investment manager series (ims) (vios) - ivariivari.ca/files/ip971.pdf · semi-annual unaudited...

Semi-annual unaudited Financial Statements as at June 30, 2017

Investment Manager Series (IMS) (VIOs)

Dear Valued Investor,

The U.S. equity market, as measured by the S&P 500 Index, returned 9.3% in U.S. dollars, during the first half of 2017, which was the best start in four years. U.S. Technology continued to benefit from the strength of the FAANG stocks (FAANG is an acronym for the five most popular and best performing technology stocks in the market, namely Facebook, Apple, Amazon, Netflix, and Alphabet’s Google). In Canada it was a different story; the Canadian equity market, as measured by the S&P/TSX Composite Total Return Index, returned 0.74% during the first half of 2017. Year-to-date, most sectors generated positive returns, with the exception of the Energy and Materials sectors, which were both negative contributors. Despite an improving economic backdrop, the Canadian stock market underperformed most major global indices. With the sell-off in oil prices, West Texas Intermediate (“WTI”) oil prices declined 14%, year-to-date. Moreover, there were concerns and discouraging headlines surrounding the Canadian housing market, which impacted the Financials sector.

Canadian fixed income fared better than their equity counterparts, as the FTSE TMX Canada Bond Universe Index returned 2.36% during the same period. Canadian fixed income returns were strong during the first half of 2017, as interest rates fell. Government yield curves, both in the U.S. and Canada, shifted lower for the majority of the first half of the year, as the euphoria of a new government in the U.S. faded.

Looking ahead

Despite some policy setbacks in the U.S., in terms of tax reform and fiscal stimulus, the portfolio management team believes that U.S. economic and profit growth will continue to perform, status quo. Recently, the Bank of Canada has become more hawkish in their outlook, as economic data points have trended upwards. In addition, favourable macroeconomic conditions have encouraged global growth. As the improvement in the global economic landscape continues to progress, this should support better earnings growth and visibility, which should bode well for equity markets. We are mindful that there may be some short term pressures on fixed income, as rates rise, both in Canada and the U.S.

With a national network of thousands of independent advisors, ivari provides a full range of insurance products designed to help Canadians and their families make the right choice for their protection needs. The people, products and service that make up ivari have stood the test of time and have been around for over 80 years in the Canadian marketplace. We are starting a fresh, new conversation about insurance. Visit us at ivari.ca.

We thank you for your business and look forward to continuing to help you reach your financial goals.

Doug Brooks President and Chief Executive Officer

Statements of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Statements of Comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Statements of Changes in Net Assets Attributable to Holders of Redeemable Units, and Statements of Cash Flows . . . . . . . . . . 87

Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Management Expense Ratio (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

Products and Fund Options

Product Endeavour Discovery 2000 Omni Life Challenger Achiever Plus Page

Asset Allocation Fund • • • • • 4

Bond Fund • 9

Canadian Communications Fund • 10

Canadian Financial Services Fund • 11

Canadian Resources Fund • 12

Canadian Growth Fund • 13

Canadian Small Cap Fund • 14

Dividend Fund • • 15

T-Bill Fund • 20

Canadian-35 Index Fund • • 21

Can-Am Fund • • • • 22

Can-Asian Fund • • • • 23

Can-Daq 100 Fund • • • 24

Can-Euro Fund • • • 25

Can-Global Bond Fund • • • 26

American Asset Allocation Fund • 27

American Equity Index Fund • 28

Can-Emerge Fund • • • 29

European Equity Index Fund • 30

International Bond Index Fund • 31

Information Technology Fund • 32

International Brands Fund • 33

Equity Fund • • • • • 34

Mid-Term Bond Fund • • • • • 37

Semi-annual unaudited Financial Statementsas at June 30, 2017

Schedule of Investment Portfolio As at June 30, 2017 (unaudited)

Fair Value Fair Value Average Cost Average Cost($) (%) ($) (%)

SHORT TERM INVESTMENTS -- CANADIANTreasury BillsCanadian Treasury Bill, 0.520%, August 24, 2017 185,000 184,813 184,756Canadian Treasury Bill, 0.531%, September 07, 2017 300,000 299,598 299,622Canadian Treasury Bill, 0.548%, September 21, 2017 140,000 139,775 139,803

624,186 2.59 624,181 2.72

TOTAL SHORT TERM INVESTMENTS -- CANADIAN 624,186 2.59 624,181 2.72

BONDS -- CANADIANCanadian Federal BondsGovernment of Canada, 1.750%, September 01, 2019 81,000 82,066 83,178Canadian Government Bond, 0.750%, March 01, 2021 52,000 50,992 51,173Canadian Government Bond, 3.250%, June 01, 2021 52,000 55,828 56,784Government of Canada, 0.750%, September 01, 2021 235,000 229,416 232,768Canadian Government Bond, 0.500%, March 01, 2022 93,000 89,320 91,028Canadian Government Bond, 2.750%, June 01, 2022 51,000 54,242 55,463Canadian Government Bond, 1.000%, June 01, 2027 100,000 93,179 93,350Government of Canada, 2.750%, December 01, 2048 982,000 1,120,685 1,089,373OPB Finance Trust, 2.980%, January 25, 2027 112,000 114,618 111,942

1,890,346 7.85 1,865,059 8.14Provincial BondsProvince of New Brunswick Canada, 2.350%, August 14, 2027 210,000 205,423 208,025

205,423 0.85 208,025 0.91

Corporate Bonds407 International Inc., 3.830%, May 11, 2046 85,000 91,084 84,257Aimia Inc., 5.600%, May 17, 2019 127,000 117,263 131,460Alectra Inc., 3.239%, November 21, 2024 120,000 126,611 126,809Algonquin Power Co., 4.090%, February 17, 2027 194,000 203,065 193,862Bank of Montreal, 3.320%, June 01, 2026 110,000 113,319 109,985bcIMC Realty Corp., 2.840%, June 03, 2025 112,000 113,912 113,629bcIMC Realty Corp., 3.000%, March 31, 2027 156,000 158,479 156,000Bell Canada Inc., 7.850%, April 02, 2031 90,000 126,990 128,986BMW Canada Inc., 1.880%, December 11, 2020 110,000 109,583 110,000BMW Canada Inc., 1.830%, June 15, 2021 125,000 123,628 124,946Canadian Tire Corp., Ltd., 6.445%, February 24, 2034 171,000 217,086 188,449Capital Power Corp., 5.276%, November 16, 2020 110,000 117,719 118,690Chip Mortgage Trust, 2.981%, November 15, 2021 110,000 108,409 110,000CU Inc., 3.964%, July 27, 2045 150,000 164,478 154,073Eagle Credit Card Trust, 2.849%, October 17, 2018 214,000 217,538 214,000Enercare Solutions Inc., 3.380%, February 21, 2022 110,000 110,791 109,980Enercare Solutions Inc., 3.990%, February 21, 2024 114,000 116,399 113,979EPCOR Utilities Inc., 4.550%, February 28, 2042 225,000 264,891 250,637Fortified Trust, 1.670%, July 23, 2021 225,000 221,995 224,257Glacier Credit Card Trust, 3.068%, September 20, 2019 300,000 299,544 303,644Glacier Credit Card Trust, 3.237%, September 20, 2020 240,000 240,857 240,000Heathrow Funding Ltd., 3.250%, May 21, 2025 165,000 170,017 174,215HSBC Bank Canada, 2.170%, June 29, 2022 77,000 76,325 77,000IGM Financial Inc., 3.440%, January 26, 2027 168,000 170,821 170,330Intact Financial Corp., 2.850%, June 07, 2027 190,000 185,682 189,968Leisureworld Senior Care LP, 3.474%, February 03, 2021 156,000 162,298 156,000Loblaw Cos Ltd., 6.650%, November 08, 2027 202,000 257,517 262,564Loblaw Cos Ltd., 6.450%, February 09, 2028 215,000 269,471 275,856Master Credit Card Trust II, 2.364%, January 21, 2022 215,000 212,611 210,111Master Credit Card Trust II, 3.056%, January 21, 2022 225,000 222,935 220,559MCAP Commercial LP, 3.955%, March 11, 2019 56,000 55,645 56,000

Asset Allocation FundShare/Par

Value

4




ValueOMERS Realty Corp., 2.858%, February 23, 2024 175,000 179,295 175,000Pembina Pipeline Corp., 3.710%, August 11, 2026 140,000 142,728 141,726Pembina Pipeline Corp., 4.740%, January 21, 2047 28,000 28,647 27,828PSP Capital Inc., 1.730%, June 21, 2022 110,000 108,865 110,000Royal Bank of Canada, 3.310%, January 20, 2026 60,000 61,698 59,975Scotiabank Tier I Trust, 7.802%, June 30, 2108 200,000 220,780 224,452Shaw Communications Inc., 3.800%, March 01, 2027 329,000 338,186 328,674Shaw Communications Inc., 6.750%, November 09, 2039 63,000 81,244 78,230TD Capital Trust IV, FRN, 9.523%, June 30, 2049 63,000 71,510 82,015Teranet Holdings LP, 4.807%, December 16, 2020 115,000 122,747 123,927The Toronto-Dominion Bank, 2.982%, September 30, 2025 50,000 50,956 50,285The Toronto-Dominion Bank, 4.859%, March 04, 2031 295,000 331,356 308,665Toyota Credit Canada Inc., 2.200%, February 25, 2021 120,000 120,715 119,762Transcanada Trust, 4.650%, May 18, 2077 210,000 210,419 210,000WTH Car Rental ULC, 2.542%, August 20, 2019 115,000 115,961 115,000WTH Car Rental ULC, 3.323%, August 20, 2019 115,000 115,253 115,000

7,447,323 30.95 7,370,785 32.17

TOTAL BONDS -- CANADIAN 9,543,092 39.65 9,443,869 41.22

BONDS -- FOREIGNBritainHSBC Holdings PLC, 3.196%, December 05, 2023 165,000 167,522 165,000

167,522 0.70 165,000 0.72

United States of AmericaMetropolitan Life Global Funding I 115,000 114,736 115,129

114,736 0.48 115,129 0.50

TOTAL BONDS -- FOREIGN 282,258 1.18 280,129 1.22

TOTAL BONDS 9,825,350 40.83 9,723,998 42.44

MORTGAGE BACKED -- CANADIAN Ford Auto Securitization Trust, 3.175%, June 15, 2019 164,000 165,155 164,000Institutional Mortgage Securities Canada Inc., 4.240%, October 12, 2023 69,000 71,594 68,996Institutional Mortgage Securities Canada Inc., 4.186%, May 12, 2024 115,000 115,158 114,995Institutional Mortgage Securities Canada Inc., Class C, 4.336%, January 12, 2023 49,000 49,615 47,675MCAP CMBS Issuer Corp., 3.600%, April 12, 2054 145,000 143,566 143,448MCAP RMBS Issuer Corp., 2.171%, April 15, 2019 57,000 32,114 32,787Real Estate Asset Liquidity Trust, 3.179%, January 12, 2026 355,000 355,852 354,971

933,054 3.88 926,872 4.05

TOTAL MORTGAGE BACKED -- CANADIAN 933,054 3.88 926,872 4.05

EXCHANGE TRADED FUNDSFinancialsiShares S&P/TSX 60 Index ETF 28,120 630,732 655,410

630,732 2.62 655,410 2.86

IndustrialSPDR S&P500 ETF Trust 2,340 734,669 731,587

734,669 3.05 731,587 3.19

TOTAL EXCHANGE TRADED FUNDS 1,365,401 5.67 1,386,997 6.05

5




Value

EQUITIES -- CANADIANConsumer DiscretionaryCanadian Tire Corp., Ltd. 480 70,829 73,936Dollarama Inc. 760 94,134 54,090Gildan Activewear Ltd. 1,660 66,134 59,019Magna International Inc. 2,620 157,383 152,236Restaurant Brands International Inc. 1,695 137,481 95,674Shaw Communications Ltd. 2,935 82,914 81,130Thomson Reuters Corp. 2,045 122,782 118,119

731,657 3.04 634,204 2.77

Consumer StaplesAlimentation Couche-Tard Inc. 3,035 188,474 172,988George Weston Ltd. 340 39,913 39,190Loblaw Cos Ltd. 1,510 108,916 106,633Metro Ltd. 1,655 70,619 68,076Saputo Ltd. 1,540 63,525 70,298

471,447 1.96 457,185 2.00

EnergyARC Resources Ltd. 2,550 43,248 49,022Cameco Corp. 2,855 33,689 42,255Canadian Natural Resources Ltd. 8,030 300,322 270,101Cenovus Energy Ltd. 6,925 66,134 104,705Crescent Point Energy Corp. 3,910 38,787 56,881Enbridge Inc. 11,990 619,283 636,651Encana Corp. 7,025 80,015 112,477Husky Energy Ltd. 2,175 31,994 33,350Imperial Oil Ltd. 1,835 69,345 74,724Inter Pipeline Ltd. 2,660 67,564 75,337Pembina Pipeline Corp. 2,880 123,696 113,043Suncor Energy Inc. 12,345 467,382 458,899TransCanada Corp. 6,405 395,829 343,359

2,337,288 9.71 2,370,804 10.35

FinancialsBank of Montreal 4,800 457,008 393,368Bank of Nova Scotia 8,820 687,607 574,740Brookfield Asset Management Inc. 6,425 326,583 280,783Canadian Imperial Bank of Commerce 2,945 310,020 339,939Manulife Financial Corp. 14,297 347,560 282,962National Bank of Canada 2,465 134,269 129,311Power Corp of Canada 2,635 77,891 81,875Royal Bank of Canada 10,650 1,001,525 729,151Sun Life Financial Inc. 4,430 205,331 213,197The Toronto-Dominion Bank 13,570 886,528 623,516

4,434,322 18.43 3,648,842 15.93

IndustrialCanadian National Railway Co. 5,685 597,437 391,757Canadian Pacific Railway Ltd. 1,095 228,439 216,726SNC-Lavalin Group Ltd. 1,120 62,776 61,886Waste Connections Ltd. 1,935 161,476 167,664

1,050,128 4.36 838,033 3.66

6




Value

Information TechnologyBlackberry Ltd. 3,595 46,519 47,179CGI Group Inc., Class A 1,930 127,805 101,471Constellation Software Ltd. 150 101,552 97,984

275,876 1.15 246,634 1.08

MaterialsAgnico Eagle Mines Ltd. 1,635 95,598 94,466Agrium Ltd. 995 116,753 126,176Barrick Gold Corp. 8,420 173,705 194,230CCL Industries Ltd. 985 64,567 64,962First Quantum Minerals Ltd. 4,985 54,685 64,024Franco-Nevada Corp. 1,285 120,237 115,073Goldcorp., Inc. 6,170 103,162 117,500Kinross Gold Corp. 9,005 47,366 43,039Potash Corp of Saskatchewan Inc. 6,075 128,304 138,194Teck Resources Ltd. 3,365 75,578 66,505Wheaton Precious Metals Corp. 3,190 82,174 90,390

1,062,129 4.41 1,114,559 4.86

Telecommunication ServicesBCE Inc. 6,485 378,724 387,176Rogers Communications Ltd. 2,590 158,560 148,361TELUS Corp. 4,260 190,720 188,882

728,004 3.02 724,419 3.16

UtilitiesEmera Ltd. 1,515 73,023 71,317Fortis Ltd. 2,985 136,056 131,240

209,079 0.87 202,557 0.88TOTAL EQUITIES -- CANADIAN 11,299,930 46.95 10,237,237 44.69

TOTAL EQUITIES 11,299,930 46.95 10,237,237 44.69

Transaction costs (Note 3) - - (6,456) (0.03)

TOTAL INVESTMENTS 24,047,921 99.92 22,892,829 99.92

CASH AND OTHER NET ASSETS (LIABILITIES) 18,864 0.08 18,864 0.08

TOTAL NET ASSETS 24,066,785 100.00 22,911,693 100.00See accompanying notes to the financial statements.

7




Value

Summary of Investment PortfolioThe fair value percentages of total net assets by major portfolio category are shown in the following table.

30-Jun-17 31-Dec-16Corporate Bonds 30.95 30.08Financials 18.43 20.29Energy 9.71 11.95Canadian Federal Bonds 7.85 9.12Exchange-Traded Funds 5.67 - Materials 4.41 6.23Industrial 4.36 5.12Canadian Mortgage Backed 3.88 3.98Consumer Discretionary 3.04 3.79Telecommunication Services 3.02 0.56Canadian Treasury Bills 2.59 1.32Consumer Staples 1.96 1.64Foreign Bonds 1.18 1.90Information Technology 1.15 1.72Provincial Bonds 0.85 - Utilities 0.87Health Care - - Real Estate - 1.82

Portfolio by Category Net Assets (%)

8



EXCHANGE-TRADED FUNDSFinancialsiShares DEX Universe Bond Index Fund 4,847 152,050 147,248

152,050 98.18 147,248 98.22

TOTAL EXCHANGE-TRADED FUNDS 152,050 98.18 147,248 98.22

Transaction costs (Note 3) - - (144) (0.10)

TOTAL INVESTMENTS 152,050 98.18 147,104 98.12


TOTAL NET ASSETS 154,862 100.00 149,916 100.00See accompanying notes to the financial statements.


30-Jun-17 31-Dec-16Exchange-Traded Funds 98.18 96.44

Bond FundShare/Par

Value


9



EXCHANGE-TRADED FUNDSInformation TechnologyVanguard Telecommunication Services ETF 925 110,315 113,718

110,315 94.50 113,718 96.13




Net receivable on foreign exchange forward contracts (Note 10) 1,792 1.54 - -





Canadian Communications FundShare/Par

Value


10



EXCHANGE-TRADED FUNDSFinancialsiShares S&P/TSX Capped Financials Index Fund 9,298 330,730 266,487

330,730 97.19 266,487 96.64








Canadian Financial Services FundShare/Par

Value

Portfolio by CategoryNet Assets (%)

11



EXCHANGE-TRADED FUNDSFinancialsiShares S&P/TSX Capped Energy Fund 4,750 51,918 81,238iShares S&P/TSX Capped Materials Index Fund 2,800 34,916 36,276

86,834 96.93 117,514 97.90








Canadian Resources FundShare/Par

Value


12



EXCHANGE-TRADED FUNDSFinancialsiShares S&P/TSX 60 Index Fund 6,000 134,580 117,227

134,580 98.06 117,227 97.97








Canadian Growth FundShare/Par

Value


13



EXCHANGE-TRADED FUNDSFinancialsiShares S&P/TSX SmallCap Index Fund 3,900 61,776 59,038

61,776 96.72 59,038 96.76





TOTAL NET ASSETS 63,870 100.00 61,015 100.00 See accompanying notes to the financial statements.



Canadian Small Cap FundShare/Par

Value


14



SHORT TERM INVESTMENTS -- CANADIANTreasury BillsCanadian Treasury Bill, 0.510%, August 10, 2017 100,000 99,932 99,880

99,932 1.90 99,880 2.17


BONDS -- CANADIANCanadian Federal BondsGovernment of Canada, 0.750%, March 01, 2021 6,000 5,884 5,917Government of Canada, 3.250%, June 01, 2021 5,000 5,368 5,460Government of Canada, 0.500%, March 01, 2022 13,000 12,486 12,724Government of Canada, 2.750%, June 01, 2022 5,000 5,318 5,438Government of Canada, 2.500%, June 01, 2024 17,000 18,043 18,552Government of Canada, 1.000%, June 01, 2027 20,000 18,636 18,670Government of Canada, 2.750%, December 01, 2048 94,000 107,274 104,890OPB Finance Trust, 2.980%, January 25, 2027 10,000 10,234 9,995

183,243 3.49 181,646 3.94Provincial BondsProvince of New Brunswick Canada, 2.350%, August 14, 2027 30,000 29,346 29,608

29,346 0.56 29,608 0.64

Corporate Bonds407 International Inc., 3.830%, May 11, 2046 7,000 7,501 6,939Aimia Inc., 5.600%, May 17, 2019 12,000 11,080 12,313Alectra Inc., 3.239%, November 21, 2024 15,000 15,826 15,851Algonquin Power Co., 4.090%, February 17, 2027 19,000 19,888 18,987Bank of Montreal, 3.320%, June 01, 2026 10,000 10,302 9,999bcIMC Realty Corp., 2.840%, June 03, 2025 11,000 11,188 11,037bcIMC Realty Corp., 3.000%, March 31, 2027 15,000 15,238 15,000Bell Canada Inc., 7.850%, April 02, 2031 9,000 12,699 12,899BMW Canada Inc., 1.880%, December 11, 2020 10,000 9,962 10,000BMW Canada Inc., 1.830%, June 15, 2021 10,000 9,890 9,996Canadian Tire Corp., Ltd., 6.445%, February 24, 2034 13,000 16,504 14,294Capital Power Corp., 5.276%, November 16, 2020 10,000 10,702 10,790Chip Mortgage Trust, 2.981%, November 15, 2021 10,000 9,855 10,000CU Inc., 3.964%, July 27, 2045 14,000 15,351 14,323Eagle Credit Card Trust, 2.849%, October 17, 2018 13,000 13,215 13,000Enercare Solutions Inc., 3.380%, February 21, 2022 10,000 10,072 9,998Enercare Solutions Inc., 3.990%, February 21, 2024 12,000 12,253 11,998EPCOR Utilities Inc., 4.550%, February 28, 2042 20,000 23,546 22,279Fortified Trust, 1.670%, July 23, 2021 25,000 24,666 24,889Genesis Trust II, 1.675%, September 17, 2018 20,000 20,039 20,057Glacier Credit Card Trust, 3.068%, September 20, 2019 30,000 29,953 30,365Glacier Credit Card Trust, 3.237%, September 20, 2020 10,000 10,036 10,000Hollis Receivables Term Trust II, 1.788%, February 26, 2020 10,000 9,993 9,956HSBC Bank Canada, 2.170%, June 29, 2022 7,000 6,939 7,000IGM Financial Inc., 3.440%, January 26, 2027 18,000 18,302 18,259Intact Financial Corp., 2.850%, June 07, 2027 20,000 19,545 19,997Leisureworld Senior Care LP, 3.474%, February 03, 2021 12,000 12,484 12,000Loblaw Cos Ltd., 6.650%, November 08, 2027 13,000 16,573 16,914Loblaw Cos Ltd., 6.450%, February 09, 2028 20,000 25,067 25,661Master Credit Card Trust II, 2.307%, October 21, 2018 20,000 19,955 20,000Master Credit Card Trust II, 2.364%, January 21, 2022 10,000 9,889 9,768Master Credit Card Trust II, 3.056%, January 21, 2022 20,000 19,816 19,605MCAP Commercial LP, 3.955%, March 11, 2019 8,000 7,949 8,000OMERS Realty Corp., 2.858%, February 23, 2024 15,000 15,368 15,000

Dividend FundShare/Par

Value

15




Value

Pembina Pipeline Corp., 3.710%, August 11, 2026 2,000 2,039 2,047Pembina Pipeline Corp., 4.740%, January 21, 2047 16,000 16,370 15,938PSP Capital Inc., 1.730%, June 21, 2022 10,000 9,897 10,000Royal Bank of Canada, 3.310%, January 20, 2026 15,000 15,424 15,112Scotiabank Tier I Trust, 7.802%, June 30, 2108 20,000 22,078 22,445Shaw Communications Inc., 3.800%, March 01, 2027 33,000 33,922 32,967Shaw Communications Inc., 6.750%, November 09, 2039 5,000 6,448 6,209TD Capital Trust IV, FRN, 9.523%, June 30, 2049 13,000 14,756 16,829Teranet Holdings LP, 4.807%, December 16, 2020 10,000 10,674 10,776The Toronto-Dominion Bank, 4.859%, March 04, 2031 38,000 42,682 39,925Toyota Credit Canada Inc., 2.200%, February 25, 2021 10,000 10,060 9,980Transcanada Trust, 4.650%, May 18, 2077 20,000 20,040 20,000WTH Car Rental ULC, 2.542%, August 20, 2019 25,000 25,209 25,000WTH Car Rental ULC, 3.323%, August 20, 2019 5,000 5,011 5,000

