2017 Annual Report

The Princess Margaret Cancer Foundation Notes to financial statements [in thousands] March 31, 2017 Interest rate risk The Foundation is exposed to interest rate risk with respect to its investments in fixed income investments and a pooled fund that holds fixed income securities because the fair value will fluctuate due to changes in market interest rates. Other price risk The Foundation is exposed to other price risk through changes in market prices [other than changes arising from interest rate risk or currency risk] in connection with its investments in equity securities and pooled funds. 16. COMPARATIVE FINANCIAL STATEMENTS The comparative financial statements have been reclassified from statements previously presented to conform to the presentation of the 2017 financial statements. 12 for the benefit of graduate students studying with University faculty members located at Princess Margaret Cancer Centre at UHN facilities and engaged in cancer research. During 2014, the Foundation negotiated an agreement in which a grant of $150 from the Foundation to the University was matched equally by the University. This established a $300 endowment to be held by the University for the benefit of PhD students in the Department of Medical Biophysics in the Faculty of Medicine, located at Princess Margaret Cancer Centre at UHN. The following financial results for the year ended April 30, 2017 were reported by the University to the Foundation: Endowment Fund Expendable Fund $ $ Balance, at market value, April 30, 2016 12,675 1,340 Investment income 1,935 3 Transfer to Expendable Fund (492) 492 Matching funds — 6 Student awards — (622) Balance, at market value, April 30, 2017 14,118 1,219 15. FINANCIAL INSTRUMENTS The Foundation is exposed to various financial risks through transactions in financial instruments. Currency risk The Foundation is exposed to foreign currency risk with respect to its investments denominated in foreign currencies, including the underlying investments of its pooled funds denominated in foreign currencies, because the fair value and future cash flows will fluctuate due to the changes in the relative value of foreign currencies against the Canadian dollar. Credit risk The Foundation is exposed to credit risk in connection with its short-term and fixed income investments because of the risk that one party to the financial instrument may cause a financial loss for the other party by failing to discharge an obligation. The Princess Margaret Cancer Foundation | 77 FINANCIAL SUMMARY - FISCAL 2017