imperialcanadianequitypool interimfinancialreports(unaudited) · 2021. 1. 11. · ath abscoilcorp....

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

Imperial Canadian Equity Pool

Interim Financial Reports (unaudited)for the period ended June 30, 2016

† Securities LendingThe tables that follow indicate the Pool had assets involved in securities lending transactionsoutstanding as at June 30, 2016 and December 31, 2015.

Aggregate Valueof Securities

on Loan($000s)

AggregateValue

of Collateralfor Loan

($000s)x

x

June 30, 2016 274,896 287,930x

December 31, 2015 306,001 321,060x

Collateral Type* ($000s)i ii iii iv

xx

June 30, 2016 47,452 240,478 – –x

December 31, 2015 35,036 285,393 – 631x

x

* See note 2j for Collateral Type definitions.

Organization of the Fund (note 1)The Pool was established on February 1, 1991 (Date Established).

Inception Datexx

Class A October 15, 1998xx

Statements of Financial Position (unaudited)(in 000s, except per unit amounts)

As at June 30, 2016 and December 31, 2015 (note 1)

June 30, 2016 December 31, 2015x

xxx

Assetsxxx

Current assetsx

Investments (non-derivative financial assets) † (notes2 and 3) $ 2,492,484 $ 2,202,696

x

Cash including foreign currency holdings, at fair value 958 815x

Margin 1,584 27x

Dividends receivable 6,747 6,797x

Receivable for portfolio securities sold 3,247 8,999x

Receivable for units issued 2,630 1,640xxx

Total Assets 2,507,650 2,220,974xxx

Liabilitiesxxx

Current liabilitiesx

Payable for portfolio securities purchased 2,695 17,071x

Payable for units redeemed 581 889x

Other accrued expenses 1 –x

Derivative liabilities 500 –xxx

Total Liabilities 3,777 17,960xxx

Net Assets Attributable to Holders ofRedeemable Units (note 5) $ 2,503,873 $ 2,203,014

xxx

Net Assets Attributable to Holders ofRedeemable Units per Class

x

Class A $ 2,503,873 $ 2,203,014xxx

Net Assets Attributable to Holders ofRedeemable Units per Unit (note 5)

x

Class A $ 22.93 $ 20.93x

1



Statements of Comprehensive Income (unaudited)(in 000s, except per unit amounts)

For the periods ended June 30, 2016 and 2015 (note 1)

June 30, 2016 June 30, 2015x

x

Net Gain (loss) on Financial Instrumentsx

Interest for distribution purposes $ 1,561 $ 851x

Dividend revenue 32,694 27,690x

Other changes in fair value of investments andderivatives

x

Net realized gain (loss) on sale of investments andderivatives (12,536) 85,412

x

Net realized gain (loss) on foreign currency (notes 2fand g) 7 6

x

Net change in unrealized appreciation (depreciation)of investments and derivatives 198,009 (103,403)

xxx

Net Gain (loss) on Financial Instruments ± 219,735 10,556xx

x

Other Incomex

Foreign exchange gain (loss) on cash – 6x

Securities lending revenue ±± 452 158xxx

452 164xx

x

Expenses (note 6)x

Management fees ±±± 3,183 2,903x

Audit fees 5 5x

Custodial fees 117 110x

Independent review committee fees 2 3x

Legal fees 12 9x

Regulatory fees 27 20x

Transaction costs ±±±± 1,295 1,997x

Unitholder reporting costs 254 373x

Withholding taxes (note 7) 24 12x

Other expenses 10 8xxx

4,929 5,440xx

x

Expenses waived/absorbed by the Manager (1,669) (1,690)xx

x

3,260 3,750xx

x

Increase (Decrease) in Net Assets Attributable toHolders of Redeemable Units (excludingdistributions) 216,927 6,970

xx

x

Increase (Decrease) in Net Assets Attributable toHolders of Redeemable Units per Class(excluding distributions)

x

Class A $ 216,927 $ 6,970xxx

Average Number of Units Outstanding for theperiod per Class

x

Class A 107,378 86,758xxx

Increase (Decrease) in Net Assets Attributable toHolders of Redeemable Units per Unit(excluding distributions)

x

Class A $ 2.01 $ 0.08x

x

± Net Gain (Loss) on Financial Instruments(in 000s)

Net gains (losses)

Category June 30, 2016 June 30, 2015x..

Financial assets at FVTPL..

Held for Trading $ (712) $ (104)..

Designated at Inception 220,447 10,660......

Total financial assets at FVTPL $ 219,735 $ 10,556..

±± Securities Lending Revenue (note 2j)June 30, 2016 June 30, 2015

(in 000s)

% of Grosssecurities

lending revenue (in 000s)

% of Grosssecurities

lending revenuexx

Gross securities lending revenue $ 772 100.0 $ 536 100.0x

Interest paid on collateral 107 13.9 300 55.9x

Withholding taxes 19 2.5 10 1.9x

Agent fees - Bank of New YorkMellon Corp. (The) 194 25.1 68 12.7

xxx

Securities lending revenue $ 452 58.5 $ 158 29.5xx

±±± Maximum Chargeable Annual Management Fee Rates (note 6)xx

Class A 0.25%xx

±±±± Brokerage Commissions and Fees (notes 8 and 9)

2016 2015x

x

Brokerage commissions and other fees ($000s)x

Total Paid 1,295 2,005x

Paid to CIBC World Markets Inc. 161 176x

Paid to CIBC World Markets Corp. – –x

Soft dollars ($000s)x

Total Paid 493 481x

Paid to CIBC World Markets Inc. and CIBC World Markets Corp. 59 15xx

Service Provider (note 9)The amounts paid by the Pool (including all applicable taxes) to CIBC Mellon Trust Company forcustodial fees, and to CIBC Mellon Global Securities Services Company (CIBC GSS) for securitieslending, fund accounting and reporting, and portfolio valuation (all net of absorptions) for the periodsended June 30, 2016 and 2015 were as follows:

2016 2015x

x

($000s) 194 68xx

2


Imperial Canadian Equity Poolx

Statements of Changes in Net Assets Attributable to Holders of Redeemable Units (unaudited)(in 000s)For the periods ended June 30, 2016 and 2015 (note 1)

Class A Units

June 30, 2016 June 30, 2015xx.

Increase (Decrease) in Net Assets Attributable toHolders of Redeemable Units (excludingdistributions) $ 216,927 $ 6,970

xxx.

Redeemable Unit Transactionsx.

Amount received from the issuance of units 258,687 272,368x.

Amount paid on redemptions of units (174,755) (141,028)x.xx

83,932 131,340xxx.

Increase (Decrease) in Net Assets Attributable toHolders of Redeemable Units 300,859 138,310

x.

Net Assets Attributable to Holders of Redeemable Unitsat Beginning of Period 2,203,014 2,004,464

x.xx

Net Assets Attributable to Holders of Redeemable Unitsat End of Period $ 2,503,873 $ 2,142,774

xxx.

Redeemable Units Issued and Outstanding (note 5)x.

As at June 30, 2016 and 2015x.

Balance - beginning of period 105,274 84,063x.

Redeemable units issued 12,146 11,146x.xx

117,420 95,209x.

Redeemable units redeemed (8,228) (5,776)x.xx

Balance - end of period 109,192 89,433xx

x

3


Imperial Canadian Equity Poolx

x

Statements of Cash Flows (unaudited)(in 000s)For the periods ended June 30, 2016 and 2015 (note 1)

June 30, 2016 June 30, 2015xx.

Cash Flows from Operating Activitiesx.

Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units from Operations (excluding distributions) $ 216,927 $ 6,970x.

Adjustments for:x.

Foreign exchange loss (gain) on cash – (6)x.

Net realized (gain) loss on sale of investments and derivatives 12,536 (85,412)x.

Net change in unrealized (appreciation) depreciation of investments and derivatives (198,009) 103,403x.

Purchase of investments (1,303,141) (1,852,111)x.

Proceeds from the sale of investments 1,190,702 1,695,115x.

Margin (1,557) –x.

Dividends receivable 50 52x.

Other liabilities 1 –x.xx

(82,491) (131,989)xxx.

Cash Flows from Financing Activitiesx.

Amount received from the issuance of units 257,697 271,559x.

Amount paid on redemptions of units (175,063) (141,145)x.xx

82,634 130,414xxx.

Increase (Decrease) in Cash during the Period 143 (1,575)xxx.

Foreign exchange loss (gain) on cash – 6xxx.

Cash (Bank Overdraft) at Beginning of Period 815 2,011xxx.

Cash (Bank Overdraft) at End of Period $ 958 $ 442x

x.

Interest received $ 1,561 $ 851x.

Dividends received, net of withholding taxes $ 32,720 $ 27,730

4



x

Schedule of Investment Portfolio (unaudited) As at June 30, 2016

SecurityNumber

of Shares

AverageCost

($000s)

FairValue

($000s)

% ofNet

Assetsx

CANADIAN EQUITIES..

Consumer Discretionary..

Aimia Inc. 204,000 2,706 1,612..

AutoCanada Inc. 11,700 250 259..

BRP Inc. 412,793 10,613 8,532..

Canadian Tire Corp. Ltd., Class 'A' 63,040 7,641 8,873..

Cara Operations Ltd., Subscription Receipts 30,000 878 878..

Cineplex Inc. 24,900 1,184 1,284..

Cogeco Communications Inc. 49,200 3,108 3,336..

Cogeco Inc. 70,941 3,937 3,961..

Corus Entertainment Inc., Class 'B' 21,200 236 282..

Diversified Royalty Corp. 114,000 308 249..

Dollarama Inc. 124,200 8,436 11,203..

Dorel Industries Inc., Class 'B' 135,107 4,525 4,645..

Gildan Activewear Inc. 353,719 11,445 13,385..

Glacier Media Inc. 1,293,090 1,735 853..