736,256 14.02 729,402 15.82

TOTAL BONDS -- CANADIAN 948,845 18.07 940,656 20.40

BONDS -- FOREIGNBritainHSBC Holdings PLC 16,000 16,245 16,000

16,245 0.31 16,000 0.35

United States of AmericaHeathrow Funding Ltd., 3.250%, May 21, 2025 15,000 15,456 15,838Metropolitan Life Global Funding I, 1.875%, April 16, 2020 10,000 9,977 10,011Wells Fargo & Co., 2.094%, April 25, 2022 10,000 9,842 10,000

35,275 0.67 35,849 0.78


TOTAL BONDS 1,000,365 19.05 992,505 21.53

MORTGAGE BACKED -- CANADIAN Ford Auto Securitization Trust, 3.175%, June 15, 2019 9,000 9,063 9,000Institutional Mortgage Securities Canada Inc., Class C, 4.336%, January 12, 2023 4,000 4,050 3,892Institutional Mortgage Securities Canada Inc., 4.240%, October 12, 2023 5,000 5,188 5,000MCAP CMBS Issuer Corp., 3.600%, April 12, 2054 6,000 5,941 5,936MCAP RMBS Issuer Corp., 2.171%, April 15, 2019 10,000 5,634 5,752Real Estate Asset Liquidity Trust, 3.179%, January 12, 2026 25,000 25,059 24,998

54,935 1.05 54,578 1.18

TOTAL MORTGAGE BACKED -- CANADIAN 54,935 1.05 54,578 1.18

EXCHANGE-TRADED FUNDSFinancialsiShares S&P/TSX 60 Index ETF 5,625 126,169 131,076

126,169 2.40 131,076 2.84

IndustrialSPDR S&P 500 ETF Trust 710 222,912 187,336

222,912 4.24 187,336 4.06


16




Value

EQUITIES -- CANADIANConsumer StaplesAlimentation Couche-Tard Inc. 1,015 63,032 47,993George Weston Ltd. 110 12,913 12,679Loblaw Cos Ltd. 500 36,065 35,686Metro Inc. 550 23,469 22,623Saputo Inc. 510 21,038 23,280

156,517 2.98 142,261 3.09

Consumer DiscretionaryCanadian Tire Corp., Ltd. 165 24,347 20,913Dollarama Inc. 250 30,965 28,531Gildan Activewear Inc. 550 21,912 19,554Magna International Inc. 875 52,560 47,269Restaurant Brands International Inc. 570 46,233 27,104Shaw Communications Inc. 980 27,685 27,201Thomson Reuters Corp. 680 40,827 39,277

244,529 4.66 209,849 4.55EnergyARC Resources Ltd. 850 14,416 16,341Cameco Corp. 950 11,210 14,060Canadian Natural Resources Ltd. 2,680 100,232 82,183Cenovus Energy Inc. 2,010 19,196 32,160Crescent Point Energy Corp. 1,300 12,896 18,912Enbridge Inc. 3,970 205,050 199,931Encana Corp. 2,340 26,653 37,466Husky Energy Inc. 725 10,665 11,117Imperial Oil Ltd. 610 23,052 24,840Inter Pipeline Ltd. 885 22,479 25,065Pembina Pipeline Corp. 960 41,232 37,757Suncor Energy Inc. 4,025 152,387 129,888TransCanada Corp. 2,085 128,853 92,974

768,321 14.63 722,694 15.67

FinancialsBank of Montreal 1,565 149,004 124,077Bank of Nova Scotia 2,910 226,864 194,787Brookfield Asset Management Inc. 2,090 106,235 95,819Canadian Imperial Bank of Commerce 955 100,533 110,463Manulife Financial Corp. 4,762 115,764 91,706National Bank of Canada 825 44,938 38,380Power Corp of Canada 875 25,865 27,188Royal Bank of Canada 3,548 333,653 181,018Sun Life Financial Inc. 1,475 68,366 70,986The Toronto-Dominion Bank 4,476 292,417 154,854

1,463,639 27.85 1,089,278 23.61

IndustrialCanadian National Railway Co. 1,849 194,311 81,063Canadian Pacific Railway Ltd. 360 75,103 72,518SNC-Lavalin Group Inc. 375 21,019 20,721Waste Connections Inc. 630 52,574 54,595

343,007 6.53 228,897 4.96

17




Value

MaterialsAgnico Eagle Mines Ltd. 545 31,866 29,426Agrium Inc. 335 39,309 43,376Barrick Gold Corp. 2,805 57,866 64,221CCL Industries Inc. 320 20,976 21,091First Quantum Minerals Ltd. 1,660 18,210 24,527Franco-Nevada Corp. 425 39,767 38,059Goldcorp Inc. 2,055 34,360 40,744Kinross Gold Corp. 3,000 15,780 14,339Potash Corp of Saskatchewan Inc. 2,025 42,768 46,041Teck Resources Ltd. 1,125 25,268 34,710Wheaton Precious Metals Corp. 1,060 27,306 30,283

353,476 6.73 386,817 8.39Telecommunication ServicesBCE Inc. 2,185 127,604 130,446Rogers Communications Inc. 865 52,955 39,591TELUS Corp. 1,427 63,887 33,616

244,446 4.65 203,653 4.42

UtilitiesEmera Inc. 505 24,341 23,772Fortis Inc. 1,000 45,580 38,010

69,921 1.33 61,782 1.34

Information TechnologyBlackberry Ltd. 1,180 15,269 15,542CGI Group Inc. 635 42,050 40,422Constellation Software Inc. 50 33,851 32,661

91,170 1.74 88,625 1.92

TOTAL EQUITIES -- CANADIAN 3,735,026 71.10 3,133,856 67.95

TOTAL EQUITIES 3,735,026 71.10 3,133,856 67.95





18




Value


30-Jun-17 31-Dec-16Financials 27.85 30.38Energy 14.63 12.07Corporate Bonds 14.02 11.10Materials 6.73 2.97Exchange-Traded Funds 6.64 8.27 Industrial 6.53 5.91Consumer Discretionary 4.66 5.54Telecommunication Services 4.65 5.35Canadian Federal Bonds 3.49 4.71Consumer Staples 2.98 5.93Canadian Treasury Bills 1.90 - Information Technology 1.74 1.45Utilities 1.33 2.02Canadian Mortgage Backed 1.05 1.49Foreign Bonds 0.98 0.33Real Estate - - Health Care - 1.19


19



SHORT TERM INVESTMENTS -- CANADIANTreasury BillsCanadian Treasury Bill, 0.514%, July 13, 2017 9,000 8,998 8,989Canadian Treasury Bill, 0.520%, August 24, 2017 12,000 11,988 11,979Canadian Treasury Bill, 0.555%, September 07, 2017 5,000 4,993 4,987Canadian Treasury Bill, 0.586%, October 05, 2017 8,000 7,985 7,978Canadian Treasury Bill, 0.699%, October 19, 2017 7,000 6,984 6,981Canadian Treasury Bill, 0.564%, November 02, 2017 9,000 8,977 8,975Canadian Treasury Bill, 0.701%, January 11, 2018 7,000 6,969 6,975

56,894 99.63 56,864 99.63


Transaction costs (Note 3) - - - -


CASH AND OTHER NET ASSETS (LIABILITIES) 212 0.37 212 0.37



30-Jun-17 31-Dec-16Canadian Treasury Bills 99.63 99.43

T-Bill FundShare/Par

Value


20



SHORT TERM INVESTMENTS -- CANADIANTreasury BillsCanadian Treasury Bill, 0.520%, August 24, 2017 50,000 49,949 49,940

49,949 0.42 49,940 0.72


EXCHANGE-TRADED FUNDSFinancialsiShares S&P/TSX 60 Index Fund 521,400 11,695,002 6,889,876

11,695,002 99.42 6,889,876 99.02

TOTAL EXCHANGE-TRADED FUNDS 11,695,002 99.42 6,889,876 99.02




TOTAL NET ASSETS 11,763,480 100.00 6,957,835 100.00 See accompanying notes to the financial statements.


30-Jun-17 31-Dec-16Exchange-Traded Funds 99.42 99.48Canadian Treasury Bills 0.42 0.60

Canadian-35 Index FundShare/Par

Value


21



SHORT TERM INVESTMENTS -- CANADIANTreasury BillsCanadian Treasury Bill, 0.540%, July 13, 2017 1,960,000 1,959,667 1,956,157Canadian Treasury Bill, 0.531%, July 27, 2017 425,000 424,834 424,387Canadian Treasury Bill, 0.510%, August 10, 2017 1,625,000 1,623,895 1,621,391Canadian Treasury Bill, 0.522%, August 24, 2017 820,000 819,172 818,296Canadian Treasury Bill, 0.531%, September 07, 2017 7,105,000 7,095,479 7,090,003Canadian Treasury Bill, 0.537%, September 21, 2017 3,897,000 3,890,726 3,891,401Canadian Treasury Bill, 0.687%, October 05, 2017 2,940,000 2,934,302 2,934,109Canadian Treasury Bill, 0.569%, October 19, 2017 470,000 468,957 468,454Canadian Treasury Bill, 0.564%, November 02, 2017 1,270,000 1,266,698 1,266,562Canadian Treasury Bill, 0.621%, November 30, 2017 2,931,000 2,921,152 2,922,787Canadian Treasury Bill, 0.660%, December 14, 2017 2,994,000 2,982,892 2,984,756

26,387,774 99.96 26,378,303 99.99

TOTAL SHORT TERM INVESTMENTS -- CANADIAN 26,387,774 99.96 26,378,303 99.99



Net receivable on futures contracts (Note 9) 9,153 0.03 - -




30-Jun-17 31-Dec-16Canadian Treasury Bills 99.96 100.45A portion or all of the above serves as collateral for the futures invested in by the Fund (See Note 8)

Can-Am FundShare/Par

Value


22

Schedule of Investment PortfolioAs at June 30, 2017 (unaudited)


SHORT TERM INVESTMENTS -- CANADIANTreasury BillsCanadian Treasury Bill, 0.548%, July 13, 2017 1,260,000 1,259,786 1,257,692Canadian Treasury Bill, 0.510%, July 27, 2017 495,000 494,807 494,313Canadian Treasury Bill, 0.510%, August 10, 2017 1,155,000 1,154,215 1,152,549Canadian Treasury Bill, 0.518%, August 24, 2017 435,000 434,561 433,831Canadian Treasury Bill, 0.531%, September 07, 2017 2,361,000 2,357,836 2,355,668Canadian Treasury Bill, 0.537%, September 21, 2017 2,547,000 2,542,898 2,543,341Canadian Treasury Bill, 0.701%, October 05, 2017 1,895,000 1,891,327 1,891,101Canadian Treasury Bill, 0.541%, October 19, 2017 175,000 174,612 174,360Canadian Treasury Bill, 0.564%, November 02, 2017 800,000 797,920 797,832Canadian Treasury Bill, 0.550%, November 16, 2017 145,000 144,575 144,584Canadian Treasury Bill, 0.621%, November 30, 2017 1,048,000 1,044,479 1,045,046Canadian Treasury Bill, 0.660%, December 14, 2017 1,362,000 1,356,947 1,357,789

13,653,963 100.95 13,648,106 99.96




Net payable on futures contracts (Note 9) (133,420) (0.99) - -





Can-Asian FundShare/Par

Value


23



SHORT TERM INVESTMENTS -- CANADIANTreasury BillsCanadian Treasury Bill, 0.548%, July 13, 2017 625,000 624,894 623,905Canadian Treasury Bill, 0.548%, July 27, 2017 250,000 249,903 249,633Canadian Treasury Bill, 0.501%, August 10, 2017 270,000 269,816 269,459Canadian Treasury Bill, 0.522%, August 24, 2017 250,000 249,748 249,485Canadian Treasury Bill, 0.526%, September 07, 2017 2,232,000 2,229,008 2,226,869Canadian Treasury Bill, 0.671%, September 21, 2017 1,868,000 1,864,993 1,865,292Canadian Treasury Bill, 0.687%, October 05, 2017 1,325,000 1,322,432 1,322,161Canadian Treasury Bill, 0.564%, November 02, 2017 150,000 149,610 149,612Canadian Treasury Bill, 0.580%, November 16, 2017 100,000 99,707 99,680Canadian Treasury Bill, 0.621%, November 30, 2017 1,177,000 1,173,045 1,173,711Canadian Treasury Bill, 0.660%, December 14, 2017 1,448,000 1,442,628 1,443,492

9,675,784 99.95 9,673,299 99.94




Net payable on futures contracts (Note 9) (914) (0.01) - -





Can-Daq 100 FundShare/Par

Value


24



SHORT TERM INVESTMENTS -- CANADIANTreasury BillsCanadian Treasury Bill, 0.548%, July 13, 2017 815,000 814,861 813,703Canadian Treasury Bill, 0.548%, July 27, 2017 400,000 399,844 399,412Canadian Treasury Bill, 0.504%, August 10, 2017 690,000 689,531 688,542Canadian Treasury Bill, 0.526%, September 07, 2017 2,070,000 2,067,226 2,065,044Canadian Treasury Bill, 0.537%, September 21, 2017 2,409,000 2,405,122 2,405,539Canadian Treasury Bill, 0.687%, October 05, 2017 1,585,000 1,581,928 1,581,516Canadian Treasury Bill, 0.564%, November 02, 2017 827,000 824,850 824,787Canadian Treasury Bill, 0.621%, November 30, 2017 887,000 884,020 884,491Canadian Treasury Bill, 0.660%, December 14, 2017 1,218,000 1,213,481 1,214,228

10,880,863 100.63 10,877,262 99.98









Share/Par Value

Portfolio by Category

Can-Euro Fund

Net Assets (%)

25



SHORT TERM INVESTMENTS -- CANADIANTreasury BillsCanadian Treasury Bill, 0.548%, July 13, 2017 90,000 89,985 89,868Canadian Treasury Bill, 0.548%, July 27, 2017 190,000 189,926 189,721Canadian Treasury Bill, 0.525%, August 10, 2017 105,000 104,929 104,747Canadian Treasury Bill, 0.531%, September 07, 2017 382,000 381,487 381,182Canadian Treasury Bill, 0.533%, September 21, 2017 30,000 29,952 29,957Canadian Treasury Bill, 0.687%, October 05, 2017 440,000 439,147 439,025Canadian Treasury Bill, 0.564%, November 02, 2017 105,000 104,727 104,728Canadian Treasury Bill, 0.621%, November 30, 2017 118,000 117,604 117,664

1,457,757 99.32 1,456,892 98.98









Can-Global Bond FundShare/Par

Value


26



EXCHANGE-TRADED FUNDSFinancialsSPDR Dow Jones Industrial Average ETF Trust 405 112,032 84,234

112,032 99.49 84,234 99.34





TOTAL NET ASSETS 112,607 100.00 84,794 100.00 See accompanying notes to the financial statements.



American Asset Allocation FundShare/Par

Value


27



EXCHANGE-TRADED FUNDSFinancialsSPDR S&P 500 ETF Trust 395 124,015 86,189

124,015 97.42 86,189 96.33








American Equity Index FundShare/Par

Value


28



EXCHANGE-TRADED FUNDSFinancialsiShares MSCI Emerging Markets Index Fund 26,800 1,441,979 831,244

1,441,979 99.04 831,244 98.42

TOTAL EXCHANGE-TRADED FUNDS 1,441,979 99.04 831,244 98.41


TOTAL INVESTMENTS 1,441,979 99.04 830,644 98.34


TOTAL NET ASSETS 1,455,958 100.00 844,623 100.00See accompanying notes to the financial statements.



Can-Emerge FundShare/Par

Value


29



EXCHANGE-TRADED FUNDSFinancialsiShares Core MSCI Europe ETF 860 52,304 46,564

52,304 95.66 46,564 95.22








European Equity Index FundShare/Par

Value


30



EXCHANGE-TRADED FUNDSFinancialsiShares International Treasury Bond Index Fund 820 101,723 86,052

101,723 96.84 86,052 96.31








International Bond Index FundShare/Par

Value


31



EQUITIES -- CANADIANInformation TechnologyVerint Systems Inc. 55 2,907 -

2,907 1.35 - -

TOTAL EQUITIES -- CANADIAN 2,907 1.35 - -

EXCHANGE-TRADED FUNDSFinancialsTechnology Select Sector SPDR Fund 2,945 209,363 102,745

209,363 97.26 102,745 97.25







30-Jun-17 31-Dec-16Exchange-Traded Funds 97.26 95.54Information Technology 1.35 1.29

Information Technology FundShare/Par

Value


32



EXCHANGE-TRADED FUNDSFinancialsSPDR S&P 500 ETF Trust 92 28,884 17,947

28,884 97.55 17,947 96.13








International Brands FundShare/Par

Value


33



SHORT TERM INVESTMENTS -- CANADIANTreasury BillsCanadian Treasury Bill, 0.548%, July 13, 2017 75,000 74,987 74,890Canadian Treasury Bill, 0.671%, September 21, 2017 100,000 99,839 99,833

174,826 1.01 174,723 1.10


EXCHANGE - TRADED FUNDSFinancialsiShares S&P/TSX 60 Index ETF 27,395 614,470 638,547

614,470 3.55 638,547 4.03IndustrialSPDR S&P500 ETF Trust 3,165 993,687 989,614

993,687 5.75 989,614 6.24

TOTAL EXCHANGE - TRADED FUNDS 1,608,157 9.30 1,628,161 10.27

EQUITIES -- CANADIANConsumer DiscretionaryCanadian Tire Corp., Ltd. 645 95,176 98,970Dollarama Inc. 1,015 125,718 72,009Gildan Activewear Inc. 2,225 88,644 79,107Magna International Inc. 3,510 210,846 203,887Restaurant Brands International Inc. 2,345 190,203 133,894Shaw Communications Inc. 3,935 111,164 108,769

821,751 4.75 696,636 4.39Consumer StaplesAlimentation Couche-Tard Inc. 4,065 252,437 232,098George Weston Ltd. 455 53,412 52,445Loblaw Cos Ltd. 2,020 145,703 142,616Metro Inc. 2,220 94,727 91,316Saputo Inc. 2,060 84,975 94,035

631,254 3.65 612,510 3.86EnergyARC Resources Ltd. 3,420 58,003 65,747Cameco Corp. 3,825 45,135 56,611Canadian Natural Resources Ltd. 10,750 402,050 359,035Cenovus Energy Inc. 10,395 99,272 150,541Crescent Point Energy Corp. 5,235 51,931 76,156Enbridge Inc. 16,545 854,548 878,356Encana Corp. 9,410 107,180 150,663Husky Energy Inc. 2,915 42,880 44,696Imperial Oil Ltd. 2,460 92,963 100,175Inter Pipeline Ltd. 3,565 90,551 100,969Pembina Pipeline Corp. 3,855 165,572 151,199Suncor Energy Inc. 16,815 636,616 633,325TransCanada Corp. 8,755 541,059 466,751

3,187,760 18.44 3,234,224 20.39FinancialsBank of Montreal 6,560 624,578 538,221Bank of Nova Scotia 12,060 940,198 791,088Brookfield Asset Management Inc. 8,780 446,287 378,410Canadian Imperial Bank of Commerce 4,115 433,186 473,443Manulife Financial Corp. 19,840 482,310 401,550National Bank of Canada 3,380 184,109 176,881Power Corp of Canada 3,530 104,347 109,685Royal Bank of Canada 14,730 1,385,208 1,023,559Sun Life Financial Inc. 6,150 285,053 295,412

Equity FundShare/Par

Value

34



The Toronto-Dominion Bank 18,585 1,214,158 820,725Thomson Reuters Corp. 2,845 170,814 164,695

6,270,248 36.27 5,173,669 32.62

Health CarePreMD Inc. 249,096 97 5,366

97 - 5,366 0.03

IndustrialCanadian National Railway Co. 7,630 801,837 534,851Canadian Pacific Railway Ltd. 1,465 305,628 289,630SNC-Lavalin Group Inc. 1,505 84,355 83,159Waste Connections Inc. 2,630 219,474 227,884

1,411,294 8.16 1,135,524 7.16

Information TechnologyBlackberry Ltd. 4,920 63,665 64,492CGI Group Inc., Class A 2,625 173,828 137,294Constellation Software Inc. 215 145,557 140,443

383,050 2.22 342,229 2.16

MaterialsAgnico Eagle Mines Ltd. 2,185 127,757 126,373Agrium Inc. 1,385 162,516 175,398Barrick Gold Corp. 11,855 244,568 273,851CCL Industries Inc. 1,345 88,165 88,711First Quantum Minerals Ltd. 6,675 73,225 86,597Franco-Nevada Corp. 1,725 161,408 154,475Goldcorp., Inc. 8,265 138,191 157,518Kinross Gold Corp. 12,065 63,462 57,665Potash Corp. of Saskatchewan Inc. 8,425 177,936 191,328Teck Resources Ltd. 4,505 101,182 87,201Wheaton Precious Metals Corp. 4,275 110,124 120,451

1,448,534 8.38 1,519,568 9.58

UtilitiesEmera Inc. 2,030 97,846 95,560Fortis Inc. 4,000 182,320 175,866

280,166 1.62 271,426 1.71

Telecommunication ServicesBCE Inc. 9,110 532,024 543,828Rogers Communications Inc. 3,630 222,229 208,816TELUS Corp. 6,010 269,068 266,714

1,023,321 5.92 1,019,358 6.43

TOTAL EQUITIES -- CANADIAN 15,177,309 89.41 13,739,084 88.35TOTAL EQUITIES 15,457,475 89.41 14,010,510 88.33





Equity FundShare/Par

Value

35



30-Jun-17 31-Dec-16Financials 36.27 34.91Energy 18.44 21.85Exchange-Traded Funds 9.30 - Materials 8.38 11.38Industrial 8.16 9.38Telecommunication Services 5.92 1.03Consumer Discretionary 4.75 6.89Consumer Staples 3.65 2.98Information Technology 2.22 3.02Utilities 1.62 - Canadian Treasury Bills 1.01 2.74Real Estate - 5.38Federal Bonds - 0.30Health Care - 4.63Corporate Bonds - -


Equity Fund

36



SHORT TERM INVESTMENTS -- CANADIANTreasury BillsCanadian Treasury Bill, 0.531%, September 07, 2017 170,000 169,772 169,790

169,772 1.49 169,790 1.51


BONDS -- CANADIANCanadian Federal BondsGovernment of Canada, 2.750%, June 01, 2022 13,000 13,826 13,957Government of Canada, 1.000%, June 01, 2027 100,000 93,179 93,350Government of Canada, 2.750%, December 01, 2048 899,000 1,025,964 997,727OPB Finance Trust, 2.980%, January 25, 2027 415,000 424,702 414,784

1,557,671 13.67 1,519,818 13.51

Provincial BondsProvince of New Brunswick Canada, 2.350%, August 14, 2027 215,000 210,314 213,024

