Scotia Private Pools Pinnacle Portfolios Semi-Annual … Portfolios Semi-Annual Report June 30, 2016...

Scotia Private Pools®and

Pinnacle PortfoliosSemi-Annual ReportJune 30, 2016

Money Market FundScotia Private Short Term Income Pool

Bond FundsScotia Private Income PoolScotia Private High Yield Income PoolScotia Private American Core-Plus Bond Pool

Balanced FundScotia Private Strategic Balanced Pool

Canadian Equity FundsScotia Private Canadian Value PoolScotia Private Canadian Mid Cap PoolScotia Private Canadian Growth PoolScotia Private Canadian Small Cap Pool

Foreign Equity FundsScotia Private U.S. Value PoolScotia Private U.S. Mid Cap Value PoolScotia Private U.S. Mid Cap Growth PoolScotia Private U.S. Large Cap Growth PoolScotia Private International Equity PoolScotia Private International Small to Mid Cap Value PoolScotia Private Emerging Markets PoolScotia Private Global Equity PoolScotia Private Global Real Estate Pool

Pinnacle PortfoliosPinnacle Income PortfolioPinnacle Balanced PortfolioPinnacle Growth Portfolio

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Financial Statements

Money Market Fund3 • Scotia Private Short Term Income Pool

Bond Funds6 • Scotia Private Income Pool11 • Scotia Private High Yield Income Pool19 • Scotia Private American Core-Plus Bond Pool

Balanced Fund29 • Scotia Private Strategic Balanced Pool

Canadian Equity Funds35 • Scotia Private Canadian Value Pool40 • Scotia Private Canadian Mid Cap Pool46 • Scotia Private Canadian Growth Pool51 • Scotia Private Canadian Small Cap Pool

Foreign Equity Funds55 • Scotia Private U.S. Value Pool59 • Scotia Private U.S. Mid Cap Value Pool63 • Scotia Private U.S. Mid Cap Growth Pool68 • Scotia Private U.S. Large Cap Growth Pool71 • Scotia Private International Equity Pool77 • Scotia Private International Small to Mid Cap Value Pool84 • Scotia Private Emerging Markets Pool90 • Scotia Private Global Equity Pool95 • Scotia Private Global Real Estate Pool

The Pinnacle Portfolios100 • Pinnacle Income Portfolio104 • Pinnacle Balanced Portfolio108 • Pinnacle Growth Portfolio

112 Notes to the Financial Statements

123 Management’s Responsibility for Financial Reporting

1

Scotia Private Short Term Income Pool (Unaudited)

STATEMENTS OF FINANCIAL POSITIONAs at

(in dollars)June 30,

2016December 31,

2015

ASSETSCurrent assetsInvestments

Non-derivative financial assets 5,165,947 6,085,478Cash 63,625 144,169Accrued investment income and other receivables 334 384

5,229,906 6,230,031

LIABILITIESCurrent liabilitiesManagement fee payable 31 –Accrued expenses 2,716 –Distributions payable 10 4

2,757 4

Net assets attributable to holders of redeemable units 5,227,149 6,230,027

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS PER SERIES

Pinnacle Series 5,162,235 6,083,021Series F 64,914 147,006

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS PER UNIT

Pinnacle Series 10.00 10.00Series F 10.00 10.00

STATEMENTS OF COMPREHENSIVE INCOMEFor the six month periods ended June 30 (note 1),(in dollars) 2016 2015

INCOMENet gain (loss) on investments

Interest for distribution purposes 25,955 27,012

Net gain (loss) on investments 25,955 27,012Securities lending 15 8

Total income (loss), net 25,970 27,020

EXPENSESManagement fees (note 5) 169 323Independent Review Committee fees 566 5Audit fees 70 43Custodian fees 459 677Filing fees 8,100 8,047Legal fees 43 36Unitholder administration costs 15,753 13,242Unitholder reporting costs 1,098 953Other fund costs 1 –Harmonized Sales Tax/Goods and Services Tax 1,897 1,638

Total expenses 28,156 24,964Expenses absorbed by the Manager (10,048) (10,980)

Net expenses 18,108 13,984

Increase (decrease) in net assets attributable to holders ofredeemable units from operations 7,862 13,036

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER SERIES

Pinnacle Series 7,810 12,768Series F 52 268

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER UNIT†


WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESPinnacle Series 650,460 493,404Series F 6,940 12,985

† The increase (decrease) in net assets attributable to holders of redeemable units fromoperations per unit is calculated by dividing the increase (decrease) in net assetsattributable to holders of redeemable units from operations per series by the weightedaverage number of units per series.

STATEMENTS OF CHANGES IN NET ASSETSATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the six month periods ended June 30 (note 1),(in dollars) 2016 2015

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS, BEGINNING OF PERIOD


6,230,027 5,772,534

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS

Pinnacle Series 7,810 12,768Series F 52 268

7,862 13,036

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITSFrom net investment income

Pinnacle Series (7,810) (12,768)Series F (52) (268)

(7,862) (13,036)

REDEEMABLE UNIT TRANSACTIONSProceeds from issue


Reinvested distributionsPinnacle Series 7,774 12,766Series F 52 268

Payments on redemptionPinnacle Series (3,395,427) (2,359,646)Series F (88,144) (43,235)

(1,002,878) (395,418)

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS

Pinnacle Series (920,786) (482,488)Series F (82,092) 87,070

(1,002,878) (395,418)

NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITS, END OF PERIOD


5,227,149 5,377,116

STATEMENTS OF CASH FLOWSFor the six month periods ended June 30 (note 1),(in dollars) 2016 2015

CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders of

redeemable units 7,862 13,036Adjustments for:

Purchases of portfolio investments (18,714,183) (8,894,150)Proceeds from sale of portfolio investments 19,633,713 9,302,044Accrued investment income and other receivables 50 44Accrued expenses and other payables 2,747 2,491

Net cash provided by (used in) operating activities 930,189 423,465

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 2,472,867 1,994,428Amounts paid on redemption of redeemable units (3,483,570) (2,402,881)Distributions to unitholders of redeemable units (30) 2

Net cash provided by (used in) financing activities (1,010,733) (408,451)Net increase (decrease) in cash (80,544) 15,014Cash (bank overdraft), beginning of period 144,169 57,667

CASH (BANK OVERDRAFT), END OF PERIOD 63,625 72,681

Interest paid(1) – –Interest received(1) 24,987 28,211Dividends received, net of withholding taxes(1) – –

(1) Classified as operating items.

The accompanying notes are an integral part of the financial statements. Portfolio Adviser: 1832 Asset Management L.P.

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Scotia Private Short Term Income Pool (Unaudited – Continued)

SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2016FaceValue ($) Issuer

AverageCost ($)

CarryingValue ($)

MONEY MARKET INSTRUMENTS – 98.9%Short Term Bonds – 34.8%

150,000 Bank of Montreal (Floating Rate) 1.18%Apr 10, 2017 150,000 150,386

100,000 Caisse Centrale Desjardins 2.28% Oct 17, 2016 101,121 100,794150,000 Canadian Imperial Bank of Commerce (Floating

Rate) 1.10% May 17, 2017 150,000 150,053100,000 Canadian Imperial Bank of Commerce 2.65%

Nov 08, 2016 101,330 100,945100,000 GE Capital Canada Funding Company 3.35%

Nov 23, 2016 102,246 101,238200,000 Genesis Trust II 2.30% Feb 15, 2017 202,292 203,185100,000 Greater Toronto Airports Authority 4.85%

Jun 01, 2017 103,760 103,952100,000 John Deere Canada Funding Inc. 2.30% Jul 05,

2016 101,195 101,133200,000 Master Credit Card Trust 2.63% Jan 21, 2017 202,060 204,216100,000 National Bank of Canada 2.70% Dec 15, 2016 101,527 100,863200,000 Ontario Hydro Corporation Coupon Strip 0.00%

Nov 27, 2016 198,933 199,494150,000 Royal Bank of Canada (Floating Rate) 1.08%

Sep 16, 2016 150,000 150,052150,000 Wells Fargo Canada Corporation 2.77%

Feb 09, 2017 152,409 153,095

1,816,873 1,819,406

Provincial Bonds – 3.8%200,000 Province of Manitoba Coupon Strips 0.00%

Mar 05, 2017 198,586 198,922

Bankers’ Acceptances – 6.7%150,000 National Bank of Canada 0.00% Sep 15, 2016 149,732 149,758100,000 Toronto-Dominion Bank, The 0.00% Jul 28, 2016 99,940 99,944100,000 Toronto-Dominion Bank, The 0.00% Sep 26, 2016 99,764 99,810

349,436 349,512

Commercial Paper – 9.1%100,000 FortisBC Inc. 0.00% Aug 03, 2016 99,862 99,921125,000 Honda Canada Finance Inc. 0.00% Nov 25, 2016 124,503 124,555100,000 Omers Finance Trust 0.00% Sep 01, 2016 99,796 99,863150,000 Toyota Credit Canada Inc. 0.00% Jul 12, 2016 149,417 149,961

473,578 474,300

Promissory Notes – 30.5%730,000 Province of Alberta 0.00% Jul 12, 2016 729,613 729,867450,000 Province of Nova Scotia 0.00% Jul 07, 2016 449,847 449,958420,000 Province of Saskatchewan 0.00% Aug 02, 2016 419,651 419,772

1,599,111 1,599,597

Treasury Bills – 13.9%250,000 Province of Newfoundland and Labrador 0.00%

Sep 22, 2016 249,627 249,642275,000 Province of Ontario 0.00% Sep 21, 2016 274,109 274,587200,000 Province of Quebec 0.00% Jul 08, 2016 199,978 199,981

723,714 724,210

TOTAL INVESTMENT PORTFOLIO 5,161,298 5,165,947

OTHER ASSETS, LESS LIABILITIES – 1.2% 61,202

NET ASSETS – 100.0% 5,227,149

Instruments with a 0.00% stated interest rate are purchased at a discount to face value. Thediscount represents the implied effective interest.


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Scotia Private Short Term Income Pool (Unaudited – Continued)

FUND SPECIFIC NOTESFor the periods indicated in Note 1.

1. The Fund (note 1)

The Fund’s objective is to preserve investment capital while providinginterest income and maintaining liquidity by investing primarily inhighly liquid, senior investment grade money market instruments (i.e.federal and provincial treasury bills and bond) and bankersacceptances with a minimum credit rating of R-1(low) or A-1(low).

2. Risks associated with financial instruments (note 4)

i) Interest rate risk

The table below summarizes the Fund’s exposure to interest rate riskby the remaining term to maturity of the Fund’s portfolio, excludingcash and overdrafts, as applicable.

Interest rate exposureJune 30, 2016

($)December 31, 2015

($)

Less than 1 year 5,165,947 5,935,1221-3 years – 150,3563-5 years – –5-10 years – –> 10 years – –

5,165,947 6,085,478

As at June 30, 2016, had the prevailing interest rates increased ordecreased by 0.25%, assuming a parallel shift in the yield curve and allother variables held constant, net assets attributable to holders ofredeemable units would have decreased or increased, respectively, by$2,843 or approximately 0.1% (December 31, 2015 – $2,939 orapproximately 0.0%).

ii) Currency risk

The Fund did not have significant currency risk exposure as atJune 30, 2016 or December 31, 2015.

iii) Price risk

The Fund did not have significant price risk exposure to equities,underlying funds, derivatives or commodities, if applicable, as atJune 30, 2016 and December 31, 2015.

iv) Credit risk

The table below summarizes the credit ratings of the bonds anddebentures, money market instruments and preferred shares held bythe Fund, as applicable.

June 30, 2016 December 31, 2015

Credit ratings

Percentage oftotal money

marketinstruments

(%)

Percentage ofnet assets

(%)

Percentage oftotal money

marketinstruments

(%)

Percentageof netassets

(%)

Short term RatingA-1+ 5.8 5.7 48.8 47.8A-1 55.1 54.5 14.8 14.4

Bond RatingAAA 7.9 7.8 7.5 7.3AA 16.5 16.2 15.6 15.3A 14.7 14.6 13.3 12.9

100.0 98.8 100.0 97.7

v) Concentration risk

Concentration risk arises as a result of the concentration of exposureswithin the same category, geographical location, asset type or industrysector, as applicable. The table below is a summary of the Fund’sconcentration risk:

Percentage of net assets (%)

June 30, 2016 December 31, 2015

Bankers’ Acceptances 6.7 1.6Commercial Paper 9.1 13.6Promissory Notes 30.5 –Provincial Bonds 3.8 –Short Term Bonds 34.8 35.6Treasury Bills 13.9 46.9

vi) Fair Value Classification (note 2)

The tables below illustrate the classification of the Fund’s financialinstruments within the fair value hierarchy.

June 30, 2016Level 1

($)Level 2

($)Level 3

($)Total($)

Bonds and debentures – 2,018,327 – 2,018,327Money market instruments – 3,147,620 – 3,147,620

– 5,165,947 – 5,165,947

December 31, 2015Level 1

($)Level 2

($)Level 3

($)Total($)

Bonds and debentures – 2,216,066 – 2,216,066Money market instruments – 3,869,412 – 3,869,412

– 6,085,478 – 6,085,478

Transfers between levels

During the periods ended June 30, 2016 and December 31, 2015, therewere no significant transfers between Level 1 and Level 2.

3. Offsetting of financial assets and liabilities (note 2)

As at June 30, 2016 or December 31, 2015, the Fund did not enter intoany agreement whereby the financial instruments were eligible foroffset.

4. Interest in unconsolidated structured entities (note 2)

The Fund did not hold any interest in unconsolidated structuredentities as at June 30, 2016 or December 31, 2015.

5. Comparison of net asset value per unit and net assets per unit(note 2)

As at June 30 2016 or December 31, 2015, there were no differencesbetween the net asset value per unit and the net assets per unit for anyseries of the Fund.

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

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Scotia Private Income Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 472,873,296 421,017,787Cash 3,947,336 2,948,928Receivable for securities sold 2,940,934 –Subscriptions receivable 1,975,066 286,568Accrued investment income and other 1,814,197 1,685,057

483,550,829 425,938,340

LIABILITIESCurrent liabilitiesManagement fee payable 1,351 –Payable for securities purchased 2,975,280 –Redemptions payable 577,775 134,188Accrued expenses 29,021 200Distributions payable 29,993 –

3,613,420 134,388



Pinnacle Series 449,804,599 393,787,102Series F 2,237,283 2,200,367Series I 27,895,527 29,816,483


Pinnacle Series 11.07 10.77Series F 11.37 11.07Series I 11.11 10.81



Interest for distribution purposes 6,030,824 5,619,727Net realized gain (loss) on non-derivative financial assets 1,243,025 389,476Change in unrealized gain (loss) on non-derivative financial

assets 11,574,213 (2,000,335)

Net gain (loss) on investments 18,848,062 4,008,868Securities lending 21,148 8,433Net realized and unrealized foreign currency translation

gain(loss) – (346)Other income 2,693 1,046

Total income (loss), net 18,871,903 4,018,001

EXPENSESManagement fees (note 5) 7,302 8,908Fixed administration fees (note 6) 150,120 122,475Independent Review Committee fees 563 260Other fund costs 78 –Harmonized Sales Tax/Goods and Services Tax 16,136 13,783

Total expenses 174,199 145,426

Increase (decrease) in net assets attributable to holders ofredeemable units from operations 18,697,704 3,872,575

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERSERIES

Pinnacle Series 17,452,589 3,413,237Series F 76,822 29,130Series I 1,168,293 430,208

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONS PERUNIT†


WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESPinnacle Series 38,299,617 30,422,583Series F 187,762 226,024Series I 2,615,235 2,963,895


The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Beutel, Goodman & Company Ltd.

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Scotia Private Income Pool (Unaudited – Continued)




425,803,952 334,447,029


Pinnacle Series 17,452,589 3,413,237Series F 76,822 29,130Series I 1,168,293 430,208

18,697,704 3,872,575

DISTRIBUTIONS TO HOLDERS OF REDEEMABLE UNITSFrom net investment incomePinnacle Series (5,973,092) (5,389,115)Series F (19,714) (26,128)Series I (396,771) (516,300)

(6,389,577) (5,931,543)


Pinnacle Series 81,180,191 78,812,921Series F 399,635 189,779Series I 70,601 500,001

Reinvested distributionsPinnacle Series 5,915,006 5,363,515Series F 13,687 20,611Series I 396,771 516,300

Payments on redemptionPinnacle Series (42,557,197) (21,747,893)Series F (433,514) (726,743)Series I (3,159,850) (650,300)

41,825,330 62,278,191


Pinnacle Series 56,017,497 60,452,665Series F 36,916 (513,351)Series I (1,920,956) 279,909

54,133,457 60,219,223



479,937,409 394,666,252



redeemable units 18,697,704 3,872,575Adjustments for:

Net realized (gain) loss on non-derivative financialassets (1,243,025) (389,476)

Unrealized foreign currency translation (gain) loss – 28Change in unrealized (gain) loss on non-derivative

financial assets (11,574,213) 2,000,335Purchases of portfolio investments (475,958,810) (340,421,338)Proceeds from sale of portfolio investments 436,954,884 276,926,133Accrued investment income and other receivables (129,140) 31,879Accrued expenses and other payables 30,172 26,906

Net cash provided by (used in) operating activities (33,222,428) (57,952,958)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 79,961,929 79,348,569Amounts paid on redemption of redeemable units (45,706,974) (22,785,129)Distributions to unitholders of redeemable units (34,119) (16,441)

Net cash provided by (used in) financing activities 34,220,836 56,546,999Unrealized foreign currency translation gain (loss) – (28)Net increase (decrease) in cash 998,408 (1,405,959)Cash (bank overdraft), beginning of period 2,948,928 5,143,571

CASH (BANK OVERDRAFT), END OF PERIOD 3,947,336 3,737,584

Interest received(1) 5,901,685 5,651,606



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AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES – 98.5%Corporate Bonds – 39.1%

141,676 Alliance Pipeline LP 5.55% Dec 31, 2023 141,676 148,434846,598 Alliance Pipeline LP 7.22% Dec 31, 2025 846,599 964,371993,000 AltaGas Ltd. (Callable) 3.84% Oct 15, 2024 996,519 1,034,297342,000 AltaGas Ltd. (Callable) 4.50% Feb 15, 2044 334,137 321,459

1,110,000 AltaGas Ltd. (Callable) 5.16% Jul 13, 2043 1,173,153 1,153,530511,000 AltaGas Ltd. 3.72% Sep 28, 2021 530,155 537,362427,000 AltaGas Ltd. 4.55% Jan 17, 2019 449,914 451,090

1,255,000 AltaLink LP (Callable) 2.75% Feb 28, 2026 1,255,000 1,293,237445,000 AltaLink LP 4.45% Jul 11, 2053 471,827 522,005789,000 AltaLink LP 4.87% Nov 15, 2040 939,627 969,722326,000 AltaLink LP 5.24% May 29, 2018 350,668 349,386

1,948,000 AltaLink LP 5.38% Mar 26, 2040 2,456,941 2,538,1942,345,000 Bank of Montreal (Floating Rate) 3.40%

Apr 23, 2021 2,501,292 2,541,5403,176,000 Bank of Montreal 1.88% Mar 31, 2021 3,175,841 3,222,3636,012,000 Bank of Montreal 2.10% Oct 06, 2020 6,063,269 6,159,8513,814,000 Bank of Montreal 2.12% Mar 16, 2022 3,778,676 3,899,2551,580,000 Bank of Montreal 2.24% Dec 11, 2017 1,604,936 1,603,7733,762,000 Bank of Montreal 2.43% Mar 04, 2019 3,859,065 3,870,177

159,000 Bank of Montreal 2.84% Jun 04, 2020 167,212 167,291893,000 Bank of Nova Scotia, The 1.33% May 01, 2018 888,306 893,280

2,370,000 Bank of Nova Scotia, The 2.13% Jun 15, 2020 2,386,711 2,422,3191,580,000 Bank of Nova Scotia, The 2.40% Oct 28, 2019 1,622,493 1,626,367

973,000 Bruce Power LP 2.84% Jun 23, 2021 973,000 985,2206,157,000 Canadian Imperial Bank of Commerce 1.70%

Oct 09, 2018 6,175,880 6,212,3243,871,000 Canadian Imperial Bank of Commerce 1.85%

Jul 14, 2020 3,875,802 3,927,9354,599,000 Canadian Imperial Bank of Commerce 1.90%

Apr 26, 2021 4,596,609 4,671,4653,289,000 Canadian Imperial Bank of Commerce 2.35%

Jun 24, 2019 3,367,595 3,384,16624,000 Centra Gas Ontario Inc. 8.65% Oct 19, 2018 27,730 27,639

672,000 CU Inc. (Callable) 4.56% May 07, 2053 733,972 806,5372,088,000 CU Inc. 3.86% Nov 14, 2052 2,073,601 2,198,648

972,000 CU Inc. 4.95% Nov 18, 2050 1,145,209 1,231,209910,000 Emera Inc. 2.90% Jun 16, 2023 910,000 922,044214,000 Enbridge Gas Distribution Inc. (Callable) 3.31%

Jun 11, 2025 223,009 230,8631,817,000 Enbridge Gas Distribution Inc. 1.85%

Apr 24, 2017 1,821,392 1,826,648575,000 Enbridge Gas Distribution Inc. 4.77%

Dec 17, 2021 669,185 663,3331,887,000 Enbridge Gas Distribution Inc. 4.95%

Nov 22, 2050 2,317,929 2,344,8311,431,000 Enbridge Gas Distribution Inc. 5.16%

Dec 04, 2017 1,515,657 1,507,467118,000 Enbridge Gas Distribution Inc. 7.60%

Oct 29, 2026 161,259 164,270780,000 Enbridge Inc.ome Fund (Callable) 3.95%

Aug 19, 2024 780,000 821,690263,000 Enbridge Pipelines Inc. (Callable) 4.55%

Feb 17, 2043 276,714 281,667855,000 Enbridge Pipelines Inc. 2.93% Nov 30, 2022 861,071 885,938500,000 Enbridge Pipelines Inc. 4.49% Nov 12, 2019 540,811 543,684

2,769,000 Enbridge Pipelines Inc. 5.33% Apr 06, 2040 3,197,411 3,259,7632,050,000 Enbridge Pipelines Inc. 6.35% Nov 17, 2023 2,461,435 2,523,967

290,000 ENMAX Corporation (Callable) 3.81%Sep 05, 2024 290,000 306,344

34,000 FortisAlberta Inc. (Callable) 4.27%Mar 22, 2045 37,210 38,776

394,000 FortisAlberta Inc. 4.54% Oct 18, 2041 446,492 462,215415,000 FortisAlberta Inc. 4.80% Oct 27, 2050 493,065 510,604

FaceValue ($) Issuer

AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES (cont’d)Corporate Bonds (cont’d)

390,000 FortisAlberta Inc. 5.37% Oct 30, 2039 485,346 504,312839,000 FortisBC Energy Inc. 5.90% Feb 26, 2035 1,073,353 1,120,884685,000 FortisBC Energy Inc. 6.50% May 01, 2034 954,274 964,376750,000 FortisBC Energy Inc. 6.95% Sep 21, 2029 1,057,748 1,062,231402,000 FortisBC Inc. 5.00% Nov 24, 2050 489,919 505,221506,000 Hydro One Inc. 4.39% Sep 26, 2041 569,149 586,502737,000 Hydro One Inc. 5.00% Oct 19, 2046 913,966 946,467425,000 Inter Pipeline Corridor Inc. 4.90% Feb 03, 2020 480,913 467,648

2,486,000 Inter Pipeline Ltd. (Callable) 4.64%Nov 30, 2043 2,462,960 2,527,986

500,000 Inter Pipeline Ltd. 3.78% May 30, 2022 529,500 533,194929,000 Lower Mattagami Energy LP 2.23%

Oct 23, 2017 939,442 940,387827,000 Lower Mattagami Energy LP 4.18%

Feb 23, 2046 888,688 930,350860,000 Lower Mattagami Energy LP 4.33%

May 18, 2021 977,116 967,91346,000 Lower Mattagami Energy LP 4.94%

Sep 21, 2043 56,201 57,7821 New Brunswick F-M Project Company Inc.

6.47% Nov 30, 2027 1 11,789,000 Nova Scotia Power Inc. 5.61% Jun 15, 2040 2,316,903 2,361,8588,068,000 Royal Bank of Canada 1.40% Apr 26, 2019 8,065,418 8,097,6886,966,000 Royal Bank of Canada 1.92% Jul 17, 2020 6,980,252 7,067,9374,994,000 Royal Bank of Canada 1.97% Mar 02, 2022 4,917,102 5,051,926

10,125,000 Royal Bank of Canada 2.03% Mar 15, 2021 10,139,443 10,318,8582,273,000 Royal Bank of Canada 2.26% Mar 12, 2018 2,311,427 2,310,9511,980,000 Royal Bank of Canada 2.35% Dec 09, 2019 2,023,207 2,038,0236,023,000 Royal Bank of Canada 2.77% Dec 11, 2018 6,242,466 6,225,687

842,000 Toronto Hydro Corporation (Callable) 2.52%May 25, 2026 841,865 855,399

1,102,000 Toronto-Dominion Bank, The 1.69%Apr 02, 2020 1,094,722 1,110,992

5,744,000 Toronto-Dominion Bank, The 2.05%Mar 08, 2021 5,759,852 5,869,542



2,072,000 Toronto-Dominion Bank, The 2.56%Jun 24, 2020 2,133,356 2,157,007

4,191,000 Toronto-Dominion Bank, The 2.62%Dec 22, 2021 4,291,330 4,399,542

416,000 TransCanada PipeLines Ltd. (Callable) 3.30%Apr 17, 2025 425,689 436,851

3,270,000 TransCanada PipeLines Ltd. (Callable) 3.69%Apr 19, 2023 3,474,015 3,542,353

1,308,000 TransCanada PipeLines Ltd. (Callable) 4.35%Dec 06, 2045 1,333,521 1,365,629

380,000 TransCanada PipeLines Ltd. 11.80%Nov 20, 2020 614,612 528,577

1,632,000 TransCanada PipeLines Ltd. 3.65%Nov 15, 2021 1,727,556 1,760,706

1,909,000 TransCanada PipeLines Ltd. 4.55%Nov 15, 2041 1,986,291 2,070,909

1,480,000 TransCanada PipeLines Ltd. 6.28%May 26, 2028 1,821,406 1,830,522

500,000 TransCanada PipeLines Ltd. 7.31%Jan 15, 2027 693,000 650,421

1,130,000 TransCanada PipeLines Ltd. 7.90%Apr 15, 2027 1,512,620 1,529,782

1,800,000 TransCanada PipeLines Ltd. 8.21%Apr 25, 2030 2,611,755 2,575,316


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AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES (cont’d)Corporate Bonds (cont’d)3,580,000 TransCanada PipeLines Ltd. 8.29%

Feb 05, 2026 5,158,854 4,949,882837,000 Union Gas Ltd. (Callable) 2.81% Mar 01, 2026 837,000 859,98052,000 Union Gas Ltd. (Callable) 4.20% Dec 02, 2043 56,628 58,32394,000 Union Gas Ltd. 4.85% Apr 25, 2022 106,474 109,126

1,777,000 Union Gas Ltd. 5.20% Jul 23, 2040 2,212,241 2,253,412340,000 Union Gas Ltd. 8.65% Nov 10, 2025 496,747 501,255

1,223,000 Westcoast Energy Inc. (Callable) 3.77%Sep 08, 2025 1,229,866 1,283,904

1,691,000 Westcoast Energy Inc. 3.88% Oct 28, 2021 1,798,871 1,816,6331,226,000 Westcoast Energy Inc. 4.57% Jul 02, 2020 1,331,089 1,335,505

867,000 Westcoast Energy Inc. 5.60% Jan 16, 2019 946,441 943,130160,000 Westcoast Energy Inc. 6.75% Dec 15, 2027 193,878 202,990814,000 Westcoast Energy Inc. 7.15% Mar 20, 2031 1,066,155 1,057,099

2,139,000 Westcoast Energy Inc. 7.30% Dec 18, 2026 2,904,871 2,796,529159,000 Westcoast Energy Inc. 8.50% Sep 04, 2018 180,107 180,493450,000 Westcoast Energy Inc. 8.85% Jul 21, 2025 621,142 628,898100,000 Westcoast Energy Inc. 9.90% Jan 10, 2020 123,885 125,045

185,511,245 187,878,709

Federal Bonds – 25.3%16,899,000 Canada Housing Trust No. 1 1.25%

Dec 15, 2020 16,869,613 17,112,9786,144,000 Canada Housing Trust No. 1 1.25%

Jun 15, 2021 6,194,033 6,213,7129,793,000 Canada Housing Trust No. 1 1.95%

Jun 15, 2019 10,147,373 10,115,60921,928,000 Canada Housing Trust No. 1 2.35%


Dec 15, 2018 2,720,013 2,669,99111,293,000 Government of Canada 0.25% May 01, 2018 11,232,632 11,238,33514,296,000 Government of Canada 0.75% Mar 01, 2021 14,321,938 14,414,70812,975,000 Government of Canada 1.50% Jun 01, 2026 13,125,673 13,510,03316,604,000 Government of Canada 3.50% Dec 01, 2045 22,143,566 23,424,093

119,603,377 121,475,213

Provincial Bonds – 34.1%4,102,000 Province of Alberta 1.35% Sep 01, 2021 4,099,375 4,111,3614,762,000 Province of Alberta 2.35% Jun 01, 2025 4,791,889 4,918,128

615,000 Province of Alberta 2.55% Dec 15, 2022 642,872 652,657895,000 Province of Alberta 2.90% Sep 20, 2029 920,293 931,987901,000 Province of Alberta 3.50% Jun 01, 2031 954,168 991,574

1,345,000 Province of Alberta 3.90% Dec 01, 2033 1,510,405 1,545,3592,615,000 Province of British Columbia 2.25%

Mar 01, 2019 2,677,743 2,709,701670,000 Province of British Columbia 2.85%

Jun 18, 2025 715,165 731,0893,005,000 Province of British Columbia 3.20%

Jun 18, 2044 3,149,368 3,314,2602,187,000 Province of British Columbia 3.25%

Dec 18, 2021 2,385,853 2,419,3051,508,000 Province of British Columbia 4.30%

Jun 18, 2042 1,852,243 1,961,6852,208,000 Province of British Columbia 6.35%

Jun 18, 2031 3,160,519 3,292,0711,013,000 Province of Manitoba 2.45% Jun 02, 2025 1,030,944 1,053,5731,173,000 Province of Manitoba 3.25% Sep 05, 2029 1,206,632 1,265,4322,120,000 Province of Manitoba 3.30% Jun 02, 2024 2,209,172 2,352,734

3,000 Province of Manitoba 4.40% Mar 05, 2042 3,633 3,7811,211,000 Province of Manitoba 4.40% Sep 05, 2025 1,393,418 1,447,882

854,000 Province of Manitoba 4.60% Mar 05, 2038 1,038,108 1,082,925202,000 Province of Manitoba 4.70% Mar 05, 2050 264,357 276,848

4,450,000 Province of Ontario 2.10% Sep 08, 2018 4,581,768 4,569,513


AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES (cont’d)Provincial Bonds (cont’d)7,521,000 Province of Ontario 2.40% Jun 02, 2026 7,630,895 7,818,243

21,458,000 Province of Ontario 2.60% Jun 02, 2025 21,792,345 22,816,6773,950,000 Province of Ontario 2.80% Jun 02, 2048 3,943,859 4,006,807

13,848,000 Province of Ontario 2.85% Jun 02, 2023 14,736,696 15,035,24416,174,000 Province of Ontario 2.90% Dec 02, 2046 15,689,367 16,706,18010,127,000 Province of Ontario 3.15% Jun 02, 2022 10,961,898 11,141,9162,531,000 Province of Ontario 3.45% Jun 02, 2045 2,746,126 2,883,773

10,750,000 Province of Ontario 3.50% Jun 02, 2024 11,778,561 12,191,5443,788,000 Province of Ontario 3.50% Jun 02, 2043 4,081,520 4,319,8927,580,000 Province of Ontario 4.00% Jun 02, 2021 8,536,821 8,581,0839,585,000 Province of Ontario 4.20% Jun 02, 2020 10,756,945 10,715,739

967,000 Province of Ontario 4.65% Jun 02, 2041 1,216,075 1,295,3291,775,000 Province of Ontario 4.70% Jun 02, 2037 2,211,398 2,329,5091,172,000 Province of Ontario 6.20% Jun 02, 2031 1,656,333 1,710,346

323,000 Province of Quebec 3.50% Dec 01, 2045 350,988 368,191544,000 Province of Quebec 4.25% Dec 01, 2021 621,585 627,028949,000 Province of Saskatchewan 5.80%

Sep 05, 2033 1,334,254 1,340,008

158,633,591 163,519,374


OTHER ASSETS, LESS LIABILITIES – 1.5% 7,064,113

NET ASSETS – 100.0% 479,937,409


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The Fund’s investment objective is to preserve investment capitalwhile seeking to achieve increased income by investing primarily in aportfolio of Canadian government and corporate bonds, preferredshares of Canadian corporations and loans of supranationalorganizations.



The table below summarizes the Fund’s exposure to interest rate riskby the remaining term to maturity (earlier of maturity date or interestreset date) of the Fund’s portfolio, excluding underlying funds,preferred shares, cash and overdrafts, as applicable.



($)

Less than 1 year 1,826,648 –1-3 years 96,152,765 111,048,4163-5 years 115,293,304 92,103,3185-10 years 140,932,799 117,534,469> 10 years 118,667,780 100,331,584

472,873,296 421,017,787

As at June 30, 2016, had the prevailing interest rates increased ordecreased by 0.25%, assuming a parallel shift in the yield curve and allother variables held constant, net assets attributable to holders ofredeemable units would have decreased or increased, respectively, by$9,135,752 or approximately 1.9% (December 31, 2015 – $7,069,928 orapproximately 1.7%).

ii) Currency risk


iii) Price risk

The Fund did not have significant price risk exposure to equities,underlying funds, derivatives or commodities, if applicable, as atJune 30, 2016 and December 31, 2015.

iv) Credit risk


June 30, 2016 December 31, 2015

Credit ratings

Percentage oftotal credit

ratedinstruments

(%)


(%)


ratedinstruments

(%)


(%)

AAA 30.5 30.0 37.8 37.4AA 20.4 20.2 39.4 39.0A 40.4 39.6 20.4 20.2BBB 8.7 8.7 2.4 2.3

100.0 98.5 100.0 98.9




June 30, 2016 December 31, 2015

Corporate Bonds 39.1 37.7Federal Bonds 25.3 35.0Provincial Bonds 34.1 26.2




($)Level 2

($)Level 3

($)Total($)

Bonds and debentures – 472,873,296 – 472,873,296

– 472,873,296 – 472,873,296


($)Level 2

($)Level 3

($)Total($)

Bonds and debentures – 421,017,787 – 421,017,787

– 421,017,787 – 421,017,787










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Scotia Private High Yield Income Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 1,163,044,170 1,096,633,503Unrealized gain on currency forward contracts 2,321,637 15,919

Cash 176,376 324,688Subscriptions receivable 1,269,886 986,898Accrued investment income and other 13,574,640 15,339,751

1,180,386,709 1,113,300,759

LIABILITIESCurrent liabilitiesManagement fee payable 134,738 –Redemptions payable 2,366,566 308,890Accrued expenses 46,255 204Distributions payable 1,227,110 –Unrealized loss on currency forward contracts – 866,398

3,774,669 1,175,492

Net assets attributable to holders of redeemable units 1,176,612,040 1,112,125,267

NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS PER SERIES

Pinnacle Series 200,987,491 174,547,341Series F 17,030,473 16,398,227Series I 500,446,098 466,871,812Series M 458,147,978 454,307,887

NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS PER UNIT

Pinnacle Series 8.92 8.91Series F 9.27 9.26Series I 8.95 8.94Series M 8.97 8.96



Dividends 2,507,138 1,773,362Interest for distribution purposes 29,091,097 27,921,523Net realized gain (loss) on non-derivative financial assets 1,283,507 (3,899,915)Net realized gain (loss) on currency forward contracts (2,862,780) (6,678,927)Change in unrealized gain (loss) on non-derivative financial

assets 9,806,140 23,882,342Change in unrealized gain (loss) on currency forward

contracts 3,172,116 2,244,076

Net gain (loss) on investments 42,997,218 45,242,461Securities lending – 300Net realized and unrealized foreign currency translation

gain(loss) (5,464,319) 455,583Other income 61 201


EXPENSESManagement fees (note 5) 736,897 498,244Fixed administration fees (note 6) 243,972 205,764Independent Review Committee fees 563 681Interest expense and bank overdraft charges 452 431Foreign withholding taxes/tax reclaims 425,072 266,004Other fund costs 196 –Harmonized Sales Tax/Goods and Services Tax 91,845 68,509Transaction costs 5,831 3,890

Total expenses 1,504,828 1,043,523



Pinnacle Series 6,263,599 7,285,283Series F 452,805 710,564Series I 15,837,178 22,662,776Series M 13,474,550 13,996,399



WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESPinnacle Series 20,972,462 16,122,325Series F 1,784,618 1,594,253Series I 54,008,086 50,383,079Series M 51,120,838 30,289,053


The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Guardian Capital LP

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Scotia Private High Yield Income Pool (Unaudited – Continued)


NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS, BEGINNING OF PERIOD


1,112,125,267 910,501,318

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS FROMOPERATIONS


36,028,132 44,655,022


Pinnacle Series (5,629,679) (5,077,879)Series F (419,640) (442,518)Series I (14,615,069) (15,467,898)Series M (12,851,373) (8,885,613)

(33,515,761) (29,873,908)


Pinnacle Series 32,632,459 32,279,582Series F 886,904 1,438,378Series I 21,206,258 50,628,584Series M 52,188,195 46,225,890

Reinvested distributionsPinnacle Series 5,572,573 5,060,113Series F 105,789 95,186Series I 14,615,069 15,467,870Series M 10,442,367 6,792,987

Payments on redemptionPinnacle Series (12,398,802) (7,007,308)Series F (393,612) (345,483)Series I (3,469,150) (92,044,876)Series M (59,413,648) (42,723,325)

61,974,402 15,867,598

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLETO HOLDERS OF REDEEMABLE UNITS

Pinnacle Series 26,440,150 32,539,791Series F 632,246 1,456,127Series I 33,574,286 (18,753,544)Series M 3,840,091 15,406,338

64,486,773 30,648,712

NET ASSETS ATTRIBUTABLE TO HOLDERS OFREDEEMABLE UNITS, END OF PERIOD


1,176,612,040 941,150,030


CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders

of redeemable units 36,028,132 44,655,022Adjustments for:

Net realized (gain) loss on non-derivative financialassets (1,283,507) 3,899,915

Unrealized foreign currency translation (gain) loss 970,154 2,870,675Change in unrealized (gain) loss on non-derivative

financial assets (9,806,140) (23,882,342)Change in unrealized (gain) loss on currency forward

contracts (3,172,116) (2,244,076)Purchases of portfolio investments (1,029,320,481) (516,469,416)Proceeds from sale of portfolio investments 973,993,629 508,369,557Transaction costs 5,831 3,890Accrued investment income and other receivables 1,765,111 (2,825,634)Accrued expenses and other payables 180,789 138,322

Net cash provided by (used in) operating activities (30,638,598) 14,515,913

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 106,630,828 130,284,118Amounts paid on redemption of redeemable units (73,617,536) (141,782,530)Distributions to unitholders of redeemable units (1,552,852) (1,262,875)

Net cash provided by (used in) financing activities 31,460,440 (12,761,287)Unrealized foreign currency translation gain (loss) (970,154) (2,870,675)Net increase (decrease) in cash 821,842 1,754,626Cash (bank overdraft), beginning of period 324,688 13,172

CASH (BANK OVERDRAFT), END OF PERIOD 176,376 (1,102,877)

Interest paid(1) 452 431Interest received(1) 29,997,029 27,018,518Dividends received, net of withholding taxes(1) 2,358,079 1,733,793



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AverageCost ($)

CarryingValue ($)


1,400,000 ACCO Brands Corporation (Callable) 6.75%Apr 30, 2017 1,383,755 1,923,913

15,250,000 ADT Corporation, The 4.13% Jun 15, 2023 18,574,969 18,705,51013,500,000 AGT Food & Ingredients Inc. (Callable)

9.00% Jul 11, 2016 13,525,625 13,978,1258,070,000 AK Steel Corporation (Callable) 7.63%

Jul 11, 2016 8,080,863 9,969,4635,500,000 AK Steel Corporation (Callable) 7.63%

Oct 01, 2017 5,971,216 6,539,2592,000,000 AK Steel Corporation (Callable) 8.38%

Apr 01, 2017 1,783,330 2,457,2855,000,000 Ally Financial Inc. 4.63% Mar 30, 2025 6,696,185 6,407,269

12,300,000 Amkor Technology Inc. (Callable) 6.38%Oct 01, 2016 15,136,653 15,443,461

13,875,000 Armstrong Energy Inc. (Callable) 11.75%Dec 15, 2016 13,681,456 7,775,862

18,500,000 Athabasca Oil Corporation (Callable)7.50% Jul 11, 2016 18,382,500 18,191,667

10,000,000 Bank of Montreal 2.24% Dec 11, 2017 10,060,400 10,150,46111,000,000 Bank of Nova Scotia, The (Callable) 3.04%

Oct 18, 2019 10,837,600 11,332,9891,300,000 Bank of Nova Scotia, The 2.40%

Oct 28, 2019 1,299,701 1,338,1506,750,000 Banro Corporation (Callable) 10.00%

Jul 11, 2016 6,747,976 7,284,6281,000,000 Baytex Energy Corporation (Callable)

5.13% Jun 01, 2017 1,098,378 1,090,5302,000,000 Bombardier Inc., Class B 7.35%

Dec 22, 2026 2,025,000 1,708,3331,850,000 Bristow Group Inc. (Callable) 6.25%

Oct 15, 2017 1,814,757 1,826,7004,000,000 Cameco Corporation (Callable) 4.19%

Mar 24, 2024 3,998,400 4,225,6184,500,000 Canadian Energy Services & Technology

Corporation (Callable) 7.38% Apr 17, 2017 4,500,000 4,269,37510,000,000 Canadian Imperial Bank of Commerce

2.22% Mar 07, 2018 9,673,000 10,162,87912,000,000 Cascades Inc. (Callable) 5.50%

Jul 15, 2017 11,955,000 11,991,0003,250,000 Cascades Inc. (Callable) 5.50%

Jul 15, 2017 4,152,973 4,091,1064,350,000 CCO Holdings LLC / CCO Holdings Capital

Corporation (Callable) 5.25% Sep 30, 2017 5,085,882 5,788,82311,850,000 CenturyLink Inc. 5.80% Mar 15, 2022 13,754,113 14,776,4543,360,000 CNG Holdings Inc. (Callable) 9.38%

Jul 11, 2016 3,073,925 2,141,9701,250,000 Concordia Healthcare Corporation

(Callable) 7.00% Apr 15, 2018 1,573,119 1,369,5056,250,000 Concordia Healthcare Corporation

(Callable) 9.50% Dec 15, 2018 7,840,489 7,497,7594,850,000 Cott Beverages Inc. (Callable) 6.75%

Jan 01, 2017 5,530,145 6,623,1102,500,000 CSC Holdings LLC 5.25% Jun 01, 2024 2,914,412 2,956,9552,186,511 Data & Audio-Visual Enterprises Holdings

Inc. (Callable) 15.00% Jul 11, 2016* 1,904,607 –2,000,000 DHX Media Ltd. (Callable) 5.88%

Dec 02, 2017 1,950,000 1,997,5005,000,000 DISH DBS Corporation 4.25% Apr 01, 2018 5,013,554 6,633,7891,000,000 DISH DBS Corporation 4.63% Jul 15, 2017 1,178,476 1,318,0728,800,000 DISH DBS Corporation 5.88%

Nov 15, 2024 11,265,116 10,661,5829,500,000 DPL Inc. (Callable) 7.25% Jul 15, 2021 10,495,991 11,909,1851,500,000 Fairfax Financial Holdings Ltd. 6.40%

May 25, 2021 1,502,020 1,693,861


AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES (cont’d)Corporate Bonds (cont’d)13,117,000 Fairfax Financial Holdings Ltd. 7.38%

Apr 15, 2018 15,750,406 18,426,3832,000,000 Fairfax Financial Holdings Ltd. 7.75%

Jul 15, 2037 1,943,339 2,992,7384,015,000 First Quantum Minerals Ltd. (Callable)

6.75% Feb 15, 2017 3,695,481 4,300,5244,015,000 First Quantum Minerals Ltd. (Callable)

7.00% Feb 15, 2018 3,695,481 4,170,5987,300,000 Fly Leasing Ltd. (Callable) 6.75%

Dec 15, 2016 8,251,049 9,519,9737,500,000 FMG Resources August 2006 Pty Ltd.