Glacier Media Inc., Rights, 2016/09/05 1,293,090 – 6..

Great Canadian Gaming Corp. 48,100 868 864..

Hudson's Bay Co. 19,400 479 302..

IMAX Corp. 13,600 347 518..

Indigo Books & Music Inc. 183,985 2,141 3,109..

Linamar Corp. 54,895 2,682 2,526..

Magna International Inc., Class 'A' 726,318 25,406 32,939..

Martinrea International Inc. 74,200 936 594..

MTY Food Group Inc. 1,200 48 52..

Quebecor Inc., Class 'B' 603,091 19,371 22,326..

Reitmans (Canada) Ltd. 36,101 219 154..

Reitmans (Canada) Ltd., Class 'A' 446,464 2,482 1,964..

Restaurant Brands International Inc. 123,200 6,170 6,626..

Sears Canada Inc. 700 2 3..

Shaw Communications Inc., Class 'B' 712,164 17,795 17,662..

Sirius XM Canada Holdings Inc., Class 'A' 42,800 224 196..

Sleep Country Canada Holdings Inc. 6,600 125 157..

Spin Master Corp. 37,641 722 1,003..

Torstar Corp., Class 'B' 347,957 1,996 571..

Transat A.T. Inc. 200 2 1..

TVA Group Inc., Class 'B' 121,537 641 486..

Uni-Select Inc. 69,800 2,032 2,287..

Whistler Blackcomb Holdings Inc. 24,700 606 593..

Zungui Haixi Corp. 46,477 151 –..

....

142,447 154,291 6.2%..x

Consumer Staples..

AGT Food and Ingredients Inc. 68,300 2,357 2,424..

Alimentation Couche-Tard Inc., Class 'B' 627,179 18,524 34,796..

Corby Spirit and Wine Ltd. 7,600 152 154..

Cott Corp. 627,622 8,190 11,335..

Empire Co. Ltd., Class 'A' 973,698 22,809 18,705..

High Liner Foods Inc. 1,100 16 21..

Jean Coutu Group (PJC) Inc. (The), Class 'A' 119,700 2,598 2,394..

Lassonde Industries Inc., Class 'A' 17,835 2,471 3,232..

Loblaw Cos. Ltd. 134,500 8,599 9,295..

Maple Leaf Foods Inc. 368,700 7,724 10,172..

Metro Inc., Class 'A' 293,500 10,778 13,210..

North West Co. Inc. (The) 28,300 787 834..

Premium Brands Holdings Corp. 59,400 2,518 3,231..

Rogers Sugar Inc. 38,600 190 228..

Saputo Inc. 10,500 412 403..

Ten Peaks Coffee Co. Inc. 61,500 604 487..

....

88,729 110,921 4.4%..x

Energy..

Advantage Oil & Gas Ltd. 260,600 1,978 1,881..

Africa Oil Corp. 4,300 9 8..

AKITA Drilling Ltd., Class 'A' 266,918 2,714 2,234..

AltaGas Ltd. 898,448 29,458 28,211..

ARC Resources Ltd. 532,392 11,621 11,771..

Athabasca Oil Corp. 143,300 165 205..

Bankers Petroleum Ltd. 276,000 516 569..

Baytex Energy Corp. 5,300 34 40..

Bellatrix Exploration Ltd. 672,600 1,054 854..

Birchcliff Energy Ltd. 76,000 409 523..

Bonavista Energy Corp. 416,800 1,195 1,375..

Bonterra Energy Corp. 12,700 299 338..

Calfrac Well Services Ltd. 603,912 2,095 2,343..

Canacol Energy Ltd. 112,900 454 491..

Canadian Natural Resources Ltd. 2,006,740 66,763 79,989..

Canyon Services Group Inc. 204,500 996 1,155..

Cardinal Energy Ltd. 183,047 1,947 1,825..

Cenovus Energy Inc. 790,460 19,389 14,125..

Crew Energy Inc. 479,200 2,379 2,784..

Delphi Energy Corp. 45,800 39 50..

Enbridge Inc. 641,985 30,549 35,136..

Enbridge Income Fund Holdings Inc. 69,800 2,025 2,238

5



Schedule of Investment Portfolio (unaudited) As at June 30, 2016 (cont'd)

SecurityNumber

of Shares

AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets..

Encana Corp. 1,692,840 18,507 17,013..

Enerflex Ltd. 74,189 778 792..

Enerplus Corp. 405,100 2,479 3,447..

Epsilon Energy Ltd. 600 2 2..

Freehold Royalties Ltd. 118,400 1,626 1,410..

Gibson Energy Inc. 224,452 4,876 3,365..

Gran Tierra Energy Inc. 574,200 2,055 2,492..

Granite Oil Corp. 24,900 182 198..

High Arctic Energy Services Inc. 2,100 8 8..

Husky Energy Inc. 679,506 17,095 10,716..

Imperial Oil Ltd. 301,493 13,162 12,325..

Inter Pipeline Ltd. 57,716 1,469 1,581..

Ithaca Energy Inc. 64,100 58 80..

Keyera Corp. 132,500 5,060 5,236..

Macro Enterprises Inc. 89,900 321 144..

Mullen Group Ltd. 145,973 2,049 2,058..

Northern Blizzard Resources Inc. 91,400 429 433..

Nuvista Energy Ltd. 106,100 628 663..

Painted Pony Petroleum Ltd., Class 'A' 4,500 34 34..

Parex Resources Inc. 462,884 5,020 5,791..

Parkland Fuel Corp. 11,500 264 259..

Pembina Pipeline Corp. 400 15 16..

Penn West Petroleum Ltd. 113,300 163 204..

Peyto Exploration & Development Corp. 43,400 1,256 1,505..

PHX Energy Services Corp. 906,614 4,855 2,439..

Precision Drilling Corp. 489,500 2,808 3,353..

Raging River Exploration Inc. 398,440 3,080 4,096..

RMP Energy Inc. 539,400 819 669..

Rock Energy Inc. 8,200 12 7..

Savanna Energy Services Corp. 1,574,114 3,000 2,582..

Secure Energy Services Inc. 98,727 1,148 872..

Seven Generations Energy Ltd., Class 'A' 152,449 3,194 3,759..

ShawCor Ltd. 23,868 1,108 764..

Storm Resources Ltd. 68,166 289 276..

Suncor Energy Inc. 2,069,381 71,012 74,167..

Surge Energy Inc. 713,300 1,659 1,819..

Tamarack Valley Energy Ltd. 69,400 267 255..

Tidewater Midstream and Infrastructure Ltd. 1,151,500 1,564 1,451..

TORC Oil & Gas Ltd. 15,200 124 125..

Total Energy Services Inc. 280,643 4,074 3,637..

Tourmaline Oil Corp. 156,618 4,964 5,327..

TransCanada Corp. 1,202,584 61,280 70,303..

TransCanada Corp., Subscription Receipts 130,449 5,968 7,608..

TransGlobe Energy Corp. 113,500 373 270..

Trican Well Service Ltd. 288,200 389 712..

Trilogy Energy Corp. 96,500 391 528..

Trinidad Drilling Ltd. 813,899 2,431 2,067..

Veresen Inc. 1,031,745 9,597 11,298..

Vermilion Energy Inc. 140,760 6,809 5,791..

Western Energy Services Corp. 292,886 2,092 958..

ZCL Composites Inc. 1,500 14 13..

....

446,945 463,063 18.5%..x

Financials..

AGF Management Ltd., Class 'B' 16,900 85 85..

Alaris Royalty Corp. 37,100 1,154 1,064..

Allied Properties REIT 64,700 2,143 2,503..

Altus Group Ltd. 18,800 408 419..

Bank of Montreal 445,151 29,889 36,480..

Bank of Nova Scotia 1,237,852 68,514 78,368..

Boardwalk REIT 349,018 18,782 20,090..

Brookfield Asset Management Inc., Class 'A' 1,080,047 47,094 46,161..

Brookfield Canada Office Properties 1,500 42 43..

Canaccord Genuity Group Inc. 248,153 1,146 1,221..

Canadian Apartment Properties REIT 30,200 914 1,001..

Canadian Imperial Bank of Commerce 669,924 56,946 65,009..

Canadian Western Bank 301,031 7,790 7,420..

Choice Properties REIT 400 7 6..

Colliers International Group Inc. 57,622 2,730 2,542..

Cominar REIT 691,786 11,084 11,650..

CREIT 600 28 29..

Crombie REIT 104,000 1,453 1,596..

CT REIT 23,700 318 351..

Dream Global REIT 64,100 561 601..

Dream Industrial REIT 30,000 241 262..

Dream Office REIT 1,178,736 26,655 21,901..

Dream Unlimited Corp., Class 'A' 1,500 12 12..

Echelon Financial Holdings Inc. 141,257 2,041 1,682..

E-L Financial Corp. Ltd. 7,550 4,860 5,228..

Element Financial Corp. 1,954,588 28,415 26,778..

Equitable Group Inc. 84,831 5,106 4,750..

Fairfax Financial Holdings Ltd. 1,600 1,046 1,113..

Fairfax India Holdings Corp. 48,300 629 662..

Fiera Capital Corp. 8,500 111 109..

Firm Capital Mortgage Investment Corp. 7,400 96 102

6




SecurityNumber

of Shares

AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets..

First Capital Realty Inc. 137,000 2,789 3,036..

First National Financial Corp. 21,000 548 629..

FirstService Corp. 49,400 2,601 2,919..

Genworth MI Canada Inc. 300 10 10..

GMP Capital Inc. 9,900 44 52..

Granite Real Estate Investment Trust, Stapled Units 655,901 25,829 25,416..

Great-West Lifeco Inc. 5,900 209 201..

Guardian Capital Group Ltd., Class 'A' 20,900 166 444..

H&R REIT 714,922 14,948 16,093..

