized capital gains for the year, youwill have a return of capital. You don’t pay tax on a return of capital. Instead, it will reduce the adjusted cost base of yourunits of the Fund. If the adjusted cost base of your units is reduced to less than zero you will be deemed to have realized acapital gain equal to the negative amount.

When you buy units of a Trust Fund for a non-registered account, you may end up paying tax on income and capital gainsthe Fund earned before you bought your units and that were reflected in the purchase price of the units. This isparticularly relevant when a Fund makes a distribution in December of everything it earned for the whole year. You shouldconsider how this tax cost might affect you when you buy a Fund, especially if you are considering buying units late in theyear.

Corporate Funds You Hold in a Non-Registered Account

Dividends

If you hold shares of a Corporate Fund directly in a non-registered account, we will send you a tax slip by the end ofFebruary each year. It shows the amount of ordinary dividends and capital gains dividends paid to you by the Corporationin the previous year. Ordinary dividends are subject to the gross-up and the dividend tax credit rules that normally applyto taxable dividends paid by taxable Canadian corporations. An enhanced gross-up dividend tax credit is available forcertain eligible dividends paid by the Corporation. Capital gains dividends are treated as realized capital gains, one-half ofwhich will be included in computing your income as a taxable capital gain. You must include the dividends shown on thetax slip in computing your annual income. This applies whether the dividends were reinvested in shares of the Corporationor paid to you in cash. Returns of capital are not immediately taxable. Instead, a return of capital reduces the adjustedcost base of your shares on which it was paid. If the adjusted cost base is reduced to less than zero, you will realize acapital gain equal to the negative amount and your adjusted cost base will be increased to zero.

When you buy shares, you may end up paying tax on income and capital gains that were earned before you bought yourshares and that were reflected in the purchase price of the shares. If the Corporation has earnings to distribute to avoidtax, it will normally pay ordinary dividends in September and capital gains dividends in November, although it may paydividends at other times. If you invest in a fund before a dividend is declared on that Fund, you will have to pay tax onsuch dividend paid to you. You should consider how this tax cost might affect you when buying shares of the CorporateFund.

30

In general, the adjusted cost base of your shares in any series of shares in a Corporate Fund equals your initial and anysubsequent investments (including any sales charges), plus reinvested dividends or distributions, plus the adjusted costbase of any shares converted to the series, less the adjusted cost base of shares of such series that have been redeemed,less the adjusted cost base of any shares which were converted to a different series or Corporate Fund, and less any returnof capital distributions paid in respect of the shares.

In certain cases, individuals may have to pay alternative minimum tax on the capital gains or Canadian dividends theyearn.

All Funds You Hold in a Non-Registered Account

You’ll have a capital gain if the money you make from redeeming a unit is more than the adjusted cost base of the unit,after deducting any costs of selling or transferring the unit. You’ll have a capital loss if the money you receive from aredemption is less than the adjusted cost base, after deducting any costs of redeeming your units. One-half of a capitalgain is generally included in computing your income. Converting units of one Series of a Fund into units of another Seriesof the same Fund will not trigger a capital gain or loss. As well, converting shares of one Corporate Fund into shares ofanother Corporate Fund will not trigger a capital gain or loss.

In general, the adjusted cost base of your units or shares in any series of units in a Fund equals your initial and anysubsequent investment, plus reinvested distributions or dividends, less the adjusted cost base of units of such series thathave been redeemed and any return of capital otherwise received in respect of the units. If you’ve bought units at varioustimes, you will likely have paid various prices. The adjusted cost base of a unit is, generally, the average of the cost of allthe units you hold in the Fund. That includes units you acquired through reinvestments of distributions or dividends.

Management fees paid by securityholders on Series I units will not be deductible for tax purposes.

In certain cases, individuals may have to pay alternative minimum tax on the capital gains or Canadian dividends theyearn.

Funds with a High Portfolio Turnover Rate

The higher a Fund’s portfolio turnover rate, the greater the likelihood the Fund will incur capital gains or losses. In theevent a Fund realizes net capital gains in a taxation year that cannot be sheltered with losses, the gains will, in most cases,be distributed to you and must be included in computing your income for tax purpose. There is not necessarily arelationship between a high turnover rate and the performance of a Fund.

WHAT ARE YOUR LEGAL RIGHTS?Securities legislation in some of the provinces and territories of Canada gives you the right to withdraw from anagreement to buy mutual funds within two business days of receiving the simplified prospectus or fund facts document, orto cancel your purchase within 48 hours of receiving confirmation of your order.

Securities legislation in some provinces and territories also allows you to cancel an agreement to buy mutual fund unitsand get your money back, or to make a claim for damages, if the simplified prospectus, fund facts, annual informationform or financial statements misrepresent any facts about the mutual fund. These rights must usually be exercised withincertain time limits.

For more information, refer to the securities legislation of your province or territory or consult your lawyer.

ADDITIONAL INFORMATION

Enhanced Tax Information Reporting

Pursuant to the recent Intergovernmental Agreement for the Enhanced Exchange of Tax Information under the Canada-USTax Convention entered into between Canada and the US (the “IGA”), and related proposed Canadian legislation, theFunds and the Manager are required to report certain information with respect to Unitholders who are US residents andUS citizens (including US citizens who are residents or citizens of Canada), and certain other “US Persons” as defined underthe IGA (excluding registered plans such as RRSPs), to the Canada Revenue Agency (“CRA”). The CRA will then exchangethe information with the US Internal Revenue Service pursuant to the provisions of the Canada-US Income Tax Treaty.

31

Socially Responsible Investing

Application

The Ethical Funds, NEI Canadian Bond Fund, NEI Global Total Return Bond Fund, NEI Income Fund, NEI Money MarketFund and the Portfolios containing the word “Ethical” in their name (collectively, the “SRI Funds”) are Canada’s first andlargest family of socially responsible investment (“SRI”) mutual funds. SRI is an investment strategy that integratesenvironmental, social and governance criteria into the investment decision-making process, in addition to traditionalevaluative processes.

Other Funds may, at the discretion of the Manager, apply SRI criteria in the investment strategies of the Fund.

The SRI Funds’ approach to SRI incorporates the thesis that companies can mitigate risk by integrating best SRI practicesinto their strategy and operations. The SRI Funds seek to identify and engage in dialogue with those companies webelieve are capable of addressing SRI risks and working to build long term sustainable value for all stakeholders. In sodoing, the SRI Funds seek to reflect the values of Canadians in their investment activity and thereby protect shareholdervalue.

SRI Program

To implement this thesis, the SRI Funds have established a SRI Program, which has four components:

1. ESG Evaluations: an internal analyst team deploys a risk-based methodology to evaluate the ESG performance ofinvestment prospects as identified by portfolio managers against our baseline expectations. After initial purchaseof the companies’ securities, our team will monitor companies on an ongoing basis to ensure they continue tomeet our baseline threshold.

2. Corporate Engagement Program: those companies that become investments are potential candidates for ourCorporate Engagement Program. Under this program, we work to improve practices and performance byengaging companies directly in a structured dialogue process that may include the use of shareholder proposals.

3. Public Policy and Standards: we respond to opportunities presented by government regulators and otherstandards-setting bodies to address risks that cannot be mitigated through corporate engagement.

4. Research: we conduct research into key issues in order to support and enhance company evaluations, corporateengagement and policy work. Periodically, we share this research to advance understanding of responsibleinvesting among companies, investors and other stakeholders and to help build collaborative efforts.

The SRI Funds also avoid investing in companies that have specific types of involvement in tobacco, weapons or nuclearpower.

As with any other investment strategy, by virtue of our sustainable investing approach, an SRI Fund may be precludedfrom owning securities issued by profitable companies. From time to time an SRI Fund may be required to sell thesecurities of companies in its portfolio if they no longer meet the Fund’s baseline standards, regardless of the profitabilityor economic prospects of those companies.

More information about our SRI Program is found in our SRI Annual Report, which is available on our website or bycontacting us.

32

SPECIFIC INFORMATION ABOUT EACH OF THE MUTUAL FUNDS DESCRIBED IN THIS DOCUMENTPages 33 through 172 of this document contain separate and specific information about the Funds, including particulars oftheir respective investment objectives, strategies and risks.

HOW DOES THE MANAGER DETERMINE FUND RISK?

The Manager identifies the investment risk level of a Fund by using a methodology based on the methodologyrecommended by the Fund Risk Classification Task Force of The Investment Funds Institute of Canada. This methodologyincludes both qualitative and quantitative factors. We have concluded that the appropriate measurement of a Fund's riskis the historical volatility of the Fund based on its standard deviation of returns or the Canadian Investment FundStandards Committee Risk Rating assigned to the fund category of the Fund. Standard deviation is a common statistic usedto measure the volatility and risk of an investment. Funds with higher standard deviations are generally considered to behigher risk investments. Each Fund has been assigned a risk rating in one of the following categories:

Low – for funds with a level of risk typically associated with investment in money market and fixed income funds.

Low to Medium – for funds with a level of risk that is typically associated with investment in balanced funds and assetallocation funds.

Medium – for funds with a level of risk that is typically associated with investment in equity funds that are diversified andcontain large capitalization equities in developed markets.

Medium to High – for funds with a level of risk that is typically associated with equities concentrated in specific sectors,geographical regions, or smaller capitalization companies.

High – for funds with a level of risk that is typically associated with emerging markets or sectors of the economy wherethere is substantial risk of loss. Just as historical returns may not be indicative of future returns, historical volatility maynot be indicative of future volatility as other types of risk exist in global economies.

The Funds are reviewed annually and details about the methodology that we use to determine the investment risk level ofeach Fund are available on request, at no cost to you, by contacting us at the address shown on the back cover of thisdocument.

NEI MONEY MARKET FUND

33

Section 2


Fund Type: Canadian Money Market

Start Date:Series A units: October 6, 2000

Series I units: June 21, 2007

Securities Offered: Mutual Fund Units

Eligibility for Registered Plans: Qualified Investment

Portfolio Manager: Northwest & Ethical Investments L.P., Toronto, ON

Portfolio Sub-Advisor: Desjardins Global Asset Management Inc., Montréal, Québec

WHAT DOES THE FUND INVEST IN?

Investment Objectives

The objective of the Fund is to conserve capital while maintaining liquidity and achieving regular income. For that purpose,the Fund’s assets are primarily invested in short-term money market instruments such as commercial paper and bankers’acceptances issued and guaranteed by major Canadian corporations and all financial institutions, including Canadianchartered banks, trust companies and savings and credit unions. The weighted average maturity of the Fund’s portfoliodoes not exceed 90 days.

Securityholder approval (by a majority of votes cast at a meeting of securityholders) is required prior to a fundamentalchange of investment objectives.

Investment Strategies

When choosing the securities to invest in, the Fund’s Portfolio Sub-Advisor selects money market instruments that itbelieves offer good relative value. The Portfolio Sub-Advisor invests in a number of different issuers to diversify credit risk,adjusts the Fund’s term to maturity in anticipation of yield curve shifts and adjusts the distribution of securities across theinvestment horizon in anticipation of changes in the shape of the yield curve.

The Fund may also invest in treasury bills issued by the Government of Canada or a province of Canada, short-term debtsecurities, bankers’ acceptances and other credit instruments issued by public administrations, or in guaranteed funds ofCanadian financial institutions. The Fund may invest up to 30% of the cost of all of the Fund’s property in foreignsecurities, provided that not less than 95% of the Fund’s property be denominated in Canadian currency.

The price per series unit of each series is expected to be a constant $10 because income of the Fund is allocated toinvestors daily.

The Fund may be managed on a socially responsible investment basis.

WHAT ARE THE RISKS OF INVESTING IN THE FUND?

The Fund’s investments will be in fixed income securities. The Fund’s investments in Canadian government issuers aregenerally considered low risk. Although we intend to maintain a constant price for these units, there is no guarantee thatthe price will not go up or down.

Please turn to page 5 for more information about these risks of investing in the Fund:

credit risk

foreign security risk

interest rate risk

multiple series risk


34

In the last twelve-month period, the Fund has held more than 10% of its net assets in the securities of certain issuers. Themaximum percentages of the net assets of the Fund invested in the securities of such issuers were approximately asfollows:

Canada Housing Trust 14.7%

Canada Mortgage and Housing Corporation 10.4%

The associated concentration risk is discussed under the heading “What are the Risks of Investing in a Mutual Fund?” onpage 5.

WHO SHOULD INVEST IN THE FUND?

This Fund is suitable if:

you are seeking regular monthly income from fund distributions

you are investing for the short term

you are prepared for low risk

The Manager identifies the investment risk level of the Fund to determine investor suitability. The Manager’s investmentrisk rating methodology is described under “How does the Manager Determine Fund Risk?” on page 32. This risk level isreviewed annually and the methodology is available at no cost by contacting us at the address shown on the back cover ofthis document.

DISTRIBUTION POLICY

The Fund allocates income of the Fund daily and distributes income to securityholders on a monthly basis. The Funddistributes capital gains, if any, prior to the end of each year.

The Manager reserves the right to make additional distributions in any year if determined to be appropriate. In each case,distributions will be reinvested by purchasing additional units of the same series of the Fund unless you ask us at least 5business days in advance to be paid in cash rather than receive units of the Fund.

This distribution policy is reviewed not less than once annually and may be changed at any time, depending upon marketconditions.

FUND EXPENSES INDIRECTLY BORNE BY INVESTORS

Mutual funds pay for some fees and expenses out of fund assets. That means investors in a mutual fund indirectly pay forthese fees and expenses through lower returns. The table below is intended to help you compare the cumulative cost ofinvesting in this Fund with the cost of investing in other mutual funds.

This example assumes that (i) you invest $1,000 in Series A units of the Fund for the time periods indicated, (ii) yourinvestment has an annual 5% return, and (iii) the series management expense ratio and operating expenses would be thesame throughout the ten year period as they were in the Fund’s last completed financial year. Fees and expensesapplicable to Series I units are paid directly by each investor.

Although your actual costs may be higher or lower, based on these assumptions your costs will be:

Series 1 YRS 3 YRS 5 YRS 10 YRS

Series A $ 8.54 $ 28.02 $ 51.07 $ 127.74

Please see “Fees and Expenses” for more information about the costs of investing in the Fund.

NEI CANADIAN BOND FUND

35



The Fund aims to provide high current income while protecting your original investment. It invests mostly in bonds,debentures and securities that are issued or guaranteed by the Government of Canada, a province or Canadiancompanies, and money market securities.

The Fund follows a socially responsible approach to investing, as described in Part A of this prospectus.



For the fixed income portion of the Fund, all decisions and strategies are based on seeking the preservation of capital andan active approach to adding value. The analysis of a bond investment is based on both an objective analysis based oncredit ratings (both internal and external) and subjective judgment based on the outlook for the company and industry. Tocontrol risk, the duration of the portfolio is tightly constrained around the duration of the benchmark index. The PortfolioManager makes gradual changes in the portfolio and captures incremental capital gains. Along with forecasting trends ininterest rates and comparative returns among bond sectors, the Portfolio Manager also considers historical norms in itsdecision-making.

The mix of government and corporate bonds is also altered with expected trends in the market.

The Fund may invest, directly or indirectly through the use of derivatives, and up to 10% of its net assets in units of othermutual funds, including funds managed by us. The Portfolio Manager will only invest in units of other funds where suchinvestment is compatible with the investment objectives and strategies of the Fund. These investments will be selected onthe same basis as other investments of the Fund.

The Fund may invest a portion of its assets in non-Canadian securities where such an investment is consistent with theinvestment objectives of the Fund. Although there is no specific limitation on the percentage of assets of the Fund thatmay be invested in non-Canadian securities, as of the date of this simplified prospectus we do not expect that the Fundwill invest more than 15% of its assets in non-Canadian securities.

The Fund may use derivative instruments, such as options, futures, forward contracts and/or swaps, for both hedging andnon-hedging strategies, in a manner which is consistent with the investment objectives of the Fund and as permitted bythe Canadian Securities Administrators, including to:

hedge against losses from changes in the prices of the Fund’s investments and from exposure to foreign currencies;and

gain exposure to individual securities and markets instead of buying the securities directly.

You will find more information about derivatives on page 6.


Fund Type: Canadian Fixed Income

Start Date:

Series A units: April 1, 1967

Series I units: December 23, 1998

Series F units: July 25, 2006



Portfolio Manager: Guardian Capital LP, Toronto, ON


36



capital erosion risk (series A and F only)

credit risk

currency risk

derivative risk


fund of fund risk

interest rate risk


specific issuer risk

tax risk

In the last twelve-month period, the Fund has held more than 10% of its net assets in the securities of an issuer. Themaximum percentage of the net assets of the Fund invested in the securities of such issuer in that period wasapproximately as follows:

Canada Housing Trust 23.7%

The associated concentration risk is discussed under the heading “What are the Risks of Investing in a Mutual Fund?”on page 5.

WHO SHOULD INVEST IN THIS FUND?


you want to receive income

you are investing for the short to medium term



DISTRIBUTION POLICY

The Series A and Series F units will seek to pay a monthly distribution, consisting of income and/or return of capital of afixed amount per unit determined as of December 31 in the previous year. The monthly distribution as determined eachyear will depend on the expected earnings of the Fund over the following year.

The Series I units will seek to pay a quarterly distribution consisting of income and/or return of capital.

In addition, the Fund will, prior to the end of each year, distribute any excess income and capital gains to itssecurityholders.

Distributions in respect of a particular series which consists of a return of capital may be in excess of the returns of theFund attributable to that series and may erode the Fund capital attributable to that series.




37



This example assumes that (i) you invest $1,000 in Series A units or Series F units of the Fund, as the case may be, for thetime periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratio andoperating expenses would be the same throughout the ten year period as they were in the Fund’s last completed financialyear. Fees and expenses applicable to Series I units are paid directly by each investor.

Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Series 1 YR 3 YRS 5 YRS 10 YRS

Series A $ 16.94 $ 55.14 $ 99.70 $ 244.55

Series F $ 11.73 $ 38.37 $ 69.73 $ 173.13


NEI INCOME FUND

38

NEI INCOME FUND

Fund Type: Canadian Fixed Income

Start Date:

Series A units: November 8, 2005

Series F units: September 15, 2011

Series I units: October 4, 2011




Portfolio Sub-Advisor: Beutel Goodman & Company Ltd., Toronto, ON


Investment objectives

The Fund aims to provide income and the potential for capital gains by investing mostly in fixed income securities andincome trusts.



In order to achieve the Fund’s investment objective, we have constructed an investment portfolio that invests primarily ininvestment grade Canadian corporate bonds and debt obligations of Canadian provinces.


The Fund may temporarily hold a portion of its assets in cash or fixed-income securities while seeking investmentopportunities or for defensive purposes during times of anticipated market volatility.