(Callable) 9.75% Mar 01, 2018 9,178,769 10,678,7825,000,000 Ford Credit Canada Ltd. 2.63%

Nov 21, 2016 5,044,905 5,019,7563,000,000 Ford Credit Canada Ltd. 2.94%

Feb 19, 2019 3,052,500 3,066,6348,000,000 Ford Credit Canada Ltd. 4.88%

Feb 08, 2017 8,592,800 8,150,6404,500,000 Frontier Communications Corporation

(Callable) 11.00% Jun 15, 2025 6,064,731 6,039,6092,100,000 Frontier Communications Corporation

8.75% Apr 15, 2022 2,285,506 2,760,6945,989,000 GFL Environmental Inc. (Callable) 7.50%

Jul 11, 2016 5,959,665 6,075,0924,300,000 GFL Environmental Inc. (Callable) 7.88%

Apr 01, 2017 5,458,492 5,648,0916,500,000 Goldman Sachs Group Inc., The 3.38%

Feb 01, 2018 6,491,420 6,676,82714,435,000 Golf Town Canada Inc. (Callable) 10.50%

Jul 11, 2016 14,179,375 6,498,1916,000,000 Great-West Lifeco Finance Delaware LP

(Callable) 5.69% Jun 21, 2017 6,567,600 5,870,7924,950,000 Harvest Operations Corporation 2.33%

Apr 14, 2021 6,201,627 6,887,8157,706,000 Hertz Corp, The (Callable) 6.25%

Oct 15, 2017 9,079,964 10,299,1055,000,000 HSBC Bank of Canada 2.94% Jan 14, 2020 4,895,100 5,168,335

14,775,000 HudBay Minerals Inc. (Callable) 9.50%Oct 01, 2016 15,795,596 16,112,583

14,700,000 IAMGOLD Corporation (Callable) 6.75%Oct 01, 2016 14,542,822 16,982,176

7,000,000 Iron Mountain Canada Operations ULC(Callable) 6.13% Aug 15, 2017 7,015,000 7,242,083

13,500,000 JBS USA LLC / JBS USA Finance Inc.(Callable) 5.75% Jun 15, 2020 16,094,743 16,745,864

1,000,000 Kellogg Company 3.25% Apr 01, 2026 1,352,889 1,338,3302,400,000 Kinder Morgan Inc. (Callable) 4.30%

Mar 01, 2025 2,845,209 3,194,967900,000 Kinder Morgan, Inc. 7.25% Jun 01, 2018 919,889 1,264,183

5,000,000 Loblaw Cos Ltd. 3.75% Mar 12, 2019 5,243,650 5,273,7296,000,000 Lundin Mining Corporation (Callable)

7.88% Nov 01, 2018 7,570,868 8,018,7956,425,000 MEG Energy Corporation (Callable) 6.38%

Jul 30, 2017 6,537,382 6,175,0061,500,000 MEG Energy Corporation (Callable) 7.00%

Sep 30, 2018 1,637,685 1,480,4688,500,000 Methanex Corporation 5.25%

Mar 01, 2022 10,469,543 11,313,6941,500,000 MGM Resorts International 6.63%

Dec 15, 2021 1,727,041 2,108,6327,500,000 Midcontinent Express Pipeline LLC 6.70%

Sep 15, 2019 10,263,049 9,286,949


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SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2016


AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES (cont’d)Corporate Bonds (cont’d)17,125,000 Millar Western Forest Products Ltd.

(Callable) 8.50% Jul 11, 2016 15,248,475 10,141,2039,000,000 Morgan Stanley 1.49% Jan 24, 2019 11,926,303 11,599,953

13,000,000 Morgan Stanley 2.50% Jan 24, 2019 17,523,065 17,124,5929,000,000 Morgan Stanley 4.90% Feb 23, 2017 9,545,000 9,201,9742,000,000 Navistar International Corporation

(Callable) 8.25% Jul 11, 2016 2,162,940 1,887,4918,000,000 New Gold Inc. (Callable) 6.25%

Nov 15, 2017 9,020,258 10,173,9676,650,000 Newalta Corporation (Callable) 5.88%

Apr 01, 2017 6,658,000 4,951,4792,500,000 Newalta Corporation (Callable) 7.75%

Jul 11, 2016 2,500,000 2,147,9165,289,000 NGPL PipeCo LLC 7.12% Dec 15, 2017 6,191,741 7,207,5436,000,000 Norbord Inc. 6.25% Apr 15, 2023 7,506,948 7,979,9633,947,000 NRG Energy Inc. (Callable) 8.25%

Jul 11, 2016 3,919,854 5,298,455827,000 NRG Energy Inc. 7.63% Jan 15, 2018 819,447 1,151,646

21,500,000 NRL Energy Investments Ltd. (Callable)8.25% Jul 11, 2016 18,918,125 2,983,125

3,000,000 Paramount Resources Ltd. (Callable) 6.88%Jun 30, 2018 3,646,031 3,038,599

11,500,000 Paramount Resources Ltd. (Callable) 7.63%Jul 11, 2016 11,532,716 10,148,750

3,800,000 Parkland Fuel Corporation (Callable) 5.50%May 28, 2017 3,762,000 3,857,000

500,000 Parkland Fuel Corporation (Callable) 6.00%Nov 21, 2017 500,625 509,792

7,000,000 PBF Holding Co. LLC (Callable) 8.25%Jul 11, 2016 6,874,390 9,430,737

6,747,261 Postmedia Network Inc. (Callable) 8.25%Jul 11, 2016 6,777,316 5,861,683

9,000,000 Precision Drilling Corporation (Callable)6.50% Jul 11, 2016 9,173,125 8,411,250

2,447,000 Quebecor Media Inc. (Callable) 7.38%Jul 11, 2016 2,495,940 2,539,762

6,750,000 Quebecor Media Inc. 6.63% Jan 15, 2023 6,753,938 7,022,81311,500,000 Reynolds Group Issuer LLC (Callable)

5.75% Jul 11, 2016 13,480,310 15,420,2654,290,000 RioCan Real Estate Investment Trust 3.72%

Dec 13, 2021 4,277,988 4,610,6646,250,000 River Cree Enterprises LP (Callable) 11.00%

Jan 20, 2018 6,190,918 6,046,87510,000,000 Rockies Express Pipeline LLC 5.63%

Apr 15, 2020 13,056,521 12,945,0797,115,000 Rockies Express Pipeline LLC 6.00%

Jan 15, 2019 9,407,022 9,483,9045,000,000 Royal Bank of Canada (Callable) 2.99%

Dec 06, 2019 4,821,650 5,150,0685,350,000 Sabine Pass LNG LP 7.50% Nov 30, 2016 7,186,483 7,058,0935,525,000 Savanna Energy Services Corporation

(Callable) 7.00% Jul 11, 2016 5,510,135 4,815,9578,000,000 Shaw Communications Inc. (Callable)

4.35% Oct 31, 2023 8,426,000 8,721,1544,434,329 Sherritt International Corporation (Callable)

7.50% Sep 24, 2019 4,369,946 2,326,92610,250,000 Sherritt International Corporation (Callable)

7.88% Oct 11, 2018 9,966,250 5,218,9575,153,211 Sherritt International Corporation (Callable)

8.00% Nov 15, 2017 5,295,049 2,969,5382,500,000 Smithfield Foods Inc. (Callable) 6.63%

Aug 15, 2017 2,513,998 3,408,150

FaceValue ($)/Number ofShares Issuer

AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES (cont’d)Corporate Bonds (cont’d)

4,300,000 Sobeys Inc. 3.52% Aug 08, 2018 4,443,577 4,406,3066,000,000 Southern Pacific Resource Corporation

(Callable) 8.75% Jul 11, 2016* 5,540,250 –5,000,000 Sprint Communications Inc. 6.00%

Dec 01, 2016 6,734,481 6,515,5788,750,000 Sprint Communications Inc. 9.00%

Nov 15, 2018 12,689,384 12,085,67114,000,000 Sprint Corporation 7.25% Sep 15, 2021 17,201,000 15,472,4687,500,000 Superior Plus LP (Callable) 6.50%

Dec 09, 2017 7,500,000 7,518,75010,500,000 Taseko Mines Ltd. (Callable) 7.75%

Jul 11, 2016 9,583,374 8,188,6848,250,000 T-Mobile US, Inc. (Callable) 6.13%

Jan 15, 2018 11,052,850 11,116,3994,000,000 T-Mobile US, Inc. (Callable) 6.50%

Jan 15, 2019 5,367,130 5,448,2244,500,000 T-Mobile US, Inc. (Callable) 6.63%

Apr 01, 2018 6,097,804 6,162,10411,000,000 Transcontinental Inc. 3.90% May 13, 2019 11,100,000 11,223,6812,320,000 Trevali Mining Corporation (Callable)

12.50% May 30, 2018 2,254,122 2,322,9007,000,000 Trilogy Energy Corporation (Callable)

7.25% Jul 11, 2016 7,085,000 6,183,335894,000 United States Steel Corporation 7.38%

Apr 01, 2020 967,337 1,093,0836,105,000 Viacom Inc. (Callable) 2.75%

Nov 15, 2019 8,128,709 8,035,69015,250,000 Wells Fargo Canada Corporation 3.04%

Jan 29, 2021 15,417,598 16,185,1915,500,000 Wynn Las Vegas LLC (Callable) 4.25%

Feb 28, 2023 5,766,958 6,488,855

867,753,243 840,312,428

Federal Bonds – 5.3%10,000,000 Canada Housing Trust No. 1 1.85%


Jun 15, 2024 10,543,700 11,140,62910,000,000 Government of Canada 0.25%

May 01, 2017 9,967,730 9,978,70510,000,000 Government of Canada 1.25%

Sep 01, 2018 10,171,400 10,160,52210,000,000 Government of Canada 1.75%

Mar 01, 2019 10,037,200 10,329,90610,000,000 Government of Canada 2.50%

Jun 01, 2024 10,845,454 11,262,308

61,663,804 62,930,493

Provincial Bonds – 0.9%10,000,000 Province of Ontario 3.20% Sep 08, 2016 10,486,300 10,045,302

TOTAL BONDS AND DEBENTURES 939,903,347 913,288,223

EQUITIES – 0.9%Energy – 0.9%

520,000 Canadian International Oil CorporationWarrants May 2, 2016* – –

309,158 Connacher Oil and Gas Ltd.* 3,312,451 –735,926 Lone Pine Resources Canada Ltd.* 5,967,216 441,556735,926 Lone Pine Resources Inc.* – 953282,900 Tourmaline Oil Corporation 12,501,483 9,621,429

21,781,150 10,063,938


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SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2016Number ofShares/Number ofUnits/FaceValue ($) Issuer

AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Materials – 0.0%

372,000 Banro Corporation Warrants Mar 2, 2017 – –90,163 Hycroft Mining Corporation* 13,443,760 –

285,824 Trevali Mining Corporation WarrantsSep 30, 2020 – 121,707

13,443,760 121,707

Telecommunication Services – 0.0%20,700 Data & Audio-Visual Enterprises Holdings

Inc. Warrants* – –48,300 Data & Audio-Visual Enterprises Holdings

lnc., Warrants Sep 25, 2018* – –

– –

INDEX BASED EXCHANGE-TRADED FUNDS – 9.3%480,000 iShares iBoxx $ High Yield Corporate Bond

Fund ETF 52,501,811 52,637,4651,241,100 SPDR Barclays High Yield Bond ETF 51,547,404 57,351,235

104,049,215 109,988,700

MONEY MARKET INSTRUMENTS – 11.0%Commercial Paper – 0.3%

2,475,000 Province of Quebec 0.00% Jul 20, 2016 3,193,159 3,202,974

Promissory Notes – 2.3%11,715,000 Province of Alberta 0.00% Jul 20, 2016 15,185,180 15,160,4119,200,000 Province of British Columbia 0.46%

Aug 03, 2016 12,036,410 11,903,442

27,221,590 27,063,853

Provincial Bonds – 0.1%600,000 Province of Ontario 0.00% Jul 21, 2016 785,980 776,490


AverageCost ($)

CarryingValue ($)

MONEY MARKET INSTRUMENTS (cont’d)Treasury Bills – 8.3%25,065,000 Government of Canada 0.00%

Aug 11, 2016 25,031,466 25,050,660750,000 Government of Canada 0.00%

Jul 04, 2016 749,884 749,968410,000 Government of Canada 0.00%

Aug 25, 2016 409,588 409,695650,000 Government of Canada 0.00%

Jul 05, 2016 649,875 649,962220,000 Government of Canada 0.00%

Jul 14, 2016 219,839 219,96227,045,000 Government of Canada 0.00%

Jul 28, 2016 27,007,774 27,034,25724,454,000 Government of Canada 0.00%

Sep 08, 2016 24,425,869 24,430,89810,000,000 Province of Ontario 0.00% Jul 20, 2016 9,986,500 9,996,62510,000,000 Province of Quebec 0.00% Jul 22, 2016 9,986,100 9,996,258

98,466,895 98,538,285

TOTAL INVESTMENT PORTFOLIO 1,208,845,096 1,163,044,170

Unrealized Gain (Loss) on Derivatives – 0.2% 2,321,637OTHER ASSETS, LESS LIABILITIES – 1.0% 11,246,233

NET ASSETS – 100.0% 1,176,612,040

* This security is not actively traded and considered illiquid.


SCHEDULE OF DERIVATIVE INSTRUMENTS

Unrealized Gain (Loss) on Currency Forward Contracts

CounterpartyCreditRating

SettlementDate

Currency To BeReceived

ContractualAmount

Currency To BeDelivered

ContractualAmount

ContractPrice

MarketPrice

Canadian ($)Appreciation/(Depreciation)

Bank of Nova Scotia A+ Jul. 26, 2016 Canadian Dollar 90,627,380 US Dollar 69,340,000 0.765 0.774 988,701

Bank of Nova Scotia A+ Jul. 27, 2016 Canadian Dollar 113,521,950 US Dollar 87,000,000 0.766 0.774 1,059,277

Bank of Nova Scotia A+ Jul. 27, 2016 Canadian Dollar 69,561,008 US Dollar 53,600,000 0.771 0.774 273,659

2,321,637


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The Fund’s objective is to achieve superior long term returns and toprovide income as well as capital growth by investing primarily in highyield, lower rated Canadian corporate bonds, preferred shares andshort term money market securities.






($)

Less than 1 year 242,039,989 123,387,5211-3 years 300,477,308 257,786,5093-5 years 223,849,258 211,021,4905-10 years 271,802,199 206,150,392> 10 years 4,701,071 4,734,162

1,042,869,825 803,080,074

As at June 30, 2016, had the prevailing interest rates increased ordecreased by 0.25%, assuming a parallel shift in the yield curve and allother variables held constant, net assets attributable to holders ofredeemable units would have decreased or increased, respectively, by$7,235,009 or approximately 0.6% (December 31, 2015 – $6,560,999 orapproximately 0.6%).

ii) Currency risk

The tables below indicate the currencies to which the Fund hadsignificant exposure, net of the impact of currency forward contractsand currency spot contracts, as applicable, based on the monetary andnon-monetary assets and liabilities of the Fund. The tables alsoillustrate the potential impact on the Fund if the functional currencyof the Fund had strengthened or weakened by 10% in relation to eachof the other currencies, with all other variables held constant.

June 30, 2016

Currency

Net currencyexposure

($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 414,707,404 35.2 41,470,740 3.5

414,707,404 35.2 41,470,740 3.5

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 392,391,225 35.3 39,239,123 3.5

392,391,225 35.3 39,239,123 3.5

iii) Price risk

Price risk is the risk that the carrying value of financial instrumentswill fluctuate as a result of changes in market prices (other than thosearising from interest rate risk or currency risk) caused by factorsspecific to a security, its issuer or all factors affecting a market or amarket segment. Exposure to price risk is mainly in equities,underlying funds, derivatives and commodities, as applicable. As atJune 30, 2016, approximately 10.2% (December 31, 2015 – 7.9%) of theFund’s net assets were exposed to price risk. If prices of theseinstruments had decreased or increased by 10%, with all othervariables held constant, net assets of the Fund would have decreasedor increased, respectively, by approximately $12,017,434(December 31, 2015 – $8,761,088). In practice, actual results maydiffer from this sensitivity analysis and the difference could bematerial.

iv) Credit risk

The table below summarizes the credit ratings of the bonds anddebentures, money market instruments, and preferred shares held bythe Fund, as applicable.

June 30, 2016 December 31, 2015


ratedinstruments

(%)


(%)


ratedinstruments

(%)


(%)

Short Term RatingA-1+ 8.0 7.1 – –A-1 1.9 1.7 – –Bond RatingAAA 8.5 7.4 2.4 1.8AA 1.3 1.1 10.7 7.7A 6.5 5.9 3.9 2.9BBB 14.9 13.1 12.4 9.0BB 30.0 26.7 23.0 16.6B 23.9 21.1 33.9 24.3CCC 3.1 2.8 12.6 9.1CC 0.6 0.6 – –D 0.3 0.3 – –NOT RATED 1.0 0.8 1.1 0.8

100.0 88.6 100.0 72.2



Percentages of net assets (%)

June 30, 2016 December 31, 2015

Corporate Bonds 71.4 67.6Energy 0.9 0.1Federal Bonds 5.3 1.8Index Based ETFs 9.3 7.8Materials – –Money Market Instruments 11.0 18.5Provincial Bonds 0.9 2.8Telecommunication Services – –


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($)Level 2

($)Level 3

($)Total($)

Equities 119,610,129 – 442,508 120,052,637Bonds and debentures – 913,288,223 – 913,288,223Money market instruments – 129,581,603 – 129,581,603Warrants, rights and options – 121,707 – 121,707Unrealized gain on currency

forward contracts – 2,321,637 – 2,321,637

119,610,129 1,045,313,170 442,508 1,165,365,807


($)Level 2

($)Level 3

($)Total($)

Equities 86,674,076 – 835,630 87,509,706Bonds and debentures – 803,080,074 – 803,080,074Money market instruments – 205,942,555 – 205,942,555Warrants, rights and options – 101,168 – 101,168Unrealized gain on currency

forward contracts – 15,919 – 15,919

86,674,076 1,009,139,716 835,630 1,096,649,422

Unrealized loss on currencyforward contracts – (866,398) – (866,398)

86,674,076 1,008,273,318 835,630 1,095,783,024



Reconciliation of Level 3 financial instruments

June 30, 2016 December 31, 2015

Beginning of period 835,630 12,219,567Purchases – 205,435Sales (6,384) (16,855,448)Transfers into Level 3 8,852,701 13,443,760Transfers out of Level 3 – –Net realized gains (losses) 823 563,495Net changes in unrealized gain (loss)* (9,240,262) (8,741,179)

End of period 442,508 835,630

* Net change in unrealized gain (loss) for Level 3 financial instruments held as atJune 30, 2016 and December 31, 2015 was $(9,245,823) and $(8,741,179), respectively.

During the period ended June 30, 2016, investments of approximately$3,312,451 (December 31, 2015 – nil) were transferred from Level 1 to3 as the fair value of these securities are now determined usinginternal valuation models that required the use of assumptions, ofwhich one of the main ones was not observable in the market.

During the period ended June 30, 2016, investments of approximately$5,540,250 (December 31, 2015 – $13,443,760) were transferred fromLevel 2 to 3 as the fair value of these securities are now determinedusing internal valuation models that required the use of assumptions,of which one of the main ones was not observable in the market.

Level 3 valuation techniques

The tables below summarize the valuation techniques and thesignificant unobservable inputs used in the fair value measurement ofLevel 3 financial instruments. The significant unobservable inputsused in valuation of Level 3 financial instruments can varyconsiderably over time depending on company specific factors andeconomic or market conditions. The tables also illustrate thepotential impact on the Fund if the significant unobservable inputsused in the valuation techniques had increased or decreased by 5%,with all other variables held constant. Certain significantunobservable inputs used in the valuation techniques are notreasonably expected to shift and are indicated in the tables below as“n/a”. Securities where the reasonable possible shift in the significantunobservable input did not result in a material impact on the Fundare indicated in the table below as nil.

SecurityValuationtechnique

Significantunobservable

input

Carrying valueas at June 30,

2016 ($)Reasonable Possible

Shift (+/-) ($)

Equities Fundamentalmodel analysisbased onfinancial data

Company NAV 441,556 n/a

Right Fundamentalmodel analysisbased onfinancial data

Voting right 953 n/a

442,509

SecurityValuationtechnique

Significantunobservable

input

Carrying valueas at

December 31,2015 ($)

Reasonable PossibleShift (+/-) ($)

Equities Fundamentalmodel analysisbased onfinancial data

Company NAV 834,612 n/a

Right Fundamentalmodel analysisbased onfinancial data

Voting right 1,018 n/a

835,630


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The following tables present offsetting of financial assets and liabilitiesand collateral amounts that would occur if future events, such asbankruptcy or termination of contracts, were to arise. No amountswere offset in the financial statements.

June 30, 2016

Financial assets – by type

Gross amountof assets

($)

Master nettingoffset

($)

Collateralpledged/received

($)Net Amount

($)

Currency forwardcontracts 2,321,637 – – 2,321,637

Options contracts – OTC – – – –Swap contracts – – – –

2,321,637 – – 2,321,637

Financial liabilities – bytype

Gross amountof liabilities

($)


($)


($)Net Amount

($)

Currency forwardcontracts – – – –


– – – –

December 31, 2015

Financial assets – by type


($)


($)


($)Net Amount

($)

Currency forwardcontracts 15,919 (15,919) – –


15,919 (15,919) – –

Financial liabilities – bytype


($)


($)


($)Net Amount

($)

Currency forwardcontracts 866,398 (15,919) – 850,479


866,398 (15,919) – 850,479


The following tables present the percentage of the unconsolidatedstructured entities owned by the Fund.

June 30, 2016

Underlying Fund

Carrying value ofthe Underlying Fund

($)

Ownership percentagein Underlying Fund

(%)

SPDR Barclays High Yield Bond ETF 57,351,235 0.4iShares iBoxx $ High Yield Corporate

Bond ETF 52,637,465 0.3

109,988,700

December 31, 2015

Underlying Fund


($)


(%)

SPDR Barclays High Yield Bond ETF 58,204,186 0.4iShares iBoxx $ High Yield Corporate

Bond ETF 28,428,154 0.1

86,632,340


The table below provides a comparison of the net asset value per unitand net assets per unit. A difference could emerge when the lasttraded market price for a financial instrument is not within the bid-askspread (note 2).

June 30, 2016 December 31, 2015

Net asset valueper unit

($)

Net assetsper unit

($)


($)

Net assetsper unit

($)

Pinnacle Series 8.92 8.92 8.91 8.91Series F 9.27 9.27 9.25 9.26Series I 8.95 8.95 8.94 8.94Series M 8.97 8.97 8.96 8.96


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Scotia Private American Core-Plus Bond Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 783,452,999 722,475,194Unrealized gain on currency forward contracts 6,700,424 3,740,527

Cash 95,080,558 130,720,013Receivable for securities sold 142,362,737 9,858,631Subscriptions receivable 511,389 902,453Accrued investment income and other 4,268,869 4,484,518

1,032,376,976 872,181,336

LIABILITIESCurrent liabilitiesManagement fee payable 107 –Payable for securities purchased 240,841,901 140,749,447Redemptions payable 547,913 5,332Accrued expenses 33,272 71Distributions payable 2,046 –Unrealized loss on currency forward contracts 262,763 1,586

241,688,002 140,756,436



Pinnacle Series 90,439,639 65,167,343Series F 170,082 133,753Series I 700,079,253 666,123,804





Dividends 104,610 –Interest for distribution purposes 11,524,648 10,316,177Net realized gain (loss) on non-derivative financial assets 14,879,892 36,951,421Net realized gain (loss) on currency forward contracts 41,617,190 (35,619,109)Change in unrealized gain (loss) on non-derivative

financial assets (33,562,905) 787,585Change in unrealized gain (loss) on currency forward

contracts 2,698,720 (6,551,770)Change in unrealized gain (loss) on currency spots

contracts – (108)

Net gain (loss) on investments 37,262,155 5,884,196Securities lending 42,125 34,302Net realized and unrealized foreign currency translation gain

(loss) 1,511,085 (1,833,426)Other income 387 –


EXPENSESManagement fees (note 5) 562 512Fixed administration fees (note 6) 174,416 136,846Independent Review Committee fees 563 481Interest expense and bank overdraft charges 1,790 119Foreign withholding taxes/tax reclaims 22,718 5,755Other fund costs 132 –Harmonized Sales Tax/Goods and Services Tax 18,349 14,513



INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER SERIES

Pinnacle Series 4,136,630 114,218Series F 7,133 70Series I 34,453,459 3,812,558

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TOHOLDERS OF REDEEMABLE UNITS FROM OPERATIONSPER UNIT†




The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Logan Circle Partners, L.P.

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Scotia Private American Core-Plus Bond Pool (Unaudited – Continued)




731,424,900 628,345,243


Pinnacle Series 4,136,630 114,218Series F 7,133 70Series I 34,453,459 3,812,558

38,597,222 3,926,846


Pinnacle Series (1,325,637) (757,630)Series F (1,940) (1,417)Series I (11,106,685) (10,205,569)

(12,434,262) (10,964,616)



Reinvested distributionsPinnacle Series 1,321,560 755,187Series F 1,408 1,310Series I 11,106,664 10,205,548

Payments on redemptionPinnacle Series (7,710,602) (2,566,854)Series F – (28,437)Series I (11,191,489) (32,085,092)

33,101,114 73,130,357


Pinnacle Series 25,272,296 13,997,158Series F 36,329 (1,580)Series I 33,955,449 52,097,009

59,264,074 66,092,587



790,688,974 694,437,830


CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to

holders of redeemable units 38,597,222 3,926,846Adjustments for:

Net realized (gain) loss on non-derivative financialassets (14,879,892) (36,951,421)

Unrealized foreign currency translation (gain) loss 2,834,661 (7,658,897)Change in unrealized (gain) loss on non-derivative

financial assets 33,562,905 (787,585)Change in unrealized (gain) loss on currency

forward contracts (2,698,720) 6,551,770Change in unrealized (gain) loss on currency spot

contracts – 108Purchases of portfolio investments (2,189,383,864) (2,082,809,312)Proceeds from sale of portfolio investments 2,077,311,393 2,085,084,035Accrued investment income and other receivables 215,649 (196,209)Accrued expenses and other payables 33,308 27,967



Net cash provided by (used in) financing activities 21,602,544 62,264,875Unrealized foreign currency translation gain (loss) (2,834,661) 7,658,897Net increase (decrease) in cash (32,804,794) 29,452,177Cash (bank overdraft), beginning of period 130,720,013 65,872,456


Interest paid(1) 1,790 119Interest received(1) 11,704,722 10,091,318Dividends received, net of withholding taxes(1) 81,892 –



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AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES – 98.8%Australian Dollar – 0.2%

1,590,000 Morgan Stanley 4.75% Nov 16, 2018 1,621,407 1,590,192

Euro – 0.3%1,400,000 America Movil SAB de CV 3.26% Jul 22, 2023 1,905,514 2,301,376

India Rupee – 0.6%129,000,000 International Finance Corporation 6.45%

Oct 30, 2018 2,494,613 2,457,803120,000,000 International Finance Corporation 7.80%

Jun 03, 2019 2,175,277 2,379,877

4,669,890 4,837,680

Mexican Peso – 1.0%42,000,000 America Movil SAB de CV 6.00%

Jun 09, 2019 3,594,831 2,940,73530,500,000 Mexican Bonos 7.75% May 29, 2031 2,844,336 2,448,56935,110,000 Mexican Bonos 8.50% Dec 13, 2018 2,874,988 2,676,879

9,314,155 8,066,183

New Zealand dollar – 1.1%1,350,000 Citigroup Inc. 6.25% Jun 29, 2017 1,094,145 1,286,7692,500,000 Federal Republic of Germany 3.75%

Jun 14, 2018 2,311,335 2,353,1883,310,000 Goldman Sachs Group Inc., The 5.20%

Dec 17, 2019 2,967,085 3,192,6952,300,000 JPMorgan Chase & Company 4.25%

Nov 02, 2018 1,991,202 2,182,286

8,363,767 9,014,938

Norweigian Krone – 0.4%20,000,000 Government of Norway 3.75% May 25, 2021 3,579,130 3,557,817

United States Dollar – 95.2%1,530,000 AbbVie Inc. (Callable) 2.50% Apr 14, 2020 2,008,089 2,028,4841,169,505 Access Group Inc. 1.11% Aug 25, 2037 1,206,412 1,220,8911,755,655 Access Group Inc. 1.42% Jul 01, 2038 1,945,100 2,222,0341,926,440 Access Group Inc. 1.42% Jul 01, 2038 2,134,313 2,438,1871,045,000 ACE INA Holdings, Inc. (Callable) 2.30%

Oct 03, 2020 1,385,772 1,392,549715,000 ACE INA Holdings, Inc. (Callable) 2.88%

Sep 03, 2022 947,496 970,1632,425,000 Actavis Inc. (Callable) 3.25% Jul 01, 2022 2,735,459 3,204,047

22,831 Adjustable Rate Mortgage Trust Series 2005-10(Callable) 2.71% Jun 25, 2018 23,353 25,468

1,520,000 AerCap Ireland Capital Ltd. / AerCap GlobalAviation Trust 4.63% Jul 01, 2022 1,878,131 2,000,017

870,000 Aetna Inc. (Callable) 2.80% Apr 15, 2023 1,159,304 1,151,7291,140,000 Aetna Inc. 1.90% Jun 07, 2019 1,493,197 1,495,3431,000,000 African Development Bank 0.75%

Oct 18, 2016 1,036,154 1,295,640700,000 Albemarle Corporation (Callable) 4.15%

Sep 01, 2024 799,097 946,4991,345,000 Albemarle Corporation (Callable) 5.45%

Jun 01, 2044 1,573,233 1,898,5055,304,000 Ally Master Owner Trust 1.29% Jan 15, 2019 7,164,922 6,879,260

14,545 Alternative Loan Trust Series 2006-2CB(Callable) 5.50% Sep 25, 2020 19,185 13,407

997,000 Altria Group Inc. 10.20% Feb 06, 2039 1,827,232 2,382,464130,000 Altria Group Inc. 9.95% Nov 10, 2038 231,336 305,769825,000 Amazon.com Inc. (Callable) 4.95%

Jun 05, 2044 1,061,874 1,321,035765,153 American Airlines 2014-1 Class B Pass

Through Trust 4.38% Oct 01, 2022 869,116 1,011,3205,541 AmeriCredit Automobile Receivables Trust

Series 2013-1 (Callable) 1.07% Jul 08, 2017 6,538 7,1772,654,000 Anadarko Petroleum Corporation 6.45%

Sep 15, 2036 3,765,312 3,953,792


AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES (cont’d)United States Dollar (cont’d)1,855,000 Anheuser-Busch InBev Finance Inc. (Callable)

2.65% Jan 01, 2021 2,652,467 2,490,7511,155,000 Anheuser-Busch InBev Finance Inc. (Callable)

3.65% Nov 01, 2025 1,653,922 1,608,0993,305,000 Anheuser-Busch InBev Finance Inc. (Callable)

4.70% Aug 01, 2035 4,665,996 4,861,3101,555,000 Anthem Inc. 3.13% May 15, 2022 2,047,904 2,087,2721,370,000 Apple Inc. (Callable) 2.25% Jan 23, 2021 1,902,404 1,825,048

830,000 ArcelorMittal 6.13% Jun 01, 2025 1,041,837 1,081,2691,550,000 Assurant Inc. 2.50% Mar 15, 2018 2,129,789 2,032,579

740,000 AstraZeneca PLC 2.38% Nov 16, 2020 977,635 983,7602,115,000 AutoNation Inc. (Callable) 4.50% Jul 01, 2025 2,802,692 2,922,0601,160,000 Avago Technologies Cayman Finance Ltd. (First

Lien Term Loan B) Feb 01, 2023 1,523,304 1,505,143700,000 Bancolombia S.A. 6.13% Jul 26, 2020 825,991 964,18579,677 Bank of America Alternative Loan Trust

Series 2005-5 (Callable) 6.00% May 25, 2019 72,961 98,779927,103 Bank of America Commercial Mortgage Trust

Series 2007-1 5.45% Jan 15, 2017 1,193,112 1,217,272775,000 Bank of America Commercial Mortgage Trust

Series 2007-2 5.80% Apr 10, 2049 942,423 1,031,0961,293,872 Bank of America Commercial Mortgage Trust,

Series 2008-1 6.23% Dec 10, 2051 1,512,673 1,753,8341,195,000 Bank of America Corporation 2.63%

Apr 19, 2021 1,535,636 1,572,0111,795,000 Bank of America Corporation 3.50%

Apr 19, 2026 2,312,527 2,414,953211,845 Bank of America Mortgage Trust Series 2004-K

(Callable) 2.78% Dec 25, 2034 260,815 268,1931,022,628 Bank of America Mortgage Trust Series 2005-3

(Callable) 5.50% Apr 25, 2035 1,177,295 1,354,948162,269 Bank of America Mortgage Trust Series 2005-G

(Callable) 2.87% Jul 25, 2018 137,932 194,47556,989 Bank of America Mortgage Trust Series 2007-3

(Callable) 6.00% Dec 25, 2017 50,856 67,10383,903 Bank of America Mortgage Trust, Series 2003-J

3.62% Nov 25, 2051 82,023 106,7831,320,000 Barclays PLC 3.25% Jan 12, 2021 1,845,655 1,697,892

477,305 Bear Stearns ARM Trust Series 2004-5 (Callable)3.27% Jul 25, 2034 480,277 608,622

1,350,000 Bear Stearns Cos LLC, The 5.55% Jan 22, 2017 1,581,837 1,789,7081,095,000 Bellsouth Capital Funding Corporation 7.88%

Feb 15, 2030 1,590,350 1,815,667650,000 Berkshire Hathaway Inc. (Callable) 2.20%

Feb 15, 2021 870,190 866,759159,815 BMW Vehicle Owner Trust 2013-A (Callable)

0.67% Mar 25, 2017 192,180 206,8461,320,000 Boston Properties LP (Callable) 3.65%

Nov 03, 2025 1,861,566 1,824,4491,035,000 Braskem Finance Ltd. 6.45% Feb 03, 2024 1,141,435 1,348,1752,380,000 California Republic Auto Receivables Trust 2016-1

(Callable) 2.24% Jun 15, 2020 3,152,381 3,141,5281,677,932 Capital Auto Receivables Asset Trust

Series 2013-1 (Callable) 1.29% Mar 20, 2017 1,889,258 2,173,5571,645,000 Capital Auto Receivables Asset Trust,

Series 2016-1 1.51% Nov 20, 2018 2,178,967 2,134,8672,350,000 CarMax Auto Owner Trust 2016-2 (Callable)

1.52% Jan 15, 2020 2,998,663 3,058,1691,335,000 CD 2007-CD4 Commercial Mortgage Trust

5.37% Dec 11, 2049 1,559,921 1,755,9983,000,000 Cengage Learning Inc. (First Lien Term Loan B)

Jun 07, 2023 3,870,362 3,844,362560,000 CFCRE Commercial Mortgage Trust Series 2016-C4

3.28% May 10, 2058 741,968 763,813


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BONDS AND DEBENTURES (cont’d)United States Dollar (cont’d)1,210,000 Chevron Corporation (Callable) 2.10%

Apr 15, 2021 1,565,712 1,598,0941,465,000 Chevron Corporation (Callable) 2.95%

Feb 16, 2026 1,905,301 1,968,24834,343 CHL Mortgage Pass-Through Trust

Series 2004-HYB4 (Callable) 2.72% Sep 20, 2034 33,312 40,356720,970 Chrysler Group LLC (First Lien Term Loan B)

May 24, 2017 776,476 933,9031,025,000 Citigroup Capital III 7.63% Dec 01, 2036 1,682,705 1,702,3502,480,000 Citigroup Inc. 4.45% Sep 29, 2027 3,269,619 3,323,0381,030,000 Citigroup Inc. 4.65% Jul 30, 2045 1,341,084 1,471,5461,443,113 Citigroup Mortgage Loan Trust Inc.