Home Capital Group Inc. 76,352 3,206 2,445..

IGM Financial Inc. 15,500 563 545..

Industrial Alliance Insurance and Financial Services Inc. 310,705 12,056 12,618..

INFOR Acquisition Corp., Class 'A', Restricted 70,400 688 690..

INFOR Acquisition Corp., Class 'A', Warrants, 2020/07/06 34,800 16 14..

InnVest REIT 30,900 154 215..

Intact Financial Corp. 134,700 10,836 12,432..

InterRent REIT 8,500 61 67..

Killam Apartment REIT 159,800 1,882 2,028..

Laurentian Bank of Canada 100,814 4,989 4,863..

Mainstreet Equity Corp. 100 3 4..

Manulife Financial Corp. 3,587,834 72,256 63,397..

Melcor Developments Ltd. 224,871 3,819 3,258..

Milestone Apartments REIT 228,800 3,701 4,322..

Morguard North American Residential REIT 7,500 79 94..

Morguard REIT 1,500 22 22..

National Bank of Canada 108,700 4,719 4,803..

Northview Apartment REIT 300 6 7..

NorthWest Healthcare Properties REIT 800 8 8..

OneREIT 22,900 70 90..

Onex Corp. 43,300 3,092 3,421..

Plaza Retail REIT 19,900 95 97..

Power Corp. of Canada 133,900 4,133 3,682..

Power Financial Corp. 282,470 9,002 8,375..

Pure Industrial Real Estate Trust 46,000 226 237..

RioCan REIT 37,900 1,093 1,112..

Royal Bank of Canada 1,798,228 118,329 137,277..

Slate Office REIT 1,700 14 13..

Smart REIT 91,100 2,803 3,480..

Sun Life Financial Inc. 1,345,458 46,977 57,101..

TMX Group Ltd. 9,900 493 532..

Toronto-Dominion Bank (The) 1,949,877 90,018 108,179..

Tricon Capital Group Inc. 133,900 1,078 1,165..

Westaim Corp. (The) 126,100 410 327..

WPT Industrial REIT 72,521 1,018 1,033..

....

765,359 825,991 32.9%..x

Health Care..

Chartwell Retirement Residences 125,200 1,550 1,974..

Concordia International Corp. 4,600 224 128..

CRH Medical Corp. 7,300 30 37..

Extendicare Inc. 314,300 2,776 2,558..

Medical Facilities Corp. 16,500 256 313..

ProMetic Life Sciences Inc. 3,343,004 9,559 9,327..

QLT Inc. 44,600 216 83..

Savaria Corp. 43,700 341 349..

Sienna Senior Living Inc. 83,100 1,338 1,424..

Valeant Pharmaceuticals International Inc. 144,280 10,137 3,758..

....

26,427 19,951 0.8%..x

Industrials..

Aecon Group Inc. 100,400 1,531 1,765..

Algoma Central Corp. 210,629 3,481 2,370..

ATS Automation Tooling Systems Inc. 19,800 197 192..

Bird Construction Inc. 235,138 2,847 3,144..

Black Diamond Group Ltd. 138,200 978 745..

Boyd Group Income Fund 51,863 2,503 3,851..

CAE Inc. 170,061 2,489 2,655..

Canadian National Railway Co. 675,910 45,354 51,565..

Canadian Pacific Railway Ltd. 324,450 58,682 53,966..

Chorus Aviation Inc. 773,788 4,329 4,643..

DirectCash Payments Inc. 200 2 3..

Dirtt Environmental Solutions Ltd. 67,900 449 365..

ENTREC Corp. 1,546,540 696 448..

Exchange Income Corp. 24,100 624 752..

Exco Technologies Ltd. 237,989 3,392 2,903..

Finning International Inc. 302,420 6,705 6,363..

Hammond Power Solutions Inc. 237,166 1,618 1,651..

Hardwoods Distribution Inc. 69,900 610 1,096..

Héroux-Devtek Inc. 17,750 223 266..

HNZ Group, Inc. 124,064 2,166 1,613..

Horizon North Logistics Inc. 104,700 257 170..

MacDonald, Dettwiler and Associates Ltd. 30,300 2,555 2,553..

Magellan Aerospace Corp. 36,200 618 652..

Morneau Shepell Inc. 90,400 1,499 1,604..

New Flyer Industries Inc. 124,745 3,799 5,018

7




SecurityNumber

of Shares

AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets..

Ritchie Bros. Auctioneers Inc. 84,300 3,110 3,681..

Rocky Mountain Dealerships Inc. 362,406 3,079 2,551..

Russel Metals Inc. 324,580 7,710 7,426..

Savaria Corp. 8,000 66 66..

SNC-Lavalin Group Inc. 252,075 11,717 13,678..

Stantec Inc. 6,200 207 194..

Stuart Olson Inc. 1,100 7 6..

Toromont Industries Ltd. 52,600 1,728 1,980..

Transcontinental Inc., Class 'A' 485,264 8,535 8,497..

Waste Connections Inc. 63,248 5,201 5,904..

WestJet Airlines Ltd. 238,554 5,651 5,029..

Westshore Terminals Investment Corp. 38,300 657 717..

WSP Global Inc. 29,281 1,071 1,157..

....

196,343 201,239 8.0%..x

Information Technology..

Absolute Software Corp. 35,700 313 247..

BlackBerry Ltd. 897,700 9,799 7,783..

Calian Technologies Ltd. 89,505 1,679 1,768..

Celestica Inc. 570,400 7,232 6,856..

CGI Group Inc., Class 'A' 559,753 26,916 30,893..

Computer Modelling Group Ltd. 14,600 180 151..

Constellation Software Inc. 32,800 10,541 16,400..

Descartes Systems Group Inc. (The) 78,100 1,589 1,930..

DH Corp. 356,438 13,222 11,445..

Enghouse Systems Ltd. 61,900 3,172 3,391..

Evertz Technologies Ltd. 1,900 31 35..

Kinaxis Inc. 51,500 1,762 2,672..

Mitel Networks Corp. 373,611 3,889 3,030..

Open Text Corp. 188,300 11,428 14,384..

Sandvine Corp. 243,299 689 647..

Shopify Inc., Class 'A' 21,800 802 867..

Wi-LAN Inc. 210,925 486 692..

....

93,730 103,191 4.1%..x

Materials..

Agnico Eagle Mines Ltd. 207,286 8,412 14,332..

Agrium Inc. 196,522 16,726 22,971..

Alacer Gold Corp. 288,400 803 888..

Alamos Gold Inc., Class 'A' 470,501 2,543 5,227..

Argonaut Gold Inc. 87,600 211 333..

Asanko Gold Inc. 194,300 736 960..

B2Gold Corp. 277,500 746 899..

Banro Corp. 12,900 6 5..

Barrick Gold Corp. 1,899,478 32,740 52,388..

Brampton Brick Ltd., Class 'A' 61,003 433 499..

Canam Group Inc., Class 'A' 63,706 758 830..

Canexus Corp. 1,108,849 1,460 1,408..

Canfor Pulp Products Inc. 569,116 7,861 5,879..

Capstone Mining Corp. 586,800 302 499..

Cascades Inc. 83,200 841 761..

CCL Industries Inc., Class 'B' 107,741 18,645 24,225..

Centerra Gold Inc. 668,100 4,453 5,144..

China Gold International Resources Corp. Ltd. 25,100 57 59..

Continental Gold Inc. 57,600 107 209..

Dalradian Resources Inc. 13,000 15 13..

Detour Gold Corp. 229,200 3,162 7,408..

Dominion Diamond Corp. 20,500 322 234..

Eldorado Gold Corp. 5,600 24 33..

Endeavour Mining Corp. 113,000 1,764 2,478..

Endeavour Silver Corp. 131,900 495 670..

First Majestic Silver Corp. 312,500 3,308 5,484..

First Quantum Minerals Ltd. 347,780 2,881 3,154..

Fortuna Silver Mines Inc. 486,900 2,313 4,397..

Franco-Nevada Corp. 295,962 18,621 29,075..

Goldcorp Inc. 859,138 20,861 21,238..

Great Panther Resources Ltd. 250,400 431 536..

Guyana Goldfields Inc. 145,900 736 1,351..

Hudbay Minerals Inc. 157,910 1,259 974..

IAMGOLD Corp. 625,800 1,975 3,348..

Imperial Metals Corp. 15,800 67 101..

Intertape Polymer Group Inc. 327,939 5,722 6,913..

Ivanhoe Mines Ltd., Class 'A' 168,100 179 170..

Kinross Gold Corp. 612,300 2,374 3,882..

Kirkland Lake Gold Inc. 355,600 2,120 3,784..

Labrador Iron Ore Royalty Corp. 487,054 7,099 6,044..

Lithium Americas Corp. 186,100 158 203..

Lucara Diamond Corp. 230,700 725 803..

Lundin Mining Corp. 1,819,196 7,515 7,932..

MAG Silver Corp. 130,200 1,519 2,121..

Major Drilling Group International Inc. 572,259 3,461 4,475..

Methanex Corp. 25,100 1,263 944..

Nevsun Resource Ltd. 157,800 693 598..

New Gold Inc. 298,621 1,173 1,687..

Newmarket Gold Inc. 46,700 177 177

8




SecurityNumber

of Shares

AverageCost

($000s)

FairValue

($000s)

% ofNet

Assets..

Norbord Inc. 24,100 620 609..

NovaGold Resources Inc. 466,300 2,278 3,688..

OceanaGold Corp. 246,900 954 1,217..

Orbite Technologies Inc. 8,900 3 3..

Osisko Gold Royalties Ltd. 106,300 1,589 1,795..

Osisko Mining Inc. 5,800 12 13..

Pan American Silver Corp. 573,000 7,916 12,193..

Pilot Gold Inc. 1,500 1 1..