210,314 1.85 213,024 1.89

Corporate Bonds407 International Inc., 3.830%, May 11, 2046 253,000 271,107 254,385Alectra Inc., 3.239%, November 21, 2024 270,000 284,876 285,487bcIMC Realty Corp., 2.840%, June 03, 2025 360,000 366,145 363,184bcIMC Realty Corp., 3.000%, March 31, 2027 165,000 167,622 165,000BMW Canada Inc., 1.830%, June 15, 2021 125,000 123,628 124,946Chip Mortgage Trust, 2.981%, November 15, 2021 75,000 73,915 75,000CU Inc., 3.964%, July 27, 2045 351,000 384,878 358,224EPCOR Utilities Inc., 4.550%, February 28, 2042 235,000 276,664 261,776Fortified Trust, 1.670%, July 23, 2021 200,000 197,329 200,000Glacier Credit Card Trust, 3.068%, September 20, 2019 250,000 249,620 253,038Glacier Credit Card Trust, 3.237%, September 20, 2020 100,000 100,357 101,262Honda Canada Finance Inc., 2.268%, July 15, 2022 350,000 349,766 350,000HSBC Bank Canada, 2.170%, June 29, 2022 81,000 80,289 81,000IGM Financial Inc., 3.440%, January 26, 2027 205,000 208,442 206,717Leisureworld Senior Care L.P., 3.474%, February 03, 2021 324,000 337,081 324,000Master Credit Card Trust II, 3.223%, November 21, 2018 130,000 131,980 130,000Master Credit Card Trust II, 2.364%, January 21, 2022 235,000 232,389 229,546OMERS Realty Corp., 2.858%, February 23, 2024 500,000 512,271 500,000PSP Capital Inc., 1.730%, June 21, 2022 115,000 113,813 115,000Royal Bank of Canada, 1.650%, July 15, 2021 720,000 709,426 719,211The Toronto-Dominion Bank, 2.982%, September 30, 2025 177,000 180,384 177,557The Toronto-Dominion Bank, 4.859%, March 4, 2031 298,000 334,726 316,086Toyota Credit Canada Inc., 2.200%, February 25, 2021 630,000 633,755 636,378TransCanada PipeLines Ltd., 6.890%, August 07, 2028 120,000 157,301 161,852Union Gas Ltd., 4.200%, June 02, 2044 100,000 112,380 108,175WTH Car Rental ULC, 2.542%, August 20, 2019 135,000 136,128 135,000WTH Car Rental ULC, 1.912%, July 20, 2020 100,000 99,249 100,000WTH Car Rental ULC, 2.477%, July 20, 2020 100,000 98,488 100,000

6,924,009 60.76 6,832,824 60.74

TOTAL BONDS -- CANADIAN 8,691,994 76.28 8,565,666 76.14

Share/Par Value

Mid-Term Bond Fund

37



Share/Par Value

Mid-Term Bond Fund

BONDS -- FOREIGNBritainHSBC Holdings PLC, 3.196%, December 5, 2023 175,000 177,675 175,000National Grid Electricity Transmission PLC, 2.900%, November 26, 2019 130,000 133,123 129,753

310,798 2.73 304,753 2.71

United States of AmericaHeathrow Funding Ltd., 3.250%, May 21, 2025 130,000 133,953 137,261Metropolitan Life Global Funding I, 3.107%, April 16, 2021 390,000 402,878 414,149

536,831 4.71 551,410 4.90


TOTAL BONDS 9,539,623 83.72 9,421,829 83.75

MORTGAGE BACKED -- CANADIAN CNH Capital Canada Receivables Trust, 2.562%, November 15, 2021 400,000 400,824 399,999Ford Auto Securitization Trust, 3.422%, March 15, 2021 135,000 135,543 135,000Institutional Mortgage Securities Canada Inc., 4.240%, October 12, 2023 82,000 85,082 81,995Institutional Mortgage Securities Canada Inc., 4.416%, November 12, 2023 300,000 304,839 288,329Institutional Mortgage Securities Canada Inc., 4.186%, May 12, 2024 125,000 125,171 124,995Real Estate Asset Liquidity Trust, 3.179%, January 12, 2026 235,000 235,564 232,882Real Estate Asset Liquidity Trust, 3.600%, February 12, 2026 175,000 174,808 172,837Real Estate Asset Liquidity Trust, 3.450%, May 12, 2026 125,000 119,013 116,929

1,580,844 13.87 1,552,966 13.80

TOTAL MORTGAGE BACKED -- CANADIAN 1,580,844 13.87 1,552,966 13.80






30-Jun-17 31-Dec-16Corporate Bonds 60.76 61.50Canadian Mortgage Backed 13.87 14.62Canadian Federal Bonds 13.67 15.39Foreign Bonds 7.44 8.10Provincial Bonds 1.85 - Canadian Treasury Bills 1.49 0.21


38

2017 2016AssetsCurrent assets

Non-derivative financial assets at fair value through profit or loss $ 24,047,921 $ 24,776,111 Non-derivative financial assets pledged as collateral at fair value through profit or loss - - Cash and cash equivalents 19,489 15,616 Receivable for investments sold 155,028 25,506 Interest receivable 69,778 79,182 Dividends receivable 34,526 26,038 Derivative assets - - Margin on futures contracts - - Other receivables 55 56

24,326,797 24,922,509

LiabilitiesCurrent liabilities

Payable for investments purchased 243,723 - Management fees payable 3,281 3,385 Derivative liabilities - - Margin on futures contracts - - Other payable and accrued expenses 13,008 25,049

260,012 28,434

Net assets attributable to contractholders $ 24,066,785 $ 24,894,075

Net assets attributable to contractholders per classVIO $ 8,556,552 $ 8,707,413 VIO2 10,196,254 10,758,420 VIO3 5,313,979 5,428,242 VIO4 - -

Units outstandingVIO 435,426 441,798 VIO2 545,560 571,901 VIO3 279,004 283,380 VIO4 - -

Net assets attributable to contractholders per unit VIO $ 19.65 $ 19.71 VIO2 18.69 18.81 VIO3 19.05 19.16 VIO4 - -

See accompanying notes to the financial statements

Statements of Financial Position As at June 30, 2017 (unaudited) and December 31, 2016

Asset Allocation Fund

39

AssetsCurrent assets

Non-derivative financial assets at fair value through profit or lossNon-derivative financial assets pledged as collateral at fair value through profit or loss Cash and cash equivalentsReceivable for investments soldInterest receivableDividends receivableDerivative assetsMargin on futures contractsOther receivables


Payable for investments purchasedManagement fees payableDerivative liabilitiesMargin on futures contractsOther payable and accrued expenses

Net assets attributable to contractholders

Net assets attributable to contractholders per classVIOVIO2VIO3VIO4

Units outstandingVIOVIO2VIO3VIO4

Net assets attributable to contractholders per unit VIOVIO2VIO3VIO4


2017 2016

$ 152,050 $ 157,012 - -

3,141 6,385 - - - - - 359 - - - - - -

155,191 163,756

- - 16 17

- - - -

313 936 329 953

$ 154,862 $ 162,803

$ 154,862 $ 162,803 - - - - - -

9,703 10,265 - - - - - -

$ 15.96 $ 15.86 - - - - - -

See accompanying notes to the financial statements.

Bond Fund

40










2017 2016

$ 110,315 $ 126,819 - -

4,109 3,096 - - - -

766 - 1,792 -

- - - -

116,982 129,915

- - 16 18

- 1,277 - -

242 666 258 1,961

$ 116,724 $ 127,954

$ 116,724 $ 127,954 - - - - - -

9,779 9,809 - - - - - -

$ 11.94 $ 13.04 - - - - - -


Canadian Communications Fund

41










2017 2016

$ 330,730 $ 320,111 - -

10,246 2,260 - - - - - 728 - - - - - -

340,976 323,099

- - 37 36

- - - -

662 1,578 699 1,614

$ 340,277 $ 321,485

$ 340,277 $ 321,485 - - - - - -

12,584 11,941 - - - - - -

$ 27.04 $ 26.92 - - - - - -


Canadian Financial Services Fund

42










2017 2016

$ 86,834 $ 106,000 - -

2,952 1,642 - - - - - 238 - - - - - 1

89,786 107,881

- - 10 12

- - - -

196 550 206 562

$ 89,580 $ 107,319

$ 89,580 $ 107,319 - - - - - -

6,754 6,842 - - - - - -

$ 13.26 $ 15.69 - - - - - -


Canadian Resources Fund

43










2017 2016

$ 134,580 $ 158,480 - -

2,955 6,924 - - - - - - - - - - 1 1

137,536 165,405

- - 18 22

- - - -

281 828 299 850

$ 137,237 $ 164,555

$ 137,237 $ 164,555 - - - - - -

33,481 39,566 - - - - - -

$ 4.10 $ 4.16 - - - - - -


Canadian Growth Fund

44










2017 2016

$ 61,776 $ 69,512 - -

2,233 1,082 - - - - - 224 - - - - - -

64,009 70,818

- - 7 8 - - - -

132 355 139 363

$ 63,870 $ 70,455

$ 63,870 $ 70,455 - - - - - -

2,909 3,029 - - - - - -

$ 21.96 $ 23.26 - - - - - -


Canadian Small Cap Fund

45










2017 2016

$ 5,239,339 $ 5,322,249 - -

23,328 13,167 25,122 1,962 6,983 7,436

11,399 13,178 - - - -

15 16 5,306,186 5,358,008

43,417 - 710 722

- - - -

9,092 20,227 53,219 20,949

$ 5,252,967 $ 5,337,059

$ 3,037,035 $ 3,085,246 831,728 811,704

1,384,204 1,440,109 - -

165,194 168,118 41,945 41,275 77,599 80,740

- -

$ 18.38 $ 18.35 19.83 19.67 17.84 17.84

- - See accompanying notes to the financial statements.

Dividend Fund

46










2017 2016

$ 56,894 $ 55,928 - -

324 632 - - - - - - - - - - - -

57,218 56,560

- - 4 4 - - - -

108 308 112 312

$ 57,106 $ 56,248

$ 57,106 $ 56,248 - - - - - -

56,951 55,583 - - - - - -

$ 1.00 $ 1.01 - - - - - -


T-Bill Fund

47










2017 2016

$ 11,744,951 $ 12,000,986 - -

7,117 10,656 22,450 -

- - - - - - - -

29 29 11,774,547 12,011,671

- - 1,451 1,475

- - - -

9,616 19,332 11,067 20,807

$ 11,763,480 $ 11,990,864

$ 3,554,838 $ 3,627,640 5,037,257 5,141,757 1,239,555 1,281,365 1,931,830 1,940,102

98,033 98,937 145,561 146,593 35,335 36,035 51,027 50,873

$ 36.26 $ 36.67 34.61 35.08 35.08 35.56 37.86 38.14


Canadian-35 Index Fund

48










2017 2016

$ 25,207,677 $ 23,806,318 1,180,097 1,282,665

16,445 10,697 - - - - - - - -

107,725 101,307 105 99

26,512,049 25,201,086

- - 3,657 3,458

98,572 204,670 - -

9,041 16,374 111,270 224,502

$ 26,400,779 $ 24,976,584

$ 16,591,049 $ 15,700,459 4,320,749 4,082,586 4,983,389 4,713,740

505,592 479,799

1,499,525 1,514,132 387,304 390,351 435,769 440,835 47,619 48,045

$ 11.06 $ 10.37 11.16 10.46 11.44 10.69 10.62 9.99


Can-Am Fund

49










2017 2016

$ 12,812,320 $ 11,481,665 841,643 866,012 12,520 15,483

- - - - - - - 297,112 - -

64 59 13,666,547 12,660,331

- - 1,825 1,660

71,689 - 61,731 245,844 4,965 11,090

140,210 258,594

$ 13,526,337 $ 12,401,737

$ 10,858,337 $ 9,941,718 2,224,926 2,054,318

322,951 297,797 120,123 107,904

1,408,861 1,421,088 290,626 295,053 40,986 41,691 16,478 16,229

$ 7.71 $ 7.00 7.66 6.96 7.88 7.14 7.29 6.65


Can-Asian Fund

50

2017 2016AssetsCurrent assets

Non-derivative financial assets at fair value through profit or loss $ 9,263,449 $ 8,398,297 Non-derivative financial assets pledged as collateral at fair value through profit or loss 412,335 426,513 Cash and cash equivalents 14,990 10,536 Receivable for investments sold - - Interest receivable - - Dividends receivable - - Derivative assets - - Margin on futures contracts 160,910 - Other receivables 45 40

9,851,729 8,835,386


Payable for investments purchased - - Management fees payable 1,389 1,252 Derivative liabilities 161,824 52,715 Margin on futures contracts - 47,882 Other payable and accrued expenses 7,988 14,691

171,201 116,540

Net assets attributable to contractholders $ 9,680,528 $ 8,718,846

Net assets attributable to contractholders per class VIO $ 8,553,446 $ 7,705,972 VIO2 677,483 597,298 VIO3 449,599 415,576

Units outstandingVIO 788,041 809,206 VIO2 60,278 60,748 VIO3 43,143 45,315

Net assets attributable to contractholders per unit VIO $ 10.85 $ 9.52 VIO2 11.24 9.83 VIO3 10.42 9.17



Can-Daq 100 Fund

51






Net assets attributable to contractholders per class VIOVIO2VIO3

Units outstandingVIOVIO2VIO3

Net assets attributable to contractholders per unit VIOVIO2VIO3


2017 2016

$ 10,028,238 $ 9,440,900 852,625 904,967 12,123 11,441

- - - - - - - 298,993

189,210 - 47 43

11,082,243 10,656,344

- - 1,436 1,353

259,088 - - 284,279

8,857 16,019 269,381 301,651

$ 10,812,862 $ 10,354,693

$ 6,056,669 $ 5,782,916 4,533,886 4,355,642

222,307 216,135

517,255 524,351 402,158 408,566 20,504 21,031

$ 11.71 $ 11.03 11.27 10.66 10.84 10.28


Can-Euro Fund

52










2017 2016

$ 1,427,805 $ 1,443,207 29,952 29,966 17,545 11,436

- - - - - - - 10,719

14,236 - 8 8

1,489,546 1,495,336

- - 204 204

19,379 6,201 - 5,106

2,300 6,900 21,883 18,411

$ 1,467,663 $ 1,476,925

$ 783,699 $ 798,730 365,296 361,107 318,668 317,088

49,356 50,038 22,690 22,334 19,238 19,126

$ 15.88 $ 15.96 16.10 16.17 16.56 16.58


Can-Global Bond Fund

53










2017 2016

$ 112,032 $ 113,797 - -

645 2,289 - - - -

176 218 - - - - - -

112,853 116,304

- - 15 16

- - - -

231 623 246 639

$ 112,607 $ 115,665

$ 112,607 $ 115,665 - - - -

6,231 6,619 - - - -

$ 18.07 $ 17.47 - - - -


American Asset Allocation Fund

54










2017 2016

$ 124,015 $ 121,303 - -

3,049 870 - - - -

516 613 - - - - - -

127,580 122,786

- - 18 17

- - - -

258 866 276 883

$ 127,304 $ 121,903

$ 127,304 $ 121,903 - - - -

8,196 8,116 - - - -

$ 15.53 $ 15.02 - - - -


American Equity Index Fund

55










2017 2016

$ 1,441,979 $ 1,285,339 - -

16,822 19,620 - - - - - - - - - - 6 5

1,458,807 1,304,964

- - 145 138

- - - -

2,704 7,026 2,849 7,164

$ 1,455,958 $ 1,297,800

$ 1,401,547 $ 1,250,648 54,411 47,152

- -

174,685 176,650 6,502 6,411

- -

$ 8.02 $ 7.08 8.37 7.35


Can-Emerge Fund

56










2017 2016

$ 52,304 $ 46,963 - -

2,480 2,060 - - - - - - - - - - - -

54,784 49,023

- - 8 7 - - - -

101 260 109 267

$ 54,675 $ 48,756

$ 54,675 $ 48,756 - - - -

7,980 7,863 - - - -

$ 6.85 $ 6.20 - - - -


European Equity Index Fund

57










2017 2016

$ 101,723 $ 131,897 - -

3,544 4,368 - - - - - - - - - - 1 2

105,268 136,267

- - 13 17

- - - -

213 769 226 786

$ 105,042 $ 135,481

$ 105,042 $ 135,481 - - - -

11,334 14,766 - - - -

$ 9.27 $ 9.18 - - - -


International Bond Index Fund

58










2017 2016

$ 212,270 $ 194,973 - -

3,461 7,438 - - - - - - - - - - 1 1

215,732 202,412

- - 33 31

- - - -

433 1,032 466 1,063

$ 215,266 $ 201,349

$ 215,266 $ 201,349 - - - -

32,905 33,233 - - - -

$ 6.54 $ 6.06 - - - -


Information Technology Fund

59










2017 2016

$ 28,884 $ 27,555 - -

667 933 - - - -

120 139 - - - - - -

29,671 28,627

- - 5 4 - - - -

58 139 63 143

$ 29,608 $ 28,484

$ 29,608 $ 28,484 - - - -

2,823 2,808 - - - -

$ 10.49 $ 10.14 - - - -


International Brands Fund

60










2017 2016

$ 17,240,458 $ 18,040,189 - -

13,833 12,125 - - - -

46,934 34,530 - - - -

76 80 17,301,301 18,086,924

- - 2,605 2,711

- - - -

10,051 18,911 12,656 21,622

$ 17,288,645 $ 18,065,302

$ 15,089,504 $ 15,788,401 2,199,141 2,276,901

- -

807,998 827,396 111,666 113,590

- -

$ 18.68 $ 19.08 19.69 20.04


Equity Fund

61










2017 2016

$ 11,290,239 $ 11,825,693 - -

4,792 4,340 232,107 211,354 70,915 63,343

- - - - - -

18 19 11,598,071 12,104,749

192,416 238,260 1,442 1,483

- - - -

8,578 18,075 202,436 257,818

$ 11,395,635 $ 11,846,931

$ 6,149,824 $ 6,260,073 4,173,313 4,322,977 1,072,498 1,263,881

135,628 140,128 96,594 101,242 22,795 27,348

$ 45.34 $ 44.67 43.20 42.70 47.05 46.21


Mid-Term Bond Fund

62

Statements of Comprehensive IncomeFor the six-month periods ended June 30 (unaudited)

2017 2016Income

Net foreign exchange gain (loss) on cash and cash equivalents $ (4,409) $ (2,541) Other income - - Net gain (loss) on investments 327,815 1,022,148

323,406 1,019,607

Expenses Management and advisory fees 306,380 300,709 Administration fees 71,859 71,349 Custodian fees 5,372 8,293 Transaction costs 12,834 19,894 Interest expense 7 14 Goods and services tax / Harmonized sales tax 43,972 41,954 Other fees and expenses - -

440,424 442,213

Expenses absorbed by manager (4,603) (18,855) 435,821 423,358

Withholding taxes 809 595

Increase (decrease) in net assets from operations attributable to contractholders $ (113,224) $ 595,654

Increase (decrease) in net assets from operations attributable to contractholders per class

VIO $ (23,778) $ 218,715 VIO2 (60,183) 246,731 VIO3 (29,263) 130,208 VIO4 - -

Daily average number of units - VIO 438,073 453,729 VIO2 560,498 589,902 VIO3 281,410 290,352 VIO4 - -

Increase (decrease) in net assets from operations attributable to contractholders per daily average number of units per class

VIO $ (0.05) $ 0.48 VIO2 (0.11) 0.42 VIO3 (0.10) 0.45 VIO4 - -



63


IncomeNet foreign exchange gain (loss) on cash and cash equivalentsOther incomeNet gain (loss) on investments

Expenses Management and advisory feesAdministration feesCustodian feesTransaction costs Interest expenseGoods and services tax / Harmonized sales taxOther fees and expenses

Expenses absorbed by manager

Withholding taxes

Increase (decrease) in net assets from operations attributable to contractholders


VIOVIO2VIO3VIO4

Daily average number of unitsVIOVIO2VIO3VIO4


VIOVIO2VIO3VIO4

2017 2016

$ - $ - - -

3,443 6,537 3,443 6,537

1,516 1,594 12,333 12,274

10 2 6 - - -

250 229 - -

14,115 14,099

(11,673) (11,863) 2,442 2,236

- -

$ 1,001 $ 4,301

$ 1,001 $ 4,301 - - - - - -

9,897 10,212 - - - - - -

$ 0.10 $ 0.42 - - - - - -


Bond Fund

64





Withholding taxes



VIOVIO2VIO3VIO4



VIOVIO2VIO3VIO4

2017 2016

$ (2) $ (46) 49 -

(8,294) 18,427 (8,247) 18,381

1,528 1,228 12,785 12,796

24 1 - 4 1 -

228 167 1 -

14,567 14,196

(12,290) (12,514) 2,277 1,682

285 206

$ (10,809) $ 16,493

$ (10,809) $ 16,493 - - - - - -

9,752 9,737 - - - - - -

$ (1.11) $ 1.69 - - - - - -



65





Withholding taxes



VIOVIO2VIO3VIO4



VIOVIO2VIO3VIO4

2017 2016

$ - $ - - -

6,916 11,678 6,916 11,678

3,275 2,729 12,929 12,514

36 20 20 18

- 10 561 410

- - 16,821 15,701

(11,559) (11,862) 5,262 3,839

- -

$ 1,654 $ 7,839

$ 1,654 $ 7,839 - - - - - -

12,162 12,049 - - - - - -

$ 0.14 $ 0.65 - - - - - -



66





Withholding taxes



VIOVIO2VIO3VIO4



VIOVIO2VIO3VIO4

2017 2016

$ - $ - - -

(14,800) 24,836 (14,800) 24,836

1,005 925 12,204 12,104

25 1 9 - - -

135 106 - -

13,378 13,136

(11,799) (11,876) 1,579 1,260

- -

$ (16,379) $ 23,576

$ (16,379) $ 23,576 - - - - - -

6,783 7,150 - - - - - -

$ (2.41) $ 3.30 - - - - - -



67





Withholding taxes



VIOVIO2VIO3VIO4



VIOVIO2VIO3VIO4

2017 2016

$ - $ - - -

1,299 11,369 1,299 11,369

1,747 1,711 12,294 12,218

10 2 30 - 4 -

226 197 - -

14,311 14,128

(11,691) (11,867) 2,620 2,261

- -

$ (1,321) $ 9,108

$ (1,321) $ 9,108 - - - - - -

34,198 38,842 - - - - - -

$ (0.04) $ 0.23 - - - - - -



68





Withholding taxes



VIOVIO2VIO3VIO4



VIOVIO2VIO3VIO4

2017 2016

$ - $ - - -

(2,837) 14,330 (2,837) 14,330

680 587 12,126 12,026

8 - 8 - 1 -

85 77 - -

12,908 12,690

(11,845) (11,880) 1,063 810

- -

$ (3,900) $ 13,520

$ (3,900) $ 13,520 - - - - - -

2,956 3,079 - - - - - -

$ (1.32) $ 4.39 - - - - - -



69





Withholding taxes



VIOVIO2VIO3VIO4



VIOVIO2VIO3VIO4

2017 2016

$ 506 $ (2,310) - 12

113,680 220,351 114,186 218,053

66,041 62,051 27,209 26,352 2,874 1,816 1,409 2,954

5 1 9,859 8,357

- - 107,397 101,531

(8,665) (15,523) 98,732 86,008

407 629

$ 15,047 $ 131,416

$ 15,047 $ 74,279 - 23,066 - 34,071 - -

167,764 174,367 41,679 42,565 78,310 85,140

- -

$ - $ 0.43 - 0.54 - 0.40 - -


Dividend Fund

70





Withholding taxes



VIOVIO2VIO3VIO4



VIOVIO2VIO3VIO4

2017 2016

$ - $ - - -

122 139 122 139

349 346 12,099 12,018

320 257 - - - -

53 44 - -

12,821 12,665

(12,182) (12,137) 639 528

- -

$ (517) $ (389)