The Fund may be managed on a socially responsible investment basis.



credit risk

currency risk

derivative risk


NEI INCOME FUND

39

interest rate risk

investment trust risk

large transaction risk

liquidity risk


smaller company risk


tax risk

As at June 5, 2014, NEI Northwest Growth and Income Fund, NEI Select Canadian Balanced Portfolio, NEI Ethical SelectConservative Portfolio and NEI Select Conservative Portfolio held approximately 17.9%, 16.7%, 12.6% and 12.4% of theFund, respectively. Please see “Large Transaction Risk” on page 8 for details of the risk associated with a possibleredemption of securities of the Fund by these investors.



you want to receive income

you are investing for the short to medium term

you are prepared for low risk.


DISTRIBUTION POLICY

The Fund will seek to pay a monthly distribution, consisting of income and capital gains. In addition, the Fund will, prior tothe end of each year, distribute any excess income and capital gains to its securityholders.








Series A $ 16.84 $ 54.81 $ 99.12 $ 243.19

NEI INCOME FUND

40


Series F $ 11.01 $ 36.05 $ 65.55 $ 163.01


NEI GLOBAL TOTAL RETURN BOND FUND

41

* Amundi S.A (Amundi) is not registered in Ontario to provide portfolio advisory services. Amundi’s head office is located in theUnited Kingdom and all or substantially all of its assets may be situated outside of Canada. As a result, it may be difficult toenforce legal rights against Amundi. The name and address of the agent for service of process of Amundi is Borden LadnerGervais LLP., Scotia Plaza, 40 King Street West, Toronto, Ontario M5H 3Y4. Amundi is the Commodity Futures PortfolioManager.



The investment objective of the Fund is to provide high level of current income with the potential for capital gains. TheFund will invest its assets primarily in global fixed income instruments from both developed and emerging markets. TheFund can invest across all sectors and credit qualities but will be primarily invested in investment grade securities ratedBBB- and above by Standard & Poor’s (or its equivalent by qualified rating agencies).




The Portfolio Sub-Advisor and Commodity Futures Portfolio Manager apply an investment process based on a rigorousglobal top-down approach consisting of allocating the active risk of the portfolio taking into consideration durationmanagement, country and yield curve decisions, sovereign bonds, credit allocations and currency management. Duringnormal periods, these factors are expected to have low correlation and improve the portfolio diversification.

The Portfolio Sub-Advisor and Commodity Futures Portfolio Manager investment process consists of multiple steps. TheGlobal Fixed Income and Currency team first prepares a macro-economic outlook for the markets. This is followed byconstruction of the strategic bond and currency scenario by the Investment Policy Orientation Committee to determinethe team’s strategic views on the main global government, corporate and emerging bond, and currency markets. ThePortfolio Sub-Advisor and Commodity Futures Portfolio Manager team, based on this analysis, will then implement thefinal portfolio positions through cash, bonds and/or derivatives.

The Fund has obtained an exemption from the Canadian securities regulators to permit the Fund to invest more than 10%of the Fund’s net asset value in fixed income securities issued or guaranteed by various governments or permittedinternational agencies that are traded on mature and liquid markets (“Foreign Government Securities”) and provided thatthe acquisition of these securities is consistent with the Fund’s investment objective. Specifically, the exemption permitsthe Fund to invest up to:


Fund Type: Global Fixed Income

Start Date:

Series A units: September 18, 2013


Series I units: September 18, 2013

Series T units: June 26, 2014

Series P units: June 26, 2014

Series PF units: June 26, 2014



Portfolio Manager:Northwest & Ethical Investments L.P., Toronto, ON*Amundi S.A., London, United Kingdom

Portfolio Sub-Advisor: Amundi Canada Inc., Montréal, Québec


42

35% of the Fund’s net asset value at the time of the transaction in evidences of indebtedness of any one issuer if thoseevidences of indebtedness are issued, or guaranteed fully as to principal and interest, by supranational agencies orgovernments other than the government of Canada, the government of a jurisdiction in Canada, or the government ofthe United States of America and are rated “AAA” by Standard & Poor’s, or have an equivalent rating by one or moreother designated rating organizations; and

20% of the Fund’s net asset value at the time of the transaction in evidences of indebtedness of any one issuer if thoseevidences of indebtedness are issued, or guaranteed fully as to principal and interest, by supranational agencies orgovernments other than the government of Canada, the government of a jurisdiction in Canada or the government ofthe United States of America and are rated “AA” by Standard & Poor’s, or have an equivalent rating by one or moreother designated rating organizations.

The risks associated with the Fund’s investments in Foreign Government Securities pursuant to the exemption includeconcentration risk (which may include the potential additional exposure to the risk of default of the issuer in which theFund has so invested), emerging markets risk and foreign security risk. Please see page 5 for more information about theserisks.

The Fund may enter into repurchase and reverse repurchase transactions to provide additional earnings to the Fund.

The Fund may temporarily hold a portion of its assets in cash or money markets securities while seeking investmentopportunities or for defensive purposes during times of anticipated market volatility.

The Fund may use derivative instruments, such as options, futures, forward contracts and/or swaps, for both hedging andnon-hedging strategies, in a manner which is consistent with the investment objectives of the Fund and as permitted bythe Canadian Securities Administrators. The Fund has obtained an exemption from the Canadian securities regulators,subject to certain conditions, to permit it to use as cover a right or obligation to sell an equivalent quantity of theunderlying interest of a standardized future, forward or swap when: (i) it opens or maintains a long position in a debt-likesecurity that has a component that is a long position in a forward contract or in a standardized future or forward contract;or (ii) it enters into or maintains a swap position and during the periods when the fund is entitled to receive paymentsunder the swap, when the Fund enters into such derivatives transactions for non-hedging purposes.


The Fund’s investments will be in fixed income securities.


capital erosion risk (series T units only)

concentration risk

credit risk

currency risk

derivative risk

emerging markets risk


interest rate risk


liquidity risk


repurchase, and reverse repurchase risk


tax risk

As at June 5, 2014, NEI Canadian Bond Fund held approximately 28.9% of the Fund. Please see “Large Transaction Risk” onpage 8 for details of the risk associated with a possible redemption of securities of the Fund by this investor.


43



you are seeking income, through an investment diversified by geography

you are investing for the medium term (3-5 years)

you are prepared for low to medium risk


DISTRIBUTION POLICY

The Series A and Series F units of the Fund distribute income to securityholders on a monthly basis consisting of incomeand/or return of capital based on the expected earnings of the Fund.

The Series P and Series PF units will seek to pay a quarterly distribution, consisting of income and/or return of capital.

The Series T units of the Fund will seek to pay a monthly distribution consisting of income and/or return of capital of afixed amount per unit determined as of December 31 in the previous year.



Distributions in respect of a particular series which consist of a return of capital may be in excess of the returns of theFund attributable to that series and may erode the Fund capital attributable to that series.


This distribution policy is reviewed not less than once annually and may be changed at any time, depending upon marketconditions



This example assumes that (i) you invest $1,000 in Series A, Series F, Series T, Series P or Series PF units of the Fund, as thecase may be, for the time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series managementexpense ratio and operating expenses would be the same throughout the ten year period as they were in the Fund’s lastcompleted financial year. Fees and expenses applicable to Series I units are paid directly by each investor.



Series A $ 20.59 $ 66.77 $ 120.32 $ 292.65

Series F $ 12.55 $ 41.03 $ 74.49 $ 184.60

Series T1

− − − −

Series P1

− − − −

Series PF1

− − − −


44

Please see “Fees and Expenses” for more information about the costs of investing in the Fund.1No information is available for this series as it is new.

NEI ETHICAL BALANCED FUND

45


Fund Type: Canadian Balanced

Start Date:

Series A units: June 1, 1989






Portfolio Sub-Advisor: OtterWood Capital Management Inc., Toronto, ON



The Fund aims to increase the value of your investment over the long term, protect your original investment andprovide a high degree of current income. It invests mostly in a mix of Canadian and US equities and fixed incomeinvestments.




The Fund’s asset allocation is actively determined based on the Portfolio Sub-Advisor’s assessment of various macro-economic factors. The variables typically analyzed are those linked to the fixed income market including but not limited tofinancial market liquidity, sovereign solvency, credit spreads, money flows into the banking system and central banksbehavior.

Selection of each equity security is driven by a bottom-up investment process using a “growth at reasonable price”approach. The security selection process is focused on companies that generate high and growing levels of free cash flowand dividends.

For the fixed income portion of the Fund, the Portfolio Sub-Advisor uses its macro-economic outlook to determine thesector and maturity positioning. Credit analysis is then conducted using both internal and external research todetermine the most attractively priced securities. The fixed income portion of the Fund will seek to maintain at alltimes, an average credit rating of A or higher, and will not invest more than 10% (at the time of investment) in belowinvestment grade issues according to Standard & Poor’s or other appropriate credit rating agency.

Sales of securities can occur once a target weighting or target price is reached, when the fundamentals of securitieschange such as management turnover, or as part of a larger asset allocation adjustment. The Portfolio Sub-Advisor mayalso use certain trading strategies to mitigate risk.

The Fund may invest a portion of its net assets in non-Canadian securities where such an investment is consistent with theinvestment objectives of the Fund. Although there is no specific limitation on the percentage of assets of the Fund thatmay be invested in non-Canadian securities, as of the date of this simplified prospectus we do not expect that the Fundwill invest more than 30% of its assets in non-Canadian securities.

The Fund may temporarily hold a portion of its assets in cash or fixed-income securities while seeking investmentopportunities, or for defensive purposes during times of anticipated market volatility and/or based on the PortfolioSub-Advisor’s outlook for the economy and global capital markets.

The Fund may invest, directly or indirectly through the use of derivatives, a portion or even all of its assets in units of othermutual funds, including funds managed by us. The Portfolio Sub-Advisor will only invest in units of other funds where such


46

investment is compatible with the investment objectives and strategies of the Fund. These investments will be selected onthe same basis as other investments held within the Fund.

The Fund intends to invest in certain ETFs. The ETFs are commodity pools that use financial instruments that correlate to amultiple (or inverse multiple) of the performance of a specified underlying index. The Fund will only invest in ETFs thatprovide exposure to securities that are consistent with the investment objectives and strategies of the Fund.

The Fund may also invest up to 10% of its net assets in precious metals, including gold, silver or permitted gold or silvercertificates (or specified derivatives of which the underlying interest is gold or silver).

The Fund may also engage in short selling. A short sale by a fund involves borrowing securities from a lender which arethen sold in the open market. At a future date, the securities are repurchased by the Fund and returned to the lender.While the securities are borrowed, the proceeds from the sale are deposited with the lender and the Fund pays interest tothe lender. If the value of the securities declines between the time that the Fund borrows the securities and the time itrepurchases and returns the securities to the lender, the Fund makes a profit on the difference (less any interest the fundis required to pay the lender). The Portfolio Sub-Advisor believes that a short selling strategy will complement the Fund’scurrent primary discipline of buying securities with the expectation that they will appreciate in market value.





The Fund’s portfolio turnover rate may be high. The higher the Fund’s portfolio turnover rate the greater the chancethat you may receive a distribution from the Fund that must be included in determining your taxable income for taxpurposes and the higher the Fund’s trading costs, which are an expense of the Fund and are paid out of the Fund’sassets, so that your returns may be reduced.



asset allocation risk

capital erosion risk (series A and Series F units only)

commodity risk

credit risk

currency risk

derivative risk

exchange traded funds risk


fund of fund risk

interest rate risk


short selling risk


stock market risk

tax risk


47



you want a balanced investment in a single fund

you are investing for the medium to long term



DISTRIBUTION POLICY












Series A $ 23.91 $ 77.29 $ 138.84 $ 335.13

Series F $ 13.07 $ 42.68 $ 77.46 $ 191.71


NEI ETHICAL CANADIAN EQUITY FUND

48


Fund Type: Canadian Equity

Start Date:


Series I units: July 2, 2003





Portfolio Sub-Advisor: QV Investors Inc., Calgary, AB



The investment objective of the Fund is to maximize returns primarily through a combination of dividends and capitalgrowth from Canadian companies.




The Portfolio Manager uses a fundamental research approach, employing a bottom-up stock selection process thatincludes company visits and management interviews. The Portfolio Manager’s selection process focuses on the acumen,commitment and depth of the management, the company’s record of financial benefit to shareholders, the developmentof the company’s business franchise, the strength of the company’s financing, the valuation of the company’s securities,and the culture of dividend payment. The Portfolio Manager seeks to create a portfolio of enduring quality, value andgrowth, including dividend growth. Turnover is minimized to reduce costs. Additionally, the Portfolio Manager managesthe risks and the industry weightings in the portfolio to seek to reduce volatility, increase income, maintain diversificationand assure consistency of return. The Portfolio Manager also analyzes economic, financial, political and consumer trendsto help determine the most attractive sectors and industries.

The Fund may invest, directly or indirectly through the use of derivatives, a portion or even all of its net assets in units ofother mutual funds, including funds managed by us. The Portfolio Sub-Advisor will only invest in units of other fundswhere such investment is compatible with the investment objectives and strategies of the Fund. These investments will beselected on the same basis as other investments of the Fund.



The Fund may use derivatives for hedging purposes only. You will find more information about derivatives on page 6.


49



capital erosion risk (series A and F units only)

derivative risk

fund of fund risk

interest rate risk

liquidity risk




stock market risk

tax risk



you are seeking growth, through capital appreciation, and some dividend income

you are investing for the long term

you are prepared for medium risk


DISTRIBUTION POLICY









This example assumes that (i) you invest $1,000 in Series A units or Series F units of the Fund, as the case may be, for thetime periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratio and


50

operating expenses would be the same throughout the ten year period as they were in the Fund’s last completed financialyear. Fees and expenses applicable to Series I units are paid directly by each investor.



Series A $ 26.61 $ 85.80 $ 153.73 $ 368.78

Series F $ 16.13 $ 52.53 $ 95.06 $ 233.61


NEI ETHICAL SPECIAL EQUITY FUND

51



The Fund aims to increase the value of your investment over the long term by investing mostly in common shares of smallcapitalization or “small cap” Canadian companies listed on a stock exchange.




The Portfolio Manager invests mostly in small cap companies having a market capitalization at the time of investmentbetween $100 million and $2.5 billion. The Portfolio Manager uses a fundamental research approach, employing abottom-up stock selection process that includes company visits and management interviews. The Portfolio Manager’sselection process focuses on the acumen, commitment and depth of the management, the company’s record of financialbenefit to shareholders, the development of the company’s business franchise, the strength of the company’s financing,the valuation of the company’s securities, and the culture of dividend payment. The Portfolio Manager seeks to create aportfolio of enduring quality, value and growth, including dividend growth. Turnover is minimized to reduce costs.Additionally, the Portfolio Manager manages the risks and the industry weightings in the portfolio to seek to reducevolatility, increase income, maintain diversification and assure consistency of return. The Portfolio Manager also analyzeseconomic, financial, political and consumer trends to help determine the most attractive sectors and industries.

The Fund may invest, directly or indirectly through the use of derivatives, a portion or even all of its net assets in units ofother mutual funds, including funds managed by us. The Portfolio Manager will only invest in units of other funds wheresuch investment is compatible with the investment objectives and strategies of the Fund. These investments will beselected on the same basis as other investments of the Fund.






derivative risk

fund of fund risk


Fund Type: Canadian Small/Mid Cap Equity

Start Date:

Series A units: January 11, 1995





Portfolio Manager: QV Investors Inc., Calgary, AB


52

interest rate risk

liquidity risk




stock market risk

tax risk



you are seeking growth, though capital appreciation




DISTRIBUTION POLICY

The Fund usually distributes income and capital gains in December.








Series A $ 28.90 $ 92.98 $ 166.23 $ 396.68

Series F $ 18.16 $ 59.04 $ 106.62 $ 260.79


NEI ETHICAL AMERICAN MULTI-STRATEGY FUND

53


Fund Type: US Equity

Start Date:






Portfolio Manager: *Manning & Napier Advisors, Inc. Fairport, NY, U.S.A.

* Manning & Napier Advisors, Inc. (Manning & Napier) is not registered in Ontario to provide portfolio advisory services.Manning & Napier’s head office is located in Fairport, NY and all or substantially all of its assets may be situated outside ofCanada. As a result it may be difficult to enforce legal rights against Manning & Napier. The name and address of the agent forservice of process of Manning & Napier is Wildeboer Dellelce LLP., Suite 800, Wildeboer Dellelce Place, 365 Bay Street, Toronto,Ontario, M5H 2V1.



The Fund aims to increase the value of your investment over the long term by investing mostly in the common shares of awide variety of companies listed on North American stock exchanges.




The Portfolio Manager uses a combination of qualitative company selection strategies and a strict pricing discipline.Implementation of this approach involves an interaction between top-down, macroeconomic analysis, bottom-up industryanalysis, and security selection.

The Portfolio Manager’s in-house team of equity analysts relies upon three broad equity strategies: Strategic Profile,Hurdle Rate and Bankable Deal. In general terms, the Strategic Profile strategy focuses on companies positioned forrobust future growth but whose valuations do not reflect that growth potential. The Hurdle Rate strategy looks atcompanies that are in depressed sectors, but are strong enough to survive the hard times and are likely to lead therebound of their industries when supply/demand conditions improve. The Bankable Deal strategy takes an in-depthlook at the current assets and cash flow of a company to reveal value that is not reflected in the stock’s price.



The Fund may invest up to 100% of its property in foreign securities.




currency risk

derivative risk


54


interest rate risk



stock market risk

tax risk



you are seeking growth, through a diversified portfolio of American corporations




DISTRIBUTION POLICY









Series A $ 26.11 $ 84.23 $ 150.99 $ 362.62

Series F $ 15.11 $ 49.26 $ 89.23 $ 219.79


NEI ETHICAL GLOBAL DIVIDEND FUND

55


Fund Type: Global Equity

Start Date:

Series A units: October 30, 2007

Series F units: October 30, 2007

Series I units: October 30, 2007





Portfolio Manager: Beutel, Goodman & Company Ltd., Toronto, ON



The Fund seeks long-term capital appreciation and income by investing primarily in equity securities of companiesanywhere in the world that pay, or may be expected to pay, dividends as well as in other types of securities that may beexpected to distribute income.




The Fund is managed through a fundamental value process that seeks to invest in quality, liquid companies whosemanagement has successfully built shareholder value over time. A common characteristic of these companies is theirability to generate free cash flow, which supports growth and profitability, allows management to make strategicacquisitions, buy back stock and pay generous and growing dividends.

Through investments in North American and non-North American markets, the companies selected by the PortfolioManager are expected to have attractive total return potential relative to downside risk through investment in blue chipcommon and preferred shares, high quality selective income and royalty trusts and interest bearing securities.

