Mr. Keith Crone reports

EVOLVE TO PROVIDE PFIC REPORTING FOR U.S. TAXPAYER INVESTORS FOR CERTAIN EVOLVE FUNDS

Evolve Funds Group Inc. will make passive foreign investment company (PFIC) annual information statements available for certain funds, beginning with the year ended June 30, 2025. The statements are intended to help unitholders who file U.S. tax returns receive more favourable U.S. tax treatment on their holdings.

Under U.S. tax law, Canadian exchange-traded funds (ETFs) and mutual funds are generally treated as PFICs. The PFIC rules are designed to limit the extent to which U.S. persons, including U.S. citizens living in Canada, can defer U.S. tax through investments in non-U.S. funds. Without a PFIC annual information statement, U.S. taxpayers holding a Canadian fund may face punitive tax treatment, including ordinary income rates on gains and interest charges on deferred tax.

The PFIC annual information statements will allow eligible investors to elect to treat the applicable Evolve funds as qualified electing funds (QEFs) on IRS Form 8621. A QEF election generally gives U.S. taxpayers access to capital gains tax rates on their fund holdings and avoids the interest charges that would otherwise apply.

PFIC annual information statements will be posted on the Evolve website on or about Oct. 15, 2026. The list of funds may change without notice and will be reviewed annually.

PFIC rules are complex. Evolve recommends that affected investors consult their financial adviser and a qualified U.S. tax professional about the PFIC rules and whether a QEF election is appropriate for their circumstances.

PFIC annual information statements will be provided for the Evolve funds listed in the attached table.

About Evolve Funds Group Inc.

With over $10-billion in assets under management, Evolve specializes in bringing innovative ETFs to Canadian investors. Evolve's suite of ETFs provide investors with access to: (i) index-based income strategies; (ii) long-term investment themes; and (iii) some of the world's leading investment managers. Established by a team of industry veterans with a demonstrated ability to succeed, Evolve creates investment products that make a difference.

We seek Safe Harbor.