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This annual report contains the annual management report of fund performance and the annual fi nancial statements of the Fund. The annual management report of fund performance contains fi nancial highlights, but does not contain the annual fi nancial statements of the Fund. You may obtain additional copies of these documents at your request, and at no cost, by calling toll free 1-800-268-8186, by visiting our website at www.dpfopportunities.com or SEDAR at www.sedar.com or by writing to us at: Dynamic Funds Tower, 1 Adelaide Street East, Ste. 2900, Toronto, Ontario, M5C 2V9.

Securityholders may also contact us using one of these methods to request a copy of the Fund’s proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure.

GCIC Ltd. is the manager (the “Manager”) of the Fund. In this document, “we”, “us”, “our”, the “Manager” and “GCICL” refer to GCIC Ltd.

ANNUAL REPORTPeriod ended June 30, 2013

BOARD OF GOVERNORS’ REPORT

GCIC Ltd., as manager (in such capacity, the ‘‘Manager’’) and, if applicable, trustee (in such capacity, the ‘‘Trustee’’) of your fund, recognizes that itsbusiness rests on a foundation of trust. For this reason the Manager has, since 1996, provided investors with the benefit of an independentgovernance body (the ‘‘Board of Governors’’) to oversee the operations of the funds managed by the Manager (the ‘‘Funds’’), including yourinvestment.

In 2007, pursuant to new regulatory requirements, the Manager appointed an Independent Review Committee (the ‘‘IRC’’) to review and providerecommendations or approval, as required, regarding certain conflict of interest matters referred to it by the Manager. The IRC prepares and files areport to securityholders each fiscal year. The IRC currently consists of four members, all of whom are also members of the Board of Governors. TheIRC is comprised of Mr. Brahm Gelfand (Chair), Mr. Alain Benedetti, Mr. Richard Crowe and Mr. Ronald Singer. The IRC and the Board of Governorsare two distinct bodies.

The function of the Board of Governors is to represent the interests of investors in the Funds and to act in an advisory capacity to the Manager andTrustee of the Funds. This responsibility is expressed in the Board of Governors’ mandate to:

• help protect the interests of the securityholders of the Funds;• oversee the operations of the Funds such that they are managed in the best interests of the securityholders; and• act in an advisory role to the Manager and Trustee of the Funds.

The members of the Board of Governors are: Mr. Alain Benedetti (Chairman), Mr. Richard Crowe, Mr. Brahm Gelfand, Mr. Simon Hitzig, Mr. GarthMacRae and Mr. Ronald Singer. Mr. Benedetti, a past Chairman of the Canadian Institute of Chartered Accountants, was prior to his retirementVice-Chairman and Canadian Area Managing Partner of Ernst & Young LLP. Mr. Crowe is retired and formerly President, Portfolio Manager and afounding partner of Senecal and Associates Investment Counsel. Mr. Gelfand is counsel at Lapointe Rosenstein Marchand Melancon L.L.P., a law firm.Mr. Hitzig is president of Accord Financial Ltd., a financial services firm. Mr. MacRae is a chartered accountant, a director of Dundee Corporation, aformer director of DundeeWealth Inc. and has held various positions within the Dundee organization since 1987. Mr. Singer is a retired partner ofHyde Houghton, Chartered Accountants. Each member of the Board of Governors is independent of management.

In order to carry out its mandate effectively, the Board of Governors has formed the following committees:

The Audit Committee: This committee is responsible for reviewing the financial statements and the management report of fund performance andrecommending them to the Boards of Directors of Dynamic Global Fund Corporation (‘‘DGFC’’) and Dynamic Managed Portfolios Ltd. (‘‘DMPL’’), withrespect to the Funds that are corporate funds (the ‘‘Corporate Funds’’), and to the Board of Directors of the Manager, in its capacity as trustee of theFunds, with respect to the Funds that are trust funds (the ‘‘Trust Funds’’). This committee is also responsible for reviewing the audit plan andrecommending it to the Boards of Directors of DGFC and DMPL, with respect to the Corporate Funds, and to the Board of Directors of the Manager,with respect to the Trust Funds, for approval. In addition, this committee provides the independent auditors of the Funds with a means to raise anyunresolved issues with management and provides the auditors the vehicle to maintain their independence. The Audit Committee is comprised ofMr. Garth MacRae (Chair), Mr. Alain Benedetti, Mr. Richard Crowe, Mr. Brahm Gelfand, Mr. Simon Hitzig, and Mr. Ronald Singer.

The Fund Review Committee: This committee is responsible for overseeing, among other things, fund performance, certain activities of the portfoliomanagers, client brokerage commission arrangements and execution costs. The Fund Review Committee is comprised of Mr. Richard Crowe (Chair),Mr. Simon Hitzig and Mr. Ronald Singer.

The Governance Committee: This committee deals with, among other things, succession planning, member evaluation and education, memberselection and appointment, code of ethics, compliance with laws and regulations, whistleblowing mechanism and ongoing developments withsecurities regulations relating to the Manager and the investment industry. The Governance Committee is comprised of Mr. Alain Benedetti (Chair),Mr. Richard Crowe and Mr. Ronald Singer.

Representatives from the portfolio management team of the Manager regularly report to the Board of Governors on the operations of the Funds toensure that the stated mandate of each Fund is being followed. Senior management, including representatives of the Manager’s ComplianceCommittee and its Internal Auditor, periodically report to the Board of Governors on the controls that the Manager has in place to protect the Fund’sassets and to review and discuss the following:

• compliance with the Manager’s Code of Ethics;• appropriate resolution of potential or perceived conflicts of interest;• internal controls over financial reporting;• the accuracy of daily net asset value calculations; and• compliance with regulatory requirements.

The Director, Internal Audit, provides reports to the Audit Committee of the Board of Governors and the IRC and provides independent oversight andreports on the operations of the Manager that affect the Funds.

Management is currently evaluating the structure and the function of the Board of Governors. Any changes to the Board of Governors structure will becommunicated to the unitholders in the next semi-annual report.

13SEP201215591824 16FEB201014125164

DPF India Opportunities FundMANAGEMENT RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying financial statements of the Fund have been prepared by GCIC Ltd., in its capacity as manager (the ‘‘Manager’’) of the Fund andhave been approved by the Board of Directors of GCIC Ltd., in its capacity as trustee (the ‘‘Trustee’’) of the Fund. The Board of Directors of the Trusteeis responsible for the information and representations contained in these financial statements and the management report of fund performance.

The Manager maintains appropriate processes to ensure that relevant and reliable financial information is produced. The financial statements havebeen prepared in accordance with Canadian generally accepted accounting principles and include certain amounts that are based on estimates andjudgments made by the Manager. The significant accounting policies which the Manager believes are appropriate for the Fund are described in Note 2to the financial statements.

The Audit Committee of the Board of Governors is responsible for reviewing the financial statements and the management report of fund performanceand recommending them to the Board of Directors of the Trustee for approval, in addition to meeting with management, internal auditors and externalauditors to discuss internal controls over the financial reporting process, auditing matters and financial reporting issues.

PricewaterhouseCoopers LLP is the external auditor of the Fund, appointed by the Trustee of the Fund. The auditor of the Fund has audited thefinancial statements in accordance with Canadian generally accepted auditing standards to enable it to express to the unitholders its opinion on thefinancial statements. The auditor’s report is set out herein.

JORDY CHILCOTT JOHN PEREIRA

Executive Chairman, President and Chief Executive Officer Chief Financial Officer and Chief Administrative OfficerGCIC Ltd. GCIC Ltd.

September 10, 2013

DPF India Opportunities FundMANAGEMENT REPORT OF FUND PERFORMANCE

period and the broad-based benchmark’s lack of exposure to India. TheInvestment Objective and StrategiesFund outperformed the relevant benchmark as a result of strong sector

DPF India Opportunities Fund (the ‘‘Fund’’) seeks to enhance the value and security selections.of the Trust Units primarily through capital appreciation driven by an

At the end of June 2012, Indian equities were in the midst of aactively managed, diversified investment portfolio, being securities of:correction as uncertainty over the global economy, slowing economic(a) predominantly public issuers that operate primarily in India; (b) upgrowth in India, and the lack of economic policy reforms in the countryto 20% in private issuers operating primarily in India and which, in thecaused investors to shift away from Indian equities. The negativeview of the portfolio advisor, are potential takeover targets or are likelysentiment for Indian equities reversed course in the first half of theto become publicly listed; and (c) issuers located outside of India thatcurrent period and the positive sentiment allowed the benchmark toare seeking to capitalize on potential commercial and investmentgenerate a strong return for the period as a whole. Although the sameopportunities that may be or become available in India.macroeconomic issues continued to weigh on markets, there was a

The portfolio advisor will actively manage the portfolio and use a concerted move by central banks and governments to add stimulus tocombination of top-down macroeconomic analysis and bottom-up the global economy. In early September the U.S. Federal Reserve, thefundamental research to identify and invest in securities of issuers to European Central Bank and the Chinese government all made significantinclude in the portfolio. The portfolio will be focused on equity or equity stimulus announcements in an attempt to help reflate their respectiverelated securities (or other securities of an issuer which allows the economies. In addition to the global stimulus actions, the Indian equityholder to participate in the earnings or growth of an entity, including market responded favourably to the expectation that the country’sdebt securities) which, in the view of the portfolio advisor, are of high economic reforms would be reinitated. These positive developments ledquality issuers that exhibit strong fundamentals and possess superior to an increase in flows into Indian equities from both foreign andprospects for growth, and the strategies employed (including derivative domestic investors.strategies) are intended to enhance returns and reduce risk.

The Fund entered the current period with a defensively positionedAll of the investment objectives and strategies of the Fund are further portfolio due to the high degree of uncertainty in the global economydescribed in the prospectus of the Fund. and the lack of policy reforms in India. This defensive positioning came

from the Fund’s 16% allocation to cash at the beginning of the period,Risk limited exposure to mid-cap stocks and focus on the non-cyclical

sectors of the market. As the period progressed, the combination ofThe risks associated with investing in the Fund are as described in theincreased global stimulus efforts and expectations that India’s economicsimplified prospectus. There were no material changes to the Fund overreforms would be restarted led the Fund to move to a less defensivelyits last completed financial year that affected the overall level of risk ofpositioned portfolio. By the end of the period, the Fund’s allocation tothe Fund.cash was reduced to 4%, exposure to cyclical stocks was increased andexposure to sectors benefiting from a recovery in domestic

Results of Operations(1)consumption was increased.