(Callable) 2.26% Aug 25, 2034 1,782,893 1,813,0161,925,000 Clear Channel Worldwide Holdings Inc.

(Callable) 6.50% Nov 15, 2017 2,650,297 2,504,000920,000 CNOOC Finance 2013 Ltd. 3.00% May 09, 2023 849,880 1,187,964

3,000,000 Colombia Government International Bond(Callable) 5.00% Dec 15, 2044 3,498,636 4,038,521

95,755 COMM 2005-LP5 Mortgage Trust 4.79%May 10, 2043 125,002 124,068

1,600,000 COMM 2015-CCRE25 Mortgage Trust 3.76%Aug 10, 2048 2,152,571 2,270,198

1,800,000 COMM 2015-CCRE26 Mortgage Trust 4.64%Oct 10, 2048 2,288,490 2,269,932

4,358 Commercial Mortgage Asset Trust Series 2006-CD25.33% Jan 15, 2046 5,767 5,646

910,000 Commercial Mortgage Asset Trust Series 2015-PC14.44% Jul 10, 2050 1,198,444 1,226,273

700,000 Commonwealth Edison Company 5.80%Mar 15, 2018 810,486 977,382

100,000 Commonwealth Edison Company 6.45%Jan 15, 2038 122,518 182,658

3,525,000 Community Health Systems Inc. (Callable)8.00% Jul 11, 2016 4,568,714 4,473,254

2,565,000 Compass Bank 6.40% Oct 01, 2017 3,530,221 3,484,676880,000 Coöperatieve Centrale Raiffeisen-

Boerenleenbank B.A. 5.25% Aug 04, 2045 1,135,586 1,282,7929,494 Countrywide Asset-Backed Certificates (Callable)

5.53% Mar 25, 2029 8,478 13,559460,000 Credit Suisse Commercial Mortgage Trust

Series 2007-C2 5.54% Jan 15, 2049 536,393 602,985860,000 Credit Suisse First Boston Mortgage Securities

Corporation 4.88% Jul 15, 2037 1,098,815 1,116,0991,135,000 Crown Castle International Corporation 4.88%

Apr 15, 2022 1,570,518 1,623,548368,556 CSMC Mortgage-Backed Trust Series 2007-5

(Callable) 6.00% Sep 25, 2024 473,873 490,284800,000 CVS Health Corporation (Callable) 2.88%

Mar 01, 2026 1,023,722 1,065,693483,000 CVS Health Corporation (Callable) 3.88%

Apr 20, 2025 623,333 692,4151,184,000 CVS Health Corporation (Callable) 5.13%

Jan 20, 2045 1,552,747 1,914,805270,000 DCP Midstream Operating LP (Callable) 2.50%

Nov 01, 2017 315,478 345,7571,430,000 Dell International (First Lien Term Loan B)

Jun 02, 2023 1,865,079 1,846,935529,000 Devon Energy Corporation (Callable) 5.85%

Sep 15, 2025 713,569 757,0891,155,000 Duke Energy Progress LLC (Callable) 4.10%

Sep 15, 2042 1,190,721 1,643,4262,055,000 Energy Transfer Partners LP (Callable) 4.05%

Dec 15, 2024 2,426,541 2,611,443


AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES (cont’d)United States Dollar (cont’d)1,260,000 Energy Transfer Partners LP (Callable) 6.05%

Dec 01, 2040 1,444,902 1,612,1121,390,000 Enterprise Products Operating LLC (Callable)

3.70% Nov 15, 2025 1,686,251 1,879,296805,000 Enterprise Products Operating LLC (Callable)

7.03% Jan 15, 2018 885,038 1,094,3291,475,000 Exelon Corporation (Callable) 2.85%

May 15, 2020 1,828,656 1,979,783400,000 Export-Import Bank of Korea 5.00%

Apr 11, 2022 403,409 600,2051,965,000 Express Scripts Holding Company (Callable)

3.00% May 15, 2023 2,546,337 2,546,6711,440,000 Express Scripts Holding Company (Callable)

4.80% Jan 15, 2046 1,867,775 1,874,7441,405,000 Fannie Mae 2.00% Dec 25, 2042 1,357,140 1,777,273

231,980 Fannie Mae 2.50% May 25, 2041 236,909 304,2581,490,000 Fannie Mae 3.00% Dec 05, 2099 1,996,408 1,999,3207,870,000 Fannie Mae 3.50% Dec 01, 2099 10,767,448 10,799,7171,740,000 Fannie Mae 3.50% Dec 01, 2099 2,375,320 2,377,182

14,255,000 Fannie Mae 3.50% Dec 04, 2099 19,466,824 19,454,9496,120,000 Fannie Mae 4.00% Dec 03, 2099 8,504,082 8,487,994

726,024 Fannie Mae 4.00% Nov 25, 2029 751,071 995,07125,196 Fannie Mae 4.50% Aug 25, 2023 23,476 34,498

4,927,000 Fannie Mae 4.50% Dec 01, 2099 7,006,266 6,962,4353,317,000 Fannie Mae 4.50% Dec 02, 2099 4,693,914 4,685,301

240,100 Fannie Mae 4.50% Jun 25, 2029 277,079 344,223467,184 Fannie Mae 4.50% Sep 25, 2024 548,859 640,367

4,235,000 Fannie Mae 5.00% Dec 01, 2099 6,101,197 6,088,19665,870 Fannie Mae 5.00% Oct 25, 2024 69,323 91,09715,700 Fannie Mae 5.50% Sep 25, 2017 16,451 20,676

114,101 Fannie Mae 5.50% Sep 25, 2035 136,585 158,3605,772 Fannie Mae 7.50% Nov 25, 2026 8,367 8,630

18,106 Fannie Mae Grantor Trust 2003-T4 (Callable)5.02% Sep 26, 2033 20,728 26,865

420,146 Fannie Mae Grantor Trust Series 2001-T47.50% Jul 25, 2041 589,302 662,676

1,650,250 Fannie Mae Pool 3.00% Dec 01, 2042 2,400,884 2,226,16214,335,000 Fannie Mae Pool 3.00% Dec 01, 2099 18,989,274 19,266,959

600,000 Fannie Mae Pool 3.10% Jan 01, 2026 825,532 838,7881,250,000 Fannie Mae Pool 3.12% Jun 01, 2035 1,631,383 1,691,2852,777,247 Fannie Mae Pool 3.50% Apr 01, 2046 3,785,264 3,802,6987,089,862 Fannie Mae Pool 3.50% Dec 01, 2045 10,722,479 9,710,454

10,700,324 Fannie Mae Pool 3.50% Feb 01, 2046 15,909,334 14,650,3312,105,822 Fannie Mae Pool 3.50% May 01, 2045 2,894,854 2,897,8921,860,867 Fannie Mae Pool 3.50% Oct 01, 2042 2,783,904 2,560,928

938,748 Fannie Mae Pool 3.50% Oct 01, 2045 1,283,628 1,285,5541,399,577 Fannie Mae Pool 3.50% Sep 01, 2045 1,940,572 1,916,925

616,499 Fannie Mae Pool 3.80% Sep 01, 2023 672,198 827,6795,359,404 Fannie Mae Pool 4.00% Apr 01, 2046 7,511,685 7,513,1833,386,389 Fannie Mae Pool 4.00% Jun 01, 2045 4,470,762 4,710,1611,762,824 Fannie Mae Pool 4.50% Apr 01, 2035 2,437,613 2,508,9521,743,862 Fannie Mae Pool 4.50% Mar 01, 2046 2,511,294 2,527,532

3,481 Fannie Mae Pool 5.00% Jan 01, 2036 3,862 4,9031,461 Fannie Mae Pool 5.00% Nov 01, 2033 1,895 2,014

705 Fannie Mae Pool 5.00% Nov 01, 2034 841 9441,672 Fannie Mae Pool 5.00% Nov 01, 2034 1,983 2,290

397,293 Fannie Mae Pool 5.26% Jun 01, 2023 496,708 572,2531,822,276 Fannie Mae Pool 5.50% Apr 01, 2036 2,601,875 2,668,835

406,745 Fannie Mae Pool 5.50% Aug 01, 2037 498,502 594,8892,169,569 Fannie Mae Pool 5.50% Feb 01, 2038 3,177,616 3,177,737

738,307 Fannie Mae Pool 5.50% Feb 01, 2038 930,104 1,079,825209,309 Fannie Mae Pool 5.50% Jan 01, 2040 300,350 306,006


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BONDS AND DEBENTURES (cont’d)United States Dollar (cont’d)2,193,547 Fannie Mae Pool 5.50% Jul 01, 2040 3,206,888 3,206,442

184,920 Fannie Mae Pool 6.00% Sep 01, 2039 278,153 274,9561,992 Fannie Mae Pool 7.50% Apr 01, 2032 2,894 3,0071,182 Fannie Mae Pool 7.50% Jun 01, 2031 1,896 1,784

1,560,000 Fannie Mae Series A 3.00% Dec 01, 2099 2,100,695 2,117,38434,091 Fannie Mae Whole Loan (Callable) 6.50%

Apr 25, 2023 41,160 51,65793,496 Fannie Mae Whole Loan (Callable) 6.50%

Jun 25, 2023 117,900 136,310710,744 Fannie Mae Whole Loan (Callable) 7.00%

Feb 25, 2025 853,608 1,069,506593,256 Fannie Mae Whole Loan 6.00% Feb 25, 2047 761,537 850,100381,243 Federal Home Loan Mortgage Corporation

2.00% Dec 15, 2041 387,208 492,267959,480 Federal Home Loan Mortgage Corporation

2.50% May 15, 2041 996,433 1,257,903477,194 Federal Home Loan Mortgage Corporation

3.00% Jan 15, 2042 504,767 638,715285,208 Federal Home Loan Mortgage Corporation

4.00% Nov 15, 2036 310,973 396,671381,000 Federal Home Loan Mortgage Corporation

4.50% Dec 15, 2033 404,720 602,890220,000 Federal Home Loan Mortgage Corporation

4.50% Nov 15, 2029 229,963 340,5761,709,637 FHLMC Multifamily Structured Pass Through

Certificates (Floating Rate) 1.15% Sep 25, 2022 2,272,788 2,225,796840,000 FHLMC Multifamily Structured Pass Through

Certificates (Floating Rate) 2.13% Jan 25, 2021 1,100,874 1,119,9951,170,000 FHLMC Multifamily Structured Pass Through

Certificates 2.85% Jan 25, 2026 1,569,720 1,610,9382,685,000 FHLMC Multifamily Structured Pass Through

Certificates 2.85% Mar 25, 2026 3,468,626 3,727,968410,932 FHLMC Structured Pass Through Securities

5.23% May 25, 2043 467,820 600,26414,508 FHLMC Structured Pass Through Securities

6.50% Sep 25, 2043 20,888 21,4591,200,000 Fifth Third Bankcorp (Callable) 2.88%

Sep 01, 2021 1,304,907 1,614,974297,800 First Horizon Mortgage Pass-Through Trust

Series 2004-AR6 (Callable) 2.80% Dec 25, 2034 289,079 384,4261,345,000 Ford Motor Credit Company LLC 2.55%

Oct 05, 2018 1,788,969 1,772,6165,362 Freddie Mac (Callable) 7.00% Jul 15, 2016 7,012 7,752

980,000 Freddie Mac 2.00% Aug 25, 2016 935,887 1,271,757290,243 Freddie Mac 3.00% May 15, 2041 306,167 386,518165,000 Freddie Mac 4.00% Aug 15, 2024 169,225 237,451

1,572,867 Freddie Mac 4.50% Apr 15, 2030 1,860,001 2,209,720807,043 Freddie Mac 5.00% Feb 15, 2040 1,174,495 1,177,71669,859 Freddie Mac 5.00% Jun 15, 2033 75,947 99,81072,782 Freddie Mac 5.00% May 15, 2026 74,444 101,244

220,458 Freddie Mac 5.00% May 15, 2033 232,310 314,613522,350 Freddie Mac Gold Pool 3.00% Jul 01, 2042 542,352 702,386

1,173,897 Freddie Mac Gold Pool 3.50% Jul 01, 2043 1,752,562 1,613,6034,630,075 Freddie Mac Gold Pool 3.50% May 01, 2046 6,330,506 6,331,7471,349,659 Freddie Mac Gold Pool 3.50% Nov 01, 2045 2,045,775 1,865,6351,923,484 Freddie Mac Gold Pool 4.00% Aug 01, 2044 2,273,535 2,702,9573,282,833 Freddie Mac Gold Pool 4.00% Feb 01, 2046 4,645,900 4,601,8721,175,164 Freddie Mac Gold Pool 4.00% Oct 01, 2045 1,676,549 1,647,0541,396,140 Freddie Mac Gold Pool 4.00% Sep 01, 2045 1,991,806 1,957,062

533,061 Freddie Mac Gold Pool 4.50% Mar 01, 2046 777,182 758,1583,278 Freddie Mac Gold Pool 5.00% Jun 01, 2018 3,293 4,3205,278 Freddie Mac Gold Pool 5.00% Sep 01, 2033 7,190 7,538

875,818 Freddie Mac Gold Pool 5.50% Jun 01, 2041 1,308,836 1,270,201


AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES (cont’d)United States Dollar (cont’d)2,615,329 Freddie Mac Strips 3.00% Aug 15, 2042 3,455,794 3,556,8701,105,000 General Electric Company 1.01% May 05, 2026 1,282,842 1,352,6121,290,000 General Electric Company 4.50% Mar 11, 2044 1,515,075 1,952,124

515,000 General Electric Company 5.25% Dec 06, 2017 583,441 707,848630,000 General Electric Company 5.88% Jan 14, 2038 1,087,580 1,108,045

3,775,000 General Motors Corporation 4.88%Oct 02, 2023 5,184,940 5,226,589

1,415,000 General Motors Financial Company, Inc.(Callable) 5.25% Dec 01, 2025 1,920,996 1,996,286

1,435,000 Georgia-Pacific LLC 8.88% May 15, 2031 2,310,473 2,979,4041,425,000 Gilead Sciences Inc. 2.55% Sep 01, 2020 1,884,294 1,918,694

19,702 Ginnie Mae I Pool 7.00% Dec 15, 2034 24,100 29,7001,404 Ginnie Mae I Pool 7.50% Feb 15, 2032 2,048 2,130

112,553 Ginnie Mae II Pool 2.00% Feb 20, 2040 123,265 151,222453,334 Ginnie Mae II Pool 2.00% Jan 20, 2040 544,338 601,250489,941 Ginnie Mae II Pool 3.00% Apr 20, 2040 543,154 672,822125,442 Ginnie Mae II Pool 3.50% Jun 20, 2040 131,182 172,014

1,752,072 Ginnie Mae II Pool 4.56% Nov 20, 2062 1,926,455 2,435,571339,859 Ginnie Mae II Pool 4.63% Jun 20, 2062 486,575 468,865152,109 Ginnie Mae II Pool 4.65% Jan 20, 2063 168,083 220,90760,026 Ginnie Mae II Pool 4.66% Jan 20, 2063 66,397 86,894

532,427 Ginnie Mae II Pool 4.68% Aug 20, 2064 651,695 725,718132,760 Ginnie Mae II Pool 4.73% Apr 20, 2063 151,776 183,089290,548 Ginnie Mae II Pool 4.79% Sep 20, 2064 355,582 397,756

2,469,121 Ginnie Mae II Pool 4.81% Feb 20, 2061 2,886,851 3,352,403178,872 Ginnie Mae II Pool 4.85% May 20, 2062 207,892 245,310274,908 Ginnie Mae II Pool 5.07% Apr 20, 2062 320,760 377,239

1,156,574 Ginnie Mae II Pool 5.39% Dec 20, 2059 1,303,101 1,542,791712,597 Ginnie Mae II Pool 5.50% Sep 20, 2043 1,052,424 1,016,431

1,245,000 GM Financial Automobile Leasing Trust 2015-3(Callable) 1.69% Oct 20, 2018 1,626,764 1,624,858

1,540,000 GM Financial Automobile Leasing Trust 2016-2(Callable) 1.62% Apr 20, 2019 1,989,031 2,005,167

253,907 GMACM Mortgage Loan Trust 2005-AR2(Callable) 3.39% Nov 25, 2017 250,537 304,150

2,335,000 Goldman Sachs Capital I 6.35% Feb 15, 2034 3,385,154 3,582,5341,050,000 Goldman Sachs Group Inc., The (Callable)

2.63% Mar 25, 2021 1,327,695 1,381,2172,245,000 Goldman Sachs Group Inc., The 6.75%

Oct 01, 2037 3,415,125 3,578,09256,626 Government National Mortgage Association

4.50% Jun 16, 2039 61,055 81,2161,306,146 Government National Mortgage Association

5.47% Nov 20, 2059 1,463,312 1,734,1092,000,000 Great Plains Energy Inc. (Callable) 5.29%

Mar 15, 2022 2,362,965 2,924,6011,100,000 Harris Corporation 2.00% Apr 27, 2018 1,534,396 1,431,412

269,177 Homestar Mortgage Acceptance Corporation(Callable) 0.90% Oct 25, 2034 255,636 346,587

390,000 HSBC Bank PLC 7.65% May 01, 2025 658,036 576,041960,000 HSBC Bank USA N.A. 5.88% Nov 01, 2034 1,389,920 1,471,699925,000 HSBC Holdings PLC 2.95% May 25, 2021 1,203,392 1,205,663935,000 HSBC Holdings PLC 3.90% May 25, 2026 1,213,624 1,244,343

1,211,896 Hyundai Auto Receivables Trust 2013-C(Callable) 1.01% Dec 15, 2017 1,473,433 1,569,994

36,654 IndyMac INDX Mortgage Loan TrustSeries 2005-AR25 (Callable) 2.96% Jun 25, 2018 43,405 35,935

720,000 Intel Corporation (Callable) 4.90% Jan 29, 2045 979,374 1,091,1182,175,000 Intelsat Jackson Holdings S.A. (Callable) 7.25%

Jul 11, 2016 2,848,806 2,053,6463,078,000 Intesa Sanpaolo SpA 2.38% Jan 13, 2017 3,372,580 3,998,8181,290,000 Janus Capital Group Inc. (Callable) 4.88%

May 01, 2025 1,651,825 1,819,861


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BONDS AND DEBENTURES (cont’d)United States Dollar (cont’d)

390,000 JP Morgan Chase Commercial MortgageSecurities Trust Series 2004-LN2 5.27%Jul 15, 2041 409,833 505,931

573,242 JP Morgan Chase Commercial MortgageSecurities Trust Series 2005-CIBC12 4.99%Sep 12, 2037 694,814 743,947

470,000 JP Morgan Chase Commercial MortgageSecurities Trust Series 2005-LDP2 4.91%Jul 15, 2042 529,402 607,333

43,300 JP Morgan Chase Commercial MortgageSecurities Trust Series 2006-CIBC15 5.81%Jun 12, 2043 51,082 56,059

660,000 JP Morgan Chase Commercial MortgageSecurities Trust Series 2006-CIBC165.59% May 12, 2045 890,690 855,789

495,000 JP Morgan Chase Commercial MortgageSecurities Trust Series 2007-CIBC20 5.88%Feb 12, 2051 613,756 672,661

2,315,000 JP Morgan Chase Commercial MortgageSecurities Trust Series 2007-LDP10 5.46%Jan 15, 2049 2,970,569 2,938,848

650,000 JP Morgan Chase Commercial MortgageSecurities Trust Series 2007-LDP11 5.74%Jun 15, 2049 821,923 845,136

276,417 JP Morgan Mortgage Trust Series 2004-A2(Callable) 2.57% Jun 25, 2020 293,830 343,507

488,048 JP Morgan Mortgage Trust Series 2005-A4(Callable) 2.61% Mar 25, 2028 546,921 619,007

9,462 JP Morgan Mortgage Trust Series 2005-A4(Callable) 2.66% Mar 25, 2028 9,503 11,673

78,719 JP Morgan Mortgage Trust Series 2005-A6(Callable) 2.74% Nov 25, 2030 87,161 96,381

120,011 JP Morgan Mortgage Trust Series 2006-A6(Callable) 2.69% May 25, 2025 104,528 132,643

1,554,000 JPMBB Commercial Mortgage Securities TrustSeries 2014-C26 4.43% Jan 15, 2048 2,027,320 2,054,731

895,000 JPMorgan Chase & Company 4.25%Oct 01, 2027 1,189,899 1,229,015

75,000 Kimberly-Clark Corporation 7.50%Nov 01, 2018 90,835 111,054

1,105,000 Kohl’s Corporation (Callable) 5.55%Jan 17, 2045 1,407,707 1,336,653

3,290,000 LB Commercial Mortgage Trust Series 2007-C35.92% Jul 15, 2044 4,703,739 4,424,057

890,000 LB-UBS Commercial Mortgage TrustSeries 2005-C7 5.35% Nov 15, 2040 1,157,046 1,142,925

63,850 LB-UBS Commercial Mortgage TrustSeries 2006-C6 5.37% Sep 15, 2039 85,653 82,829

1,390,000 Lockheed Martin Corporation 3.35%Sep 15, 2021 1,914,862 1,929,962

2,934,646 MacDermid Inc. (First Lien Term Loan)Jun 07, 2020 3,378,298 3,759,437

11,311 MASTR Adjustable Rate Mortgages TrustSeries 2003-6 (Callable) 2.70% Dec 25, 2033 10,163 14,266

441,863 MASTR Adjustable Rate Mortgages TrustSeries 2006-2 (Callable) 2.81% Jun 25, 2018 483,716 557,328

2,910,000 McGraw-Hill Global Education Holdings LLC(First Lien Term Loan) Jul 17, 2016 3,820,585 3,767,639

693,040 Merrill Lynch Mortgage Investors Trust MLMISeries 2005-A10 (Callable) 0.66% Feb 25, 2019 710,804 820,805

361,217 Merrill Lynch Mortgage Investors TrustSeries 2005-2 (Callable) 2.52% Sep 25, 2017 460,879 444,909


AverageCost ($)

CarryingValue ($)


63,247 Merrill Lynch Mortgage Investors Trust Series MLMI2005-A1 (Callable) 2.76% Dec 25, 2034 55,472 79,687

497,567 Merrill Lynch Mortgage Trust 2005-CKI1 5.35%Nov 12, 2037 664,201 645,051

985,403 Merrill Lynch Mortgage Trust Series 2006-C25.78% Aug 12, 2043 1,145,651 1,276,715

2,050,000 MetLife Inc. (Callable) 10.75% Aug 01, 2034 3,447,436 4,092,3451,150,000 Mexico Government International Bond 4.60%

Jan 23, 2046 1,375,526 1,570,428845,000 Morgan Stanley 2.50% Apr 21, 2021 1,077,235 1,107,389

1,405,000 Morgan Stanley 3.88% Jan 27, 2026 1,867,822 1,944,951930,000 Morgan Stanley Bank of America Merrill Lynch

Trust Series 2015-C24 3.73% May 15, 2048 1,250,331 1,324,163150,000 Morgan Stanley Bank of America Merrill Lynch

Trust Series 2015-C24 4.35% May 15, 2048 185,972 178,715531,102 Morgan Stanley Capital I Trust 2008-TOP29

2.55% Jan 11, 2043 680,987 688,92572,900 Morgan Stanley Capital I Trust 2012-C4 2.11%

Mar 15, 2045 95,263 94,5241,174 Morgan Stanley Capital I Trust Series 2005-IQ10

6.22% Sep 15, 2042 1,516 1,520555,000 Morgan Stanley Capital I Trust Series 2006-HQ8

5.42% Mar 12, 2044 617,197 718,3332,065,000 Morgan Stanley Capital I Trust Series 2006-IQ12

5.37% Dec 15, 2043 2,522,730 2,697,416288,565 Morgan Stanley Capital I Trust Series 2007-IQ14

5.67% Apr 15, 2049 356,182 382,336316,887 Morgan Stanley Capital I Trust Series 2007-

TOP27 5.64% Jun 11, 2042 374,821 423,282696,025 Mortgage IT Trust Series 2005-1 (Callable)

1.09% Feb 25, 2035 878,629 843,480660,000 Municipal Electric Authority of Georgia 6.64%

Apr 01, 2057 716,611 1,133,8181,500,000 Municipal Electric Authority of Georgia 7.06%

Apr 01, 2057 1,698,121 2,387,6401,395,000 Mylan Inc. 2.55% Mar 28, 2019 1,819,464 1,828,554

143,002 NCUA Guaranteed Notes Trust Series 2010-R3(Callable) 2.40% Dec 06, 2020 142,097 185,218

3,020,000 Newell Brands Inc. (Callable) 3.85%Feb 01, 2023 3,950,797 4,161,921

1,660,000 Nokia OYJ 6.63% May 15, 2039 1,826,076 2,313,8601,970,000 Nomura Holdings Inc. 2.00% Sep 13, 2016 2,101,020 2,553,8781,115,000 NVR Inc. (Callable) 3.95% Jun 15, 2022 1,159,282 1,521,1601,740,000 Oracle Corporation (Callable) 1.90%

Aug 01, 2021 2,256,194 2,257,3201,765,000 Oracle Corporation (Callable) 2.65%

Apr 15, 2026 2,280,598 2,287,5821,520,000 PacifiCorp (Callable) 2.95% Nov 01, 2021 1,657,915 2,079,9862,950,000 Party City Holdings Inc. (First Lien Term Loan B)

Jul 17, 2016 3,836,313 3,799,3811,035,000 Perrigo Company PLC 2.30% Nov 08, 2018 1,380,726 1,352,817

770,000 Perrigo Finance Unlimited Co. (Callable) 4.38%Dec 15, 2025 1,008,475 1,039,579

2,900,000 Petco Animal Supplies Inc. (First Lien TermLoan B) Jul 17, 2016 3,823,170 3,741,348

3,000,000 Petrobras Global Finance BV 8.38%May 23, 2021 3,832,880 4,020,134

1,680,000 Petrobras Global Finance BV 8.75%May 23, 2026 2,132,797 2,187,212

715,000 Petroleos Mexicanos 6.38% Jan 23, 2045 946,530 933,0511,000,000 Petroleos Mexicanos 8.63% Feb 01, 2022 1,344,780 1,495,0552,890,000 PQ Corporation (First Lien Term Loan B)

Nov 04, 2022 3,803,555 3,748,067


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72,000 Regency Centers LP 5.88% Jun 15, 2017 74,390 96,980148,554 Renaissance Home Equity Loan Trust

Series 2006-1 (Callable) 5.61% Apr 25, 2023 136,540 122,398224 Residential Asset Mortgage Products, Inc.

(Callable) 7.00% Dec 25, 2025 316 2891,295,000 Reynolds American Inc. 6.88% May 01, 2020 1,949,573 1,985,8731,050,000 Santander Drive Auto Receivables Trust 2014-4

(Callable) 1.82% Jul 15, 2018 1,148,241 1,363,6351,035,000 Santander Drive Auto Receivables Trust 2015-4

(Callable) 1.58% Jan 15, 2019 1,353,283 1,343,8741,600,000 Seagate HDD Cayman 4.75% Jun 01, 2023 1,809,758 1,724,583

277,796 Sequoia Mortgage Trust Series 2004-11(Callable) 1.04% Dec 20, 2034 310,986 341,381

2,265,000 Shell International Finance BV 2.88%May 10, 2026 2,905,048 2,986,988

1,984,288 SLM Private Credit Student Loan TrustSeries 2002-A 1.18% Dec 16, 2030 2,517,544 2,480,876

2,636,508 SLM Private Credit Student Loan TrustSeries 2005-B 0.81% Mar 15, 2023 3,287,269 3,387,092

1,280,000 SMART Trust Series 2015-3US (Callable) 1.66%Jan 14, 2020 1,676,941 1,658,272

1,002,571 South Carolina Student Loan CorporationSeries 2015-A 1.95% Jan 25, 2036 1,230,247 1,185,043

3,285,000 Sprint Capital Corporation 8.75%Mar 15, 2032 3,901,513 3,633,863

6,255 Structured Adjustable Rate Mortgage LoanTrust (Callable) 2.92% Nov 25, 2016 7,544 7,793

1,060,575 Structured Asset Mortgage Investments II TrustSeries 2004-AR8 (Callable) 1.12%May 19, 2035 1,206,137 1,287,971

164,539 Structured Asset Securities Corporation(Callable) 3.08% Aug 25, 2017 159,748 200,834

2,930,000 Sun Products Corporation, The (First Lien TermLoan B) Jul 17, 2016 3,781,798 3,785,475

1,161,112 Sungard Availability Services Capital Inc.(First Lien Term Loan) Mar 31, 2019 1,243,621 1,319,777

2,195,000 Tenet Healthcare Corporation 8.13%Apr 01, 2022 2,942,610 2,907,375

3,490,000 Time Warner Cable Inc. 6.55% May 01, 2037 4,545,483 5,333,300740,000 Time Warner Cable Inc. 7.30% Jul 01, 2038 1,161,046 1,212,414810,000 Time Warner Inc. 4.75% Mar 29, 2021 1,157,966 1,180,490917,700 T-Mobile US, Inc. (First Lien Term Loan B)

Nov 09, 2022 1,197,559 1,193,2561,740,000 Total Capital S.A. 2.13% Aug 10, 2018 1,858,788 2,295,8561,952,000 Transocean Inc. 3.75% Oct 15, 2017 2,318,388 2,534,421

815,000 Twenty-First Century Fox Inc. 6.40%Dec 15, 2035 1,198,017 1,348,359

355,000 Tyco Electronics Group S.A. 6.55%Oct 01, 2017 386,475 489,226

875,000 Under Armour Inc. (Callable) 3.25%Mar 15, 2026 1,109,708 1,146,716

1,345,000 United States Treasury Notes 0.63%Jun 30, 2018 1,742,263 1,743,019

3,775,000 United States Treasury Notes 0.88%May 31, 2018 4,877,411 4,915,304



27,423,000 United States Treasury Notes 1.63%Feb 15, 2026 35,221,963 35,982,039

19,070,000 United States Treasury Notes 1.63%May 15, 2026 24,565,743 25,038,261

FaceValue ($)/Number ofShares Issuer

AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES (cont’d)United States Dollar (cont’d)25,315,000 United States Treasury Notes 2.50%

Feb 15, 2046 32,239,176 34,258,1191,030,000 Validus Holdings Ltd. 8.88% Jan 26, 2040 1,526,190 1,835,757

380,000 Verizon Communications Inc. 4.67%Mar 15, 2055 464,994 496,239

970,000 Vodafone Group PLC 7.88% Feb 15, 2030 1,617,514 1,630,026146,266 Wachovia Bank Commercial Mortgage Trust

Series 2005-C21 5.29% Oct 15, 2044 182,769 190,3871,532,000 Wachovia Bank Commercial Mortgage Trust

Series 2006-C26 6.01% Jun 15, 2045 1,994,230 1,986,1111,775,000 Wachovia Capital Trust III (Floating Rate)

5.57% Jul 11, 2016 1,835,684 2,296,890153,169 WaMu Mortgage Pass-Through Certificates

Series 2003-AR10 Trust (Callable) 2.54%Jan 25, 2018 144,628 196,271

310,150 WaMu Mortgage Pass-Through CertificatesSeries 2003-AR7 Trust (Callable) 2.43%Aug 25, 2033 358,995 391,935

281,240 WaMu Mortgage Pass-Through CertificatesSeries 2004-AR1 Trust (Callable) 2.77%Feb 25, 2024 363,048 358,958

78,476 Wells Fargo Mortgage Backed SecuritiesSeries 2004-P Trust (Callable) 2.74%Jul 25, 2016 72,393 101,873

34,870 Wells Fargo Mortgage Backed SecuritiesSeries 2005-AR16 Trust (Callable) 2.90%Jan 25, 2017 35,710 42,920

60,427 Wells Fargo Mortgage Backed SecuritiesSeries 2005-AR2 Trust (Callable) 2.87%Feb 25, 2017 53,388 75,797

26,847 Wells Fargo Mortgage Backed SecuritiesSeries 2006-AR10 Trust (Callable) 2.92%Feb 25, 2018 20,532 32,208

58,040 Wells Fargo Mortgage Backed SecuritiesSeries 2006-AR6 Trust (Callable) 2.76%Jul 25, 2018 59,655 74,811

12,008 Wells Fargo Mortgage Backed SecuritiesSeries 2007-8 Trust (Callable) 6.00%Aug 25, 2017 12,231 15,455

1,960,000 Western Gas Partners LP (Callable) 4.65%Apr 01, 2026 2,531,844 2,531,844

100,000 WFRBS Commercial Mortgage TrustSeries 2013-C12 4.28% Mar 15, 2048 125,376 135,242

1,580,000 WFRBS Commercial Mortgage TrustSeries 2014-C19 3.66% Mar 15, 2047 1,805,889 2,180,977

1,480,000 Williams Partners LP (Callable) 5.10%Mar 15, 2045 1,817,250 1,639,588

507,000 Williams Partners LP 7.25% Feb 01, 2017 626,080 674,189

723,954,907 752,096,666

EQUITIES – 0.3%3 NRG Energy, Inc. 69 581 Quad/Graphics Inc. – 30

55,800 Verizon Communications Inc., 5.90%,Preferred 1,549,674 1,988,059

1,549,743 1,988,147


Unrealized Gain (Loss) on Derivatives – 0.8% 6,437,661OTHER ASSETS, LESS LIABILITIES – 0.1% 798,314

NET ASSETS – 100% 790,688,974


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SettlementDate

Currency ToBe Received

ContractualAmount


ContractualAmount

ContractPrice

MarketPrice

Canadian ($)Appreciation /(Depreciation)

Bank of America, N.A. A Jul. 29, 2016 US Dollar 1,223,554 Australian Dollar 1,655,957 1.353 1.343 (12,478)

Standard Chartered Bank A Jul. 29, 2016 Canadian Dollar 734,027,686 US Dollar 562,704,010 0.767 0.774 6,700,424

Royal Bank of Scotland PLC BBB+ Jul. 29, 2016 US Dollar 1,768,649 European Euro 1,596,218 0.903 0.899 (7,040)

HSBC Securities Inc. AA- Jul. 29, 2016 US Dollar 3,363,682 Mexican Peso 63,832,592 18.977 18.323 (155,353)

Bank of America, N.A. A Jul. 29, 2016 US Dollar 62,246 New Zealand Dollar 88,180 1.417 1.403 (773)

Bank of America, N.A. A Jul. 29, 2016 US Dollar 7,015,653 New Zealand Dollar 9,938,593 1.417 1.403 (87,119)

6,437,661


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The Fund’s objective is to achieve superior long term returns and toprovide income as well as capital growth by investing primarily in aportfolio of U.S. government and corporate bonds and mortgage passthrough securities. The Fund may also invest in the U.S. dollardenominated emerging markets, non-investment grade debt and non-U.S. investment grade sovereign and corporate debt.






($)

Less than 1 year 20,755,178 18,377,8611-3 years 63,457,438 73,450,2783-5 years 58,338,154 62,602,4255-10 years 243,066,815 178,535,716> 10 years 395,847,267 384,905,977

781,464,852 717,872,257

As at June 30, 2016, had the prevailing interest rates increased ordecreased by 0.25%, assuming a parallel shift in the yield curve and allother variables held constant, net assets attributable to holders ofredeemable units would have decreased or increased, respectively, by$12,787,035 or approximately 1.6% (December 31, 2015 – $11,536,354or approximately 1.6%).

ii) Currency risk


June 30, 2016

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 139,014,645 17.6 13,901,465 1.8Indian Rupee 4,837,680 0.6 483,768 0.1Mexican Peso 3,641,356 0.5 364,136 0.1Norwegian Krone 3,557,818 0.4 355,782 –European Euro 148,535 – 14,854 –Australian Dollar 30,350 – 3,035 –British Pound 1 – – –Swedish Krona 1 – – –New Zealand Dollar (234,568) – (23,457) –

150,995,818 19.1 15,099,583 2.0

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 140,465,116 19.2 14,046,512 1.9Indian Rupee 5,245,828 0.7 524,583 0.1Mexican Peso 4,139,357 0.6 413,936 0.1Japanese Yen 3,852,700 0.5 385,270 0.1Norwegian Krone 3,577,659 0.5 357,766 0.1Swedish Krona 200,955 – 20,095 –British Pound 64,949 – 6,495 –Australian Dollar (16,752) – (1,675) –European Euro (111,940) – (11,194) –New Zealand Dollar (463,953) (0.1) (46,395) –

156,953,919 21.4 15,695,393 2.3

iii) Price risk

Price risk is the risk that the carrying value of financial instrumentswill fluctuate as a result of changes in market prices (other than thosearising from interest rate risk or currency risk) caused by factorsspecific to a security, its issuer or all factors affecting a market or amarket segment. Exposure to price risk is mainly in equities,underlying funds, derivatives and commodities, as applicable. As atJune 30, 2016, approximately 0.3% (December 31, 2015 – 0.6%) of theFund’s net assets were exposed to price risk. If prices of theseinstruments had decreased or increased by 10%, with all othervariables held constant, net assets of the Fund would have decreasedor increased, respectively, by approximately $198,815 (December 31,2015 – $460,294). In practice, actual results may differ from thissensitivity analysis and the difference could be material.

iv) Credit risk

The table below summarizes the credit ratings of the bonds anddebentures, money market instruments, and preferred shares held bythe Fund, as applicable.

June 30, 2016 December 31, 2015

Credit ratings

Percentage oftotal credit rated

instruments(%)


(%)


instruments(%)


(%)

AAA 54.7 54.0 52.5 51.8AA 4.3 4.2 2.8 2.7A 10.1 10.0 14.1 14.0BBB 21.5 21.3 22.8 22.5BB 3.2 3.2 4.6 4.6B 5.3 5.2 2.0 1.9CCC 0.9 0.9 1.2 1.2

100.0 98.8 100.0 98.7


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June 30, 2016 December 31, 2015

Australian Dollar 0.2 0.2European Euro 0.3 0.3Indian Ruppee 0.6 0.7Mexican Peso 1.0 1.2New Zealand Dollar 1.1 1.3Norwegian Krone 0.4 0.5US Dollar 95.2 93.9Equities 0.3 0.6




($)Level 2

($)Level 3

($)Total($)

Equities 1,988,148 – – 1,988,148Bonds and debentures – 781,464,851 – 781,464,851Unrealized gain on currency forward

contracts – 6,700,424 – 6,700,424

1,988,148 788,165,275 – 790,153,423

Unrealized loss on currency forwardcontracts – (262,763) – (262,763)

1,988,148 787,902,512 – 789,890,660


($)Level 2

($)Level 3

($)Total($)

Equities 4,602,937 – – 4,602,937Bonds and debentures – 717,872,257 – 717,872,257Unrealized gain on currency forward

contracts – 3,740,527 – 3,740,527

4,602,937 721,612,784 – 726,215,721


4,602,937 721,611,198 – 726,214,135




The following tables present offsetting of financial assets and liabilitiesand collateral amounts that would occur if future events, such as

bankruptcy or termination of contracts, were to arise. No amountswere offset in the financial statements.