A consistent research framework is employed, which allows for direct comparison of diverse opportunities across globalmarkets and economic sectors. The cornerstone of the research process is the determination of a company's businessvalue, defined as the present value of sustainable free cash flow. Given the importance of sustainable and growingdividends, balance sheet analysis to determine financial strength is essential to research and investment success.







capital erosion risk (series A and F units only)


56

currency risk

derivative risk

emerging market risk


fund of fund risk


interest rate risk


liquidity risk



stock market risk

tax risk







DISTRIBUTION POLICY


The Series P and Series PF units will seek to pay a quarterly distribution, consisting of income and/or return of capital.

The Series I units will seek to pay a monthly distribution consisting of income and/or return of capital.








57

This example assumes that (i) you invest $1,000 in Series A, Series F, Series P or Series PF units of the Fund, as the casemay be, for the time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series managementexpense ratio and operating expenses would be the same throughout the ten year period as they were in the Fund’s lastcompleted financial year. Fees and expenses applicable to Series I units are paid directly by each investor.



Series A $ 26.91 $ 86.74 $ 155.37 $ 372.45

Series F $ 16.33 $ 53.18 $ 96.22 $ 236.35

Series P1

− − − −

Series PF1

− − − −


NEI ETHICAL GLOBAL EQUITY FUND

58



Start Date:






Portfolio Manager: *Manning & Napier Advisors, Inc., Fairport, NY, U.S.A.

* Manning & Napier Advisors, Inc. (Manning & Napier) is not registered in Ontario to provide portfolio advisory services.Manning & Napier’s head office is located in Fairport, NY and all or substantially all of its assets may be situated outside ofCanada. As a result it may be difficult to enforce legal rights against Manning & Napier. The name and address of the agent forservice of process of Manning & Napier is Wildeboer Dellelce LLP., Suite 800, Wildeboer Dellelce Place, 365 Bay Street, Toronto,Ontario, M5H 2V1.



The Fund aims to increase the value of your investment over the long term by investing in all types of securities issued bycompanies or governments of any nation.




The Portfolio Manager uses an equity investment approach, based on a combination of qualitative company selectionstrategies and a strict pricing discipline. Implementation of this approach involves an interaction between top-down,macroeconomic analysis, bottom-up industry analysis, and security selection.

The Portfolio Manager’s in-house team of equity analysts relies upon three broad equity strategies: Strategic Profile,Hurdle Rate, and Bankable Deal. In general terms, the Strategic Profile strategy focuses on companies positioned forrobust future growth, but whose valuations do not reflect that growth potential. The Hurdle Rate strategy looks atcompanies that are in depressed sectors, but are strong enough to survive the hard times, and are likely to lead therebound of their industries when supply/demand conditions improve. The Bankable Deal strategy take an in-depth look atthe current assets and cash flow of a company to reveal value that is not reflected in the stock’s price.







currency risk


59

derivative risk


fund of fund risk

interest rate risk



stock market risk

tax risk



you are seeking growth, though capital appreciation




DISTRIBUTION POLICY









Series A $ 27.71 $ 89.24 $ 159.73 $ 382.21

Series F $ 17.15 $ 55.79 $ 100.86 $ 247.27


NEI ETHICAL INTERNATIONAL EQUITY FUND

60


Fund Type: International Equity

Start Date:






Portfolio Manager: *William Blair & Company, L.L.C., Chicago, IL, U.S.A.

* William Blair & Company, L.L.C. (“Blair”) is not registered in Ontario to provide portfolio advisory services. Blair’s head office islocated in Chicago, IL and all or substantially all of its assets may be situated outside of Canada. As a result it may be difficultto enforce legal rights against Blair. The name and address of the agent for service of process of Blair is FMD Service (Ontario)Inc., 333 Bay Street, Suite 2400 Bay Adelaide Centre, Box 20, Toronto, Ontario M5H 2T6.



The investment objective of the Fund is to achieve long-term capital growth by investing primarily in equity and equity-related securities of companies located mainly outside of Canada and the United States.




The investment approach is to focus on companies with above-average growth prospects where growth can be sustainedthrough leading or high quality, durable business franchises in terms of proprietary products, marketing dominance orcost/asset base advantage. The process of identifying potential investment candidates focuses on their above averageprospective growth, evidence of sustainability of future growth (strong market share, protected product or marketposition), above average profitability and reinvestment of internal capital (current or prospective), and conservativecapital structure relative to sector norms.

The Portfolio Manager believes that the most important factor influencing its decision is intensive research on companiesaround the world. Whether it involves discussions with outside analysts, evaluation of written reports, or direct companycontacts, the Portfolio Manager’s fundamental research is designed to address the same issues of quality, prospectivenear-term and long-term growth and valuation that are measured in their quantitative tools. Fundamental researchenables the Portfolio Manager to form qualitative judgments about a company’s overall outlook in the context of a givenset of market expectations. Another key aspect of the selection technique is to include securities that diversify theportfolio by industry sector and by capitalizations. All buy and sell decisions are supported by the intensive fundamentalresearch conducted by the portfolio management team.

Regional allocation is driven by the "bottom up" fundamental research process but will also consider the conditions andgrowth potential of various countries and other pertinent financial, social, national and political factors.

The Fund may invest, directly or indirectly through the use of derivatives, a portion or even all of its net assets in unitsof other mutual funds, including funds managed by us. The Portfolio Manager will only invest in units of other fundswhere such investment is compatible with the investment objectives and strategies of the Fund. These investments willbe selected on the same basis as other investments of the Fund.




61


WHAT ARE THE RISKS OF INVESTING IN THE FUND


currency risk

derivative risk



fund of fund risk

interest rate risk

liquidity risk



stock market risk

tax risk



you are seeking long term capital growth, through a diversified portfolio of international equities



The Manager identifies the investment risk level of the Fund to determine investor suitability. The Manager’s investment riskrating methodology is described under “How does the Manager Determine Fund Risk?” on page 32. This risk level is reviewedannually and the methodology is available at no cost by contacting us at the address shown on the back cover of this document.

DISTRIBUTION POLICY








62



Series A $ 30.68 $ 98.55 $ 175.90 $ 418.05

Series F $ 19.38 $ 62.91 $ 113.50 $ 276.82


NEI NORTHWEST SPECIALTY HIGH YIELD BOND FUND

63


Fund Type: High Yield Fixed Income

Start Date:

Series A units: December 20, 1991

Series F units: June 1, 2004


Series T units: July 3, 2012

Securities Offered: Mutual fund units



Portfolio Sub-Advisor: *Aviva Investors Americas LLC, Chicago, IL, U.S.A.

* As a Portfolio Manager, we have responsibility for the investment advice given and portfolio management services provided tothe Fund by Aviva Investors Americas LLC (“Aviva”). In certain circumstances, it may be difficult to enforce legal rights againstAviva because it is resident outside Canada and all or substantially all of its assets are located outside Canada.



The investment objective of this Fund is to provide a high level of current income while maintaining security of capital. TheFund invests primarily in a diversified portfolio of high-yield, higher risk, lower quality Canadian corporate bonds andnotes and may also invest in other fixed income investments with similar characteristics. Most of the investments will berated BBB and below by the Canadian Bond Rating Service (or its equivalent by another recognized bond rating service).The Fund may also invest in investments that are not rated, investments that are in default at the time of purchase, andmay invest in investments denominated in foreign currencies.

It is expected that, except for temporary defensive purposes, the Fund will invest at least 80% of its net assets in high-yielding, income-producing corporate bonds.



The Portfolio Sub-Advisor uses an investment strategy that focuses on creating higher returns with less volatility,employing a bottom-up approach to selecting securities that are priced at a discount to their assessed value but with goodpotential for upgrade.

The Portfolio Sub-Advisor focuses on fundamental credit research and uses a factor/variable framework to determine buycandidates and sector weighting. Analysis of fundamentals, technicals and valuations (FTV) help the Portfolio Sub-Advisoridentify directional indicators, short term influences, and ultimately whether a company is priced cheaply or expensively.

The Fund generally sells an investment if the Portfolio Sub-Advisor believes that the original investment thesis forinvestment in the security is no longer intact. Specifically if the issuer displays deteriorating cash flows, an ineffectivemanagement team, or an unattractive relative valuation the Portfolio Sub-Advisor will look to sell the security.

In ordinary circumstances, the Fund may invest up to 20% of its net assets in short-term money market instruments andother income producing cash items and may invest a greater percentage of its net assets in such money marketinvestments and other cash items as a temporary defensive measure.

The Fund may use derivatives for foreign currency hedging. You will find more information about derivatives on 6.

The Fund may also invest up to 10% of its net assets at the time of investment in illiquid securities (i.e., securities thatcannot be readily sold). In accordance with its objective of generating a high level of current income, the Fund may investup to 15% of its net assets at the time of investment in common equity, income trusts (including real estate investment


64

trusts), preferred shares and other non-debt-like investments. Further, while the Fund will favour cash-paying instrumentsover deferred pay securities, it may invest in “zero-coupon” bonds (where interest payments accrue until maturity) and“pay in kind” bonds (where interest payments are made in additional shares).

The Fund does not have specific targeted average portfolio duration; however, it is expected that the majority of itsinvestments will have a term to maturity of ten years or less.

The Fund may invest up to 49% of the Fund’s property in foreign securities. The Fund may invest in units of other mutualfunds, including mutual funds managed by us, with respect to the foreign portion of the Fund’s portfolio.



Most of the Fund’s assets are invested, directly or indirectly, in high-yield, higher-risk fixed income securities.


capital erosion risk (Series T units only)

credit risk

currency risk

derivative risk


fund of fund risk

interest rate risk


liquidity risk



tax risk

Higher Risk Fixed Income Securities

Higher-yielding, higher risk income securities, like the securities in which the Fund invests, are subject to greater risk ofloss of principal and income than higher-rated fixed income securities and are considered to be less certain with respect tothe issuer’s capacity to pay interest and repay principal.

An economic downtrend could adversely impact issuers as to the ability to pay interest and repay principal and couldresult in issuers defaulting on such payments. In addition, the value of lower rated or unrated corporate income securitiesis also affected by investors’ perceptions. When economic conditions appear to be deteriorating, lower-rated or unratedincome securities may decline in market value due to investors’ heightened concerns and perceptions over credit quality.

Lower-rated and unrated corporate bonds and notes are traded principally by dealers in the over-the-counter market.The market for these securities may be less active and less liquid than for higher rated securities. Under adverse market oreconomic conditions, the secondary market for these bonds and notes could contract further, causing the Fund difficultiesin valuing and selling its securities.


The Fund is only suitable if:

you are seeking a more aggressive income yield strategy

you are investing for the medium term



65

The Fund is designed in particular for those investors who seek income and recognize the potential for increased yieldsfrom investing in lower rated and unrated corporate fixed income securities and wish to do so through a professionallymanaged portfolio. The Fund provides such investors the opportunity to participate in a diversified portfolio of primarilyfixed income securities that may not otherwise be available to them and to do so with an investment size which might nototherwise make them eligible to engage a professional portfolio manager.


DISTRIBUTION POLICY

The Series A units of the Fund distribute earnings at an amount and frequency as appropriate to the experience of theFund.

The Series F and Series T units of the Fund will seek to pay a monthly distribution, consisting of income and/or return ofcapital of a fixed amount per unit determined as of December 31 in the previous year. The monthly distribution of theSeries F units as determined each year will depend on the expected earnings of the Fund over the following year.








This example assumes that (i) you invest $1,000 in Series A, Series F or Series T units of the Fund, as the case may be, forthe time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratioand operating expenses would be the same throughout the ten year period as they were in the Fund’s last completedfinancial year. Fees and expenses applicable to Series I units are paid directly by each investor.



Series A $ 23.01 $ 74.44 $ 133.83 $ 323.69

Series F $ 14.60 $ 47.62 $ 86.30 $ 212.83

Series T $ 23.31 $ 75.39 $ 135.50 $ 327.51


NEI NORTHWEST SPECIALTY GLOBAL HIGH YIELD BOND FUND

66


Fund Type: High Yield Fixed Income

Start Date:

Series A units: June 10, 2005







Portfolio Sub-Advisor: *Aviva Investors Americas LLC, Chicago, IL, U.S.A.

* As a Portfolio Manager, we have responsibility for the investment advice given and portfolio management services provided tothe Fund by Aviva Investors Americas LLC (“Aviva”). In certain circumstances, it may be difficult to enforce legal rights againstAviva because it is resident outside Canada and all or substantially all of its assets are located outside Canada.



The investment objective of this Fund is to provide a high level of current income while maintaining security of capital. TheFund invests primarily in a diversified portfolio of high-yield, higher risk, global corporate bonds and notes and may alsoinvest in other fixed income investments with similar characteristics. Most of the investments will be rated “BBB-” andbelow by Standard and Poor’s or Fitch, and “Baa3” or below by Moody’s or an equivalent rating by another recognizedbond rating service. The Fund may also invest in investments that are not rated, investments that are in default at thetime of purchase, and may invest in investments denominated in emerging market countries’ currencies.

It is expected that, except for temporary defensive purposes, the Fund will invest at least 80% of its net assets in high-yielding, income-producing corporate bonds.



The Portfolio Sub-Advisor uses an investment strategy that focuses on creating higher returns with less volatility,employing a bottom-up approach to selecting securities that are priced at a discount to their assessed value but with goodpotential for upgrade.

The Portfolio Sub-Advisor focuses on fundamental credit research and uses a factor/variable framework to determine buycandidates and sector weighting. Analysis of fundamentals, technicals and valuations (FTV) help the Portfolio Sub-Advisoridentify directional indicators, short term influences, and ultimately whether a company is priced cheaply or expensively.

The Fund generally sells an investment if the Portfolio Sub-Advisor believes that the original investment thesis forinvestment in the security is no longer intact. Specifically if the issuer displays deteriorating cash flows, an ineffectivemanagement team, or an unattractive relative valuation the Portfolio Sub-Advisor will look to sell the security.

In ordinary circumstances, the Fund may invest up to 20% of its net assets in short-term money market instruments andother income producing cash items and may invest a greater percentage of its net assets in such money marketinvestments and other cash items as a temporary defensive measure.


The Fund may use derivatives for foreign currency hedging. You will find more information about derivatives on page 6.


67


Most of the Fund’s assets are invested, directly or indirectly, in high-yield, higher-risk fixed income securities.



credit risk

currency risk

derivative risk



interest rate risk


liquidity risk



tax risk

As at June 5, 2014, NEI Northwest Tactical Yield Fund held approximately 25.1% of the Fund. Please see “Large TransactionRisk” on page 8 for details of the risk associated with a possible redemption of securities of the Fund by this investor.


Higher-yielding, higher risk income securities, like the securities in which the Fund invests, are subject to greater risk ofloss of principal and income than higher-rated fixed income securities and are considered to be less certain with respect tothe issuer’s capacity to pay interest and repay principal.


Lower-rated and unrated corporate bonds and notes are traded principally by dealers in the over-the-counter market. Themarket for these securities may be less active and less liquid than for higher rated securities. Under adverse market oreconomic conditions, the secondary market for these bonds and notes could contract further, causing the Fund difficultiesin valuing and selling its securities.


The Fund is suitable if:

you are seeking a more aggressive income yield strategy





68

DISTRIBUTION POLICY

The Series A units of the Fund distribute earnings at an amount and frequency as appropriate to the experience of theFund.

The Series F and Series T units of the Fund will seek to pay a monthly distribution, consisting of income and/or return ofcapital of a fixed amount per unit determined as of December 31 in the previous year. The monthly distribution of Series Funits, as determined each year will depend on the expected earnings of the Fund over the following year.











Series A $ 22.81 $ 73.80 $ 132.71 $ 321.13

Series F $ 14.19 $ 46.31 $ 83.95 $ 207.23

Series T $ 22.91 $ 74.12 $ 133.27 $ 322.41


NEI NORTHWEST TACTICAL YIELD FUND

69


Fund Type: Tactical Balanced

Start Date:




Series T units: September 1, 2010






Portfolio Sub-Advisors:*Aviva Investors Americas LLC, Chicago, IL, U.S.A.

River Road Asset Management LLC, Louisville, KY, U.S.A. (US Equity portion)

* As a Portfolio Manager, we have responsibility for the investment advice given and portfolio management services provided tothe Fund by Aviva Investors Americas LLC (“Aviva”). In certain circumstances, it may be difficult to enforce legal rights againstAviva because it is resident outside Canada and all or substantially all of its assets are located outside Canada. Aviva has hiredRiver Road Asset Management LLC to provide sub-advisory services to Aviva in respect of the Fund.



The Fund aims to generate a high level of income while providing some potential for capital growth primarily throughexposure to a portfolio of fixed income and high yielding equity securities. The Fund uses a tactical approach to assetallocation based on the attractiveness of the asset class and potential return.



The Fund invests primarily in debt and income-oriented equity securities with no restrictions on market capitalization,industry sector or geographic mix. The allocations will be decided on a tactical basis by the Portfolio Sub- Advisor based onthe attractiveness of the asset class and potential return. Considerations may include, but are not limited to, economicand market conditions, cash yields, total return characteristics and risk profiles.

The Portfolio Sub-Advisor uses an investment strategy that seeks to create higher returns with less volatility, by employinga bottom-up approach to selecting securities that are priced at a discount to their assessed value.

The Fund generally sells an investment if the target return is attained or the Portfolio Sub-Advisor believes that theoriginal investment thesis for investment in the security is no longer intact. Specifically, if the issuer displays deterioratingcash flows, an ineffective management team, or an unattractive relative valuation the Portfolio Sub-Advisor will look tosell the security.

In normal market conditions potential investments may include: Government debt, investment grade corporate debt, highyield debt, convertible debt, bank loans, dividend paying common shares, preferred shares, REITs, Income Trusts, othermutual funds, credit default swaps, ETFs and closed end funds.

The Fund may purchase units of other mutual funds, including mutual funds managed by us, to gain exposure to othersecurities and income producing vehicles of up to 100% of the portfolio.



70

The Fund may use derivatives (foreign currency swaps) for foreign currency hedging. The Fund may also use derivatives(credit default swaps) for non-hedging purposes, limited to no more than 5% of the portfolio.




You will find more information about derivatives on page 6





credit risk

currency risk

derivative risk



fund of funds risk

interest rate risk


liquidity risk



stock market risk

tax risk


NEI Northwest Canadian Dividend Fund 15.6%

NEI Northwest Specialty Global High Yield Bond Fund 38.1%




you are seeking current income (monthly for Series T units and Series F units), through an active asset allocationstrategy

you are investing for the medium to the long term


The Manager identifies the investment risk level of the Fund to determine investor suitability. The Manager’s investmentrisk rating methodology is described under “How does the Manager Determine Fund Risk?” on page 32. This risk level is


71

reviewed annually and the methodology is available at no cost by contacting us at the address shown on the back cover ofthis document.

The Fund may be appropriate if you are seeking a balance of capital gains and income and you are comfortable with therisks related to equity and fixed income investments.