For the year ended June 30, 2013 (the ‘‘period’’), the Trust Units of the On a sector level, the Fund added value by holding an overweightFund generated a total return of 8.4%. Fund returns are reported net of position in consumer staples and underweight positions in materialsall management fees and expenses, unlike the returns of the Fund’s and telecommunications. There were two significant sector changesbenchmark, which is based on the performance of an index that does over the period; financials was increased to 30% from 19% andnot pay fees or incur expenses. information technology was decreased to 14% from 24%. The Fund

increased exposure to financials as a way to play the improvingThe Fund’s broad-based benchmark, the MSCI World Index (C$),prospects of the economy and benefit from a recovery in consumerreturned 22.3% during the same period. This is a free float-adjustedspending. In addition, the financials sector benefited from increasedmarket capitalization index that is designed to measure global developedexpectations of an interest rate cut in the first half of the period whichmarket equity performance. In accordance with Nationalcame in the form of three separate cuts in rates in the second half of theInstrument 81-106, we have included a comparison to this broad-basedperiod in January, March and May. The banks also benefited from betterindex to help you understand the Fund’s performance relative to thethan expected asset quality in non state-owned banks. The bulk of thegeneral performance of the market, but caution that the Fund’s mandateFund’s higher weighting in financials was directed to these privatemay be significantly different from the index shown.sector banks. The lower weighting in information technology was due to

The Fund’s relevant benchmark, the BSE Sensex 30 Index (C$), returned sector’s exposure to European-based customers and the ongoing7.7% during the same period. We have included this comparison, which macroeconomic issues in the region. As a result of the uncertainty inmore closely reflects the market sectors in which the investment fund Europe, the Fund reduced its position in the information technologyinvests, to provide a more useful comparative to the performance of sector and focused more of the portfolio on domestic-driventhe Fund. investments. On an individual security level, the portfolio’s top positive

contributors over the period were ITC Limited, Dabur India Ltd., andThe Fund underperformed the broad-based benchmark due to the weakLupin Limited.relative performance of Indian equities versus global equities over the

The Fund may make distributions at a rate determined by the Manager(1) All references to net assets or net asset value in this section refer to Transactional NAV from time to time. If the aggregate amount of distributions exceeds the

(net asset value), which may differ from GAAP Net Assets (net assets).


portion of net income and net realized capital gains, the excess will semi-annual and June 30, 2015 annual financial statements will includeconstitute a return of capital. The Manager does not believe that the an opening Statement of Net Assets as at July 1, 2013 (‘‘the transitionreturn of capital distributions made by the Fund have a meaningful date’’), and comparative financial information prepared in accordanceimpact on the Fund’s ability to implement its investment strategy or to with IFRS.fulfill its investment objective.

In addition, on May 12, 2011, the International Accounting StandardsThe Fund’s net asset value decreased by 9.4% to $75.5 million at Board (‘‘IASB’’) issued IFRS 13 – ‘‘Fair Value Measurement’’, whichJune 30, 2013, from $83.3 million at June 30, 2012. The decrease is defines fair value, sets out a single IFRS framework for measuring fairattributed to cash distributions of $10.6 million, repurchase and value and requires disclosure about fair value measurements. It onlycancellation of trust units of $3.2 million, offset by investment applies when other IFRS standards require or permit fair valueperformance of $6.0 million. The investment performance of the Fund measurement. If an asset or a liability measured at fair value has a bidincludes earned income and expenses which vary year over year due to price and an ask price, it requires valuation to be based on a price withinportfolio activity. The Fund’s expenses decreased as compared to the the bid-ask spread that is most representative of fair value. It allows theprevious year mainly as a result of changes in average net assets and use of mid-market pricing or other pricing conventions that are used byportfolio activity. Income decreased as compared to the previous year market participants as a practical expedient for fair value measurementsdue to changes in the Fund’s income earning investments. within a bid-ask spread. This may result in eliminating the difference

between the net asset value per unit and net assets per unit undercurrent Canadian GAAP.BorrowingFurthermore, in October 2012, the IASB issued Investment EntitiesFor the period ended June 30, 2013, the Fund’s highest and lowest bank(Amendments to IFRS 10 – ‘‘Consolidated Financial Statements’’,borrowings were $312,000 (June 30, 2012 – $150,000) and nilIFRS 12 – ‘‘Disclosure of Interests in Other Entities’’ and IAS 27 –(June 30, 2012 – nil) respectively. The average interest rate on the‘‘Separate Financial Statements’’), which define an investment entity andoutstanding balances during the period was 3.3% (June 30, 2012 –introduce an exception to the consolidation requirements. The3.3%). As at June 30, 2013 the Fund had not entered into any suchamendments require an investment entity to measure investments intransactions.most controlled subsidiaries at fair value through profit or loss inaccordance with IFRS 9 – ‘‘Financial Instruments’’. The amendmentsRecent Developmentsalso introduce new disclosure requirements for these entities and apply

Harmonized Sales Tax for annual periods beginning on or after January 1, 2014.On August 26, 2011, a majority of voters in a British Columbia

The Manager has developed a changeover plan to meet thereferendum opted to eliminate the application of harmonized sales taximplementation date published by the AcSB. The key elements of the(‘‘HST’’) in that province. Effective April 1, 2013 the government ofplan include identifying differences between the Fund’s currentBritish Columbia phased out the HST and returned to its former systemaccounting policies and those the Fund expects to apply under IFRS, asof the federal goods and services tax (‘‘GST’’) and provincial saleswell as any accounting policy and implementation decisions and theirtax (‘‘PST’’).resulting impact, if any, on the net assets or net asset value of the Fund.

In addition, effective April 1, 2013, the government of Prince EdwardBased on the Manager’s analysis to date, there will likely be no materialIsland harmonized its PST with the federal HST at a combined rateimpact to the net asset value per unit of each series of the Fund due toof 14%.the changeover to IFRS. The major qualitative changes that will result

Furthermore, the government of Quebec harmonized certain aspects of from the adoption of IFRS will be fair valuation, the addition of cash flowthe Quebec sales tax (‘‘QST’’) with the HST effective January 1, 2013, statements, the classification of net assets representing unitholders’subject to certain transitional rules. As a result of the harmonization, the equity, and additional note disclosures. However, this presentFund’s overall tax burden may increase. Among other things, financial determination is subject to change resulting from the issuance of newservices are now generally exempt from QST rather than being standards or new interpretations of existing standards.zero-rated, such that QST payable by the Fund, for instance on

Proposed Liquidity Eventmanagement fees and other fees, are no longer refundable. As ofOn May 29, 2012, the Manager announced its intention to implement aJanuary 1, 2013, the QST is calculated on the selling price not includingliquidity event in the Fund. The liquidity event may be in the form of aGST. However, to ensure the total taxes payable remain the same, theconversion of the Fund to an open-end mutual fund, a transfer orQST rate has been increased to 9.975%. The combined GST/QST ratemerger of units of the Fund to an open-end mutual fund, or ais 14.975%.termination of the Fund, and is expected to occur on or about June 30,

International Financial Reporting Standards 2014, subject to receipt of all necessary approvals.On December 12, 2011, the Canadian Accounting Standards Board(‘‘AcSB’’) extended the deferral of the mandatory International Financial Related Party TransactionsReporting Standards (‘‘IFRS’’) changeover date for investment entities

The Manager is an indirectly wholly-owned subsidiary of Scotiabank andto fiscal years beginning on or after January 1, 2014. Consequently, theis a related party to the Fund. Scotiabank owns a significant interest inFund will adopt IFRS beginning July 1, 2014 and will publish the firstCI Financial Corp. and owns, directly or indirectly, 100% of Scotiafinancial statements, prepared in accordance with IFRS, for the

semi-annual period ending December 31, 2014. The December 31, 2014


Capital Inc. (‘‘Scotia Capital’’). CI Financial Corp. and Scotia Capital are committee (the ‘‘IRC’’) was appointed by the Manager and becamerelated parties to the Fund. operational in 2007. Costs and expenses, including the remuneration of

IRC members, the costs of legal and other advisors to, and legal andThe following arrangements listed below are considered related party other services for, IRC members, and insurance costs are chargeable totransactions: the Fund. As at June 30, 2013, the IRC consisted of four members, all of

whom are independent of the Manager.Management FeesThe Fund pays the Manager a management fee for the continuous The Fund received the following standing instructions from the IRC withadvice, recommendations and services provided to the Fund. The respect to related party transactions.Manager is also responsible for the Fund’s day-to-day operations. The

(i) paying brokerage commissions to Scotia Capital for effectingFund incurred a management fee, inclusive of sales tax, of $1.3 millionsecurity transactions on an agency and principal basis on behalf of(June 30, 2012 – $1.6 million).the Fund (referred to as ‘‘Related Brokerage Commissions’’);

Administrative Fee(ii) purchases or sales of securities of an issuer from or to anotherThe Fund also pays the Manager an annual administrative fee to cover

investment fund managed by the Manager (referred to asthe costs to the Manager incurred in identifying and evaluating potential‘‘Inter-Fund Trades’’);investments for the Portfolio. The administrative fee for the Fund is an

annualized rate of 1.00% based on the net asset value of the Fund and is (iii) investments in the securities of issuers for which Scotia Capitalaccrued daily and paid monthly. Effective October 1, 2011, the Manager acted as an underwriter during the distribution of such securitiesimplemented a temporary waiver, reducing the annual administrative fee and the 60-day period following the completion of suchto 0.50% of the net asset value of the Fund for a period of two years. distribution (referred to as ‘‘Underwriting of Securities’’);The Fund paid the Manager an administrative fee, inclusive of sales tax,

(iv) executing foreign exchange transactions with Scotia Capital onof $448,000 (June 30, 2012 – $703,000).behalf of the Fund; and

Operating Expenses and Administrative Services (v) purchases of securities of Scotiabank and CI Financial Corp.The Fund is responsible for operating expenses relating to the carrying

The applicable standing instructions require that the Manager establishon of its business, including custodial services, legal, Independentpolicies and procedures that it will follow with respect to related partyReview Committee fees, audit fees, interest and administrative costs astransactions. The Manager is required to advise the IRC of any materialwell as the cost of financial and other reports in compliance with allbreach of a condition of the standing instructions. The standingapplicable laws, regulations and policies. Such expenses are calculatedinstructions require, among other things, that the investment decision inand accrued daily based on the average net asset value of each series.respect to a related party transaction: (a) is made by the Manager freeThe Manager pays for such expenses on behalf of the Fund, except forfrom any influence by an entity related to the Manager and withoutcertain expenses such as interest and taxes, and is then reimbursed bytaking into account any consideration to any associate or affiliate of thethe Fund. In addition, the Fund paid the Manager $65,000 (June 30,Manager; (b) represents the business judgment of the Manager2012 – $185,000) for administrative services performed by the Manageruninfluenced by considerations other than the best interests of theduring the period.Fund; and (c) is made in compliance with the Manager’s written policies

Management Incentive Fees and procedures. Transactions made by the Manager under the standingThe Manager is entitled to an annual performance bonus instructions are subsequently reviewed by the IRC to monitor(the ‘‘management incentive fee’’) based on the performance of the compliance. The IRC prepares and files a report to unitholders eachFund, as described in the Fund’s simplified prospectus. Management fiscal year.incentive fees are calculated on a fiscal year basis. As at June 30, 2013,

The Fund did not rely on an IRC standing instruction regarding relatedthe Fund accrued a management incentive fee, inclusive of sales tax, ofparty transactions during the period.nil (June 30, 2012 – nil).