$ (517) $ (389) - - - - - -

55,476 54,173 - - - - - -

$ (0.01) $ (0.01) - - - - - -


T-Bill Fund

71





Withholding taxes



VIOVIO2VIO3VIO4



VIOVIO2VIO3VIO4

2017 2016

$ - $ - - -

55,557 875,835 55,557 875,835

135,022 118,753 42,313 39,134

391 279 405 204

- - 19,690 16,501

- - 197,821 174,871

(4,309) (12,831) 193,512 162,040

- -

$ (137,955) $ 713,795

$ (38,928) $ 214,230 (67,971) 302,585 (16,856) 75,490 (14,200) 121,490

98,586 99,702 146,437 152,016 35,793 36,680 50,889 52,273

$ (0.39) $ 2.15 (0.46) 1.99 (0.47) 2.06 (0.28) 2.32



72





Withholding taxes



VIOVIO2VIO3VIO4



VIOVIO2VIO3VIO4

2017 2016

$ (218) $ - - -

2,121,247 637,454 2,121,029 637,454

326,861 296,234 77,917 72,501 1,833 1,770

1 - 27 718

42,321 37,687 - -

448,960 408,910

(7,813) (16,122) 441,147 392,788

- -

$ 1,679,882 $ 244,666

$ 1,049,564 $ 145,621 272,480 37,424 327,828 57,710 30,010 3,911

1,507,115 1,575,968 390,178 403,940 440,611 464,925 47,402 46,863

$ 0.70 $ 0.09 0.70 0.09 0.74 0.12 0.63 0.08


Can-Am Fund

73





Withholding taxes



VIOVIO2VIO3VIO4



VIOVIO2VIO3VIO4

2017 2016

$ - $ - - -

1,466,301 (1,446,163) 1,466,301 (1,446,163)

158,720 139,438 47,818 44,543 1,551 1,686

1 - 64 594

19,646 16,897 - -

227,800 203,158

(13,053) (18,321) 214,747 184,837

- -

$ 1,251,554 $ (1,631,000)

$ 1,007,527 $ (1,300,476) 202,954 (278,477) 30,609 (37,517) 10,464 (14,530)

1,415,579 1,453,815 292,902 302,138 41,563 41,684 16,350 16,748

$ 0.71 $ (0.89) 0.69 (0.92) 0.74 (0.90) 0.64 (0.87)


Can-Asian Fund

74


2017 2016Income

Net foreign exchange gain (loss) on cash and cash equivalents $ - $ - Other income - - Net gain (loss) on investments 1,377,418 (393,633)

1,377,418 (393,633)

Expenses Management and advisory fees 122,785 106,940 Administration fees 40,026 37,243 Custodian fees 1,166 1,520 Transaction costs - - Interest expense 18 228 Goods and services tax / Harmonized sales tax 15,744 13,137 Other fees and expenses - -

179,739 159,068

Expenses absorbed by manager (10,709) (18,363) 169,030 140,705

Withholding taxes - -

Increase (decrease) in net assets from operations attributable to contractholders $ 1,208,388 $ (534,338)


VIO $ 1,066,047 $ (475,882) VIO2 85,805 (33,890) VIO3 56,536 (24,566)

Daily average number of unitsVIO 795,894 845,795 VIO2 60,785 61,258 VIO3 44,384 44,800


VIO $ 1.34 $ (0.56) VIO2 1.41 (0.55) VIO3 1.27 (0.55)


Can-Daq 100 Fund

75





Withholding taxes



VIOVIO2VIO3

Daily average number of unitsVIOVIO2VIO3


VIOVIO2VIO3

2017 2016

$ - $ - - -

795,949 (392,931) 795,949 (392,931)

128,302 112,511 45,160 41,882 1,265 1,410

- - 7 486

16,751 14,093 - -

191,485 170,382

(12,024) (20,229) 179,461 150,153

- -

$ 616,488 $ (543,084)

$ 355,653 $ (299,223) 248,653 (232,520) 12,182 (11,341)

520,731 542,124 404,615 420,966 20,907 20,898

$ 0.68 $ (0.55) 0.61 (0.55) 0.58 (0.54)


Can-Euro Fund

76





Withholding taxes



VIOVIO2VIO3



VIOVIO2VIO3

2017 2016

$ - $ - - -

20,641 93,442 20,641 93,442

18,579 19,496 22,077 22,632

819 851 - - - 20

2,357 2,261 - -

43,832 45,260

(17,191) (19,634) 26,641 25,626

- -

$ (6,000) $ 67,816

$ (4,194) $ 36,419 (1,562) 16,979

(244) 14,418

49,406 51,092 22,528 22,705 19,229 18,464

$ (0.08) $ 0.71 (0.07) 0.75 (0.01) 0.78



77





Withholding taxes



VIOVIO2VIO3



VIOVIO2VIO3

2017 2016

$ (108) $ (5,520) - -

6,414 437 6,306 (5,083)

1,419 1,404 12,629 12,537

40 53 1 12 1 -

203 180 - -

14,293 14,186

(12,174) (12,314) 2,119 1,872

194 120

$ 3,993 $ (7,075)

$ 3,993 $ (7,075) - - - -

6,452 7,059 - - - -

$ 0.62 $ (1.00) - - - -



78





Withholding taxes



VIOVIO2VIO3



VIOVIO2VIO3

2017 2016

$ (33) $ (4,341) - -

6,813 (2,202) 6,780 (6,543)

1,600 2,125 12,655 12,671

15 28 - 8 - -

281 333 - -

14,551 15,165

(12,126) (12,279) 2,425 2,886

172 206

$ 4,183 $ (9,635)

$ 4,183 $ (9,635) - - - -

8,186 12,193 - - - -

$ 0.51 $ (0.79) - - - -



79





Withholding taxes



VIOVIO2VIO3



VIOVIO2VIO3

2017 2016

$ (68) $ (393) - -

195,906 7,187 195,838 6,794

13,486 11,945 18,171 17,347

70 29 25 13

- 3 1,927 1,534

- - 33,679 30,871

(12,264) (14,197) 21,415 16,674

1,022 1,516

$ 173,401 $ (11,396)

$ 166,838 $ (10,913) 6,563 (483)

- -

175,976 188,359 6,494 6,938

- -

$ 0.95 $ (0.06) 1.01 (0.07)


Can-Emerge Fund

80





Withholding taxes



VIOVIO2VIO3



VIOVIO2VIO3

2017 2016

$ (5) $ (209) - -

6,243 (5,772) 6,238 (5,981)

657 548 12,091 12,064

1 1 - 79 - -

79 59 - -

12,828 12,751

(11,869) (11,947) 959 804

135 340

$ 5,144 $ (7,125)

$ 5,144 $ (7,125) - - - -

7,912 7,668 - - - -

$ 0.65 $ (0.93) - - - -



81





Withholding taxes



VIOVIO2VIO3



VIOVIO2VIO3

2017 2016

$ (160) $ (2) - -

2,416 5,495 2,256 5,493

1,236 1,562 12,602 12,617

15 15 12 1 19 - 89 98

- - 13,973 14,293

(12,114) (12,269) 1,859 2,024

19 15

$ 378 $ 3,454

$ 378 $ 3,454 - - - -

12,336 14,804 - - - -

$ 0.03 $ 0.23 - - - -



82





Withholding taxes



VIOVIO2VIO3



VIOVIO2VIO3

2017 2016

$ (10) $ (4) 42 -

20,824 (8,483) 20,856 (8,487)

3,011 2,399 12,470 12,425

16 28 1 1 - -

448 322 - -

15,946 15,175

(11,563) (12,018) 4,383 3,157

253 260

$ 16,220 $ (11,904)

$ 16,220 $ (11,904) - - - -

33,151 32,930 - - - -

$ 0.49 $ (0.36) - - - -



83





Withholding taxes



VIOVIO2VIO3



VIOVIO2VIO3

2017 2016

$ - $ (49) - -

1,596 (630) 1,596 (679)

416 322 12,171 12,074

- - - 1 - -

52 34 - -

12,639 12,431

(12,043) (12,016) 596 415

40 36

$ 960 $ (1,130)

$ 960 $ (1,130) - - - -

2,818 2,508 - - - -

$ 0.34 $ (0.45) - - - -



84





Withholding taxes



VIOVIO2VIO3



VIOVIO2VIO3

2017 2016

$ (5,813) $ (8,064) - -

(10,963) 799,414 (16,776) 791,350

244,143 229,318 56,059 53,891 3,242 5,213

17,845 26,668 5 19

31,309 28,484 - -

352,603 343,593

(6,191) (17,075) 346,412 326,518

1,085 862

$ (364,273) $ 463,970

$ (326,001) $ 400,674 (38,272) 63,296

- -

815,892 857,843 112,447 113,820

- -

$ (0.40) $ 0.47 (0.34) 0.56


Equity Fund

85





Withholding taxes



VIOVIO2VIO3



VIOVIO2VIO3

2017 2016

$ - $ - - -

365,469 542,654 365,469 542,654

134,705 144,115 41,345 43,607 1,099 1,253

- - 201 45

20,551 20,970 - -

197,901 209,990

(5,880) (13,461) 192,021 196,529

- -

$ 173,448 $ 346,125

$ 94,696 $ 186,598 52,924 119,053 25,828 40,474

138,053 144,967 99,599 107,617 26,210 28,102

$ 0.69 $ 1.29 0.53 1.11 0.99 1.44


Mid-Term Bond Fund

86

Statements of Changes in Net Assets Attributable to ContractholdersFor the six-month periods ended June 30 (unaudited)

2017 2016Net assets attributable to contractholders, beginning of period $ 24,894,075 $ 24,761,251

Increase (decrease) in net assets from operations attributable to contractholders (113,224) 595,654

Redeemable unit transactionsProceeds from redeemable units issued 1,562,920 1,696,820 Redemption of redeemable units (2,276,986) (2,191,184)

(714,066) (494,364)

Net increase (decrease) in net assets attributable to contractholders (827,290) 101,290

Net assets attributable to contractholders, end of period $ 24,066,785 $ 24,862,541

2017 2016Cash and cash equivalents, beginning of period $ 15,616 $ 79,617

Cash flows from operating activitiesIncrease (decrease) in net assets attributable to contractholders (113,224) 595,654 Adjustments:

Foreign exchange unrealized (gain) loss on cash and cash equivalents (1,646) (67) Net realized (gain) loss on sale of investments (685,400) (45,044) Change in unrealized (appreciation) depreciation of investments 717,166 (618,130) Purchases of investments (23,518,898) (22,339,364) Proceeds from sales and maturities of investments 24,202,488 22,849,454 Transaction costs 12,834 19,894 (Increase) Decrease in receivable for investments sold (129,522) 19,399 (Increase) Decrease in interest receivable 9,404 (3,278) (Increase) Decrease in dividends receivable (8,488) (3,577) (Increase) Decrease in derivative assets 1 - (Increase) Decrease in margin on futures contracts - - (Increase) Decrease in other receivables - (27) Increase (Decrease) in payables for investments purchased 243,723 (46,192) Increase (Decrease) in management fees payable (104) 1,625 Increase (Decrease) in derivative liabilities - - Increase (Decrease) from margin on futures contracts - - Increase (Decrease) in other payable and accrued expenses (12,041) 568

Net cash provided by (used in) operating activities 716,293 430,915

Cash flows from financing activitiesProceeds from redeemable units issued 1,562,920 1,696,820 Payments on redemption of redeemable units (2,276,986) (2,191,184)

Net cash provided by (used in) financing activities (714,066) (494,364)

Net increase (decrease) in cash and cash equivalents 2,227 (63,449)

Foreign exchange unrealized gain (loss) on cash and cash equivalents 1,646 67

Cash and cash equivalents, end of period $ 19,489 $ 16,235

Other cash flow information:Interest received $ 195,654 $ 201,756 Dividends received, net of withholding taxes 163,943 149,785 Interest paid 7 14




Statements of Cash FlowsFor the six-month periods ended June 30 (unaudited)

87


Net assets attributable to contractholders, beginning of period


Redeemable unit transactionsProceeds from redeemable units issuedRedemption of redeemable units

Net increase (decrease) in net assets attributable to contractholders

Net assets attributable to contractholders, end of period

Cash and cash equivalents, beginning of period

Cash flows from operating activitiesIncrease (decrease) in net assets attributable to contractholdersAdjustments:

Foreign exchange unrealized (gain) loss on cash and cash equivalentsNet realized (gain) loss on sale of investmentsChange in unrealized (appreciation) depreciation of investmentsPurchases of investmentsProceeds from sales and maturities of investmentsTransaction costs(Increase) Decrease in receivable for investments sold(Increase) Decrease in interest receivable(Increase) Decrease in dividends receivable(Increase) Decrease in derivative assets(Increase) Decrease in margin on futures contracts(Increase) Decrease in other receivablesIncrease (Decrease) in payables for investments purchasedIncrease (Decrease) in management fees payableIncrease (Decrease) in derivative liabilitiesIncrease (Decrease) from margin on futures contractsIncrease (Decrease) in other payable and accrued expenses

Net cash provided by (used in) operating activities

Cash flows from financing activitiesProceeds from redeemable units issuedPayments on redemption of redeemable units

Net cash provided by (used in) financing activities

Net increase (decrease) in cash and cash equivalents

Foreign exchange unrealized gain (loss) on cash and cash equivalents

Cash and cash equivalents, end of period

Other cash flow information:Interest receivedDividends received, net of withholding taxesInterest paid


2017 2016$ 162,803 $ 165,000

1,001 4,301

6,945 6,764 (15,887) (6,928) (8,942) (164)

(7,941) 4,137

$ 154,862 $ 169,137

2017 2016$ 6,385 $ 5,718

1,001 4,301

- - (229) 19

(1,108) (4,309) - 19

6,293 (19) 6 - - -

359 - - 376 - - - - - (1) - -

(1) 9 - - - -

(623) 6 5,698 401

6,945 6,764 (15,887) (6,928) (8,942) (164)

(3,244) 237

- -

$ 3,141 $ 5,955

$ - $ - 2,465 2,623


Bond Fund

Bond Fund

88


















2017 2016$ 127,954 $ 109,599

(10,809) 16,493

7,895 7,753 (8,316) (6,477)

(421) 1,276

(11,230) 17,769

$ 116,724 $ 127,368

2017 2016$ 3,096 $ 2,208

(10,809) 16,493

4 64 (139) (37)

14,046 (8,398) - (4,021)

2,597 37 - 4 - - - -

(766) - (1,792) -

- - - (1) - -

(2) 9 (1,277) (3,218)

- - (424) 4

1,438 936

7,895 7,753 (8,316) (6,477)

(421) 1,276

1,017 2,212

(4) (64)

$ 4,109 $ 4,356

$ - $ - 850 1,168

1 - See accompanying notes to the financial statements.



89


















2017 2016$ 321,485 $ 276,677

1,654 7,839

33,284 9,965 (16,146) (29,215) 17,138 (19,250)

18,792 (11,411)

$ 340,277 $ 265,266

2017 2016$ 2,260 $ 2,362

1,654 7,839

- - (1,772) (2,224)

(478) (5,001) (16,092) -

7,703 18,882 20 18

- - - -

728 693 - - - - - - - - 1 12 - - - -

(916) (6) (9,152) 20,213

33,284 9,965 (16,146) (29,215) 17,138 (19,250)

7,986 963

- -

$ 10,246 $ 3,325

$ - $ - 5,394 5,145

- 10 See accompanying notes to the financial statements.



90


















2017 2016$ 107,319 $ 84,182

(16,379) 23,576

6,064 5,657 (7,424) (7,173) (1,360) (1,516)

(17,739) 22,060

$ 89,580 $ 106,242

2017 2016$ 1,642 $ 2,959

(16,379) 23,576

- - 384 67

14,873 (24,139) - 67

3,900 (69) 9 - - - - -

238 502 - - - - 1 (1) - -

(2) 8 - - - -

(354) 4 2,670 15

6,064 5,657 (7,424) (7,173) (1,360) (1,516)

1,310 (1,501)

- -

$ 2,952 $ 1,458

$ - $ - 695 1,266




91


















2017 2016$ 164,555 $ 137,950

(1,321) 9,108

10,222 11,249 (36,219) (8,396) (25,997) 2,853

(27,318) 11,961

$ 137,237 $ 149,911

2017 2016$ 6,924 $ 2,364

(1,321) 9,108

- - (3,841) 233 4,402 (9,543)

- 233 23,309 (233)

30 - - - - - - 1,070 - - - - - - - -

(4) 10 - - - -

(547) 5 22,028 883

10,222 11,249 (36,219) (8,396) (25,997) 2,853

(3,969) 3,736

- -

$ 2,955 $ 6,100

$ - $ - 1,860 3,129




92


















2017 2016$ 70,455 $ 53,876

(3,900) 13,520

3,045 3,240 (5,730) (4,456) (2,685) (1,216)

(6,585) 12,304

$ 63,870 $ 66,180

2017 2016$ 1,082 $ 1,710

(3,900) 13,520

- - (298) 1

3,960 (13,651) - 1

4,066 (1) 8 - - - - -

224 220 - - - - - - - -

(1) 5 - - - -

(223) 2 3,836 97

3,045 3,240 (5,730) (4,456) (2,685) (1,216)

1,151 (1,119)

- -

$ 2,233 $ 591

$ - $ - 1,049 899




93


















2017 2016$ 5,337,059 $ 5,240,059

15,047 131,416

354,307 280,267 (453,446) (475,490) (99,139) (195,223)

(84,092) (63,807)

$ 5,252,967 $ 5,176,252

2017 2016$ 13,167 $ 58,839

15,047 131,416

(14) (56) (250,060) 627 219,307 (138,766)

(3,358,227) (2,266,034) 3,470,481 2,481,303

1,409 2,954 (23,160) (17,342)

453 (645) 1,779 713

- - - - 1 (7)

43,417 (7,559) (12) 316

- - - -

(11,135) 115 109,286 187,035

354,307 280,267 (453,446) (475,490) (99,139) (195,223)

10,147 (8,188)

14 56

$ 23,328 $ 50,707

$ 18,018 $ 15,713 66,670 65,924

5 1 See accompanying notes to the financial statements.

Dividend Fund

Dividend Fund

94


















2017 2016$ 56,248 $ 55,457

(517) (389)

11,888 12,312 (10,513) (9,833)

1,375 2,479

858 2,090

$ 57,106 $ 57,547

2017 2016$ 632 $ 531

(517) (389)

- - - -

25 (9) (88,824) (85,840) 87,833 83,852

- - - - - - - - - - - - - - - - - 2 - - - -

(200) 1 (1,683) (2,383)

11,888 12,312 (10,513) (9,833)

1,375 2,479

(308) 96

- -

$ 324 $ 627

$ 150 $ 113 - - - -


T-Bill Fund

T-Bill Fund

95


















2017 2016$ 11,990,864 $ 10,545,330

(137,955) 713,795

587,864 613,329 (677,293) (784,451) (89,429) (171,122)

(227,384) 542,673

$ 11,763,480 $ 11,088,003

2017 2016$ 10,656 $ 6,951

(137,955) 713,795

- - (93,230) (33,155) 200,055 (683,435)

(306,049) (562,936) 454,854 675,962

405 204 (22,450) (16,180)

- - - 81,378 - - - - - (13) - -

(24) 689 - - - -

(9,716) 264 85,890 176,573

587,864 613,329 (677,293) (784,451) (89,429) (171,122)

(3,539) 5,451

- -

$ 7,117 $ 12,402

$ 131 $ 228 162,247 240,461




96


















2017 2016$ 24,976,584 $ 24,440,276

1,679,882 244,666

1,398,037 1,418,266 (1,653,724) (1,803,536)

(255,687) (385,270)

1,424,195 (140,604)

$ 26,400,779 $ 24,299,672

2017 2016$ 10,697 $ 15,328

1,679,882 244,666

- - (21) -

13,196 (3,296) (36,219,230) (33,878,297) 34,907,263 34,519,395

1 - - - - -

(6,418) - - -

(6) (444,127) - (39) - -

199 1,443 - (17,745)

(106,098) (41,704) (7,333) (206)

261,435 380,090

1,398,037 1,418,266 (1,653,724) (1,803,536)

(255,687) (385,270)

5,748 (5,180)

- -

$ 16,445 $ 10,148

$ 65,351 $ 52,613 - -


Can-Am Fund

Can-Am Fund

97


















2017 2016$ 12,401,737 $ 13,050,438

1,251,554 (1,631,000)

768,603 758,754 (895,557) (1,035,376) (126,954) (276,622)

1,124,600 (1,907,622)

$ 13,526,337 $ 11,142,816

2017 2016$ 15,483 $ 18,914

1,251,554 (1,631,000)

- - (7) -

6,089 (1,667) (18,707,368) (16,612,466) 17,394,999 18,883,348

1 - - - - - - -

297,112 (44,169) - (100,646)

(5) (13) - -

165 429 71,689 (11,958)

(184,113) - (6,125) (412)

123,991 481,446

768,603 758,754 (895,557) (1,035,376) (126,954) (276,622)

(2,963) 204,824

- -

$ 12,520 $ 223,738

$ 32,427 $ 26,385 - -


Can-Asian Fund

Can-Asian Fund

98


2017 2016Net assets attributable to contractholders, beginning of period $ 8,718,846 $ 8,959,830

Increase (decrease) in net assets from operations attributable to contractholders 1,208,388 (534,338)

Redeemable unit transactionsProceeds from redeemable units issued 305,635 339,106 Redemption of redeemable units (552,341) (522,712)

(246,706) (183,606)

Net increase (decrease) in net assets attributable to contractholders 961,682 (717,944)

Net assets attributable to contractholders, end of period $ 9,680,528 $ 8,241,886

2017 2016Cash and cash equivalents, beginning of period $ 10,536 $ 53,713

Increase (decrease) in net assets attributable to contractholders 1,208,388 (534,338) Adjustments:

Foreign exchange unrealized (gain) loss on cash and cash equivalents - - Net realized (gain) loss on sale of investments (7) - Change in unrealized (appreciation) depreciation of investments 5,148 (1,329) Purchases of investments (13,911,437) (11,942,522) Proceeds from sales and maturities of investments 13,055,322 12,811,990 Transaction costs - - (Increase) Decrease in receivable for investments sold - - (Increase) Decrease in interest receivable - - (Increase) Decrease in dividends receivable - - (Increase) Decrease in derivative assets - - (Increase) Decrease in margin on futures contracts (160,910) (107,185) (Increase) Decrease in other receivables (5) (11) Increase (Decrease) in payables for investments purchased - - Increase (Decrease) in management fees payable 137 405 Increase (Decrease) in derivative liabilities 109,109 (89,258) Increase (Decrease) from margin on futures contracts (47,882) - Increase (Decrease) in other payable and accrued expenses (6,703) (89)

Net cash provided by (used in) operating activities 251,160 137,663

Cash flows from financing activitiesProceeds from redeemable units issued 305,635 339,106 Payments on redemption of redeemable units (552,341) (522,712)

Net cash provided by (used in) financing activities (246,706) (183,606)

Net increase (decrease) in cash and cash equivalents 4,454 (45,943)

Foreign exchange unrealized gain (loss) on cash and cash equivalents - -

Cash and cash equivalents, end of period $ 14,990 $ 7,770

Other cash flow information:Interest received $ 23,595 $ 19,156 Dividends received, net of withholding taxes - - Interest paid 18 228



Can-Daq 100 Fund

Can-Daq 100 Fund

99








Increase (decrease) in net assets attributable to contractholdersAdjustments:










2017 2016$ 10,354,693 $ 10,209,740

616,488 (543,084)

478,321 491,681 (636,640) (600,932) (158,319) (109,251)

458,169 (652,335)

$ 10,812,862 $ 9,557,405

2017 2016$ 11,441 $ 41,815

616,488 (543,084)

- - (9) -

5,225 (1,371) (14,755,329) (14,993,734) 14,215,117 15,802,300

- - - - - - - -

298,993 52,340 (189,210) -

(4) (13) - -

83 450 259,088 24,294

(284,279) (264,793) (7,162) (320)

159,001 76,069

478,321 491,681 (636,640) (600,932) (158,319) (109,251)

682 (33,182)

- -

$ 12,123 $ 8,633

$ 26,321 $ 22,692 - - 7 486


Can-Euro Fund

Can-Euro Fund

100


















2017 2016$ 1,476,925 $ 1,496,234

(6,000) 67,816

66,898 102,432 (70,160) (62,792) (3,262) 39,640

(9,262) 107,456

$ 1,467,663 $ 1,603,690

2017 2016$ 11,436 $ 11,409

(6,000) 67,816

- - (2) -

542 (332) (1,976,193) (2,129,796) 1,991,069 2,045,233

- - - - - - - -

10,719 (38,131) (14,236) -

- (6) - - - 124

13,178 (10,905) (5,106) 53,854 (4,600) 28 9,371 (12,115)

66,898 102,432 (70,160) (62,792) (3,262) 39,640

6,109 27,525

- -

$ 17,545 $ 38,934

$ 3,810 $ 3,384 - - - 20




101


















2017 2016$ 115,665 $ 119,749

3,993 (7,075)

4,097 7,912 (11,148) (11,590) (7,051) (3,678)

(3,058) (10,753)

$ 112,607 $ 108,996

2017 2016$ 2,289 $ 83,458

3,993 (7,075)

8 15,740 (1,686) (25) (3,434) 390

- (72,198) 6,884 25

1 12 - - - -

42 (110) - - - - - - - -

(1) 5 - - - -

(392) 2 5,415 (63,234)

4,097 7,912 (11,148) (11,590) (7,051) (3,678)

(1,636) (66,912)

(8) (15,740)

$ 645 $ 806

$ 3 $ - 1,139 570




102


















2017 2016$ 121,903 $ 177,226

4,183 (9,635)

16,014 15,980 (14,796) (13,120)

1,218 2,860

5,401 (6,775)

$ 127,304 $ 170,451

2017 2016$ 870 $ 63,381

4,183 (9,635)

27 6,217 (766) 15

(4,895) 3,558 - (53,366)

2,949 (15) - 8 - - - -

97 572 - - - - - - - - 1 10 - - - -

(608) 4 988 (52,632)

16,014 15,980 (14,796) (13,120)

1,218 2,860

2,206 (49,772)

(27) (6,217)

$ 3,049 $ 7,392

$ 5 $ - 1,072 1,737




103


















2017 2016$ 1,297,800 $ 1,351,889

173,401 (11,396)

53,056 49,807 (68,299) (83,207) (15,243) (33,400)

158,158 (44,796)

$ 1,455,958 $ 1,307,093

2017 2016$ 19,620 $ 33,400

173,401 (11,396)

50 288 (13,858) (6,568)

(175,236) 9,490 - -

32,429 22,052 25 13

- - - - - - - - - -

(1) (2) - - 7 53 - - - -

(4,322) 23 12,495 13,953

53,056 49,807 (68,299) (83,207) (15,243) (33,400)

(2,748) (19,447)

(50) (288)

$ 16,822 $ 13,665

$ - $ - 5,790 8,591

- 3 See accompanying notes to the financial statements.