Potash Corp. of Saskatchewan Inc. 485,750 17,019 10,201..

Premier Gold Mines Ltd. 289,700 844 1,110..

Pretium Resources Inc. 170,000 1,482 2,458..

Richmont Mines Inc. 281,000 1,682 3,369..

Sabina Gold & Silver Corp. 79,600 122 88..

SEMAFO Inc. 1,120,058 4,747 6,944..

Sherritt International Corp. 1,613,488 2,969 1,291..

Silver Standard Resources Inc. 271,900 2,269 4,560..

Silver Wheaton Corp. 43,600 1,170 1,326..

Silvercorp Metals Inc. 192,000 370 564..

Stella-Jones Inc. 23,400 1,121 1,126..

Stornoway Diamond Corp. 71,500 69 68..

Tahoe Resources Inc. 225,688 3,747 4,367..

Taseko Mines Ltd. 39,000 21 25..

Teck Resources Ltd., Class 'B' 541,840 11,274 9,217..

Teranga Gold Corp. 3,100 3 4..

Thompson Creek Metals Co. Inc. 48,400 18 26..

Torex Gold Resources Inc. 50,300 95 116..

Turquoise Hill Resources Ltd. 645,100 2,321 2,819..

West Fraser Timber Co. Ltd. 12,000 745 453..

Western Forest Products Inc. 2,725,380 5,934 5,560..

Winpak Ltd. 16,103 662 764..

Yamana Gold Inc. 320,640 1,171 2,155..

....

263,480 335,873 13.5%..x

Telecommunication Services..

BCE Inc. 577,340 26,410 35,299..

Manitoba Telecom Services Inc. 103,200 3,102 3,914..

Rogers Communications Inc., Class 'B' 534,190 26,571 27,938..

TELUS Corp. 1,000,541 35,010 41,623..

TeraGo Inc. 89,939 494 463..

....

91,587 109,237 4.4%..x

Utilities..

Algonquin Power & Utilities Corp. 158,300 1,684 1,882..

ATCO Ltd., Class 'I' 122,178 5,184 5,537..

Atlantic Power Corp. 179,097 541 570..

Boralex Inc., Class 'A' 116,100 1,572 2,261..

Brookfield Infrastructure Partners L.P. 17,200 330 1,005..

Brookfield Renewable Partners L.P. 38,738 1,358 1,490..

Canadian Utilities Ltd., Class 'A' 7,400 275 277..

Capital Power Corp. 422,910 9,727 8,154..

Crius Energy Trust 1,200 11 10..

Emera Inc. 102,600 4,637 4,988..

Fortis Inc. 1,900 82 83..

Hydro One Ltd. 35,000 854 909..

Innergex Renewable Energy Inc. 71,000 1,010 1,029..

Just Energy Group Inc. 330,400 2,874 2,590..

Northland Power Inc. 165,900 3,447 3,683..

Polaris Infrastructure Inc. 200 2 2..

Superior Plus Corp. 57,100 578 609..

TransAlta Corp. 3,021,396 24,760 20,304..

TransAlta Renewables Inc. 75,700 929 1,011..

Valener Inc. 34,500 714 756..

....

60,569 57,150 2.3%..

..

TOTAL CANADIAN EQUITIES 2,175,616 2,380,907 95.1%..x

INTERNATIONAL EQUITIES..

Bermuda..

Brookfield Business Partners L.P. 11,704 407 287..

....

407 287 0.0%..x

United States..

Brookfield Property Partners L.P. 19,600 580 569..

....

580 569 0.0%..

..

TOTAL INTERNATIONAL EQUITIES 987 856 0.0%..

..

TOTAL EQUITIES 2,176,603 2,381,763 95.1%..

..

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 2,176,603 2,381,763 95.1%..

9




SecurityCoupon

Rate (%)Maturity

Date Additional Details Par Value

AverageCost

($000s)

FairValue

($000s)

% ofNet

Assetsx

SHORT-TERM INVESTMENTS..

Government of Canada 0.47% 2016/07/14 Treasury Bill 11,275,000 11,261 11,273..







..

..

TOTAL SHORT-TERM INVESTMENTS 110,666 110,721 4.4%..

..

Less: Transaction costs included in average cost (2,299).

..

..

TOTAL INVESTMENTS 2,284,970 2,492,484 99.5%..

..

Margin 1,584 0.1%..

Derivative liabilities (500) (0.1)%..

Other Assets, less Liabilities 10,305 0.5%..

..

..

TOTAL NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS 2,503,873 100.0%

.

...

x

x

Schedule of Derivative Assets and Liabilities - Options

Security Expiry Date Strike PriceNumber of

Options

UnderlyingInterest on Equity

OptionsProceeds

($000s)

FairValue

($000s)x..

Written Call Options..

Agnico Eagle Mines Ltd. 2016/09/17 $ 66.00 CAD (560) (56,000) (281) (403)..

Franco-Nevada Corp. 2016/07/16 $ 74.00 CAD (40) (4,000) (34) (97)......

Total Written Options (315) (500)..

..

Derivative Assets and Liabilities - Options (315) (500)..

10



Supplemental Schedule to Schedule of Investment Portfolio (unaudited)

Offsetting Arrangements (note 2d)

The Pool may enter into various master netting arrangements or other similar agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allowfor the related amounts to be set off in certain circumstances, such as bankruptcy or the termination of the contracts.

As at June 30, 2016 and December 31, 2015, the Pool did not enter into any arrangements whereby the financial instruments were eligible for offset.

Interests in Underlying Funds (note 4)As at June 30, 2016 and December 31, 2015, the Pool had no investments in underlying funds where the ownership exceeded 20% of each underlying fund.

11



Financial Instrument RisksInvestment Objective: Imperial Canadian Equity Pool (the Pool) seeks to provide long-termgrowth through capital appreciation by investing primarily in equity securities of Canadianissuers including preferred shares, warrants, securities convertible into equity securities,and other common share equivalents.

Investment Strategies: The Pool invests primarily in high-quality small-, medium-, andlarge-capitalization Canadian corporations and exchange-traded funds (ETFs) in order toachieve its investment objectives and employs a combination of investment styles thatmay include growth, value, core, income-generating, and passive strategies when makinginvestment decisions.

Significant risks that are relevant to the Pool are discussed here. General information onrisk management and specific discussion on concentration, credit, currency, interest rate,liquidity, and other price/market risk can be found in note 2 of the financial statements.

In the following risk tables, Net Assets is defined as meaning “Net assets attributable toholders of redeemable units".

Concentration Risk as at June 30, 2016 and December 31, 2015The Schedule of Investment Portfolio presents the securities held by the Pool as at June30, 2016.The following table presents the investment sectors held by the Pool as at December 31,2015 and groups the securities by asset type, industry sector, geographic region, orcurrency exposure:

As at December 31, 2015

Portfolio Breakdown% of Net

Assetsx

x

Canadian Equitiesx

Consumer Discretionary 7.8x

Consumer Staples 4.9x

Energy 15.6x

Financials 36.5x

Health Care 1.7x

Industrials 9.0x

Information Technology 4.9x

Materials 9.4x

Telecommunication Services 4.2x

Utilities 1.6x

Short-Term Investments 4.4xxx

Total 100.0xx

Credit RiskCredit ratings represent a consolidation of the ratings provided by various outside serviceproviders and are subject to change, which could be material.

See the Schedule of Investment Portfolio for counterparty from over-the-counterderivative contracts, where applicable.

As at June 30, 2016 and December 31, 2015, the Pool invested in debt securities with thefollowing credit ratings:

.

% of Net Assets

Debt Securities by Credit Rating (note 2b) June 30, 2016 December 31, 2015x

x

'AAA' 4.4 4.3x

'AA' – 0.1xxx

Total 4.4 4.4xx

Currency RiskThe tables that follow indicate the currencies to which the Pool had significant exposureas at June 30, 2016 and December 31, 2015, based on the market value of the Pool'sfinancial instruments (including cash and cash equivalents) and the underlying principalamounts of forward foreign currency contracts, as applicable.

As at June 30, 2016

Currency (note 2l)Total Currency

Exposure* ($000s)% of

Net Assetsx

x

USD 2,792 0.1xxx

* Amounts reflect the carrying value of monetary and non-monetary items (including the notionalamount of forward foreign currency contracts, if any).

As at December 31, 2015

Currency (note 2l)Total Currency

Exposure* ($000s)% of

Net Assetsx

x

USD 4,828 0.2xxx

* Amounts reflect the carrying value of monetary and non-monetary items (including the notionalamount of forward foreign currency contracts, if any).

The table that follows indicates how net assets as at June 30, 2016 and December 31,2015 would have decreased or increased had the Canadian dollar strengthened orweakened by 1% in relation to all foreign currencies. This analysis assumes that all othervariables remain unchanged. In practice, the actual results may differ from this analysisand the difference could be material.


x

Impact on Net Assets ($000s) 28 48xx

Interest Rate RiskAs at June 30, 2016 and December 31, 2015, the majority of the Pool’s financial assetsand liabilities are non-interest bearing and short-term in nature; accordingly, the Pool isnot subject to significant amounts of risk due to fluctuations in the prevailing levels ofmarket interest rates.

Liquidity RiskLiquidity risk is the risk that the Pool will encounter difficulty in meeting obligationsassociated with financial liabilities. The Pool is exposed to daily cash redemptions ofredeemable units. The Pool maintains sufficient cash on hand to fund anticipatedredemptions.

With the exception of derivative contracts, where applicable, all of the Pool’s financialliabilities are short-term liabilities maturing within 90 days after the period end.

For pools that hold derivative contracts with a term-to-maturity that exceeds 90 days fromthe period end, further information related to those contracts can be referenced in thederivative schedules following the Schedule of Investment Portfolio.