DISTRIBUTION POLICY

For Series A, Series P and Series PF units of the Fund will seek to pay a quarterly distribution consisting of income and/orreturn of capital.

For Series F and Series T units, the Fund will seek to pay a monthly distribution, consisting of income and/or return ofcapital of a fixed amount per unit determined as of December 31 in the previous year. The monthly distribution, of SeriesF units as determined each year will depend on the expected earnings of the Fund over the following year.

Series I units of the Fund will distribute income and capital gains in December.







This example assumes that (i) you invest $1,000 in Series A, Series F, Series T, Series P or Series PF units of the Fund, as the casemay be, for the time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expenseratio and operating expenses would be the same throughout the ten year period as they were in the Fund’s last completedfinancial year. Fees and expenses applicable to Series I units are paid directly by each investor.



Series A $ 26.01 $ 83.92 $ 150.44 $ 361.38

Series F $ 14.91 $ 48.60 $ 88.06 $ 217.01

Series T $ 26.11 $ 84.23 $ 150.99 $ 362.62

Series P1

− − − −

Series PF1

− − − −


NEI NORTHWEST GROWTH AND INCOME FUND

72


Fund Type: Global Balanced

Start Date:

Series A units: May 1, 1995

Series F units: April 30, 2002






Portfolio Sub-Advisors:

Kingwest & Company, Toronto, ON

Beutel, Goodman & Company Ltd., Toronto, ON

Guardian Capital L.P., Toronto, ON



The objective of this Fund is to provide security of capital and to increase its value through capital appreciation andreinvestment of revenues by investing primarily in a mix of (i) equity securities of Canadian and foreign companies and (ii)bonds, debentures and other securities issued by governments, financial institutions and companies in Canada and in theUnited States and other foreign countries.

The Fund may gain exposure to Canadian fixed income securities and to United States and other foreign investments byinvesting in securities of mutual funds, including other Funds managed by NEI Investments.



The allocation between Portfolio Sub-Advisors is fairly stable and is managed by the Portfolio Manager.

The Portfolio Sub-Advisor for the Canadian equity portion of the Fund invests in companies that fit established investmentcriteria based on an economic value added approach. This requires businesses to generate a high return on capital andhave, in the opinion of the Portfolio Sub-Advisor, a competitive advantage, superior management, strong financialprospects and a commitment to shareholders’ interests.

The Portfolio Sub-Advisor for the global equity portion of the Fund utilizes a fundamental value process that seeks toinvest in quality, liquid companies whose management has successfully built shareholder value over time. A commoncharacteristic of these companies is their ability to generate free cash flow, which supports growth and profitability, allowsmanagement to make strategic acquisitions, buy back stock and pay generous and growing dividends.

The Portfolio Sub-Advisor for the fixed income portion of the Fund, forecasts trends in interest rates and comparativereturns among bond sectors. It then adjusts portfolio duration (the average term to maturity of bond cashflows) and themix among bond sectors and bond maturities to seek the optimal return with the minimum risk.

The Fund intends to purchase units of other mutual funds, including mutual funds managed by us to gain exposure tobonds, debentures and other securities issued by governments, financial institutions and companies in Canada and to gainexposure to foreign investments of up to 100% of the portfolio.

The Fund may hold cash or invest in short-term securities which are determined by the Portfolio Sub-Advisors to be advisableas a defensive measure if determined to be appropriate for the purposes of enhancing liquidity or preserving capital in lightof prevailing market or economic conditions. The Fund may also temporarily hold a portion of its assets in cash or fixed-


73

income securities while seeking investment opportunities or for defensive purposes during times of anticipated marketvolatility.






credit risk

currency risk


fund of fund risk

interest rate risk

liquidity risk




stock market risk

tax risk

In the last twelve-month period, the Fund has held more than 10% of its net assets in the securities of certain issuers. Themaximum percentages of the net assets of the Fund invested in the securities of such issuers during such period wereapproximately as follows:

NEI Canadian Bond Fund 12.5%

NEI Northwest Global Equity Fund 38.1%




you are seeking a combination of long term growth and some current income, through an investment diversified byasset class, style, and geography




DISTRIBUTION POLICY

For Series A units of the Fund will seek to pay a quarterly distribution consisting of income and/or return of capital.

The Series F units, Series T units, and Series I units of the Fund will seek to pay a monthly distribution, consisting of incomeand/or return of capital of a fixed amount per unit determined as of December 31 in the previous year. The monthly


74

distribution of the Series F units as determined each year will depend on the expected earnings of the Fund over thefollowing year.










Series A $ 28.00 $ 90.18 $ 161.36 $ 385.84

Series F $ 16.94 $ 55.14 $ 99.70 $ 244.55

Series T $ 28.30 $ 91.11 $ 162.99 $ 389.47


NEI NORTHWEST MACRO CANADIAN ASSET ALLOCATION FUND

75



Start Date:

Series A units: July 3, 2012


Series I units: July 3, 2012







Portfolio Sub-Advisor OtterWood Capital Management Inc., Toronto, ON



The Fund aims to provide investment returns and protection of capital through an active asset allocation process. Itinvests primarily in a mix of Canadian and foreign equity and fixed income securities including money market instruments.



The Fund’s asset allocation is actively determined based on the Portfolio Sub-Advisor’s assessment of various macro-economic factors including but not limited to financial market liquidity, sovereign solvency, credit spreads, money flowsinto the U.S. banking system and central bank behavior.


For the fixed income portion of the Fund, the Portfolio Sub-Advisor uses its macro-economic outlook to determine thesector and maturity positioning. The fixed income portion of the Fund will seek to maintain at all times, an average creditrating of A or higher, and will not invest more than 10% (at time of investment) in below investment grade issuesaccording to recognized credit rating agencies.

Sale of securities can occur once a target weighting or target price is reached, when the fundamentals of securities changesuch as management turnover, or as part of a larger asset allocation adjustment.

The Fund may invest a portion of its net assets in non-Canadian securities where such an investment is consistent with theinvestment objectives of the Fund. Although there is no specific limitation on the percentage of assets of the Fund thatmay be invested in non-Canadian securities, as of the date of this simplified prospectus we do not expect that the Fundwill invest more than 50% of its assets in non-Canadian securities.

The Fund may temporarily hold a portion of its assets in cash or fixed income securities while seeking investmentopportunities or for defensive purposes during times of anticipated market volatility.

The Fund may invest, directly or indirectly, through the use of derivatives, a portion or even all of its net assets in units ofother mutual funds, including funds managed or sponsored by us. The Fund will only invest in units of other funds wheresuch investment is compatible with the investment objectives and strategies of the Fund.


76

The Fund may also invest up to 10% of its net assets in gold, silver or permitted gold or silver certificates (or specifiedderivatives or ETFs of which the underlying interest is gold or silver).

The Fund intends to invest in certain leveraged ETFs. The ETFs are commodity pools that use financial instruments thatcorrelate to a multiple (or inverse multiple) of the performance of a specified underlying index. The Fund will only invest inETFs that provide exposure to securities that are consistent with the investment objectives and strategies of the Fund.

The Fund may also engage in short selling. A short sale by a fund involves borrowing securities from a lender which arethen sold in the open market. At a future date, the securities are repurchased by the fund and returned to the lender.While the securities are borrowed, the proceeds from the sale are deposited with the lender and the fund pays interest tothe lender. If the value of the securities declines between the time that the fund borrows the securities and the time itrepurchases and returns the securities to the lender, the fund makes a profit on the difference (less any interest the fundis required to pay the lender). The Portfolio Sub-Advisor believes that a short selling strategy will complement the Fund’scurrent primary discipline of buying securities with the expectation that they will appreciate in market value.




You will find more information on derivatives on page 6.






commodity risk

credit risk

currency risk

derivative risk



fund of fund risk

interest rate risk


short selling risk


stock market risk

tax risk


77



you are seeking a combination of long term growth and some current income, through an active asset allocationstrategy




DISTRIBUTION POLICY

For Series A units, Series F units, Series P and Series PF, the Fund will seek to pay a quarterly distribution consisting ofincome and/or return of capital.

For Series T units, the Fund will seek to pay a monthly distribution, consisting of income and/or return of capital of a fixedamount per unit determined as of December 31 in the previous year.

Series I units of the Fund will distribute income and capital gains in December.







This example assumes that (i) you invest $1,000 in Series A, Series F, Series T, Series P or Series PF units of the Fund, as thecase may be, for the time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series managementexpense ratio and operating expenses would be the same throughout the ten year period as they were in the Fund’s lastcompleted financial year. Fees and expenses applicable to Series I units are paid directly by each investor.



Series A $ 25.91 $ 83.60 $ 149.89 $ 360.14

Series F $ 15.21 $ 49.59 $ 89.81 $ 221.18

Series T $ 26.21 $ 84.55 $ 151.54 $ 363.85

Series P1

− − − −Series PF

1

− − − −


78


NEI NORTHWEST MACRO CANADIAN EQUITY FUND

79



Start Date:

Series A units: November 16, 2000






Portfolio Sub-Advisor: OtterWood Capital Management Inc., Toronto, ON



The current investment objective of the Fund is to achieve long-term capital appreciation by investing its assets, excludingthe cash and cash equivalent portion, primarily in equity securities of Canadian companies and to a lesser extent, foreigncompanies. The Fund will be able to invest in any sector and in both large and small capitalization companies.



The investment strategies of the Fund will involve the analysis of macro-economic variables and the Portfolio Sub-Advisor’s interpretation of these factors will drive both asset allocation and sector selection within the equitiescomponent of the Fund. The Fund may invest up to 50% of its net equity allocation in foreign equities and may at timeshold a significant overall cash position as a defensive measure during periods of market stress and/or based on thePortfolio Sub-Advisor’s outlook for the world economy and global capital markets.

Selection of each equity security is driven by a bottom-up investment process using a “growth at reasonable price”approach. The security selection process is focused on companies that generate high and growing levels of free cash flowand dividends. Idea generation is driven primarily by ongoing assessment and evaluation of macro-economic factors anddevelopments, which direct the Portfolio Sub-Advisor’s attention to specific sectors of focus.

Macro-economic factors are the driving force behind portfolio construction and therefore are expected to be the maindriver of performance. The variables typically analyzed are those linked to the fixed income market itself including but notlimited to financial market liquidity, sovereign solvency, credit spreads, money flows into the U.S. banking system andcentral bank behavior.

Sale of securities can occur once a target weighting or target price is reached, when the fundamentals of securities changesuch as management turnover, or as part of a larger asset allocation adjustment. The Portfolio Sub-Advisor may also usecertain trading strategies to mitigate risk. For example, with strategic positions, the Portfolio Sub-Advisor may determinethat the best protection from an expected fall in the price of a given security is through the use of an option overlaystrategy as opposed to an outright sale of the position.

The Fund may invest up to 10% of its net assets in gold, silver or permitted gold or silver certificates (or specifiedderivatives of which the underlying interest is gold or silver).

The Fund may invest a portion of its assets in certain ETFs. The ETFs are commodity pools that use financial instrumentsthat correlate to a multiple (or inverse multiple) of the performance of a specified underlying index. The Fund will onlyinvest in ETFs that provide exposure to securities that are consistent with the investment objectives and strategies of theFund.

The Fund may also engage in short selling. A short sale by a fund involves borrowing securities from a lender which arethen sold in the open market. At a future date, the securities are repurchased by the fund and returned to the lender.


80

While the securities are borrowed, the proceeds from the sale are deposited with the lender and the fund pays interest tothe lender. If the value of the securities declines between the time that the fund borrows the securities and the time itrepurchases and returns the securities to the lender, the fund makes a profit on the difference (less any interest the fundis required to pay the lender). The Portfolio Sub-Advisor believes that a short selling strategy will complement the Fund’scurrent primary discipline of buying securities with the expectation that they will appreciate in market value.








commodity risk

credit risk

currency risk

derivative risk



interest rate risk


liquidity risk


short selling risk



stock market risk

tax risk

As at June 5, 2014, NEI Select Canadian Growth Portfolio, NEI Select Canadian Balanced Portfolio and NEI Select GlobalGrowth Portfolio held approximately 26.5%, 22.1% and 14.1% of the Fund, respectively. Please see “Large TransactionRisk” on page 8 for details of the risk associated with a possible redemption of securities of the Fund by these investors.



you are seeking capital growth, through capital appreciation




81

The Fund may or may not pay out distributions to securityholders in a given year. Therefore, it may not be suitable forthose investors for whom a regular level of income is a key investment objective.


DISTRIBUTION POLICY



This distribution policy is reviewed not less than once annually and may be changed at any time, depending upon marketconditions



This example assumes that (i) you invest $1,000 in Series A units or Series F units of the Fund, as the case may be, for thetime periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratio andoperating expenses remain the same throughout the ten year period as they were in the Fund’s last completed financialyear. Fees and expenses applicable to Series I units are paid directly by each investor.



Series A $ 27.41 $ 88.30 $ 158.10 $ 378.56

Series F $ 16.33 $ 53.18 $ 96.22 $ 236.35


NEI NORTHWEST CANADIAN DIVIDEND FUND

82


Fund Type: Canadian Dividend & Income Equity

Start Date:


Series F units: February 7, 2003






Portfolio Sub-Advisor: Beutel, Goodman & Company Ltd., Toronto, ON



This Fund’s objective is to achieve a balance between high dividend income and capital growth by investing mainly in adiversified portfolio of blue-chip Canadian common stocks and, to a lesser extent, in high-yield preferred stocks andinterest bearing securities.



The Portfolio Sub-Advisor chooses primarily blue-chip common stocks. It may also invest in preferred stocks, bonds,purchase warrants and rights, royalty trusts and income trusts. The Portfolio Sub-Advisor’s selections seek to givepreference to capital growth, while providing a high, regular level of income. The Fund is managed through a fundamentalvalue process that seeks to invest in quality, liquid companies whose management has successfully built shareholder valueover time. A common characteristic of these companies is their ability to generate free cash flow, which supports growthand profitability, allows management to make strategic acquisitions, buy back stock and pay generous and growingdividends. The focus is on small-, mid- and large-capitalization Canadian corporations in a variety of industries, whilefavouring equity securities, including preferred stocks that provide a stable income.

Generally, the Fund is fully invested, but liquid assets may be used to preserve capital in case of anticipated unfavourableeconomic conditions.

The Fund may invest up to 30% of the Fund’s property at the time of investment in foreign securities.







83




credit risk

currency risk

derivative risk


interest rate risk



liquidity risk




stock market risk

tax risk

As at June 5, 2014, NEI Northwest Tactical Yield Fund held approximately 14.9% of the Fund. Please see “LargeTransaction Risk” on page 8 for details of the risk associated with a possible redemption of securities of the Fund by thisinvestor.







DISTRIBUTION POLICY

For Series A units and Series I units, the Fund will seek to pay a quarterly distribution consisting of income and/or return ofcapital.

The Series F units and Series T units will seek to pay a monthly distribution, consisting of income and/or return of capital ofa fixed amount per unit determined as of December 31 in the previous year. The monthly distribution on Series F units asdetermined each year will depend on the expected earnings of the Fund over the following year.





84







Series A $ 27.41 $ 88.30 $ 158.10 $ 378.56

Series F $ 16.33 $ 53.18 $ 96.22 $ 236.35

Series T $ 26.11 $ 84.23 $ 150.99 $ 362.62


NEI NORTHWEST CANADIAN EQUITY FUND

85



Start Date:

Series A units: December 20, 1991






Portfolio Sub-Advisors: Kingwest & Company, Toronto, ON



The objective of this Fund is to achieve long-term capital appreciation by investing primarily in equity securities ofCanadian companies. The Fund may invest in both large and small capitalization companies.



The Fund invests primarily in equity securities (including securities convertible into equity securities) of Canadiancompanies, but may invest up to 35% of the Fund’s property in similar securities of companies located outside of Canada.The Portfolio Sub-Advisor invests in companies that fit established investment criteria based on an economic value addedapproach. This requires businesses to generate a high return on capital and in the opinion of the Portfolio Sub-Advisor, acompetitive advantage, superior management, strong financial prospects and a commitment to shareholders’ interests.

The Fund may hold cash or invest in short-term securities which are determined by the Portfolio Sub-Advisor to be advisableas a defensive measure if determined to be appropriate for the purposes of enhancing liquidity or preserving capital in lightof prevailing market or economic conditions. The Fund may also temporarily hold a portion of its assets in cash or fixed-income securities while seeking investment opportunities or for defensive purposes during times of anticipated marketvolatility.



currency risk


interest rate risk

liquidity risk




stock market risk

tax risk


86



you are seeking growth, through capital appreciation



The Fund may or may not pay out distributions to securityholders in a given year. Therefore, it may be unsuitable for thoseinvestors for whom a regular level of income is a key investment objective.


DISTRIBUTION POLICY









Series A $ 27.61 $ 88.93 $ 159.19 $ 380.99

Series F $ 16.43 $ 53.51 $ 96.80 $ 237.72


NEI NORTHWEST GLOBAL EQUITY FUND

87



Start Date:

Series A units: May 1, 1995






Portfolio Sub-Advisor: Beutel, Goodman & Company Ltd., Toronto, ON



The Fund aims for long-term growth by investing primarily in foreign equity securities across all market capitalizations. TheFund is usually invested in large and medium sized well-capitalized foreign (including the United States) companies, whichare listed on principal global stock exchanges. The balance of the Fund’s assets is short-term fixed income securities.



The Portfolio Sub-Advisor uses a value approach designed to identify high quality, liquid companies trading at a significantdiscount to their “business value,” defined as the present value of sustainable free cash flow. A consistent and rigorousanalytical framework is employed that allows for direct comparison of diverse opportunities across markets and sectors.Risk is controlled primarily at the security level through a buy/sell discipline that involves the establishment of formaltargets and downside limits based on fundamental research.


The Fund may invest up to 10% of the Fund’s property in Canadian listed securities.







currency risk

derivative risk


88


interest rate risk


liquidity risk



stock market risk

tax risk

As at June 5, 2014, NEI Northwest Growth and Income Fund held approximately 63.8% of the Fund. Please see “LargeTransaction Risk” on page 8 for details of the risk associated with a possible redemption of securities of the Fund by thisinvestor.






The Fund may or may not pay out distributions to securityholders in a given year. Therefore, it may be unsuitable for thoseinvestors for whom a regular level of income is a key investment objective.


DISTRIBUTION POLICY








89



Series A $ 28.80 $ 92.67 $ 165.69 $ 395.48

Series F $ 17.55 $ 57.09 $ 103.17 $ 252.70


NEI NORTHWEST U.S. DIVIDEND FUND

90


Fund Type: US Equity

Start Date:









Portfolio Sub-Advisor: *River Road Asset Management LLC, Louisville, KY, U.S.A.

* As a Portfolio Manager, we have responsibility for the investment advice given and portfolio management services provided

to the Fund by River Road Asset Management LLC (“River Road”). In certain circumstances, it may be difficult to enforce legal

rights against River Road because it is resident outside Canada and all or substantially all of its assets are located outside

Canada.