Standing Instructions from the Independent Review CommitteePursuant to National Instrument 81-107 – ‘‘Independent ReviewCommittee for Investment Funds’’ (‘‘NI 81-107’’), an independent review

Financial Highlights

The following tables show selected key financial information about the Fund and are intended to help you understand the Fund’s financial performancefor the periods indicated. The information on the following table is based on prescribed regulations and as a result, is not expected to add down dueto the increase (decrease) in net assets from operations being based on average units outstanding during the period and all other numbers beingbased on actual units outstanding at the relevant point in time.


The Fund’s Net Assets per Trust Unit (1)

(commencement of operations August 14, 2007)June 30, June 30, June 30, June 30, June 30,

2013 2012 2011 2010 2009Net assets, beginning of period(1)(2) $3.93 $5.87 $6.15 $5.41 $7.11Increase (decrease) in net assets from operations:

Total revenue $0.06 $0.07 $0.10 $0.08 $0.08Total expenses (0.11) (0.14) (0.22) (0.20) (0.18)Realized gain (loss) for the period 0.08 (1.14) (0.20) (0.11) (3.00)Unrealized gain (loss) for the period 0.27 (0.29) (0.02) 0.95 1.33

Total increase (decrease) in net assets from operations(2) $0.30 $(1.50) $(0.34) $0.72 $(1.77)Distributions to unitholders:

From income (excluding dividends) $– $– $– $– $–From dividends – – – – –From net realized gain (loss) on investments – – – – –From return of capital (0.52) (0.52) – – –

Total annual distributions(2)(3) $(0.52) $(0.52) $– $– $–

Net assets, end of period(1)(2) $3.72 $3.93 $5.87 $6.15 $5.41

Ratios and Supplemental DataTotal net asset value (in 000s)(7) $75,546 $83,313 $132,790 $143,585 $130,037Number of Trust Units outstanding 20,278,047 21,197,147 22,560,654 23,313,554 23,939,754Management fee 1.50% 1.50% 1.50% 1.50% 1.50%Management expense ratio (‘‘MER’’)(4) 2.62% 2.73% 3.25% 3.11% 3.31%MER before waivers or absorptions(4) 2.63% 2.73% 3.25% 3.11% 3.31%Trading expense ratio(5) 0.15% 0.29% 0.19% 0.26% 0.47%Portfolio turnover rate(6) 15.83% 19.38% 22.06% 25.29% 70.04%Net asset value per Trust Unit (‘‘NAVPU’’)(7) $3.72 $3.93 $5.89 $6.15 $5.43Closing market price(8) $3.40 $3.33 $4.20 $4.32 $5.01Premium/(discount) of market price to NAVPU (8.60)% (15.27)% (28.69)% (29.76)% (7.73)%(1) This information is derived from the Fund’s audited financial statements. Net assets per Trust Unit presented in the financial statements may differ from net asset value calculated for

pricing purposes. An explanation of these differences can be found in the notes to the financial statements. Some of the nil balances reported in the Financial Highlights may includeamounts that are rounded to zero.

(2) Net assets per Trust Unit and distributions per Trust Unit are based on the actual number of Trust Units outstanding at the relevant time. The increase (decrease) in net assets fromoperations per Trust Unit is based on the weighted average number of Trust Units outstanding over the fiscal period.

(3) Distributions are automatically reinvested in additional Trust Units of the Fund, unless the Trust Unitholder withdraws from the automatic reinvestment plan by providing written notice tothe Manager.

(4) The management expense ratio (‘‘MER’’) is based on the total expenses (excluding commissions and other portfolio transaction costs) of the Fund and the underlying funds, whereapplicable, for the stated period expressed as an annualized percentage of daily average net asset value during the period. The following MER statistics for June 30, 2013 (June 30, 2012)are presented for information purposes:

June 30, June 30,(percent %) 2013 2012

MER excluding performance fees 2.62 2.73MER excluding performance fees and sales tax 2.41 2.51

(5) The trading expense ratio (‘‘TER’’) represents total commissions and other portfolio transaction costs of the Fund and the underlying funds, where applicable, expressed as an annualizedpercentage of daily average net asset value of the Fund during the period.

(6) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to an investmentfund buying and selling all of the securities in its portfolio once in the course of the fiscal period. The higher the portfolio turnover rate in a period, the greater the trading costs payable byan investment fund in the period, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rateand the performance of an investment fund. The portfolio turnover rate is calculated by dividing the lesser of the cost of purchases and the proceeds of sales of portfolio securities for theperiod, excluding any portfolio re-balancing transactions following a merger and short-term investments maturing in less than one year, by the average market value of investments duringthe period.

(7) National Instrument 81-106 – ‘‘Investment Fund Continuous Disclosure’’ (‘‘NI 81-106’’) requires all investment funds to calculate net asset value for all purposes other than for financialstatements in accordance with part 14.2, which differs in some respects from the requirements of Section 3855 of Canadian GAAP. Canadian GAAP includes the requirement that the fairvalue of financial instruments listed on a recognized public stock exchange be valued at their last bid price for securities held in a long position and at their last ask price for securities heldin a short position, instead of their close price or the last sale price of the security for the day as required by NI 81-106. This results in differences between net assets calculated based onCanadian GAAP (‘‘GAAP Net Assets’’) and net asset value calculated based on NI 81-106 (‘‘Transactional NAV’’). A reconciliation between GAAP Net Assets and Transactional NAV isprovided below.

(8) Closing market price is as per the Toronto Stock Exchange on the last business day of the period.

15AUG201301173499 15AUG201301173657


Reconciliation of GAAP Net Assets and Transactional NAVTotal Per

($000’s) Unit ($)

Transactional NAV (net asset value) 75,546 3.72Application of Section 3855 adjustment (84) –GAAP Net Assets (net assets) 75,462 3.72

Management FeeThe management fee for the Fund is an annualized rate based on the net asset value of the Fund and is accrued daily and paid monthly as apercentage of the month end net assets.

Of the management fees incurred by the Fund 100% was used to pay for portfolio advisory services.

Past PerformanceThe following shows the past performance for the Fund and will not necessarily indicate how the Fund will perform in the future. The informationshown assumes that distributions made by the Fund in the periods shown were reinvested in additional Trust Units of the Fund. In addition, theinformation does not take into account sales, redemption, distribution or other optional charges that would have reduced returns or performance.

Year-by-Year ReturnsThe following charts show the annual performance for the Fund and illustrates how the Fund’s performance has varied from year to year. The chartsshow, in percentage terms, how much an investment held on the first day of each fiscal year would have increased or decreased by the last day ofeach fiscal year for the Fund.

As a closed-end investment trust, the Fund does not continuously distribute its Trust Units at their net asset value (‘‘NAVPU’’). Currently the Fund’sTrust Units are listed on the Toronto Stock Exchange, therefore, for comparison purposes, the annual performance for the Fund has been calculatedbased on the Fund’s NAVPU as well as the TSX market price.

for fiscal years ended June 30)

Returns based on NAVPU Returns based on TSX Market Price20.0%

2004

2005

2006

2007

2008

2009

2010

2011

2012

10.0%

0.0%

-10.0%

-30.0%

-20.0%

2013

(24.9)

13.4

(4.4) (24.7)

8.4

(27.7)(1)

30.0%

20.0%

2004

2005

2006

2007

2008

2009

2010

2011

2012

10.0%

0.0%

-10.0%

-30.0%

-20.0%

2013

(19.2) (13.8) (2.8) (8.6)

17.7

(28.7)(1)

(1) Since inception to the fiscal year end.

Annual Compound ReturnsThe annual compound returns table compares the Fund’s performance to one or more benchmarks. Benchmarks are usually an index or a compositeof more than one index. An index is generally made up of a group of securities. Since the Fund does not necessarily invest in the same securities asan index or in the same proportion, the Fund’s performance is not expected to equal the performance of the index. It may be more helpful to comparethe Fund’s performance to that of other mutual funds with similar objectives and investment disciplines.

The following table shows for the Fund the annual compound return for each period indicated compared with the following benchmarks:

MSCI World Index (C$) – This is a free float-adjusted market capitalization index that is designed to measure global developed market equityperformance.

BSE Sensex 30 Index (C$) – This is a capitalization-weighted index made up of equities on the Bombay Stock Exchange selected on the basis ofliquidity, depth, and floating-stock-adjusted depth and industry representation.

A discussion of the performance of the Fund as compared to its benchmarks is found in the Results of Operations section of this report.

One Three Five SincePercentage Return: Year Years Years InceptionTrust Unit (NAVPU) 8.4 (7.9) (7.8) (11.7)Trust Unit (TSX Market Price) 17.7 1.5 (6.1) (10.5)MSCI World Index (C$) 22.3 13.4 3.3 0.7BSE Sensex 30 Index (C$) 7.7 (4.1) 2.9 (1.2)


Summary of Investment Portfolio

The Summary of Investment Portfolio may change due to ongoing portfolio transactions. Updates are available quarterly on our website atwww.dpfopportunities.com 60 days after quarter end, except for June 30, which is the fiscal year end, when they are available after 90 days.

Percentage of Total Percentage of TotalBY COUNTRY/REGION(1) Net Asset Value† BY ASSET TYPE Net Asset Value†

India 98.8 Equities 98.8Cash and Cash Equivalents (Bank Overdraft) 4.3 Cash and Cash Equivalents (Bank Overdraft) 4.3United States** 0.0 Other Net Assets (Liabilities) (3.1)

Percentage of Total Percentage of TotalBY INDUSTRY(1)(2) Net Asset Value† TOP 25 HOLDINGS Net Asset Value†

Financials 30.3 ITC Limited 12.3Consumer Staples 24.7 Dabur India Limited 8.4Information Technology 14.0 Infosys Limited 7.6Consumer Discretionary 13.3 Lupin Limited 7.2Health Care 8.0 HDFC Bank Limited 7.0Energy 7.1 ICICI Bank Limited, Sponsored ADR 6.9Cash and Cash Equivalents (Bank Overdraft) 4.3 Axis Bank Limited 6.1Materials 1.4 Tata Consultancy Services Limited 5.9

Housing Development Finance Corporation Limited 5.0Oil and Natural Gas Corporation Limited 4.5Cash and Cash Equivalents (Bank Overdraft) 4.3Mahindra & Mahindra Limited 3.2Zee Entertainment Enterprises Limited 3.0Coal India Limited 2.7Emami Limited 2.6State Bank of India 2.6Maruti Suzuki India Limited 2.5Tata Motors Limited 1.8Jubilant FoodWorks Limited 1.8Gujarat State Fertilizers & Chemicals Limited 1.4Bank of Baroda 1.4Emami Limited, Bonus Shares 1.3Punjab National Bank 1.3Bajaj Electricals Limited 1.0Jubilant Life Sciences Limited 0.8

(1) Excludes other net assets (liabilities) and derivatives.(2) Excludes bonds and debentures.† This refers to transactional net asset value; therefore weightings presented in the Statement of Investments will differ from the ones disclosed above.** Percentage of total net asset value is less than 0.05%.