June 30, 2016

Financial assets –by type


($)


($)


($)Net Amount

($)

Currency forwardcontracts 6,700,424 – – 6,700,424


6,700,424 – – 6,700,424

Financial liabilities –by type


($)


($)


($)Net Amount

($)

Currency forwardcontracts 262,763 – – 262,763


262,763 – – 262,763

December 31, 2015



($)


($)


($)Net Amount

($)

Currency forwardcontracts 3,740,527 (1,586) – 3,738,941


3,740,527 (1,586) – 3,738,941



($)


($)


($)Net Amount

($)



1,586 (1,586) – –




As at June 30, 2016 or December 31, 2015, there were no differencesbetween the net asset value per unit and the net assets per unit for anyseries of the Fund.


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Scotia Private Strategic Balanced Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 53,954,716 48,222,480Unrealized gain on currency forward contracts 855 4,570

Cash 511,766 241,702Receivable for securities sold – 14,479Subscriptions receivable 68,532 1,931Accrued investment income and other 232,619 237,882

54,768,488 48,723,044

LIABILITIESCurrent liabilitiesManagement fee payable 547 –Payable for securities purchased 348,779 38,925Redemptions payable 9,212 5,500Accrued expenses 14,525 3Distributions payable 5,773 –Unrealized loss on currency forward contracts 6,339 22,111

385,175 66,539








Dividends 463,477 389,727Interest for distribution purposes 397,214 305,260Net realized gain (loss) on non-derivative financial assets (43,509) 5,834,260Net realized gain (loss) on currency forward contracts 64,130 8,277Change in unrealized gain (loss) on non-derivative financial

assets 3,276,037 (6,411,825)Change in unrealized gain (loss) on currency forward

contracts 12,057 (20,680)Change in unrealized gain (loss) on currency spots contracts – (84)

Net gain (loss) on investments 4,169,406 104,935Securities lending 4,534 3,103Net realized and unrealized foreign currency translation gain

(loss) (26,547) 18,225Other income 711 –

Total income (loss), net 4,148,104 126,263



Increase (decrease) in net assets attributable to holders ofredeemable units from operations 4,043,804 16,894


Pinnacle Series 3,997,620 21,325Series F 46,184 (4,431)


Pinnacle Series 1.34 0.01Series F 1.39 (0.27)

WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESPinnacle Series 2,979,479 2,588,042Series F 33,204 16,447


The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Lincluden Investment Management Limited

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Scotia Private Strategic Balanced Pool (Unaudited – Continued)




48,656,505 40,455,893


Pinnacle Series 3,997,620 21,325Series F 46,184 (4,431)

4,043,804 16,894


Pinnacle Series (818,706) (601,546)Series F (7,066) (2,755)

(825,772) (604,301)



Reinvested distributionsPinnacle Series 811,170 596,029Series F 1,697 1,149

Payments on redemptionPinnacle Series (6,441,771) (4,793,937)Series F (38,055) (147,029)

2,508,776 7,876,144


Pinnacle Series 5,607,934 7,304,380Series F 118,874 (15,643)

5,726,808 7,288,737



54,383,313 47,744,630



redeemable units 4,043,804 16,894Adjustments for:

Net realized (gain) loss on non-derivative financial assets 43,509 (5,833,795)Unrealized foreign currency translation (gain) loss 26,925 (23,705)Change in unrealized (gain) loss on non-derivative

financial assets (3,276,037) 6,411,825Change in unrealized (gain) loss on currency forward

contracts (12,057) 20,680Change in unrealized (gain) loss on currency spot

contracts – 84Purchases of portfolio investments (22,332,642) (55,441,406)Proceeds from sale of portfolio investments 20,146,578 47,592,373Transaction costs 10,688 28,621Accrued investment income and other receivables 5,263 (113,098)Accrued expenses and other payables 15,069 14,118



Net cash provided by (used in) financing activities 1,625,889 7,183,369Unrealized foreign currency translation gain (loss) (26,925) 23,705Net increase (decrease) in cash 296,989 (144,040)Cash (bank overdraft), beginning of period 241,702 277,601


Interest paid(1) 178 30Interest received(1) 388,934 239,563Dividends received, net of withholding taxes(1) 472,193 338,741



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AverageCost ($)

CarryingValue ($)


40,000 407 International Inc. (Callable) 3.30%Sep 27, 2044 40,041 39,222

25,000 407 International Inc. (Callable) 3.83%Nov 11, 2045 24,960 26,781

120,000 407 International Inc. (Callable) 4.19%Jan 25, 2042 133,791 136,144

105,000 AltaGas Ltd. (Callable) 3.57% Mar 12, 2023 105,426 108,78040,000 AltaGas Ltd. (Callable) 3.84% Oct 15, 2024 38,888 41,66450,000 AltaGas Ltd. (Callable) 4.12% Jan 07, 2026 49,972 52,06425,000 AltaGas Ltd. (Callable) 4.40% Dec 15, 2023 25,833 27,07090,000 AltaLink LP (Callable) 4.05% May 21, 2044 102,060 99,41355,000 AltaLink LP (Callable) 4.09% Dec 30, 2044 55,000 61,14440,000 Bank of Montreal 1.88% Mar 31, 2021 39,998 40,584

200,000 Bank of Montreal 2.12% Mar 16, 2022 196,478 204,471180,000 Bank of Montreal 2.24% Dec 11, 2017 184,982 182,708215,000 Bank of Montreal 2.43% Mar 04, 2019 221,364 221,182355,000 Bank of Montreal 2.84% Jun 04, 2020 372,020 373,512160,000 Bank of Nova Scotia, The (Floating Rate) 2.90%

Aug 03, 2017 165,232 161,854260,000 Bank of Nova Scotia, The 2.46% Mar 14, 2019 271,050 267,417380,000 Bank of Nova Scotia, The 2.87% Jun 04, 2021 396,575 401,987180,000 Bell Canada (Callable) 3.15% Aug 29, 2021 189,810 189,25240,000 Bell Canada (Callable) 3.55% Dec 02, 2025 39,850 42,309

310,000 Bell Canada 3.54% Jun 12, 2020 330,407 329,27370,000 Cameco Corporation (Callable) 4.19%

Mar 24, 2024 75,600 73,94835,000 Cameco Corporation 3.75% Nov 14, 2022 37,023 36,265

170,000 Cameco Corporation 5.67% Sep 02, 2019 194,650 185,531220,000 Canadian Imperial Bank of Commerce 1.70%

Oct 09, 2018 221,381 221,97780,000 Canadian Imperial Bank of Commerce 1.85%

Jul 14, 2020 79,852 81,17775,000 Canadian Imperial Bank of Commerce 1.90%

Apr 26, 2021 74,961 76,182420,000 Canadian Imperial Bank of Commerce 2.22%

Mar 07, 2018 432,810 426,841110,000 CU Inc. 4.54% Oct 24, 2041 130,865 129,656180,000 CU Inc. 5.43% Jan 23, 2019 208,980 198,339190,000 Enbridge Gas Distribution Inc. 4.04% Nov 23, 2020 209,302 208,924160,000 Enbridge Inc.ome Fund (Callable) 3.95%

Aug 19, 2024 168,616 168,552210,000 Enbridge Pipelines Inc. 4.49% Nov 12, 2019 237,468 228,347110,000 ENMAX Corporation (Callable) 3.81% Sep 05, 2024 117,322 116,20020,000 EPCOR Utilities Inc. 4.55% Feb 28, 2042 24,100 23,70240,000 FortisAlberta Inc. 4.54% Oct 18, 2041 48,480 46,92525,000 FortisBC Energy Inc. (Callable) 3.38% Oct 13, 2044 25,000 24,78620,000 FortisBC Energy Inc. 5.80% May 13, 2038 27,840 27,171

145,000 Greater Toronto Airports Authority 6.47%Feb 02, 2034 205,265 209,561

40,000 Hydro One Inc. 3.20% Jan 13, 2022 44,140 43,366190,000 Hydro One Inc. 4.39% Sep 26, 2041 216,399 220,22850,000 Hydro One Inc. 6.03% Mar 03, 2039 73,299 69,86630,000 Inter Pipeline Ltd. (Callable) 3.17% Dec 24, 2024 28,191 30,150

130,000 Loblaw Cos Ltd. 6.15% Jan 29, 2035 165,815 166,020220,000 Manulife Financial Corporation 5.51% Jun 26, 2018 249,700 235,934500,000 National Bank of Canada (Callable) 3.26%

Apr 11, 2017 518,550 505,27425,000 North West Redwater Partnership / NWR Financing

Co., Ltd. (Callable) 3.70% Aug 23, 2042 24,909 23,39250,000 North West Redwater Partnership / NWR Financing

Co., Ltd. (Callable) 4.05% Jan 24, 2044 55,850 51,03430,000 North West Redwater Partnership / NWR Financing

Co., Ltd. (Callable) 4.15% Dec 01, 2032 29,924 30,785


AverageCost ($)

CarryingValue ($)

BONDS AND DEBENTURES – (cont’d)Corporate Bonds – (cont’d)

50,000 North West Redwater Partnership / NWR FinancingCo., Ltd. (Callable) 4.25% Mar 01, 2029 49,861 54,252

45,000 Nova Scotia Power Inc. 4.15% Mar 06, 2042 50,558 49,22030,000 Nova Scotia Power Inc. 5.61% Jun 15, 2040 40,174 39,60690,000 Reliance LP 4.08% Aug 02, 2021 91,152 91,85540,000 Reliance LP 4.57% Mar 15, 2017 41,712 40,574

350,000 Rogers Communications Inc. 4.00% Jun 06, 2022 383,320 383,622285,000 Royal Bank of Canada 1.97% Mar 02, 2022 277,784 288,306380,000 Royal Bank of Canada 2.82% Jul 12, 2018 398,840 391,15850,000 Royal Bank of Canada 2.98% May 07, 2019 52,376 52,21330,000 Shaw Communications Inc. (Callable) 4.35%

Oct 31, 2023 33,240 32,704160,000 Shaw Communications Inc. 5.50% Dec 07, 2020 189,040 180,659120,000 SNC-Lavalin Group Inc. 6.19% Jul 03, 2019 141,481 133,11690,000 Sun Life Financial Inc. 4.57% Aug 23, 2021 104,869 101,35540,000 TELUS Corporation (Callable) 4.40% Jul 29, 2045 39,989 39,493

110,000 TELUS Corporation (Callable) 4.75% Jul 17, 2044 121,440 114,812130,000 TELUS Corporation 5.05% Dec 04, 2019 149,942 143,448140,000 Teranet Holdings LP 4.81% Dec 16, 2020 161,000 154,968170,000 Toronto-Dominion Bank, The (Callable) 4.78%

Dec 14, 2016 180,268 172,200210,000 Toronto-Dominion Bank, The 2.05% Mar 08, 2021 210,000 214,590412,000 Toronto-Dominion Bank, The 2.45% Apr 02, 2019 427,809 424,417170,000 Toronto-Dominion Bank, The 3.23% Jul 24, 2024 180,011 186,00570,000 TransCanada PipeLines Ltd. (Callable) 4.35%

Dec 06, 2045 69,837 73,084140,000 TransCanada PipeLines Ltd. 4.55% Nov 15, 2041 159,250 151,874210,000 Wells Fargo Canada Corporation 2.94%

Jul 25, 2019 223,146 219,486160,000 Westcoast Energy Inc. 3.88% Oct 28, 2021 177,205 171,887

10,864,333 10,771,868

Federal Bonds – 10.9%1,865,000 Canada Housing Trust No. 1 1.07% Sep 15, 2021 1,867,238 1,867,4251,800,000 Government of Canada 1.75% Sep 01, 2019 1,861,200 1,868,0811,305,000 Government of Canada 2.25% Jun 01, 2025 1,422,645 1,450,230

205,000 Government of Canada 3.50% Dec 01, 2045 276,613 289,204310,000 United States Treasury Notes 3.00% Nov 15, 2044 414,266 461,672

5,841,962 5,936,612

Provincial Bonds – 16.1%160,000 Province of Alberta 3.45% Dec 01, 2043 163,619 176,210295,000 Province of British Columbia 4.30% Jun 18, 2042 377,244 383,751320,000 Province of Manitoba 5.70% Mar 05, 2037 476,991 458,093450,000 Province of New Brunswick 4.55% Mar 26, 2037 574,593 550,438410,000 Province of Ontario (Floating Rate) 1.32%

Mar 16, 2021410,000412,107

285,000 Province of Ontario 2.60% Jun 02, 2025 289,083 303,0462,400,000 Province of Ontario 2.85% Jun 02, 2023 2,603,712 2,605,758

415,000 Province of Ontario 3.15% Jun 02, 2022 444,539 456,591785,000 Province of Ontario 3.45% Jun 02, 2045 861,948 894,41450,000 Province of Ontario 4.70% Jun 02, 2037 61,685 65,62065,000 Province of Quebec (Floating Rate) 1.07%

Dec 19, 2018 65,507 65,208420,000 Province of Quebec 2.75% Sep 01, 2025 438,228 450,995300,000 Province of Quebec 3.00% Sep 01, 2023 328,725 328,568910,000 Province of Quebec 3.50% Dec 01, 2045 979,316 1,037,317250,000 Province of Quebec 4.50% Dec 01, 2018 284,225 271,53035,000 Province of Quebec 5.00% Dec 01, 2038 44,755 47,806

205,000 Province of Saskatchewan 4.75% Jun 01, 2040 282,941 269,079

8,687,111 8,776,531

TOTAL BONDS AND DEBENTURES 25,393,406 25,485,011


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SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2016Number ofShares Issuer

AverageCost ($)

CarryingValue ($)

EQUITIES – 48.4%Consumer Discretionary – 1.9%

31,820 Shaw Communications, Inc., Class B 852,000 789,1364,865 Thomson Reuters Corporation 239,201 254,294

1,091,201 1,043,430

Consumer Staples – 3.7%4,570 George Weston Limited 463,436 510,972

24,345 Jean Coutu Group (PJC) Inc., The, Class A 456,868 486,90011,500 Metro Inc., Class A 397,603 517,61517,290 North West Company, Inc. 456,717 509,363

1,774,624 2,024,850

Energy – 6.6%24,995 ARC Resources Ltd. 504,821 552,63956,200 Cenovus Energy Inc. 1,193,278 1,004,29460,560 EnCana Corporation 317,674 608,62884,240 Enerplus Corporation 730,400 716,88243,791 Husky Energy Inc. 898,767 690,584

3,644,940 3,573,027

Financials – 22.7%9,480 Bank of Montreal 541,152 776,886

15,640 Bank of Nova Scotia, The 810,076 990,16824,080 Brookfield Property Partners LP 703,298 699,5245,495 Canadian Imperial Bank of Commerce 412,257 533,235

58,065 Dream Industrial Real Estate Investment Trust 455,663 506,9073,740 Dundee Real Estate Investment Trust 76,415 69,489

12,720 First Capital Realty, Inc. 244,925 281,87529,565 H&R Real Estate Investment Trust 596,781 665,5088,400 Intact Financial Corporation 712,728 775,236

10,500 Laurentian Bank of Canada 495,607 506,52062,930 Manulife Financial Corporation 1,357,886 1,111,97336,030 Power Financial Corporation 1,219,110 1,068,29028,510 RioCan Real Estate Investment Trust 794,997 836,19816,040 Royal Bank of Canada 909,981 1,224,49423,975 Sun Life Financial Inc. 952,281 1,017,49923,040 Toronto-Dominion Bank, The 1,003,082 1,278,259

11,286,239 12,342,061

Number ofShares Issuer

AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Health Care – 3.8%

8,580 GlaxoSmithKline PLC – ADR 483,192 481,3313,435 Johnson & Johnson 362,357 539,3317,880 Merck & Co., Inc. 590,710 587,767

10,565 Pfizer Inc. 438,330 481,508

1,874,589 2,089,937

Materials – 0.7%17,795 Potash Corporation of Saskatchewan Inc. 378,526 373,695

Telecommunication Services – 6.2%15,295 BCE Inc. 876,874 935,13618,470 Rogers Communications, Inc., Class B 834,241 965,98122,810 TELUS Corporation 957,231 948,8967,180 Verizon Communications Inc. 422,331 519,104

3,090,677 3,369,117

Utilities – 2.8%13,630 Brookfield Renew Energy Partners LP 512,980 524,21016,905 Capital Power Corporation 398,203 325,9285,255 Hydro One Limited 110,587 136,420

48,585 Superior Plus Corporation 595,809 517,916

1,617,579 1,504,474

TOTAL EQUITIES 24,758,375 26,320,591

MONEY MARKET INSTRUMENTS – 4.0%Treasury Bills – 4.0%

1,250,000 Government of Canada 0.00% Aug 11, 2016 1,248,480 1,249,287900,000 Government of Canada 0.00% Jul 14, 2016 898,947 899,827

TOTAL MONEY MARKET INSTRUMENTS 2,147,427 2,149,114


Unrealized Gain (Loss) on Derivatives – 0.0% (5,484)OTHER ASSETS, LESS LIABILITIES – 0.8% 434,081

NET ASSETS – 100.0% 54,383,313





SettlementDate

Currency To BeReceived

ContractualAmount


ContractualAmount

ContractPrice

MarketPrice

Canadian ($)Appreciation/(Depreciation)

Bank of Nova Scotia A+ Jul. 21, 2016 Canadian Dollar 52,577 US Dollar 40,000 0.761 0.773 855

Bank of Nova Scotia A+ Aug. 18, 2016 Canadian Dollar 486,142 US Dollar 380,000 0.782 0.774 (4,999)

Bank of Nova Scotia A+ Aug. 18, 2016 US Dollar 80,000 Canadian Dollar 104,736 1.309 1.292 (1,340)

(5,484)


BA

LAN

CE

DFU

ND

32




The Fund’s objective is to achieve superior long term returns through acombination of capital growth and income by investing primarily inlarge capitalization stocks of Canadian corporations and Canadiangovernment bonds. The weighting of the Fund’s portfolio will beallocated between asset classes within specified ranges: 40%-80%equities, 20%-60% fixed income securities, and 0%-30% short-termmoney market securities and cash.






($)

Less than 1 year 2,867,163 764,3651-3 years 3,120,778 7,354,2273-5 years 5,251,972 2,805,3345-10 years 9,852,438 6,062,872> 10 years 6,541,774 6,618,994

27,634,125 23,605,792

As at June 30, 2016, had the prevailing interest rates increased ordecreased by 0.25%, assuming a parallel shift in the yield curve and allother variables held constant, net assets attributable to holders ofredeemable units would have decreased or increased, respectively, by$471,366 or approximately 0.9% (December 31, 2015 – $426,767 orapproximately 0.9%).

ii) Currency risk


June 30, 2016

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 2,706,602 5.0 270,660 0.5

2,706,602 5.0 270,660 0.5

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 2,974,771 6.1 297,477 0.6British Pound 5,608 0.0 561 0.0

2,980,379 6.1 298,038 0.6

iii) Price risk

Price risk is the risk that the carrying value of financial instrumentswill fluctuate as a result of changes in market prices (other than thosearising from interest rate risk or currency risk) caused by factorsspecific to a security, its issuer or all factors affecting a market or amarket segment. Exposure to price risk is mainly in equities,underlying funds, derivatives and commodities, as applicable. As atJune 30, 2016, approximately 48.4% (December 31, 2015 – 48.4%) ofthe Fund’s net assets were exposed to price risk. If prices of theseinstruments had decreased or increased by 10%, with all othervariables held constant, net assets of the Fund would have decreasedor increased, respectively, by approximately $2,632,059 (December 31,2015 – $2,356,760). In practice, actual results may differ from thissensitivity analysis and the difference could be material.

iv) Credit risk


June 30, 2016 December 31, 2015

Credit ratings


instruments(%)


(%)


instruments(%)


(%)

Short Term RatingA-1+ 3.3 1.7 – –Bond RatingAAA 27.3 13.8 27.8 13.5AA 14.0 7.1 37.4 18.0A 40.6 20.7 28.6 13.9BBB 14.8 7.5 6.2 3.0

100.0 50.8 100.0 48.4




June 30, 2016 December 31, 2015

Consumer Discretionary 1.9 2.8Consumer Staples 3.7 3.8Corporate Bonds 19.8 18.4Energy 6.6 4.7Federal Bonds 10.9 13.3Financials 22.7 22.9Health Care 3.8 4.2Materials 0.7 –Provincial Bonds 16.1 16.7Telecommunication Services 6.2 6.9Treasury Bills 4.0 2.2Utilities 2.8 3.2


BA

LAN

CE

DFU

ND

33






($)Level 2

($)Level 3

($)Total($)

Equities 26,320,591 – – 26,320,591Bonds and debentures – 25,485,011 – 25,485,011Money market instruments – 2,149,114 – 2,149,114Unrealized gain on currency forward

contracts – 855 – 855

26,320,591 27,634,980 – 53,955,571


26,320,591 27,628,641 – 53,949,232


($)Level 2

($)Level 3

($)Total($)

Equities 23,567,598 – – 23,567,598Bonds and debentures – 23,605,792 – 23,605,792Money market instruments – 1,049,090 – 1,049,090Unrealized gain on currency forward

contracts – 4,570 – 4,750

23,567,598 24,659,452 – 48,227,050


23,567,598 24,637,341 – 48,204,939




The following tables present offsetting of financial assets and liabilitiesand collateral amounts that would occur if future events, such asbankruptcy or termination of contracts, were to arise. No amountswere offset in the financial statements.

June 30, 2016



($)


($)


($)Net Amount

($)

Currency forwardcontracts 855 (855) – –


855 (855) – –



($)


($)


($)Net Amount

($)

Currency forwardcontracts 6,339 (855) – 5,484


6,339 (855) – 5,484

December 31, 2015



($)


($)


($)Net Amount

($)



4,570 (4,570) – –



($)


($)


($)Net Amount

($)

Currency forwardcontracts 22,111 (4,570) – 17,541


22,111 (4,570) – 17,541






BA

LAN

CE

DFU

ND

34

Scotia Private Canadian Value Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 169,772,965 157,148,121Cash 205,640 24,516Receivable for securities sold 1,605,371 –Subscriptions receivable 403,689 93,211Accrued investment income and other 622,952 610,870

172,610,617 157,876,718

LIABILITIESCurrent liabilitiesManagement fee payable 600 –Payable for securities purchased 1,769,448 –Redemptions payable 137,115 9,542Accrued expenses 22,298 190

1,929,461 9,732








Dividends 2,702,628 2,174,586Interest for distribution purposes 11,793 28,878Net realized gain (loss) on non-derivative financial assets (103,852) 1,433,013Change in unrealized gain (loss) on non-derivative financial

assets 14,004,611 (4,382,783)

Net gain (loss) on investments 16,615,180 (746,306)Securities lending 34,404 3,294Other income 264 –

Total income (loss), net 16,649,848 (743,012)

EXPENSESManagement fees (note 5) 3,287 2,380Fixed administration fees (note 6) 117,760 100,480Independent Review Committee fees 562 100Interest expense and bank overdraft charges 1,963 8Foreign withholding taxes/tax reclaims 2,087 1,269Other fund costs 30 –Harmonized Sales Tax/Goods and Services Tax 11,789 10,220Transaction costs 82,414 32,979


Increase (decrease) in net assets attributable to holders ofredeemable units from operations 16,429,956 (890,448)


Pinnacle Series 15,570,836 (838,168)Series F 62,831 (6,409)Series I 796,289 (45,871)


Pinnacle Series 1.97 (0.13)Series F 1.84 (0.28)Series I 1.83 (0.09)

WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESPinnacle Series 7,918,853 6,222,485Series F 34,212 22,891Series I 434,829 527,984


The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Scheer, Rowlett & Associates Investment Management Ltd.

CA

NA

DIA

NE

QU

ITY

FUN

DS

35

Scotia Private Canadian Value Pool (Unaudited – Continued)




157,866,986 129,640,368


Pinnacle Series 15,570,836 (838,168)Series F 62,831 (6,409)Series I 796,289 (45,871)

16,429,956 (890,448)




(3,615,786) 17,335,843


Pinnacle Series 14,613,646 16,815,225Series F 43,485 (205,906)Series I (1,842,961) (163,924)

12,814,170 16,445,395



170,681,156 146,085,763



redeemable units 16,429,956 (890,448)Adjustments for:

Net realized (gain) loss on non-derivative financial assets 103,852 (1,433,013)Change in unrealized (gain) loss on non-derivative

financial assets (14,004,611) 4,382,783Purchases of portfolio investments (75,616,857) (57,970,784)Proceeds from sale of portfolio investments 76,974,436 38,393,381Transaction costs 82,414 32,979Accrued investment income and other receivables (12,083) (7,909)Accrued expenses and other payables 22,708 20,594

Net cash provided by (used in) operating activities 3,979,815 (17,472,417)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 27,457,724 28,121,097Amounts paid on redemption of redeemable units (31,256,415) (10,648,486)

Net cash provided by (used in) financing activities (3,798,691) 17,472,611Net increase (decrease) in cash 181,124 194Cash (bank overdraft), beginning of period 24,516 10,391


Interest paid(1) 1,963 8Interest received(1) 11,793 28,820Dividends received, net of withholding taxes(1) 2,688,458 2,165,466



CA

NA

DIA

NE

QU

ITY

FUN

DS

36



AverageCost ($)

CarryingValue ($)


6,500 Canadian Tire Corporation, Limited, Class A 697,712 914,87591,200 Gildan Activewear Inc. 2,318,227 3,451,008

120,800 Magna International Inc. 5,250,773 5,478,280

8,266,712 9,844,163

Consumer Staples – 1.4%86,100 Maple Leaf Foods Inc. 1,332,492 2,375,499

Energy – 16.1%41,300 Cameco Corporation 758,667 586,047

160,300 Canadian Natural Resources Ltd. 4,543,803 6,389,55842,900 Canyon Services Group Inc 548,172 242,385

219,200 Cenovus Energy Inc. 5,502,608 3,917,10462,400 MEG Energy Corporation 1,758,878 422,448

117,300 Precision Drilling Corporation 993,582 803,505291,614 Suncor Energy, Inc. 8,794,589 10,451,44671,300 TransCanada Corporation 3,105,383 4,168,198

192,800 Trinidad Drilling Ltd. 608,845 489,712

26,614,527 27,470,403

Financials – 42.6%57,200 Bank of Montreal 4,137,498 4,687,540

230,700 Bank of Nova Scotia, The 11,368,479 14,605,617122,600 Canadian Imperial Bank of Commerce 9,366,185 11,897,10490,700 CI Financial Corporation 2,781,707 2,444,365

200,800 Element Financial Corporation 3,165,276 2,750,96029,600 Genworth MI Canada Inc. 872,449 980,944

347,780 Manulife Financial Corporation 7,043,042 6,145,27334,000 National Bank of Canada 1,394,926 1,502,460

111,700 Power Corporation of Canada 3,403,925 3,071,750147,800 Royal Bank of Canada 8,564,492 11,283,05279,000 Sun Life Financial Inc. 2,955,139 3,352,760

182,300 Toronto-Dominion Bank, The 6,916,529 10,114,004

61,969,647 72,835,829

Index Based ETFs – 1.1%90,900 iShares S&P/TSX 60 Index ETF 1,890,664 1,868,904

Industrials – 8.3%110,500 Canadian National Railway Company 5,545,729 8,430,04513,100 Canadian Pacific Railway Limited 2,116,246 2,178,923

165,900 WestJet Airlines Ltd. 3,559,694 3,497,172

11,221,669 14,106,140

Information Technology – 0.2%29,200 Celestica Inc. 290,147 350,984

Materials – 15.1%55,100 Agrium Inc. 5,387,007 6,440,639

257,500 Barrick Gold Corporation 7,276,901 7,101,84854,800 Dominion Diamond Corporation 805,766 626,36414,100 Domtar Corporation 637,862 637,461

173,700 Goldcorp, Inc. 3,368,767 4,293,864360,100 Lundin Mining Corporation 1,667,910 1,570,036101,500 Major Drilling Group International Inc. 760,403 793,73057,600 Methanex Corporation 2,461,021 2,165,18431,800 Potash Corporation of Saskatchewan Inc. 1,190,315 667,800

731,600 Sherritt International Corporation 2,252,291 585,28050,100 Teck Resources Ltd., Class B 1,262,888 852,201

27,071,131 25,734,407

Telecommunication Services – 5.7%19,000 BCE Inc. 804,661 1,161,66076,100 Rogers Communications, Inc., Class B 2,982,217 3,980,030

110,200 TELUS Corporation 3,274,584 4,584,320

7,061,462 9,726,010


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Utilities – 1.1%

53,500 Capital Power Corporation 1,181,717 1,031,480116,200 TransAlta Corporation 718,511 780,864

1,900,228 1,812,344

TOTAL EQUITIES 147,618,679 166,124,683


450,000 Government of Canada 0.00%Aug 11, 2016 449,735 449,759

1,500,000 Government of Canada 0.00%Aug 25, 2016 1,498,560 1,498,869

1,400,000 Government of Canada 0.00% Jul 14, 2016 1,399,396 1,399,757300,000 Government of Canada 0.00% Jul 28, 2016 299,814 299,897

3,647,505 3,648,282



NET ASSETS – 100.0% 170,681,156


CA

NA

DIA

NE

QU

ITY

FUN

DS

37




The Fund’s objective is to achieve superior long term returns throughcapital growth by investing primarily in securities of Canadiancorporations.






($)

Less than 1 year 3,648,282 –1-3 years – –3-5 years – –5-10 years – –> 10 years – –

3,648,282 –

As at June 30, 2016, had the prevailing interest rates increased ordecreased by 0.25%, assuming a parallel shift in the yield curve and allother variables held constant, net assets attributable to holders ofredeemable units would have decreased or increased, respectively, by$895 or approximately 0.0% (December 31, 2015 – $1,823 orapproximately 0.0%).

ii) Currency risk


iii) Price risk

Price risk is the risk that the carrying value of financial instrumentswill fluctuate as a result of changes in market prices (other than thosearising from interest rate risk or currency risk) caused by factorsspecific to a security, its issuer or all factors affecting a market or amarket segment. Exposure to price risk is mainly in equities,underlying funds, derivatives and commodities, as applicable. As atJune 30, 2016, approximately 97.4% (December 31, 2015 – 95.6%) ofthe Fund’s net assets were exposed to price risk. If prices of theseinstruments had decreased or increased by 10%, with all othervariables held constant, net assets of the Fund would have decreasedor increased, respectively, by approximately $16,612,468(December 31, 2015 – $15,090,161). In practice, actual results maydiffer from this sensitivity analysis and the difference could bematerial.

iv) Credit risk


June 30, 2016 December 31, 2015

Credit ratings


ratedinstruments

(%)


(%)


ratedinstruments

(%)


(%)

Short Term RatingA-1+ 87.7 1.8 – –Bond RatingAAA 12.3 0.3 – –

100.0 2.1 – –




June 30, 2016 December 31, 2015

Consumer Discretionary 5.8 6.4Consumer Staples 1.4 2.3Energy 16.1 17.0Financials 42.6 42.8Index Based ETFs 1.1 1.5Industrials 8.3 7.7Information Technology 0.2 0.3Materials 15.1 10.4Money Market Instruments 2.1 3.9Telecommunication Services 5.7 5.9Utilities 1.1 1.3




($)Level 2

($)Level 3

($)Total($)

Equities 166,124,683 – – 166,124,683Money market instruments – 3,648,282 – 3,648,282

166,124,683 3,648,282 – 169,772,965


($)Level 2

($)Level 3

($)Total($)


150,901,607 6,246,514 – 157,148,121




As at June 30, 2016 and December 31, 2015, the Fund did not enter intoany agreement whereby the financial instruments were eligible foroffset.


CA

NA

DIA

NE

QU

ITY

FUN

DS

38





June 30, 2016

Underlying Fund


($)


(%)

iShares S&P/TSX 60 Index ETF 1,868,904 0.0

1,868,904

December 31, 2016

Underlying Fund


($)


(%)

iShares S&P/TSX 60 Index ETF 2,458,238 0.0

2,458,238




CA

NA

DIA

NE

QU

ITY

FUN

DS

39

Scotia Private Canadian Mid Cap Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 82,117,714 68,516,327Cash 79,328 64,234Receivable for securities sold 568,074 –Subscriptions receivable 211,566 33,300Accrued investment income and other 110,327 144,374

83,087,009 68,758,235

LIABILITIESCurrent liabilitiesManagement fee payable 201 –Payable for securities purchased 1,167,875 15,930Redemptions payable 60,254 2,511Accrued expenses 16,170 178

1,244,500 18,619








Dividends 641,320 510,477Interest for distribution purposes 71,246 75,210Net realized gain (loss) on non-derivative financial assets 757,951 2,472,040Change in unrealized gain (loss) on non-derivative financial

assets 7,227,997 427,185


(loss) 7,070 (106)Other income 262 157


EXPENSESManagement fees (note 5) 935 876Fixed administration fees (note 6) 81,072 69,434Independent Review Committee fees 563 45Interest expense and bank overdraft charges 408 314Foreign withholding taxes/tax reclaims 1,094 2,191Other fund costs 13 –Harmonized Sales Tax/Goods and Services Tax 8,635 7,539Transaction costs 106,586 92,902









The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Connor, Clark & Lunn Investment Managment Ltd.

CA

NA

DIA

NE

QU

ITY

FUN

DS

40

Scotia Private Canadian Mid Cap Pool (Unaudited – Continued)




68,739,616 57,129,896



8,524,042 3,314,374




4,578,851 5,985,991


Pinnacle Series 12,984,458 6,682,132Series F 48,805 (42,394)Series I 69,630 2,660,627

13,102,893 9,300,365



81,842,509 66,430,261




Net realized (gain) loss on non-derivative financial assets (757,951) (2,462,627)Unrealized foreign currency translation (gain) loss (19,447) 14Change in unrealized (gain) loss on non-derivative

financial assets (7,227,997) (427,185)Purchases of portfolio investments (57,775,223) (46,772,994)Proceeds from sale of portfolio investments 52,637,069 40,432,016Transaction costs 106,586 92,902Accrued investment income and other receivables 34,047 4,090Accrued expenses and other payables 16,193 14,287



Net cash provided by (used in) financing activities 4,458,328 6,061,229Unrealized foreign currency translation gain (loss) 19,447 (14)Net increase (decrease) in cash (4,353) 256,106Cash (bank overdraft), beginning of period 64,234 88,034


Interest paid(1) 408 314Interest received(1) 71,140 75,194Dividends received, net of withholding taxes(1) 674,379 512,393



CA

NA

DIA

NE

QU

ITY

FUN

DS

41



AverageCost ($)

CarryingValue ($)


20,000 Cara Operations Ltd. Subscription Receipts 585,000 585,0007,300 AutoCanada Inc. 155,490 161,6951,500 Cineplex, Inc. 62,313 77,3703,600 Cogeco Communication Inc. 215,734 244,0804,900 Dollarama Inc. 170,730 441,980

27,600 Great Canadian Gaming Corporation 572,801 495,97212,100 Hudson’s Bay Company 306,482 188,6397,200 IMAX Corporation 170,977 274,5115,351 Linamar Corporation 132,468 246,253

12,800 Quebecor Inc., Class B 432,340 473,8569,200 Restaurant Brands International Inc. 472,511 494,7763,600 Sleep Country Canada Holdings Inc. 67,113 85,752

19,019 Spin Master Corporation 355,797 506,85614,100 Uni-Select Inc 452,891 461,916

4,152,647 4,738,656

Consumer Staples – 6.7%12,300 AGT Food and Ingredients Inc. 465,006 436,52728,840 Alimentation Couche-Tard Inc., Class B 1,163,700 1,600,043

109,765 Cott Corporation 1,388,157 1,982,35652,970 Maple Leaf Foods Inc. 1,078,386 1,461,442

4,095,249 5,480,368

Energy – 19.0%177,200 Bankers Petroleum Ltd. 329,417 365,03259,600 Birchcliff Energy Ltd. 372,500 410,048

116,700 Canyon Services Group Inc 498,105 659,35596,648 Cardinal Energy Ltd. 1,043,237 963,58114,025 Crescent Point Energy Corporation 328,093 286,25024,400 Enbridge Income Fund Holdings Inc. 712,165 782,26446,541 Enerflex Ltd. 487,125 497,05867,900 Freehold Royalties Ltd. 968,597 808,68946,000 Keyera Corporation 1,773,546 1,817,9205,500 Mullen Group Limited 74,552 77,550

65,900 Parex Resources Inc. 631,214 824,4097,300 PDC Energy Inc. 565,256 544,363

20,600 Peyto Exploration & Development Corporation 613,836 714,408111,100 PHX Energy Services Corporation 566,792 298,859119,560 Raging River Exploration Inc. 706,325 1,229,07758,066 Secure Energy Services Inc. 735,121 512,72360,281 Seven Generations Energy Ltd. 1,113,150 1,486,52915,000 ShawCor Ltd. 657,462 480,450

579,700 Tidewater Midstream and Infrastructure Ltd. 793,856 730,4223,200 Tourmaline Oil Corporation 80,000 108,832

509,900 Trinidad Drilling Ltd. 1,055,927 1,295,146195,800 Western Energy Services Corporation 1,545,279 640,267

15,651,555 15,533,232

Financials – 16.9%10,600 Altus Group Ltd. 230,016 236,06260,717 Brookfield Property Partners LP 1,504,238 1,763,82955,100 Chartwell Seniors Housing Real Estate

Investment Trust 661,743 868,92716,941 Colliers International Group Inc. 642,830 747,437

129,187 Element Financial Corporation 1,469,120 1,769,8625,500 FirstService Corporation 321,195 324,995

25,566 Great-West Lifeco Inc. 875,852 871,28918,400 H&R Real Estate Investment Trust 402,845 414,1844,000 Industrial Alliance Insurance and Financial

Services Inc. 161,607 162,44028,400 Intact Financial Corporation 2,129,942 2,621,03658,900 Killam Apartment Real Estate Investment Trust 699,047 747,4417,800 Laurentian Bank of Canada 385,686 376,2722,290 Laurentian Bank of Canada, Subscription

Receipts 109,577 109,577


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Financials (cont’d)

56,500 Milestone Apartments Real Estate InvestmentTrust 910,346 1,067,285

9,500 Onex Corporation 689,604 750,5007,800 Power Financial Corporation 248,674 231,2704,500 Smart Real Estate Investment Trust 116,294 171,900

44,000 Tricon Capital Group Inc 277,740 382,80076,000 Westaim Corporation, The 247,000 196,840

12,083,356 13,813,946

Health Care – 0.1%2,900 Concordia Healthcare Corporation 136,695 80,707

Industrials – 12.9%12,400 ATS Automation Tooling Systems Inc. 128,049 120,52840,100 Bird Construction, Inc. 479,021 536,137

100 Black Diamond Group Ltd. 537 53914,800 Boyd Group Income Fund 1,054,610 1,099,04867,894 CAE, Inc. 956,996 1,059,82525,200 Harwoods Distribution Inc. 208,110 395,13619,100 MacDonald, Dettwiler and Associates Ltd. 1,563,628 1,609,55721,400 Magellan Aerospace Corporation 370,951 385,41428,400 Morneau Shepell, Inc. 491,775 503,81634,501 New Flyer Industries Inc. 1,042,942 1,387,97518,600 Russel Metals Inc. 388,389 425,56827,600 Savaria Corporation 215,280 228,80416,700 Toromont Industries Ltd. 540,216 628,58820,200 Transcontinental Inc., Class A 356,567 353,70211,585 Waste Connections Inc. 926,506 1,081,34418,391 WSP Global Inc. 689,904 726,812

9,413,481 10,542,793

Information Technology – 7.1%23,500 Celestica Inc. 275,445 282,47029,200 Davis + Henderson Income Corporation 1,033,181 937,61214,700 Descartes Systems Group Inc., The 226,836 363,2375,300 Enghouse Systems Limited 305,726 290,387

16,671 Kinaxis Inc. 647,072 864,89146,481 Mitel Networks Corporation 446,539 376,96123,960 Open Text Corporation 1,344,930 1,830,304

115,170 Sandvine Corporation 367,230 306,35213,100 Shopify Inc., Class A 475,423 520,856

5,122,382 5,773,070

Materials – 22.5%76,000 Alamos Gold Inc. 522,685 844,36028,100 Asanko Gold Inc. 159,451 138,814

175,000 B2Gold Corporation 513,697 567,00028,600 Canam Group Inc., Class A 361,421 372,65831,400 Capstone Mining Corporation 25,745 26,6907,100 CCL Industries Inc., Class B 810,835 1,596,364

40,400 Detour Gold Corporation 635,082 1,305,728152,600 First Majestic Silver Corporation 1,572,924 2,678,13059,400 First Quantum Minerals Ltd. 503,418 538,75817,900 Franco-Nevada Corporation 1,064,939 1,758,49699,220 HudBay Minerals, Inc. 740,392 612,187

210,000 Kinross Gold Corporation 796,570 1,331,400152,288 Lundin Mining Corporation 682,587 663,97615,532 Methanex Corporation 931,576 583,84828,700 New Gold Inc. 163,412 162,15515,100 Norbord Inc. 410,634 381,42624,700 Osisko Gold Royalties Ltd. 394,813 417,18342,300 Silver Wheaton Corporation 892,569 1,286,34390,900 Tahoe Resources Inc. 1,528,956 1,758,9155,006 Winpak Ltd. 184,813 237,635

190,000 Yamana Gold Inc. 821,696 1,276,800

13,718,215 18,538,866


CA

NA

DIA

NE

QU

ITY

FUN

DS

42



AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Telecommunication Services – 1.4%

30,500 Manitoba Telecom Services Inc. 887,773 1,156,865

Utilities – 5.6%39,600 Algonquin Power & Utilities Corporation 430,421 470,84461,300 Boralex Inc. 928,874 1,193,51114,249 Brookfield Infrastructure Partners LP 530,211 832,8546,443 Brookfield Renew Energy Partners LP 209,054 247,798

11,700 Emera Inc. 518,986 568,8541,000 Fairfax Financial Holdings Limited 654,320 695,830

47,400 TransAlta Corporation 287,404 318,52821,200 TransAlta Renewables Inc. 250,584 283,232

3,809,854 4,611,451

TOTAL EQUITIES 69,071,207 80,269,954


800,000 Government of Canada 0.00% Oct. 06, 2016 798,952 799,1451,050,000 Government of Canada 0.00% Sep 22, 2016 1,048,594 1,048,615

1,847,546 1,847,760


OTHER ASSETS, LESS LIABILITIES – (0.3%) (275,205)

NET ASSETS – 100.0% 81,842,509



CA

NA

DIA

NE

QU

ITY

FUN

DS

43




The Fund’s investment objective is to achieve superior long termreturns through capital growth by investing primarily in stocks of smalland medium capitalization Canadian corporations.