The objective of this Fund is to provide investors with long-term capital growth. The Fund invests primarily in commonshares of large-capitalization American corporations.



The Portfolio Sub-Advisor employs a value-driven, bottom-up approach to security selection that seeks to identify stockswith a high and growing dividend yield, financial strength, and attractive business models among other key characteristics.

The Fund is primarily invested in a diversified multi-cap portfolio of income producing equity securities which typicallyhave a minimum market capitalization at the time of initial purchase and are trading below the Portfolio Sub-Advisor’sassessment of fair value. The Fund is primarily invested in U.S. dividend paying common stocks.

The Fund may also invest in a broad range of foreign stocks through the use of American Depository Receipts (ADRs),publicly traded partnerships, convertible preferred stocks, Real Estate Investment Trusts (REITs), investment companies,and royalty income trust.

The Fund may hold cash or invest in short-term securities, which are determined by the Portfolio Sub-Advisor to beadvisable as a defensive measure if determined to be appropriate for the purposes of enhancing liquidity or preservingcapital in light of prevailing market or economic conditions.

The Fund may invest up to 100% of its assets in foreign securities.

The Fund may use derivatives for foreign currency hedging.You will find more information about derivatives on page 6.



currency risk

derivative risk


91


interest rate risk

investment fund risk




stock market risk

tax risk

As at June 5, 2014, NEI Select Global Growth Portfolio and NEI Northwest Tactical Yield Corporate Class heldapproximately 11.5% and 11.0% of the Fund, respectively. Please see “Large Transaction Risk” on page 8 for details of therisk associated with a possible redemption of securities of the Fund by these investors.



you are seeking growth, through a diversified portfolio of large capitalization American corporations




DISTRIBUTION POLICY

The Fund will seek to pay a quarterly distribution consisting of income and/or return of capital.






This example assumes that (i) you invest $1,000 in Series A, Series F, Series P or Series PF units of the Fund, as the casemay be, for the time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series managementexpense ratio and operating expenses would be the same throughout the ten year period as they were in the Fund’s lastcompleted financial year. Fees and expenses applicable to Series I units are paid directly by each investor.


92



Series A $ 28.80 $ 92.67 $ 165.69 $ 395.48

Series F $ 17.55 $ 57.09 $ 103.17 $ 252.70

Series P1

− − − −

Series PF1

− − − −


NEI NORTHWEST EMERGING MARKETS FUND

93


Fund Type: Emerging Markets Equity

Start Date:


Series F units: February 26, 2003





Portfolio Sub-Advisor: *Columbia Management Investment Advisers, LLC, Boston, MA, U.S.A.

* As a Portfolio Manager, we have responsibility for the investment advice given and portfolio management services provided tothe Fund by Columbia Management Investment Advisers, LLC (“Columbia”). In certain circumstances it may be difficult toenforce legal rights against Columbia because it is resident outside Canada and all or substantially all of its assets are locatedoutside Canada.



The Fund aims to achieve long-term capital appreciation by investing its assets primarily in equity securities of emergingmarket companies. The Fund will be able to invest in any sector and in both large and small capitalization companies.



The Portfolio Sub-Advisor’s investment philosophy is based on the core belief that evaluating stocks with a combination offundamental and quantitative methods is superior to any single approach because it yields a more comprehensiveunderstanding of factors that drive performance.

The Portfolio Sub-Advisor follows a disciplined investment process that combines top-down and bottom-up fundamentalresearch with quantitative tools. The bottom-up stock selection is considered to be as critical as the top-down macro analysis,given the extensive number of investable stocks in the Emerging Markets universe. The investment process seeks to identify“Stewards of Capital” companies that know how to sustain and accelerate profitable growth, and hence are believed to be bestpositioned in realizing the potential created by the under-penetration of many emerging-market industries.








94



currency risk

derivative risk



interest rate risk




stock market risk

tax risk

As at June 5, 2014, NEI Select Canadian Growth Portfolio, NEI Select Canadian Balanced Portfolio, NEI Select GlobalGrowth Portfolio and NEI Select Global Maximum Growth Portfolio held approximately 21.6%, 19.6%, 19.0% and 17.1% ofthe Fund, respectively. Please see “Large Transaction Risk” on page 8 for details of the risk associated with a possibleredemption of securities of the Fund by these investors.



you are seeking long term capital growth, through a diversified portfolio of emerging markets equities


you are prepared for high risk



DISTRIBUTION POLICY






This example assumes that (i) you invest $1,000 in Series A units or Series F units of the Fund, as the case may be, for the timeperiods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratio and operating


95

expenses would be the same throughout the ten year period as they were in the Fund’s last completed financial year. Fees andexpenses applicable to Series I units are paid directly by each investor.



Series A $ 31.18 $ 100.09 $ 178.56 $ 423.91

Series F $ 20.59 $ 66.77 $ 120.32 $ 292.65


NEI NORTHWEST SPECIALTY EQUITY FUND

96


Fund Type: Canadian Small/Mid Cap Equity

Start Date:

Series A units: March 27, 1986






Portfolio Sub-Advisor: Montrusco Bolton Investments Inc., Montreal, QC



The Fund aims to achieve capital appreciation over the longer term by seeking to invest primarily in the equity securitiesof faster growing, small-cap Canadian companies.



The Portfolio Sub-Advisor uses a bottom up ownership investing approach (a detailed analysis of the company) to achievelong-term growth of capital through the investment in Canadian corporations or Canadian listed corporations.

The Portfolio Sub-Advisor generally identifies small or mid-capitalization companies (using the above ownership investingapproach) with distinct competitive advantages, strong balance sheets, financially committed management teams, strongsales and earnings growth, and good return on equity, and then tries to acquire these companies at reasonable valuations.The Portfolio Sub-Advisor typically will maintain the majority of the Fund in companies with market capitalizations of lessthan 0.15% of the S&P/TSX Composite Index.


The Fund may invest up to 30% of the Fund’s property in foreign securities.



currency risk


interest rate risk

liquidity risk





97

stock market risk

tax risk





you are prepared for medium to high risk



DISTRIBUTION POLICY









Series A $ 27.21 $ 87.68 $ 157.01 $ 376.12

Series F $ 19.28 $ 62.59 $ 112.92 $ 275.50


NEI ETHICAL SELECT INCOME PORTFOLIO

98


Fund Type: Strategic Asset Allocation

Start Date:


Series B units: July 3, 2012







The Portfolio aims to generate a high level of income while providing some potential for capital growth by investing mostlyin a mix of income oriented mutual funds and to a lesser extent, equity mutual funds. The Portfolio invests in a variety ofother mutual funds managed by different portfolio managers/sub-advisors.

The Portfolio will invest in certain Ethical Funds and may also invest in other mutual funds managed by us, and fundsmanaged by other mutual fund companies.

The Portfolio follows a socially responsible approach to investing, as described in Part A of this prospectus.

Securityholder approval (by a majority of votes cast at a meeting of securityholders), is required prior to a fundamentalchange of investment objectives.


The Portfolio Manager uses strategic asset allocation as the principal investment strategy.

The Portfolio Manager selects the underlying funds based on of their expected return, volatility and correlation whileaccounting for investment styles and other qualitative factors.

The Portfolio Manager may, in its sole discretion, modify the asset mix, change the percentage holdings of any underlyingfund, remove any underlying fund or add additional underlying funds.

The Portfolio may temporarily hold a portion of its assets in cash or fixed-income securities while seeking investmentopportunities or for defensive purposes during times of anticipated market volatility.

To achieve its objective, the Portfolio invests in the following asset classes by purchasing units of the underlying funds. Thecurrent approximate target percentages of the asset class allocation for this Portfolio are set out below:

Fixed Income and Money Market 60-90%

Equity 10-40%

The percentages listed above are approximate due to continuous market fluctuations and administrative efficiencies.As a result, the actual percentages invested in the asset classes on any given day may not exactly conform to thepercentages set forth above. Rebalancing will be done at the discretion of the Portfolio Manager.

The Portfolio must invest at least 51% of its total assets at the time of investment in underlying funds which invest in acombination of equity securities domiciled in Canada and Canadian dollar denominated fixed income securities.


Investing in a mix of different mutual funds increases diversification and reduces volatility, but it also means the Portfoliois exposed to fund of fund risk as described on page 7 including that it will have the same risks as the underlying funds.


99

The Portfolio will be primarily exposed to the following risks which are described beginning on page 5 due to itsinvestments in the underlying funds:


capital erosion risk

credit risk

currency risk

derivative risk


interest rate risk

liquidity risk




stock market risk

tax risk

In the last twelve-month period, the Portfolio has held more than 10% of its net assets in the securities of certain mutualfunds. The maximum percentages of the net assets of the Portfolio invested in the securities of such other mutual fundsduring such period were approximately as follows:

NEI Ethical Global Dividend Fund 13.5%

NEI Global Total Return Bond Fund 18.1%

NEI Income Fund 34.0%




This Portfolio is suitable if:

you are seeking a combination of current income and some long term growth, through an investment diversified byasset class, style, and geography




DISTRIBUTION POLICY

The Portfolio will seek to pay a monthly distribution on Series A, Series B and Series F units, consisting of income and/orreturn of capital of a fixed amount per unit determined as of December 31 in the previous year. The monthly distributionas determined each year will depend on the expected earnings of the Portfolio over the following year.

In addition, the Portfolio will, prior to the end of each year, distribute any excess income and capital gains to itssecurityholders.


100

Distributions in respect of a particular series which consist of a return of capital may be in excess of the returns of thePortfolio attributable to that series and may erode the Portfolio capital attributable to that series.

The Manager reserves the right to make additional distributions in any year if determined to be appropriate. In each case,distributions will be reinvested by purchasing additional units of the same series of the Portfolio unless you ask us at least5 business days in advance to be paid in cash rather than receive units of the Portfolio.


FUND EXPENSES DIRECTLY BORNE BY INVESTORS

Mutual funds pay for some fees and expenses out of fund assets. That means investors in a mutual fund indirectly pay forthese fees and expenses through lower returns. The table below is intended to help you compare the cumulative cost ofinvesting in this Portfolio with the cost of investing in other mutual funds.

This example assumes that (i) you invest $1,000 in Series A, Series B or Series F units of the Portfolio, as the case may be,for the time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratioand operating expenses would be the same throughout the ten year period as they were in the Portfolio’s last completedfinancial year.



Series A $ 19.07 $ 61.95 $ 111.78 $ 272.84

Series B $ 18.77 $ 60.98 $ 110.07 $ 268.83

Series F1

− − − −

Please see “Fees and Expenses” for more information about the costs of investing in the Portfolio.

1No information is available for this series as it is new.

NEI ETHICAL SELECT CONSERVATIVE PORTFOLIO

101



Start Date:Series A units: July 14, 2005







The Portfolio aims to generate a moderate level of income while providing some potential for capital growth by investingin a mix of income oriented mutual funds and equity mutual funds. The Portfolio invests in a variety of other mutual fundsmanaged by different portfolio managers/sub-advisors.

The Portfolio will invest in certain Ethical Funds and may also invest in other mutual funds managed by us, and fundsmanaged by other mutual fund companies.





The Portfolio Manager selects the underlying funds in function of their expected return, volatility and correlation whileaccounting for investment styles and other qualitative factors.

The Portfolio Manager may, in its sole discretion, modify the asset mix, change the percentage holdings of any underlyingfund, remove any underlying fund or add additional underlying funds.


To achieve its objective, the Portfolio invests in the following asset classes by purchasing units of the underlying funds. Thecurrent approximate target percentages of the asset class allocation for this Portfolio are set out below: below:


Equity 10-40%







102



credit risk

currency risk

derivative risk


interest rate risk

liquidity risk




stock market risk

tax risk

In the last twelve-month period, the Portfolio has held more than 10% of its net assets in the securities of certain mutualfunds. The maximum percentages of the net assets of the Portfolio invested in the securities of such other mutual fundsduring such period were approximately as follows:

NEI Ethical Balanced Fund 10.3%

NEI Ethical Canadian Equity Fund 13.0%











DISTRIBUTION POLICY

The Portfolio will seek to pay a monthly distribution on Series A and Series F units, consisting of income and/or return ofcapital of a fixed amount per unit determined as of December 31 in the previous year. The monthly distribution asdetermined each year will depend on the expected earnings of the Portfolio over the following year.



103




FUND EXPENSES DIRECTLY BORNE BY INVESTORS


This example assumes that (i) you invest $1,000 in Series A units or Series F units of the Portfolio, as the case may be, forthe time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratioand operating expenses would be the same throughout the ten year period as they were in the Portfolio’s last completedfinancial year.



Series A $ 22.91 $ 74.12 $ 133.27 $ 322.41

Series F $ 12.25 $ 40.03 $ 72.71 $ 180.31


NEI ETHICAL SELECT BALANCED PORTFOLIO

104



Start Date:Series A units: December 1, 2009

Series F units: December 1, 2009






The Portfolio’s investment objective is to provide long-term capital growth and preservation of capital through exposureto foreign and Canadian equity securities and exposure to foreign and Canadian fixed income securities and money marketsecurities.

To achieve its objective, the Portfolio will invest in underlying mutual funds, which may be managed by NEI Investments.






The Portfolio Manager may, in its sole discretion, modify the asset mix, change percentage holdings of any underlyingfund, remove any underlying fund or add additional underlying funds.




Equity 40-60%


The Portfolio may invest up to 100% of its property in foreign securities.






105


credit risk

currency risk

derivative risk


interest rate risk

liquidity risk




stock market risk

tax risk

In the last twelve-month period, the Portfolio has held more than 10% of its net assets in the securities of certain othermutual funds. The maximum percentages of the net assets of the Portfolio invested in the securities of such other mutualfunds during such period were approximately as follows:


NEI Ethical American Multi-Strategy Fund 12.2%








you are seeking a combination of current income and long term growth, through an investment diversified by assetclass, style, and geography




DISTRIBUTION POLICY




106









Series A $ 25.71 $ 82.98 $ 148.79 $ 357.67

Series F $ 14.29 $ 46.63 $ 84.53 $ 208.63


NEI ETHICAL SELECT GROWTH PORTFOLIO

107



Start Date:Series A units: December 1, 2009

Series F units: December 1, 2009






The Portfolio’s investment objective is to provide long-term capital growth, and to a lesser extent preservation of capital,through exposure to foreign and Canadian equity securities and foreign and Canadian fixed income securities and moneymarket securities.

To achieve its objective, the Portfolio will invest in underlying mutual funds, which may be managed by NEI Investments.










Equity 60-90%








108


credit risk

currency risk

derivative risk


interest rate risk

liquidity risk




stock market risk

tax risk


NEI Ethical International Equity Fund 10.1%




NEI Ethical Global Equity Fund 12.2%

NEI Ethical Global Dividend Fund 12.4%

NEI Ethical American Multi-Strategy Fund 15.2%




The Portfolio is suitable if:





DISTRIBUTION POLICY




109









Series A $ 27.91 $ 89.87 $ 160.82 $ 384.63

Series F $ 16.33 $ 53.18 $ 96.22 $ 236.35


NEI SELECT CONSERVATIVE PORTFOLIO

110



Start Date:

Series A units: July 2, 2003








The Portfolio aims to generate a moderate level of income while providing some potential for capital growth by investingin a mix of income oriented mutual funds and equity mutual funds.

The Portfolio invests in a variety of other mutual funds managed by different portfolio managers/sub-advisors.









Equity 10-40%








111


credit risk

currency risk

derivative risk


interest rate risk


liquidity risk




stock market risk

tax risk


NEI Northwest Specialty Global High Yield Bond Fund 15%









The Manager identifies the investment risk level of the Portfolio to determine investor suitability. The Manager’sinvestment risk rating methodology is described under “How does the Manager Determine Fund Risk?” on page 32. Thisrisk level is reviewed annually and the methodology is available at no cost by contacting us at the address shown on theback cover of this document.

DISTRIBUTION POLICY

The Portfolio will seek to pay a monthly distribution on Series A, Series F and Series B units, consisting of income and/orreturn of capital of a fixed amount per unit determined as of December 31 in the previous year. The monthly distributionas determined each year will depend on the expected earnings of the Portfolio over the following year.





112




This example assumes that (i) you invest $1,000 in Series A, Series F or Series B units of the Portfolio, as the case may be,for the time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratioand operating expenses would be the same throughout the ten year period as they were in the Portfolio’s last completedfinancial year.



Series A $ 23.01 $ 74.44 $ 133.83 $ 323.69

Series F $ 12.45 $ 40.70 $ 73.90 $ 183.17

Series B $ 22.60 $ 73.17 $ 131.59 $ 318.57


NEI SELECT CANADIAN BALANCED PORTFOLIO

113



Start Date:









The Portfolio aims to provide reasonable current income and growth of your investment over the long term by investing ina mix of income oriented mutual funds and equity mutual funds.










Equity 40-60%








114


credit risk

currency risk

derivative risk


interest rate risk


liquidity risk




stock market risk

tax risk



NEI Northwest Macro Canadian Equity Fund 12.3%

NEI Income Fund 20.1 %









DISTRIBUTION POLICY





115








Series A $ 25.51 $ 82.35 $ 147.69 $ 355.18

Series F $ 15.31 $ 49.92 $ 90.40 $ 222.57

Series B $ 25.21 $ 81.40 $ 146.04 $ 351.45


NEI SELECT CANADIAN GROWTH PORTFOLIO

116



Start Date:









The Portfolio aims to increase the value of your investment over the long term by investing in equity mutual funds andsome income oriented mutual funds.










Equity 60-90%








117


credit risk

currency risk

derivative risk


interest rate risk

liquidity risk




stock market risk

tax risk





NEI Northwest Canadian Equity Fund 19.3%









DISTRIBUTION POLICY





118








Series A $ 27.51 $ 88.62 $ 158.64 $ 379.78

Series F $ 17.35 $ 56.44 $ 102.01 $ 249.99

Series B $ 27.21 $ 87.68 $ 157.01 $ 376.12


NEI SELECT GLOBAL BALANCED PORTFOLIO

119



Start Date:Series A units: October 26, 2007







The Portfolio’s investment objective is to provide long-term capital growth and preservation of capital through exposureto foreign and Canadian equity securities and exposure to fixed income investments.

To achieve its objective, the Portfolio will invest in underlying mutual funds, which may be managed by NEI Investments,which hold equities and fixed income securities.









Equity 40-60%





The Portfolio will be primarily exposed to the following risks which are described beginning of page 5 due to itsinvestments in the underlying funds:



credit risk


120

currency risk

derivative risk


interest rate risk

liquidity risk




stock market risk

tax risk














DISTRIBUTION POLICY






121







Series A $ 25.81 $ 83.29 $ 149.34 $ 358.91

Series F $ 15.52 $ 50.57 $ 91.56 $ 225.34


NEI SELECT GLOBAL GROWTH PORTFOLIO

122



Start Date:Series A units: July 4, 2005

Series F units: January 25, 2006






The Portfolio’s investment objective is to provide income with some long-term capital growth primarily through exposureto Canadian and foreign equity securities and, to a lesser extent, exposure to fixed income investments.