Caution regarding forward-looking statements

Certain portions of this report, including, but not limited to, ‘‘Recent Developments’’, may contain forward-looking statements about the Fund and the Underlying Funds, asapplicable, including statements with respect to strategies, risks, expected performance events and conditions. Forward-looking statements include statements that are predictive innature, that depend upon or refer to future events or conditions, or that include words such as ‘‘expects’’, ‘‘anticipates’’, ‘‘intends’’, ‘‘plans’’, ‘‘believes’’, ‘‘estimates’’, ‘‘projects’’ andsimilar forward-looking expressions or negative versions thereof.

In addition, any statement that may be made concerning future performance, strategies or prospects and possible future action by the Fund is also a forward-looking statement.Forward-looking statements are based on current expectations and projections about future general economic, political and relevant market factors, such as interest rates, foreignexchange rates, equity and capital markets, and the general business environment, in each case assuming no changes to applicable tax or other laws or government regulation.Expectations and projections about future events are inherently subject to, among other things, risks and uncertainties, some of which may be unforeseeable. Accordingly, currentassumptions concerning future economic and other factors may prove to be incorrect at a future date.

Forward-looking statements are not guarantees of future performance and actual results or events could differ materially from those expressed or implied in any forward-lookingstatements made by the Fund. Any number of important factors could contribute to these digressions, including, but not limited to, general economic, political and market factorsin North America and internationally, such as interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes ingovernment relations, unexpected judicial or regulatory proceedings and catastrophic events. We stress that the above mentioned list of important factors is not exhaustive. Someof these risks, uncertainties and the other factors are described in the Fund’s annual information form under the heading ‘‘Risk Factors’’.

We encourage you to consider these and other factors carefully before making any investment decisions. Forward-looking statements should not be unduly relied upon. Further,you should be aware of the fact that the Fund has no specific intention of updating any forward-looking statements whether as a result of new information, future events orotherwise, prior to the release of the next Management Report of Fund Performance, and that the forward-looking statements speak only to the date of this management report offund performance.

DPF India Opportunities FundSTATEMENT OF INVESTMENTSAs at June 30, 2013

Par Value (000s)/ Average FairNumber of Cost† Value

Shares/Units (000s) (000s)

EQUITIES (98.8%)India (98.8%)Axis Bank Limited 197,000 $3,836 $4,604Bajaj Electricals Limited 258,254 1,501 791Bank of Baroda 103,500 1,294 1,050Coal India Limited 377,100 2,445 2,006Dabur India Limited 2,299,000 5,025 6,341Emami Limited 237,100 2,074 1,988Emami Limited, Bonus Shares 118,550 – 994Gujarat State Fertilizers & Chemicals Limited 984,000 1,177 1,052HDFC Bank Limited 447,200 4,522 5,265Housing Development Finance Corporation Limited 246,200 2,576 3,757ICICI Bank Limited, Sponsored ADR 129,700 4,835 5,217Infosys Limited 130,000 4,778 5,710ITC Limited 1,629,300 3,730 9,275Jubilant FoodWorks Limited 73,900 1,144 1,360Jubilant Life Sciences Limited 272,988 2,145 629Lupin Limited 395,100 4,188 5,433Mahindra & Mahindra Limited 139,000 1,157 2,382Maruti Suzuki India Limited 68,700 2,082 1,862Oil and Natural Gas Corporation Limited 576,900 4,093 3,383Punjab National Bank 83,668 1,427 969State Bank of India 56,400 1,721 1,950Tata Consultancy Services Limited 165,000 3,637 4,436Tata Motors Limited 280,500 1,459 1,377Wipro Limited 70,412 659 433Zee Entertainment Enterprises Limited 548,000 2,238 2,279

63,743 74,543United States (0.0%)GeoGlobal Resources Inc. 230,340 592 7AVERAGE COST AND FAIR VALUE OF INVESTMENTS (98.8%) 64,335 74,550TRANSACTION COSTS (0.0%) (Note 2) (248) –TOTAL AVERAGE COST AND FAIR VALUE OF INVESTMENTS (98.8%) 64,087 74,550UNREALIZED GAIN ON FORWARD CURRENCY CONTRACTS (0.0%) – –UNREALIZED LOSS ON FORWARD CURRENCY CONTRACTS (0.0%) – –UNREALIZED GAIN (LOSS) ON OTHER DERIVATIVES (0.0%) – –CASH AND CASH EQUIVALENTS (BANK OVERDRAFT) (4.3%)Canadian 113 113Foreign 3,383 3,168

3,496 3,281OTHER NET ASSETS (LIABILITIES) (–3.1%) (2,369) (2,369)NET ASSETS (100.0%) $65,214 $75,462

Average cost or fair values of some securities may include non-zero amounts that are rounded to zero.† Where applicable, distributions received from holdings as a return of capital are used to reduce the adjusted cost base of the securities in the portfolio.

Portfolio ConcentrationAs a Percentage of Net Assets (%) June 30, 2013 June 30, 2012EQUITIES 98.8 86.9India 98.8 82.9United States 0.0 4.0CASH AND CASH EQUIVALENTS (BANK OVERDRAFT) 4.3 16.1

The accompanying notes are an integral part of these financial statements.

DPF India Opportunities FundDISCUSSION ON FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTSAs at June 30, 2013

Risk Management

DPF India Opportunities Fund (the ‘‘Fund’’) seeks to enhance the value of the Trust Units primarily through capital appreciation driven by an activelymanaged, diversified investment portfolio, being securities of: (a) predominantly public issuers that operate primarily in India; (b) up to 20% inprivate issuers operating primarily in India and which, in the view of the portfolio advisor, are potential takeover targets or are likely to becomepublicly listed; and (c) issuers located outside of India that are seeking to capitalize on potential commercial and investment opportunities that may beor become available in India.

The investment activities of the Fund expose it to a variety of financial risks (for a general discussion of these risks see Note 9 of the financialstatements). The Statement of Investments of the Fund groups the securities held by asset type, geographic region and/or market segment. TheManager seeks to minimize potential adverse effects of these risks on the Fund’s performance by employing and overseeing professional andexperienced portfolio advisors that regularly monitor the Fund’s optimal asset mix and market events, as well as diversify the investment portfoliowithin the constraints of the investment objective.

To assist in managing risks, the Manager has established and maintains a governance structure that oversees the Fund’s investment activities andmonitors compliance with the Fund’s stated investment objectives and guidelines. Significant risks that are relevant to the Fund are discussed below.

Credit RiskThe Fund had no significant exposure to debt instruments or derivatives as at June 30, 2013 and June 30, 2012. In addition, all investmenttransactions are executed by brokers with an approved credit rating. As such the risk of default on transactions with counterparties and brokersrelated to purchase and sale of securities is considered minimal. In instances where the credit rating were to fall below the approved rating, theManager would take appropriate action.

Interest Rate RiskThe majority of the Fund’s financial assets and liabilities were non-interest bearing as at June 30, 2013 and June 30, 2012. Accordingly, the Fund isnot directly subject to significant risk due to fluctuations in the prevailing levels of market interest rates.

Other Price RiskOther price risk is the risk that the fair value of financial instruments will fluctuate as a result of changes in market prices (other than those arisingfrom interest rate risk or currency risk) caused by factors specific to a security, its issuer or all factors affecting a market or a market segment.Exposure to other price risk is mainly in equities and commodities, if applicable. As at June 30, 2013, approximately 99% (June 30, 2012 – 87%) ofthe Fund’s net assets were exposed to other price risk. If prices of these investments had decreased or increased by 5%, with all other variables heldconstant, net assets would have decreased or increased, respectively, by approximately $3,728,000 (June 30, 2012 – $3,617,000). In practice, actualresults will differ from this sensitivity analysis and the difference could be material.

Currency RiskThe Fund held financial instruments denominated in currencies other than the Canadian dollar, the functional currency, including the underlyingprincipal amounts of forward currency contracts and foreign cash and cash equivalents, if applicable. Therefore the Fund is exposed to currency riskas the value of the securities denominated in other currencies will fluctuate due to changes in foreign exchange rates. Major currencies the Fund hadexposure to as at June 30, 2013 and June 30, 2012 are as follows:

Percentage of Net Assets

Currency June 30, 2013 June 30, 2012Indian Rupee 96.5 82.0US Dollar 7.0 12.4Total 103.5 94.4

If the Canadian dollar strengthened or weakened by 1% in relation to all other currencies, with all other variables held constant, net assets of the Fundwould have decreased or increased, respectively, by approximately $781,000 (June 30, 2012 – $786,000). In practice, actual results will differ fromthis sensitivity analysis and the difference could be material.


DPF India Opportunities FundDISCUSSION ON FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (cont’d)As at June 30, 2013

Liquidity RiskThe table below summarizes the maturity analysis of cash flows associated with the Fund’s financial liabilities.

June 30, 2013 June 30, 2012

(In 000’s) Less than 3 months Less than 3 monthsAccounts payable and accrued liabilities $2,776 $3,014Total Financial Liabilities $2,776 $3,014

Financial Instruments

Fair Value HierarchyThe following table summarizes the fair value hierarchy of the Fund’s financial assets and liabilities (‘‘financial instruments’’) as at June 30, 2013 andJune 30, 2012. Commodities are not considered financial instruments and are therefore excluded from the table. Further details of the requireddisclosures are provided in Note 8 of the financial statements.

June 30, 2013 June 30, 2012

(In 000’s) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 TotalEquities $5,224 $69,326 $– $74,550 $4,518 $67,815 $– $72,333Preferred shares – – – – – – – –Bonds and debentures – – – – – – – –Underlying funds – – – – – – – –Warrants – – – – – – – –Purchased options – – – – – – – –Total Investments 5,224 69,326 – 74,550 4,518 67,815 – 72,333Short-term investments – – – – – – – –Derivative assets – – – – – – – –Derivative liabilities – – – – – – – –Total Financial Instruments $5,224 $69,326 $– $74,550 $4,518 $67,815 $– $72,333

Transfers Between LevelsDuring the years ended June 30, 2013 and June 30, 2012, there were no transfers between Level 1 and Level 2.