Can-Emerge Fund

Can-Emerge Fund

104


















2017 2016$ 48,756 $ 52,239

5,144 (7,125)

3,097 2,735 (2,322) (2,160)

775 575

5,919 (6,550)

$ 54,675 $ 45,689

2017 2016$ 2,060 $ 1,749

5,144 (7,125)

8 (34) - 1,552

(5,341) 6,488 - (46,564) - 44,916 - 79 - - - - - - - - - - - - - 1,019 1 1 - - - -

(159) 1 (347) 333

3,097 2,735 (2,322) (2,160)

775 575

428 908

(8) 34

$ 2,480 $ 2,691

$ - $ - 767 1,927




105


















2017 2016$ 135,481 $ 144,628

378 3,454

959 958 (31,776) (2,429) (30,817) (1,471)

(30,439) 1,983

$ 105,042 $ 146,611

2017 2016$ 4,368 $ 1,597

378 3,454

106 (4) (3,611) (483) 1,322 (4,914)

- - 32,451 3,105

12 1 - - - - - - - - - - 1 (1) - -

(4) 9 - - - -

(556) 4 30,099 1,171

959 958 (31,776) (2,429) (30,817) (1,471)

(718) (300)

(106) 4

$ 3,544 $ 1,301

$ 2 $ - 106 83 19 -




106


















2017 2016$ 201,349 $ 186,012

16,220 (11,904)

11,644 11,680 (13,947) (11,542) (2,303) 138

13,917 (11,766)

$ 215,266 $ 174,246

2017 2016$ 7,438 $ 2,123

16,220 (11,904)

14 (8) (968) (454)

(18,169) 10,671 - -

1,839 1,150 1 1 - - - - - - - - - - - - - - 2 11 - - - -

(599) 3 (1,660) (530)

11,644 11,680 (13,947) (11,542) (2,303) 138

(3,963) (392)

(14) 8

$ 3,461 $ 1,739

$ - $ - 1,434 1,475




107


















2017 2016$ 28,484 $ 23,999

960 (1,130)

855 3,864 (691) (679) 164 3,185

1,124 2,055

$ 29,608 $ 26,054

2017 2016$ 933 $ 1,229

960 (1,130)

(1) 9 - (97)

(1,329) 967 - (4,132) - 97 - 1 - - - -

19 114 - - - - - - - - 1 2 - - - -

(81) - (431) (4,169)

855 3,864 (691) (679) 164 3,185

(267) (984)

1 (9)

$ 667 $ 236

$ - $ - 246 317




108


















2017 2016$ 18,065,302 $ 17,364,651

(364,273) 463,970

1,611,550 1,637,772 (2,023,934) (2,077,346)

(412,384) (439,574)

(776,657) 24,396

$ 17,288,645 $ 17,389,047

2017 2016$ 12,125 $ 21,044

(364,273) 463,970

(1,575) 959 (905,526) 73,313

1,150,933 (662,339) (14,884,604) (16,078,554) 15,421,083 16,602,824

17,845 26,668 - - - -

(12,404) (6,366) - - - - 4 (35) - 35,639

(106) 1,203 - - - -

(8,860) 388 412,517 457,670

1,611,550 1,637,772 (2,023,934) (2,077,346)

(412,384) (439,574)

133 18,096

1,575 (959)

$ 13,833 $ 38,181

$ 1,078 $ 1,326 219,866 201,860


Equity Fund

Equity Fund

109


















2017 2016$ 11,846,931 $ 12,613,649

173,448 346,125

611,873 656,081 (1,236,617) (996,593)

(624,744) (340,512)

(451,296) 5,613

$ 11,395,635 $ 12,619,262

2017 2016$ 4,340 $ 41,826

173,448 346,125

- - 28,808 (177,150)

(221,760) (170,634) (7,919,655) (8,825,717) 8,648,061 9,154,205

- - (20,753) - (7,572) (4,074)

- - - - - - 1 (7)

(45,844) (10,798) (41) 780

- - - -

(9,497) 249 625,196 312,979

611,873 656,081 (1,236,617) (996,593)

(624,744) (340,512)

452 (27,533)

- -

$ 4,792 $ 14,293

$ 164,908 $ 190,820 - -


Mid-Term Bond Fund

Mid-Term Bond Fund

110

Notes to Financial Statements For the period ended June 30, 2017 (unaudited)

1. General information Investment Manager Series (“IMS”) segregated funds, which consist of the funds listed below (collectively, the “Funds”), are separate investment accounts established by ivari (“the Manager”). The Funds and their assets are owned by the Manager and are segregated from the Manager’s other assets. The Funds are not separate legal entities. The contractholders do not acquire any interest in them. The Funds invest in equity securities, investment grade debt securities, and derivatives to generate returns in the form of investment income and capital appreciation for the contractholders who are the ultimate beneficiaries of the Funds.

The Funds’ registered office is at 5000 Yonge Street, Toronto, Ontario, M2N 7J8, Canada.

The Manager is the sponsor of the Funds and provides general management and administrative services required by the Funds in their day-to-day operations, including providing or arranging the provision of investment advice, establishing brokerage arrangements relating to the purchase and sale of the investment portfolio of the Funds, and bookkeeping, recordkeeping and other administrative and operational services for the Funds.

The Manager has selected Foresters Asset Management Inc. (“FAM”) to provide investment advisory services to the Funds. FAM serves as the portfolio manager itself and/or hires an external investment sub-advisor to manage the investment portfolio of the Funds. Also the Manager has selected RBC Investor & Treasury Services as the custodian and administrator of the Funds. The inception date of each Fund reported in these financial statements is as follows:

Fund Inception Date Asset Allocation Fund April 1987 Bond Fund December 1986 Canadian Communications Fund October 1998 Canadian Financial Services Fund October 1998 Canadian Resources Fund October 1998 Canadian Growth Fund July 1974 Canadian Small Cap Fund October 1998 Dividend Fund May 1994 T-Bill Fund December 1986 Canadian-35 Index Fund April 1989 Can-Am Fund October 1992 Can-Asian Fund August 1993 Can-Daq 100 Fund November 1996 Can-Euro Fund June 1995 Can-Global Bond Fund May 1996 American Asset Allocation Fund November 1998 American Equity Index Fund November 1998 Can-Emerge Fund June 1996 European Equity Index Fund November 1998 International Bond Index Fund November 1998 Information Technology Fund November 1998 International Brands Fund October 1998 Equity Fund April 1987 Mid-Term Bond Fund March 1988 The interim financial statements were authorized for issue by the Manager effective September 11, 2017.

2. Basis of presentation These interim financial statements have been prepared in compliance with International Financial Reporting Standards (“IFRS”) as published by the International Accounting Standards Board (“IASB”) and use the historical cost basis, except for financial assets and liabilities measured at fair value. These financial statements are presented in Canadian dollars, the functional currency of the Funds, and all values are rounded to the nearest dollar except where otherwise indicated.

3. Summary of significant accounting policies Financial instruments The Funds recognize financial instruments at fair value upon initial recognition, plus transaction costs in the case of financial instruments measured at amortized cost. Purchases and sales of financial assets are recognized at their trade date. The Funds’ investments and derivative assets and liabilities are measured as fair value through profit or loss (“FVTPL”), including investments in debt securities which have been designated as FVTPL. The Funds’ obligation for net assets attributable to contractholders (“NAAC”) is presented at the redemption amount. All other financial assets and liabilities are measured at amortized cost. Financial assets and liabilities are offset and the net amount presented in the statements of financial position when, and only when, the Funds have a legal right to offset the amounts and intend either to settle on a net basis or to realize the asset and settle the liability simultaneously.

111


Valuation of investments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of financial assets and liabilities traded in active markets (such as publicly traded derivatives and marketable securities) are based on quoted market prices at the close of trading on the reporting date. The Funds use the closing bid prices for financial assets and closing ask prices for financial liabilities. The Funds’ policy is to recognize transfers in and out of the fair value hierarchy levels as at the end of the reporting period for transfers between Level 1 and 2 and as at the date of the transfer for transfers in and out of Level 3. The Canadian Life and Health Insurance Association (“CLHIA”) requires the Net Asset Value (“NAV”) of a segregated fund for contractholder transactions be based on fair value of the segregated fund’s assets and liabilities, in accordance with the valuation rules set out in the Fund’s information folder. The NAAC per unit and NAV per unit are disclosed in Note 13. The Funds have not changed their methodology with respect to calculating NAV. The fair values of the investments on the schedule of investment portfolio, for reporting NAAC for financial reporting purposes and for calculating daily NAVs, are determined as follows: a) Securities listed on a recognized public stock exchange are stated at their bid prices on the valuation date for reporting NAAC and at their close

prices on the valuation date for determining daily NAV.

b) Securities not listed on a recognized public stock exchange are valued based upon available public quotations in common use or at prices estimated to be fair value as determined by the Manager of the applicable Fund.

c) Short term investments are stated at amortized cost which, given the short term nature of the investments, approximates fair value.

d) Bonds are stated at their bid prices on the valuation date for reporting NAAC. They are valued at the average of the closing bid and ask prices provided by recognized investment dealers on the valuation date for determining daily NAV. For both NAAC and NAV, unlisted convertible debentures are valued at cost, if the underlying security is less than the conversion price; or if the underlying security is greater than the conversion price, at the market value of the underlying security multiplied by the number of shares to be received.

e) Mutual fund units held are priced using the NAV per unit as of the valuation date of the particular fund.

f) Futures contracts are valued at the settlement prices established on each day by the Board of Trade or exchange on which they are traded. The value of a contract is a gain or loss that would be realized upon closure. Gains or losses on open contracts are marked-to-market daily and are recorded in the statements of comprehensive income.

g) Foreign exchange forward contracts are valued at the gain or loss that would arise as a result of closing the position at the valuation date. Gains or losses are marked-to-market daily and recorded in the statements of comprehensive income.

Financial assets and liabilities The Funds’ assets and liabilities may be classified as either FVTPL or held for trading (“HFT”). a) Financial assets and financial liabilities designated as FVTPL

Financial assets and financial liabilities designated as FVTPL are managed and their performance is evaluated on a fair value basis in accordance with the Funds’ documented investment strategy. During 2017 and 2016, the Funds’ financial instruments were all designated as FVTPL.

b) Financial assets and financial liabilities held for trading

A financial asset or financial liability is classified as HFT if it is acquired or incurred principally for the purpose of selling or repurchasing in the near term, or if on initial recognition is part of a portfolio of identifiable financial investments that are managed together and for which there is evidence of a recent actual pattern of short term profit taking. In 2017 and 2016, the Funds did not hold securities categorized as HFT.

Investment transactions, income recognition and transaction cost Investment transactions are recorded on the trade date, which is the date on which the Fund commits to purchase or sell the investment. Net gain or loss on investments in the statements of comprehensive income includes the interest for distribution purposes that represents the coupon interest received by the Funds accounted for on an accrual basis. The Funds do not amortize premiums paid or discounts received on the purchase of fixed income securities, except for zero coupon bonds, which are amortized on a straight-line basis. Dividend income from financial assets as FVTPL is recognized when the Fund’s right to receive payments is established. Distributions from underlying funds are recorded on the distribution date. Realized gains and losses from investment transactions are calculated on an average cost basis. Unrealized gains and losses are determined using the difference between the fair value and average cost. Transaction costs are costs incurred to acquire financial assets or liabilities. They include fees and commissions paid to agents, advisers, brokers and dealers. Transaction costs are included in the cost of investments purchased or are a reduction in the proceeds received on the sale of an investment. These costs are immediately recognized in profit or loss as an expense in the statements of comprehensive income.

Receivable for investments sold / payable for investments purchased Receivable for investments sold and payable for investments purchased represent investment transactions that have been contracted for but not yet settled or delivered on the statements of financial position date respectively.

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These amounts are recognized initially at fair value and subsequently measured at amortized cost, less provision for impairment for amounts receivable for investments sold. A provision for impairment of amounts receivable for investments sold is established when there is objective evidence that the Fund will not be able to collect all amounts due from a specific broker. Significant financial difficulties of the broker, probability that the broker will enter bankruptcy or financial reorganization, and default in payments are considered indicators that the amount due from a specific broker is impaired. If such evidence exists, the Fund recognizes an impairment loss as the difference between the amortized cost of the financial asset and the present value of the estimated future cash flows, discounted using the instrument’s original effective interest rate. Impairment losses on financial assets at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held on call with banks and bank overdrafts. Bank overdrafts are shown in current liabilities in the statements of financial position.

Other assets and liabilities Dividends and interest receivable, receivable for investments sold and other receivables are categorized as loans and receivables and recorded at cost or amortized cost. Management fees payable, payable for investments purchased and other payable and accrued expenses are categorized as other liabilities and recorded at cost or amortized cost. Other assets and liabilities are short term in nature and cost or amortized cost approximates fair value.

Translation of foreign currencies

a) The fair value of investments and other assets and liabilities denominated in foreign currencies are translated into Canadian dollars at the prevailing rates on each valuation date.

b) Purchases and sales of investments, dividends and interest income denominated in foreign currencies are translated into Canadian dollars at the prevailing rates of exchange on the dates of the related transactions.

c) Foreign currency gains and losses resulting from translations are reported in the statements of comprehensive income. Foreign currency gains and losses relating to cash and cash equivalents are presented in the statements of comprehensive income within net foreign exchange gain or loss on cash and cash equivalents. Foreign currency gains and losses relating to financial assets and liabilities carried as FVTPL are presented in the statements of comprehensive income within net gain or loss on investments.

Contractholder transactions For each unit issued, the Funds receive an amount equal to the NAV per unit on the valuation date, which is included in NAAC. Units are redeemable at the option of the contractholder at their NAV per unit on the valuation date as determined in Note 7. For each unit redeemed, NAAC is reduced by the NAV of the unit on the redemption date.

Increase (decrease) in net assets from operations attributable to contractholders Income not distributed is included in NAAC. Movements in NAAC are recognized in the statements of changes in net assets attributable to contractholders.

Increase (decrease) in net assets from operations attributable to contractholders per daily average number of units in the statements of comprehensive income represents the increase (decrease) in NAAC, divided by the average daily number of units outstanding for each class of units.

Unit valuation NAV is calculated on every valuation date for each class of units. A valuation date is each day that the Manager is open for business and on which the Toronto Stock Exchange is open for trading. The NAV of a specific class of units is computed by calculating the value of the class’s proportionate share of the assets and liabilities of the respective fund attributable only to that class. Expenses directly attributable to a class are charged directly to that class. Other expenses, income, and realized and unrealized capital gains and losses are allocated proportionately to each class based on the relative NAV of each class. Withholding taxes The Funds may 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 separately in the statements of comprehensive income.

Income and expense allocation Where a Fund offers more than one class of units, realized gains (losses), changes in unrealized appreciation (depreciation) on investments, income and expenses that are common to the Fund as a whole are allocated daily to each class based on the proportionate share of the NAV of the class. The proportionate share of each class is determined by adding the current day’s net contractholder transactions of the class to the prior day’s NAV of the class. Any income or expense amounts that are unique to a particular class (for example, management fees) are accounted for separately in that particular class so as not to affect the NAV of the other classes.

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Critical accounting estimates and assumptions The preparation of financial statements in compliance with IFRS requires management to exercise its judgment in applying its accounting policies and to make estimates and assumptions about the future. The most significant accounting judgments and estimates that the Funds have made in preparing the financial statements related to the fair values of some financial instruments are as follows:

a) The Funds may, from time to time, hold financial instruments that are not quoted in active markets, such as over-the-counter derivatives. Fair values of such instruments are determined using valuation techniques and may be determined using reputable pricing sources (such as pricing agencies) or indicative prices from market makers. Broker quotes as obtained from the pricing sources may be indicative and not executable or binding. Where no market data is available, the Manager may value positions using its own models, which are usually based on valuation methods and techniques generally recognized as standard within the industry. The models used to determine fair values are validated and periodically reviewed by experienced personnel of the Manager, independent of the party that created them. The models used for private equity securities are based mainly on earnings multiples adjusted for lack of marketability and control premiums. The models used for debt securities are based on net present value of estimated future cash flows, adjusted as appropriate for liquidity, and credit and market risk factors.

b) Models use observable data, to the extent practicable. However, areas such as credit risk (both own and counterparty), volatilities and correlations require the Manager to make estimates. Changes in assumptions about these factors could affect the reported fair values of financial instruments.

c) The Manager considers observable data to be market data that is readily available, regularly distributed and updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. Refer to Note 16 for further information about the fair value measurement of the Funds’ financial instruments.

Critical judgments In classifying and measuring financial instruments held by the Funds, the Manager is required to make significant judgments about whether or not the business of the Funds is to invest on a total return basis for the purpose of applying the fair value option for the financial assets under IAS 39, Financial Instruments – Recognition and Measurement (“IAS 39”). The most significant judgment made includes the determination that the fair value option can be applied to financial instruments and there are no financial instruments designated as HFT.

4. Charges for investment management and operating expenses Each Fund class pays a management fee for the provision of fund management services. These services include investment advisory and portfolio management services, costs incurred to manage the Funds that are not directly related to a specific Fund such as overhead costs and, for some classes of the Funds, distribution-related expenses. The daily management fee applicable to each Fund class and payable to the Manager is calculated on each valuation date and is equal to the product of the NAV of each Fund class on such date and the number of days lapsed since the last valuation date, multiplied by the Manager’s effective daily management fee rate applicable to each Fund class.

In addition to the management fees payable, each Fund is accountable for its operating expenses, including applicable taxes. Operating expenses include audit fees, trustee and custodial expenses, accounting and record keeping costs, legal expenses, permitted prospectus preparation and filing expenses, bank-related fees and interest charges, contractholder report costs, fund-related administration costs, and other day-to-day operating expenses. The Manager may, at its discretion, pay certain expenses of a Fund and/or may reimburse a Fund for expenses that it has paid.

Several of the expenses incurred by a Fund relate to services provided by third-party, non-affiliated entities. Examples of such services include audit, trustee, custodial, accounting, and banking services. These services are incurred directly by each Fund.

As well, a number of expenses paid by a Fund relate to services provided by the Manager. Such services include mail service, call center services, contractholder record keeping services, financial reporting and financial control services, as well as the Manager’s indirect costs associated with the provision of these services. Indirect costs incurred by the Manager include costs associated with its premises, human resources and management oversight.

The costs of services provided by the Manager are allocated to each Fund proportionate to the time and effort required to support the Fund’s day- to- day operations. The asset under management is included in determining an appropriate allocation of costs.

The Manager, at its discretion, may waive or absorb a portion of the operating expenses otherwise payable by a Fund class. These waivers may be terminated at any time by the Manager.

For details of management fee expense ratio, refer to the unaudited financial information section.

5. Soft dollar brokerage commissions on securities transactions Soft dollar brokerage commissions represent the value of payment in-kind provided to securities dealers for their services. There was no soft dollar compensation paid to brokerage firms for the periods ended June 30, 2017 and 2016. 6. Brokerage commissions on securities transactions A broker is an individual or party (brokerage firm) that arranges transactions between a buyer and a seller for a commission, typically paid when the transaction is executed. Brokerage commissions paid for the periods ended June 30, 2017 and 2016 were as follows:

Fund 2017 2016 Asset Allocation Fund $12,834 $19,894

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Fund 2017 2016 Bond Fund 6 - Canadian Communications Fund - 4 Canadian Financial Services Fund 20 18 Canadian Resources Fund 9 - Canadian Growth Fund 30 - Canadian Small Cap 8 - Dividend Fund 1,409 2,954 Canadian-35 Index Fund 405 204 American Asset Allocation Fund 1 12 American Equity Index Fund - 8 Can-Am Fund 1 - Can-Asian Fund 1 - Can-Emerge Fund 25 13 European Equity Index Fund - 79 International Bond Index Fund 12 1 Information Technology Fund 1 1 International Brands Fund - 1 Equity Fund 17,845 26,668 7. Redemption of units Contractholders may, on any valuation date, redeem all or any part of their units at the then current NAV per unit as follows: a) Complete a redemption order along with all necessary supporting documentation (“redemption application”) and send the redemption

application to their dealer or broker who will forward it to the Manager.

b) Place a wire order through a dealer or broker (“redemption request”). The same documents as described above must be provided in order to complete the redemption process.

The NAV per unit is calculated on the same day if the redemption request or redemption application is received at or prior to 4:00 p.m. (ET). Payment for units redeemed will be made by the Funds within three business days from the date the redemption order is processed.

8. Short term investments used to cover margin on futures contracts A number of the Funds have short term investments that are held by an unrelated brokerage company as collateral to cover the initial margins on the futures contracts they hold.

The following chart summarizes, by Fund, the value of short term investments held as collateral as at June 30, 2017.

Fund Par Value (000’s)

Average Cost (000’s)

Fair Value (000’s)

Can-Am Fund $1,182 $1,180 $1,180 Can-Asian Fund 843 842 842 Can-Daq 100 Fund 413 412 412 Can-Euro Fund 854 853 853 Can-Global Bond Fund 30 30 30

The following chart summarizes, by Fund, the value of short term investments held as collateral as at December 31, 2016.