Other Price/Market RiskThe table that follows indicates how net assets as at June 30, 2016 and December 31,2015 would have increased or decreased had the value of the Pool’s benchmark(s)increased or decreased by 1%. This change is estimated based on the historicalcorrelation between the return of Class A units of the Pool as compared to the return ofthe Pool’s benchmark(s), using 36 monthly data points, as available, based on the monthlynet returns of the Pool. This analysis assumes that all other variables remain unchanged.The historical correlation may not be representative of the future correlation and,accordingly, the impact on net assets could be materially different..

Impact on Net Assets ($000s)

Benchmark June 30, 2016 December 31, 2015x

x

S&P/TSX Composite Index 25,270 21,847xxx

90% S&P/TSX Composite Index10% S&P/TSX Small Cap Index

24,036 21,193xx

Fair Value Measurement of Financial InstrumentsThe following is a summary of the inputs used as at June 30, 2016 and December 31,2015 in valuing the Pool’s financial assets and financial liabilities, carried at fair value:

As at June 30, 2016Level 1 (i) Level 2 (ii) Level 3 (iii) Total

Classification ($000s) ($000s) ($000s) ($000s)xx

Financial Assetsx

Short-Term Investments – 110,721 – 110,721x

Equities 2,373,802 7,961 – 2,381,763xxx

Total Financial Assets 2,373,802 118,682 – 2,492,484xx

x

Financial Liabilitiesx

Derivative liabilities (500) – – (500)xxx

Total Financial Liabilities (500) – – (500)xx

x

Total Financial Assets and Liabilities 2,373,302 118,682 – 2,491,984xx

x

(i) Quoted prices in active markets for identical assetsx

(ii) Significant other observable inputsx

(iii) Significant unobservable inputs

12



As at December 31, 2015Level 1 (i) Level 2 (ii) Level 3 (iii) Total

Classification ($000s) ($000s) ($000s) ($000s)xx

Financial Assetsx

Short-Term Investments – 97,394 – 97,394x

Equities 2,083,517 21,785 – 2,105,302xxx

Total Financial Assets 2,083,517 119,179 – 2,202,696xx

x

(i) Quoted prices in active markets for identical assetsx

(ii) Significant other observable inputsx

(iii) Significant unobservable inputs

Transfer of assets between Level 1 and Level 2Financial assets and liabilities transferred from Level 1 to Level 2 are the result ofsecurities no longer being traded in an active market..


x

Fair value of assets transferred from Level 1 toLevel 2 during the period ($000s) – 5,723

x

x

Financial assets and liabilities transferred from Level 2 to Level 1 are the result ofsecurities now being traded in an active market.

For the periods ended June 30, 2016 and December 31, 2015, there were no transfers offinancial assets and liabilities from Level 2 to Level 1.

Reconciliation of financial asset and liability movement – Level 3The Pool did not hold any significant positions of Level 3 investments at the beginning of,during, or at the end of either reporting period.

13

Notes to Financial Statements (unaudited)

x

As at and for the periods as disclosed in the financial statements (note 1)

1. Organization of the Funds and Financial Reporting Periods

The Imperial Pools consist of Imperial Money Market Pool, Imperial Short-Term Bond Pool, Imperial Canadian Bond Pool, Imperial Canadian Diversified Income Pool, Imperial International Bond Pool, Imperial EquityHigh Income Pool, Imperial Canadian Dividend Income Pool, Imperial Global Equity Income Pool, Imperial Canadian Equity Pool, Imperial U.S. Equity Pool, Imperial International Equity Pool, Imperial Overseas Equity Pool,and Imperial Emerging Economies Pool (individually, a Pool, and collectively, the Pools).

Conservative Income Portfolio, Balanced Income Portfolio and Enhanced Income Portfolio (individually, a Portfolio, and collectively, the Portfolios) were established on December 14, 2015.

Each of the Imperial Pools and Portfolios (individually, a Fund, and collectively, the Funds) is a mutual fund trust organized under the laws of Ontario and governed by a declaration of trust (Declaration of Trust). Theaddress of the Funds' registered office is 18 York Street, Suite 1300, Toronto, Ontario.

Canadian Imperial Bank of Commerce (CIBC) is the manager (the Manager) of the Funds and CIBC Trust Corporation is the trustee (the Trustee) of the Funds. Each Fund may issue an unlimited number of classes ofunits and an unlimited number of units of each class. As at the date of these financial statements, Class A units of each of the Funds are available for sale, except for the Conservative Income Portfolio which offersClass T3 and Class T4 units, the Balanced Income Portfolio which offers Class T4 and Class T5 units, and the Enhanced Income Portfolio which offers Class T5 and Class T6 units.

The date upon which each Fund was established by Declaration of Trust (Date Established) and the date upon which units of each Fund was first sold to the public (Inception Date) are reported in footnote Organizationof the Fund on the Statements of Financial Position.

The Schedule of Investment Portfolio of each Fund is as at June 30, 2016. The Statements of Financial Position of each of the Funds are as at June 30, 2016 and December 31, 2015. The Statements of ComprehensiveIncome, Statements of Changes in Net Assets Attributable to Holders of Redeemable Units, and Statements of Cash Flows of each of the Funds are for the six-month periods ended June 30, 2016 and December 31,2015, except for Funds established during either year, in which case the information presented is from the Date Established or the Inception Date to June 30, 2016 or 2015.

These financial statements were approved for issuance by the Manager on August 18, 2016.xx

2. Summary of Significant Accounting Policies

These financial statements have been prepared in accordance with International Accounting Standards Interim Financial Reporting (IAS 34) as published by the International Accounting Standards Board (IASB).The Funds adopted IFRS in 2014 as required by Canadian securities legislation and the Canadian Accounting Standards Board. Previously, the Funds prepared their financial statements in accordance with Canadiangenerally accepted accounting principles (GAAP) as defined in Part V of the CPA Canada Handbook.

The financial statements have been prepared on a going concern basis using the historical cost convention. However, each Fund is an investment entity and primarily all financial assets and financial liabilities aremeasured at fair value in accordance with IFRS. Accordingly, the Funds’ accounting policies for measuring the fair value of investments and derivatives are consistent with those used in measuring the Net Asset Valuefor transactions with unitholders. In applying IFRS, these financial statements include estimates and assumptions made by management that affect the reported amounts of assets, liabilities, income, and expensesduring the reporting periods. However, existing circumstances and assumptions may change due to market changes or circumstances arising beyond the control of the Funds. Such changes are reflected in theassumptions when they occur.

These financial statements have been presented in Canadian dollars, which is the Funds’ functional currency (unless otherwise noted).

a) Financial Instruments

Classification and recognition of financial instruments

In accordance with IAS 39 Financial Instruments: Recognition and Measurement, financial assets and financial liabilities are classified at initial recognition into the following categories:

Financial assets and liabilities at fair value through profit or loss (FVTPL)

This category is sub-divided into:

l Financial instruments classified as Held For Trading: Financial assets and liabilities are classified as Held For Trading if they are acquired for the purpose of selling and/or repurchasing in the near term, andare acquired principally for the purpose of generating a profit from short-term fluctuations in price. Derivatives and securities sold short held by the Funds are classified as Held For Trading and do not meetthe definition of effective hedging instruments as defined by IAS 39.

l Financial instruments designated as FVTPL through inception: All investments held by the Funds, excluding those classified as Held For Trading (discussed above), are designated as fair value through profitor loss upon initial recognition. These financial assets are designated upon initial recognition on the basis that they are part of a group of financial assets that are managed and have their performanceevaluated on a fair value basis, in accordance with risk management and investment strategies of the Funds, as set out in the Funds’ prospectus.

Loans and receivables

The Funds include in this category receivable balances relating to portfolio investments and other short-term receivables such as receivable for units issued.

Other financial liabilities

This category includes all financial liabilities, other than those classified as fair value through profit or loss. The Funds include in this category amounts relating to payables for portfolio securities purchased and otheraccrued liabilities such as payable for units redeemed and distributions payable to holders of redeemable units.

All Funds have contractual obligations to distribute cash to the unitholders. As a result, each Fund's obligation for net assets attributable to holders of redeemable units represents a financial liability and is presentedat the redemption amount.

b) Risk Management

The Funds’ overall risk management approach includes formal guidelines that govern the extent of exposure to various types of risk, including diversification within asset classes and limits on the exposure to individualinvestments and counterparties. In addition, derivative financial instruments may be used to manage certain risk exposures. The Manager also has various internal controls to oversee the Funds’ investment activities,including monitoring compliance with the investment objectives and strategies, internal guidelines, and securities regulations. Please refer to each Fund’s Supplemental Schedule to Schedule of InvestmentPortfolio for specific risk disclosures.

Fair value of financial instruments by using valuation techniques

Financial instruments are valued at their fair value which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at themeasurement date. Refer to note 3a to 3f for valuation of each specific type of financial instrument held by the Funds. The fair value of financial assets and liabilities traded in active markets are based on quotedmarket prices at the close of trading on the reporting date. The Funds use the last traded market price for both financial assets and financial liabilities where the last traded price falls within that day’s bid-ask spread.In circumstances where the last traded price is not within the bid-ask spread, the Manager determines the price that is most representative of fair value based on the specific facts and circumstances.

For financial assets and financial liabilities that are not traded in an active market, fair value is determined using valuation techniques.

The Funds classify fair value measurement within a hierarchy which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority tounobservable inputs (Level 3). The three levels of the fair value hierarchy are:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3: Inputs are unobservable for the asset or liability.

14

p / 2 Notes to Financial Statements (unaudited)

If inputs are used to measure an asset’s or liability’s fair value, the classification within the hierarchy is based on the lowest level input that is significant to the fair value measurement. Each Fund’s fair value hierarchyclassification of its assets and liabilities is included in the Supplemental Schedule to Schedule of Investment Portfolio.