DPF India Opportunities FundSTATEMENTS OF NET ASSETS STATEMENTS OF OPERATIONSAs at For the periods ended (Note 1)

(in 000s of Canadian dollars June 30, June 30, (in 000s of Canadian dollars June 30, June 30,except number of units and per unit amounts) 2013 2012 except per unit amounts) 2013 2012

Investment incomeAssetsInterest $2 $–Investments, at fair value* $74,550 $72,333Dividends 1,173 1,442Cash and short-term investments 3,281 13,437Foreign withholding taxes – –Receivable for investment securities sold – 9

Subscriptions receivable – – 1,175 1,442Accrued interest, dividends and other 407 476 Expenses (Note 4)

78,238 86,255 Management fees 1,344 1,630Management incentive fees – –LiabilitiesDirectors’ and trustees’ fees 1 2Bank overdraft (Note 10) – –Independent Review Committee fees 1 1Repurchased Trust Units payable – 55Unitholder reporting costs 20 18Payable for investment securities purchased – 73Unitholder administration costs 571 923Redemption payable – –Custodian fees and bank charges 190 183Management fee payable 103 113Interest expense (Note 10) 1 5Management incentive fee payable – –Audit fees 8 9Accrued expenses 37 15Legal fees 4 2Distributions payable to unitholders 2,636 2,758Filing fees 26 202,776 3,014Transaction costs (Note 2) 124 302Net assets – representing unitholders’

2,290 3,095equity (Note 5) $75,462 $83,241Expenses absorbed by the Manager (9) –

Unitholders’ capital (Note 5) $173,019 $191,7582,281 3,095Retained earnings (accumulated deficit)

Net investment income (loss) (1,106) (1,653)(Note 5) (97,557) (108,517)Realized and unrealized gain (loss) on$75,462 $83,241

investmentsNet realized gain (loss) on sale of*Investments, at cost $64,087 $67,662

investments 1,706 (23,917)Net realized and change in unrealized foreignNumber of units outstanding (Note 5) 20,278,047 21,197,147

exchange gain (loss) (374) (1,159)Change in unrealized appreciationNet assets per Trust Unit (Note 2) $3.72 $3.93

(depreciation) in value of investments 5,792 (6,278)Net gain (loss) on investments 7,124 (31,354)Increase (decrease) in net assets from

operations $6,018 $(33,007)

Increase (decrease) in net assets fromoperations per Trust Unit (Note 2) $0.30 $(1.50)


DPF India Opportunities FundSTATEMENTS OF CHANGES IN NET ASSETS STATEMENTS OF CASH FLOWSFor the periods ended (Note 1) For the periods ended (Note 1)

June 30, June 30, June 30, June 30,(in 000s of Canadian dollars) 2013 2012 (in 000s of Canadian dollars) 2013 2012

Net assets, beginning of period $83,241 $132,413 Cash flows from operating activities:Net investment income (loss) $(1,106) $(1,653)Increase (decrease) in net assets from

operations 6,018 (33,007) Changes in non-cash working capital:(Increase) decrease in subscriptionsDistributions to unitholders

receivable – –From net investment income – –(Increase) decrease in accrued interest,From net realized gain on investments – –

dividends and other 69 386From return of capital (10,634) (11,326)Increase (decrease) in other payables 12 (204)(10,634) (11,326)(Increase) decrease in receivable forCapital transactions (Note 5) investments securities sold 9 (9)Proceeds from issue – – Increase (decrease) in payable onReinvested distributions – – investments securities purchased (73) 73Purchase and cancellation of Trust Units (3,163) (4,839) (Investments purchased and purchases toPayments on redemption – – cover short positions) (12,915) (19,694)

(3,163) (4,839) Proceeds from sale of investments andIncrease (decrease) in net assets (7,779) (49,172) investments sold short 18,196 48,534Net assets, end of period $75,462 $83,241 Increase (decrease) in interest and dividend

payable on investments sold short – –Net cash provided by (used in) operating

activities 4,192 27,433

Cash flows from financing activities:Proceeds from issue – –Increase (decrease) in repurchased Trust

Units payable (55) (219)Purchase and cancellation of Trust Units (3,163) (4,839)Distributions to unitholders (10,756) (8,568)Net cash provided by (used in) financing

activities (13,974) (13,626)Net cash provided (used) during the period (9,782) 13,807

Cash and cash equivalents (Bankoverdraft), beginning of period 13,437 789

Net realized and change in unrealized foreignexchange gain (loss) (374) (1,159)

Cash and cash equivalents (Bankoverdraft), end of period $3,281 $13,437

Cash flows from operating activitiesinclude:

Interest paid $(1) $(5)Interest received 2 –Dividends received 1,173 1,442

Cash and cash equivalents are comprised of:Cash (bank overdraft) $3,281 13,437Short-term investments – –

$3,281 $13,437


DPF India Opportunities FundNOTES TO THE FINANCIAL STATEMENTSFor the periods indicated in Note 1

1. The Fund

a) Formation

DPF India Opportunities Fund (the ‘‘Fund’’) is a closed-ended investment trust established under the laws of the Province of Ontario by Declaration ofTrust and commenced operations on August 14, 2007. GCIC Ltd. is the manager (the ‘‘Manager’’) of the Fund.

b) Financial Reporting Dates

The Statement of Investments is as at June 30, 2013. The Statements of Net Assets are as at June 30, 2013 and June 30, 2012. The Statements ofOperations, Changes in Net Assets and Cash Flows are for the years ended June 30, 2013 and June 30, 2012.

Throughout this document, reference to the periods refers to the reporting periods described above.

c) Transactions of the Manager

All directors, officers and employees (‘‘Employees’’) of the Manager are subject to its Code of Ethics and Standards of Professional Conduct(the ‘‘Code’’). The Code has been put in place to protect the interests of all investors of the Fund. The Board of Directors of the Manager and the Boardof Governors of the Fund have reviewed and approved the Code. The Code includes a Trading Policy that Employees must adhere to.

2. Summary of Significant Accounting Policies and Basis of Presentation

The financial statements of the Fund are prepared in accordance with Canadian generally accepted accounting principles (‘‘Canadian GAAP’’). Thefollowing is a summary of significant accounting policies used by the Fund:

a) Use of Estimates

The preparation of the financial statements in accordance with Canadian GAAP requires the Manager to make estimates and assumptions that affectthe reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during thereporting period. These estimates are made based on information available as at the date of issuance of the financial statements. Actual results couldmaterially differ from those estimates.

Key areas of estimation, where the Manager has made complex or subjective judgments, include the determination of fair values of financialinstruments and derivatives that are not quoted in an active market. The use of valuation techniques for financial instruments and derivatives that arenot quoted in an active market requires the Manager to make assumptions that are based on market conditions existing as at the date of the financialstatements. Changes in these assumptions as a result of changes in market conditions could affect the reported fair value of financial instruments andderivatives.

b) Valuation of Investments

In accordance with Section 3855, ‘‘Financial Instruments – Recognition and Measurement’’, the Fund’s investments are deemed to be categorized asheld for trading and are required to be recorded at fair value. The main impact of Section 3855 relates to the determination of the fair value of financialinstruments listed on an active market with the bid price for a long position and the ask price for a short position instead of the closing price.

National Instrument 81-106 – ‘‘Investment Fund Continuous Disclosure’’ (‘‘NI 81-106’’) requires all investment funds to calculate net asset value forall purposes other than for financial statements in accordance with part 14.2, which differs in some respects from the requirements of Section 3855of Canadian GAAP. Canadian GAAP includes the requirement that the fair value of financial instruments listed on a recognized public stock exchangebe valued at their last bid price for securities held in a long position and at their last ask price for securities held in a short position, instead of theirclose price or the last sale price of the security for the day as required by NI 81-106. This results in differences between net assets calculated basedon Canadian GAAP (‘‘GAAP Net Assets’’) and net asset value calculated based on NI 81-106 (‘‘Transactional NAV’’). A reconciliation between GAAPNet Assets per unit and Transactional NAV per unit is provided in Note 6.

The fair value of the Fund’s investments as at the financial reporting date is determined as follows:

i) All long securities listed on a recognized public stock exchange are valued at their last bid price. All short securities listed on a recognized publicstock exchange are valued at the last ask price. Securities that are traded on an over-the-counter market basis are valued at the last bid price orask price as quoted by a major dealer.

Investments in securities having no quoted market values or in illiquid securities are valued using valuation techniques. Valuation techniquesinclude, but are not limited to, referencing the current value of similar instruments, using recent arm’s length market transactions, discountedcash flow analyses or other valuation models.

The fair value of certain securities may be estimated using valuation techniques based on assumptions that are not supported by observablemarket inputs. In a situation where, in the opinion of the Manager, a market quotation for a security is inaccurate, not readily available or doesnot accurately reflect fair value, the fair value is determined by the Manager.

DPF India Opportunities FundNOTES TO THE FINANCIAL STATEMENTS (cont’d)For the periods indicated in Note 1

2. Summary of Significant Accounting Policies and Basis of Presentation (cont’d)

ii) Bonds and debentures are valued at their last evaluated bid price received from recognized investment dealers for long positions and their lastevaluated ask price for short positions.

iii) Investments in underlying funds are valued at the series’ net asset value per Trust Unit. If the net asset value is unavailable, the investment fundholdings are valued using the last published net asset value or at the fair value as determined by the Manager.

iv) Short-term securities are valued using market quotations or amortized cost plus accrued interest, both of which approximate fair value.

v) Unlisted warrants are valued based on a pricing model which considers factors such as the market value of the underlying security, strike price,volatility and terms of the warrant.

vi) Forward contracts are marked to market using the last bid price for long positions and the last ask price for short positions. Last trade price isused where bid and ask prices are not available.

vii) The fair value of swap contracts is the estimated amount that the Funds would receive or pay to terminate the swap, based on the current valueof the underlying interest on the valuation date.

viii) Futures are valued using the last bid price for long positions and the last ask price for short positions. The settlement price is used where bidand ask prices are not available.

ix) The fair value of investments and other assets and liabilities denominated in foreign currencies are translated into Canadian dollars at the rate ofexchange established at noon on each day on which the Toronto Stock Exchange is open for business (‘‘valuation date’’). Under the Fund’svaluation policy, when the rates of exchange established at 3 p.m. are materially different from the noon exchange rates on a given valuationdate, the market value of investments and other assets and liabilities denominated in foreign currencies will be translated at the 3 p.m. exchangerates for that valuation date.

x) In accordance with the Emerging Issues Committee Abstract 173, ‘‘Credit Risk and the Fair Value of Financial Assets and Financial Liabilities’’,the Manager has reviewed its policy with respect to valuation of assets and liabilities and believes that the fair values ascribed to the financialassets and financial liabilities in these financial statements incorporate appropriate levels of credit risk.

c) Other Assets and Liabilities

Accrued interest and dividends receivable, amount due from brokers and other assets are designated as loans and receivables and are recorded atamortized cost. Similarly, accrued expenses, amounts due to brokers and other liabilities (other than unrealized loss on forward currency contracts,unrealized loss on other derivatives, liability for written options and trading financial liabilities relating to securities sold short which are recorded atfair value) are designated as other financial liabilities and are recorded at amortized cost. These balances are short-term in nature, therefore,amortized cost approximates fair value for these assets and liabilities.

d) Investment Transactions

Investment transactions are recorded on a trade date basis. The cost of investments represents the amount paid for each security and is determinedon an average cost basis excluding transaction costs.

e) Transaction Costs

Transaction costs are incremental costs directly attributable to the acquisition, issue or disposal of an investment, which include fees andcommissions paid to agents, advisors, brokers and dealers, levies by regulatory agencies and securities exchanges and transfer taxes and duties. Inaccordance with Section 3855, transaction costs are expensed and are included in the Statements of Operations in ‘‘Transaction costs’’.

f) Cash and Cash Equivalents

Cash and cash equivalents is comprised of cash on deposit, short-term debt instruments with original terms to maturity of less than 90 days, bankoverdrafts, margin deposited on derivatives and deposits with brokers for securities sold short, as applicable.

g) Income Recognition

Income from investments held is recognized on an accrual basis. Interest income is accrued as earned and dividend income and distributions frominvestment trusts are recognized on the ex-dividend date.