Fund Par Value (000’s)

Average Cost (000’s)

Fair Value (000’s)

Can-Am Fund $1,284 $1,282 $1,283 Can-Asian Fund 867 866 866 Can-Daq 100 Fund 427 426 427 Can-Euro Fund 906 905 905 Can-Global Bond Fund 30 30 30

9. Futures contracts Futures are contractual obligations to buy or sell financial instruments on a future date at specified prices established in an organized market. The futures contracts are collateralized by short term investments. The following is a list of the Funds with futures contracts as at June 30, 2017.

Fund Futures Contracts Expiry Number of Market Price Contract Notional Net Gain Long Positions Date Contracts Original Currency Value (Cdn$) (Loss) (Cdn$)

Can-Am Fund S&P 500 Future Sep-17 33 US$(75,901) 25,938,188 (98,572) Can-Asian Fund Nikkei 225 (SGX) Sep-17 58 ¥(2,167,518) 6,703,640 (25,052)

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Can-Asian Fund Hang Seng Index Future Jul-17 32 HK$(280,337) 6,810,195 (46,638) Can-Daq 100 Fund Nasdaq 100 Future Sep-17 65 US$(124,605) 9,543,594 (161,824) Can-Euro Fund Amsterdam Index Future Jul-17 8 €(23,280) 1,200,390 (34,483) Can-Euro Fund IBEX 35 Index Future Jul-17 4 €(13,064) 616,542 (19,351) Can-Euro Fund CAC 40 10 Euro Future Jul-17 16 €(18,680) 1,212,596 (27,669) Can-Euro Fund FTSE 100 Index Future Sep-17 35 £(71,125) 4,276,197 (119,984) Can-Euro Fund DAX Index Future Sep-17 4 €(36,200) 1,824,878 (53,621) Can-Euro Fund FTSE/MIB Index Future Sep-17 5 €(12,025) 759,094 (17,812) Can-Euro Fund Swiss Market Index Future Sep-17 10 CHF10,200 1,205,059 13,832 Can-Global Bond Fund Long Gilt Future Sep-17 1 £(1,850) 211,830 (3,121) Can-Global Bond Fund US 10 Year Note (CGT) Sep-17 4 US$(1,506) 652,110 (1,956) Can-Global Bond Fund 10 YR Mini JGB Future Sep-17 1 ¥(53,000) 173,636 (613) Can-Global Bond Fund Euro Bund Future Sep-17 2 €(5,320) 479,534 (7,880) Can-Global Bond Fund Australian 10 year Bond Future Sep-17 1 A$(1,746) 128,764 (1,739) Can-Global Bond Fund Canada 10 Year Bond Future Sep-17 1 CAD$(4,070) 140,550 (4,070) The following is a list of the Funds with futures contracts as at December 31, 2016.


Can-Am Fund S&P 500 Future Mar-17 33 US$(152,619) 24,740,562 (204,670) Can-Asian Fund Nikkei 225 (SGX) Mar-17 56 ¥21,324,285 6,139,472 245,186 Can-Asian Fund Hang Seng Index Future Jan-17 33 HK$300,200 6,267,893 51,925 Can-Daq 100 Fund Nasdaq 100 Future Mar-17 67 US$(39,308) 8,740,642 (52,715) Can-Euro Fund Amsterdam Index Future Jan-17 8 €20,480 1,093,330 28,968 Can-Euro Fund IBEX 35 Index Future Jan-17 5 €9,195 658,677 13,006 Can-Euro Fund CAC 40 10 Euro Future Jan-17 17 €18,870 1,169,358 26,691 Can-Euro Fund FTSE 100 Index Future Mar-17 35 £73,325 4,088,815 121,505 Can-Euro Fund DAX Index Future Mar-17 4 €29,000 1,621,692 41,020 Can-Euro Fund FTSE/MIB Index Future Mar-17 5 €23,000 679,123 32,533 Can-Euro Fund Swiss Market Index Future Mar-17 11 CHF26,730 1,186,249 35,270 Can-Global Bond Fund Long Gilt Future Mar-17 1 £2,020 208,509 3,347 Can-Global Bond Fund US 10 Year Note (CGT) Mar-17 4 US$(3,625) 666,670 (4,861) Can-Global Bond Fund 10 YR Mini JGB Future Mar-17 1 ¥14,000 172,792 161 Can-Global Bond Fund Euro Bund Future Mar-17 2 €4,480 464,371 6,337 Can-Global Bond Fund Australian 10 year Bond Future Mar-17 1 A$900 124,045 874 Can-Global Bond Fund Canada 10 Year Bond Future Mar-17 1 CAD$(1,340) 137,530 (1,340)

For the futures contracts that are currently held in the Funds, their respective exchanges are:

Futures Contracts Exchange Amsterdam Index Future Euronext Derivatives Amsterdam (EOE) Australian 10 year Bond Future ASX Trade24 (SFE) CAC 40 10 Euro Future Canada 10 Year Bond Future

Euronext Derivatives Paris (EOP) Montreal Exchange (MSE)

DAX Index Future Eurex (EUX) Euro-Bund Future Eurex (EUX) FTSE 100 Index Future FTSE/MIB Index Future

ICE Futures Europe Financials (ICF) Borsa Italiana (IDEM) (MIL)

Hang Seng Index Future Hong Kong Futures Exchange (HKG) IBEX 35 Index Future Meff Renta Variable (Madrid) (MFM) Long Gilt Future ICE Futures Europe Financials (ICF) Nasdaq 100 Future Chicago Mercantile Exchange (CME) Nikkei 225 (SGX) Singapore Exchange (SGX) 10 YR Mini JGB Future Singapore Exchange (SGX) S&P 500 Future Chicago Mercantile Exchange (CME) Swiss Market Index Future Eurex (EUX) US 10 Year Note (CGT) Chicago Board of Trade (CBT)

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10. Foreign exchange forward contracts Foreign exchange forward contracts are over-the-counter contracts in which one party contracts with another to exchange a specified amount of one currency for a specified amount of a second currency at a future date or range of dates. The following is a list of the Funds with foreign exchange forward contracts as at June 30, 2017.

Fund Expiry Date

Market Rate

Pay Currency

Pay Amount

Receive Currency

Receive Amount

Net Gain (Loss) (Cdn$)

Canadian Communications Fund Sep-17 0.7709 USD $96,000 CAD $126,326 $1,792 The following is a list of the Funds with forward currency contracts as at December 31, 2016.

Fund Expiry Date

Market Rate

Pay Currency

Pay Amount

Receive Currency

Receive Amount

Net Gain (Loss) (Cdn$)

Canadian Communications Fund Mar-17 0.7463 USD $96,000 CAD $127,363 $(1,277)

The counterparty on all forward contracts is rated A+.

11. Offsetting of financial assets and liabilities Financial assets and liabilities are presented gross in the Funds’ statements of financial position unless both of the following criteria are met:

a) The Fund has a legally enforceable right to set off the recognized amounts; and

b) The Fund intends to either settle on a net basis or realize the assets and settle the liability simultaneously.

If both of the criteria are met, the amounts are set off and presented net in the statements of financial position. The following table shows the gross amounts of foreign exchange forward contracts assets and liabilities before offsetting and the amounts that satisfy the above mentioned criteria to offset under IFRS. Amounts which cannot be offset under IFRS, but which could be settled net under the terms of master netting agreements and collateral received or pledged, are also shown in the table to show the total net exposure of the Funds. The following chart presents, by Fund, the effect or potential effects of netting arrangements on foreign exchange forward contracts held as at June 30, 2017. Amounts Offset Amounts not Offset

Gross Amounts of Recognized

Financial Assets (000’s)


Financial Liabilities Offset (000’s)

Net Amounts Presented in

Statements of Financial Position

(000’s)

Master Netting

Arrangements (000’s)

Cash Collateral (Received) / Pledged (000’s)

Net Amounts (000’s)


Counterparty A $2 $- $2 $- $- $2

2 - 2 - - 2 The following chart presents, by Fund, the effect or potential effects of netting arrangements on foreign exchange forward contracts held as at December 31, 2016. Amounts Offset Amounts not Offset


Financial Assets (000’s)


Financial Liabilities Offset (000’s)

Net Amounts Presented in

Statements of Financial Position

(000’s)

Master Netting

Arrangements (000’s)

Cash Collateral (Received) / Pledged (000’s)

Net Amounts (000’s)


Counterparty A $- $(1) $(1) $- $- $(1)

- (1) (1) - - (1)

12. Redeemable units The Funds issue single or multiple classes of redeemable units, which do not have identical rights. Such units are classified as financial liabilities. Each Fund is authorized to issue an unlimited number of units, which do not have any nominal or par value. Units can be redeemed to the Funds at any business date for cash equal to a proportionate unit of the Funds’ NAV attributable to the unit class.

The units are entitled to participate in the notional distribution of the Fund, if any. If the contractholder redeems units, they are entitled to a proportionate share of NAV, represented by the Fund’s NAV per unit. The relevant movements are shown in the statements of changes in net

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assets attributable to contractholders. The Funds’ NAAC are managed according to the investment objectives of the Funds. To ensure the liquidity of the Fund, fund activity may involve the disposal of investments.

Units are issued and redeemed based on the Funds’ NAVs per unit at the time of issue or redemption. The Fund’s NAV per unit is calculated for each class by dividing the Fund’s total NAV with the total number of outstanding redeemable units for each class.

The following chart summarizes, by Fund, redeemable unit transactions for the six month period ended June 30, 2017.

Fund Class Units outstanding, beginning of period

Units issued, including transfers-in and

reinvested distributions

Units redeemed, including transfers-out

Units outstanding, end of period

Asset Allocation VIO 441,798 25,002 (31,374) 435,426 Fund VIO2 571,901 35,600 (61,941) 545,560

VIO3 283,380 19,922 (24,298) 279,004 Bond Fund VIO 10,265 434 (996) 9,703 Canadian VIO 9,809 628 (658) 9,779 Communications Fund Canadian Financial VIO 11,941 1,224 (581) 12,584 Services Fund Canadian Resources VIO 6,842 408 (496) 6,754 Fund Canadian Growth VIO 39,566 2,425 (8,510) 33,481 Fund Canadian Small Cap VIO 3,029 130 (250) 2,909 Fund Dividend Fund VIO 168,118 11,080 (14,004) 165,194

VIO2 41,275 2,413 (1,743) 41,945 VIO3 80,740 5,377 (8,518) 77,599

T-Bill Fund VIO 55,583 11,784 (10,416) 56,951 Canadian-35 Index VIO 98,937 4,242 (5,146) 98,033 Fund VIO2 146,593 8,275 (9,307) 145,561

VIO3 36,035 1,699 (2,399) 35,335 VIO4 50,873 1,914 (1,760) 51,027

Can-Am Fund VIO 1,514,132 84,331 (98,938) 1,499,525 VIO2 390,351 20,951 (23,998) 387,304 VIO3 440,835 20,559 (25,625) 435,769 VIO4 48,045 2,190 (2,616) 47,619 Can-Asian Fund VIO 1,421,088 86,059 (98,286) 1,408,861

VIO2 295,053 16,387 (20,814) 290,626 VIO3 41,691 966 (1,671) 40,986 VIO4 16,229 998 (749) 16,478

Can-Daq 100 Fund VIO 809,206 25,829 (46,994) 788,041 VIO2 60,748 1,425 (1,895) 60,278 VIO3 45,315 1,860 (4,032) 43,143

Can-Euro Fund VIO 524,351 21,491 (28,587) 517,255 VIO2 408,566 18,086 (24,494) 402,158 VIO3 21,031 2,602 (3,129) 20,504

Can-Global Bond VIO 50,038 2,334 (3,016) 49,356 Fund VIO2 22,334 1,293 (937) 22,690

VIO3 19,126 507 (395) 19,238 American Asset VIO 6,619 226 (614) 6,231 Allocation Fund American Equity VIO 8,116 1,021 (941) 8,196 Index Fund

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Fund Class Units outstanding, beginning of period




Units outstanding, end of period

Can-Emerge Fund VIO 176,650 6,648 (8,613) 174,685 VIO2 6,411 156 (65) 6,502

European Equity VIO 7,863 467 (350) 7,980 Index Fund International Bond VIO 14,766 103 (3,535) 11,334 Index Fund Information Technology VIO 33,233 1,770 (2,098) 32,905 Fund International Brands VIO 2,808 81 (66) 2,823 Fund Equity Fund VIO 827,396 75,515 (94,913) 807,998

VIO2 113,590 7,873 (9,797) 111,666 Mid-Term Bond VIO 140,128 7,817 (12,317) 135,628 Fund VIO2 101,242 4,532 (9,180) 96,594

VIO3 27,348 1,301 (5,854) 22,795

The following chart summarizes, by Fund, redeemable unit transactions for the year ended December 31, 2016.

Fund Class Units outstanding, beginning of year




Units outstanding, end of year

Asset Allocation VIO 458,828 52,196 (69,226) 441,798 Fund VIO2 592,431 79,545 (100,075) 571,901 VIO3 292,166 43,156 (51,942) 283,380 Bond Fund VIO 10,221 1,113 (1,069) 10,265 Canadian VIO 9,671 1,248 (1,110) 9,809 Communications Fund Canadian Financial VIO 12,227 1,986 (2,272) 11,941 Services Fund Canadian Resources VIO 7,225 834 (1,217) 6,842 Fund Canadian Growth VIO 38,496 5,922 (4,852) 39,566 Fund Canadian Small Cap VIO 3,062 287 (320) 3,029 Fund Dividend Fund VIO 178,730 19,311 (29,923) 168,118 VIO2 43,117 3,553 (5,395) 41,275 VIO3 86,338 10,120 (15,718) 80,740 T-Bill Fund VIO 53,751 21,897 (20,065) 55,583 Canadian-35 Index VIO 100,882 9,916 (11,861) 98,937 Fund VIO2 153,455 17,367 (24,229) 146,593 VIO3 36,744 4,089 (4,798) 36,035 VIO4 51,940 5,295 (6,362) 50,873 Can-Am Fund VIO 1,586,716 187,960 (260,544) 1,514,132 VIO2 409,149 48,110 (66,908) 390,351 VIO3 465,168 47,057 (71,390) 440,835 VIO4 46,360 4,255 (2,570) 48,045 Can-Asian Fund VIO 1,469,645 189,849 (238,406) 1,421,088 VIO2 311,530 36,818 (53,295) 295,053 VIO3 41,631 2,278 (2,218) 41,691

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Fund Class Units outstanding, beginning of year




Units outstanding, end of year

VIO4 16,630 2,490 (2,891) 16,229 Can-Daq 100 Fund VIO 854,646 62,843 (108,283) 809,206 VIO2 61,290 3,131 (3,673) 60,748 VIO3 44,340 4,117 (3,142) 45,315 Can-Euro Fund VIO 545,516 48,660 (69,825) 524,351 VIO2 423,550 43,751 (58,735) 408,566 VIO3 20,603 2,395 (1,967) 21,031 Can-Global Bond VIO 50,071 8,317 (8,350) 50,038 Fund VIO2 22,676 2,571 (2,913) 22,334 VIO3 18,294 1,234 (402) 19,126 American Asset VIO 7,247 763 (1,391) 6,619 Allocation Fund American Equity VIO 12,081 2,268 (6,233) 8,116 Index Fund Can-Emerge Fund VIO 189,904 14,433 (27,687) 176,650 VIO2 6,884 275 (748) 6,411 European Equity VIO 7,639 928 (704) 7,863 Index Fund International Bond VIO 14,882 357 (473) 14,766 Index Fund Information Technology VIO 32,977 4,399 (4,143) 33,233 Fund International Brands VIO 2,447 504 (143) 2,808 Fund Equity Fund VIO 870,083 162,650 (205,337) 827,396 VIO2 114,007 17,938 (18,355) 113,590 Mid-Term Bond VIO 145,693 16,007 (21,572) 140,128 Fund VIO2 109,825 9,141 (17,724) 101,242 VIO3 27,939 2,497 (3,088) 27,348

13. NAAC per unit and NAV per unit The following table provides a comparison of NAAC per unit and NAV per unit as at June 30, 2017 and December 31, 2016. Note 3 includes a description of the underlying differences.

Fund Class

NAAC Per Unit NAV Per Unit 2017 2016 2017 2016

Asset Allocation Fund VIO $19.65 $19.71 $19.67 $19.73 VIO2 18.69 18.81 18.71 18.83 VIO3 19.05 19.16 19.06 19.17 Bond Fund VIO 15.96 15.86 15.96 15.86 Canadian Communications Fund VIO 11.94 13.04 11.94 13.06 Canadian Financial Services Fund VIO 27.04 26.92 27.09 26.92 Canadian Resources Fund VIO 13.26 15.69 13.30 15.71 Canadian Growth Fund VIO 4.10 4.16 4.10 4.16 Canadian Small Cap Fund VIO 21.96 23.26 21.95 23.32 Dividend Fund VIO 18.38 18.35 18.40 18.36 VIO2 19.83 19.67 19.84 19.68 VIO3 17.84 17.84 17.85 17.85 T-Bill Fund VIO 1.00 1.01 1.00 1.01 Canadian-35 Index Fund VIO 36.26 36.67 36.26 36.67 VIO2 34.61 35.08 34.61 35.08 VIO3 35.08 35.56 35.08 35.56 VIO4 37.86 38.14 37.86 38.14 Can-Am Fund VIO 11.06 10.37 11.07 10.37

120


Fund Class

NAAC Per Unit NAV Per Unit 2017 2016 2017 2016

VIO2 11.16 10.46 11.16 10.46 VIO3 11.44 10.69 11.44 10.69 VIO4 10.62 9.99 10.62 9.99 Can-Asian Fund VIO 7.71 7.00 7.71 7.00 VIO2 7.66 6.96 7.66 6.96 VIO3 7.88 7.14 7.88 7.14 VIO4 7.29 6.65 7.29 6.65 Can-Daq 100 Fund VIO 10.85 9.52 10.86 9.52 VIO2 11.24 9.83 11.24 9.83 VIO3 10.42 9.17 10.43 9.17 Can-Euro Fund VIO 11.71 11.03 11.71 11.03 VIO2 11.27 10.66 11.28 10.66 VIO3 10.84 10.28 10.85 10.28 Can-Global Bond Fund VIO 15.88 15.96 15.88 15.96 VIO2 16.10 16.17 16.10 16.17 VIO3 16.56 16.58 16.57 16.58 American Asset Allocation Fund VIO 18.07 17.47 18.09 17.49 American Equity Index Fund VIO 15.53 15.02 15.54 15.03 Can-Emerge Fund VIO 8.02 7.08 8.02 7.09 VIO2 8.37 7.35 8.36 7.36 European Equity Index Fund VIO 6.85 6.20 6.86 6.20 International Bond Index Fund VIO 9.27 9.18 9.28 9.18 Information Technology Fund VIO 6.54 6.06 6.54 6.07 International Brands Fund VIO 10.49 10.14 10.49 10.15 Equity Fund VIO 18.68 19.08 18.69 19.09 VIO2 19.69 20.04 19.70 20.05 Mid-Term Bond Fund VIO 45.34 44.67 45.40 44.73 VIO2 43.20 42.70 43.26 42.75 VIO3 47.05 46.21 47.11 46.27

14. Related parties The following table shows the summary of portfolio management and sub- advisory fees paid to a related party for the periods ended June 30, 2017 and 2016 and the balances outstanding as at June 30, 2017 and December 31, 2016, by Fund, that are included in accrued expenses and other liabilities in the statements of financial position.

FAM1 Management and Advisory Fees

Fund Management and Advisory Fees Balances Outstanding

2017 2016 2017 2016 Asset Allocation Fund $24,802 $24,320 $266 $274 Bond Fund 118 124 1 1 Canadian Communications Fund 183 170 2 2 Canadian Financial Services Fund 498 409 6 5 Canadian Resources Fund 152 138 2 2 Canadian Growth Fund 216 212 2 3 Canadian Small Cap Fund 102 87 1 1 Dividend Fund 8,093 7,587 87 88 T-Bill Fund 14 14 - - Canadian-35 Index Fund 6,054 5,316 65 66 Can-Am Fund 12,987 11,773 145 137 Can-Asian Fund 6,489 5,700 75 68 Can-Daq 100 Fund 4,738 4,126 54 48 Can-Euro Fund 5,371 4,710 60 57 Can-Global Bond Fund 738 774 8 8 American Asset Allocation Fund 175 165 2 2 American Equity Index Fund 64 84 1 1 Can-Emerge Fund 716 636 8 7 European Equity Index Fund 26 24 - -

121


Fund Management and Advisory Fees Balances Outstanding

2017 2016 2017 2016 International Bond Index Fund 57 73 1 1 Information Technology Fund 327 261 4 3 International Brands Fund 45 35 1 - Equity Fund 26,888 25,228 287 299 Mid-Term Bond Fund 8,832 9,434 94 97 1 FAM was a related party prior to May 4, 2016.

15. Financial risk management Each Fund’s activities expose it to a variety of financial risks: market risk (including price risk, interest rate risk and currency risk), credit risk, liquidity risk and concentration risk.

The management of these risks is carried out by the Manager under policies approved by the Fund Management Review Committee. These policies provide written principles for overall risk management, as well as policies covering specific areas, such as foreign currency risk, interest rate risk, credit risk, the use of derivative financial instruments and non-derivative financial instruments, and the investment of excess liquidity.

The overall risk management program seeks to maximize the returns derived for the level of risk to which the Funds are exposed and minimize potential adverse effects from the unpredictability of financial markets on the Funds’ financial performance and allows the use of derivative financial instruments to both moderate and create certain risk exposures.

All securities investments represent a risk of loss of capital. The maximum loss of capital on long equity and debt securities is limited to the fair value of those positions. On long futures and forward currency contracts, the maximum loss of capital is limited to the notional contract value of those positions. The maximum loss of capital on short futures positions can be unlimited.

The value of the investments may change due to one or more of the following investment risks:

Price risk Price risk arises from investments held by the Funds for which prices in the future are uncertain. The Funds invest in equity securities (also called stocks or shares) that expose the Funds to equity securities price risk. The market value, or price, of a stock is affected by developments at the investee company and by general economic and financial conditions in that company’s industry and in the countries in which the investee company operates or is listed for trading on stock exchanges. General investor sentiment, as well as specific circumstances and events, may also impact the value of a stock.

The portfolio manager manages this risk through diversification and by a careful selection of securities and other financial instruments within specified limits. The maximum risk resulting from investments in financial instruments is the fair value of the securities and other financial instruments acquired by the Funds. The Funds’ overall market positions are monitored daily by the Funds’ portfolio manager or sub-advisor if applicable.

The Funds’ returns are not perfectly correlated with the return of their benchmark, therefore, the percentage change in the value of the Funds will differ from that of their benchmarks.

As at June 30, 2017, had the benchmark of each of the following Funds increased or decreased by 3 percent, with all other variables held constant, the NAAC of those Funds would have increased or decreased by approximately the amounts shown in the table below.