The carrying values of all non-investment assets and liabilities approximate their fair values due to their short-term nature. Fair values are classified as Level 1 when the related security or derivative is actively tradedand a quoted price is available. If an instrument classified as Level 1 subsequently ceases to be actively traded, it is transferred out of Level 1. In such cases, instruments are 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.

The Manager is responsible for performing the fair value measurements included in the financial statements of a Fund, including the Level 3 measurements. The Manager obtains pricing from third-party pricingvendors and the pricing is reviewed daily. At each financial reporting date, the Manager reviews and approves all Level 3 fair value measurements. The Funds also have a Valuation Committee which meets quarterly toperform detailed reviews of the valuations of investments held by the Funds, which includes discussion on Level 3 measurements.

Credit risk

Credit risk is the risk that a counterparty to a financial instrument, such as a fixed income security or a derivative contract, will fail to discharge an obligation or commitment that it has entered into with the Funds. Thevalue of fixed income securities and derivatives as presented on the Schedule of Investment Portfolio includes consideration of the creditworthiness of the issuer and, accordingly, represents the maximum credit riskexposure of the Funds. Certain Funds may invest in short-term fixed income securities issued or guaranteed primarily by the Government of Canada or any Canadian provincial government, obligations of Canadianchartered banks or trust companies, and commercial paper with approved credit ratings. The risk of default on these short-term fixed income securities is considered low and these securities primarily have creditratings of ‘A-1 (Low)’ or higher (as rated by S&P Global Ratings, a division of S&P Global, or equivalent rating from another rating service).

The bond ratings noted in the Funds’ ‘Financial Instruments Risk’ under sub-section ‘Credit Risk’ represent ratings collected and disseminated by recognized third party vendors. These ratings utilized by the Manager,while obtained from vendors skilled and recognized for bond rating services, may not be the same as those used directly by the portfolio advisor or portfolio sub-advisors. Ratings used by the portfolio advisor orportfolio sub-advisors could be higher or lower than those used for risk disclosure in the financial statements in compliance with their investment policy guidelines.

The Funds may engage in securities lending transactions. The credit risk related to securities lending transactions is limited by the fact that the value of cash or securities held as collateral by the Funds in connectionwith these transactions is at least 102% of the fair value of the securities loaned. The collateral and loaned securities are marked to market on each business day. Further information regarding the collateral andsecurities on loan can be found in the footnotes to the Statements of Financial Position and in note 2j.

Currency risk

Currency risk is the risk that the value of an investment will fluctuate due to changes in foreign exchange rates. Mutual funds may invest in securities denominated or traded in currencies other than the funds’reporting currency.

Interest rate risk

Prices of fixed income securities generally increase when interest rates decline and decrease when interest rates rise. This risk is known as interest rate risk. Prices of longer-term fixed income securities will generallyfluctuate more in response to interest rate changes than would shorter-term securities. Due to the nature of short-term fixed income securities with a remaining term-to-maturity of less than one year, theseinvestments are not generally exposed to a significant risk that their value will fluctuate in response to changes in the prevailing levels of market interest rates.

Liquidity risk

The Funds are exposed to daily cash redemptions of redeemable units. Generally, the Funds retain sufficient cash and cash equivalent positions to maintain adequate liquidity. However, liquidity risk also involves theability to sell an asset for cash easily and at a fair price. Some securities are illiquid due to legal restrictions on their resale, the nature of the investment, or simply a lack of interested buyers for a particular security orsecurity type. Certain securities may become less liquid due to changes in market conditions, such as interest rate changes or market volatility, which could impair the ability of a Fund to sell such securities quickly or ata fair price. Difficulty in selling securities could result in a loss or lower return for a Fund.

Other price/market risk

Other price/market risk is the risk that the value of investments will fluctuate as a result of changes in market conditions. Several factors can influence market trends, such as economic developments, changes ininterest rates, political changes, and catastrophic events. All investments are exposed to other price/market risk.

c) Investment Transactions, Income Recognition, and Recognition of Realized and Unrealized Gains and Losses

i) Interest for distribution purposes shown on the Statements of Comprehensive Income represents the coupon interest received by the Fund accounted for on an accrual basis. The Funds do not amortizepremiums paid or discounts received on the purchase of fixed income securities except for zero coupon bonds, which are amortized on a straight-line basis.

ii) Dividend income is recorded on the ex-dividend date.

iii) Securities that are exchange-traded are recorded at fair value established by the last traded market price when that price falls within that day’s bid-ask spread. Debt securities are recorded at fair value,established by the last traded price on the over-the-counter market (OTC) when that price falls within that day’s bid-ask spread. In circumstances where the last traded price is not within the bid-ask spread,the Manager determines the price that is most representative of fair value based on the specific facts and circumstances. Unlisted securities are recorded at fair value using fair valuation techniquesestablished by the Manager in establishing a fair value.

iv) Realized gains and losses on investments and unrealized appreciation or depreciation of investments are calculated using the average cost, excluding transaction costs, of the related investments.

v) Other income is the sum of income, excluding transaction costs, other than that which is separately classified on the Statements of Comprehensive Income.

d) Offsetting

Financial assets and liabilities are offset and the net amount reported in the Statements of Financial Position, if there is a currently enforceable legal right to offset the recognized amounts and there is an intention tosettle on a net basis, or to realize the asset and settle the liability simultaneously.

Where applicable, additional information can be found in the table Offsetting Arrangements as part of the Supplemental Schedule to Schedule of Investment Portfolio. This supplemental schedule discloses the OTCderivatives which are subject to offsetting.

e) Portfolio Securities

The cost of securities of a Fund is determined in the following manner: securities are purchased and sold at a market-traded price to arrive at a value for the position traded. The total purchased value represents thetotal cost of the security to the Fund. When additional units of the same security are purchased, the cost of those additional units is added to the total security cost. When units of the same security are sold, theproportionate cost of the units of the security sold is deducted from the total security cost. If there is a return of capital paid by a security, the amount of this return of capital is deducted from the total security cost.This method of tracking security cost is known as “average cost” and the current total for any one security is referred to as the “adjusted cost base” or “ACB” of the security. Transaction costs incurred in portfoliotransactions are excluded from the average cost of investments and are recognized immediately in net income and are presented as a separate expense item in the financial statements.

The difference between the fair value of securities and their average cost, excluding transaction costs, represents the unrealized appreciation (depreciation) in value of the portfolio investments. The applicable periodchange in unrealized appreciation (depreciation) of investments is included on the Statements of Comprehensive Income.

Short-term investments on the Schedule of Investment Portfolio are presented at their amortized cost which approximates the fair value. Accrued interest for bonds is disclosed separately on the Statements ofFinancial Position.

f) Foreign Exchange

The value of investments and other assets and liabilities denominated in foreign currencies is translated into Canadian dollars, which is the Funds’ functional and presentation currency at the current rates prevailing oneach valuation date (unless otherwise indicated).

Purchases and sales of investments, income, and expenses are translated into Canadian dollars, which is the Funds’ functional and presentation currency at the foreign exchange rates prevailing on the dates of suchtransactions. Foreign currency translation gains (losses) on investments and income transactions are included in Net realized gain (loss) on foreign currency on the Statements of Comprehensive Income.

15

Notes to Financial Statements (unaudited) p / 3

g) Forward Foreign Currency Contracts

The Funds may enter into forward foreign currency contracts for either hedging or non-hedging purposes where such activity is consistent with their investment objectives and as permitted by the Canadian securitiesregulatory authorities.

Changes in the fair value of forward foreign currency contracts are included in derivative assets or derivative liabilities on the Statements of Financial Position and are recorded as an Increase (decrease) in unrealizedappreciation (depreciation) of investments and derivatives during the applicable period on the Statements of Comprehensive Income.

The gain or loss arising from the difference between the value of the original forward foreign currency contract and the value of such contract at close or delivery is realized and recorded as Net realized gain (loss) onforeign currency for Pools that use the forward foreign currency contracts for hedging or as Derivative income (loss) for Pools that do not use the forward foreign currency contracts for hedging.

h) Futures Contracts

The margin deposits with brokers relating to futures contracts are included in Margin on the Statements of Financial Position. Any change in the margin requirement is settled daily and included in Receivable forportfolio securities sold or Payable for portfolio securities purchased on the Statements of Financial Position.

Any difference between the settlement value at the close of business on each valuation date and the settlement value at the close of business on the previous valuation date is recorded as Derivative income (loss) onthe Statements of Comprehensive Income.

i) Options

Premiums paid for purchased call and put options are included in derivative assets and subsequently measured at fair value on the Statements of Financial Position. When a purchased option expires, the Fund willrealize a loss in the amount of the cost of the option. For a closing transaction, the Fund will realize a gain or loss depending on whether the proceeds are greater or less than the premium paid at the time of purchase.When a purchased call option is exercised, the cost of the security purchased is increased by the premium paid at the time of purchase.

Premiums received from writing options are included in derivative liabilities and subsequently measured at fair value on the Statements of Financial Position as initial reductions in the value of investments. Premiumsreceived from writing options that expire unexercised are recorded as realized gains and reported as Net gain (loss) on sale of investments and derivatives on the Statements of Comprehensive Income. For a closingtransaction, if the cost of closing the transaction exceeds the premium received, the Fund will record a realized loss or, if the premium received at the time the option was written is greater than the amount paid,the Fund will record a realized gain and is reported as Net gain (loss) on sale of investments and derivatives. If a written put option is exercised, the cost for the security delivered is reduced by the premiums received atthe time the option was written.

j) Securities Lending

A Fund may lend portfolio securities in order to earn additional revenue, which is disclosed on the Statements of Comprehensive Income. The loaned assets of any one Fund are not permitted to exceed 50% of thefair value of the assets of that Fund (excluding collateral debt for the loaned securities). The minimum allowable collateral is 102% of the fair value of the loaned securities as per the requirements of NationalInstrument 81-102 – Investment Funds. Collateral can consist of the following:

i) Cash.

ii) Qualified securities.

iii) Irrevocable letters of credit issued by a Canadian financial institution that is not the counterparty, or an affiliate counterparty, of the pool in the transaction, if evidences of indebtedness of the Canadianfinancial institution that are rated as short-term debt by an approved credit rating organization have an approved credit rating.

iv) Securities that are immediately convertible into securities of the same issuer, class, or type, and the same term, as the securities loaned.