To achieve its objective, the Portfolio will invest in underlying mutual funds, which may be managed by NEI Investments,which hold equities and fixed income securities.









Equity 60-90%









123

credit risk

currency risk

derivative risk



interest rate risk

Investment risk

liquidity risk




stock market risk

tax risk








Higher-yielding, higher risk income securities, like the securities in which certain underlying funds of the Portfolio mayinvest, are subject to greater risk of loss of principal and income than higher-rated fixed income securities and areconsidered to be less certain with respect to the issuer’s capacity to pay interest and repay principal.


Lower-rated and unrated corporate bonds and notes are traded principally by dealers in the over-the-counter market. Themarket for these securities may be less active and less liquid than for higher rated securities. Under adverse market oreconomic conditions, the secondary market for these bonds and notes could contract further, causing an underlying fundand therefore the Portfolio difficulties in valuing and selling its securities.







124


DISTRIBUTION POLICY











Series A $ 28.40 $ 91.42 $ 163.53 $ 390.67

Series F $ 17.76 $ 57.74 $ 104.32 $ 255.40


NEI SELECT GLOBAL MAXIMUM GROWTH PORTFOLIO

125



Start Date:





Eligibility for Registered Plans Qualified Investment




The Portfolio aims to increase the value of your investment over the long term by investing primarily in equity mutual funds.










Equity 80-100%








credit risk


126

commodity risk

concentration risk

currency risk

derivative risk



interest rate risk


liquidity risk




stock market risk

tax risk



NEI Northwest Emerging Markets Fund 10.2%








you are seeking long term growth, through an investment diversified by asset class, style, and geography




DISTRIBUTION POLICY




127






This example assumes that (i) you invest $1,000 in Series A, Series F or Series B units of the Portfolio, as the case may be,for the time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratioand operating expenses would be the same throughout the ten year period as they were in the Portfolio’s last completedfinancial year.



Series A $ 28.90 $ 92.98 $ 166.23 $ 396.68

Series F $ 18.67 $ 60.65 $ 109.49 $ 267.50

Series B $ 28.60 $ 92.05 $ 164.61 $ 393.08


NEI NORTHWEST SHORT TERM CORPORATE CLASS

128


Fund Type: Canadian Money Market

Start Date: Series A shares: October 26, 2007

Securities Offered: Mutual Fund Shares



Portfolio Sub-Advisor of Underlying Fund: Desjardins Global Asset Management Inc., Montréal, QC



The objective of the Fund is to conserve capital while maintaining liquidity and achieving regular income. For that purpose,the Fund’s assets are primarily invested in short-term money market instruments such as commercial paper and bankers’acceptances issued and guaranteed by major Canadian corporations and all financial institutions, including Canadianchartered banks, trust companies and savings and credit unions. The weighted duration average maturity of the Fund’sportfolio does not exceed 90 days.

Securityholder approval (by a majority of votes cast at a meeting of shareholders) is required prior to a fundamentalchange of investment objectives.


The Fund achieves its objective by investing substantially all of its assets in units of NEI Money Market Fund (the“Underlying Fund”).

The Portfolio Sub-Advisor of the Underlying Fund invests primarily in money market instruments that it believes offergood relative value. The Underlying Fund’s Portfolio Sub-Advisor invests in a number of different issuers to diversify creditrisk, adjusts the Fund’s term to maturity in anticipation of yield curve shifts and adjusts the distribution of securities acrossthe investment horizon in anticipation of changes in the shape of the yield curve.

The Underlying Fund may also invest in treasury bills issued by the Government of Canada or a province of Canada, short-term debt securities, bankers’ acceptances and other credit instruments issued by public administrations, or in guaranteedfunds of Canadian financial institutions. The Underlying Fund may invest up to 30% of the cost of all of the Fund’s propertyin foreign securities, provided that not less than 95% of the Fund’s property be denominated in Canadian currency.


The Underlying Fund’s investments are in fixed income securities. The Underlying Fund’s investments in Canadiangovernment issuers are generally considered to be low risk. Although we intend to maintain a constant price for the unitsof the Underlying Fund, there is no guarantee that the price will not go up or down. As a result, the Fund will be subject tothe following risks, which are described beginning on page 5:

credit risk


fund of fund risk

interest rate risk


multiple class risk


129

As of May 31, 2014, the Manager owned 41.1% of the Fund.



you are seeking preservation of capital

you are investing for the short term



DISTRIBUTION POLICY

Distributions or dividends will be made at the discretion of the Corporation’s Board of Directors. If the Corporation hasearnings to distribute, it will normally pay any ordinary taxable dividends in September and any capital gains dividends inNovember of each year. The Manager reserves the right to make additional distributions in any year if determined to beappropriate. In each case, dividends will be reinvested by purchasing additional shares of the Fund unless you ask us inadvance to be paid in cash rather than receive shares of the Fund.




This example assumes that (i) you invest $1,000 in Series A shares of the Fund for the time periods indicated, (ii) yourinvestment has an annual 5% return, and (iii) the series management expense ratio and operating expenses would be thesame throughout the ten year period as they were in the Fund’s last completed financial year.



Series A $ 9.88 $ 32.38 $ 58.93 $ 146.96


NEI NORTHWEST TACTICAL YIELD CORPORATE CLASS

130



Start Date:

Series A shares: November 16, 2011

Series F shares: November 16, 2011

Series T shares: November 16, 2011




Portfolio Sub-Advisor of the Reference Fund /

Underlying Fund:

*Aviva Investors Americas LLC, Chicago, IL, U.S.A.

River Road Asset Management LLC, Louisville, KY, U.S.A. (US Equity portion)

Effective April 12, 2013 the Fund was closed to new subscriptions. Only subscriptions made by pre-authorized plans and automaticallyreinvested distributions will be accepted. We may re-open the Fund to new subscriptions in the future.

* As a Portfolio Manager, we have responsibility for the investment advice given and portfolio management services provided tothe Underlying Fund by Aviva Investors Americas LLC (“Aviva”). In certain circumstances, it may be difficult to enforce legalrights against Aviva because it is a resident outside Canada and all or substantially all of its assets are located outside Canada.Aviva has hired River Road Asset Management LLC to provide sub-advisory services to Aviva in respect of the Underlying Fund.



Investment Objectives (prior to September 2, 2014)

The Fund aims to provide a return that is similar to the return of a tactical yield fund (the “reference fund”) managed bythe Manager (less transaction and hedging costs). The reference fund aims to generate a high level of income whileproviding some potential for capital growth primarily through exposure to a portfolio of fixed income and high yieldingequity securities. The reference fund uses a tactical approach to asset allocation based on the attractiveness of the assetclass and potential return.

The Fund invests primarily in Canadian equity securities and hedges its equity risks by entering into forward contracts orother permitted derivatives that provide the Fund with a return based on the performance of the reference fund.

Where, in the opinion of the Portfolio Manager, it is advantageous to investors, the Fund may also invest directly insecurities similar to the types held by the reference fund.

Investment Objectives (effective on or about September 2, 2014)

The Fund aims to provide a return that is similar to the return of NEI Northwest Tactical Yield Fund (the “UnderlyingFund”), which is a tactical yield fund managed by the Manager, by investing substantially all of the Fund’s assets in theUnderlying Fund. The Underlying Fund aims to generate a high level of income while providing some potential for capitalgrowth primarily through exposure to a portfolio of fixed income and high yielding equity securities. The Underlying Funduses a tactical approach to asset allocation based on the attractiveness of the asset class and potential return. TheUnderlying Fund may invest in securities of other mutual funds.



Investment Strategies (prior to September 2, 2014)

In order to achieve the Fund’s investment objectives, the Fund invests directly in securities similar to those of thereference fund.


131

The reference fund invests primarily in debt and income-oriented equity securities with no restrictions on marketcapitalization, industry sector or geographic mix. In normal market conditions potential investments in the reference fundmay include: Government debt, investment grade corporate debt, high yield debt, convertible debt, bank loans, dividendpaying common shares, preferred shares, REITs, Income Trusts, other mutual funds, credit default swaps, ETFs and closedend funds.

The reference fund may use derivatives like options, futures and forward contracts in two ways:

As a substitute for investing directly in a market. Using derivatives can be less expensive and more flexible thaninvesting in certain markets or holding some assets directly.

To hedge against losses from movements in stock markets, currency exchange rates or interest rates.


Investment Strategies (effective on or about September 2, 2014)

The Fund achieves its objectives by investing substantially all of its assets in units of NEI Northwest Tactical Yield Fund (the“Underlying Fund”).

The Underlying Fund invests primarily in debt and income-oriented equity securities with no restrictions on marketcapitalization, industry sector or geographic mix. The allocations will be decided on a tactical basis by the Portfolio Sub-Advisor based on the attractiveness of the asset class and potential return. Considerations may include, but are not limitedto, economic and market conditions, cash yields, total return characteristics and risk profiles.

The Portfolio Sub-Advisor uses an investment strategy that seeks to create higher returns with less volatility, by employinga bottom-up approach to selecting securities that are priced at a discount to their assessed value.

The Underlying Fund generally sells an investment if the target return is attained or the Portfolio Sub-Advisor believes thatthe original investment thesis for investment in the security is no longer intact. Specifically, if the issuer displaysdeteriorating cash flows, an ineffective management team, or an unattractive relative valuation the Portfolio Sub-Advisorwill look to sell the security.

In normal market conditions potential investments may include: Government debt, investment grade corporate debt, highyield debt, convertible debt, bank loans, dividend paying common shares, preferred shares, REITs, Income Trusts, othermutual funds, credit default swaps, ETFs and closed end funds.

The Underlying Fund may purchase units of other mutual funds, including mutual funds managed by us, to gain exposureto other securities and income producing vehicles of up to 100% of the portfolio.

The Underlying Fund may invest up to 100% of its property in foreign securities.

The Underlying Fund may use derivatives (foreign currency swaps) for foreign currency hedging. The Underlying Fund mayalso use derivatives (credit default swaps) for non-hedging purposes, limited to no more than 5% of the portfolio.

The Underlying Fund may use derivative instruments, such as options, futures, forward contracts and/or swaps, for bothhedging and non-hedging strategies, in a manner which is consistent with the investment objectives of the UnderlyingFund and as permitted by the Canadian Securities Administrators, including to:

hedge against losses from changes in the prices of the Underlying Fund’s investments and from exposure to foreigncurrencies; and




The Fund will be subject to the following risks, which are described beginning on page 5:


capital erosion risk (Series T shares only)

credit risk

currency risk


132

derivative risk



fund of fund risk

interest rate risk


liquidity risk

multiple class risk



stock market risk



IAMGOLD Corporation 11.0%


NEI Northwest Specialty Global High Yield Bond Fund34.8%

NEI Northwest U.S. Dividend Fund 45.6%




you are taxable and seeking an active asset allocation strategy

you are seeking monthly income (Series T shares only)




The Fund may be appropriate if you are seeking a balance of capital gains and income and you are comfortable with therisks related to equity and fixed income investments.

DISTRIBUTION POLICY

Distributions or dividends will be made at the discretion of the Corporation’s Board of Directors. For Series A and Series Fshares, if the Corporation has earnings to distribute, it will normally pay any ordinary taxable dividends in September andany capital gains dividends in November of each year. The Manager reserves the right to make additional distributions inany year if determined to be appropriate. In each case, dividends will be reinvested by purchasing additional shares of theFund unless you ask us in advance to be paid in cash rather than receive shares of the Fund.


133

For Series T shares, the Fund will seek to pay a monthly distribution, consisting of a return of capital of a fixed amount pershare determined as of December 31 in the previous year. These monthly distributions will be paid in cash. The Managerreserves the right to make additional distributions in any year if determined to be appropriate.





This example assumes that (i) you invest $1,000 in Series A, Series F or Series T shares of the Fund, as the case may be, forthe time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratioand operating expenses would be the same throughout the ten year period as they were in the Fund’s last completedfinancial year.



Series A $ 26.21 $ 84.55 $ 151.54 $ 363.85

Series F $ 14.91 $ 48.60 $ 88.06 $ 217.01

Series T $ 26.01 $ 83.92 $ 150.44 $ 361.38


NEI NORTHWEST GROWTH AND INCOME CORPORATE CLASS

134


Fund Type: Global Balanced

Start Date:

Series A shares: October 26, 2007






Portfolio Sub-Advisors of Underlying Funds:

Kingwest & Company, Toronto, ON

Beutel, Goodman & Company Ltd., Toronto, ON

Guardian Capital L.P., Toronto, ON



The Fund’s investment objective is to obtain a comparable return to that of NEI Northwest Growth and Income Fund (the“Underlying Fund”).

The objective of the Underlying Fund is to provide security of capital and to increase its value through capital appreciationand reinvestment of revenues by investing primarily in a mix of (i) equity securities of Canadian and foreign companiesand (ii) bonds, debentures and other securities issued by governments, financial institutions and companies in Canada andin the United States and other foreign countries.

The Underlying Fund may gain exposure to Canadian fixed income securities and to United States and other foreigninvestments by investing in securities of mutual funds, including other Funds managed by us.

The Fund is seeking regulatory approval to achieve its objective by investing substantially all of its assets in units of theUnderlying Fund.



To achieve the Fund’s investment objective, the Portfolio Manager invests substantially all of the Fund’s assets in units ofthe Underlying Fund, subject to regulatory approval.

The Portfolio Manager of the Underlying Fund uses strategic asset allocation as the principal investment strategy.

The underlying fund that provides Canadian equity exposure invests in companies that fit established investment criteriabased on an economic value added approach. This requires businesses to generate a high return on capital and have, inthe opinion of the Portfolio Sub-Advisor, a competitive advantage, superior management, strong financial prospects and acommitment to shareholders’ interests. This underlying fund may also write covered calls to enhance income.

The underlying fund that provides global equity exposure utilizes a fundamental value process that seeks to invest inquality, liquid companies whose management has successfully built shareholder value over time. A common characteristicof these companies is their ability to generate free cash flow, which supports growth and profitability, allows managementto make strategic acquisitions, buy back stock and pay generous and growing dividends.

The Portfolio Sub-Advisor of the underlying fund that provides fixed income exposure forecasts trends in interest ratesand comparative returns among bond sectors. It then adjusts portfolio duration (the average term to maturity of bondcash flows) and the mix among bond sectors and bond maturities to seek the optimal return with the minimum risk.


135

In selecting the underlying funds, the Portfolio Manager of the Underlying Fund considers such factors as returns,consistent relative performance, risk-adjusted performance, portfolio construction, management style and organizationalchanges.


The Fund and the underlying funds may hold cash or invest in short-term securities which are determined by the PortfolioManager to be advisable as a defensive measure if determined to be appropriate for the purposes of enhancing liquidityor preserving capital in light of prevailing market or economic conditions.





commodity risk

credit risk

currency risk

derivative risk


fund of fund risk

interest rate risk

liquidity risk

multiple class risk




stock market risk

tax risk








you are taxable




136



The Manager identifies the investment risk level of the Fund to determine investor suitability. The Manager’s investmentrisk rating methodology is described under “How Does the Manager Determine Fund Risk?” on page 32. This risk level isreviewed annually and the methodology is available at no cost by contacting us at the address shown on the back cover ofthis document.

DISTRIBUTION POLICY










Series A $ 28.30 $ 91.11 $ 162.99 $ 389.47

Series F $ 15.82 $ 51.55 $ 93.31 $ 229.48

Series T $ 27.11 $ 87.37 $ 156.46 $ 374.90


NEI NORTHWEST MACRO CANADIAN ASSET ALLOCATION CORPORATE CLASS

137



Start Date:







Portfolio Sub-Advisor of the Underlying Fund: Otterwood Capital Management Inc., Toronto, ON



The Fund aims to provide investment returns and protection of capital through an active asset allocation process. Itinvests primarily in a mix of Canadian and foreign equity and fixed income securities including money market instruments.



The Fund achieves its objective by investing substantially all of its assets in units of NEI Northwest Macro Canadian AssetAllocation Fund (the “Underlying Fund”).

The Underlying Fund’s asset allocation is actively determined based on the Portfolio Sub-Advisor’s assessment of variousmacro-economic factors including but not limited to financial market liquidity, sovereign solvency, credit spreads, moneyflows into the U.S. banking system and central bank behavior.


For the fixed income portion of the Underlying Fund, the Portfolio Sub-Advisor uses its macro-economic outlook todetermine the sector and maturity positioning. The fixed income portion of the Underlying Fund will seek to maintain atall times, an average credit rating of A or higher, and will not invest more than 10% (at the time of investment) in belowinvestment grade issues according to recognized credit rating agencies.

Sale of securities can occur once a target weighting or target price is reached, when the fundamentals of securities changesuch as management turnover, or as part of a larger asset allocation adjustment.

The Underlying Fund may invest a portion of its net assets in non-Canadian securities where such an investment isconsistent with the investment objectives of the Underlying Fund. Although there is no specific limitation on thepercentage of assets of the Underlying Fund that may be invested in non-Canadian securities, as of the date of thissimplified prospectus, we do not expect that the Underlying Fund will invest more than 50% of its assets in non-Canadiansecurities.

The Underlying Fund may temporarily hold a portion of its assets in cash or fixed income securities while seekinginvestment opportunities or for defensive purposes during times of anticipated market volatility.

The Underlying Fund may invest, directly or indirectly, through the use of derivatives, a portion or even all of its net assetsin securities of other mutual funds, including funds managed or sponsored by the Manager. The Underlying Fund will onlyinvest in securities of other funds where such investment is compatible with the investment objectives and strategies ofthe Underlying Fund.


138

The Underlying Fund may also invest up to 10% of its net assets in gold, silver or permitted gold or silver certificates (orspecified derivatives or ETFs of which the underlying interest is gold or silver

The Underlying Fund intends to invest in certain leveraged ETFs. The ETFs are commodity pools that use financialinstruments that correlate to a multiple (or inverse multiple) of the performance of a specified underlying index. TheUnderlying Fund will only invest in ETFs that provide exposure to securities that are consistent with the investmentobjectives and strategies of the Underlying Fund.