Fund Equity Exposure

(000’s) Benchmark Impact on

NAAC (000’s)

Impact on NAAC

(%) Asset Allocation Fund $12,665 50% FTSE TMX Canada Universe Bond Index

50% S&P/TSX Composite Total Return Index $385 1.60

Bond Fund 152 FTSE TMX Canada Universe Bond Index 5 2.90

Canadian Communications Fund 110 MSCI US Investable Market Index (IMI)/Telecommunication Services 25/50

4 3.11

Canadian Financial Services Fund 331 S&P/TSX Capped Financials Total Return Index 10 2.79 Canadian Resources Fund 87 65% S&P/TSX Capped Energy Index

35% S&P/TSX Capped Materials Index 3 2.82

Canadian Growth Fund 135 S&P/TSX Composite Total Return Index 4 2.76 Canadian Small Cap Fund 62 S&P/TSX Small Cap Price Return Index 2 2.72 Dividend Fund 4,084 S&P/TSX 60 Total Return Index 85 1.61 Canadian-35 Index Fund 11,695 S&P/TSX 60 Price Return Index 345 2.93 American Asset Allocation Fund 112 S&P 500 Composite Total Return Index 2 2.14 American Equity Index Fund 124 S&P 500 Composite Total Return Index 3 2.45 Can-Emerge Fund 1,442 MSCI Emerging Markets Index 39 2.71 European Equity Index Fund 52 MSCI Europe 2 2.79 International Bond Index Fund 102 S&P/Citi International Treasury Bond Total

Return Index 3 2.81

122




NAAC (000’s)

Impact on NAAC

(%) Information Technology Fund 212 Nasdaq Index 6 2.69 International Brands Fund 29 S&P 500 Composite Total Return Index 1 2.79 Equity Fund 17,066 S&P/TSX Composite Total Return Index 460 2.66

Certain Funds that invest in underlying mutual funds are exposed to indirect equity price risk in the event that the underlying mutual funds invest in equity securities.

As at December 31, 2016, had the benchmark of each of the following Funds increased or decreased by 3 percent, with all other variables held constant, the NAAC of those Funds would have increased or decreased by approximately the amounts shown in the table below.



NAAC (000’s)

Impact on NAAC

(%) Asset Allocation Fund $13,226 50% FTSE TMX Canada Universe Bond Index

50% S&P/TSX Composite Total Return Index $394 1.58

Bond Fund 157 FTSE TMX Canada Universe Bond Index 5 2.77

Canadian Communications Fund 127 MSCI US Investable Market Index (IMI)/Telecommunication Services 25/50

4 3.23

Canadian Financial Services Fund 320 S&P/TSX Capped Financials Total Return Index 9 2.86 Canadian Resources Fund 106 65% S&P/TSX Capped Energy Index

35% S&P/TSX Capped Materials Index 3 2.87

Canadian Growth Fund 158 S&P/TSX Composite Total Return Index 4 2.67 Canadian Small Cap Fund 70 S&P/TSX Small Cap Price Return Index 2 2.75 Dividend Fund 4,221 S&P/TSX 60 Total Return Index 88 1.64 Canadian-35 Index Fund 11,929 S&P/TSX 60 Price Return Index 352 2.93 American Asset Allocation Fund 114 S&P 500 Composite Total Return Index 2 1.90 American Equity Index Fund 121 S&P 500 Composite Total Return Index 3 2.42 Can-Emerge Fund 1,285 MSCI Emerging Markets Index 35 2.72 European Equity Index Fund 47 MSCI Europe 1 2.77 International Bond Index Fund 132 S&P/Citi International Treasury Bond Total

Return Index 4 2.78

Information Technology Fund 195 Nasdaq Index 5 2.50 International Brands Fund 28 S&P 500 Composite Total Return Index 1 2.73 Equity Fund 17,491 S&P/TSX Composite Total Return Index 461 2.55

Interest rate risk Interest rate risk arises from the effects of fluctuations in the prevailing levels of market interest rates on the fair value of financial assets and liabilities and future cash flows. The Funds hold fixed income securities that expose the Funds to interest rate risk. An increase in prevailing interest rates will generally cause the value of fixed income securities to decline, while a decrease in such rates will generally cause the value of such securities to increase. Accordingly, the portion of a Fund that is invested in fixed income securities will reflect this inverse relationship between interest rates and the price of securities. In addition, the longer the time to maturity of a particular debt instrument held by a Fund, the greater price volatility it will have.

The portfolio manager manages this risk by measuring the mismatch of the interest rate sensitivity gap of financial assets and liabilities and calculating the average effective duration of the portfolio of fixed income securities. The average effective duration of each Fund’s portfolio is a measure of the sensitivity of the fair value of the Fund’s fixed income securities to changes in market interest rates.

The impact is calculated using the expected maturity date. The term to maturity is based on the contractual maturity date.

As at June 30, 2017, had market interest rates increased or decreased by 1 percent, with all other variables held constant, the NAAC of the following Funds would have decreased or increased by approximately the amounts shown in the table below.

Term to Maturity Total Impact on NAAC Fund Less than 1 year 1 – 5 years Greater than 5 years

(000’s) (000’s) (000’s) (000’s) (000’s) (%) Asset Allocation Fund $624 $3,855 $6,904 $11,383 $825 7.25 Dividend Fund 100 371 684 1,155 81 6.99 T-Bill Fund 57 - - 57 - 0.25 Canadian-35 Index Fund 50 - - 50 - 0.15 Can-Am Fund 26,388 - - 26,388 65 0.25 Can-Asian Fund 13,654 - - 13,654 32 0.24 Can-Daq 100 Fund 9,676 - - 9,676 25 0.26 Can-Euro Fund 10,881 - - 10,881 27 0.25 Can-Global Bond Fund 1,458 - - 1,458 3 0.21

123



(000’s) (000’s) (000’s) (000’s) (000’s) (%) Equity Fund 175 - - 175 - 0.14 Mid-Term Bond Fund 170 4,404 6,717 11,291 847 7.50

Certain Funds that invest in underlying mutual funds are exposed to indirect interest rate risk in the event that the underlying mutual funds invest in fixed income securities.

As at December 31, 2016, had market interest rates increased or decreased by 1 percent, with all other variables held constant, the NAAC of the following Funds would have decreased or increased by approximately the amounts shown in the table below.


(000’s) (000’s) (000’s) (000’s) (000’s) (%) Asset Allocation Fund $810 $3,524 $7,216 $11,550 $842 7.29 Dividend Fund 30 348 723 1,101 80 7.26 T-Bill Fund 56 - - 56 - 0.24 Canadian-35 Index Fund 72 - - 72 - 0.09 Can-Am Fund 25,089 - - 25,089 70 0.28 Can-Asian Fund 12,348 - - 12,348 33 0.27 Can-Daq 100 Fund 8,825 - - 8,825 24 0.28 Can-Euro Fund 10,346 - - 10,346 30 0.29 Can-Global Bond Fund 1,473 - - 1,473 4 0.26 Equity Fund 549 - - 549 1 0.21 Mid-Term Bond Fund 25 4,772 7,029 11,826 873 7.38

Foreign currency risk Foreign currency risk arises as the value of future transactions, recognized monetary assets and liabilities denominated in currencies other than the Canadian dollar fluctuate due to changes in foreign exchange rates.

The Funds hold both monetary and non-monetary assets denominated in currencies other than the Canadian dollar and the related foreign currency exposure amounts are based on the fair value of the investments, cash balances, dividends and interest receivable, receivables for investments sold and payable for investments purchased that are denominated in foreign currencies. The Manager monitors the exposure on all foreign currency denominated assets and liabilities.

The value of these foreign currency holdings may be affected by changes in the value of the Canadian dollar compared to the value of these foreign currencies. For example, if the U.S. dollar rises relative to the Canadian dollar, the value of U.S. securities held in a Fund will be worth more in Canadian dollars. The inverse is also true – if the U.S. dollar falls, a Fund’s U.S. holdings will be worth less in Canadian dollars.

As at June 30, 2017, had exchange rates increased or decreased by 10 percent, with all other variables held constant, the NAAC of the following Funds would have increased or decreased by approximately the amounts shown in the table below.

Fund Foreign Currency Exposure (000’s)

Impact on NAAC (000’s)

Impact on NAAC (%)

Asset Allocation Fund $742 $74 0.31 Canadian Communications Fund 111 11 9.50 Dividend Fund 225 23 0.43 American Asset Allocation Fund 113 11 9.97 American Equity Index Fund 127 13 9.99 Can-Emerge Fund 1,442 144 9.90 European Equity Index Fund 52 5 9.54 International Bond Index Fund 103 10 9.78 Information Technology Fund 212 21 9.85 International Brands Fund 29 3 9.78 Equity Fund 1,003 100 0.58

Certain Funds that invest in underlying mutual funds are exposed to indirect foreign currency risk in the event that the underlying mutual funds’ investments are denominated in currencies other than their functional currency.

As at December 31, 2016, had exchange rates increased or decreased by 10 percent, with all other variables held constant, the NAAC of the following Funds would have increased or decreased by approximately the amounts shown in the table below.



Impact on NAAC (%)

Asset Allocation Fund $641 $64 0.26 Canadian Communications Fund 127 13 9.85 Dividend Fund 362 36 0.68 American Asset Allocation Fund 117 12 10.08

124




Impact on NAAC (%)

American Equity Index Fund 122 12 9.92 Can-Emerge Fund 1,285 129 9.84 European Equity Index Fund 47 5 9.59 International Bond Index Fund 136 14 9.98 Information Technology Fund 195 19 9.62 International Brands Fund 28 3 9.62 Equity Fund 825 83 0.46

Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

The main concentration to which the Funds are exposed arises from the Funds’ investment in fixed income securities. A fixed income security issued by a company or a government contains a promise by the issuer to pay interest and repay a specified amount on the maturity date. Credit risk involves the risk that such a company will not live up to its obligations. If the credit quality of the issuer begins to deteriorate, it will lower the market value of the security, and vice versa. The risk is lower among companies that have received good credit ratings from recognized credit rating agencies. The risk is greater among companies that have a low credit rating or none at all.

To manage this risk, the Funds invest in fixed income securities that have a minimum credit rating of BBB/Baa as designated by a well-known rating agency in keeping with the credit standards set out in the prospectus.

The Funds are also exposed to counterparty credit risk on derivative products, cash and cash equivalents, receivable for investments sold and other receivable balances. The risk is managed by using reputable scheduled banks and brokers.

The Funds enter into two types of derivative transactions: futures contracts and foreign exchange forward contracts. The counterparty credit risk for futures contracts is mitigated by margin requirements and minimal because a clearing house guarantees against default risk by taking both sides of the trade and marking to market their positions every night. Mark to market is the process of converting daily gains and losses into actual cash gains and losses. As one party loses on the trade the other party gains, and the clearing house moves the payments for the counterparty through this process. The counterparty credit risk for foreign exchange forward contracts is managed by using counterparties with minimum credit ratings from S&P of A within predetermined limits. The minimum credit rating of the counterparty to the Funds’ foreign exchange forward contracts was A+ as at June 30, 2017 (December 31, 2016 – A+).

As at June 30, 2017, the following table outlines the amount and percentage of fixed income securities by credit rating held by each Fund.

Fund AAA (000’s) % AA

(000’s) % A (000’s) % BBB

(000’s) % <BBB or Unrated (000’s)

% Total (000’s)

Total %

Asset Allocation Fund $3,561 31 $1,457 13 $2,776 24 $3,589 32 $- - $11,383 100 Dividend Fund 416 36 126 11 263 23 350 30 - - 1,155 100 T-Bill Fund 57 100 - - - - - - - - 57 100 Canadian-35 Index Fund 50 100 - - - - - - - - 50 100 Can-Am Fund 26,388 100 - - - - - - - - 26,388 100 Can-Asian Fund 13,654 100 - - - - - - - - 13,654 100 Can-Daq 100 Fund 9,676 100 - - - - - - - - 9,676 100 Can-Euro Fund 10,881 100 - - - - - - - - 10,881 100 Can-Global Bond Fund 1,458 100 - - - - - - - - 1,458 100 Equity Fund 175 100 - - - - - - - - 175 100 Mid-Term Bond Fund 2,160 19 4,320 38 4,811 43 - - - - 11,291 100

Certain Funds that invest in underlying mutual funds are exposed to indirect credit risk in the event that the underlying mutual funds invest in debt securities and trading derivatives.

As at December 31, 2016, the following table outlines the amount and percentage of fixed income securities by credit rating held by each Fund.


(000’s) % A (000’s) % BBB


% Total (000’s)

Total %

Asset Allocation Fund $3,707 32 $1,440 13 $2,355 20 $4,048 35 $- - $11,550 100 Dividend Fund 436 37 101 8 236 20 415 35 - - 1,188 100 T-Bill Fund 56 100 - - - - - - - - 56 100 Canadian-35 Index Fund 72 100 - - - - - - - - 72 100 Can-Am Fund 25,089 100 - - - - - - - - 25,089 100 Can-Asian Fund 12,348 100 - - - - - - - - 12,348 100 Can-Daq 100 Fund 8,825 100 - - - - - - - - 8,825 100 Can-Euro Fund 10,346 100 - - - - - - - - 10,346 100 Can-Global Bond Fund 1,473 100 - - - - - - - - 1,473 100 Equity Fund 549 100 - - - - - - - - 549 100

125



(000’s) % A (000’s) % BBB


% Total (000’s)

Total %

Mid-Term Bond Fund 2,259 19 4,504 38 5,063 43 - - - - 11,826 100 Liquidity risk Liquidity risk is the risk that the Funds may not be able to generate sufficient cash resources to settle their obligations in full as they fall due or can only do so on terms that are materially disadvantageous.

The Funds are exposed to the daily settlement of margin calls on futures contracts and the daily cash redemptions of their redeemable units. Units are redeemable on demand at the then current NAV per class unit.

The Funds’ listed securities are considered readily realizable, as the majority are listed on the Toronto Stock Exchange. The Funds may invest in derivative contracts and fixed income securities that are traded over the counter and unlisted equity investments that are not traded in an active market. As a result, the Funds may be unable to quickly liquidate their investments in these instruments at an amount close to their fair value to meet their liquidity requirements, or may be unable to respond to specific events such as deterioration in the creditworthiness of any particular issuer.

The Funds’ policy to manage this risk is to invest the majority of their assets in investments that are traded in active markets and can be readily disposed of. In addition, each Fund retains sufficient cash and cash equivalents to maintain liquidity. The Manager monitors the Funds’ liquidity position on a daily basis.

Certain Funds that invest in underlying mutual funds are exposed to indirect liquidity risk in the event that the underlying mutual funds invest in securities that cannot be readily converted to cash as needed.

The contractual maturity of the Funds’ financial liabilities is less than three months. Concentration risk Concentration risk arises from financial instruments that have similar characteristics and are affected similarly by changes in economic or other conditions. A summary of concentration of risks is disclosed in each Fund’s schedule of investment portfolio. Capital risk management Redeemable units issued and outstanding are considered to be the capital of the Funds. The Funds do not have any specific capital requirements on the subscription and redemption of the units, other than certain minimum subscription requirements. Contractholders are entitled to require payment of the NAV per unit of that Fund for all or any of the units of such contractholders by giving written notice to the Manager.

16. Fair value disclosure The following describes the three levels of the fair value hierarchy for fair value measurements based on the transparency of inputs to the valuation for assets or liabilities as of the measurement date. The hierarchy provides the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are as follows:

Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Manager has the ability to access at the measurement date.

Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly as prices

or indirectly derived from prices. Level 3 Inputs that are unobservable. There is little if any market activity. Inputs into the determination of fair value require

significant management judgment or estimation. If inputs of different levels 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. Where there is a significant impact to the fair value estimate of Level 3 financial instruments in applying reasonable possible alternative assumptions, a range in fair value will be disclosed in the financial statements. Fair value hierarchy

The following fair value hierarchy table presents information about the Funds’ assets measured at fair value as of June 30, 2017.

Fund Level 1 (000’s)

Level 2 (000’s)

Level 3 (000’s)

Total (000’s)

Asset Allocation Fund Bonds $- $9,825 $- $9,825 Equities 12,665 - - 12,665 Mortgage Backed Securities - 933 - 933 Short Term Notes - 624 - 624

126



Level 2 (000’s)

Level 3 (000’s)

Total (000’s)

Total Investments 12,665 11,382 - 24,047 Total Percentage 53% 47% - 100%

Bond Fund Exchange-Traded Funds 152 - - 152 Total Investments 152 - - 152 Total Percentage 100% - - 100%

Canadian Communications Fund Exchange-Traded Funds 110 - - 110 Derivative Assets (Liabilities) - 2 - 2 Total Investments 110 2 - 112 Total Percentage 98% 2% - 100%

Canadian Financial Services Fund Exchange-Traded Funds 331 - - 331 Total Investments 331 - - 331 Total Percentage 100% - - 100%

Canadian Resources Fund Exchange-Traded Funds 87 - - 87 Total Investments 87 - - 87 Total Percentage 100% - - 100%

Canadian Growth Fund Exchange-Traded Funds 135 - - 135 Total Investments 135 - - 135 Total Percentage 100% - - 100% Canadian Small Cap Fund Exchange-Traded Funds 62 - - 62 Total Investments 62 - - 62 Total Percentage 100% - - 100% Dividend Fund Bonds - 1,000 - 1,000 Equities 4,084 - - 4,084 Mortgage Backed Securities - 55 - 55 Short Term Notes - 100 - 100 Total Investments 4,084 1,155 - 5,239 Total Percentage 78% 22% - 100%

T-Bill Fund Short Term Notes - 57 - 57 Total Investments - 57 - 57 Total Percentage - 100% - 100%

Canadian-35 Index Fund Exchange-Traded Funds 11,695 - - 11,695 Short Term Notes - 50 - 50 Total Investments 11,695 50 - 11,745 Total Percentage 100% - - 100%

Can-Am Fund Short Term Notes - 26,388 - 26,388 Derivative Assets (Liabilities) 9 - - 9 Total Investments 9 26,388 - 26,397

Total Percentage - 100% - 100%

Can-Asian Fund Short Term Notes - 13,654 - 13,654 Derivative Assets (Liabilities) (133) - - (133) Total Investments (133) 13,654 - 13,521 Total Percentage (1%) 101% - 100% Can-Daq 100 Fund

127



Level 2 (000’s)

Level 3 (000’s)

Total (000’s)

Short Term Notes - 9,676 - 9,676 Derivative Assets (Liabilities) (1) - - (1) Total Investments (1) 9,676 - 9,675


Can-Euro Fund Short Term Notes - 10,881 - 10,881 Derivative Assets (Liabilities) (70) - - (70) Total Investments (70) 10,881 - 10,811 Total Percentage (1%) 101% - 100%

Can-Global Bond Fund Short Term Notes - 1,458 - 1,458 Derivative Assets (Liabilities) (5) - - (5) Total Investments (5) 1,458 - 1,453 Total Percentage - 100% - 100% American Asset Allocation Fund Exchange-Traded Funds 112 - - 112 Total Investments 112 - - 112 Total Percentage 100% - - 100%

American Equity Index Fund Exchange-Traded Funds 124 - - 124 Total Investments 124 - - 124 Total Percentage 100% - - 100%

Can-Emerge Fund Exchange-Traded Funds 1,442 - - 1,442 Total Investments 1,442 - - 1,442 Total Percentage 100% - - 100%

European Equity Index Fund Exchange-Traded Funds 52 - - 52 Total Investments 52 - - 52 Total Percentage 100% - - 100%

International Bond Index Fund Exchange-Traded Funds 102 - - 102 Total Investments 102 - - 102 Total Percentage 100% - - 100%

Information Technology Fund Equities 212 - - 212 Total Investments 212 - - 212 Total Percentage 100% - - 100%

International Brands Fund Exchange-Traded Funds 29 - - 29 Total Investments 29 - - 29 Total Percentage 100% - - 100%

Equity Fund Equities 17,065 - - 17,065 Short Term Notes - 175 - 175 Total Investments 17,065 175 - 17,240

Total Percentage 99% 1% - 100%

Mid-Term Bond Fund Bonds - 9,540 - 9,540 Mortgage Backed Securities - 1,276 305 1,581 Short Term Notes - 170 - 170 Total Investments - 10,986 305 11,291 Total Percentage - 97% 3% 100%

128


The following fair value hierarchy table presents information about the Funds’ assets measured at fair value as of December 31, 2016.


Level 2 (000’s)

Level 3 (000’s)

Total (000’s)

Asset Allocation Fund Bonds $- $10,215 $- $10,215 Equities 13,226 - - 13,226 Mortgage Backed Securities - 991 - 991 Short Term Notes - 344 - 344 Total Investments 13,226 11,550 - 24,776 Total Percentage 53% 47% - 100%

Bond Fund Exchange-Traded Funds 157 - - 157 Total Investments 157 - - 157 Total Percentage 100% - - 100%

Canadian Communications Fund Exchange-Traded Funds 127 - - 127 Derivative Assets (Liabilities) - (1) - (1) Total Investments 127 (1) - 126 Total Percentage 101% (1%) - 100%

Canadian Financial Services Fund Exchange-Traded Funds 320 - - 320 Total Investments 320 - - 320 Total Percentage 100% - - 100%

Canadian Resources Fund Exchange-Traded Funds 106 - - 106 Total Investments 106 - - 106 Total Percentage 100% - - 100%

Canadian Growth Fund Exchange-Traded Funds 158 - - 158 Total Investments 158 - - 158 Total Percentage 100% - - 100% Canadian Small Cap Fund Exchange-Traded Funds 70 - - 70 Total Investments 70 - - 70 Total Percentage 100% - - 100% Dividend Fund Bonds - 995 - 995 Equities 3,859 - - 3,859 Exchange-Traded Funds 362 - - 362 Mortgage Backed Securities - 76 - 76 Short Term Notes - 30 - 30 Total Investments 4,221 1,101 - 5,322 Total Percentage 79% 21% - 100%

T-Bill Fund Short Term Notes - 56 - 56 Total Investments - 56 - 56 Total Percentage - 100% - 100%

Canadian-35 Index Fund Exchange-Traded Funds 11,929 - - 11,929 Short Term Notes - 72 - 72 Total Investments 11,929 72 - 12,001 Total Percentage 99% 1% - 100%

Can-Am Fund Short Term Notes - 25,089 - 25,089 Derivative Assets (Liabilities) (103) - - (103) Total Investments (103) 25,089 - 24,986


129



Level 2 (000’s)

Level 3 (000’s)

Total (000’s)

Can-Asian Fund Short Term Notes - 12,348 - 12,348 Derivative Assets (Liabilities) 51 - - 51 Total Investments 51 12,348 - 12,399 Total Percentage - 100% - 100% Can-Daq 100 Fund Short Term Notes - 8,825 - 8,825 Derivative Assets (Liabilities) (101) - - (101) Total Investments (101) 8,825 - 8,724

Total Percentage (1%) 101% - 100%

Can-Euro Fund Short Term Notes - 10,346 - 10,346 Derivative Assets (Liabilities) 15 - - 15 Total Investments 15 10,346 - 10,361 Total Percentage - 100% - 100%

Can-Global Bond Fund Short Term Notes - 1,473 - 1,473 Derivative Assets (Liabilities) (1) - - (1) Total Investments (1) 1,473 - 1,472 Total Percentage - 100% - 100% American Asset Allocation Fund Exchange-Traded Funds 114 - - 114 Total Investments 114 - - 114 Total Percentage 100% - - 100%

American Equity Index Fund Exchange-Traded Funds 121 - - 121 Total Investments 121 - - 121 Total Percentage 100% - - 100%

Can-Emerge Fund Exchange-Traded Funds 1,285 - - 1,285 Total Investments 1,285 - - 1,285 Total Percentage 100% - - 100%

European Equity Index Fund Exchange-Traded Funds 47 - - 47 Total Investments 47 - - 47 Total Percentage 100% - - 100%

International Bond Index Fund Exchange-Traded Funds 132 - - 132 Total Investments 132 - - 132 Total Percentage 100% - - 100%

Information Technology Fund Equities 3 - - 3 Exchange-Traded Funds 192 - - 192 Total Investments 195 - - 195 Total Percentage 100% - - 100%

International Brands Fund Exchange-Traded Funds 28 - - 28 Total Investments 28 - - 28 Total Percentage 100% - - 100%

Equity Fund Equities 17,491 - - 17,491 Short Term Notes - 549 - 549 Total Investments 17,491 549 - 18,040

130



Level 2 (000’s)

Level 3 (000’s)

Total (000’s)

Total Percentage 97% 3% - 100%

Mid-Term Bond Fund Bonds - 10,069 - 10,069 Mortgage Backed Securities - 1,431 301 1,732 Short Term Notes - 25 - 25 Total Investments - 11,525 301 11,826 Total Percentage - 97% 3% 100%

All fair value measurements above are performed on a regular basis. The carrying value of cash and cash equivalents, receivable for investments sold, interest receivable, dividends receivable, other receivables, payable for investments purchased, management fees payable, other payable and accrued expenses and the Funds’ obligation for NAAC approximate their fair values due to their short term nature. If an instrument classified as Level 1 subsequently ceases to be actively traded, it is transferred out of Level 1 and reclassified into Level 2 or Level 3, as appropriate. a) Equities

The Fund’s equity positions are classified as Level 1 when the security is actively traded and a reliable price is observable. Certain of the Funds’ equities do not trade frequently and therefore observable prices may not be available. In such cases, fair value is determined using observable market data (e.g., transactions for similar securities of the same issuer) and the fair value is classified as Level 2, unless the determination of fair value requires significant unobservable data, in which case the measurement is classified as Level 3.

b) Bonds and short term investments

Bonds include primarily government and corporate bonds, which are valued at the mean of bid/ask prices provided by recognized investment dealers for NAV purposes and at bid price for NAAC. Unlisted convertible debentures are valued at cost, if the underlying security is less than the conversion price; or if the underlying security is greater than the conversion price, at the intrinsic or market value less conversion cost of the underlying security multiplied by the number of shares to be received. Short term notes and treasury bills are stated at amortized cost, which approximates fair market value. The inputs that are significant to valuation are generally observable and therefore the Funds’ bonds and short term investments have been classified as Level 2 unless the determination of inputs to the fair value requires significant unobservable data in which case the measurement is classified as Level 3.

c) Derivative assets and liabilities

Derivative assets and liabilities consist of foreign currency forward contracts and futures contracts. Foreign currency forward contracts are valued based primarily on the contract notional amount, the difference between the contract rate and the forward market rate for the same currency, interest rates and credit spreads. Contracts for which counterparty credit spreads are observable and reliable, or for which the credit-related inputs are determined not to be significant to fair value, are classified as Level 2. Futures contracts are classified as Level 1 when a reliable price is observable, and valued at fair value. The resulting unrealized gain or loss is shown as an asset (liability) in the statements of financial position.