The fair value of the loaned securities is determined on the close of any valuation date and any additional required collateral is delivered to the Pool on the next business day. The securities on loan continue to beincluded on the Schedule of Investment Portfolio, and are included in the total value on the Statements of Financial Position in Investments (non-derivative financial assets) at fair value. Where applicable, a Fund’ssecurities lending transactions are reported in footnote Securities Lending on the Statements of Financial Position.

Changes to National Instrument 81-106 – Investment Fund Continuous Disclosure took effect for Funds with a financial year beginning on or after January 1, 2016. Those changes now require a reconciliation of thegross amount generated from the securities lending transactions of the Funds to the revenue from securities lending disclosed in the Funds’ Statements of Comprehensive Income. The gross amount generated fromsecurities lending includes interest paid on collateral, withholding taxes deducted, the fees paid to the Funds’ lending agent and the securities lending revenue received by the Funds. Where applicable, thereconciliation can be found in the footnotes to the Funds’ Statements of Comprehensive Income.

k) Loans and Receivables, Other Assets and Liabilities

Loans and Receivables, other assets and liabilities (other than those classified as FVTPL) are recorded at cost, which approximates their fair value, with the exception of Net Assets Attributable to Holders ofRedeemable Units which are presented at the redemption value.

l) Legend of Abbreviations

The following is a list of abbreviations (foreign currency translation and others) that may be used in the Schedule of Investment Portfolio:x

x..x

x

Currency Abbreviations

x..

ARS – Argentine Peso JPY – Japanese Yen..

AUD – Australian Dollar KES – Kenyan Shilling..

BRL – Brazilian Real KRW – South Korean Won..

CAD – Canadian Dollar MAD – Morocco Dirham..

CHF – Swiss Franc MXN – Mexican Peso..

CLP – Chilean Peso MYR – Malaysian Ringgit..

CNY – Chinese Renminbi NOK – Norwegian Krone..

COP – Colombian Peso NZD – New Zealand Dollar..

CZK – Czech Koruna PHP – Philippine Peso..

DKK – Danish Krone PLN – Polish Zloty..

EGP – Egyptian Pound RUB – Russian Ruble..

EUR – Euro SEK – Swedish Krona..

GBP – British Pound SGD – Singapore Dollar..

HKD – Hong Kong Dollar THB – Thai Baht..

HUF – Hungarian Forint TRY – New Turkish Lira..

IDR – Indonesian Rupiah TWD – Taiwan Dollar..

ILS – Israeli Shekel USD – United States Dollar..

INR – Indian Rupee ZAR – South African Rand

16


..

Other Abbreviations

..

ADR – American Depositary Receipt..

CVO – Contingent Value Obligations..

ETF – Exchange-Traded Fund..

GDR – Global Depositary Receipt Securities..

NVDR – Non-Voting Depositary Receiptxxxxxxxx

m) Standards issued but not yet effective

Standards issued but not yet effective up to the date of issuance of the Funds’ financial statements are listed below. The Funds intend to adopt applicable standards when they become effective.

IFRS 9, Financial Instruments - Classification and Measurement

In July 2014, the IASB issued the final version of IFRS 9, Financial Instruments which reflects all phases of the financial instruments project and replaces IAS 39, Financial Instruments: Recognition and Measurementand all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment, and hedge accounting. IFRS 9 is effective for annual periods beginning on or afterJanuary 1, 2018, with early application permitted. The Funds are in the process of assessing the impact of IFRS 9.

n) Increase (Decrease) in Net Assets Attributable to Holders of Redeemable Units per Unit

Increase (decrease) in net assets attributable to holders of redeemable units per unit of each class is calculated by dividing the Increase (decrease) in net assets attributable to holders of redeemable units (excludingdistributions), as reported on the Statements of Comprehensive Income, by the weighted average number of units in issue during the related period.

3. Valuation of Investments

The valuation date (Valuation Date) for a Fund is any day when the Manager’s head office is open for business. The Manager may, at its discretion, establish other Valuation Dates.

The fair value of the investments or assets of a Fund is determined as follows:

a) Cash and Other Assets

Cash, accounts receivable, dividends receivable, distributions receivable, and interest receivable are valued at fair value or at their recorded cost, plus or minus any foreign exchange between recognition of the assetby the Fund and the current Valuation Date, which approximates fair value.

b) Bonds, Debentures, and Other Debt Obligations

Bonds, debentures, and other debt obligations are fair valued using the last traded price provided by a recognized vendor upon the close of trading on a Valuation Date, whereby the last traded price falls within thatday’s bid-ask spread. If the last traded price does not fall within that day’s bid-ask spread, then the Manager will determine the price that is most representative of fair value based on the specific facts andcircumstances.

c) Listed Securities, Unlisted Securities, and Fair Value Pricing of Foreign Securities

Any security that is listed or traded on a securities exchange is fair valued using the last traded price, whereby the last traded price falls within that day’s bid-ask spread or, if there is no traded price on that exchangeor the last traded price does not fall within that day’s bid-ask spread and in the case of securities traded on an OTC market, at the fair value as determined by the Manager as an appropriate basis for valuation. In suchsituations, a fair value will be determined by the Manager to establish current value. If any securities are inter-listed or traded on more than one exchange or market, the Manager will use the principal exchange ormarket for the fair value of such securities.

Units of each mutual fund in which a Fund invests will be valued at fair value using the most recent net asset value quoted by the Trustee or Manager of the mutual fund on the Valuation Date.

Unlisted securities are fair valued using the last traded price quoted by a recognized dealer, or the Manager may determine a price that more accurately reflects the fair value of these securities if the Manager feelsthe last traded price does not reflect fair value.

Fair value pricing is designed to avoid stale prices and to provide a more accurate fair value, and may assist in the deterrence of harmful short-term or excessive trading in the Fund. When securities listed or traded onmarkets or exchanges that close prior to North or South American markets or exchanges are valued by the Manager at their fair market value, instead of using quoted or published prices, the prices of such securitiesused to calculate the Fund’s net assets or net asset value may differ from quoted or published prices of such securities.

d) Derivatives

Long positions in options, debt-like securities, and listed warrants are valued at fair value using the last traded price as established on either their principal trading exchange or by a recognized dealer in such securities,whereby the last traded price falls within that day’s bid-ask spread and the credit rating of each counterparty (as rated by S&P Global Ratings, a division of S&P Global) meets or exceeds the minimum approved creditrating.

When any option is written by any Fund, the premium received by the Fund will be reflected as a liability that will be valued at an amount equal to the current fair value of the option that would have the effect ofclosing the position. Any difference resulting from revaluation shall be treated as an unrealized gain or loss on investment; the liability shall be deducted in arriving at the net assets attributable to holders ofredeemable units of the Fund. The securities that are the subject of a written option, if any, will be valued in the manner described above for listed securities.

Futures contracts, forward contracts, or swaps will be valued at fair value of the gain or loss, if any, that would be realized on the Valuation Date if the position in the futures contracts, forward contracts, or swapswere to be closed out.

Margin paid or deposited in respect of futures contracts and forward contracts will be reflected as an account receivable and margin consisting of assets other than cash will be noted as held as collateral.

Other derivatives and margin are fair valued in a manner that the Manager determines to represent their fair value.

e) Restricted Securities

Restricted securities purchased by any Fund will be fair valued in a manner that the Manager determines to represent their fair value.

f) Other Investments

All other investments of the Funds will be fair valued in accordance with the laws of the Canadian securities regulatory authorities, where applicable.

The value of any security or other property of a Fund for which a market quotation is not readily available or where the market quotations do not properly reflect the fair value of such securities will be determined bythe Manager by valuing the securities at their fair value. In such situations, fair value will be determined using the fair valuation technique that most accurately reflects the fair value as established by the Manager.

4. Interest in Underlying Funds

The Funds may invest in other investment funds (Underlying Funds). Each Underlying Fund invests in a portfolio of assets to generate returns in the form of investment income and capital appreciation for itsunitholders. Each Underlying Fund finances its operations primarily through the issuance of redeemable units, which are puttable at the unitholder's option and entitle the unitholder to a proportionate share of theunderlying fund's net assets. The Fund's interests in Underlying Funds held in the form of redeemable units, are reported in its Schedule of Investments at fair value, which represents the Funds’ maximum exposure onthose investments. The Funds' interests in underlying funds as at the prior year period ends are presented in the Financial Instruments Risks - Concentration Risk section in the Supplemental Schedule to Schedule ofInvestment Portfolio. Distributions earned from Underlying Funds are included in “Investment Income” in the Statements of Comprehensive Income. The total realized and change in unrealized gains (losses) arisingfrom Underlying Funds are also included in the Statement of Comprehensive Income. The Funds do not provide any additional significant financial or other support to Underlying Funds.

Where applicable, the table “Interests in Underlying Funds” presented as part of the Supplemental Schedule to Schedule of Investment Portfolio, provides additional information on the Funds’ investments inUnderlying Funds where the ownership interest exceeds 20% of each Underlying Fund.

17

Notes to Financial Statements (unaudited) p / 5

5. Redeemable Units Issued and Outstanding

Each Fund is permitted to have an unlimited number of classes of units and may issue an unlimited number of units of each class. The outstanding units represent the capital of a Fund. Each unit has no par value andthe value of each unit is the net assets attributable to holders of redeemable units per unit next determined. Settlement of the cost for units issued is completed as per security regulations in place at the time of issue.Distributions made by a Fund and reinvested by unitholders in additional units also constitute issued redeemable units of a Fund.