Distributions received from investment trusts are recorded as income, capital gains or a return of capital, based on the best information available tothe Manager. Due to the nature of these investments, actual allocations could vary from this information. Distributions from investment trusts that aretreated as a return of capital for income tax purposes reduce the average cost of the underlying investment trust on the Statements of Investments.

Where applicable, interest and dividends on investments sold short is accrued as earned and is reported as a liability in the Statements of Net Assetsin ‘‘Interest and dividends payable on investments sold short’’ and as an expense in the Statements of Operations in ‘‘Interest and dividend expense



on investments sold short’’. The gain or loss that would be realized if, on the valuation date, the short position were to be closed out is reflected in theStatements of Operations in ‘‘Change in unrealized appreciation (depreciation) in value of investments’’ and in the Statements of Net Assets in‘‘Investments sold short, at fair value’’. When the short position is closed out, gains and losses are realized and included in the Statements ofOperations in ‘‘Net realized gain (loss) on sale of investments’’.

h) Translation of Foreign Currency

The reporting currency for the Fund is the Canadian dollar which is the functional currency. Any other currency other than Canadian dollars representsforeign currency to the Fund.

The fair value of investments and other assets and liabilities denominated in a foreign currency are translated into Canadian dollars at the rate ofexchange which is current on the valuation date. Transactions denominated in a foreign currency are translated into Canadian dollars at the rate ofexchange prevailing at the date of the transactions. Realized and unrealized foreign currency gains or losses on investments are included in theStatements of Operations in ‘‘Net realized gain (loss) on sale of investments’’ and ‘‘Change in unrealized appreciation (depreciation) in value ofinvestments’’, respectively. Realized and unrealized foreign currency gains or losses on monetary assets and liabilities other than investmentsdenominated in foreign currencies are included in the Statements of Operations in ‘‘Net realized and change in unrealized foreign exchangegain (loss)’’.

i) Derivative Transactions

The portfolio advisors may choose to use options, forward currency contracts, future contracts, credit default swaps and equity swaps to hedgeagainst losses from changes in the prices of the Fund’s investments or from exposure to foreign currencies, or to gain exposure to individualsecurities and markets instead of buying and selling securities directly. There can be no assurance that the hedging strategies will be effective. Lossesmay also arise if the counterparty does not perform under the contract.

i) Options

An option is a contractual arrangement under which the seller (writer) grants the purchaser (holder) the right, but not the obligation, either tobuy (a call option) or sell (a put option) at or by a set date or during a set period, a specific amount of securities or a financial instrument,including derivatives such as forward currency contracts, futures contracts or swap contracts, at a pre-determined price. The seller receives apremium from the purchaser in consideration for the assumption of a future securities price.

The premium paid for purchased options is included in the ‘‘Investments, at average cost’’ on the Statements of Net Assets. The unrealized gainor loss is reflected in the Statements of Operations in ‘‘Change in unrealized appreciation (depreciation) in value of investments’’.

The premium received upon writing an option is recorded at cost as ‘‘Liability for written options’’ in the Statements of Net Assets. As long as theposition of the written option is maintained, the liability for written options is revalued at an amount equal to the current market value of theoption. Any gain or loss resulting from revaluation is reflected in the Statements of Net Assets in ‘‘Liability for written options’’.

The gain or loss on sale or expiry of options is reflected in the Statements of Operations in ‘‘Net realized gain (loss) on sale of investments’’.

ii) Forward Currency Contracts

A forward currency contract is an agreement between two parties (a Fund and the counterparty) to purchase or sell a currency against anothercurrency at a set price on a future date.

The change in value of forward currency contracts is included in the Statements of Net Assets in ‘‘Unrealized gain on forward currencycontracts’’ or ‘‘Unrealized loss on forward currency contracts’’ and in the Statements of Operations in ‘‘Change in unrealized derivativesgain (loss)’’.

When a forward currency contract is closed out, gains or losses are realized and included in the Statements of Operations in ‘‘Net realized andchange in unrealized foreign exchange gain (loss)’’.

iii) Futures Contracts

Futures contracts entered into by the Fund are financial agreements to purchase or sell a financial instrument at a contracted price on a specifiedfuture date.

The margin deposited with brokers relating to futures contracts are reflected in the Statements of Net Assets in ‘‘Margin deposited onderivatives’’. The value of futures contracts fluctuate daily and amounts receivable (payable) from brokers are reflected in the Statements of NetAssets in ‘‘Unrealized gain on other derivatives’’ or ‘‘Unrealized loss on other derivatives’’ and in the Statements of Operations in ‘‘Change inunrealized derivatives gain (loss)’’.

All realized gains or losses are recorded and reported in the Statements of Operations in ‘‘Income (loss) from derivatives’’.



iv) Credit Default Swaps

A credit default swap contract is an agreement to transfer credit risk from one party, a buyer of protection, to another party, a seller of protection.A Fund as a seller of protection would be required to pay a notional or other agreed upon value to the buyer of protection in the event of a defaultby a third party. In return, the Fund would receive from the counterparty a periodic stream of payments over the term of the contract providedthat no event of default occurs. If no default occurs, the Fund would keep the stream of payments and would have no payment obligations.

A Fund as a buyer of protection would receive a notional or other agreed upon value from the seller of protection in the event of a default by athird party. In return, the Fund would be required to pay to the counterparty a periodic stream of payments over the term of the contractprovided that no event of default occurs.

The premiums paid or received are included in the Statements of Operations in ‘‘Income (loss) from derivatives’’. The change in value of a creditdefault swap contract is included in the Statements of Net Assets in ‘‘Unrealized gain on other derivatives’’ or ‘‘Unrealized loss on otherderivatives’’ and in the Statements of Operations in ‘‘Change in unrealized derivatives gain (loss)’’.

When the credit default swap contracts are closed out, gains or losses are realized and included in the Statements of Operations in ‘‘Income(loss) from derivatives’’.

v) Equity Swaps

An equity swap contract is an agreement between two parties to exchange periodic payments based upon a notional principal amount, with oneparty paying a fixed or floating amount and the other party paying the actual return of a stock, a basket of stocks or a stock index.

A Fund as a buyer of an equity swap would receive the total return of the underlying stocks or stock index. In return, the Fund would be requiredto pay to the counterparty a fixed or floating amount on the agreed settlement dates.

Any amount received for equity swaps contracts is included in the Statements of Operations in ‘‘Income (loss) from derivatives’’. The change invalue of an equity swap contract is included in the Statements of Net Assets in ‘‘Unrealized gain on other derivatives’’ or ‘‘Unrealized loss onother derivatives’’ and in the Statements of Operations in ‘‘Change in unrealized derivatives gain (loss)’’.

When the equity swaps contracts are closed out, gains or losses are realized and included in the Statements of Operations in ‘‘Income (loss)from derivatives’’.

j) Short Selling

If a Fund sells a security short, it will borrow that security from a broker to complete the sale. The Fund will incur a loss as a result of a short sale ifthe price of the borrowed security increases between the date of the short sale and the date on which the Fund closes out its short position by buyingthat security. The Fund will realize a gain if the security declines in price between those dates. The gain or loss that would be realized if, on thevaluation date, the position were to be closed out is reflected in the Statements of Operations in ‘‘Change in unrealized appreciation (depreciation) invalue of investments’’ and in the Statements of Net Assets in ‘‘Investments sold short at fair value’’. When the short position is closed out, the gainand loss is realized and included in the Statements of Operations in ‘‘Net realized gain (loss) on sale of investments’’.

There can be no assurance that a Fund will be able to close out a short position at an acceptable time or price. Until the Fund replaces a borrowedsecurity, it will maintain a margin account with the broker containing cash and liquid securities such that the amount deposited as margin will bemore than the current market value of the security sold short. The cash held on margin in respect of short sale activity is noted in the Statements ofNet Assets in ‘‘Deposits with brokers for securities sold short’’, if applicable.

k) Valuation of Fund Units for Transactional NAV Purposes

The net asset value per Trust Unit of the Fund is calculated at the end of each valuation date by dividing the net asset value of the Fund by itsoutstanding Trust Units.

l) Increase (Decrease) in Net Assets from Operations per Trust Unit

The ‘‘Increase (decrease) in net assets from operations per Trust Unit’’ is disclosed in the Statements of Operations and represents the increase ordecrease in net assets from operations for the period divided by the average number of Trust Units outstanding during the period.

m) Non-zero Amounts

Some of the balances reported in the financial statements may include amounts that are rounded to zero.

n) Comparative Data

Certain prior year comparative data may have been reclassified to conform to the current year’s presentation. These changes do not impact the netasset value or results of operations of the Funds.



o) Currency Legend

The following is a list of abbreviations that may be used in the Financial Statements:AUD Australian Dollar GBP Pound Sterling MXN Mexican Peso SGD Singapore DollarBMD Bermuda Dollar HKD Hong Kong Dollar MYR Malaysian Ringgit THB Thailand BahtBRL Brazilian Real IDR Indonesian Rupiah NOK Norwegian Krone TWD New Taiwan DollarCAD Canadian Dollar ILS Israeli Shekel NZD New Zealand Dollar USD US DollarCHF Swiss Franc INR Indian Rupee PHP Philippine Peso ZAR South African RandDKK Danish Krone JPY Japanese Yen PKR Pakistani RupeeEUR Euro KRW South Korean Won SEK Swedish Krona

3. Income Taxes

a) Taxation of Closed-Ended Mutual Fund Trusts

The Fund qualifies as a mutual fund trust under the Income Tax Act (Canada) and has a December 15th tax year end. Mutual fund trusts are subject totax on their income, including net realized capital gains, that is not paid or payable to their securityholders. In accordance with the terms of theDeclaration of Trust, all of the net income and net realized capital gains will be paid or payable to securityholders in the taxation year so that noincome tax will be paid or payable by the Fund. The amount of net realized capital gains available for distribution is reduced by the amount of netrealized capital gains that are retained in the Fund in order for the Fund to fully utilize any available capital loss carryforwards and/or capital gainsrefund for the year.