The Underlying Fund may also engage in short selling. A short sale by a fund involves borrowing securities from a lenderwhich are then sold in the open market. At a future date, the securities are repurchased by the fund and returned to thelender. While the securities are borrowed, the proceeds from the sale are deposited with the lender and the fund paysinterest to the lender. If the value of the securities declines between the time that the fund borrows the securities and thetime it repurchases and returns the securities to the lender, the fund makes a profit on the difference (less any interestthe fund is required to pay the lender). The Portfolio Sub-Advisor believes that a short selling strategy will complement theUnderlying Fund’s current primary discipline of buying securities with the expectation that they will appreciate in marketvalue.








capital erosion risk (Series T only)

commodity risk

credit risk

currency risk

derivative risk



fund of fund risk

interest rate risk

multiple class risk


short selling risk


stock market risk

tax risk


139



you are taxable

you are seeking a combination of long term growth and some current income, through an active asset allocationstrategy





DISTRIBUTION POLICY










Series A $ 24.81 $ 80.14 $ 143.83 $ 346.45

Series F $ 14.19 $ 46.31 $ 83.95 $ 207.23

Series T $ 24.81 $ 80.14 $ 143.83 $ 346.45


NEI NORTHWEST MACRO CANADIAN EQUITY CORPORATE CLASS

140



Start Date:Series A shares: October 26, 2007





Portfolio Sub-Advisor of Underlying Fund: Otterwood Capital Management Inc., Toronto, ON



The investment objective of the Fund is to achieve long-term capital appreciation by investing its assets, excluding thecash and cash equivalent portion, primarily in equity securities of Canadian companies and to a lesser extent, foreigncompanies. The Fund will be able to invest in any sector and in both large and small capitalization companies.



The Fund achieves its objective by investing substantially all of its assets in units of NEI Northwest Macro Canadian EquityFund (the “Underlying Fund”).

The investment strategies of the Underlying Fund will involve the analysis of macro-economic variables and the PortfolioSub-Advisor of the Underlying Fund’s interpretation of these factors will drive both asset allocation and sector selectionwithin the equities component of the Underlying Fund. The Underlying Fund may invest up to 50% of its net equityallocation in foreign equities and may at times hold a significant overall cash position as a defensive measure duringperiods of market stress and/or based on the outlook of the Portfolio Sub-Advisor of the Underlying Fund for the worldeconomy and global capital markets.

Selection of each equity security for the Underlying Fund is driven by a bottom-up investment process using a “growth atreasonable price” approach. The security selection process is focused on companies that generate high and growing levelsof free cash flow and dividends. Idea generation is driven primarily by ongoing assessment and evaluation of macro-economic factors and developments, which direct the Portfolio Sub-Advisor’s attention to specific sectors of focus.

Macro-economic factors are the driving force behind portfolio construction for the Underlying Fund and therefore areexpected to be the main driver of performance. The variables typically analyzed are those linked to the fixed incomemarket itself including but not limited to financial market liquidity, sovereign solvency, credit spreads, money flows intothe U.S. banking system and central bank behavior.

Sale of securities in the Underlying Fund can occur once a target weighting or target price is reached, when thefundamentals of securities change such as management turnover, or as part of a larger asset allocation adjustment. ThePortfolio Sub-Advisor of the Underlying Fund may also use certain trading strategies to mitigate risk. For example, withstrategic positions, the Portfolio Sub-Advisor of the Underlying Fund may determine that the best protection from anexpected fall in the price of a given security is through the use of an option overlay strategy as opposed to an outrightsale of the position.

The Underlying Fund may invest up to 10% of its net assets in gold, silver or permitted gold or silver certificates (orspecified derivatives of which the underlying interest is gold or silver).

The Underlying Fund may invest a portion of its assets in certain ETFs. The ETFs are commodity pools that use financialinstruments that correlate to a multiple (or inverse multiple) of the performance of a specified underlying index. The


141

Underlying Fund will only invest in ETFs that provide exposure to securities that are consistent with the investmentobjectives and strategies of the Underlying Fund.

The Underlying Fund may also engage in short selling. A short sale by a fund involves borrowing securities from a lenderwhich are then sold in the open market. At a future date, the securities are repurchased by the fund and returned to thelender. While the securities are borrowed, the proceeds from the sale are deposited with the lender and the fund paysinterest to the lender. If the value of the securities declines between the time that the fund borrows the securities and thetime it repurchases and returns the securities to the lender, the fund makes a profit on the difference (less any interestthe fund is required to pay the lender). The Portfolio Sub-Advisor of the Underlying Fund believes that a short sellingstrategy will complement the Underlying Fund’s current primary discipline of buying securities with the expectation thatthey will appreciate in market value.

The Underlying Fund may use derivative instruments, such as options, futures, forward contracts and/or swaps, for bothhedging and non-hedging strategies, in a manner which is consistent with the investment objective of the Underlying Fundand as permitted by the Canadian Securities Administrators. You will find more information about derivatives on page 5.



commodity risk

credit risk

currency risk

derivative risk



fund of fund risk

interest rate risk

liquidity risk

multiple class risk


short selling risk



stock market risk

tax risk



you are taxable

you are seeking capital growth, through capital appreciation





142

DISTRIBUTION POLICY

Distributions or dividends will be made at the discretion of the Corporation’s Board of Directors. If the Corporation hasearnings to distribute, it will normally pay any ordinary taxable dividends in September and any capital gains dividendsin November of each year. The Manager reserves the right to make additional distributions in any year if determined tobe appropriate. In each case, dividends will be reinvested by purchasing additional shares of the Fund unless you ask usin advance to be paid in cash rather than receive shares of the Fund.




This example assumes that (i) you invest $1,000 in Series A or Series F shares of the Fund, as the case may be, for the timeperiods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratio and operatingexpenses would be the same throughout the ten year period as they were in the Fund’s last completed financial year.



Series A $ 26.81 $ 86.43 $ 154.82 $ 371.23

Series F $ 15.93 $ 51.88 $ 93.90 $ 230.86


NEI NORTHWEST ENHANCED YIELD EQUITY CORPORATE CLASS

143



Start Date:

Series A shares: May 24, 2013

Series F shares: May 24, 2013

Series I shares: May 24, 2013




Portfolio Sub-Advisor of the Fund: Montrusco Bolton Investments Inc., Montreal, QC


Investment objectives

The investment objective of the Fund is to achieve long-term growth of capital and a sustainable level of yield through theinvestment of its assets primarily in the Canadian equity market and by writing covered call options. The Fund investsprimarily in common shares and, to a lesser extent, in money market and fixed income securities.



In order to achieve the Fund’s investment objective of long-term growth of capital, the Fund invests primarily in a portfolioof Canadian equity securities. The Portfolio Sub-Advisor uses a fundamental, bottom-up approach to select companieswithin a theme of long-term potential growth. In order to achieve the Fund’s investment objective of earning some yield,the Portfolio Sub-Advisor intends to write covered call options on all or a portion of the securities held in the Fund to seekto maximize the option premium available while minimizing the chance of losing potential upside of the underlyingsecurities. The decision to write a covered call option on a particular security is a function of the Portfolio Sub-Advisor’sformal upside target of the underlying security, volatility of the underlying security, liquidity of the underlying security,and the option premium available.

The Fund may invest in real estate, royalty, income and other investment trusts.

The Fund may invest in units of an underlying fund managed by the Manager where consistent with the investmentobjectives of the Fund.

The Fund may use derivative instruments for hedging or non-hedging purposes; specifically the Fund intends to writecovered call options for non-hedging purposes as part of its investment strategy described above.

The Fund may invest in ETFs (Exchange Traded Funds) in order to provide exposure to securities that are consistent withthe investment objectives and strategy of the Fund to help manage cash position.

The Fund may invest up to 30% of its assets at the time of investment in foreign securities.

The Fund may use repurchase and reverse repurchase transactions, and may enter into securities lending agreements.These transactions will only be made with parties considered to be creditworthy and where the transactions shouldprovide additional returns to the Fund.


The Fund may also engage in short selling. A short sale by a fund involves borrowing securities from a lender which arethen sold in the open market. At a future date, the securities are repurchased by the fund and returned to the lender.While the securities are borrowed, the proceeds from the sale are deposited with the lender and the fund pays interest tothe lender. If the value of the securities declines between the time that the fund borrows the securities and the time it


144

repurchases and returns the securities to the lender, the fund makes a profit on the difference (less any interest the fundis required to pay the lender). The Portfolio Sub‐Advisor believes that a short selling strategy will complement the Fund’s current primary discipline of buying securities with the expectation that they will appreciate in market value.




commodity risk

credit risk

currency risk

derivative risk

exchange traded fund risk


fund of fund risk

interest rate risk


liquidity risk

multiple class risk


securities lending, repurchase, and reverse repurchase risk

short selling risk



stock market risk

tax risk



you are seeking long term growth




DISTRIBUTION POLICY

For all Series of shares, the Fund will seek to pay a monthly distribution, consisting of a return of capital of a fixed amountper share determined as of December 31 in the previous year. The Manager reserves the right to make additionaldistributions in any year if determined to be appropriate. In each case, dividends will be reinvested by purchasingadditional shares of the Fund unless you ask us in advance to be paid in cash rather than receive shares of the Fund.


145





This example assumes that (i) you invest $1,000 in Series A or Series F shares of the Fund, as the case may be, for the timeperiods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratio andoperating expenses would be the same throughout the ten year period as they were in the Fund’s last completed financialyear. Fees and expenses applicable to Series I units are paid directly by each investor.



Series A $ 26.31 $ 84.86 $ 152.09 $ 365.08

Series F $ 15.82 $ 51.55 $ 93.31 $ 229.48


NEI NORTHWEST CANADIAN DIVIDEND CORPORATE CLASS

146


Fund Type: Canadian Dividend & Income Equity






Portfolio Sub-Advisor of Underlying Fund: Beutel, Goodman & Company Ltd., Toronto, ON



This Fund’s objective is to achieve a balance between high dividend income and capital growth by investing mainly in adiversified portfolio of blue-chip Canadian common stocks and, to a lesser extent, in high-yield preferred stocks andinterest bearing securities.



The Fund achieves its objective by investing substantially all of its assets in units of NEI Northwest Canadian Dividend Fund(the “Underlying Fund”).

The Underlying Fund’s Portfolio Sub-Advisor chooses primarily blue-chip common stocks. It may also invest in preferredstocks, bonds, purchase warrants and rights, royalty trusts and income trusts. The Underlying Fund’s Portfolio Sub-Advisor’s selections seek to give preference to capital growth, while providing a high, regular level of income.

The Underlying Fund’s Portfolio Sub-Advisor seeks to invest in quality, liquid companies whose management hassuccessfully built shareholder value over time. A common characteristic of these companies is their ability to generate freecash flow, which supports growth and profitability, allowing management to make strategic acquisitions, buy back stockand pay generous and growing dividends. The focus is on small-, mid- and large-capitalization Canadian corporations in avariety of industries, while favouring equity securities, including preferred stocks that provide a stable income.

The Underlying Fund may use derivative instruments, such as options, futures, forward contracts and/or swaps, for bothhedging and non-hedging strategies, in a manner which is consistent with the investment objectives of the Fund and aspermitted by the Canadian Securities Administrators, including to:




Generally, the Underlying Fund is fully invested, but liquid assets may be used to preserve capital in case of anticipatedunfavourable economic conditions.

The Underlying Fund may invest up to 30% of its property at the time of investment in foreign securities.



credit risk


147

currency risk

derivative risk


fund of fund risk

interest rate risk


liquidity risk

multiple class risk




stock market risk

tax risk



you are taxable

you are seeking growth, though capital appreciation, and some dividend income



The Manager identifies the investment risk level of the Fund to determine investor suitability. The Manager’s investmentrisk rating methodology is described under “How Does the Manager Determine Fund Risk?” on page 32. This risk level isreviewed annually and the methodology is available at no cost by contacting us at the address shown on the back coverof this document.

DISTRIBUTION POLICY







148



Series A $ 27.71 $ 89.24 $ 159.73 $ 382.21

Series F $ 16.33 $ 53.18 $ 96.22 $ 236.35


NEI NORTHWEST CANADIAN EQUITY CORPORATE CLASS

149


Type of Fund Canadian Equity

Start DateSeries A shares: October 26, 2007


Securities Offered Mutual Fund Shares


Portfolio Manager Northwest & Ethical Investments L.P., Toronto, ON

Portfolio Sub-Advisor of Underlying Fund Kingwest & Company, Toronto, ON



The objective of this Fund is to achieve long-term capital appreciation by investing primarily in equity securities ofCanadian companies. The Fund may invest in both large and small capitalization companies.



The Fund achieves its objective by investing substantially all of its assets in units of NEI Northwest Canadian Equity Fund(the “Underlying Fund”).

The Underlying Fund invests primarily in equity securities (including securities convertible into equity securities) ofCanadian companies, but may invest up to 35% of its property in similar securities of companies located outside ofCanada. The Underlying Fund’s Portfolio Sub-Advisor invests in companies that fit established investment criteria based onan economic value added approach. This requires businesses to have, in the opinion of the Portfolio Sub-Advisor, acompetitive advantage, superior management, strong financial prospects and a commitment to shareholders’ interests.

The Underlying Fund may hold cash or invest in short-term securities, which are determined by the Underlying Fund’sPortfolio Sub-Advisor to be advisable as a defensive measure if determined to be appropriate for the purposes ofenhancing liquidity or preserving capital in light of prevailing market or economic conditions. The Underlying Fund mayalso temporarily hold a portion of its assets in cash or fixed-income securities while seeking investment opportunities orfor defensive purposes during times of anticipated market volatility.


Most of the Underlying Fund’s assets are invested in equity securities. As a result, the Fund will be subject to the followingrisks, which are described beginning on page 5:

currency risk


fund of fund risk

interest rate risk

liquidity risk

multiple class risk





150

stock market risk

tax risk



you are taxable





DISTRIBUTION POLICY


This distribution policy is reviewed not less than once annually and may be changed at any time, depending uponmarket conditions.


Mutual funds pay for some fees and expenses out of fund assets. That means investors in a mutual fund indirectly payfor these fees and expenses through lower returns. The table below is intended to help you compare the cumulativecost of investing in this Fund with the cost of investing in other mutual funds.

This example assumes that (i) you invest $1,000 in Series A or Series F shares of the Fund, as the case may be, for thetime periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratio andoperating expenses would be the same throughout the ten year period as they were in the Fund’s last completedfinancial year.



Series A $ 27.71 $ 89.24 $ 159.73 $ 382.21

Series F $ 16.13 $ 52.53 $ 95.06 $ 233.61


NEI NORTHWEST U.S. DIVIDEND CORPORATE CLASS

151


Type of Fund US Equity



Securities Offered Mutual Funds Shares



Portfolio Sub-Advisor of Underlying Fund *River Road Asset Management LLC, Louisville, KY, U.S.A.

* As a Portfolio Manager, we have responsibility for the investment advice given and portfolio management services provided

to the Underlying Fund by River Road Asset Management LLC (“River Road”). In certain circumstances, it may be difficult to

enforce legal rights against River Road because it is resident outside Canada and all or substantially all of its assets are located

outside Canada.



The objective of this Fund is to provide investors with long-term capital growth. The Fund invests primarily in commonshares of large-capitalization American corporations.



The Fund achieves its investment objective by investing substantially all of its assets in units of NEI Northwest U.S.Dividend Fund (the “Underlying Fund”).

The Portfolio Sub-Advisor employs a value-driven, bottom-up approach to security selection that seeks to identify stockswith a high and growing dividend yield, financial strength, and attractive business models among other key characteristics.

The Underlying Fund is primarily invested in a diversified multi-cap portfolio of income producing equity securities whichtypically have a minimum market capitalization at the time of initial purchase and are trading below the Portfolio Sub-Advisor’s assessment of fair value. The Underlying Fund is primarily invested in U.S. dividend paying common stocks. The

Underlying Fund may also invest in a broad range of foreign stocks through the use of American Depository Receipts(ADRs), publicly traded partnerships, convertible preferred stocks, Real Estate Investment Trusts (REITs), investmentcompanies, and royalty income trusts.

The Underlying Fund may hold cash or invest in short-term securities, which are determined by the Portfolio Sub-Advisorto be advisable as a defensive measure if determined to be appropriate for the purposes of enhancing liquidity orpreserving capital in light of prevailing market or economic conditions.

The Underlying Fund may use derivatives for foreign currency hedging. You will find more information about derivativeson page 6.

The Underlying Fund may invest up to 100% of its assets at the time of investment in foreign securities.



currency risk

derivative risk


152


fund of fund risk

interest rate risk


multiple class risk



stock market risk

tax risk



you are taxable

you are seeking growth through a diversified portfolio of large capitalization American corporations




DISTRIBUTION POLICY







153



Series A $ 28.90 $ 92.98 $ 166.23 $ 396.68

Series F $ 16.33 $ 53.18 $ 96.22 $ 236.35


NEI NORTHWEST EMERGING MARKETS CORPORATE CLASS

154


Type of Fund Emerging Markets Equity



Securities Offered Mutual Fund Shares



Portfolio Sub-Advisor of Underlying Fund *Columbia Management Investment Advisers, LLC, Boston, MA, U.S.A.

* As a Portfolio Manager, we have responsibility for the investment advice given and portfolio management services providedto the Underlying Fund by Columbia Management Investment Advisers, LLC (“Columbia”). In certain circumstances, it may bedifficult to enforce legal rights against Columbia because it is resident outside Canada and all or substantially all of its assetsare located outside Canada.



The Fund aims to achieve long-term capital appreciation by investing its assets primarily in equity securities of emergingmarket companies. The Fund will be able to invest in any sector and in both large and small capitalization companies.



The Fund achieves its objective by investing substantially all of its assets in units of NEI Northwest Emerging Markets Fund(the “Underlying Fund”).

The Underlying Fund’s Portfolio Sub-Advisor’s investment philosophy is based on the core belief that evaluating stockswith a combination of fundamental and quantitative methods is superior to any single approach because it yields a morecomprehensive understanding of factors that drive performance.

The Underlying Fund’s Portfolio Sub-Advisor follows a disciplined investment process that combines top-down andbottom-up fundamental research with quantitative tools. The bottom-up stock selection is considered to be as critical asthe top-down macro analysis, given the extensive number of investable stocks in the Emerging Markets universe. Theinvestment process seeks to identify “Stewards of Capital” companies that know how to sustain and accelerate profitablegrowth, and hence are believed to be best positioned in realizing the potential created by the under-penetration of manyemerging-market industries.

The Underlying Fund may temporarily hold a portion of its assets in cash or fixed income securities while seekinginvestment opportunities or for defensive purposes during times of anticipated market volatility.

The Underlying Fund may use derivative instruments, such as options, futures, forward contracts and/or swaps, for bothhedging and non-hedging strategies, in a manner which is consistent with the investment objectives of the Fund and aspermitted by the Canadian Securities Administrators, including to:




The Underlying Fund may invest up to 100% of its assets at the time of investment in foreign securities.


155



currency risk

derivative risk



fund of fund risk

interest rate risk

multiple class risk



stock market risk

tax risk



you are taxable

you are seeking long term capital growth through a diversified portfolio of emerging market


you are prepared for high risk


DISTRIBUTION POLICY





This example assumes that (i) you invest $1,000 in Series A or Series F shares of the Fund, as the case may be, for the timeperiods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratio andoperating expenses would be the same throughout the ten year period as they were in the Fund’s last completed financialyear.