Units are redeemed at the net assets attributable to holders of a redeemable unit per unit of a Fund. A right to redeem units of a Fund may be suspended with the approval of the Canadian securities regulatoryauthorities or when normal trading is suspended on a stock, options, or futures exchange within Canada or outside of Canada on which securities or derivatives that make up more than 50% of the value or underlyingexposure of the total assets of a Fund, not including any liabilities of a Fund, are traded and when those securities or derivatives are not traded on any other exchange that represents a reasonably practical alternativefor a Fund. The Fund is not subject to any externally imposed capital requirements.

The capital received by a Fund is utilized within the respective investment mandate of the Fund. This includes the ability to make liquidity available to satisfy unitholder unit redemption requirements upon theunitholder’s request.

Changes in issued and outstanding units for the six-month periods ended June 30, 2016 and 2015 can be found on the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units.x

6. Management Fees and Operating Expenses

Management fees are based on the net asset value of the Funds and are calculated daily. Management fees are paid to the Manager in consideration for providing, or arranging for the provision of, management,distribution, and portfolio advisory services. The maximum annual management fee expressed as a percentage of the average net asset value that can be charged by a Fund is reported in footnote MaximumChargeable Annual Management Fee Rates on the Statements of Comprehensive Income.

In addition to the management fees, the Funds are responsible for all expenses relating to the operation and conduct of the business of the Funds, which may include interest, operating, and administrative costs (otherthan advertising and promotional expenses, which are the responsibility of the Manager), brokerage fees, commissions, spreads, regulatory fees, Independent Review Committee fees, taxes, audit and legal fees andexpenses, safekeeping and custodial fees, investor servicing costs, and costs of unitholder reports, prospectuses, and other reports. All such operating expenses are paid by the Manager and recovered from the Funds.The Funds do not pay a fee to the Trustee.

The Manager may recover less than the actual operating expenses paid by the Manager, resulting in the Manager absorbing expenses. The Manager may also charge to a Fund less than the maximum managementfee in footnote Maximum Chargeable Annual Management Fee Rates on the Statements of Comprehensive Income, resulting in the Manager waiving management fees.

At its sole discretion, the Manager may stop absorbing operating expenses and/or waiving management fees at any time. Operating expenses absorbed and/or management fees waived by the Manager are disclosedon the Statements of Comprehensive Income.

In some cases, the Manager may charge management fees to a Fund that are less than the management fees the Manager is entitled to charge in respect of certain investors in a Fund. The difference in the amount ofthe management fees will be paid out by the Fund to the applicable investors as a distribution of additional units of the Fund (Management Fee Distributions). Management Fee Distributions are negotiable betweenthe Manager and the investor and are dependent primarily on the size of the investor’s investment in the Fund. Management Fee Distributions paid to qualified investors do not adversely impact the Fund or any of theFund’s other investors. The Manager may increase or decrease the amount of Management Fee Distributions to certain investors from time to time.

Where a Fund invests in units of an Underlying Fund, the Fund does not pay duplicate management fees on the portion of its assets that it invests in units of the Underlying Fund. In addition, the Fund will not payduplicate sales fees or redemption fees with respect to the purchase or redemption by it of units of the Underlying Fund. Some of the Underlying Funds held by the Funds may offer Management Fee Distributions. SuchManagement Fee Distributions of an Underlying Fund will be paid out as required for taxable distribution payments by a Fund. The manager of an Underlying Fund may, in some cases, waive a portion of an UnderlyingFund’s management fee and/or absorb a portion of an Underlying Fund’s operating expenses.

7. Income Taxes and Withholding Taxes

The Funds qualify as mutual fund trusts under the Income Tax Act (Canada). No income tax is payable by the Funds on net income and/or net realized capital gains that are distributed to unitholders. In addition, incometaxes payable on undistributed net realized capital gains are refundable on a formula basis when units of the Funds are redeemed. Sufficient net income and realized capital gains of the Funds have been, or will be,distributed to the unitholders such that no tax is payable by the Funds and, accordingly, no provision for income taxes has been made in the financial statements. Occasionally, a Fund may pay distributions in excess ofthe net income and net realized capital gains of the Fund. This excess distribution is called a return of capital and is non-taxable to the unitholder. However, a return of capital reduces the average cost of theunitholder’s units for tax purposes, which may result in a capital gain to the unitholder to the extent the average cost becomes less than zero.

Non-capital losses that arose in 2006 and thereafter are available to be carried forward for 20 years.

Capital losses for income tax purposes may be carried forward indefinitely and applied against capital gains realized in future years. Where applicable, a Fund’s net capital and non-capital losses are reported infootnote Net Capital and Non-Capital Losses on the Statements of Changes in Net Assets Attributable to Holders of Redeemable Units.

The Funds have a taxation year-end of December 15 (except Imperial Money Market Pool, which has a taxation year-end of December 31).

The Funds currently incur withholding taxes imposed by certain countries on investment income and capital gains. Such income and gains are recorded on a gross basis and the related withholding taxes are shown asa separate expense in the Statements of Comprehensive Income.

8. Brokerage Commissions and Fees

The total commissions paid by the Funds to brokers in connection with portfolio transactions are reported in footnote Brokerage Commissions and Fees on the Statements of Comprehensive Income of each Fund. Inallocating brokerage business to a dealer, consideration may be given by the portfolio sub-advisors of the Funds for the provision of goods and services by the dealer or a third party, other than order execution (referredto in the industry as “soft dollar” arrangements). These goods and services are paid for with a portion of brokerage commissions and assist the portfolio sub-advisors with their investment decision-making services tothe Funds or relate directly to executing portfolio transactions on behalf of the Funds. The total soft dollar payments paid by the Funds to brokers are reported in footnote Brokerage Commissions and Fees on theStatements of Comprehensive Income of each Fund. In addition, the Manager may enter into commission recapture arrangements with certain dealers with respect to the Fund. Any commission recaptured will be paidto the applicable Fund.

Fixed income and certain other securities are transacted in an OTC market, where participants are dealing as principals. Such securities are generally traded on a net basis and do not normally involve brokeragecommissions, but will typically include a “spread” (being the difference between the bid and the offer prices on the security of the applicable marketplace).

Spreads associated with fixed income securities trading and certain other securities are not ascertainable and, for that reason, are not included in the dollar amounts. In addition, the soft dollar amounts only includethe value of research and other services supplied by a third party to CIBC Asset Management Inc. (CAMI or the Portfolio Advisor) and any portfolio sub-advisors, as the value of the services supplied to the PortfolioAdvisor and any portfolio sub-advisors by the dealer is not ascertainable. When these services benefit more than one Fund, the costs are allocated among the Funds based on transaction activity or some other fairbasis as determined by the Portfolio Advisor and any portfolio sub-advisors.x

9. Related Party Transactions

CIBC and its affiliates have the following roles and responsibilities with respect to the Funds and receive the fees described below in connection with their roles and responsibilities. The Funds may hold securities ofCIBC. CIBC and its affiliates may also be involved in underwriting or lending to issuers of securities that may be held by the Funds, have purchased or sold securities from or to the Funds while acting as principal, havepurchased or sold securities from or to the Funds on behalf of another investment fund managed by CIBC or an affiliate, and also may have been involved as a counterparty to derivative transactions. Management feespayable and other accrued expenses on the Statements of Financial Position are amounts generally payable to a related party of the Fund.

Manager, Trustee, Portfolio Advisor, and certain Portfolio Sub-Advisors of the Funds

CIBC is the Manager, CIBC Trust Corporation is the Trustee, and CAMI is the Portfolio Advisor of each of the Funds. American Century Investment Management, Inc. (ACI) is a portfolio sub-advisor to certain Funds.Although not an affiliate, CIBC had previously owned a 41% equity interest in ACI. On December 21, 2015, CIBC announced that it entered into a definitive agreement to sell its minority position in ACI. The sale wascompleted on May 19, 2016.

The Manager also arranges for fund administrative services (other than advertising and promotional, which are the responsibility of the Manager), legal, investor servicing, and costs of unitholder reports,prospectuses, and other reports. The Manager is the registrar and transfer agent for the Funds and provides, or arranges for the provision of, all other administrative services required by the Funds. The dollar amount

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(including all applicable taxes) of all fund administrative expenses (net of absorptions) that the Manager recovers from a Fund is reported in footnote Administrative and Other Fund Operating Expenses on theStatements of Comprehensive Income.

Brokerage Arrangements and Soft Dollars

The Portfolio Advisor generally delegates trading and execution authority to the portfolio sub-advisors. Where applicable, disclosure of the amounts of soft dollars can be found in the Brokerage Commission andFees schedule on the Statements of Comprehensive Income for each Fund.

The Portfolio Advisor and portfolio sub-advisors make decisions, including the selection of markets and dealers and the negotiation of commissions, with respect to the purchase and sale of portfolio securities, certainderivative products (including futures and forwards), and the execution of portfolio transactions. Brokerage business may be allocated by the Portfolio Advisor and portfolio sub-advisors to CIBC World Markets Inc. andor CIBC World Markets Corp., each a subsidiary of CIBC. The total commissions paid to related brokers in connection with portfolio transactions are reported in footnote Brokerage Commissions and Fees on theStatements of Comprehensive Income of each Fund.

CIBC World Markets Inc. and CIBC World Markets Corp. may also earn spreads on the sale of fixed income and other securities, and certain derivative products (including futures and forwards) to the Funds. Dealers,including CIBC World Markets Inc. and CIBC World Markets Corp., may furnish goods and ser

imperialcanadianequitypool interimfinancialreports(unaudited) · 2021. 1. 11. · ath abscoilcorp....

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