($)


1,847,760 –

As at June 30, 2016, had the prevailing interest rates increased ordecreased by 0.25%, assuming a parallel shift in the yield curve and allother variables held constant, net assets attributable to holders ofredeemable units would have decreased or increased, respectively, by$1,138 or approximately 0.0% (December 31, 2015 – $876 orapproximately 0.0%).

ii) Currency risk


June 30, 2016

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 866,273 1.1 86,627 0.1

866,273 1.1 86,627 0.1

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 693,126 1.0 69,313 0.1

693,126 1.0 69,313 0.1

iii) Price risk

Price risk is the risk that the carrying value of financial instrumentswill fluctuate as a result of changes in market prices (other than thosearising from interest rate risk or currency risk) caused by factors

specific to a security, its issuer or all factors affecting a market or amarket segment. Exposure to price risk is mainly in equities,underlying funds, derivatives and commodities, as applicable. As atJune 30, 2016, approximately 98.0% (December 31, 2015 – 97.0%) ofthe Fund’s net assets were exposed to price risk. If prices of theseinstruments had decreased or increased by 10%, with all othervariables held constant, net assets of the Fund would have decreasedor increased, respectively, by approximately $8,026,995 (December 31,2015 – $6,666,791). In practice, actual results may differ from thissensitivity analysis and the difference could be material.

iv) Credit risk


June 30, 2016 December 31, 2015

Credit ratings


ratedinstruments

(%)


(%)


ratedinstruments

(%)


(%)


100.0 2.3 – –




June 30, 2016 December 31, 2015

Consumer Discretionary 5.8 10.6Consumer Staples 6.7 6.4Energy 19.0 16.1Financials 16.9 27.2Health Care 0.1 0.7Industrials 12.9 9.7Information Technology 7.1 8.4Materials 22.5 13.9Money Market Instruments 2.3 2.7Telecommunication Services 1.4 1.3Utilities 5.6 2.7




($)Level 2

($)Level 3

($)Total($)

Equities 79,575,377 694,577 – 80,269,954Money market instruments – 1,847,760 – 1,847,760

79,575,377 2,542,337 – 82,117,714


($)Level 2

($)Level 3

($)Total($)


66,667,909 1,848,418 – 68,516,327


CA

NA

DIA

NE

QU

ITY

FUN

DS

44












CA

NA

DIA

NE

QU

ITY

FUN

DS

45

Scotia Private Canadian Growth Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 187,494,537 158,334,112Cash 57,964 20,426Subscriptions receivable 535,937 85,227Accrued investment income and other 272,037 166,826

188,360,475 158,606,591

LIABILITIESCurrent liabilitiesManagement fee payable 592 –Payable for securities purchased 1,456,038 95,451Redemptions payable 122,024 17,369Accrued expenses 24,191 195

1,602,845 113,015








Dividends 1,958,797 2,722,852Interest for distribution purposes 3,294 39,913Net realized gain (loss) on non-derivative financial assets 1,227,782 56,486,139Change in unrealized gain (loss) on non-derivative

financial assets 4,737,437 (35,920,991)


(loss) (390) 43,138Other income 688 –


EXPENSESManagement fees (note 5) 3,260 5,184Fixed administration fees (note 6) 124,774 135,187Independent Review Committee fees 563 241Interest expense and bank overdraft charges 307 –Other fund costs 32 –Harmonized Sales Tax/Goods and Services Tax 13,099 14,337Transaction costs 90,962 138,148




Pinnacle Series 7,183,515 7,538,799Series F 12,223 57,104Series I 508,531 15,505,907



WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESPinnacle Series 11,219,882 8,489,449Series F 44,690 65,438Series I 759,983 10,757,109


The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Manulife Asset Management

CA

NA

DIA

NE

QU

ITY

FUN

DS

46

Scotia Private Canadian Growth Pool (Unaudited – Continued)



Pinnacle Series 147,021,366 122,999,468Series F 736,020 1,112,085Series I 10,736,190 207,069,733

158,493,576 331,181,286



7,704,269 23,101,810


Pinnacle Series – (3)Series I – (1,743,087)

– (1,743,090)



Reinvested distributionsPinnacle Series – 3Series I – 1,743,087

Payments on redemptionPinnacle Series (20,828,678) (12,464,602)Series F (166,486) (396,191)Series I (2,157,900) (229,400,942)

20,559,785 (200,907,943)


Pinnacle Series 28,142,822 16,060,319Series F (50,299) (251,407)Series I 171,531 (195,358,135)

28,264,054 (179,549,223)



186,757,630 151,632,063




Non-cash transactions (93,186) –Net realized (gain) loss on non-derivative financial

assets (1,227,782) (56,486,139)Unrealized foreign currency translation (gain) loss 37 (5,001)Change in unrealized (gain) loss on non-derivative

financial assets (4,737,437) 35,920,991Purchases of portfolio investments (393,386,666) (682,239,343)Proceeds from sale of portfolio investments 371,554,271 881,979,085Transaction costs 90,962 138,148Accrued investment income and other receivables (105,211) 115,926Accrued expenses and other payables 24,588 21,733



Net cash provided by (used in) financing activities 20,213,730 (202,606,729)Unrealized foreign currency translation gain (loss) (37) 5,001Net increase (decrease) in cash 37,575 (59,519)Cash (bank overdraft), beginning of period 20,426 70,558


Interest paid(1) 307 –Interest received(1) 3,396 40,006Dividends received, net of withholding taxes(1) 1,853,485 2,838,683



CA

NA

DIA

NE

QU

ITY

FUN

DS

47



AverageCost ($)

CarryingValue ($)


44,330 Dollarama Inc. 1,873,983 3,998,566120,910 Gildan Activewear Inc. 3,610,009 4,575,234100,260 Magna International Inc. 4,121,695 4,546,79194,420 Restaurant Brands International Inc. 4,385,232 5,077,908

13,990,919 18,198,499

Consumer Staples – 8.1%123,530 Alimentation Couche-Tard Inc., Class B 3,874,068 6,853,44466,980 Loblaw Companies Limited 3,824,367 4,628,98897,220 Saputo Inc. 2,821,986 3,730,331

10,520,421 15,212,763

Energy – 20.3%255,830 Canadian Natural Resources Ltd. 9,000,518 10,197,384184,610 Cenovus Energy Inc. 3,192,515 3,298,981183,160 Crescent Point Energy Corporation 3,476,374 3,738,29651,590 Imperial Oil Ltd. 2,335,512 2,108,99996,360 Peyto Exploration & Development

Corporation 3,202,780 3,341,765164,730 Seven Generations Energy Ltd. 2,821,889 4,062,242222,380 Suncor Energy, Inc. 8,102,022 7,970,099321,670 Whitecap Resources, Inc. 3,424,053 3,178,100

35,555,663 37,895,866

Financials – 29.0%137,510 Bank of Nova Scotia, The 7,778,358 8,705,758172,590 Brookfield Asset Management Inc., Class A 6,047,110 7,376,49761,100 Chartwell Seniors Housing Real Estate

Investment Trust 935,311 963,547222,620 Element Financial Corporation 3,279,839 3,049,89440,890 Intact Financial Corporation 2,755,949 3,773,738

161,110 Royal Bank of Canada 11,443,849 12,299,137131,090 Sun Life Financial Inc. 4,858,481 5,563,460225,540 Toronto-Dominion Bank, The 10,305,475 12,512,959

47,404,372 54,244,990

Industrials – 8.9%116,720 Canadian National Railway Company 6,695,409 8,904,56930,020 Canadian Pacific Railway Limited 5,913,322 4,993,227

131,630 WestJet Airlines Ltd. 2,907,786 2,774,760

15,516,517 16,672,556

Information Technology – 7.3%74,610 CGI Group Inc., Class A 2,648,705 4,117,7267,010 Constellation Software Inc. 1,758,365 3,505,070

108,430 Descartes Systems Group Inc., The 1,917,574 2,679,30582,890 Shopify Inc., Class A 2,781,811 3,295,706

9,106,455 13,597,807

Materials – 12.5%24,110 Agnico-Eagle Mines Limited 1,255,991 1,666,96515,340 Agrium Inc. 1,603,113 1,793,093

123,790 Barrick Gold Corporation 2,515,941 3,414,12914,840 CCL Industries Inc., Class B 2,673,614 3,336,62629,970 Detour Gold Corporation 757,539 968,630

329,320 Eldorado Gold Corporation 1,697,404 1,913,34922,210 Franco-Nevada Corporation 1,197,680 2,181,91088,000 Goldcorp, Inc. 1,872,607 2,175,360

281,310 Kinross Gold Corporation 1,872,441 1,783,50552,130 Methanex Corporation 2,576,003 1,959,567

107,800 Tahoe Resources Inc. 1,815,699 2,085,930

19,838,032 23,279,064

TOTAL EQUITIES 151,932,379 179,101,545


AverageCost ($)

CarryingValue ($)

MONEY MARKET INSTRUMENTS – 4.5%Commercial Paper – 2.1%3,900,000 Banner Trust 0.65% Jul 04, 2016 3,899,722 3,899,791

Treasury Bills – 2.4%4,500,000 Government of Canada

0.57% Oct 06, 2016 4,489,065 4,493,201


OTHER ASSETS, LESS LIABILITIES – (0.4%) (736,907)

NET ASSETS – 100.0% 186,757,630


CA

NA

DIA

NE

QU

ITY

FUN

DS

48




The Fund’s objective is to achieve superior long term returns throughcapital growth by investing primarily in stocks of large and mediumcapitalization Canadian corporations.






($)


8,392,992 –

As at June 30, 2016, had the prevailing interest rates increased ordecreased by 0.25%, assuming a parallel shift in the yield curve and allother variables held constant, net assets attributable to holders ofredeemable units would have decreased or increased, respectively, by$3,009 or approximately 0.0% (December 31, 2015 – $316 orapproximately 0.0%).

ii) Currency risk


iii) Price risk


iv) Credit risk


June 30, 2016 December 31, 2015

Credit ratings


ratedinstruments

(%)


(%)


ratedinstruments

(%)


(%)


100.0 4.5 – –




June 30, 2016 December 31, 2015

Consumer Discretionary 9.8 12.9Consumer Staples 8.1 10.1Energy 20.3 13.9Financials 29.0 29.6Health Care – 5.1Industrials 8.9 9.7Information Technology 7.3 9.0Materials 12.5 6.4Money Market Instruments 4.5 3.2




($)Level 2

($)Level 3

($)Total($)


179,101,545 8,392,992 – 187,494,537


($)Level 2

($)Level 3

($)Total($)


153,334,682 4,999,430 – 158,334,112






CA

NA

DIA

NE

QU

ITY

FUN

DS

49








CA

NA

DIA

NE

QU

ITY

FUN

DS

50

Scotia Private Canadian Small Cap Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 578,848,517 539,539,403Cash 23,794,535 21,421,296Receivable for securities sold 293,299 2,045,316Subscriptions receivable 302,496 61,019Accrued investment income and other 996,246 1,169,264

604,235,093 564,236,298

LIABILITIESCurrent liabilitiesManagement fee payable 1,555 –Payable for securities purchased – 1,901,190Redemptions payable 116,670 5,079Accrued expenses 32,205 172

150,430 1,906,441









financial assets (10,530,489) 20,885,616

Net gain (loss) on investments 5,517,976 50,899,213Securities lending 37,651 41,352Other income 128 234


EXPENSESManagement fees (note 5) 5,813 7,047Fixed administration fees (note 6) 168,975 155,457Independent Review Committee fees 563 417Other fund costs 105 –Harmonized Sales Tax/Goods and Services Tax 17,628 16,407Transaction costs 378,845 385,475




Pinnacle Series 688,111 5,985,835Series F (27,489) 113,551Series I 4,323,204 44,276,610


Pinnacle Series 0.26 2.75Series F (0.77) 2.72Series I 0.29 3.01



The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Van Berkom & Associates Inc.

CA

NA

DIA

NE

QU

ITY

FUN

DS

51

Scotia Private Canadian Small Cap Pool (Unaudited – Continued)




562,329,857 538,565,880


Pinnacle Series 688,111 5,985,835Series F (27,489) 113,551Series I 4,323,204 44,276,610

4,983,826 50,375,996


Pinnacle Series – (8)Series I – (4,046,636)

– (4,046,644)


Pinnacle Series 20,327,477 9,051,054Series F 1,022,805 52,295Series I 52,168,440 38,457,520

Reinvested distributionsPinnacle Series – 8Series I – 4,046,636


36,770,980 (51,845,953)


Pinnacle Series 10,880,660 8,693,873Series F 739,552 (765,906)Series I 30,134,594 (13,444,568)

41,754,806 (5,516,601)



604,084,663 533,049,279




Non-cash transactions (2,222,677) –Net realized (gain) loss on non-derivative financial

assets (8,305,871) (24,657,739)Change in unrealized (gain) loss on non-derivative

financial assets 10,530,489 (20,885,616)Purchases of portfolio investments (112,595,867) (69,444,524)Proceeds from sale of portfolio investments 72,756,794 112,934,188Transaction costs 378,845 385,475Accrued investment income and other receivables 173,018 245,872Accrued expenses and other payables 33,588 30,976



Net cash provided by (used in) financing activities 36,641,094 (55,819,604)Net increase (decrease) in cash 2,373,239 (6,834,976)Cash (bank overdraft), beginning of period 21,421,296 23,877,360


Interest received(1) 67,760 93,110Dividends received, net of withholding taxes(1) 7,847,853 5,508,618



CA

NA

DIA

NE

QU

ITY

FUN

DS

52



AverageCost ($)

CarryingValue ($)

EQUITIES – 95.8%Consumer Discretionary – 5.8%1,270,517 Canadian Satellite Radio Holdings Inc. 8,899,243 5,806,263

16,739 Cara Operations Ltd. 469,797 503,007792,391 Leon’s Furniture Ltd. 11,780,976 11,988,876

1,081,150 Martinrea International Inc. 12,008,854 8,649,200186,672 MTY Food Group Inc. 4,054,748 8,103,432

37,213,618 35,050,778

Consumer Staples – 4.7%279,220 Alimentation Couche-Tard Inc., Class B 8,509,281 15,491,126677,675 High Liner Foods Inc. 11,262,203 12,774,174

19,771,484 28,265,300

Energy – 18.8%2,909,536 Canadian Energy Services & Technology

Corporation 11,935,697 11,841,8122,398,664 Canyon Services Group Inc 15,718,919 13,552,4521,499,668 Enerflex Ltd. 19,951,975 16,016,4542,345,764 Kelt Exploration Ltd. 15,705,216 11,095,4641,252,884 Mullen Group Limited 26,308,135 17,665,6642,418,741 NuVista Energy Ltd. 14,355,233 15,117,131

116,550 NuVista Energy Ltd. Restricted 680,652 676,139267,550 Peyto Exploration & Development Corporation 8,023,090 9,278,634

1,041,538 Secure Energy Services Inc. 7,486,819 9,196,781995,648 ZCL Composites Inc. 6,105,232 8,930,963

126,270,968 113,371,494

Financials – 14.1%1,053,540 Canadian Western Bank 26,393,610 25,969,761

415,713 Colliers International Group Inc. 11,779,735 18,341,258225,614 Equitable Group Inc. 8,865,942 12,632,128326,697 Equity Financial Holdings, Inc. 3,175,850 3,413,984416,213 FirstService Corporation 7,190,423 24,594,026

57,405,560 84,951,157

Health Care – 2.3%832,366 Knight Therapeutics Inc. 5,180,779 6,908,638229,597 New Look Eyewear Inc. 5,688,380 7,149,651

10,869,159 14,058,289

Industrials – 24.7%1,675,044 ATS Automation Tooling Systems Inc. 20,052,087 16,281,428

547,163 Cervus Equipment Corporation 10,015,920 6,161,055542,719 Exactearth Ltd 2,133,227 754,379

1,255,650 Exco Technologies Ltd. 12,800,631 15,318,930648,684 GDI Integrated Facility Services Inc. 9,707,499 8,368,024

5,127,031 Horizon North Logistics Inc. 19,044,284 8,305,790179,427 MacDonald, Dettwiler and Associates Ltd. 14,757,016 15,120,313823,518 Richelieu Hardware Ltd. 10,446,966 20,876,181283,608 Russel Metals Inc. 5,946,774 6,488,951440,466 Stantec Inc. 8,748,294 13,799,800616,492 Toromont Industries Ltd. 16,252,017 23,204,755383,900 WSP Global Inc. 11,707,097 15,171,728

141,611,812 149,851,334

Information Technology – 7.8%1,611,346 Absolute Software Corporation 11,711,867 11,134,401

294,830 Descartes Systems Group Inc., The 3,106,183 7,285,249521,805 Enghouse Systems Limited 16,658,850 28,589,696

1,862 Tucows Inc., Class A 57,339 58,430

31,534,239 47,067,776


AverageCost ($)

CarryingValue ($)


873,939 Canam Group Inc., Class A 9,865,708 11,387,425123,474 CCL Industries Inc., Class B 11,316,035 27,761,894258,000 Interfor Corporation 3,922,768 2,856,060

1,628,201 Major Drilling Group International Inc. 10,698,145 12,732,532579,682 Stella-Jones Inc. 11,399,313 27,888,501497,282 Winpak Ltd. 10,170,349 23,605,977

57,372,318 106,232,389



NET ASSETS – 100.0% 604,084,663


CA

NA

DIA

NE

QU

ITY

FUN

DS

53




The Fund’s investment objective is to achieve superior long termreturns through capital growth by investing primarily in stocks of smalland medium capitalization Canadian corporations.



The majority of the Fund’s financial instruments were non-interestbearing as at June 30, 2016 and December 31, 2015. Accordingly, theFund is not directly subject to significant risk due to fluctuations inthe prevailing levels of market interest rates.

ii) Currency risk


iii) Price risk


iv) Credit risk

The Fund had no significant exposure to bonds and debentures, moneymarket instruments or preferred shares as at June 30, 2016 orDecember 31, 2015.




June 30, 2016 December 31, 2015

Consumer Discretionary 5.8 5.1Consumer Staples 4.7 6.5Energy 18.8 12.9Financials 14.1 13.2Health Care 2.3 1.9Industrials 24.7 24.3Information Technology 7.8 12.8Materials 17.6 19.3




($)Level 2

($)Level 3

($)Total($)

Equities 578,172,378 676,139 – 578,848,517

578,172,378 676,139 – 578,848,517


($)Level 2

($)Level 3

($)Total($)

Equities 539,539,403 – – 539,539,403

539,539,403 – – 539,539,403









June 30, 2016 December 31, 2015


($)

Net assetsper unit

($)


($)

Net assetsper unit

($)

Pinnacle Series 33.36 33.36 33.43 33.46Series F 34.01 34.01 34.25 34.27Series I 34.54 34.54 34.58 34.60


CA

NA

DIA

NE

QU

ITY

FUN

DS

54

Scotia Private U.S. Value Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 88,258,833 95,070,143Cash 4,352,358 4,811,685Subscriptions receivable 257,415 46,146Accrued investment income and other 127,249 94,989

92,995,855 100,022,963

LIABILITIESCurrent liabilitiesManagement fee payable 344 –Redemptions payable 40,420 7,860Accrued expenses 16,763 216

57,527 8,076








Dividends 1,099,918 2,262,943Interest for distribution purposes 8,911 858Net realized gain (loss) on non-derivative financial assets (4,383,409) 73,118,737Change in unrealized gain (loss) on non-derivative financial

assets (4,295,902) (47,662,977)

Net gain (loss) on investments (7,570,482) 27,719,561Securities lending 10,470 18,740Net realized and unrealized foreign currency translation gain

(loss) (96,099) (807,336)Other income 128 –

Total income (loss), net (7,655,983) 26,930,965



Increase (decrease) in net assets attributable to holders ofredeemable units from operations (7,946,254) 26,319,618


Pinnacle Series (7,430,313) 5,259,512Series F (41,516) 29,563Series I (474,425) 21,030,543


Pinnacle Series (1.22) 1.01Series F (1.40) 1.30Series I (1.36) 2.22

WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESPinnacle Series 6,069,857 5,224,610Series F 29,553 22,815Series I 348,138 9,464,529


The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Herndon Capital Management, LLC

FOR

EIG

NE

QU

ITY

FUN

DS

55

Scotia Private U.S. Value Pool (Unaudited – Continued)




100,014,887 284,274,160


Pinnacle Series (7,430,313) 5,259,512Series F (41,516) 29,563Series I (474,425) 21,030,543

(7,946,254) 26,319,618


Pinnacle Series – (9)



Reinvested distributionsPinnacle Series – 9


869,695 (220,700,839)


Pinnacle Series (5,670,915) 11,321,847Series F (85,149) (148,181)Series I (1,320,495) (205,554,896)

(7,076,559) (194,381,230)



92,938,328 89,892,930



redeemable units (7,946,254) 26,319,618Adjustments for:

Net realized (gain) loss on non-derivative financial assets 4,383,409 (73,118,737)Unrealized foreign currency translation (gain) loss 70,379 (354,799)Change in unrealized (gain) loss on non-derivative

financial assets 4,295,902 47,662,977Purchases of portfolio investments (26,861,891) (111,733,824)Proceeds from sale of portfolio investments 24,950,084 322,839,752Transaction costs 43,806 177,121Accrued investment income and other receivables (32,260) 90,095Accrued expenses and other payables 16,891 18,536



Net cash provided by (used in) financing activities 690,986 (220,763,577)Unrealized foreign currency translation gain (loss) (70,379) 354,799Net increase (decrease) in cash (388,948) (8,862,838)Cash (bank overdraft), beginning of period 4,811,685 13,453,411


Interest paid(1) 1 603Interest received(1) 7,753 820Dividends received, net of withholding taxes(1) 924,173 2,048,453



FOR

EIG

NE

QU

ITY

FUN

DS

56



AverageCost ($)

CarryingValue ($)


9,764 Ross Stores, Inc. 509,619 716,47737,429 TJX Companies, Inc., The 2,333,627 3,740,9149,221 Yum! Brands, Inc. 821,325 989,524

3,664,571 5,446,915

Consumer Staples – 10.2%45,023 Altria Group, Inc. 2,191,102 4,018,82723,404 Campbell Soup Company 1,595,172 2,015,46626,037 Philip Morris International Inc. 2,500,519 3,428,192

6,286,793 9,462,485

Energy – 9.2%45,384 Devon Energy Corporation 1,474,283 2,129,50548,820 Marathon Petroleum Corporation 2,271,030 2,398,78734,716 Oceaneering International, Inc. 1,458,749 1,341,7985,946 Tesoro Corporation 727,147 576,621

32,546 Valero Energy Corporation 2,031,597 2,148,501

7,962,806 8,595,212

Financials – 25.4%29,834 American Express Company 2,883,632 2,346,37350,057 CB Richard Ellis Group, Inc. 1,799,953 1,715,73640,502 CBOE Holdings Inc. 2,256,666 3,492,60033,631 Discover Financial Services 1,936,331 2,333,52746,469 Eaton Vance Corporation 2,039,973 2,125,67949,298 Federated Investors, Inc., Class B 1,875,381 1,836,48758,520 Franklin Resources, Inc. 2,930,312 2,528,85217,900 Moody’s Corporation 2,019,000 2,171,23520,251 S&P Global Inc. 1,932,844 2,812,63967,039 Synchrony Financial 2,337,582 2,193,675

22,011,674 23,556,803

Health Care – 6.6%36,163 AbbVie Inc. 2,885,333 2,897,26215,007 Gilead Sciences, Inc. 1,685,685 1,620,43628,388 Mylan NV 1,753,604 1,588,870

6,324,622 6,106,568

Industrials – 10.3%10,487 Lockheed Martin Corporation 1,841,295 3,370,44318,262 Rockwell Collins, Inc. 1,821,066 2,012,56422,963 United Parcel Service, Inc., Class B 2,580,539 3,202,23511,753 United Rentals, Inc. 930,188 1,020,796

7,173,088 9,606,038

Information Technology – 18.6%14,646 Accenture PLC, Class A 1,942,049 2,147,7244,882 Alliance Data Systems Corporation 1,845,391 1,237,467

20,613 Apple Inc. 2,318,811 2,550,74419,528 Harris Corporation 1,994,748 2,108,734

114,637 Hewlett Packard Enterprise Company 2,355,596 2,711,01086,601 HP Inc. 1,866,171 1,406,80715,911 MasterCard, Inc., Class A 1,904,500 1,814,43438,152 Western Digital Corporation 2,856,696 2,333,88240,706 Western Union Company 903,766 1,010,590

17,987,728 17,321,392

Materials – 5.4%30,015 CF Industries Holdings, Inc. 1,683,028 936,31818,443 LyondellBasell Industries NV, Class A – ADR 2,040,502 1,776,5974,339 NewMarket Corporation 1,840,613 2,326,450

5,564,143 5,039,365


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Utilities – 3.4%

193,391 AES Corporation, The 2,874,846 3,124,055



NET ASSETS – 100.0% 92,938,328


FOR

EIG

NE

QU

ITY

FUN

DS

57




The Fund’s objective is to achieve superior long term returns throughcapital growth by investing primarily in stocks of large capitalizationU.S. corporations.




ii) Currency risk


June 30, 2016

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 92,562,305 99.6 9,256,231 10.0

92,562,305 99.6 9,256,231 10.0

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 99,804,172 99.8 9,980,417 10.0

99,804,172 99.8 9,980,417 10.0

iii) Price risk

Price risk is the risk that the carrying value of financial instrumentswill fluctuate as a result of changes in market prices (other than thosearising from interest rate risk or currency risk) caused by factorsspecific to a security, its issuer or all factors affecting a market or amarket segment. Exposure to price risk is mainly in equities,underlying funds, derivatives and commodities, if applicable. As atJune 30, 2016, approximately 95.0% (December 31, 2015 – 95.1%) ofthe Fund’s net assets were exposed to price risk. If prices of theseinstruments had decreased or increased by 10%, with all othervariables held constant, net assets of the Fund would have decreasedor increased, respectively, by approximately $8,825,883 (December 31,2015 – $9,507,014). In practice, actual results may differ from thissensitivity analysis and the difference could be material.

iv) Credit risk





June 30, 2016 December 31, 2015

Consumer Discretionary 5.9 5.2Consumer Staples 10.2 7.5Energy 9.2 14.8Financials 25.4 23.1Health Care 6.6 9.0Industrials 10.3 12.8Information Technology 18.6 16.7Materials 5.4 6.0Utilities 3.4 –




($)Level 2

($)Level 3

($)Total($)

Equities 88,258,833 – – 88,258,833

88,258,833 – – 88,258,833


($)Level 2

($)Level 3

($)Total($)

Equities 95,070,143 – – 95,070,143

95,070,143 – – 95,070,143










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Scotia Private U.S. Mid Cap Value Pool (Unaudited)



2016December 31,

2015



113,830,683 73,097,779

LIABILITIESCurrent liabilitiesManagement fee payable 26,832 –Payable for securities purchased 1,066,066 –Redemptions payable 687,524 23,887Accrued expenses 28,492 25

1,808,914 23,912








Dividends 649,707 205,045Interest for distribution purposes 15,071 803Net realized gain (loss) on non-derivative financial assets (1,058,337) 841,718Change in unrealized gain (loss) on non-derivative financial

assets (1,590,125) 2,884,458

Net gain (loss) on investments (1,983,684) 3,932,024Securities lending 1,085 100Net realized and unrealized foreign currency translation gain

(loss) (993,903) 88,113Other income 162 –


EXPENSESManagement fees (note 5) 148,248 53,548Fixed administration fees (note 6) 135,076 40,874Independent Review Committee fees 562 23Foreign withholding taxes/tax reclaims 84,699 28,163Other fund costs 19 –Harmonized Sales Tax/Goods and Services Tax 29,449 9,917Transaction costs 62,136 4,837




Pinnacle Series (680,163) 1,588,765Series F (13,935) 27,387Series I (64,434) 43,928Series M (2,677,997) 2,222,795


Pinnacle Series (0.22) 1.73Series F (0.74) 1.69Series I (0.22) 1.05Series M (0.73) 1.68

WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESPinnacle Series 3,097,463 920,053Series F 18,705 16,210Series I 295,667 41,686Series M 3,649,317 1,319,718


The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Hahn Capital Management, LLC

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Scotia Private U.S. Mid Cap Value Pool (Unaudited – Continued)



Pinnacle Series 13,663,796 12,234,412Series F 287,289 216,440Series I 1,516,440 119,986Series M 57,606,342 17,331,579

73,073,867 29,902,417


Pinnacle Series (680,163) 1,588,765Series F (13,935) 27,387Series I (64,434) 43,928Series M (2,677,997) 2,222,795

(3,436,529) 3,882,875


Pinnacle Series 44,266,237 1,124,404Series F 67,240 39,695Series I 3,715,950 912,350Series M 3,441,795 2,427,764

Payments on redemptionPinnacle Series (2,359,924) (1,274,412)Series F (51,252) (62,325)Series I (253,750) –Series M (6,441,865) (1,566,506)

42,384,431 1,600,970


Pinnacle Series 41,226,150 1,438,757Series F 2,053 4,757Series I 3,397,766 956,278Series M (5,678,067) 3,084,053

38,947,902 5,483,845



112,021,769 35,386,262




Net realized (gain) loss on non-derivative financial assets 1,058,337 (841,718)Unrealized foreign currency translation (gain) loss 1,280,953 (105,763)Change in unrealized (gain) loss on non-derivative financial

assets 1,590,125 (2,884,458)Purchases of portfolio investments (50,152,278) (4,293,998)Proceeds from sale of portfolio investments 10,366,463 2,734,530Transaction costs 62,136 4,837Accrued investment income and other receivables (11,810) (855)Accrued expenses and other payables 55,299 19,217



Net cash provided by (used in) financing activities 42,888,225 1,521,585Unrealized foreign currency translation gain (loss) (1,280,953) 105,763Net increase (decrease) in cash 3,700,921 36,252Cash (bank overdraft), beginning of period 3,995,702 1,626,443


Interest received(1) 14,005 746Dividends received, net of withholding taxes(1) 554,265 176,084



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AverageCost ($)

CarryingValue ($)


38,567 Carter’s Inc. 4,427,917 5,315,09386,542 Hanesbrands Inc. 3,472,734 2,815,05718,977 Mohawk Industries, Inc. 4,200,493 4,661,22428,966 PVH Corporation 3,541,619 3,533,01568,928 Ross Stores, Inc. 4,146,728 5,057,896

19,789,491 21,382,285

Consumer Staples – 4.3%101,588 Kroger Co., The 4,487,429 4,837,712

Energy – 2.6%14,878 Pioneer Natural Resources Company 2,648,200 2,913,358

Financials – 18.7%109,909 BankUnited 5,027,477 4,370,411116,041 CB Richard Ellis Group, Inc. 4,737,599 3,977,38158,478 CIT Group, Inc. 2,826,944 2,415,38943,957 First Republic Bank 3,440,509 3,981,427

115,415 Host Hotels & Resorts Inc. 2,485,797 2,421,65960,900 SEI Investments Company 3,358,120 3,792,455

21,876,446 20,958,722

Health Care – 12.0%59,328 Agilent Technologies, Inc. 3,091,320 3,405,43230,372 Amsurg Corporation 3,071,202 3,049,54421,539 Becton, Dickinson and Company 4,216,490 4,728,17513,421 Laboratory Corporation of America Holdings 2,215,077 2,263,065

12,594,089 13,446,216

Industrials – 25.2%19,065 Carlisle Cos Inc. 2,287,885 2,607,939

114,004 Convanta Holding Corporation 2,477,983 2,427,46926,585 EMCOR Group, Inc. 1,633,629 1,695,11480,318 Hexcel Corporation 4,396,562 4,326,95930,298 IDEX Corporation 2,820,090 3,220,94781,140 Jacobs Engineering Group, Inc. 4,365,476 5,231,4178,209 Roper Technologies Inc. 1,680,940 1,812,746

19,189 Snap-on Incorporated 4,201,457 3,919,96532,984 Wabtec Corporation 3,302,977 2,998,429

27,166,999 28,240,985

Information Technology – 7.4%49,940 Euronet Worldwide, Inc. 4,267,110 4,472,596

101,303 Keysight Technologies Inc. 3,780,178 3,814,467

8,047,288 8,287,063

Materials – 6.3%24,972 Albemarle Corporation 1,748,037 2,578,46244,843 Reliance Steel & Aluminum Co. 3,454,095 4,464,507

5,202,132 7,042,969



NET ASSETS – 100.0% 112,021,769


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The Fund’s investment objective is to achieve superior long termreturns through capital growth by investing primarily in stocks of smalland medium capitalization companies located in the U.S.




ii) Currency risk


June 30, 2016

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 113,378,261 101.2 11,337,826 10.1

113,378,261 101.2 11,337,826 10.1

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 71,684,998 98.1 7,168,500 9.8

71,684,998 98.1 7,168,500 9.8

iii) Price risk


iv) Credit risk




Percentages

June 30, 2016 December 31, 2015

Consumer Discretionary 19.1 18.7Consumer Staples 4.3 4.8Energy 2.6 3.3Financials 18.7 23.4Health Care 12.0 8.7Industrials 25.2 23.7Information Technology 7.4 7.3Materials 6.3 4.5




($)Level 2

($)Level 3

($)Total($)

Equities 107,109,310 – – 107,109,310

107,109,310 – – 107,109,310


($)Level 2

($)Level 3

($)Total($)

Equities 68,968,027 – – 68,968,027

68,968,027 – – 68,968,027




As at June 30, 2016 or December 31, 2015, the Fund did not enter into anyagreement whereby the financial instruments were eligible for offset.