In certain circumstances, the Fund may distribute a return of capital. A return of capital is generally not taxable to securityholders but will reduce theadjusted cost base of the units held.

b) Losses Carried Forward

The Fund may accumulate net capital losses and non-capital losses. Net capital losses can be carried forward indefinitely to reduce future net realizedcapital gains. Non-capital losses may be carried forward to reduce future taxable income for up to twenty years.

The Fund had losses available to carry forward as indicated below:Non-Capital Losses that Expire in:

Total Capital Total Non-Capital 2027 2028 2029 2030 2031 2032Losses ($000’s) Losses ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s)

121,906 22,800 214 5,330 5,339 5,980 4,821 1,116

4. Expenses and Related Party Transactions

The Manager is an indirectly wholly-owned subsidiary of The Bank of Nova Scotia (‘‘Scotiabank’’) and is a related party to the Fund. Scotiabank ownsa significant interest in CI Financial Corp. and owns, directly or indirectly, 100% of Scotia Capital Inc. (‘‘Scotia Capital’’). CI Financial Corp. and ScotiaCapital are related parties to the Fund.

a) Management Fee

The Fund pays the Manager a management fee for the continuous advice, recommendations and services provided to the Fund. This includes actingas the Manager, Trustee and Portfolio Advisor to the Fund. The Manager is also responsible for the Fund’s day-to-day operations.

The management fee for the Fund is an annualized rate of 1.50% based on the net asset value of the Fund and is accrued daily and paid monthly inaccordance with the management agreement for the Fund. The management fee may be paid in cash or in Trust Units at the option of the Manager tothe extent Trust Units are issued from treasury in lieu of cash payment. Trust Units will be valued at the net asset value as at the last business day ofthe applicable month.

The Fund incurred a management fee, inclusive of sales tax, of $1.3 million (June 30, 2012 – $1.6 million).

b) Administrative Fee

The Fund also pays the Manager an annual administrative fee to cover the costs to the Manager incurred in identifying and evaluating potentialinvestments for the Portfolio. The administrative fee for the Fund is an annualized rate of 1.00% based on the net asset value of the Fund and isaccrued daily and paid monthly. Effective October 1, 2011, the Manager implemented a temporary waiver, reducing the annual administrative Fee to0.5% of the net asset value of the Fund for a period of two years.

The Fund paid the Manager an administrative fee, inclusive of sales tax, of $448,000 (June 30, 2012 – $703,000).


4. Expenses and Related Party Transactions (cont’d)

c) Management Incentive Fees

The Fund also pays to the Manager in respect of each fiscal year of the Fund a performance bonus (the ‘‘management incentive fee’’) equal to:(a) 20% of the amount by which the Adjusted net asset value per Trust Unit at the end of such fiscal year exceeds the highest year end net asset valueper Trust Unit (‘‘Highest Year’’) adjusted pro rata to reflect Warrants exercised since the Highest Year multiplied by (b) the average daily number ofTrust Units outstanding during such fiscal year.

‘‘Adjusted net asset value per Trust Unit’’ means the net asset value per Trust Unit at the end of such fiscal year (a) without giving effect to the accrualof any management incentive fee, and (b) before giving effect to any distributions by the Fund since the Highest Year. As used herein, the HighestYear will be the ending net asset value per Trust Unit of the greater of: (a) the previous Highest Year; and (b) the preceding year Adjusted net assetvalue per Trust Unit.

No management incentive fee will be payable with respect to the current fiscal year of the Fund unless the Adjusted net asset value per Trust Unit atthe end of the current fiscal year exceeds the net asset value per Trust Unit at the end of the preceding year, adjusted pro rata to reflect warrantsexercised during the current fiscal year, by a minimum of 8% (the ‘‘Threshold Rate’’). The management incentive fee will be estimated and accruedeach Valuation Date, and any such fee will be paid within 30 business days after the end of each fiscal year.

As at June 30, 2013, the Fund accrued a management incentive fee, inclusive of sales tax, of nil (June 30, 2012 – nil).

d) Operating Expenses and Administrative Services

The Fund is responsible for operating expenses relating to the carrying on of its business, including custodial services, legal, Independent ReviewCommittee fees, audit fees, transfer agency services and the cost of financial and other reports in compliance with all applicable laws, regulations andpolicies. Such expenses are calculated and accrued daily based on the average net asset value of the Fund. The Manager pays for such expenses onbehalf of the Fund, except for certain expenses such as interest and taxes, and is then reimbursed by the Fund.

In addition, the Fund paid the Manager $65,000 (June 30, 2012 – $185,000) for administrative services performed by the Manager during the period.

e) Commissions and Related Brokerage Commissions

From time to time, the Manager may, on behalf of the Fund, enter into securities transactions, based on established standard brokerage agreements atmarket prices, with Scotia Capital.

Brokerage commissions of $124,000 (June 30, 2012 – $302,000) were paid on securities transactions during the period. Of this amount, relatedparties received nil (June 30, 2012 – nil).

Also included in the total commissions are client brokerage commissions of nil (June 30, 2012 – nil). Client brokerage commissions reflect amountspaid indirectly to third parties through a broker or dealer for services received by the Fund for services other than trading execution.

Brokerage commissions paid on securities transactions are considered to be part of operating expenses. These commissions are not included in thecost of purchasing securities, nor are they netted out of the proceeds from selling securities.

f) Standing Instructions from the Independent Review Committee

Pursuant to National Instrument 81-107 – ‘‘Independent Review Committee for Investment Funds’’ (‘‘NI 81-107’’), an independent review committee(the ‘‘IRC’’) was appointed by the Manager and became operational in 2007. Costs and expenses, including the remuneration of IRC members, thecosts of legal and other advisors to, and legal and other services for, IRC members, and insurance costs are chargeable to the Fund. As at June 30,2013, the IRC consisted of four members, all of whom are independent of the Manager.

The Fund received the following standing instructions from the IRC with respect to related party transactions.

(i) paying brokerage commissions to Scotia Capital for effecting security transactions on an agency and principal basis on behalf of the Fund(referred to as ‘‘Related Brokerage Commissions’’);

(ii) purchases or sales of securities of an issuer from or to another investment fund managed by the Manager (referred to as ‘‘Inter-Fund Trades’’);

(iii) investments in the securities of issuers for which Scotia Capital acted as an underwriter during the distribution of such securities and the 60-dayperiod following the completion of such distribution (referred to as ‘‘Underwriting of Securities’’);

(iv) executing foreign exchange transactions with Scotia Capital on behalf of the Fund; and

(v) purchases of securities of Scotiabank and CI Financial Corp.

The applicable standing instructions require that the Manager establish policies and procedures that it will follow with respect to related partytransactions. The Manager is required to advise the IRC of any material breach of a condition of the standing instructions. The standing instructionsrequire, among other things, that the investment decision in respect to a related party transaction: (a) is made by the Manager free from any influenceby an entity related to the Manager and without taking into account any consideration to any associate or affiliate of the Manager; (b) represents the


4. Expenses and Related Party Transactions (cont’d)

business judgment of the Manager uninfluenced by considerations other than the best interests of the Fund; and (c) is made in compliance with theManager’s written policies and procedures. Transactions made by the Manager under the standing instructions are subsequently reviewed by the IRCto monitor compliance. The IRC prepares and files a report to unitholders each fiscal year.

The Fund did not rely on an IRC standing instruction regarding related party transactions during the period.

5. Unitholders’ Capital

The Manager considers the Fund’s capital to consist of unitholders’ equity representing the net assets. The Fund’s capital is managed in accordancewith the Fund’s investment objectives, policies and restrictions, as outlined in the Fund’s prospectus. The Fund endeavors to invest the capital inappropriate investments while maintaining sufficient liquidity.

The Fund is authorized to issue an unlimited number of transferable, non-redeemable Trust Units of one class, each of which represents an equal,undivided interest in the net assets of the Fund. Each unitholder is entitled to one vote for each Trust Unit held and is entitled to participate equallywith respect to any and all distributions made by the Fund, including distributions of net income and net realized capital gains, if any. On terminationor liquidation of the Fund, the holders of outstanding Trust Units will be entitled to receive their pro rata share of all the assets of the Fund remainingafter payment of all debts, liabilities and liquidation expenses. The Fund does not have a fixed termination date. The manager may, at its discretion,terminate the Fund without the approval of the unitholders if, in its opinion, it would be in the best interests of the Fund and the unitholders toterminate the Fund.

Summaries of the outstanding Trust Units, unitholders’ capital and retained earnings (accumulated deficit) are outlined in the following tables:

June 30, 2013 June 30, 2012

Outstanding Trust Units Trust Units Trust UnitsBeginning of period 21,197,147 22,560,654Issued – –Reinvested distributions (Note 9) – –Redeemed – –Trust Units repurchased under market purchase program (919,100) (1,363,507)End of period 20,278,047 21,197,147

June 30, 2013 June 30, 2012

Unitholders’ Capital (000s) Trust Units Trust UnitsBeginning of period $191,758 $215,107Issued – –Return of capital distributions to unitholders (Note 9) (10,634) (11,326)Reinvested distributions (Note 9) – –Contributed surplus (loss) on unexercised expired Warrants – –Redeemed – –Cost of Trust Units repurchased under market repurchase program (8,105) (12,023)End of period $173,019 $191,758

Retained Earnings (Accumulated Deficit) (000s) June 30, 2013 June 30, 2012Retained earnings (accumulated deficit), beginning of period $(108,517) $(82,694)Increase (decrease) in net assets from operations 6,018 (33,007)Contributed surplus (loss) on Trust Units repurchased under market repurchase program 4,942 7,184Retained earnings (accumulated deficit), end of period $(97,557) $(108,517)

Market Purchase ProgramIn accordance with the term of the prospectus, the Fund may at any time, purchase Trust Units for cancellation at prices not exceeding the mostrecently calculated net asset value per Trust Unit and on such terms and conditions as the Manager may determine.

6. Reconciliation of GAAP Net Assets per Trust Unit and Transactional NAV per Trust Unit

The table below provides a comparison of the GAAP Net Assets per Trust Unit and Transactional NAV per Trust Unit. The primary reason for thedifference between the GAAP Net Assets per Trust Unit and Transactional NAV per Trust Unit is described in Note 2.

June 30, 2013 June 30, 2012Transactional NAV per Trust Unit $3.72 $3.93GAAP Net Assets per Trust Unit $3.72 $3.93


7. Risk Management

Investment activities of the Fund expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including interest rate risk, otherprice risk and currency risk). The level of risk depends on the Fund’s investment objectives and the type of securities it invests in.