156


Series A $ 30.98 $ 99.48 $ 177.50 $ 421.57

Series F $ 18.87 $ 61.30 $ 110.64 $ 270.17


NEI NORTHWEST GLOBAL EQUITY CORPORATE CLASS

157


Type of Fund: Global Equity






Portfolio Sub-Advisor of Underlying Fund: Beutel, Goodman & Company Ltd., Toronto, ON



The Fund aims for long-term growth by investing primarily in foreign equity securities across all market capitalizations. TheFund is usually invested in large and medium sized well-capitalized foreign (including the United States) companies, whichare listed on principal global stock exchanges. The balance of the Fund’s assets is short-term fixed income securities.



The Fund achieves its objective by investing substantially all of its assets in units of NEI Northwest Global Equity Fund (the“Underlying Fund”).

The Underlying Fund’s Portfolio Sub-Advisor uses a value approach designed to identify high quality, liquid companiestrading at a significant discount to their “business value,” defined as the present value of sustainable free cash flow. Aconsistent and rigorous analytical framework is employed that allows for direct comparison of diverse opportunitiesacross markets and sectors. Risk is controlled primarily at the security level through a buy/sell discipline that involves theestablishment of formal targets and downside limits based on fundamental research

The Underlying Fund may hold cash or invest in short-term securities which are determined by its Portfolio Sub-Advisor tobe advisable as a defensive measure if determined to be appropriate for purposes of enhancing liquidity or preservingcapital in light of prevailing market or economic conditions. The Underlying Fund may also temporarily hold a portion of itsassets in cash or fixed-income securities while seeking investment opportunities or for defensive purposes during times ofanticipated market volatility.

The Underlying Fund may invest up to 10% of its property in Canadian listed securities.






Most of the Underlying Fund’s assets are invested in foreign equity securities. As a result, the Fund will be subject to thefollowing risks, which are described beginning on page 5:

currency risk


158

derivative risk


fund of fund risk

interest rate risk

liquidity risk

multiple class risk



stock market risk

tax risk



you are taxable





DISTRIBUTION POLICY








Series A $ 28.20 $ 90.90 $ 162.44 $ 388.26

Series F $ 52.86 $ 52.86 $ 95.64 $ 234.98


NEI NORTHWEST SPECIALTY EQUITY CORPORATE CLASS

159


Type of Fund: Canadian Small/Mid Cap Equity






Portfolio Sub-Advisor of Underlying Fund: Montrusco Bolton Investments Inc., Montreal, QC



The Fund aims to achieve capital appreciation over the longer term by seeking to invest primarily in the equity securitiesof faster growing, small-cap Canadian companies.



The Fund achieves its objective by investing substantially all of its assets in units of NEI Northwest Specialty Equity Fund(the “Underlying Fund”).

The Underlying Fund’s Portfolio Sub-Advisor uses a bottom up ownership investing approach (a detailed analysis of thecompany) to achieve long-term growth of capital through the investment in Canadian corporations or Canadian listedcorporations.

The Underlying Fund’s Portfolio Sub-Advisor looks for small or mid-capitalization companies with distinct competitiveadvantages, strong balance sheets, financially committed management teams, strong sales and earnings growth, and goodreturn on equity, and then tries to acquire these companies at reasonable valuations.

The Underlying Fund may hold cash or invest in short-term securities for the purpose of preserving capital and/ormaintaining liquidity, based upon the ongoing evaluation of current and anticipated economic and market conditions byits Portfolio Sub-Advisor. The Underlying Fund may also temporarily hold a portion of its assets in cash or fixed-incomesecurities while seeking investment opportunities or for defensive purposes during times of anticipated market volatility.

The Underlying Fund may invest up to 30% of its property in foreign securities.


Most of the Underlying Fund’s assets are invested in equity securities. As a result, the Fund will be subject to the followingrisks, which are described beginning on page 5:

currency risk


fund of fund risk

interest rate risk

liquidity risk

multiple class risk




160


stock market risk

tax risk



you are taxable



you are prepared for medium to high risk


DISTRIBUTION POLICY





This example assumes that (i) you invest $1,000 in Series A or Series F shares of the Fund, as the case may be, for the timeperiods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratio andoperating expenses would be the same throughout the ten year period as they were in the Fund’s last completed financialyear.



Series A $ 27.71 $ 89.24 $ 159.73 $ 382.21

Series F $ 18.97 $ 61.62 $ 111.21 $ 271.50


NEI SELECT CONSERVATIVE CORPORATE CLASS PORTFOLIO

161



Start Date:









The Portfolio’s investment objective is to obtain a comparable return to that of NEI Select Conservative Portfolio (the“Underlying Portfolio”).

The Portfolio invests substantially all of its assets in units of the Underlying Portfolio1

and/or in securities of the mutualfunds held by the Underlying Portfolio and/or in mutual funds similar to those funds, based on a similar weighting to thatused by the Underlying Portfolio.

The Underlying Portfolio aims to generate a moderate level of income while providing some potential for capital growthby investing in a mix of income oriented mutual funds and equity mutual funds. The Underlying Portfolio invests in avariety of other mutual funds managed by different portfolio managers.

Securityholder approval (by a majority of votes cast at a meeting of shareholders) is required prior to a fundamentalchange of investment objectives.1

Investments in units of the Underlying Portfolio are subject to obtaining regulatory approval.


To achieve the Portfolio’s investment objective, the Portfolio Manager invests substantially all of the Portfolio’s assets inunits of the Underlying Portfolio, subject to regulatory approval, and/or in securities of the mutual funds held by theUnderlying Portfolio and/or in mutual funds similar to those funds, based on a similar weighting to that used by theUnderlying Portfolio.

The Portfolio Manager of the Underlying Portfolio uses strategic asset allocation as the principal investment strategy.

The Portfolio Manager selects the underlying funds based on their expected return, volatility and correlation whileaccounting for investment styles and other qualitative factors.



To achieve its objective, the Portfolio invests in the following asset classes by purchasing securities of various mutualfunds. The current approximate target percentages of the asset class allocation are set out below:


Equity 10-40%

The percentages listed above are approximate due to continuous market fluctuations and administrative efficiencies. As aresult, the actual percentages invested in the asset classes on any given day may not exactly conform to the percentagesset forth above. Rebalancing will be done at the discretion of the Portfolio Manager.


162

The Portfolio, whether investing directly or through its investment in the Underlying Portfolio, may invest up to 49% of itstotal assets at the time of investment in underlying funds which invest in foreign securities.



The Portfolio will be subject to the following risks, which are described beginning on page 5 due to its investments in theunderlying funds:



credit risk

currency risk

derivative risk


fund of fund risk

interest rate risk


liquidity risk

multiple class risk




stock market risk

tax risk











you are taxable





163

The Manager identifies the investment risk level of the Portfolio to determine investor suitability. The Manager’sinvestment risk rating methodology is described under “How Does the Manager Determine Fund Risk?” on page 32. Thisrisk level is reviewed annually and the methodology is available at no cost by contacting us at the address shown on theback cover of this document.

DISTRIBUTION POLICY

Distributions or dividends will be made at the discretion of the Corporation’s Board of Directors. For Series A and Series Fshares, if the Corporation has earnings to distribute, it will normally pay any ordinary taxable dividends in September andany capital gains dividends in November of each year. The Manager reserves the right to make additional distributions inany year if determined to be appropriate. In each case, dividends will be reinvested by purchasing additional shares of thePortfolio unless you ask us in advance to be paid in cash rather than receive shares of the Portfolio.

For Series T shares, the Portfolio will seek to pay a monthly distribution, consisting of a return of capital of a fixed amountper share determined as of December 31 in the previous year. These monthly distributions will be paid in cash. TheManager reserves the right to make additional distributions in any year if determined to be appropriate.





This example assumes that (i) you invest $1,000 in Series A, Series F or Series T shares of the Portfolio, as the case may be,for the time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratioand operating expenses would be the same throughout the ten year period as they were in the Portfolio’s last completedfinancial year.



Series A $ 23.21 $ 75.07 $ 134.94 $ 326.24

Series F $ 12.55 $ 41.03 $ 74.49 $ 184.60

Series T $ 22.50 $ 72.85 $ 131.03 $ 317.29


NEI SELECT BALANCED CORPORATE CLASS PORTFOLIO

164



Start Date:









The Portfolio’s investment objective is to obtain a comparable return to that of NEI Select Global Balanced Portfolio (the“Underlying Portfolio”).



The Underlying Portfolio aims to provide long-term capital growth and preservation of capital through exposure to foreignand Canadian equity securities and exposure to fixed income investments.

The Underlying Portfolio will invest in underlying mutual funds, which may be managed by NEI Investments, which holdequities and fixed income securities.








The Portfolio may temporarily hold a portion of its assets in cash or fixed income securities while seeking investmentopportunities or for defensive purposes during times of anticipated market volatility.



Equity 40-60%


165





The Portfolio will be subject to the following risks, which are described beginning on page 5 due to its investments in theunderlying funds:



credit risk

currency risk

derivative risk


fund of fund risk

interest rate risk


liquidity risk

multiple class risk




stock market risk

tax risk











you are taxable




166



DISTRIBUTION POLICY

Distributions or dividends will be made at the discretion of the Corporation’s Board of Directors. For Series A and Series Fshares, if the Corporation has earnings to distribute, it will normally pay any ordinary taxable dividends in September andany capital gains dividends in November of each year. The Manager reserves the right to make additional distributions inany year if determined to be appropriate. In each case, dividends will be reinvested by purchasing additional shares of thePortfolio unless you ask us in advance to be paid in cash rather than receive shares of the Portfolio.

For Series T shares, the Portfolio will seek to pay a monthly distribution, consisting of a return of capital of a fixed amountper share determined as of December 31 in the previous year. These monthly distributions will be paid in cash. TheManager reserves the right to make additional distributions in any year if determined to be appropriate.





This example assumes that (i) you invest $1,000 in Series A, Series F or Series T shares of the Portfolio, as the case may be,for the time periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratioand operating expenses would be the same throughout the ten year period as they were in the Portfolio’s last completedfinancial year.



Series A $ 25.61 $ 82.66 $ 148.24 $ 356.43

Series F $ 15.42 $ 50.24 $ 90.98 $ 223.95

Series T $ 24.91 $ 80.45 $ 144.38 $ 347.70


NEI SELECT GROWTH CORPORATE CLASS PORTFOLIO

167


Type of Fund: Strategic Asset Allocation





Portfolio Manager: Northwest & Ethical Investment L.P., Toronto, ON

1Series F shares were previously offered between October 26, 2007 – September 17, 2010.



The Portfolio’s investment objective is to obtain a comparable return to that of NEI Select Global Growth Portfolio (the“Underlying Portfolio”).



The Underlying Portfolio aims to provide income with some long-term capital growth primarily through exposure toCanadian and foreign equity securities and, to a lesser extent, exposure to fixed income investments.

The Underlying Portfolio will invest in underlying mutual funds, which may be managed by NEI Investments, which holdequities and fixed income securities.











Equity 60-90%


168





The Portfolio will be subject to the following risks, which are described beginning on page 5, due to its investments in theunderlying funds:


credit risk

currency risk

derivative risk



fund of fund risk

interest rate risk


liquidity risk

multiple class risk




tax risk










Higher-yielding, higher risk income securities, like the securities in which one or more of the underlying funds invests, aresubject to greater risk of loss of principal and income than higher-rated fixed income securities and are considered to beless certain with respect to the issuer’s capacity to pay interest and repay principal.



169

Lower-rated and unrated corporate bonds and notes are traded principally by dealers in the over-the-counter market. Themarket for these securities may be less active and less liquid than for higher rated securities. Under adverse market oreconomic conditions, the secondary market for these bonds and notes could contract further, causing an underlying fundand therefore the Portfolio difficulties in valuing and selling their securities.



you are taxable




The Manager identifies the investment risk level of the Portfolio to determine investor suitability. The Manager’sinvestment risk rating methodology is described under “How Does the Manager Determine Fund Risk?” on page 32.This risk level is reviewed annually and the methodology is available at no cost by contacting us at the address shownon the back cover of this document.

DISTRIBUTION POLICY

Distributions or dividends will be made at the discretion of the Corporation’s Board of Directors. If the Corporation hasearnings to distribute, it will normally pay any ordinary taxable dividends in September and any capital gains dividends inNovember of each year. The Manager reserves the right to make additional distributions in any year if determined to beappropriate. In each case, dividends will be reinvested by purchasing additional shares of the Portfolio unless you ask us inadvance to be paid in cash rather than receive shares of the Portfolio.




This example assumes that (i) you invest $1,000 in Series A or Series F shares of the Portfolio, as the case may be, for thetime periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratio andoperating expenses would be the same throughout the ten year period as they were in the Portfolio’s last completedfinancial year.



Series A $ 28.80 $ 92.67 $ 165.69 $ 395.48

Series F $ 16.74 $ 54.49 $ 98.54 $ 241.83



170

NEI SELECT GLOBAL MAXIMUM GROWTH CORPORATE CLASS PORTFOLIO

Type of Fund: Strategic Asset Allocation

Start Date: Series A shares: October 26, 2007





1Series F shares were previously offered between October 26, 2007 – September 17, 2010.



The Portfolio’s investment objective is to obtain a comparable return to that of NEI Select Global Maximum GrowthPortfolio (the “Underlying Portfolio”).



The Underlying Portfolio aims to increase the value of your investment over the long term by investing primarily in equitymutual funds. The Underlying Portfolio invests in a variety of other mutual funds managed by different portfoliomanagers.











Equity 80-100%


171





The Portfolio will be subject to the following risks, which are described beginning on page 5, due to its investments in theunderlying funds:


commodity risk

concentration risk

credit risk

currency risk

derivative risk



fund of fund risk

interest rate risk


liquidity risk

multiple class risk




stock market risk

tax risk


NEI Northwest Emerging Markets Fund 10.9%









you are taxable


172

you are seeking long term growth, through an investment diversified by asset class, style, and geography



The Manager identifies the investment risk level of the Portfolio to determine investor suitability. The Manager’sinvestment risk rating methodology is described under “How Does the Manager Determine Fund Risk?” on 32. This risklevel is reviewed annually and the methodology is available at no cost by contacting us at the address shown on the backcover of this document.

DISTRIBUTION POLICY

Distributions or dividends will be made at the discretion of the Corporation’s Board of Directors. If the Corporation hasearnings to distribute, it will normally pay any ordinary taxable dividends in September and any capital gains dividends inNovember of each year. The Manager reserves the right to make additional distributions in any year if determined to beappropriate. In each case, dividends will be reinvested by purchasing additional shares of the Portfolio unless you ask us inadvance to be paid in cash rather than receive shares of the Portfolio.




This example assumes that (i) you invest $1,000 in Series A or Series F shares of the Portfolio, as the case may be, for thetime periods indicated, (ii) your investment has an annual 5% return, and (iii) the series management expense ratio andoperating expenses would be the same throughout the ten year period as they were in the Portfolio’s last completedfinancial year.



Series A $ 30.19 $ 97.01 $ 173.22 $ 412.16

Series F $ 18.36 $ 59.68 $ 107.77 $ 263.48


173

NEI, NORTHWEST AND ETHICAL FUNDS

OFFERING SERIES A, B, T, F, I, P AND PF UNITS OR SHARES UNLESS OTHERWISE NOTED.

NEI FUNDS

(Offering Series A, F and I, except where noted, and Series P, PF and T where

noted)

NEI Money Market Fund1


NEI Income Fund

NEI Global Total Return Bond Fund2,5

ETHICAL FUNDS

(Offering Series A, F and I and Series P and PF where noted)





NEI Ethical Global Dividend Fund5



NORTHWEST FUNDS

(Offering Series A, F and I, and Series T, P and PF where noted)

NEI Northwest Specialty High Yield Bond Fund2

NEI Northwest Specialty Global High Yield Bond Fund2

NEI Northwest Tactical Yield Fund2,5

NEI Northwest Growth and Income Fund2

NEI Northwest Macro Canadian Asset Allocation Fund2,5


NEI Northwest Canadian Dividend Fund2



NEI Northwest U.S. Dividend Fund5



1. Does not offer Series F units or shares

2. Also offers Series T units or shares

3. Does not offer Series B units

4. Also offers Series I shares

5. Also offers Series P and Series PF units

SELECT PORTFOLIOS

(Offering Series A, B and F, except where noted)


NEI Ethical Select Conservative Portfolio3

NEI Ethical Select Balanced Portfolio3

NEI Ethical Select Growth Portfolio3




NEI Select Global Balanced Portfolio3

NEI Select Global Growth Portfolio3


NEI CORPORATE CLASS FUNDS

(Offering Series A and F, except where noted, and Series I

and T where noted)

NEI Northwest Short Term Corporate Class1

NEI Northwest Tactical Yield Corporate Class2

NEI Northwest Growth and Income Corporate Class2

NEI Northwest Macro Canadian Asset Allocation Corporate Class2

NEI Northwest Macro Canadian Equity Corporate ClassNEI Northwest Enhanced Yield Equity Corporate Class4

NEI Northwest Canadian Dividend Corporate ClassNEI Northwest Canadian Equity Corporate ClassNEI Northwest U.S. Dividend Corporate ClassNEI Northwest Emerging Markets Corporate ClassNEI Northwest Global Equity Corporate ClassNEI Northwest Specialty Equity Corporate ClassNEI Select Conservative Corporate Class Portfolio2

NEI Select Balanced Corporate Class Portfolio2

NEI Select Growth Corporate Class PortfolioNEI Select Global Maximum Growth Corporate Class Portfolio

Additional information about the Funds is available in the Funds’annual information form, Fund Facts, management reports of fundperformance and financial statements. These documents areincorporated by reference into this Simplified Prospectus, whichmeans that they legally form part of this document just as if they wereprinted as part of this document.

You can get a copy of these documents, at your request, and at no costby calling 1-888-809-3333 or by asking your Mutual FundsInvestment Dealer or Investment Advisor or by e-mail [email protected].

These documents and other information about the Funds, such asinformation circulars and material contracts, are also available on oursite at www.NEIinvestments.com or at www.sedar.com.

Northwest & Ethical Investments L.P.151 Yonge Street, 12th FloorToronto, Ontario M5C 2W7Tel: 416-594-6633Fax: 416-594-3370Toll Free Tel 1-888-809-3333

Toll Free Fax 1-888-809-4444

NEI, NORTHWEST AND ETHICAL FUNDS - Portfolios Prospectus Jun 26... · NEI, NORTHWEST AND ETHICAL...

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Transcript of NEI, NORTHWEST AND ETHICAL FUNDS - Portfolios Prospectus Jun 26... · NEI, NORTHWEST AND ETHICAL...