June 30, 2016 December 31, 2015


($)

Net assetsper unit

($)


($)

Net assetsper unit

($)

Pinnacle Series 14.94 14.95 15.65 15.65Series F 14.76 14.76 15.50 15.50Series I 15.52 15.52 16.23 16.23Series M 14.84 14.84 15.56 15.56


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62

Scotia Private U.S. Mid Cap Growth Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 58,909,417 78,720,910Cash 2,140,440 1,711,374Receivable for securities sold 1,211,537 –Subscriptions receivable 44,116 84,558Accrued investment income and other 14,395 7,958

62,319,905 80,524,800

LIABILITIESCurrent liabilitiesManagement fee payable 26,279 –Payable for securities purchased 696,420 57,501Redemptions payable 667,920 26,200Accrued expenses 6,353 50

1,396,972 83,751



Pinnacle Series 8,861,923 21,355,729Series F 210,220 262,085Series M 51,850,790 58,823,235


Pinnacle Series 29.58 31.66Series F 28.33 30.40Series M 29.40 31.50



Dividends 222,958 498,890Interest for distribution purposes 3,538 1,033Net realized gain (loss) on non-derivative financial assets (543,982) 40,330,097Change in unrealized gain (loss) on non-derivative financial

assets (4,667,000) (20,043,677)


(loss) 11,991 474,378


EXPENSESManagement fees (note 5) 147,177 54,476Fixed administration fees (note 6) 39,119 75,849Independent Review Committee fees 563 136Interest expense and bank overdraft charges 759 –Foreign withholding taxes/tax reclaims 33,124 24,843Other fund costs 11 –Harmonized Sales Tax/Goods and Services Tax 19,627 13,084Transaction costs 21,767 86,653




Pinnacle Series (1,264,736) 1,807,925Series F (17,691) 21,493Series I – 17,044,992Series M (3,948,825) 2,153,638


Pinnacle Series (3.62) 3.14Series F (2.08) 3.13Series I – 3.25Series M (2.15) 3.22

WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESPinnacle Series 349,478 575,243Series F 8,519 6,866Series I – 5,244,818Series M 1,836,119 668,207


The accompanying notes are an integral part of the financial statements. Portfolio Adviser: William Blair & Company L.L.C

FOR

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63

Scotia Private U.S. Mid Cap Growth Pool (Unaudited – Continued)



Pinnacle Series 21,355,729 14,814,476Series F 262,085 142,998Series I – 141,774,132Series M 58,823,235 17,189,876

80,441,049 173,921,482


Pinnacle Series (1,264,736) 1,807,925Series F (17,691) 21,493Series I – 17,044,992Series M (3,948,825) 2,153,638

(5,231,252) 21,028,048


Series I – (249,749)


Pinnacle Series 1,100,464 4,062,750Series F 24,648 43,981Series I – 5,684,450Series M 3,450,318 2,979,077

Reinvested distributionsSeries I – 249,749

Payments on redemptionPinnacle Series (12,329,534) (2,138,111)Series F (58,822) (25,017)Series I – (164,503,574)Series M (6,473,938) (1,558,927)

(14,286,864) (155,205,622)


Pinnacle Series (12,493,806) 3,732,564Series F (51,865) 40,457Series I – (141,774,132)Series M (6,972,445) 3,573,788

(19,518,116) (134,427,323)


Pinnacle Series 8,861,923 18,547,040Series F 210,220 183,455Series M 51,850,790 20,763,664

60,922,933 39,494,159




Net realized (gain) loss on non-derivative financial assets 543,982 (40,330,097)Unrealized foreign currency translation (gain) loss 115,297 (464,297)Change in unrealized (gain) loss on non-derivative

financial assets 4,667,000 20,043,677Purchases of portfolio investments (19,787,684) (55,462,994)Proceeds from sale of portfolio investments 33,793,810 205,678,435Transaction costs 21,767 86,653Accrued investment income and other receivables (6,437) 1,121Accrued expenses and other payables 32,582 24,471

Net cash provided by (used in) operating activities 14,149,065 150,605,017


Net cash provided by (used in) financing activities (13,604,702) (155,530,047)Unrealized foreign currency translation gain (loss) (115,297) 464,297Net increase (decrease) in cash 544,363 (4,925,030)Cash (bank overdraft), beginning of period 1,711,374 6,087,938


Interest paid(1) 759 –Interest received(1) 3,823 859Dividends received, net of withholding taxes(1) 183,111 475,344



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AverageCost ($)

CarryingValue ($)


20,691 BorgWarner, Inc. 1,258,279 790,6168,770 Brunswick Corporation 578,020 514,4671,040 Chipotle Mexican Grill, Inc. 792,017 542,185

16,309 Dollar General Corporation 1,357,374 1,984,37138,820 Hanesbrands Inc. 1,496,008 1,262,74533,920 Newell Brands Inc. 1,914,623 2,132,5143,628 O’Reilly Automotive, Inc. 948,169 1,273,317

24,590 Ross Stores, Inc. 1,515,928 1,804,40018,149 Sally Beauty Holdings, Inc. 703,109 690,90113,020 Six Flags Entertainment Corporation 721,664 976,6357,560 Tractor Supply Company 897,773 892,255

12,182,964 12,864,406

Consumer Staples – 5.5%6,160 Herbalife Ltd. 480,175 466,688

11,895 Mead Johnson Nutrition Company 1,296,860 1,397,26517,310 Tyson Foods, Inc. 1,475,245 1,496,499

3,252,280 3,360,452

Energy – 0.8%3,310 Concho Resources Inc. 462,345 511,007

Financials – 8.5%4,750 Affiliated Managers Group, Inc. 1,077,843 864,8944,480 IntercontinentalExchange Inc. 1,421,285 1,484,4329,207 Signature Bank 1,508,999 1,488,7378,210 Willis Towers Watson PLC 1,267,673 1,321,043

5,275,800 5,159,106

Health Care – 19.1%7,650 Align Technology Inc. 531,400 797,6188,876 BioMarin Pharmaceutical Inc. 1,090,339 893,850

17,590 Centene Corporation 1,460,815 1,624,98521,320 Cerner Corporation 1,786,702 1,617,57214,335 DENTSPLY International Inc. 876,847 1,151,1646,568 Idexx Laboratories Inc. 559,094 789,247

23,140 MEDNAX, Inc. 2,107,695 2,169,0012,310 Mettler-Toledo International Inc. 881,547 1,091,1325,040 Perrigo Company PLC 999,454 591,738

15,210 Zoetis Inc. 930,229 934,383

11,224,122 11,660,690

Industrials – 14.0%9,660 Copart Inc. 615,007 612,8153,780 Dun & Bradstreet Corporation, The 620,482 596,1424,550 Equifax Inc. 491,116 756,213

23,610 Old Dominion Freight Line Inc. 1,955,453 1,843,11810,590 Rockwell Collins, Inc. 1,166,967 1,167,0716,060 The Middleby Corporation 803,969 904,0273,200 TransDigm Group Inc. 808,849 1,092,513

14,650 Verisk Analytics, Inc. 1,389,545 1,537,514

7,851,388 8,509,413

Information Technology – 19.7%19,900 Akamai Technologies, Inc. 1,431,747 1,440,67426,730 Booz Allen Hamilton Holding Corporation, Class A 1,019,148 1,025,5226,074 CoStar Group Inc. 1,301,359 1,719,143

30,560 CSRA, Inc. 1,197,273 926,81639,127 Genpact Limited 1,046,706 1,359,33617,640 Guidewire Software Inc. 1,066,205 1,410,17713,684 Maximus Inc. 1,042,262 980,74314,510 Red Hat, Inc. 1,286,408 1,363,55224,617 Vantiv, Inc. 1,268,575 1,803,513

10,659,683 12,029,476


AverageCost ($)

CarryingValue ($)


20,670 Axalta Coating Systems Ltd. 755,097 709,81614,930 Ball Corporation 1,478,025 1,397,0308,720 Vulcan Materials Company 1,107,273 1,358,352

3,340,395 3,465,198

Telecommunication Services – 2.2%9,660 SBA Communications Corporation, Class A 1,255,455 1,349,669



NET ASSETS – 100.0% 60,922,933


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The Fund’s investment objective is to achieve superior long termreturns through capital growth by investing primarily in stocks of smalland medium capitalization companies traded on U.S. stock exchanges.




ii) Currency risk


June 30, 2016

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 60,421,407 99.2 6,042,141 9.9

60,421,407 99.2 6,042,141 9.9

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 78,820,954 98.0 7,882,095 9.8

78,820,954 98.0 7,882,095 9.8

iii) Price risk


iv) Credit risk





June 30, 2016 December 31, 2015

Consumer Discretionary 21.2 24.5Consumer Staples 5.5 1.3Energy 0.8 0.8Financials 8.5 12.3Health Care 19.1 17.5Industrials 14.0 19.0Information Technology 19.7 18.0Materials 5.7 2.2Telecommunication Services 2.2 2.3




($)Level 2

($)Level 3

($)Total($)

Equities 58,909,417 – – 58,909,417

58,909,417 – – 58,909,417


($)Level 2

($)Level 3

($)Total($)

Equities 78,720,910 – – 78,720,910

78,720,910 – – 78,720,910








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June 30, 2016 December 31, 2015


($)

Net assetsper unit

($)


($)

Net assetsper unit

($)

Pinnacle Series 29.58 29.58 31.67 31.66Series F 28.34 28.33 30.40 30.40Series I - - 26.79 26.79Series M 29.40 29.40 26.43 26.43


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67

Scotia Private U.S. Large Cap Growth Pool (Unaudited)



2016December 31,

2015



103,172,343 87,874,716

LIABILITIESCurrent liabilitiesManagement fee payable 1,673 –Redemptions payable 155,842 12,055Accrued expenses 23,591 254

181,106 12,309








Dividends 548,653 424,769Interest for distribution purposes 7,517 790Net realized gain (loss) on non-derivative financial assets 641,680 4,034,096Change in unrealized gain (loss) on non-derivative financial

assets (9,537,309) 5,229,207

Net gain (loss) on investments (8,339,459) 9,688,862Securities lending 5,215 –Net realized and unrealized foreign currency translation gain

(loss) (116,380) 88,283


EXPENSESManagement fees (note 5) 5,219 2,593Fixed administration fees (note 6) 124,459 96,948Independent Review Committee fees 563 54Interest expense and bank overdraft charges – 670Foreign withholding taxes/tax reclaims 109,561 82,642Other fund costs 17 –Harmonized Sales Tax/Goods and Services Tax 13,473 10,522Transaction costs 8,486 4,150




Pinnacle Series (8,054,291) 8,799,279Series F (101,159) 64,848Series I (556,952) 715,439





The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Polen Capital Management

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68

Scotia Private U.S. Large Cap Growth Pool (Unaudited – Continued)




87,862,407 70,408,589



(8,712,402) 9,579,566


Pinnacle Series 31,647,285 9,692,951Series F 1,559,928 31,290Series I 1,149,240 697,009

Payments on redemptionPinnacle Series (10,004,306) (8,119,657)Series F (237,915) (117,936)Series I (273,000) (752,500)

23,841,232 1,431,157


Pinnacle Series 13,588,688 10,372,573Series F 1,220,854 (21,798)Series I 319,288 659,948

15,128,830 11,010,723



102,991,237 81,419,312




Net realized (gain) loss on non-derivative financial assets (641,680) (4,034,096)Unrealized foreign currency translation (gain) loss 428,177 (52,792)Change in unrealized (gain) loss on non-derivative

financial assets 9,537,309 (5,229,207)Purchases of portfolio investments (28,167,676) (7,341,169)Proceeds from sale of portfolio investments 4,164,012 9,489,762Transaction costs 8,486 4,150Accrued investment income and other receivables (7,515) (1,592)Accrued expenses and other payables 25,010 20,407



Net cash provided by (used in) financing activities 23,643,850 1,487,848Unrealized foreign currency translation gain (loss) (428,177) 52,792Net increase (decrease) in cash 277,571 3,922,877Cash (bank overdraft), beginning of period 3,014,805 1,592,787


Interest paid(1) – 670Interest received(1) 6,684 809Dividends received, net of withholding taxes(1) 432,410 340,517(1) Classified as operating items.


AverageCost ($)

CarryingValue ($)


94,207 NIKE, Inc., Class B 4,869,936 6,731,16212,435 O’Reilly Automotive, Inc. 2,621,443 4,364,3063,294 Priceline Group Inc., The 4,600,556 5,322,904

85,643 Starbucks Corporation 4,205,441 6,332,10155,421 TJX Companies, Inc., The 4,160,162 5,539,159

20,457,538 28,289,632

Consumer Staples – 4.5%46,692 Nestle S.A. – ADR 4,280,847 4,672,464

Health Care – 9.2%16,964 Align Technology Inc. 1,594,215 1,768,73033,022 Celgene Corporation 4,591,166 4,215,8027,658 Regeneron Pharmaceuticals, Inc. 3,159,921 3,461,742

9,345,302 9,446,274

Industrials – 3.9%70,573 Fastenal Company 3,705,382 4,055,006

Information Technology – 51.9%36,316 Accenture PLC, Class A 3,683,947 5,325,46338,045 Adobe Systems Incorporated 4,080,036 4,718,1993,788 Alphabet Inc., Class A 3,576,102 3,449,5346,917 Alphabet Inc., Class C 2,758,331 6,197,687

28,575 Apple Inc. 2,103,832 3,535,99742,986 Automatic Data Processing, Inc. 4,183,628 5,111,73744,551 Facebook Inc. 5,482,778 6,590,15330,551 Gartner Inc., Class A 2,645,897 3,852,09316,305 MasterCard, Inc., Class A 1,152,673 1,859,36496,595 Oracle Corporation 3,994,685 5,115,69979,879 Visa Inc. 5,486,612 7,670,373

39,148,521 53,426,299



NET ASSETS – 100.0% 102,991,237

The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Polen Capital Management

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69

Scotia Private U.S. Large Cap Growth Pool (Unaudited – Continued)



The Fund’s investment objective is to achieve superior long termreturns through capital growth by investing primarily in largecapitalization stocks of U.S. corporations.




ii) Currency risk


June 30, 2016

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 102,549,351 99.6 10,254,935 10.0

102,549,351 99.6 10,254,935 10.0

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 87,664,780 99.8 8,766,478 10.0

87,664,780 99.8 8,766,478 10.0

iii) Price risk

Price risk is the risk that the carrying value of financial instrumentswill fluctuate as a result of changes in market prices (other than thosearising from interest rate risk or currency risk) caused by factorsspecific to a security, its issuer or all factors affecting a market or amarket segment. Exposure to price risk is mainly in equities,underlying funds, derivatives and commodities, as applicable. As atJune 30, 2016, approximately 97% (December 31, 2015 – 96.5%) of theFund’s net assets were exposed to price risk. If prices of theseinstruments had decreased or increased by 10%, with all othervariables held constant, net assets of the Fund would have decreasedor increased, respectively, by approximately $9,988,967 (December 31,2015 – $8,479,013). In practice, actual results may differ from thissensitivity analysis and the difference could be material.

iv) Credit risk

The Fund had no significant exposure to bonds and debentures, moneymarket instruments, or preferred shares as at June 30, 2016 orDecember 31, 2015.



Percentages of nets assets (%)

June 30, 2016 December 31, 2015

Consumer Discretionary 27.5 27.1Consumer Staples 4.5 4.3Health Care 9.2 13.7Industrials 3.9 3.5Information Technology 51.9 47.9




($)Level 2

($)Level 3

($)Total($)

Equities 99,889,675 – – 99,889,675

99,889,675 – – 99,889,675


($)Level 2

($)Level 3

($)Total($)

Equities 84,790,126 – – 84,790,126

84,790,126 – – 84,790,126









June 30, 2016 December 31, 2015


($)

Net assetsper unit

($)


($)

Net assetsper unit

($)

Pinnacle Series 17.87 17.87 19.59 19.58Series F 17.58 17.58 19.35 19.35Series I 17.98 17.98 19.69 19.69


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Scotia Private International Equity Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 978,823,999 954,168,058Cash 4,181,741 6,547,106Subscriptions receivable 1,992,152 101,014Accrued investment income and other 2,433,645 773,145

987,431,537 961,589,323

LIABILITIESCurrent liabilitiesManagement fee payable 1,208 –Payable for securities purchased 1,708,393 –Redemptions payable 82,100 27,172Accrued expenses 60,357 182Unrealized loss on currency spot contracts 6,995 456

1,859,053 27,810








Dividends 22,415,062 15,978,646Interest for distribution purposes 93,625 97,099Net realized gain (loss) on non-derivative financial

assets (13,878,497) 107,848,010Change in unrealized gain (loss) on non-derivative

financial assets (105,555,717) (38,085,740)Change in unrealized gain (loss) on currency spots

contracts (6,539) (5,173)

Net gain (loss) on investments (96,932,066) 85,832,842Securities lending 114,169 75,107Net realized and unrealized foreign currency tranlation

gain (loss) (318,483) (193,920)


EXPENSESManagement fees (note 5) 6,416 3,898Fixed administration fees (note 6) 313,151 222,000Independent Review Committee fees 563 493Interest expense and bank overdraft charges 245 5,649Foreign withholding taxes/tax reclaims 3,838,757 2,354,052Other fund costs 167 –Harmonized Sales Tax/Goods and Services Tax 32,334 22,919Transaction costs 300,282 742,297

Total expenses 4,491,915 3,351,308



Pinnacle Series (12,226,929) 9,223,964Series F (144,511) 94,909Series I (89,256,855) 73,043,848





The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Strategic Global Advisors, LLC

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Scotia Private International Equity Pool (Unaudited – Continued)




961,561,513 600,747,828


Pinnacle Series (12,226,929) 9,223,964Series F (144,511) 94,909Series I (89,256,855) 73,043,848

(101,628,295) 82,362,721




125,639,266 194,676,771


Pinnacle Series 39,316,735 15,204,212Series F 43,677 (1,512)Series I (15,349,441) 261,836,792

24,010,971 277,039,492



985,572,484 877,787,320


CASH FLOWS FROM OPERATING ACTIVITIESIncrease (decrease) in net assets attributable to holders

of redeemable units (101,628,295) 82,362,721Adjustments for:

Net realized (gain) loss on non-derivative financialassets 13,878,497 (107,848,010)

Unrealized foreign currency translation (gain) loss 134,314 435,015Change in unrealized (gain) loss on non-derivative

financial assets 105,555,717 38,085,740Change in unrealized (gain) loss on currency spot

contracts 6,539 5,173Purchases of portfolio investments (417,368,189) (1,027,609,267)Proceeds from sale of portfolio investments 274,686,145 797,573,895Transaction costs 300,282 742,297Accrued investment income and other receivables (1,660,500) (1,261,665)Accrued expenses and other payables 61,383 50,571



Net cash provided by (used in) financing activities 123,803,056 194,638,589Unrealized foreign currency translation gain (loss) (134,314) (435,015)Net increase (decrease) in cash (2,231,051) (22,824,941)Cash (bank overdraft), beginning of period 6,547,106 30,399,832


Interest paid(1) 243 5,649Interest received(1) 94,879 125,555Dividends received, net of withholding taxes(1) 16,914,553 12,334,473



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AverageCost ($)

CarryingValue ($)

Australia – 5.8%134,761 Australia and New Zealand Banking

Group Limited 4,277,796 3,175,560272,035 Caltex Australia Limited 8,981,099 8,399,70842,994 Commonwealth Bank of Australia 3,638,881 3,118,221

1,000,750 Harvey Norman Holdings Limited 4,143,087 4,484,114357,320 Lend Lease Group 5,648,982 4,379,474180,186 Macquarie Group Ltd. 12,867,318 12,111,039502,833 Telstra Corporation Limited 3,108,734 2,704,502514,720 TPG Telecom Ltd. 5,094,366 5,918,514107,609 Westpac Banking Corporation 3,582,214 3,088,418390,448 Woodside Petroleum Limited 13,138,793 10,228,705

64,481,270 57,608,255

Austria – 1.6%108,612 ANDRITZ AG 7,581,029 6,674,124197,555 Erste Group Bank AG 7,800,251 5,842,54869,894 Voestalpine AG 3,261,027 3,024,673

18,642,307 15,541,345

Belgium – 0.8%33,722 Delhaize Group SA 3,705,794 4,608,05554,104 KBC Groep S.A. NV 4,460,137 3,430,267

8,165,931 8,038,322

Denmark – 3.1%204,331 Danske Bank AS 7,002,569 7,002,230163,198 Novo Nordisk A/S, Class B 9,044,074 11,349,81770,975 Pandora AS 6,925,704 12,459,638

22,972,347 30,811,685

Finland – 2.0%199,374 Neste Oyj 7,041,411 9,238,054437,360 UPM-Kymmene Oyj 9,904,440 10,368,746

16,945,851 19,606,800

France – 9.0%55,062 Atos SE 5,186,928 5,947,941

322,522 AXA SA 9,843,753 8,379,34459,864 BNP Paribas 4,718,855 3,480,581

267,040 Klepierre 15,972,155 15,407,10141,005 L’Oreal SA 9,648,597 10,143,76730,027 LVMH Moet Hennessy Louis Vuitton SA 6,764,861 5,879,84824,130 Renault SA 2,844,798 2,377,844

142,554 Safran SA 10,971,732 12,529,387104,968 Sanofi 12,505,405 11,410,769116,402 SCOR SE 4,802,607 4,534,91944,245 Thales SA 3,195,766 4,802,22673,914 Valeo SA 4,559,061 4,269,226

91,014,518 89,162,953

Germany – 6.7%54,344 Allianz SE 11,690,396 10,012,91482,211 Bayerische Motoren Werke AG 12,121,753 7,791,98034,527 Continental AG 9,820,542 8,391,31438,219 Daimler AG 4,442,325 2,947,576

158,589 Deutsche Telekom AG 3,695,670 3,489,57383,384 GEA Group AG 5,143,759 5,068,44418,430 Hochtief AG 3,063,783 3,070,24255,561 Merck KGaA 7,033,831 7,315,29347,400 Osram Licht AG 3,228,335 3,167,94949,090 SAP SE 4,889,520 4,745,364

188,048 United Internet AG 12,090,874 10,034,139

77,220,788 66,034,788

Hong Kong – 2.6%447,000 Cheung Kong Property Holdings Ltd. 4,742,642 3,642,04666,000 CK Hutchison Holdings Ltd. 1,577,907 940,165


AverageCost ($)

CarryingValue ($)

Hong Kong (cont’d)702,000 Hongkong Electric Holdings Limited 9,043,553 8,342,278

6,352,000 Huadian Power International CorporationLimited 6,215,175 3,920,731

812,500 Link Real Estate Investment Trust, The 6,589,126 7,194,802242,500 Zhuzhou CSR Times Electric Co., Ltd. 2,409,854 1,741,839

30,578,257 25,781,861

Ireland – 0.8%65,118 Kerry Group PLC 6,169,691 7,482,247

Israel – 1.3%188,149 Teva Pharmaceutical Industries Ltd. 14,111,209 12,320,424

Italy – 0.5%156,996 Prysmian SpA 4,420,308 4,450,824

Japan – 23.7%152,500 Asahi Breweries, Ltd. 5,995,883 6,366,80862,900 Central Japan Railway Company 13,529,282 14,408,564

1,407,800 Concordia Financial Group Ltd. 10,737,617 7,129,45765,600 Daito Trust Construction Co., Ltd 9,166,235 13,761,999

1,796,000 Fuji Electric Holdings Co., Ltd. 9,719,090 9,759,73775,300 Fuji Heavy Industries Ltd. 3,328,720 3,336,070

152,800 FUJIFILM Holdings Corporation 6,958,778 7,641,988222,700 Hitachi Chemical Co., Ltd. 5,007,984 5,342,782411,200 Hitachi Metals Ltd. 8,099,970 5,384,41246,200 Hoya Corporation 2,605,039 2,128,863

168,300 JTEKT Corporation 3,629,570 2,455,777186,200 Kao Corporation 10,415,506 13,906,835346,900 KDDI Corporation 9,895,986 13,667,001106,900 Mazda Motor Corporation 2,850,438 1,853,032

1,005,000 Mitsubishi Electric Corporation 14,972,072 15,422,428528,000 Mitsubishi Heavy Industries Ltd. 3,617,610 2,727,803

1,450,000 Mitsubishi Materials Corporation 6,075,663 4,469,911183,800 Mitsubishi Tanabe Pharma Corporation 4,049,701 4,266,680859,600 Mitsubishi UFJ Financial Group, Inc. 6,785,827 4,958,801132,200 Nexon Co., Ltd. 2,845,419 2,513,47056,100 Nippon Telegraph and Telephone

Corporation 2,908,119 3,408,347254,400 NTT DoCoMo, Inc. 8,214,020 8,859,362402,500 ORIX Corporation 6,111,286 6,651,870409,100 SBI Holdings Inc. 5,562,660 5,235,071224,400 Shionogi & Co., Ltd. 10,564,551 15,794,592

1,761,000 Sumitomo Chemical Co. Ltd. 12,245,664 9,346,330198,400 Suruga Bank Ltd. 4,627,058 5,798,192

1,633,000 Teijin Ltd. 7,500,458 6,961,059346,700 Tohoku Electric Power Company Inc. 5,902,722 5,626,998191,000 TonenGeneral Sekiyu K.K. 2,563,389 2,244,665234,570 Toyota Motor Corporation 16,169,706 15,178,20172,200 Yamaha Corporation 2,791,586 2,511,376

236,200 Yokogawa Electric Corporation 3,435,916 3,432,450

228,883,525 232,550,931

Mexico – 0.9%481,373 Gruma, S.A.B. de C.V. 7,445,053 8,975,400

Netherlands – 2.3%97,598 Heineken NV 9,439,223 11,662,880

306,784 Koninklijke Ahold NV 7,999,163 8,822,87443,579 Randstand Holding NV 3,306,240 2,269,925

20,744,626 22,755,679

Norway – 0.4%85,484 Yara International ASA 5,405,889 3,508,379

Portugal – 0.4%240,839 Galp Energia SGPS SA 3,204,674 4,325,445


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AverageCost ($)

CarryingValue ($)

Singapore – 1.6%399,400 DBS Group Holdings Limited 7,274,870 6,089,759655,965 Flextronics International Ltd. – ADR 9,854,436 10,019,140

17,129,306 16,108,899

South Africa – 1.2%212,235 AngloGold Ashanti Limited 3,819,567 4,977,850980,442 FirstRand Limited 5,469,783 3,882,369203,388 Nedbank Group Ltd. 5,484,149 3,333,267

14,773,499 12,193,486

South Korea – 0.3%1,820 Samsung Electronics Co., Ltd. 2,563,553 2,931,897

Spain – 2.1%32,344 Aena SA 4,999,821 5,507,92589,366 Amadeus IT Holding SA, Class A 4,830,431 5,063,02384,135 Grifolis SA 2,520,959 2,457,10768,881 Red Electrica Corporation S.A. 7,373,262 7,941,855

19,724,473 20,969,910

Sweden – 2.0%76,651 Atlas Copco AB 2,336,576 2,566,615

132,658 Boliden AB 3,370,722 3,332,60652,386 Hexagon AB 2,479,095 2,465,862

1,012,522 Skandinaviska Enskilda Banken AB 15,325,573 11,379,084

23,511,966 19,744,167

Switzerland – 7.9%94,309 Actelion Ltd. 17,187,736 20,473,032

152,740 Adecco SA 15,459,596 9,954,527131,236 Nestle SA 12,694,361 13,096,47524,617 Novartis AG 2,503,415 2,619,93115,461 Partners Group Holding AG 7,652,082 8,576,96914,486 Roche Holdings AG 4,768,979 4,948,21820,369 Swiss Life Holding AG 5,689,753 6,087,685

104,807 Swiss Re Ltd. 12,564,912 11,854,363

78,520,834 77,611,200

Taiwan – 0.4%628,000 Taiwan Semiconductor Manufacturing

Company Ltd. 3,991,540 4,117,673

Thailand – 0.5%330,300 Airports of Thailand Public Company Ltd. 4,082,575 4,747,630

United Kingdom – 16.4%1,376,591 3i Group PLC 13,102,583 13,240,385

152,800 Associated British Foods PLC 8,671,089 7,159,637788,187 Aviva PLC 7,382,475 5,474,102

1,483,708 Barclays PLC 7,424,076 3,650,373875,880 Barratt Developments PLC 10,121,184 6,198,582

1,054,728 BP PLC 8,527,633 7,959,1441,343,572 BT Group PLC 9,988,999 9,587,557

669,549 GlaxoSmithKline PLC 18,211,921 18,601,535826,407 HSBC Holdings PLC 9,445,633 6,671,628

2,475,330 ITV PLC 10,264,448 7,727,27888,161 JD Sports Fashion PLC 1,956,175 1,755,524

2,181,957 Lloyds Banking Group PLC 3,085,091 2,073,439326,500 Merlin Entertainments PLC 2,904,635 2,506,063199,119 Mondi PLC 4,729,943 4,795,603348,441 Persimmon PLC 11,661,133 8,787,066804,683 Petrofac Limited 12,741,636 10,807,49991,733 Reckitt Benkiser Group PLC 8,994,353 11,926,427

347,452 RELX PLC 7,620,189 8,273,336159,620 Smith & Nephew PLC 3,600,498 3,498,330232,448 Unilever PLC 13,092,178 14,408,926587,623 Vodafone Group PLC 2,558,633 2,311,710165,790 WPP Group PLC 5,113,557 4,448,411

181,198,062 161,862,555


AverageCost ($)

CarryingValue ($)

United States – 5.0%440,567 iShares MSCI EAFE ETF 32,370,339 31,826,707316,381 Itau Unibanco Holding S.A. – ADR 4,240,282 3,865,89634,878 NetEase, Inc. 5,336,793 8,723,11227,417 Taro Pharmaceutical Industries Ltd. 5,586,475 5,165,529

47,533,889 49,581,244

TOTAL INVESTMENT PORTFOLIO 1,013,435,941 978,823,999


NET ASSETS – 100.0% 985,572,484


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The Fund’s objective is to achieve long term returns through capitalgrowth by investing primarily in large capitalization stocks ofcompanies in Europe, Australia and the Far East.




ii) Currency risk


June 30, 2016

Currency


($)


(%)

Impact onthe Fund

($)


(%)

European Euro 258,368,312 26.2 25,836,831 2.6Japanese Yen 232,997,545 23.6 23,299,755 2.4British Pound 161,862,557 16.4 16,186,256 1.6Swiss Franc 77,611,200 7.9 7,761,120 0.8US Dollar 61,315,777 6.2 6,131,578 0.6Australian Dollar 57,608,251 5.8 5,760,825 0.6Danish Krone 30,811,685 3.1 3,081,169 0.3Hong Kong Dollar 25,781,862 2.6 2,578,186 0.3Swedish Krona 19,744,166 2.0 1,974,417 0.2Israel Shekel 12,320,424 1.3 1,232,042 0.1South African Rand 12,193,485 1.2 1,219,349 0.1Mexican Peso 8,975,400 0.9 897,540 0.1Singapore Dollar 6,089,759 0.6 608,976 0.1Thai Baht 4,747,630 0.5 474,763 0.1Taiwan Dollar 4,117,673 0.4 411,767 0.0Norwegian Krone 3,508,379 0.4 350,838 0.0South Korean Won 2,931,897 0.3 293,190 0.0

980,986,002 99.4 98,098,602 9.9

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

European Euro 269,988,003 28.1 26,998,800 2.8Japanese Yen 227,742,735 23.7 22,774,274 2.4British Pound 161,170,544 16.8 16,117,054 1.7Swiss Franc 73,768,340 7.7 7,376,834 0.8Australian Dollar 48,128,686 5.0 4,812,869 0.5Danish Krone 39,554,121 4.1 3,955,412 0.4US Dollar 36,075,006 3.8 3,607,501 0.4Hong Kong Dollar 28,314,892 2.9 2,831,489 0.3Israel Shekel 22,875,730 2.4 2,287,573 0.2Swedish Krona 16,432,991 1.7 1,643,299 0.2Mexican Peso 8,703,545 0.9 870,355 0.1South African Rand 6,611,322 0.7 661,132 0.1Singapore Dollar 6,006,499 0.6 600,650 0.1Norwegian Krone 4,733,055 0.5 473,306 0.0Thai Baht 4,062,588 0.4 406,259 0.0

954,168,057 99.3 95,416,807 10.0

iii) Price risk


iv) Credit risk





June 30, 2016 December 31, 2015

Australia 5.8 5.0Austria 1.6 1.0Belgium 0.8 1.2Brazil – 0.3Denmark 3.1 4.1Finland 2.0 1.9France 9.0 10.6Germany 6.7 8.0Hong Kong 2.6 2.9Ireland 0.8 0.7Israel 1.3 2.4Italy 0.5 0.5Japan 23.7 23.7Mexico 0.9 0.9Netherlands 2.3 2.3Norway 0.4 0.5Portugal 0.4 0.4Singapore 1.6 0.6South Africa 1.2 0.7South Korea 0.3 –Spain 2.1 1.4Sweden 2.0 1.7Switzerland 7.9 7.7Taiwan 0.4 –Thailand 0.5 0.4United Kingdom 16.4 16.8United States 5.0 3.5


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($)Level 2

($)Level 3

($)Total($)

Equities 68,575,784 910,248,215 – 978,823,999

68,575,784 910,248,215 – 978,823,999

Unrealized loss on currencyspot contracts – (6,995) – (6,995)

68,575,784 910,241,220 – 978,817,004


($)Level 2

($)Level 3

($)Total($)

Equities 44,778,548 909,389,510 – 954,168,058

44,778,548 909,389,510 – 954,168,058

Unrealized loss on currencyspot contracts – (456) – (456)

44,778,548 909,389,054 – 954,167,602






The following tables the percentage of the unconsolidated structuredentities owned by the Fund.

June 30, 2016

Underlying Fund


($)


(%)

iShares MSCI EAFE ETF 31,826,707 0.0

31,826,707

December 31, 2015

Underlying Fund


($)


(%)

iShares MSCI EAFE Index Fund 22,252,963 0.03

22,252,963




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Scotia Private International Small to Mid Cap Value Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 51,394,426 49,419,774Cash 653,990 75,779Receivable for securities sold – 396,934Subscriptions receivable 148,414 20,018Accrued investment income and other 74,546 29,691

52,271,376 49,942,196

LIABILITIESCurrent liabilitiesManagement fee payable 619 –Payable for securities purchased 241,636 75,664Redemptions payable 55,681 3,597Accrued expenses 22,913 183Unrealized loss on currency spot contracts 608 707

321,457 80,151








Dividends 873,770 663,828Interest for distribution purposes 1,096 1,968Net realized gain (loss) on non-derivative financial assets 1,082,931 2,837,574Change in unrealized gain (loss) on non-derivative financial

assets (6,500,734) 4,760,422Change in unrealized gain (loss) on currency spots contracts 111 (260)


(loss) (20,561) 10,004


EXPENSESManagement fees (note 5) 3,228 3,434Fixed administration fees (note 6) 119,045 100,839Independent Review Committee fees 563 29Interest expense and bank overdraft charges 2 1,029Foreign withholding taxes/tax reclaims 136,059 93,334Other fund costs 9 –Harmonized Sales Tax/Goods and Services Tax 11,988 10,422Transaction costs 44,075 30,192









The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Victory Capital Management

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Scotia Private International Small to Mid Cap Value Pool (Unaudited – Continued)




49,862,045 37,451,489



(4,875,953) 8,035,258



Payments on redemptionPinnacle Series (5,357,850) (4,951,722)Series F (50,197) (489,341)Series I (232,400) (529,907)

6,963,827 718,681


Pinnacle Series 2,499,283 8,717,356Series F (962) 58,907Series I (410,447) (22,324)

2,087,874 8,753,939



51,949,919 46,205,428




Net realized (gain) loss on non-derivative financial assets (1,082,931) (2,837,497)Unrealized foreign currency translation (gain) loss 53,732 (9,047)Change in unrealized (gain) loss on non-derivative

financial assets 6,500,734 (4,760,422)Change in unrealized (gain) loss on currency spot

contracts (111) 260Purchases of portfolio investments (28,314,987) (16,300,725)Proceeds from sale of portfolio investments 21,441,363 15,154,925Transaction costs 44,075 30,192Accrued investment income and other receivables (44,855) (44,417)Accrued expenses and other payables 23,349 21,835

Net cash provided by (used in) operating activities (6,255,584) (709,638)


Net cash provided by (used in) financing activities 6,887,527 663,968Unrealized foreign currency translation gain (loss) (53,732) 9,047Net increase (decrease) in cash 631,943 (45,670)Cash (bank overdraft), beginning of period 75,779 457,571


Interest paid(1) 2 1,029Interest received(1) 1,139 1,910Dividends received, net of withholding taxes(1) 694,495 526,136



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AverageCost ($)

CarryingValue ($)

EQUITIES – 98.9%Australia – 6.1%

13,770 Aristocrat Leisure Ltd. 85,644 183,888528,314 Beach Energy Limited 285,100 315,75645,001 BlueScope Steel Limited 247,737 278,88157,956 Charter Hall Group 264,393 283,97158,461 CSR Ltd. 204,815 207,03751,884 Eclipx Group Ltd. 166,924 183,81315,841 McMillan Shakespeare Limited 191,107 210,44128,921 Mineral Resources Ltd. 145,882 235,04154,440 OZ Minerals Ltd. 253,718 299,199

133,412 Spotless Group Holdings Ltd. 160,207 145,53035,766 Star Entertainment Group Ltd., The 137,054 186,93442,603 Treasury Wine Estates Ltd 320,873 380,88229,949 Vocus Communications Ltd. 237,227 252,4163,365 Vocus Communications Ltd., Rights

Jul 12, 2016 – 3,156

2,700,681 3,166,945

Austria – 0.3%4,671 Porr Ag 183,626 163,941

Belgium – 1.2%2,646 Melexis NV 142,916 214,4634,475 Tessenderlo Chemie NV 221,557 197,1331,785 Warehouses De Pauw SCA 173,347 216,836

537,820 628,432

Canada – 7.6%18,829 Air Canada 174,729 167,39010,371 Alaris Royalty Corporation 291,481 297,33720,400 Algonquin Power & Utilities Corporation 216,342 242,5565,820 Canadian Apartment Properties Real Estate

Investment Trust 106,705 192,9913,232 Cogeco Communication Inc. 203,802 219,130

37,913 Gran Tierra Energy, Inc. 163,730 164,5424,178 Laurentian Bank of Canada 206,473 201,547

99,792 OceanGold Corporation 239,734 491,97526,166 Painted Pony Petroleum Ltd 201,870 198,33831,791 Parex Resources Inc. 325,065 397,7052,754 Premium Brands Holdings Corporation 156,020 149,818

20,589 Raging River Exploration Inc. 149,048 211,6556,790 Ritchie Bros. Auctioneers Incorporated 243,195 296,451

65,570 SEMAFO Inc. 257,631 406,5346,227 Stella-Jones Inc. 218,228 299,581

3,154,053 3,937,550

Denmark – 0.3%896 Pandora AS 37,987 157,293

Finland – 1.4%11,995 Cramo Oyj Class B 314,746 321,34430,287 Sponda OYJ 157,357 169,84213,491 Valmet OYJ 220,078 232,244

692,181 723,430

France – 8.6%3,052 Alten SA 184,805 233,3043,406 Amundi SA 207,092 183,5792,034 Arkema SA 175,507 202,9903,593 Atos SE 318,189 388,1252,638 Eiffage SA 251,704 243,6325,574 Euronext NV 206,490 267,0331,827 Fonciere des Regions 159,712 210,3363,503 Ipsen SA 242,456 279,2538,119 Mercialys 211,631 224,1592,488 Nexans SA 158,991 135,5584,236 Nexity SA 206,890 279,231


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)France (cont’d)

4,388 SCOR SE 215,754 170,9531,012 SEB SA 166,869 157,779

19,550 Technicolor S.A. 198,841 156,8532,266 Technip SA 154,125 159,3815,371 Teleperformance 294,734 599,2875,874 Valeo SA 239,475 339,2798,694 Veolia Environnement SA 238,483 244,258

3,831,748 4,474,990

Germany – 7.1%6,842 Aareal Bank AG 317,481 278,9221,352 Bechtle AG 185,329 183,6433,823 Duerr AG 205,004 375,7706,843 Freenet AG 128,749 227,7321,804 Gerresheimer AG 186,774 179,2093,675 KION Group AG 254,893 229,8851,993 Rheinmetall AG 201,295 152,219

19,654 SAF-Holland SA 271,523 280,9913,008 Sartorius AG 242,995 285,1385,022 Stabilus SA 226,061 308,4796,110 Stroeer Media AG 186,401 361,654

12,364 TAG Immobilien AG 190,550 209,7443,520 United Internet AG 192,460 187,8254,663 VTG AG 114,969 174,1844,130 Wirecard AG 272,172 234,822

3,176,656 3,670,217

Hong Kong – 3.2%29,200 Dah Sing Financial Group 162,240 233,234

193,000 Fortune Real Estate Investment Trust 267,399 298,525248,400 Man Wah Holdings Limited 261,797 463,729152,000 PAX Global Technology Ltd. 125,789 172,38376,500 SmarTone Telecommunications Holdings Ltd. 185,453 176,627

1,180,000 Tongda Group Holdings Ltd. 243,688 300,871

1,246,366 1,645,369

Italy – 3.2%134,880 A2A SpA 173,714 230,46533,302 Amplifon SpA 252,661 403,4218,304 Brembo SpA 184,710 590,5616,265 Buzzi Unicem SpA 164,434 141,733

20,315 Credito Emiliano SpA 136,157 160,27925,830 Infrastrutture Wireless Italiane SpA 179,643 148,007

1,091,319 1,674,466

Japan – 21.2%3,600 Adastria Holdings Co., Ltd. 169,879 183,4823,600 Ariake Japan Co., Ltd. 163,410 275,484

18,000 Calsonic Kansei Corporation 205,033 176,55733,000 Central Glass Co., Ltd 221,195 183,04516,100 CKD Corporation 189,840 154,6857,300 Daifuku Co., Ltd. 161,418 167,719

38,000 DAIHEN Corporation 203,404 213,91213,100 Daikyonishikawa Corporation 235,186 213,74015,000 Dainippon Screen Manufacturing Co., Ltd. 191,500 210,56627,000 DCM Holdings Co., Ltd. 251,465 297,66765,000 Denka Co., Ltd. 377,103 338,2405,600 Dip Corporation 187,900 194,508

14,100 Doutor Nichires Holdings Co., Ltd. 273,087 316,6968,000 Fujitsu General Ltd. 188,654 228,934

65,700 Ichigo Inc. 248,000 333,1415,900 IT Holdings Corporation 190,003 175,320

159 Japan Hotel REIT Investment Corporation 181,022 172,98021,000 Kandenko Co., Ltd. 217,728 220,995


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AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Japan (cont’d)

25,100 Leopalace21 Corporation 186,574 226,92224,000 Maeda Corporation 236,752 241,7785,200 Mandom Corporation 304,988 308,1434,600 Matsumotokiyoshi Holdings Co., Ltd 277,774 289,132