The Manager seeks to minimize these risks by employing experienced portfolio managers that will manage the security portfolios of the Fund on adaily basis according to market events and the investment objectives of the Fund. Section 3862 and Section 3863 disclosures that are specific to theFund are presented in the Discussion on Financial Risk Management and Financial Instruments under the Statement of Investments. The sensitivityanalysis shown in the Discussion on Financial Risk Management and Financial Instruments may differ from actual results and the difference couldbe significant.

The Manager maintains a risk management practice that includes monitoring compliance with investment restrictions to ensure that the Fund is beingmanaged in accordance with the Fund’s stated investment objectives, strategies and securities regulations. In addition, the below noted risk positionsare monitored by the portfolio managers on a regular basis and reviewed by the Fund Review Committee on a quarterly basis.

Credit RiskCredit risk is the risk that a counterparty to a financial instrument will fail to discharge a commitment that it has entered into with the Fund. The fairvalue of a financial instrument takes into account the credit rating of its issuer, and accordingly, represents the maximum credit risk exposure of theFund. Exposure to credit risk is mainly in debt securities (such as bonds and debentures). All transactions in securities are settled or paid for upondelivery through brokers. As such, credit risk is considered minimal in the Fund on investment transactions, as delivery of securities sold is madeonce the broker has received payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail ifeither party fails to meet its obligation. In addition, custody transactions are carried out by counterparties that have a Standard & Poor’s credit ratingof A or higher.

Liquidity RiskLiquidity risk is the risk that the Fund may not be able to settle or meet its obligations on time or at a reasonable price. Therefore, in order to maintainsufficient liquidity, the Fund invests its assets in securities that are traded in an active market and can be readily disposed. The Fund also invests insecurities that are not traded in an active market and may be illiquid. Such investments are identified as private and restricted securities in theStatement of Investments. In addition, the Fund aims to retain sufficient cash and cash equivalent positions to maintain liquidity.

Interest Rate RiskInterest rate risk is the risk that the fair value of the Fund’s interest-bearing investments will fluctuate due to changes in the prevailing levels of marketinterest rates. Exposure to interest rate risk is mainly in debt securities (such as bonds and debentures). Other assets and liabilities are short-term innature and are non-interest bearing. There is minimal sensitivity to interest rate fluctuations on cash and cash equivalents invested at short-termmarket interest rates.

Other Price RiskOther price risk is the risk that the fair value of financial instruments will fluctuate as a result of changes in market prices (other than those arisingfrom interest rate risk or currency risk) caused by factors specific to a security, its issuer or all factors affecting a market or a market segment.Exposure to other price risk is mainly in equities and commodities. The maximum risk resulting from these financial instruments is equivalent to theirfair value.

Currency RiskCurrency risk is the risk that the fair value of a financial instrument will fluctuate due to changes in foreign exchange rates. Exposure to currency riskis mainly in financial instruments (including cash and cash equivalents) that are denominated in a currency other than Canadian dollars, whichrepresents the functional currency of the Fund. Therefore the Fund’s financial instruments that are denominated in other currencies will fluctuate dueto changes in the foreign exchange rates of those currencies in relation to the Fund’s functional currency. Foreign currencies of issued bonds arelisted in the investment portfolio. Foreign stocks are also exposed to currency risk since the value of such stocks are converted to Canadian dollars todetermine their fair value.

8. Financial Instruments

Fair Value HierarchyCICA Handbook Section 3862, Financial Instruments – Disclosures, requires disclosure regarding the valuation methods and assumptions used tomeasure financial instruments at fair value. The Fund uses the following inputs within the fair value hierarchy for determining and disclosing the fairvalue of financial instruments:

Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 financialinstruments include actively listed equities, exchange traded derivatives and other publicly quoted investments. The Manager does not adjust thequoted price for these instruments.


8. Financial Instruments (cont’d)

Level 2 – Inputs to the valuation methodology include quoted prices in active markets for similar assets and liabilities, and inputs that are observablefor the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 financial instruments are thosethat trade in markets that are not considered to be active but are valued based on quoted market prices or dealer quotations supported by observableinputs or adjusted for fair value factors. These include investment-grade corporate bonds, certain listed equities and over-the-counter derivatives. AsLevel 2 investments include positions that are not traded in active markets or may be subject to sale restrictions, valuations may be adjusted to reflectilliquidity which is generally based on available market information.

Level 3 – Inputs to the valuation methodology is based on unobservable market data. Level 3 financial instruments are those that have at least onesignificant unobservable input, as they are not based on quoted market prices. Level 3 instruments include private equity and private debt securities.As observable prices are not available for these securities, the Manager has used valuation techniques to derive the fair value.

Transfers Between LevelsFair values are classified as Level 1 when the related security is actively traded and a quoted price is available. If an instrument classified as Level 1subsequently ceases to be actively traded, it is transferred out of Level 1. In such case, the instrument may be reclassified into Level 2, unless themeasurement of its fair value requires the use of significant unobservable inputs, in which case it is classified as Level 3.

Reconciliation of Level 3 Financial InstrumentsSection 3862 also requires a reconciliation between the opening and closing balances for Level 3 financial instruments.

The fair value hierarchy, transfers between levels and reconciliation of Level 3 financial instruments are presented in the Discussion on Financial RiskManagement and Financial Instruments under the Statements of Investments.

9. Distributions to Unitholders

From time to time, the Fund may choose to make distributions to holders of Trust Units. The Fund will make payable in each year its income for taxpurposes and capital gains to ensure that the Fund will not be liable for income tax under the Tax Act. These distributions may be in the form of eithercash or Trust Units. On June 13, 2013, the Manager announced that unitholders of the Fund will be entitled to a payment of the quarterly cashdistribution of $0.13 per trust unit payable on July 16, 2013 to unitholders of record as of June 28, 2013.

10. Leverage and Borrowing

The Fund will from time to time, enter into leverage and borrowing transactions, which cannot exceed 25% of the net asset value of the Fund.Leverage and borrowing may be effected through one or more financing arrangements at the discretion of the Manager and may include loan facilitieswith Canadian chartered banks, margin facilities with registered brokers, and short sale of highly liquid government bonds. There can be noassurance that the Fund will be able to close out a short position at an acceptable time or price. Until the Fund replaces a borrowed security, it willmaintain an account with the broker containing cash and liquid securities such that the amount deposited as margin will at least equal the currentmarket value of the security sold short. The Fund has provided the prime broker interest in all of the assets of the Fund as collateral for leveragepurposes.

For the period ended June 30, 2013, the Fund’s highest and lowest bank borrowings were $312,000 (June 30, 2012 – $150,000) and nil (June 30,2012 – nil) respectively. The average interest rate on the outstanding balances during the period was 3.3% (June 30, 2012 – 3.3%). As at June 30,2013 the Fund had not entered into any such transactions.

11. International Financial Reporting Standards

On December 12, 2011, the Canadian Accounting Standards Board (‘‘AcSB’’) extended the deferral of the mandatory International Financial ReportingStandards (‘‘IFRS’’) changeover date for investment entities to fiscal years beginning on or after January 1, 2014. Consequently, the Fund will adoptIFRS beginning July 1, 2014 and will publish the first financial statements, prepared in accordance with IFRS, for the semi-annual period endingDecember 31, 2014. The December 31, 2014 semi-annual and June 30, 2015 annual financial statements will include an opening Statement of NetAssets as at July 1, 2013 (‘‘the transition date’’), and comparative financial information prepared in accordance with IFRS.

In addition, on May 12, 2011, the International Accounting Standards Board (‘‘IASB’’) issued IFRS 13 – ‘‘Fair Value Measurement’’, which defines fairvalue, sets out a single IFRS framework for measuring fair value and requires disclosure about fair value measurements. It only applies when otherIFRS standards require or permit fair value measurement. If an asset or a liability measured at fair value has a bid price and an ask price, it requiresvaluation to be based on a price within the bid-ask spread that is most representative of fair value. It allows the use of mid-market pricing or otherpricing conventions that are used by market participants as a practical expedient for fair value measurements within a bid-ask spread. This may resultin eliminating the difference between the net asset value per unit and net assets per unit under current Canadian GAAP.

Furthermore, in October 2012, the IASB issued Investment Entities (Amendments to IFRS 10 – ‘‘Consolidated Financial Statements’’, IFRS 12 –‘‘Disclosure of Interests in Other Entities’’ and IAS 27 – ‘‘Separate Financial Statements’’), which define an investment entity and introduce anexception to the consolidation requirements. The amendments require an investment entity to measure investments in most controlled subsidiaries at


11. International Financial Reporting Standards (cont’d)

fair value through profit or loss in accordance with IFRS 9 – ‘‘Financial Instruments’’. The amendments also introduce new disclosure requirementsfor these entities and apply for annual periods beginning on or after January 1, 2014.

The Manager has developed a changeover plan to meet the implementation date published by the AcSB. The key elements of the plan includeidentifying differences between the Fund’s current accounting policies and those the Fund expects to apply under IFRS, as well as any accountingpolicy and implementation decisions and their resulting impact, if any, on the net assets or net asset value of the Fund.

Based on the Manager’s analysis to date, there will likely be no material impact to the net asset value per unit of each series of the Fund due to thechangeover to IFRS. The major qualitative changes that will result from the adoption of IFRS will be fair valuation, the addition of cash flowstatements, the classification of net assets representing unitholders’ equity, and additional note disclosures. However, this present determination issubject to change resulting from the issuance of new standards or new interpretations of existing standards.

12. Proposed Liquidity Event

On May 29, 2012, the Manager announced its intention to implement a liquidity event in the Fund. The liquidity event may be in the form of: aconversion of the Fund to an open-end mutual fund, a transfer or merger of units of the Fund to an open-end mutual fund, or a termination of theFund, and is expected to occur on or about June 30, 2014, subject to receipt of all necessary approvals.

10SEP200718190370

INDEPENDENT AUDITOR’S REPORT

To the Unitholders of

DPF India Opportunities Fund

(the Fund)

We have audited the accompanying financial statements of the Fund, which comprise the statement of investments as at June 30, 2013, thestatements of net assets as at June 30, 2013 and 2012 and the statement of operations, changes in net assets and cash flows for the years thenended, and the related notes, which comprise a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally acceptedaccounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that arefree from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadiangenerally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The proceduresselected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due tofraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinionon the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion, the financial statements of the Fund present fairly, in all material respects, the financial position of the Fund as at June 30, 2013 and2012 and the results of its operations, the changes in its net assets and its cash flows for the years then ended in accordance with Canadian generallyaccepted accounting principles.

Chartered Professional Accountants, Licensed Public AccountantsToronto, OntarioSeptember 10, 2013

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Head Offi ce

Dynamic Funds Tower

1 Adelaide St. E., Ste. 2900

Toronto, ON M5C 2V9

Toll free: 1-866-977-0477

Tel: 416-363-5621

Customer Relations Centre

Toll free: 1-800-268-8186

Tel: 514-908-3212 (English)

514-908-3217 (French)

Fax: 416-363-4179 or 1-800-361-4768

Email: [email protected]

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