Movements between Level 1 and Level 2 financial instruments There were no transfers between Level 1 and 2 for the periods ended June 30, 2017 and December 31, 2016. Valuation of Level 3 financial instruments a) Corporate bonds

Valuations of corporate bonds are performed daily. Valuations are determined by applying yield and spread to quoted price by broker or dealer. b) Mortgage backed securities

Valuations of mortgage-backed securities are performed daily. Valuations are determined by applying yield and spread to quoted price by broker or dealer.

c) Equity securities

Valuations of equity securities are performed daily and based on manager assumption.

The chart below provides information about the valuation techniques and resulting fair values used for Level 3 financial instruments as at June 30, 2017 and December 31, 2016. 2017 2016 Valuation Technique Fair Value

(000’s) Valuation Technique Fair Value (000’s)

Mortgage-back securities Broker quotes with manager assumption $305 Broker quotes with manager assumption $301

Equity securities Manager assumption - Manager assumption -

Bond securities Broker quotes with manager assumption - Broker quotes with manager assumption -

131


The following is a reconciliation of Level 3 fair value measurements from December 31, 2016 to June 30, 2017.

Bonds (000’s)

Equities (000’s)

Mortgage Backed Securities (000’s)

Total (000’s)

Equity Fund Beginning balance (December 31, 2016)** $- $- $- $- Purchases - - - - Sales - - - - Net transfers into and/or out of Level 3 - - - - Net realized gain (losses) - - - - Change in unrealized appreciation (depreciation)** - - - - Ending balance (June 30, 2017)** - - - - Mid-Term Bond Fund Beginning balance (December 31, 2016) - - 301 301 Purchases - - - - Sales - - - - Net transfers into and/or out of Level 3 - - - - Net realized gain (losses) - - - - Change in unrealized appreciation (depreciation) - - 4 4 Ending balance (June 30, 2017) - - 305 305

**Numbers shown are zero when rounded to thousands. The following is a reconciliation of Level 3 fair value measurements from December 31, 2015 to December 31, 2016.

Bonds (000’s)

Equities (000’s)

Mortgage Backed Securities (000’s)

Total (000’s)

Equity Fund Beginning balance (December 31, 2015)** - - - - Purchases - - - - Sales - - - - Net transfers into and/or out of Level 3 - - - - Net realized gain (losses) - - - - Change in unrealized appreciation (depreciation)** - - - - Ending balance (December 31, 2016)** - - - - Mid-Term Bond Fund Beginning balance (December 31, 2015) - - $313 $313 Purchases - - - - Sales - - - - Net transfers into and/or out of Level 3 - - - - Net realized gain (losses) - - - - Change in unrealized appreciation (depreciation) - - (12) (12) Ending balance (December 31, 2016) - - 301 301

**Numbers shown are zero when rounded to thousands.

17. Income Taxes The Funds are deemed to be inter-vivo trusts under the provisions of the Income Tax Act (Canada). Income earned by the trusts is deemed to be payable to the contractholders and therefore deductible by the trusts. In addition, capital gains and losses are deemed to have been realized by contractholders directly and not by the trusts. As a result, no provision for income taxes is required in the financial statements of the Funds.

18. Future accounting policy changes

Amendments to IAS 1 Presentation of Financial Statements

As part of its Disclosure Initiative to enhance the presentation and disclosure in financial reports, the IASB issued amendments to IAS 1 Presentation of Financial Statements in December 2014 that is effective for annual reporting periods beginning on or after January 1, 2016. The amendments clarify the materiality guidance and the requirements with respect to the presentation of the notes, as well as the list of line items that need to be presented in the statement of financial position and the statement of income (loss) and OCI. The Manager has reviewed and adopted the revised standard with minimal impact on its presentation and disclosure practices.

132


IFRS 9 Financial Instruments

In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments to replace IAS 39. IFRS 9 provides guidance on the classification and measurement of financial instruments, impairment of financial assets and hedge accounting. The classification and measurement of financial assets will depend on the financial asset’s contractual cash flow characteristics and the entity’s business model for managing the asset. For financial instruments not measured as FVTPL, IFRS 9 introduces an impairment model that requires recognition of expected loss from possible default events in the near term as well as recognition of lifetime expected loss if certain criteria are met. A new model for hedge accounting aligns hedge accounting more closely with the entity’s risk management activities by increasing the eligibility of both hedged items and hedging instruments, and introducing a more principles-based approach to assess hedging effectiveness. IFRS 9 is effective for annual periods beginning or after January 1, 2018 with early adoption permitted. The Manager is currently assessing the impact of the adoption of this standard. IFRS 15 Revenue from Contracts with Customers

In May 2014, the IASB published a new standard, IFRS 15 Revenue from Contracts with Customers, effective on January 1, 2017, that sets out the principles for when revenue should be recognized and how it should be measured, together with related disclosures. The standard requires a company to recognize revenue that represents the transfer of goods or services to customers, measured at the amounts it expects to receive when the customer has control of the goods or services. Contracts covered by IFRS 9 Financial Instruments (“IFRS 9”) and IFRS 4 are excluded from the scope of this new standard. In September 2015, the IASB deferred the effective date of IFRS 15 Revenue from Contracts with Customers from January 1, 2017 to January 1, 2018. The Manager is analyzing the impact on these Funds’ financial statements.

19. Comparative Figures The comparative financial statement figures, including the accompanying notes, include reclassifications to be consistent with the presentation of the current year financial statements.

133

2017* 2016 2015 2014 2013 2012 2017* 2016 2015 2014 2013 2012

VIO 3.00 2.99 2.99 2.99 2.99 2.93 3.04 3.04 3.01 2.99 3.00 3.06VIO2 3.72 3.70 3.58 3.58 3.58 3.46 3.75 3.75 3.60 3.58 3.60 3.58VIO3 3.56 3.54 3.32 3.32 3.33 3.24 3.59 3.59 3.35 3.32 3.34 3.37

Bond Fund VIO 3.10 3.63 3.06 3.06 2.99 2.98 17.96 17.49 17.07 18.26 3.27 3.08Canadian Communications Fund VIO 3.74 4.03 3.45 3.46 3.42 3.42 23.97 24.62 25.02 26.51 4.73 4.82Canadian Financial Services Fund VIO 3.18 4.04 3.47 3.48 3.47 3.44 10.18 12.19 11.21 11.98 4.90 4.97Canadian Resources Fund VIO 3.12 3.95 3.42 3.43 3.42 3.40 26.60 27.52 25.98 20.98 5.79 5.12Canadian Growth Fund VIO 3.62 3.95 3.37 3.41 3.39 3.29 19.95 19.46 17.47 16.42 4.16 3.76Canadian Small Cap Fund VIO 3.11 3.99 3.43 3.47 3.45 3.41 38.01 41.17 41.06 37.01 4.42 4.48

VIO 3.74 3.74 3.33 3.35 3.35 3.27 4.06 4.00 3.78 3.79 3.36 3.39VIO2 2.44 2.44 2.44 2.44 2.50 2.51 2.77 2.71 2.89 2.87 2.51 2.63VIO3 4.08 4.24 3.68 3.68 3.69 3.60 4.41 4.51 4.13 4.11 3.70 3.72

T-Bill Fund VIO 2.30 2.45 1.95 1.92 1.91 1.94 46.18 45.54 28.23 12.81 1.91 3.44VIO 3.07 3.26 3.07 3.07 3.07 2.96 3.15 3.33 3.19 3.18 3.08 3.09

VIO2 3.55 3.74 3.62 3.62 3.62 3.55 3.62 3.81 3.74 3.74 3.63 3.67VIO3 3.57 3.92 3.36 3.37 3.37 3.27 3.64 3.99 3.48 3.48 3.38 3.39VIO4 2.31 2.50 2.49 2.49 2.49 2.49 2.38 2.57 2.61 2.60 2.51 2.61VIO 3.48 3.46 3.43 3.43 3.44 3.36 3.54 3.53 3.46 3.46 3.45 3.48

VIO2 3.55 3.53 3.31 3.31 3.32 3.23 3.61 3.60 3.34 3.33 3.33 3.36VIO3 3.01 2.99 2.99 2.99 2.99 3.00 3.07 3.06 3.02 3.02 3.01 3.13VIO4 4.22 4.36 3.81 3.84 3.82 3.77 4.28 4.43 3.85 3.86 3.83 3.90VIO 3.25 3.23 3.23 3.23 3.24 3.26 3.45 3.46 3.39 3.42 3.25 3.38

VIO2 3.69 3.79 3.28 3.28 3.29 3.25 3.89 4.02 3.44 3.47 3.30 3.38VIO3 2.99 2.97 2.96 2.98 2.99 3.00 3.19 3.20 3.12 3.16 3.00 3.12VIO4 4.27 4.41 3.86 3.85 3.91 3.80 4.47 4.64 4.02 4.03 3.92 3.92VIO 3.60 3.58 3.42 3.43 3.43 3.36 3.82 3.85 3.73 3.78 3.44 3.48

VIO2 3.00 2.98 2.98 2.98 2.98 3.01 3.22 3.26 3.29 3.33 2.99 3.13VIO3 4.23 4.38 3.83 3.84 3.84 3.79 4.46 4.65 4.14 4.19 3.85 3.91VIO 3.00 2.99 2.98 2.99 2.99 3.00 3.22 3.26 3.27 3.29 3.00 3.13VIO2 3.79 3.78 3.42 3.42 3.43 3.37 4.02 4.05 3.71 3.72 3.44 3.50VIO3 4.26 4.41 3.86 3.86 3.86 3.80 4.49 4.68 4.14 4.16 3.87 3.93VIO 3.86 4.01 3.47 3.45 3.47 3.38 6.20 6.17 5.65 5.60 4.31 4.14

VIO2 3.67 3.82 3.29 3.29 3.28 3.21 6.01 5.99 5.47 5.44 4.12 3.98VIO3 3.00 2.98 2.99 3.00 3.00 3.01 5.34 5.15 5.17 5.15 3.84 3.77

American Asset Allocation Fund VIO 3.65 3.99 3.41 3.44 3.42 3.44 24.64 25.79 29.42 39.43 31.36 40.18American Equity Index Fund VIO 3.81 4.08 3.50 3.46 3.50 3.43 22.86 19.83 17.48 22.16 16.07 20.27

VIO 3.04 3.99 3.43 3.43 3.44 3.37 4.76 5.69 5.18 5.25 4.33 4.25VIO2 2.19 2.99 3.00 2.99 2.99 2.97 3.92 4.69 4.74 4.82 3.88 3.84

European Equity Index Fund VIO 3.67 3.93 3.41 3.40 3.40 3.46 49.11 54.24 50.89 64.66 32.68 34.44International Bond Index Fund VIO 3.25 3.71 3.18 3.33 3.19 3.32 24.59 20.28 20.74 22.08 4.73 4.90Information Technology Fund VIO 4.05 4.35 3.78 3.75 3.78 3.76 14.72 17.04 17.74 22.02 5.63 5.53International Brands Fund VIO 4.03 4.26 3.71 3.70 3.76 3.79 85.50 100.11 110.24 144.96 33.61 35.30

VIO 3.78 3.76 3.64 3.65 3.65 3.59 3.85 3.86 3.71 3.69 3.66 3.71VIO2 3.01 2.99 2.99 2.99 2.99 3.01 3.08 3.09 3.06 3.03 3.00 3.13VIO 3.12 3.10 2.97 2.96 2.97 2.87 3.22 3.18 3.08 3.07 2.98 2.99

VIO2 3.74 3.71 3.51 3.52 3.52 3.43 3.84 3.80 3.62 3.62 3.53 3.55VIO3 2.51 2.49 2.49 2.49 2.49 2.51 2.61 2.58 2.60 2.59 2.51 2.63

* 2017 MERs are represented by the annualized half year ratios.

Dividend Fund


Can-Am Fund

Can-Asian Fund

Can-Daq 100 Fund

Equity Fund

Mid-Term Bond Fund

Can-Euro Fund


Can-Emerge Fund

Management Expense Ratio (unaudited)

The following table presents the Investment Managements Series ("IMS") management expense ratio ("MER") before and after waived expenses, applied to each Fund and expressed as a percentage of each Fund’s annual average NAV for each of the last five fiscal years or since inception, whichever is applicable.

Class / Guarante

eFund


With GST/HST before waived expenses (%)With GST/HST after waived expenses (%)

134

DisclaimersSource: MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.

The ivari’s products are not in any way sponsored, endorsed, sold or promoted by FTSE International Limited, the London Stock Exchange Group companies TSX Inc. and its affiliates or FTSE TMX Global Debt Capital Markets Inc. (together the “Licensor Parties”) and the Licensor Parties do not make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the (“the Index*”) and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE TMX Global Debt Capital Markets Inc. and all copyright in the Index values and constituent lists vests in FTSE TMX Global Debt Capital Markets Inc. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and the Licensor Parties shall not be under any obligation to advise any person of any error therein. “FTSE” is a trade mark of FTSE International Ltd and is used under licence.” “TMX” is a trade mark of TSX Inc. and is used under licence.

*Index-FTSE TMX Canada Bond Universe Index

The Fund is not sponsored, endorsed, sold or promoted by NASDAQ, Inc. or its affiliates (NASDAQ, with its affiliates, are referred to as the “Corporations”). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of descriptions and disclosures relating to, the Fund. The Corporations make no representation or warranty, express or implied to the unitholders of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly, or the ability of the NASDAQ-100 Index® to track general stock market performance. The Corporations’ only relationship to ivari (“Licensee”) is in the licensing of the Nasdaq® and NASDAQ-100 Index® marks, and certain trade names of the Corporations and the use of the NASDAQ-100 Index® which is determined, composed and calculated by NASDAQ without regard to ivari or the Fund. NASDAQ has no obligation to take the needs of ivari or the unitholders of the Fund into consideration in determining, composing or calculating the NASDAQ-100 Index®. The Corporations are not responsible for and have not participated in the determination of the timing of, prices at, or quantities of the Fund’s units to be issued or in the determination or calculation of the equation by which the Fund’s units are to be converted into cash. The Corporations have no liability in connection with the administration, marketing or offering of the Fund. THE CORPORATIONS DO NOT GUARANTEE THE ACCURACY AND/OR UNINTERRUPTED CALCULATION OF THE NASDAQ-100 INDEX® OR ANY DATA INCLUDED THEREIN. THE CORPORATIONS MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY ivari, UNITHOLDERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE NASDAQ-100 INDEX® OR ANY DATA INCLUDED THEREIN. THE CORPORATIONS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE NASDAQ-100 INDEX® OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL THE CORPORATIONS HAVE ANY LIABILITY FOR ANY LOST PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

The “Index”** is a product of S&P Dow Jones Indices LLC (“SPDJI”) and TSX Inc., and has been licensed for use by ivari. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”). Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). TSX® is a registered trademark of TSX Inc. The trademarks have been licensed to SPDJI and have been sublicensed for use for certain purposes by ivari. ivari’s Product(s) are not sponsored, endorsed, sold or promoted by SPDJI, S&P, Dow Jones, any of their respective affiliates (collectively, “S&P Dow Jones Indices”) or TSX Inc. or its affiliates (collectively, “TSX”). Neither S&P Dow Jones Indices nor TSX make any representation or warranty, express or implied, to the owners of the ivari’s Product(s) or any member of the public regarding the advisability of investing in securities generally or in ivari’s Product(s) particularly or the ability of the Index** to track general market performance. S&P Dow Jones Indices’ only relationship to ivari with respect to the Index** is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The Index** is determined, composed and calculated by S&P Dow Jones Indices without regard to ivari or the ivari’s Product(s). S&P Dow Jones Indices and TSX have no obligation to take the needs of ivari or the owners of ivari’s Product(s) into consideration in determining, composing or calculating the Index**. Neither S&P Dow Jones Indices nor TSX are responsible for and have not participated in the determination of the prices, and amount of ivari’s Product(s) or the timing of the issuance or sale of ivari’s Product(s) or in the determination or calculation of the equation by which ivari’s Product(s) is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices and TSX have no obligation or liability in connection with the administration, marketing or trading of ivari’s Product(s). There is no assurance that investment products based on the Index** will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC and TSX are not investment advisors. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices or TSX to buy, sell, or hold such security, nor is it considered to be investment advice. NEITHER S&P DOW JONES INDICES NOR TSX GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE INDEX** OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES AND TSX SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES AND TSX MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY ivari, OWNERS OF THE ivari’s PRODUCT(S), OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX** OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES OR TSX BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND ivari, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.

**Index – S&P/TSX 60 Index , S&P/TSX Composite Index, S&P/TSX Capped Financials Total Return, S&P/TSX Capped Energy Index, S&P/TSX Capped Materials Index, S&P/TSX Small Cap Price Return Index.

Disclaimers (continued)

1. The Nikkei Stock Average (NSA) is a copyrighted material calculated in a methodology independently developed and created by The Licensor and The Licensor is the sole exclusive owner of the copyright and other intellectual property rights in the NSA itself and the methodology to calculate the NSA;

2. The intellectual property and any other rights in the marks to indicate Nikkei and the NSA shall be vested in Nikkei Inc.;

3. Nikkei Inc. does not sponsor, support, sell or market the Product. Nikkei Inc. has - besides granting the license to the Licensee to use certain trademarks and to use the NSA for the Product – no connection with the Product. The license agreement between Nikkei Inc. and the Licensee does not provide any rights to any third parties.

4. The Product is managed exclusively at the risk of the Licensee and Nikkei Inc. shall assume no obligation or responsibility for its management and transactions of the Product. Nikkei Inc. is not responsible for the accuracy and the calculation of the Product or the data contained therein.

5. Nikkei Inc. shall not have the obligation to continuously announce the NSA and shall not be liable for any error, delay, interruption, suspension or cessation of announcement thereof; and

6. Nikkei Inc. shall have the right to change the description of the stocks included in the NSA, the calculation methodology of the NSA or any other details of the NSA and shall have the right to suspend or cease the announcement of the NSA without owning any liability to the Licensor or any other third party.

The Hang Seng Index (the “Index”) is published and compiled by Hang Seng Indexes Company Limited pursuant to a licence from Hang Seng Data Services Limited. The mark and name Hang Seng Index are proprietary to Hang Seng Data Services Limited. Hang Seng Indexes Company Limited and Hang Seng Data Services Limited have agreed to the use of, and reference to, the Index by ivari in connection with Can-Asian Fund/Index Account (the “Product”), BUT NEITHER HANG SENG INDEXES COMPANY LIMITED NOR HANG SENG DATA SERVICES LIMITED WARRANTS OR REPRESENTS OR GUARANTEES TO ANY BROKER OR HOLDER OF THE PRODUCT OR ANY OTHER PERSON (i) THE ACCURACY OR COMPLETENESS OF THE INDEX AND ITS COMPUTATION OR ANY INFORMATION RELATED THERETO; OR (ii) THE FITNESS OR SUITABILITY FOR ANY PURPOSE OF THE INDEX OR ANY COMPONENT OR DATA COMPRISED IN IT; OR (iii) THE RESULTS WHICH MAY BE OBTAINED BY ANY PERSON FROM THE USE OF THE INDEX OR ANY COMPONENT OR DATA COMPRISED IN IT FOR ANY PURPOSE, AND NO WARRANTY OR REPRESENTATION OR GUARANTEE OF ANY KIND WHATSOEVER RELATING TO THE INDEX IS GIVEN OR MAY BE IMPLIED. The process and basis of computation and compilation of the Index and any of the related formula or formulae, constituent stocks and factors may at any time be changed or altered by Hang Seng Indexes Company Limited without notice. TO THE EXTENT PERMITTED BY APPLICABLE LAW, NO RESPONSIBILITY OR LIABILITY IS ACCEPTED BY HANG SENG INDEXES COMPANY LIMITED OR HANG SENG DATA SERVICES LIMITED (i) IN RESPECT OF THE USE OF AND/OR REFERENCE TO THE INDEX BY ivari IN CONNECTION WITH THE PRODUCT; OR (ii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES OR ERRORS OF HANG SENG INDEXES COMPANY LIMITED IN THE COMPUTATION OF THE INDEX; OR (iii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES, ERRORS OR INCOMPLETENESS OF ANY INFORMATION USED IN CONNECTION WITH THE COMPUTATION OF THE INDEX WHICH IS SUPPLIED BY ANY OTHER PERSON; OR (iv) FOR ANY ECONOMIC OR OTHER LOSS WHICH MAY BE DIRECTLY OR INDIRECTLY SUSTAINED BY ANY BROKER OR HOLDER OF THE PRODUCT OR ANY OTHER PERSON DEALING WITH THE PRODUCT AS A RESULT OF ANY OF THE AFORESAID, AND NO CLAIMS, ACTIONS OR LEGAL PROCEEDINGS MAY BE BROUGHT AGAINST HANG SENG INDEXES COMPANY LIMITED AND/OR HANG SENG DATA SERVICES LIMITED in connection with the Product in any manner whatsoever by any broker, holder or other person dealing with the Product. Any broker, holder or other person dealing with the Product does so therefore in full knowledge of this disclaimer and can place no reliance whatsoever on Hang Seng Indexes Company Limited and Hang Seng Data Services Limited. An investor, by purchasing the Product, will be regarded as having acknowledged, understood and accepted this disclaimer and will be bound by it; and the level of the Index at any time for the purposes of the Product will be the level as calculated by HSIL in its sole discretion. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker, holder or other person and Hang Seng Indexes Company Limited and/or Hang Seng Data Services Limited and must not be construed to have created such relationship.

Any amount that is allocated to a segregated fund is invested at the risk of the contract holder(s) and may increase or decrease in value.TM ivari and the ivari logos are trademarks of ivari Holdings ULC. ivari is licensed to use such marks.

IP971 10/17

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