24,000 Morinaga & Co., Ltd. 186,127 194,03233 Nippon Accommodations Fund Inc. 140,979 194,488

16,800 Nishimatsuya Chain Co., Ltd 236,764 307,04953,400 North Pacific Bank Ltd. 184,420 187,2598,000 NS Solutions Corporation 148,458 159,3053,700 Optex Co., Ltd. 151,847 122,335

25,000 Rengo Co., Ltd. 168,155 209,14834,000 Ryobi Limited 172,663 181,85722,000 San-In Godo Bank, Ltd., The 221,765 185,07142,600 Sanwa Shutter Corporation 267,467 498,2832,900 Sawai Pharmaceutical Co. Ltd. 231,988 289,193

25,200 Seino Transportation Co. Ltd. 281,195 297,98938,000 Shiga Bank, Ltd., The 254,477 209,940

600 Sosei Group Corporation 163,847 143,6426,900 Starts Corporation Inc. 198,963 176,521

16,100 Sumitomo Forestry Co., Ltd. 162,037 281,08260,000 Sumitomo Osaka Cement Company Ltd. 234,190 332,08121,200 Sun Frontier Fudousan Co., Ltd. 258,850 278,72843,000 Takara Leben Co., Ltd. 182,836 424,0045,500 TechnoPro Holdings Inc. 210,561 220,692

38,000 Toda Corporation 278,911 211,3378,800 TOHO Holdings Co., Ltd 264,437 273,5217,700 Tokyo Seimitsu Co., Ltd. 158,471 230,890

18,400 Tokyo Steel Manufacturing Co., Ltd. 164,019 129,85523,000 Tsubakimoto Chain Co. 177,632 182,617

9,962,974 11,044,565

Netherlands – 1.8%3,539 Aalberts Industries NV 103,316 138,0573,211 ASM International NV 126,952 162,0415,252 Corbion NV 161,701 163,683

36,105 PostNL NV 187,057 192,2007,425 Refresco Gerber NV 167,369 142,9613,562 TKH Group NV 140,438 155,814

886,833 954,756

New Zealand – 1.0%27,697 Fisher & Paykel Healthcare Corporation Ltd. 130,691 256,97867,358 Summerset Group Holdings Ltd. 246,965 272,809

377,656 529,787

Portugal – 0.3%13,100 CTT-Correios de Portugal SA 184,272 134,243

Singapore – 0.9%182,478 Mapletree Industrial Trust 234,232 302,077184,500 Starhill Global REIT 131,681 139,513

365,913 441,590

South Korea – 5.0%2,637 DongKook Pharmaceutical Co., Ltd. 202,129 213,3457,028 DuzonBizon Co., Ltd. 196,937 186,0455,149 Handsome Co., Ltd. 240,201 227,4334,894 KIWOOM Securities Co., Ltd. 313,923 396,1075,415 LG International Corporation 217,459 229,2603,096 Osstem Implant Co., Ltd. 203,219 271,847

12,306 Patron Co., Ltd. 169,161 146,7645,107 Poongsan Corporation 174,138 168,7623,061 S&T Motiv Co., Ltd. 205,107 224,2492,425 SFA Engineering Corporation 156,920 135,9318,466 SKC Co., Ltd. 340,448 259,018


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)South Korea (cont’d)

9,363 SL Corporation 205,949 151,574

2,625,591 2,610,335

Spain – 1.1%9,651 Atresmedia Corporacion de Medios de

Comunicaion S.A. 155,478 121,36619,463 Bankinter, S.A. 127,316 161,8926,965 Enagas SA 265,571 274,032

548,365 557,290

Sweden – 3.5%16,001 Axfood AB 297,821 395,81110,514 Bilia AB 178,296 333,68918,622 Fastighets AB Balder, Series B 188,587 607,5307,710 Indutrade AB 133,358 196,691

10,318 Wihlborgs Fastigheter AB 202,281 271,805

1,000,343 1,805,526

Switzerland – 7.7%857 Actelion Ltd. 60,258 186,042

13,229 Clariant, AG 288,078 289,307545 Emmi AG 304,280 429,482

1,305 Flughafen Zuerich AG 208,960 298,745447 Georg Fischer AG 378,108 461,341249 Helvetia Holding AG 108,753 168,096

4,763 Julius Baer Group Ltd. 276,610 247,63212,758 Logitech International SA 174,167 268,6602,566 Lonza Group AG 345,495 550,124

596 Partners Group Holding AG 289,165 330,630709 Straumann Holding AG 179,379 362,450

1,310 Swiss Life Holding AG 173,291 391,520

2,786,544 3,984,029

United Kingdom – 14.9%40,799 Auto Trader Group PLC 289,921 249,30835,460 Beazley PLC 148,241 222,6336,012 Bellway PLC 305,089 196,432

17,491 Britvic PLC 174,540 176,71538,948 Cairn Energy PLC 160,309 139,68920,211 Cineworld Group PLC 149,007 190,47514,856 Clinigen Group PLC 187,712 155,49630,618 DS Smith PLC 131,051 204,32532,404 Electrocomponents PLC 166,692 145,55860,137 Entertainment One Ltd 310,132 178,83014,295 Greene King PLC 241,037 192,83619,817 Greggs PLC 255,971 331,99478,754 Hays Plc. 186,862 132,7659,475 Hill & Smith Holdings PLC 161,344 145,252

45,252 Howden Joinery Group PLC 131,269 305,00911,185 IG Group Holdings PLC 156,144 156,29822,963 Informa PLC 245,034 290,61718,135 Intermediate Capital Group PLC 218,554 153,6286,770 JD Sports Fashion PLC 155,145 134,809

40,785 Jupiter Fund Management plc 313,480 259,84822,053 Keller Group PLC 317,905 344,75766,478 Lookers PLC 217,595 124,77024,757 Meggitt PLC 193,127 173,55332,191 Moneysupermarket.com 228,316 150,41749,122 National Express Group PLC 277,514 250,30027,420 Northgate PLC 271,857 154,17113,426 Novae Group PLC 192,716 174,44535,427 Paragon Group Companies PLC 115,648 148,425

231,095 Pendragon PLC 196,483 112,31310,037 Playtech PLC 136,698 137,90224,289 Redrow PLC 209,966 134,579


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AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)United Kingdom (cont’d)

57,817 Rentokil Initial PLC 193,596 192,69314,157 RPC Group PLC 210,356 191,64754,738 Safestore Holdings PLC 368,392 348,74825,330 Synthomer PLC 159,712 140,6727,690 TUI AG 124,695 112,8244,612 Ultra Electronics Holdings PLC 161,683 138,628

18,005 Unite Group PLC 119,021 192,85233,601 United Drug PLC 217,684 341,95424,812 Virgin Money Holdings UK PLC 197,335 107,6865,947 Wizz Air Holdings Plc 220,241 164,979

8,418,074 7,800,832

United States – 2.5%17,841 iShares MSCI EAFE ETF 1,316,837 1,288,840

TOTAL EQUITIES 45,125,839 51,394,426



NET ASSETS – 100.0% 51,949,919


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The Fund’s objective is to achieve superior long term returns throughcapital growth by investing in stocks of small and mediumcapitalization corporations in Europe, Australia and the Far East.




ii) Currency risk


June 30, 2016

Currency


($)


(%)

Impact onthe Fund

($)


(%)

European Euro 13,016,664 25.1 1,301,666 2.5Japanese Yen 11,116,062 21.4 1,111,606 2.1British Pound 7,800,832 15.0 780,083 1.5Swiss Franc 3,984,029 7.7 398,403 0.8Australian Dollar 3,166,943 6.1 316,694 0.6South Korean Won 2,610,336 5.0 261,034 0.5Swedish Krona 1,805,526 3.5 180,553 0.4Hong Kong Dollar 1,654,374 3.2 165,437 0.3US Dollar 1,549,807 3.0 154,981 0.3New Zealand Dollar 529,787 1.0 52,979 0.1Singapore Dollar 441,590 0.9 44,159 0.1Danish Krone 157,292 0.3 15,729 0.0

47,833,242 92.2 4,783,324 9.2

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

European Euro 13,982,839 28.0 1,398,284 2.8Japanese Yen 9,942,920 19.9 994,292 2.0British Pound 8,663,352 17.4 866,335 1.7Swiss Franc 3,501,946 7.0 350,195 0.7Swedish Krona 2,575,890 5.2 257,589 0.5Australian Dollar 2,367,049 4.7 236,516 0.5South Korean Won 2,084,803 4.2 208,480 0.4Hong Kong Dollar 1,878,699 3.8 187,870 0.4New Zealand Dollar 619,731 1.2 61,785 0.1Singapore Dollar 361,206 0.7 36,121 0.1US Dollar 216,204 0.4 21,620 0.0

Danish Krone 175,667 0.4 17,567 0.0Norwegian Krone 140,414 0.3 14,041 0.0

46,510,720 93.2 4,651,072 9.2

iii) Price risk

Price risk is the risk that the carrying value of financial instrumentswill fluctuate as a result of changes in market prices (other than thosearising from interest rate risk or currency risk) caused by factors

specific to a security, its issuer or all factors affecting a market or amarket segment. Exposure to price risk is mainly in equities,underlying funds, derivatives and commodities, if applicable. As atJune 30, 2016, approximately 98.9% (December 31, 2015 – 99.1%) ofthe Fund’s net assets were exposed to price risk. If prices of theseinstruments had decreased or increased by 10%, with all othervariables held constant, net assets of the Fund would have decreasedor increased, respectively, by approximately $5,139,443 (December 31,2015 – $4,941,977). In practice, actual results may differ from thissensitivity analysis and the difference could be material.

iv) Credit risk

The Fund had no significant exposure to bonds and debentures, moneymarket instruments and preferred shares held by the Fund, asapplicable.




June 30, 2016 December 31, 2015

Australia 6.1 4.3Austria 0.3 0.8Belgium 1.2 1.6Canada 7.6 5.2Denmark 0.3 0.4Finland 1.4 0.9France 8.6 9.4Germany 7.1 8.0Hong Kong 3.2 3.8Italy 3.2 3.8Japan 21.2 19.9Netherlands 1.8 2.0New Zealand 1.0 1.2Norway – 0.3Portugal 0.3 0.4Singapore 0.9 0.7South Korea 5.0 4.2Spain 1.1 1.5Sweden 3.5 5.2Switzerland 7.7 7.0United Kingdom 14.9 17.4United States 2.5 1.1


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($)Level 2

($)Level 3

($)Total($)

Equities 5,226,387 46,164,883 – 51,391,270Warrants, rights and options – 3,156 – 3,156

5,226,387 46,168,039 – 51,394,426

Unrealized loss on currencyspot contracts – (608) – (608)

5,226,387 46,167,431 – 51,393,818


($)Level 2

($)Level 3

($)Total($)

Equities 3,139,628 46,280,146 – 49,419,774Warrants, rights and options – – – –

3,139,628 46,280,146 – 49,419,774

Unrealized loss on currencyforward contracts – (707) – (707)

3,139,628 46,279,439 – 49,419,067







June 30, 2016

Underlying Fund


($)


(%)

iShares MSCI EAFE ETF 1,288,840 0.0

1,288,840

December 31, 2015

Underlying Fund


($)


(%)

iShares MSCI EAFE ETF 386,121 0.0

386,121




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Scotia Private Emerging Markets Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 226,112,951 204,728,509Unrealized gain on currency spot contracts – 2,390

Cash 8,855,090 4,976,834Receivable for securities sold – 228,010Subscriptions receivable 173,592 64,596Accrued investment income and other 1,521,868 94,942

236,663,501 210,095,281


559,621 11,801



Pinnacle Series 52,254,493 42,594,674Series I 169,872,892 151,801,985Series M 13,976,495 15,686,821


Pinnacle Series 8.97 9.16Series I 9.10 9.28Series M 8.94 9.15



Dividends 4,780,416 3,484,710Interest for distribution purposes 29,489 178,929Net realized gain (loss) on non-derivative financial assets (9,792,007) 3,703,696Change in unrealized gain (loss) on non-derivative financial

assets 2,717,291 5,647,519Change in unrealized gain (loss) on currency spots contracts (2,390) 6,016


(loss) (235,879) (12,305)






Pinnacle Series (522,594) 2,276,959Series I (2,549,210) 9,088,437Series M (399,854) 874,929


Pinnacle Series (0.09) 0.61Series I (0.15) 0.68Series M (0.24) 0.61

WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESPinnacle Series 5,504,497 3,707,113Series I 16,800,918 13,439,337Series M 1,699,578 1,435,018


The accompanying notes are an integral part of the financial statements. Portfolio Adviser: LMCG Investment, LLC

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Scotia Private Emerging Markets Pool (Unaudited – Continued)




210,083,480 172,553,212


Pinnacle Series (522,594) 2,276,959Series I (2,549,210) 9,088,437Series M (399,854) 874,929

(3,471,658) 12,240,325



Payments on redemptionPinnacle Series (2,938,369) (2,395,989)Series I (8,348,850) (8,777,670)Series M (2,386,465) (1,367,917)

29,492,058 21,226,056


Pinnacle Series 9,659,819 7,185,132Series I 18,070,907 24,501,704Series M (1,710,326) 1,779,545

26,020,400 33,466,381



236,103,880 206,019,593




Non-cash transactions (1,089,961) –Net realized (gain) loss on non-derivative financial assets 9,792,007 (3,703,696)Unrealized foreign currency translation (gain) loss 93,791 (74,750)Change in unrealized (gain) loss on non-derivative

financial assets (2,717,291) (5,647,519)Change in unrealized (gain) loss on currency spot

contracts 2,390 (6,016)Purchases of portfolio investments (103,738,668) (101,663,085)Proceeds from sale of portfolio investments 76,370,607 77,659,935Transaction costs 226,874 226,727Accrued investment income and other receivables (1,426,926) (1,201,195)Accrued expenses and other payables 30,724 30,251



Net cash provided by (used in) financing activities 29,900,158 21,108,862Unrealized foreign currency translation gain (loss) (93,791) 74,750Net increase (decrease) in cash 3,972,047 (1,030,161)Cash (bank overdraft), beginning of period 4,976,834 6,045,269


Interest paid(1) 749 766Interest received(1) 29,032 179,643Dividends received, net of withholding taxes(1) 2,781,955 1,935,607



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SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2016Number ofShares/Number ofUnits Issuer

AverageCost ($)

CarryingValue ($)

EQUITIES – 95.8%Brazil – 6.9%

317,100 Ambev SA 2,400,676 2,433,826136,700 Banco Bradesco S.A. 1,377,972 1,487,618169,700 BB Seguridade Participacoes S/A 1,675,815 1,921,94573,500 Equatorial Energia S.A. 1,321,442 1,440,683

596,100 Gerdau SA, Preference 1,052,597 1,414,597275,690 Itau Unibanco Holding S.A., Preference 3,613,002 3,365,595370,400 Kroton Educacional SA 1,529,028 2,029,589564,000 Petroleo Brasileriro S.A., Preferred 1,622,332 2,140,564

14,592,864 16,234,417

Hong Kong – 22.7%1,496,000 Air China Limited 1,655,260 1,328,8632,360,000 Bank of Communications Co., Ltd. 2,676,586 1,948,7742,770,000 China CITIC Bank Corporation Limited 2,109,858 2,185,5222,822,494 China Construction Bank Corporation, Class H 2,449,923 2,427,8901,721,000 China Everbright Bank Co., Ltd. 1,094,168 1,021,221

404,000 China Everbright Ltd. 1,038,763 1,014,1441,319,500 China Galaxy Securities Co., Ltd. 1,473,572 1,543,0911,339,500 China Minsheng Banking Corporation Ltd. 1,598,504 1,688,050

273,500 China Mobile Limited 4,043,786 4,088,939498,000 China Overseas Land & Investment Limited 2,155,474 2,057,155343,800 China Pacific Insurance Group Co., Ltd. 1,469,964 1,519,169514,000 China Resources Land Limited 1,725,151 1,559,812442,000 China Resources Power Holding Co. Ltd. 1,369,842 856,468357,400 China Taiping Insurance Holdings Co., Ltd. 1,426,042 870,286538,000 China Vanke Co., Ltd. 1,554,520 1,378,470

2,303,000 Chongqing Rural Commercial Bank Co., Ltd. 1,365,327 1,513,5801,013,000 CITIC Ltd. 2,119,195 1,914,0281,455,000 Evergrande Real Estate Group Limited 844,732 1,157,3763,535,000 Geely Automobile Holdings Limited 2,038,785 2,494,7901,186,000 Guangzhou Automobile Group Co., Ltd. 1,445,072 1,849,736

790,800 Guangzhou R&F Properties Co., Ltd. 1,346,185 1,298,3623,527,392 Industrial and Commercial Bank of China Ltd.,

Class H 2,634,880 2,536,3742,130,000 People’s Insurance Company of China Ltd., The 1,419,439 1,068,002

632,000 PICC Property and Casualty Co., Ltd. 1,779,181 1,293,044467,700 Shanghai Pharmaceuticals Holding Co., Ltd. 1,681,254 1,343,439242,000 Sinopharm Group Co., Class H 1,340,298 1,509,284294,100 Tencent Holdings Limited 6,432,959 8,672,604863,000 Weichai Power Co., Ltd. 1,267,994 1,155,808

53,556,714 53,294,281

Hungary – 1.1%52,477 OTP Bank PLC 1,512,588 1,521,95645,322 Richter Gedeon Nyrt 1,165,355 1,164,546

2,677,943 2,686,502

Indonesia – 0.6%1,433,500 P.T. Bank Rakyat Indonesia (Persero) Tbk 1,608,657 1,523,959

Malaysia – 2.1%1,572,700 AirAsia Berhad 1,318,880 1,319,534

826,700 IHH Healthcare Bhd 1,622,607 1,753,937298,600 Public Bank Bhd 1,786,329 1,863,473

4,727,816 4,936,944

Mexico – 3.6%207,722 Arca Continental SAB de CV 1,652,812 1,926,47461,690 Gruma, S.A.B. de C.V. 959,573 1,150,236

115,468 Grupo Aeroportuario del Pacifico SAB de CV 876,656 1,532,854252,018 Grupo Financiero Banorte SAB de CV, Series O 1,814,963 1,821,879628,529 Wal-Mart de Mexico SAB de CV 1,950,671 1,952,901

7,254,675 8,384,344

Number ofShares/Number ofUnits Issuer

AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Poland – 0.8%

81,006 Polski Koncern Naftowy Orlen SA 1,445,392 1,833,205

Russia – 0.4%49,034 Mining and Metallurgical Company Norilsk

Nickel – ADR 958,555 844,874

South Africa – 6.8%48,857 Bid Corporation Ltd. 1,089,961 1,180,14848,857 Bidvest Group Ltd., The 1,561,583 593,293

100,088 Foschini Group Ltd., The 1,716,905 1,229,71382,445 Mediclinic International PLC 1,379,236 1,529,76683,022 Mr Price Group Ltd. 1,529,234 1,503,501

659,058 Netcare Ltd. 1,951,067 1,791,9671,272,646 Redefine Properties Ltd. 1,243,315 1,265,078

231,402 Sappi Ltd. 1,106,373 1,391,22979,016 SPAR Group Ltd., The 1,464,979 1,398,46441,185 Tiger Brands Ltd. 1,202,682 1,309,960

164,034 Truworths International Ltd. 1,406,799 1,233,908114,597 Vodacom Group Limited 1,647,715 1,689,371

17,299,849 16,116,398

South Korea – 18.1%4,505 CJ CheilJedang Corporation 1,929,119 1,967,061

18,143 Dongbu Insurance Co., Ltd. 1,207,118 1,413,4237,279 E-Mart Co., Ltd. 1,862,658 1,415,374

41,126 GS Engineering & Construction Corporation 1,298,816 1,296,94215,908 Hyosung Corp 2,173,601 2,247,91112,007 Hyundai Heavy Industries Co., Ltd. 1,462,581 1,454,148

137,457 Industrial Bank of Korea 1,860,059 1,734,20129,192 Kangwon Land Inc. 1,392,126 1,370,70940,253 Kia Motors Corporation 2,259,660 1,961,86133,425 Korea Electric Power Corporation 1,859,718 2,282,66055,382 LG Display Co., Ltd. 1,661,737 1,651,25039,233 LG International Corporation 1,624,714 1,661,044

196,548 LG Uplus Corporation* 1,232,223 1,203,6545,947 Lotte Chemical Corp 1,782,293 1,917,7808,460 POSCO 2,034,528 1,934,2696,687 Samsung Electronics Co., Ltd. 9,078,399 10,772,306

41,356 Shinhan Financial Group Co., Ltd. 1,943,600 1,766,95913,608 SK Innovation Co., Ltd. 1,881,214 2,168,332

124,017 Woori Bank 1,275,404 1,334,1553,172 Yuhan Corporation 1,216,171 1,091,252

41,035,739 42,645,291

Taiwan – 14.7%468,000 Cheng Shin Rubber Industry Co., Ltd. 1,286,974 1,277,000614,000 Cheng Uei Precision Industry Co., Ltd. 1,366,934 1,036,630475,000 Chunghwa Telecom Co., Ltd. 1,903,829 2,224,850

1,618,000 Compal Electronics, INC. 1,589,492 1,324,849484,000 Formosa Plastics Corporation 1,472,543 1,516,077454,000 Foxconn Technology Co., Ltd. 1,355,438 1,387,555

1,306,178 Hon Hai Precision Industry Co., Ltd. 3,762,612 4,358,0841,574,000 King Yuan Electronics Co., Ltd. 1,640,337 1,811,759

385,000 Pegatron Corp 1,370,548 1,058,091809,000 Pou Chen Corporation 1,283,516 1,411,214518,000 Powertech Technology Inc. 1,479,296 1,489,701129,000 President Chain Store Corporation 1,289,125 1,308,701570,000 Quanta Computer Inc. 1,347,631 1,407,369

1,306,818 Taiwan Semiconductor ManufacturingCompany Ltd. 6,092,553 8,568,546

1,287,332 Uni-President Enterprises Corporation 2,431,888 3,293,1541,468,000 Wistron Corporation 1,262,966 1,334,149

30,935,682 34,807,729


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SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2016Number ofShares/Number ofUnits Issuer

AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)Thailand – 2.1%1,493,900 Charoen Pokphand Foods Public Comopany

Limited 1,527,545 1,587,2789,742,700 Jasmine International PLC 1,561,485 2,031,657

82,050 Siam Cement PCL, The 1,550,623 1,447,435

4,639,653 5,066,370

Turkey – 3.3%148,271 Arcelik AS 1,136,442 1,264,860705,473 Eregli Demir ve Celik Fabrikalari TAS

(Erdemir) 1,082,780 1,295,851192,836 Koc Holding AS 1,106,081 1,139,74670,280 Koza Altin Isletmeleri AS 822,470 404,387

327,395 Tekfen Holding AS 1,171,280 1,086,372662,743 Turkiye Vakiflar Bankasi T.A.O. 1,550,988 1,362,926446,251 Vestel Elektronik Sanayi ve Ticaret AS 1,101,092 1,301,224

7,971,133 7,855,366

United Kingdom – 1.9%69,847 Reliance Industries Ltd. – GDR 2,348,362 2,580,76448,526 Tatneft OAO 1,924,819 1,930,211

4,273,181 4,510,975

United States – 10.7%10,528 Alibaba Group Holding Ltd. 977,320 1,083,38018,112 Dr Reddy’s Laboratories Ltd. – ADR 1,501,553 1,201,864

512,608 Gazprom – ADR 3,720,070 2,873,036144,570 Infosys Ltd. 3,390,562 3,340,290197,839 iShares MSCI Emerging Markets ETF 8,773,275 8,805,392113,131 IShares MSCI India ETF 3,730,224 4,088,50832,613 Lukoil Oil Company – ADR 2,008,430 1,761,598

138,650 Wipro Limited 2,039,708 2,218,228

26,141,142 25,372,296



NET ASSETS – 100.0% 236,103,880

* This security is not actively traded and considered illiquid.


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The Fund’s objective is to achieve long term returns through capitalgrowth by investing primarily in equity and equity-related securities ofcompanies located in emerging markets and emerging industries of anymarket.




ii) Currency risk


June 30, 2016

Currency


($)


(%)

Impact onthe Fund

($)


(%)

Hong Kong Dollar 53,328,085 22.6 5,332,809 2.3South Korean Won 42,645,291 18.1 4,264,529 1.8Taiwan Dollar 35,424,377 15.0 3,542,438 1.5US Dollar 30,807,067 13.0 3,080,707 1.3Brazilian Real 16,742,179 7.1 1,674,218 0.7South African Rand 16,150,496 6.8 1,615,050 0.7Mexican Peso 8,384,344 3.6 838,434 0.4Turkish Lira 7,855,365 3.3 785,537 0.3Thai Baht 5,066,370 2.1 506,637 0.2Malaysian Ringgit 4,936,943 2.1 493,694 0.2Hungary Forint 2,686,502 1.1 268,650 0.1Polish Zloty 1,833,205 0.8 183,321 0.1Indonesian Rupiah 1,523,959 0.6 152,396 0.1

227,384,183 96.2 22,738,420 9.7

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

Hong Kong Dollar 47,042,465 22.4 4,704,246 2.2South Korean Won 37,355,251 17.8 3,735,525 1.8Taiwan Dollar 30,951,574 14.7 3,095,157 1.5US Dollar 26,068,413 12.4 2,606,841 1.2Brazilian Real 15,716,509 7.5 1,571,651 0.7Mexican Peso 13,148,507 6.3 1,314,851 0.6South African Rand 9,889,660 4.7 988,966 0.5Turkish Lira 8,853,259 4.2 885,326 0.4Malaysian Ringgit 4,651,799 2.2 465,180 0.2Indonesian Rupiah 3,686,437 1.8 368,644 0.2Thai Baht 3,271,395 1.6 327,139 0.2Polish Zloty 3,005,240 1.4 300,524 0.1Hungary Forint 2,440,087 1.2 244,009 0.1

206,080,596 98.2 20,608,059 9.7

iii) Price risk


iv) Credit risk


June 30, 2016 December 31, 2015

Credit ratings


ratedinstruments

(%)


(%)


ratedinstruments

(%)


(%)

NOT RATED 100.0 0.9 – –

100.0 0.9 – –




June 30, 2016 December 31, 2015

Brazil 6.9 7.5Hong Kong 22.7 22.3Hungary 1.1 1.2India – 2.3Indonesia 0.6 1.8Malaysia 2.1 2.2Mexico 3.6 6.3Poland 0.8 1.4Russia 0.4 1.8South Africa 6.8 4.8South Korea 18.1 17.7Taiwan 14.7 14.0Thailand 2.1 1.6Turkey 3.3 4.2United Kingdom 1.9 1.3United States 10.7 7.0


FOR

EIG

NE

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ITY

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88






($)Level 2

($)Level 3

($)Total($)

Equities 49,991,055 176,121,896 – 226,112,951

49,991,055 176,121,896 – 226,112,951


($)Level 2

($)Level 3

($)Total($)

Equities 32,972,929 171,755,580 – 204,728,509Unrealized gain on currency spot

contracts 2,390 – – 2,390

32,975,319 171,755,580 – 204,730,899







June 30, 2016

Underlying Fund


($)


(%)

iShares MSCI Emerging Markets ETF 8,805,392 0.0iShares MSCI India ETF 4,088,508 0.1

12,893,900

December 31, 2015

Underlying Fund


($)


(%)

iShares MSCI India ETF 4,193,330 0.1iShares MSCI Emerging Markets ETF 3,894,346 0.0

8,087,676




FOR

EIG

NE

QU

ITY

FUN

DS

89

Scotia Private Global Equity Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 344,777,749 374,721,754Cash 13,503,118 14,801,642Receivable for securities sold 266,116 –Subscriptions receivable 30,088 35,839Accrued investment income and other 256,969 136,907

358,834,040 389,696,142

LIABILITIESCurrent liabilitiesManagement fee payable 5,039 –Payable for securities purchased 4,452,687 –Redemptions payable 36,156 6,677Accrued expenses 20,380 188Unrealized loss on currency spot contracts 6,105 –

4,520,367 6,865










contracts (6,105) 133


(loss) (96,883) (1,061,046)Other income 328 –






Pinnacle Series (3,259,812) 6,232,223Series F 31,441 108,740Series I (13,982,337) 50,616,862


Pinnacle Series (2.11) 2.44Series F 0.24 2.41Series I (1.03) 2.74



The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Harding Loevner LP

FOR

EIG

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FUN

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90

Scotia Private Global Equity Pool (Unaudited – Continued)




389,689,277 459,732,191


Pinnacle Series (3,259,812) 6,232,223Series F 31,441 108,740Series I (13,982,337) 50,616,862

(17,210,708) 56,957,825


Series I – (1,453,372)



Reinvested distributionsSeries I – 1,436,450


(18,164,896) (161,800,335)


Pinnacle Series (37,120,948) 9,300,078Series F 4,496,248 133,753Series I (2,750,904) (115,729,713)

(35,375,604) (106,295,882)



354,313,673 353,436,309




Net realized (gain) loss on non-derivative financial assets (11,584,753) (73,018,823)Unrealized foreign currency translation (gain) loss 18,682 (68,370)Change in unrealized (gain) loss on non-derivative


contracts 6,105 (133)Purchases of portfolio investments (54,775,817) (91,902,896)Proceeds from sale of portfolio investments 69,257,768 251,455,139Transaction costs 62,163 131,974Accrued investment income and other receivables (120,062) (267,568)Accrued expenses and other payables 25,231 30,241


CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 34,780,952 50,306,812Amounts paid on redemption of redeemable units (52,910,618) (214,133,634)Distributions to unitholders of redeemable units – (16,922)

Net cash provided by (used in) financing activities (18,129,666) (163,843,744)Unrealized foreign currency translation gain (loss) (18,682) 68,370Net increase (decrease) in cash (1,279,842) (2,209,606)Cash (bank overdraft), beginning of period 14,801,642 17,746,811





FOR

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91



AverageCost ($)

CarryingValue ($)

EQUITIES – 97.3%France – 4.7%

29,700 Air Liquide SA 3,340,513 4,025,33941,600 Dassault Systemes SA 2,233,149 4,108,06725,700 Essilor International SA 2,990,947 4,423,51416,900 L’Oreal SA 2,463,446 4,180,702

11,028,055 16,737,622

Germany – 0.7%14,100 Linde AG 2,949,555 2,537,965

Hong Kong – 3.4%1,085,500 AIA Group Ltd. 5,669,394 8,466,757

126,800 Tencent Holdings Limited 2,969,809 3,739,158

8,639,203 12,205,915

Italy – 0.9%53,300 Luxottica Group SpA 3,825,937 3,358,623

Japan – 14.1%16,400 FANUC Corporation 2,580,381 3,435,627

113,707 Kakaku.com Inc. 1,913,306 2,900,9916,343 Keyence Corporation 2,133,329 5,536,708

402,800 Kubota Corporation 7,940,504 6,982,086330,649 M3, Inc. 6,327,863 14,820,56760,500 Makita Corporation 3,962,415 5,163,004

120,000 Monotaro Co., Ltd. 2,059,653 5,077,764129,834 PIGEON CORPORATION 3,823,296 4,955,50842,653 Stanley Electric Co., Ltd. 1,099,164 1,172,284

31,839,911 50,044,539

South Africa – 0.5%127,000 MTN Group Limited 1,605,027 1,600,856

Spain – 1.9%639,500 Banco Bilbao Vizcaya Argentaria, SA 5,926,909 4,739,35370,600 Grifolis SA 1,608,132 2,061,827

7,535,041 6,801,180

Sweden — 2.3%112,200 Atlas Copco AB 3,837,750 3,756,952420,782 Elekta AB, Class B 5,577,579 4,390,630

9,415,329 8,147,582

Switzerland – 3.9%25,200 Lonza Group AG 2,189,514 5,402,61913,600 Roche Holdings AG 4,398,823 4,645,57322,600 Sonova Holdings AG 2,676,547 3,884,702

9,264,884 13,932,894

United Kingdom – 3.9%208,879 Abcam PLC 2,190,430 2,775,678771,884 Rotork PLC 3,453,982 2,863,64637,700 Shire PLC 3,485,047 3,000,129

193,000 WPP Group PLC 3,094,103 5,178,499

12,223,562 13,817,952

United States – 61.0%25,300 3M Co. 2,945,567 5,732,74868,900 Abbott Laboratories 2,496,328 3,505,82459,600 AbbVie Inc. 3,637,337 4,774,95915,100 Alphabet Inc., Class A 11,714,167 13,750,7819,065 Amazon.com, Inc. 3,812,795 8,396,882

33,100 AmerisourceBergen Corporation 3,840,265 3,398,43157,600 ARM Holdings PLC, – ADR 2,086,127 3,393,10312,200 Baidu, Inc. 3,130,504 2,607,99279,500 Cognex Corporation 3,783,055 4,437,76271,400 Colgate-Palmolive Company 3,941,536 6,763,75838,900 Ctrip.com International Ltd. – ADR 1,651,332 2,074,50645,700 Exxon Mobil Corporation 4,206,696 5,545,094


AverageCost ($)

CarryingValue ($)

EQUITIES (cont’d)United States (cont’d)

49,800 F5 Networks, Inc. 6,304,867 7,338,24237,200 Facebook Inc. 3,813,967 5,502,76596,700 First Republic Bank 4,459,730 8,758,65087,130 Grifols, S.A. 1,690,183 1,880,05743,550 IPG Photonics Corporation 3,279,274 4,509,682

111,700 Lazard Ltd. 4,515,473 4,305,71936,800 MasterCard, Inc., Class A 2,960,404 4,196,54142,100 Microsoft Corporation 1,577,253 2,788,46628,700 Monsanto Company 2,908,530 3,844,94474,800 Nestle S.A. – ADR 5,007,908 7,485,228

177,500 NIKE, Inc., Class B 6,363,004 12,682,510147,500 PayPal Holdings Inc. 4,445,800 6,970,624

6,330 Priceline Group Inc., The 10,085,967 10,228,89539,200 Red Hat, Inc. 3,732,607 3,683,7534,400 Regeneron Pharmaceuticals, Inc. 1,984,620 1,988,987

43,500 Roper Technologies Inc. 6,478,007 9,605,85643,300 Salesforce.com, Inc. 3,740,605 4,450,726

130,500 Schlumberger Limited 11,602,896 13,358,10820,741 Signature Bank 3,943,229 3,353,74076,500 SVB Financial Group 7,845,898 9,422,880

131,100 Tenaris S.A. – ADR 4,063,563 4,894,02086,300 Verisk Analytics, Inc. 6,889,994 9,057,16625,850 Waters Corporation 3,097,153 4,706,175

101,100 Wells Fargo & Company 3,989,505 6,197,047

162,026,146 215,592,621



NET ASSETS – 100.0% 354,313,673


FOR

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NE

QU

ITY

FUN

DS

92




The Fund’s investment objective is to achieve long term returnsthrough capital growth by investing primarily in stocks of largecapitalization companies in North America, Europe, Australia and theFar East.




ii) Currency risk


June 30, 2016

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 216,779,395 61.2 21,677,940 6.1Japanese Yen 50,147,033 14.2 5,014,703 1.4European Euro 29,455,033 8.3 2,945,503 0.8Swiss Franc 13,932,894 3.9 1,393,289 0.4British Pound 13,817,952 3.9 1,381,795 0.4Hong Kong Dollar 12,205,916 3.4 1,220,592 0.3Swedish Krona 7,881,466 2.2 788,147 0.2South African Rand 1,600,856 0.5 160,086 0.1

345,820,545 97.6 34,582,055 9.7

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 254,718,344 65.4 25,471,834 6.5Japanese Yen 38,903,655 10.0 3,890,365 1.0European Euro 27,084,388 7.0 2,708,439 0.7Swiss Franc 15,522,836 4.0 1,552,284 0.4British Pound 14,563,526 3.7 1,456,353 0.4Hong Kong Dollar 12,903,686 3.3 1,290,369 0.3Swedish Krona 9,431,176 2.4 943,117 0.2South African Rand 1,594,143 0.4 159,414 0.0

374,721,754 96.2 37,472,175 9.5

iii) Price risk

Price risk is the risk that the carrying value of financial instrumentswill fluctuate as a result of changes in market prices (other than thosearising from interest rate risk or currency risk) caused by factorsspecific to a security, its issuer or all factors affecting a market or amarket segment. Exposure to price risk is mainly in equities,underlying funds, derivatives and commodities, if applicable. As atJune 30, 2016, approximately 97.3% (December 31, 2015 – 96.2%) of

the Fund’s net assets were exposed to price risk. If prices of theseinstruments had decreased or increased by 10%, with all othervariables held constant, net assets of the Fund would have decreasedor increased, respectively, by approximately $34,477,775(December 31, 2015 – $37,472,175). In practice, actual results maydiffer from this sensitivity analysis and the difference could bematerial.

iv) Credit risk




June 30, 2016 December 31, 2015

France 4.7 4.7Germany 0.7 0.8Hong Kong 3.4 3.3India – 1.1Italy 0.9 –Japan 14.1 10.0South Africa 0.5 0.4Spain 1.9 1.5Sweden 2.3 2.4Switzerland 3.9 6.1United Kingdom 3.9 3.7United States 61.0 62.2




($)Level 2

($)Level 3

($)Total($)

Equities 215,592,621 129,185,128 – 344,777,749

215,592,621 129,185,128 – 344,777,749

Unrealized loss on currency spotcontracts – (6,105) – (6,105)

215,592,621 129,179,023 – 344,771,644


($)Level 2

($)Level 3

($)Total($)

Equities 254,718,343 120,003,411 – 374,721,754

254,718,343 120,003,411 – 374,721,754






FOR

EIG

NE

QU

ITY

FUN

DS

93








FOR

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ITY

FUN

DS

94

Scotia Private Global Real Estate Pool (Unaudited)



2016December 31,

2015


Non-derivative financial assets 290,548,011 326,039,248Unrealized gain on currency spot contracts 4,520 –

Cash 13,227,259 18,142,720Receivable for securities sold 6,261,913 289,884Subscriptions receivable 416,200 125,429Accrued investment income and other 879,155 923,029

311,337,058 345,520,310

LIABILITIESCurrent liabilitiesManagement fee payable 1,769 –Payable for securities purchased 6,294,037 586,997Redemptions payable 246,666 101,005Accrued expenses 18,189 186Unrealized loss on currency spot contracts 3,725 –

6,564,386 688,188










contracts 795 (956)

Net gain (loss) on investments 5,697,775 11,341,257Securities lending 717 1,672Net realized and unrealized foreign currency translation gain

(loss) (445,493) (275,314)Other income 60 –



Total expenses 1,288,810 992,508








The accompanying notes are an integral part of the financial statements. Portfolio Adviser: Delaware Investment Advisers

FOR

EIG

NE

QU

ITY

FUN

DS

95

Scotia Private Global Real Estate Pool (Unaudited – Continued)




344,832,122 273,316,587



3,964,249 10,075,107


Pinnacle Series – (6)



Reinvested distributionsPinnacle Series – 6


(44,023,699) 18,874,105


Pinnacle Series (44,832,412) 17,626,488Series F 175,875 208,146Series I 4,597,087 11,114,572

(40,059,450) 28,949,206



304,772,672 302,265,793




Net realized (gain) loss on non-derivative financial assets (24,745,899) (43,924,208)Unrealized foreign currency translation (gain) loss 227,617 315,724Change in unrealized (gain) loss on non-derivative


contracts (795) 956Purchases of portfolio investments (245,965,512) (270,561,735)Proceeds from sale of portfolio investments 280,907,850 251,633,460Transaction costs 477,880 491,760Accrued investment income and other receivables 43,874 247,789Accrued expenses and other payables 19,772 23,297

Net cash provided by (used in) operating activities 39,480,966 (14,034,346)


Net cash provided by (used in) financing activities (44,168,810) 18,785,475Unrealized foreign currency translation gain (loss) (227,617) (315,724)Net increase (decrease) in cash (4,687,844) 4,751,129Cash (bank overdraft), beginning of period 18,142,720 5,181,558





FOR

EIG

NE

QU

ITY

FUN

DS

96




AverageCost ($)

CarryingValue ($)

Australia – 6.5%477,991 Charter Hall Group 2,265,913 2,342,043444,550 Dexus Property Group 3,679,338 3,880,032592,010 Goodman Group 3,926,938 4,078,539

1,225,275 Scentre Group 4,991,202 5,824,297346,445 Westfield Corporation 3,317,529 3,567,351

18,180,920 19,692,262

Canada – 1.1%113,000 RioCan Real Estate Investment Trust 2,991,199 3,314,290

France – 3.1%28,123 Gecina SA 4,937,202 4,971,38876,977 Klepierre 4,355,444 4,441,254

9,292,646 9,412,642

Germany – 4.9%206,647 Alstria Office Real Estate Investment Trust

AG 3,626,641 3,609,29385,145 Deutsche Wohnen AG-Br 3,324,989 3,736,907

161,905 Vonovia SE 6,932,972 7,641,458

13,884,602 14,987,658

Hong Kong – 5.4%347,500 Hongkong Land Holdings Limited 2,822,397 2,749,267730,000 Hysan Development Company Ltd. 4,084,222 4,213,556509,200 Link Real Estate Investment Trust, The 3,610,676 4,509,038436,000 Sino Land Company Limited 887,887 930,878256,341 Sun Hung Kai Properties Limited 4,187,018 3,997,626

15,592,200 16,400,365

Japan – 5.5%195,223 Mitsubishi Estate Company Ltd. 5,099,248 4,619,651246,600 Mitsui Fudosan Co., Ltd. 7,799,426 7,285,602

474 Nippon Prologis REIT Inc. 1,499,318 1,489,830952 Orix JREIT Inc. 1,875,276 2,116,106498 United Urban Investment Corporation 1,045,731 1,157,689

17,318,999 16,668,878

Netherlands – 0.4%3,681 Unibail-Rodamco SE 1,275,027 1,247,198

Singapore – 1.1%2,447,800 Mapletree Commercial Trust 3,380,076 3,482,498

Spain – 1.2%263,487 Merlin Properties Socimi SA 4,098,068 3,603,310

Sweden – 0.4%60,508 Fabege AB 1,312,060 1,323,813

United Kingdom – 5.2%759,717 Grainger PLC 3,344,484 2,756,422229,594 Great Portland Estates PLC 2,992,935 2,485,961769,056 Green REIT PLC 1,661,874 1,538,29986,783 Land Securities Group PLC 1,857,700 1,587,223

339,139 Shaftesbury PLC 5,590,779 5,176,11949,950 Unite Group PLC 528,118 535,015

151,585 Workspace Group PLC 2,321,683 1,824,687

18,297,573 15,903,726

United States – 60.5%46,662 Alexandria Real Estate Equities, Inc. 5,559,296 6,252,52456,683 American Campus Communities, Inc. 3,343,768 3,877,99074,700 Apartment Investment & Management

Company 3,784,346 4,269,89717,685 AvalonBay Communities, Inc. 3,391,315 4,128,92620,733 Boston Properties, Inc. 3,266,412 3,539,76784,090 Brixmor Property Group Inc. 2,689,827 2,880,06323,732 CoreSite Realty Corporation 2,355,929 2,724,437


AverageCost ($)

CarryingValue ($)

United States (cont’d)73,111 CubeSmart 2,656,665 2,922,32077,477 DCT Industrial Trust Inc. 3,443,510 4,817,742

134,271 Developers Diversified Realty Corporation 2,901,498 3,152,73437,469 Digital Realty Trust Inc. 3,878,902 5,285,99256,923 Douglas Emmett, Inc. 1,959,449 2,617,149

195,439 Duke Realty Corporation 4,617,928 6,740,54185,649 Empire State Realty Trust, Inc. 1,960,324 2,105,30511,558 Equinix Inc. Com Par $0.001 REIT 4,875,401 5,800,693

126,822 Equity Commonwealth 4,406,114 4,781,92687,576 Equity One, Inc. 3,247,205 3,647,86642,398 Equity Residential Real Estate Investment

Trust 3,382,375 3,780,12617,364 Extra Space Storage Inc 2,015,531 2,079,92216,876 Federal Realty Investment Trust 3,052,155 3,616,317

122,635 First Industrial Realty Trust Inc. 3,386,854 4,418,486141,888 General Growth Properties, Inc. 4,853,403 5,479,48255,958 Healthcare Realty Trust Inc. 2,443,995 2,534,393

192,939 Host Hotels & Resorts Inc. 3,999,724 4,048,28391,739 Kimco Realty Corporation 3,073,931 3,726,27358,021 Liberty Property Trust 2,668,223 2,983,062

121,821 Mack-Cali Realty Corporation 3,595,503 4,259,856109,604 MGM Growth Properties LLC 2,959,791 3,782,99554,481 National Retail Properties Inc. 3,238,184 3,647,29962,035 Pebblebrook Hotel Trust 2,397,946 2,107,82240,021 Post Properties, Inc. 2,940,985 3,162,57969,938 ProLogis 3,668,298 4,439,4739,980 Public Storage Real Estate Investment Trust 2,392,784 3,300,701

35,332 Regency Centers Corporation 3,270,794 3,829,280184,541 Retail Properties of America Inc. 3,646,859 4,036,89453,477 Simon Property Group, Inc. 11,056,507 15,013,9254,461 SL Green Realty Corporation 596,538 614,791

194,723 Spirit Realy Capital, Inc. 2,885,008 3,218,66694,128 Store Capital Corporation 3,128,181 3,588,16189,476 Sunstone Hotel Investors, Inc. 1,484,089 1,397,91818,402 Taubman Centers Inc 1,634,934 1,767,4083,295 The Geo Group Inc. 142,003 145,779

69,901 UDR Inc 2,962,316 3,340,511124,699 Urban Edge Properties 3,965,811 4,819,70639,452 Ventas, Inc. 3,236,616 3,718,669

1,564,000 VEREIT Inc. 3.75% Dec 15, 2020 2,000,419 2,016,89744,999 Vornado Realty Trust Real Estate Investment

Trust 5,481,227 5,831,65053,539 Washington Real Estate Investment Trust 2,066,426 2,180,20221,076 Welltower Inc. 1,912,808 2,077,973

157,878,107 184,511,371



NET ASSETS – 100.0% 304,772,672


FOR

EIG

NE

QU

ITY

FUN

DS

97




The Fund’s objective is to achieve superior long term returns throughincome and capital growth, by investing primarily in U.S., Canadianand non-North American real estate stocks and real estate investmenttrusts (REITs).






($)

Less than 1 year – –1-3 years – –3-5 years 2,016,897 –5-10 years – –> 10 years – –

2,016,897 –

As at June 30, 2016, had the prevailing interest rates increased ordecreased by 0.25%, assuming a parallel shift in the yield curve and allother variables held constant, net assets attributable to holders ofredeemable units would have decreased or increased, respectively, by$20,472 or approximately 0.0% (December 31, 2015 – nil)

ii) Currency risk


June 30, 2016

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 197,104,967 64.7 19,710,497 6.5European Euro 31,148,723 10.2 3,114,872 1.0Australian Dollar 20,581,493 6.8 2,058,149 0.7Japanese Yen 16,509,713 5.4 1,650,971 0.5British Pound 14,562,215 4.8 1,456,222 0.5Hong Kong Dollar 13,651,097 4.5 1,365,110 0.5Singapore Dollar 3,482,495 1.1 348,250 0.1Swedish Krona 1,323,813 0.4 132,381 0.0

298,364,516 97.9 29,836,452 9.8

December 31, 2015

Currency


($)


(%)

Impact onthe Fund

($)


(%)

US Dollar 231,941,304 67.3 23,194,130 6.7European Euro 32,885,773 9.5 3,288,577 1.0British Pound 25,049,537 7.3 2,504,954 0.7Japanese Yen 18,949,074 5.5 1,894,907 0.5Australian Dollar 17,995,447 5.2 1,799,545 0.5Hong Kong Dollar 11,979,125 3.5 1,197,913 0.3Singapore Dollar 3,360,487 1.0 336,049 0.1

342,160,747 99.3 34,216,075 9.8

iii) Price risk


iv) Credit risk


June 30, 2016 December 31, 2015

Credit ratings


ratedinstruments

(%)


(%)


ratedinstruments

(%)


(%)

NOT RATED 100.0 0.7 – –

100.0 0.7 – –




June 30, 2016 December 31, 2015

Australia 6.5 5.2Canada 1.1 0.5France 3.1 4.5Germany 4.9 2.5Hong Kong 5.4 5.0Italy – 0.5Japan 5.5 5.5Netherlands 0.4 0.7Singapore 1.1 1.0Spain 1.2 1.3Sweden 0.4 –United Kingdom 5.2 7.3United States 60.5 60.6


FOR

EIG

NE

QU

ITY

FUN

DS

98






($)Level 2

($)Level 3

($)Total($)

Equities 185,808,770 102,722,344 – 288,531,114Bonds and debentures – 2,016,897 – 2,016,897Unrealized gain on currency spot

contracts – 4,520 – 4,520

185,808,770 104,743,761 – 290,552,531

Unrealized loss on currency spotcontracts – (3,725) – (3,725)

185,808,770 104,740,036 – 290,548,806


($)Level 2

($)Level 3

($)Total($)

Equities 210,655,773 115,383,475 – 326,039,248

210,655,773 115,383,475 – 326,039,248










FOR

EIG

NE

QU

ITY

FUN

DS

99

Pinnacle Income Portfolio (Unaudited)



2016December 31,

2015


Non-derivative financial assets 11,975,280 11,677,943Cash 20,788 126,526Receivable for securities sold 64,000 –Subscriptions receivable 74 74Accrued investment income and other 32 33

12,060,174 11,804,576

LIABILITIESCurrent liabilitiesManagement fee payable 20,054 –Payable for securities purchased 7,000 –Redemptions payable 24,405 –Accrued expenses 1,626 4

53,085 4



Series A 12,007,089 11,804,572


Series A 12.40 12.22



Dividends 2,664 11,056Interest for distribution purposes 136,467 161,002Net realized gain (loss) on non-derivative financial assets 530,689 211,119Change in unrealized gain (loss) on non-derivative financial

assets (366,954) 68,313


EXPENSESManagement fees (note 5) 108,477 121,586Fixed administration fees (note 6) 8,795 9,860Independent Review Committee fees 563 9Interest expense and bank overdraft charges – 12Other fund costs 2 –Harmonized Sales Tax/Goods and Services Tax 11,738 13,237




Series A 173,291 306,786


Series A 0.18 0.29

WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESSeries A 970,834 1,063,332




Series A 11,804,572 13,023,707


Series A 173,291 306,786


Series A 831,367 766,055Payments on redemption

Series A (802,141) (1,493,325)

29,226 (727,270)


Series A 202,517 (420,484)


Series A 12,007,089 12,603,223




Non-cash transactions (138,871) (171,632)Net realized (gain) loss on non-derivative financial assets (530,689) (211,119)Change in unrealized (gain) loss on non-derivative financial

assets 366,954 (68,313)Purchases of portfolio investments (1,798,900) (30,000)Proceeds from sale of portfolio investments 1,747,169 796,780Accrued investment income and other receivables 1 79Accrued expenses and other payables 21,676 24,943

Net cash provided by (used in) operating activities (159,369) 647,524

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 831,367 767,071Amounts paid on redemption of redeemable units (777,736) (1,491,625)

Net cash provided by (used in) financing activities 53,631 (724,554)Net increase (decrease) in cash (105,738) (77,030)Cash (bank overdraft), beginning of period 126,526 119,792


Interest paid(1) – 12Interest received(1) 262 505



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100

Pinnacle Income Portfolio (Unaudited – Continued)

SCHEDULE OF INVESTMENT PORTFOLIOAs at June 30, 2016Numberof Units Issuer

AverageCost ($)

CarryingValue ($)

CANADIAN EQUITY FUNDS – 11.0%34,925 Scotia Private Canadian Growth Pool Series I 431,460 538,09510,244 Scotia Private Canadian Small Cap Pool Series I 324,052 353,83220,104 Scotia Private Canadian Value Pool Series I 362,892 424,545

1,118,404 1,316,472

FIXED INCOME FUNDS – 70.2%185,740 Scotia Private American Core-Plus Bond Pool

Series I 1,574,629 1,813,600132,804 Scotia Private High Yield Income Pool Series I 1,182,694 1,188,384488,563 Scotia Private Income Pool Series I 5,379,340 5,426,565

8,136,663 8,428,549

FOREIGN EQUITY FUNDS – 18.6%26,107 Scotia Private Emerging Markets Pool Series I 240,723 237,56524,026 Scotia Private Global Real Estate Pool Series I 281,432 487,38335,485 Scotia Private International Equity Pool Series I 433,300 407,1708,759 Scotia Private International Small to Mid Cap

Value Pool Series I 138,868 230,26019,550 Scotia Private U.S. Large Cap Growth Pool Series I 371,400 351,56916,672 Scotia Private U.S. Mid Cap Value Pool Series I 259,800 258,77517,865 Scotia Private U.S. Value Pool Series I 188,652 257,537

1,914,175 2,230,259



NET ASSETS – 100.0% 12,007,089


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The Fund’s objective is to generate current income and long-termcapital growth, with a bias towards income. It invests primarily in amix of equity and income mutual funds managed by the Manager.

The Fund invests primarily in mutual funds managed by the Managerand/or by the third party investment managers (the ‘‘UnderlyingFunds’’). To ensure the Fund’s composition meets the investmentobjectives of the Fund, the portfolio advisor monitors the UnderlyingFunds on an ongoing basis and rebalances the Fund’s assets among theUnderlying Funds.



The Fund could be exposed to indirect interest rate risk to the extentthat the Underlying Funds held financial instruments that weresubject to interest rate risk.

ii) Currency risk

The Fund could be exposed to indirect currency risk to the extent thatthe Underlying Funds held financial instruments that weredenominated in a currency other than its functional currency.

iii) Price risk


iv) Credit risk

The Fund could be exposed to indirect credit risk to the extent thatthe Underlying Funds invested in bonds and debentures, preferredshares and derivatives.




June 30, 2016 December 31, 2015

Canadian Equity Funds 11.0 10.6Fixed Income Funds 70.2 69.1Foreign Equity Funds 18.6 19.2




($)Level 2

($)Level 3

($)Total($)

Underlying funds 11,975,280 – – 11,975,280

11,975,280 – – 11,975,280


($)Level 2

($)Level 3

($)Total($)


11,677,943 – – 11,677,943







June 30, 2016

Underlying Fund


($)


(%)

Scotia Private Income Pool Series I 5,426,565 1.1

Scotia Private International Small toMid Cap Value Pool Series I 230,260 0.4

Scotia Private Canadian Growth PoolSeries I 538,095 0.3

Scotia Private U.S. Value Pool Series I 257,537 0.3

Scotia Private U.S. Large Cap GrowthPool Series I 351,569 0.3

Scotia Private American Core-PlusBond Pool Series I 1,813,600 0.2

Scotia Private Canadian Value PoolSeries I 424,545 0.2

Scotia Private U.S. Mid Cap ValuePool Series I 258,775 0.2

Scotia Private Global Real Estate PoolSeries I 487,383 0.2

Scotia Private Emerging Markets PoolSeries I 237,565 0.1

Scotia Private High Yield Income PoolSeries I 1,188,384 0.1

Scotia Private Canadian Small CapPool Series I 353,832 0.1

Scotia Private International EquityPool Series I 407,170 0.0

11,975,280


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December 31, 2015

Underlying Fund


($)


(%)



Scotia Private Canadian Growth PoolSeries I 912,694 0.6



Scotia Private American Core-PlusBond Pool Series I 1,755,431 0.2

Scotia Private Canadian Value PoolSeries I 334,949 0.2



Scotia Private Global Equity PoolSeries I 357,200 0.1

11,677,943




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103

Pinnacle Balanced Portfolio (Unaudited)



2016December 31,

2015


Non-derivative financial assets 69,449,332 76,028,923Cash 253,188 216,173Receivable for securities sold 396,000 75,000Subscriptions receivable 3,043 6,690Accrued investment income and other 65 80

70,101,628 76,326,866


535,481 35,845



Series A 69,566,147 76,291,021


Series A 13.75 13.67



Dividends 14,686 106,015Interest for distribution purposes 500,542 651,768Net realized gain (loss) on non-derivative financial assets 2,866,578 1,589,721Change in unrealized gain (loss) on non-derivative financial

assets (2,210,533) 1,912,062

Net gain (loss) on investments 1,171,273 4,259,566Other income 617 191


EXPENSESManagement fees (note 5) 754,103 890,536Fixed administration fees (note 6) 28,728 33,926Independent Review Committee fees 563 61Interest expense and bank overdraft charges 43 230Other fund costs 12 –Harmonized Sales Tax/Goods and Services Tax 70,599 84,686

Total expenses 854,048 1,009,439

Increase (decrease) in net assets attributable to holders ofredeemable units from operations 317,842 3,250,318


Series A 317,842 3,250,318


Series A 0.06 0.53

WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESSeries A 5,366,024 6,171,392




Series A 76,291,021 82,985,034


Series A 317,842 3,250,318


Series A 4,064,565 5,852,038Payments on redemption

Series A (11,107,281) (9,247,644)

(7,042,716) (3,395,606)


Series A (6,724,874) (145,288)


Series A 69,566,147 82,839,746



redeemable units 317,842 3,250,318Adjustments for:

Non-cash transactions (514,726) (756,742)Net realized (gain) loss on non-derivative financial assets (2,866,578) (1,589,721)Change in unrealized (gain) loss on non-derivative financial

assets 2,210,533 (1,912,062)Purchases of portfolio investments (8,537,200) (974,999)Proceeds from sale of portfolio investments 15,966,562 5,581,700Accrued investment income and other receivables 15 (27)Accrued expenses and other payables 136,907 173,922



Net cash provided by (used in) financing activities (6,676,340) (3,228,122)Net increase (decrease) in cash 37,015 544,267Cash (bank overdraft), beginning of period 216,173 27,518


Interest paid(1) 43 230Interest received(1) 518 1,014



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Pinnacle Balanced Portfolio (Unaudited – Continued)


AverageCost ($)

CarryingValue ($)

CANADIAN EQUITY FUNDS – 29.9%540,887 Scotia Private Canadian Growth Pool Series I 6,969,683 8,333,603148,053 Scotia Private Canadian Mid Cap Pool Series I 2,165,338 3,144,59189,471 Scotia Private Canadian Small Cap Pool Series I 2,328,994 3,090,285

295,998 Scotia Private Canadian Value Pool Series I 5,504,129 6,250,625

16,968,144 20,819,104

FIXED INCOME FUNDS – 40.3%784,786 Scotia Private High Yield Income Pool Series I 7,316,535 7,022,578

1,893,221 Scotia Private Income Pool Series I 20,832,896 21,028,389

28,149,431 28,050,967

FOREIGN EQUITY FUNDS – 29.6%153,971 Scotia Private Emerging Markets Pool Series I 1,501,581 1,401,074205,971 Scotia Private Global Real Estate Pool Series I 2,864,640 4,178,261471,081 Scotia Private International Equity Pool Series I 5,470,511 5,405,42451,204 Scotia Private International Small to Mid Cap

Value Pool Series I 835,351 1,346,094191,877 Scotia Private U.S. Large Cap Growth Pool

Series I 1,731,864 3,450,557153,370 Scotia Private U.S. Mid Cap Value Pool Series I 2,388,705 2,380,561167,687 Scotia Private U.S. Value Pool Series I 1,963,553 2,417,290

16,756,205 20,579,261



NET ASSETS – 100.0% 69,566,147


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The Fund’s objective is to achieve a balance of long-term capitalgrowth and current income. It invests primarily in a mix of equity andincome mutual funds managed by the Manager.

The Fund invests primarily in mutual funds managed by the Managerand/or by the third party investment managers (the “UnderlyingFunds”). To ensure the Fund’s composition meets the investmentobjectives of the Fund, the portfolio advisor monitors the UnderlyingFunds on an ongoing basis and rebalances the Fund’s assets among theUnderlying Funds.




ii) Currency risk


iii) Price risk


iv) Credit risk

The Fund could be exposed to indirect credit risk to the extent thatthe Underlying Funds invested in bonds and debentures, money marketinstruments or preferred shares.



June 30, 2016 December 31, 2015

Canadian Equity Funds 29.9 29.3

Fixed Income Funds 40.3 40.1

Foreign Equity Funds 29.6 30.3




($)Level 2

($)Level 3

($)Total($)


69,449,332 – – 69,449,332


($)Level 2

($)Level 3

($)Total($)


76,028,923 – – 76,028,923







June 30, 2016

Underlying Fund


($)


(%)

Scotia Private Canadian Growth PoolSeries I 8,333,603 4.5


Scotia Private Canadian Mid Cap PoolSeries I 3,144,591 3.8

Scotia Private Canadian Value PoolSeries I 6,250,625 3.7

Scotia Private U.S. Large Cap GrowthPool Series I 3,450,557 3.4

Scotia Private U.S. Value Pool Series I 2,417,290 2.6

Scotia Private International Small toMid Cap Value Pool Series I 1,346,094 2.6

Scotia Private U.S. Mid Cap Value PoolSeries I 2,380,561 2.1

Scotia Private Global Real Estate PoolSeries I 4,178,261 1.4

Scotia Private Emerging Markets PoolSeries I 1,401,074 0.6


Scotia Private Canadian Small CapPool Series I 3,090,285 0.5

Scotia Private International EquityPool Series I 5,405,424 0.5

69,449,332


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December 31, 2015

Underlying Fund


($)


(%)

Scotia Private Canadian Mid Cap PoolSeries I 4,306,383 6.3




Scotia Private U.S. Large Cap GrowthPool Series I 3,265,155 3.7

Scotia Private U.S. Value Pool Series I 3,174,971 3.2

Scotia Private International Small toMid Cap Value Pool Series I 1,552,446 3.1


Scotia Private Emerging Markets PoolSeries I 1,513,437 0.7


Scotia Private Global Equity PoolSeries I 2,323,230 0.6

Scotia Private Canadian Small CapPool Series I 2,466,389 0.4

Scotia Private International EquityPool Series I 3,483,750 0.4

76,028,923




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107

Pinnacle Growth Portfolio (Unaudited)



2016December 31,

2015


Non-derivative financial assets 10,152,132 11,305,458Cash 29,753 87,649Receivable for securities sold 27,000 –Subscriptions receivable 118 –Accrued investment income and other 14 80

10,209,017 11,393,187

LIABILITIESCurrent liabilitiesManagement fee payable 22,030 –Redemptions payable 1,920 –Accrued expenses 1,377 6

25,327 6



Series A 10,183,690 11,393,181


Series A 14.22 14.10

STATEMENTS OF COMPREHENSIVE INCOME

For the six month periods ended June 30 (note 1),(in dollars) 2016 2015


Dividends 1,303 22,575Interest for distribution purposes 38,242 48,481Net realized gain (loss) on non-derivative financial assets 413,382 349,862Change in unrealized gain (loss) on non-derivative financial

assets (242,487) 256,487

Net gain (loss) on investments 210,440 677,405Other income 205 –


EXPENSESManagement fees (note 5) 126,226 146,540Fixed administration fees (note 6) 7,889 9,158Independent Review Committee fees 563 9Interest expense and bank overdraft charges 68 113Other fund costs 2 –Harmonized Sales Tax/Goods and Services Tax 12,837 15,026



INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER SERIES

Series A 63,060 506,559

INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERSOF REDEEMABLE UNITS FROM OPERATIONS PER UNIT†

Series A 0.08 0.60

WEIGHTED AVERAGE NUMBER OF UNITS PER SERIESSeries A 763,051 849,883




Series A 11,393,181 12,441,279


Series A 63,060 506,559


Series A 326,974 989,087Payments on redemption

Series A (1,599,525) (2,118,359)

(1,272,551) (1,129,272)


Series A (1,209,491) (622,713)


Series A 10,183,690 11,818,566




Non-cash transactions (39,417) (70,690)Net realized (gain) loss on non-derivative financial assets (413,382) (349,862)Change in unrealized (gain) loss on non-derivative financial

assets 242,487 (256,487)Purchases of portfolio investments (1,326,899) (185,000)Proceeds from sale of portfolio investments 2,663,537 1,391,500Accrued investment income and other receivables 66 97Accrued expenses and other payables 23,401 29,274


CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of redeemable units 326,856 994,913Amounts paid on redemption of redeemable units (1,597,605) (2,118,359)

Net cash provided by (used in) financing activities (1,270,749) (1,123,446)Net increase (decrease) in cash (57,896) (58,055)Cash (bank overdraft), beginning of period 87,649 150,908


Interest paid(1) 68 113Interest received(1) 194 462



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Pinnacle Growth Portfolio (Unaudited – Continued)


AverageCost ($)

CarryingValue ($)

CANADIAN EQUITY FUNDS – 49.9%132,147 Scotia Private Canadian Growth Pool Series I 1,757,461 2,036,03236,266 Scotia Private Canadian Mid Cap Pool Series I 577,956 770,28421,731 Scotia Private Canadian Small Cap Pool Series I 596,721 750,57872,147 Scotia Private Canadian Value Pool Series I 1,375,965 1,523,539

4,308,103 5,080,433

FIXED INCOME FUNDS – 20.3%69,538 Scotia Private High Yield Income Pool Series I 639,380 622,251

129,725 Scotia Private Income Pool Series I 1,432,542 1,440,886

2,071,922 2,063,137

FOREIGN EQUITY FUNDS – 29.5%22,995 Scotia Private Emerging Markets Pool Series I 218,671 209,24830,196 Scotia Private Global Real Estate Pool Series I 432,877 612,55269,302 Scotia Private International Equity Pool Series I 763,618 795,2107,334 Scotia Private International Small to Mid Cap Value

Pool Series I 129,631 192,81328,039 Scotia Private U.S. Large Cap Growth Pool Series I 264,280 504,22822,803 Scotia Private U.S. Mid Cap Value Pool Series I 355,338 353,93623,626 Scotia Private U.S. Value Pool Series I 291,221 340,575

2,455,636 3,008,562



NET ASSETS – 100.0% 10,183,690


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The Fund’s objective is to achieve long-term capital growth andprovide some current income. It invests primarily in a mix of equityand income mutual funds managed by the Manager.

The Fund invests primarily in mutual funds managed by the Managerand/or by the third party investment managers (the “UnderlyingFunds”). To ensure the Fund’s composition meets the investmentobjectives of the Fund, the portfolio advisor monitors the UnderlyingFunds on an ongoing basis and rebalances the Fund’s assets among theUnderlying Funds.




ii) Currency risk


iii) Price risk


iv) Credit risk

The Fund could be exposed to indirect credit risk to the extent thatthe Underlying Funds invested in bonds and debentures, money marketinstruments or preferred shares.




June 30, 2016 December 31, 2015

Canadian Equity Funds 49.9 48.8Fixed Income Funds 20.3 19.7Foreign Equity Funds 29.5 30.7




($)Level 2

($)Level 3

($)Total($)


10,152,132 – – 10,152,132


($)Level 2

($)Level 3

($)Total($)


11,305,458 – – 11,305,458







June 30, 2016

Underlying Fund


($)


(%)



Scotia Private Canadian Mid Cap PoolSeries I 770,284 0.9





Scotia Private U.S. Mid Cap Value PoolSeries I 353,936 0.3



Scotia Private High Yield Income PoolSeries I 622,251 0.1



10,152,132


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December 31, 2015

Underlying Fund


($)


(%)

Scotia Private Canadian Mid Cap PoolSeries I 999,925 1.5









Scotia Private High Yield Income PoolSeries I 662,956 0.1



Scotia Private Global Equity PoolSeries I 347,185 0.1

11,305,458




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111

NOTES TO THE FINANCIAL STATEMENTSFor the periods indicated in Note 1.

1. The Funds1832 Asset Management L.P., a wholly owned subsidiary of the Bank ofNova Scotia (“Scotiabank”), is the manager and trustee (whereapplicable) of the funds. In this document, “we”, “us”, “our”, the“Manager”, the “Trustee”, and “1832 Asset Management” refer to 1832Asset Management L.P. The registered office of the Funds is 1Adelaide St. E, 28th Floor, Toronto, Ontario, M5C 2V9.

The funds presented in these financial statements are open-endedmutual fund trusts. Throughout this document, we refer to thesemutual fund trusts individually as a “Fund” and collectively, as the“Funds”.

The Funds are established under the laws of the Province of Ontariopursuant to an Amended and Restated Master Declaration of Trustdated November 24, 2011, as amended from time to time.

The Statements of Financial Position are as at June 30, 2016 andDecember 31, 2015, and the Statements of Comprehensive Income,Changes in Net Assets Attributable to Holders of Redeemable Unitsand Cash Flows are for the six month periods ended June 30, 2016 and2015. The Schedule of Investment Portfolio for each of the Funds is asat June 30, 2016. Throughout this document, reference to the periodsrefers to the reporting periods described above.

These financial statements were approved and authorized for issue onAugust 18, 2016 by the Board of Directors of 1832 Asset ManagementG.P. Inc., as general partner for and on behalf of 1832 AssetManagement L.P., in its capacity as Trustee of the Funds.

The investment objectives for each of the Funds are provided in therespective Fund’s “Fund Specific Notes”. The commencement date foreach Fund is as follows:

Scotia Private Pools Inception Date

Scotia Private American Core-Plus Bond Pool January 28, 2002

Scotia Private Canadian Growth Pool September 3, 1997

Scotia Private Canadian Mid Cap Pool January 28, 2002

Scotia Private Canadian Small Cap Pool September 3, 1997

Scotia Private Canadian Value Pool September 3, 1997

Scotia Private Emerging Markets Pool September 8, 2010

Scotia Private Global Equity Pool September 3, 1997

Scotia Private Global Real Estate Pool January 28, 2002

Scotia Private High Yield Income Pool September 3, 1997

Scotia Private Income Pool September 3, 1997

Scotia Private International Equity Pool September 3, 1997

Scotia Private International Small to Mid Cap Value Pool January 28, 2002

Scotia Private Short Term Income Pool September 3, 1997

Scotia Private Strategic Balanced Pool September 3, 1997

Scotia Private U.S. Large Cap Growth Pool January 18, 2001

Scotia Private U.S. Mid Cap Growth Pool September 3, 1997

Scotia Private U.S. Mid Cap Value Pool January 28, 2002

Scotia Private U.S. Value Pool September 3, 1997

Pinnacle Portfolios

Pinnacle Balanced Portfolio April 22, 2005

Pinnacle Growth Portfolio April 22, 2005

Pinnacle Income Portfolio April 22, 2005

Each Fund may offer an unlimited number of units of some or all of itsrespective series. Each series of a Fund is intended for differentinvestors.

A description of each series is provided below:

Series A: Series A units are only available through Scotia McLeod or otherwise as

permitted by the Manager.

Pinnacle Series: Pinnacle Series units are only available to investors who participate in

the Pinnacle Program.

Series F: Series F units are available for purchase into a fee-based account with

authorized brokers or dealers.

Series I: Series I units may only be purchased by eligible institutional investors

and other qualified investors as determined by the Manager.

Series M: Series M units are available to investors who have signed a

discretionary investment management agreement with the Manager or

Scotiatrust.

2. Summary of Significant AccountingPolicies

The significant accounting policies applied in the preparation of thesefinancial statements are set out below. These policies have beenconsistently applied to all the periods presented, unless otherwisestated

(a) Basis of preparation

These interim financial statements of the Funds have beenprepared in compliance with International Financial ReportingStandards (“IFRS”) applicable to the preparation of interimfinancial statements including, International AccountingStandards (“IAS”) 34, Interim Financial Statements.

The preparation of these financial statements in accordancewith IFRS requires the use of judgment in applying itsaccounting policies and to make estimates and assumptionsconcerning the future. Significant accounting judgements andestimates made by the management are disclosed in Note 3.

(b) Financial instruments

Classification

The Funds classify investments, including derivatives asfinancial assets or financial liabilities at fair value through profitand loss (FVTPL). This category has two sub categories:financial assets and financial liabilities are either held fortrading or designated at fair value through profit or loss atinception.

Financial assets or financial liabilities held for trading are thoseacquired principally for the purpose of selling or repurchasing inthe near future or on initial recognition as part of an identicalportfolio of financial instruments that are managed together forwhich there is evidence of actual short-term profit taking.Derivatives and any short positions are included in this category.

Financial assets and financial liabilities designated at fair valuethrough profit or loss at inception are those that are managedand their performance evaluated on a fair value basis inaccordance with the respective Funds’ investment strategy asdocumented in the Simplified Prospectus.

The Funds’ obligations for net assets attributable to holders ofredeemable units are presented at the redemption amount.

112

Recognition and measurement

Regular purchases and sales of investments are recognized onthe date on which the Funds commit to purchase or sell theirinvestments at fair value. Transaction costs are expensed asincurred in the Statements of Comprehensive Income.Subsequent to initial recognition, financial assets and liabilitiesat FVTPL are measured at fair value as presented below. Gainsand losses arising from changes in their fair value are includedin the Statements of Comprehensive Income for the periods inwhich they arise

(c) Fair value measurement and hierarchy of financialinstruments

Fair value of a financial instrument is the price that would bereceived to sell an asset or paid to transfer a liability in anorderly transaction between market participants at themeasurement date (i.e. an exit price). The fair value of financialassets and liabilities traded in active markets (such as publiclytraded derivatives and marketable securities) are based onquoted market prices at the close of trading on the reportingdate. The Funds use the last traded market price for bothfinancial assets and financial liabilities where the last tradedprice falls within that day’s bid-ask spread. In circumstanceswhere the last traded price is not within the bid-ask spread, theManager determines the point within the bid-ask spread that ismost representative of fair value based on the specific facts andcircumstances.

The fair value of financial assets and liabilities that are nottraded in an active market, including over the-counterderivatives, is determined using valuation techniques. The Fundsuse a variety of methods and make assumptions that are basedon market conditions existing at each reporting date. Valuationtechniques include the use of comparable recent arm’s lengthtransactions, reference to other instruments that aresubstantially the same, discounted cash flow analysis, optionpricing models and others commonly used by marketparticipants and which make the maximum use of observableinputs.

IFRS 13, Fair value measurement, requires the use anddisclosure of a fair value hierarchy that categorises into threelevels the inputs to valuation techniques used to measure fairvalue of financial instruments. The fair value hierarchy gives thehighest priority to quoted prices (unadjusted) in active marketsand the lowest priority to unobservable inputs. The three levelhierarchy based on inputs levels are defined as follows:

• Level 1: Fair value is based on unadjusted quoted prices inactive markets for identical assets or liabilities.

• Level 2: Fair value is based on inputs other than unadjustedquoted prices included in Level 1 that are observable for theassets or liabilities, either directly or indirectly.

• Level 3: Fair value is based on at least one significant non-observable input that is not supported by market data for thefinancial assets or liabilities.

Changes in valuation methodology may result in transfer in andout of a level. The Funds’ policy is to recognize these transfers asof the date of the event or circumstance giving rise to thetransfer. The three level fair value hierarchy, transfers betweenlevels and a reconciliation of level 3 financial instruments aredisclosed in the respective Fund’s “Fund Specific Notes”.

The Manager is responsible for performing the fair valuemeasurements included in the financial statements of the Funds,including level 3 measurements. The Manager obtains pricingfrom a third party pricing vendor, which is monitored andreviewed by the valuation team daily. At each financial reportingdate, the Manager reviews and approves all level 3 fair valuemeasurements. The Funds also have a Valuation Committeewhich includes the Chief Financial Officer, members of thefinance team, as well as members of the investment council andcompliance teams. The committee meets quarterly to performdetailed reviews of the valuations of investments held by theFunds.

Financial instruments are valued at their fair value assummarized below:

(i) North American equities are valued at the closing marketprice recorded by the security exchange on which thesecurity is principally traded. Non-North Americanequities are valued at fair value based on informationprovided by an independent pricing source.

(ii) Fixed income securities, including bonds and mortgage-backed securities, are valued using quotations receivedfrom independent pricing sources.

(iii) Short-term debt instruments are carried at amortizedcost, which approximates fair value.

(iv) Investments in underlying funds are valued based on theNet Asset Value per unit provided by the UnderlyingFund’s manager at the end of each valuation date.

(v) Unlisted warrants are valued using the Black-Scholesoption valuation model. The model factors in the timevalue of money and the volatility inputs significant to suchvaluation.

(vi) Options contracts are valued at their mid-price asreported by the principal exchange while the over-the-counter options are valued using quotations received fromindependent pricing sources.

(vii) Futures contracts are valued at their close prices on eachvaluation date.

(viii) Open forward currency contracts are valued at the gain orloss that would arise as a result of closing the position onthe valuation date.

(ix) Swap contracts are valued at the amount that the Fundwould receive or pay to terminate the swap, based on thecurrent value of the underlying interest on the valuationdate.

(x) Accumulator contracts are valued at the amount that theFund would receive or pay to close the accumulator

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contract as reported by the over-the-counter market onwhich the contract is traded.

(d) Net Assets versus Net Asset Value

The Funds’ accounting policies for measuring the fair value oftheir investments and derivatives are identical to those used inmeasuring their net asset value for transactions with unitholdersin accordance with Part 14 of National Instrument 81-106Investment Funds for Continuous Disclosure (“NI 81-106”),except where the last traded market price for financial assetsand liabilities are not within the bid-ask spread as describedabove. A comparison of the net assets per unit in accordance toIFRS (“Net Assets per unit”) and the net assets per unitcalculated in accordance to NI 81-106 (“Net Asset Value perunit”) are presented in the “Fund Specific Notes” for each Fund.

(e) Income recognition

Gains and losses arising from changes in fair value of financialinstruments, other than derivatives, are shown in the Statementsof Comprehensive Income as “Change in unrealized gain (loss)on non-derivative financial assets” and as “Net realized gain(loss) on non-derivative financial assets” when the positions areclosed out.

The premium received or paid on options purchased or writtenare included in the cost of the options. Any difference resultingfrom revaluation at the reporting date is treated as “Change inunrealized gain (loss) on options contracts”, while the gains andlosses realized when the position is closed is included in theStatements of Comprehensive Income as “Net realized gain(loss) on options contracts”.

Gains and losses arising from changes in fair value of spots,forwards, futures, swaps and accumulator contracts are shown inthe Statements of Comprehensive Income as “Change inunrealized gain (loss)” of the respective derivative contract andin the Statements of Financial Position as “Unrealized Gain” or“Unrealized Loss” of the respective derivative contract until thecontracts are closed out or expire. Once the contracts are closedout or have expired, the resulting realized gains and losses, offorwards, futures, swaps and accumulator contracts are shown inthe Statements of Comprehensive Income as “Net Realized gain(loss)” of the respective derivative contract.

Dividend income and distributions from underlying funds arerecognized on the ex-dividend date. Distributions received fromincome trusts are recognized based on the nature of theunderlying components such as dividend income, interestincome, capital gains, and return of capital by applying previousyear characterizations reported by the trust as current yearcharacterizations are not available until the following year. Theinterest income component of the distributions received fromunderlying funds are included as part of “Interest for distributionpurposes” in the Statements of Comprehensive Income.

Interest for distribution purposes includes the coupon interestreceived by the Fund, recognized on an accrual basis. The Funddoes not amortize premiums paid or discounts received on thepurchase of fixed income securities except for zero coupon

bonds which are amortized on a straight line basis. Realized gainor loss on the sale of short-term debt instruments are recordedas an adjustment to interest for distribution purposes.

(f) Functional and presentation currency and foreignexchange translation

The functional and presentation currency of the Funds is theCanadian dollar. Canadian dollars is the currency of primaryeconomic environment in which the Funds operate or wheremixed indicators exist in the primary environment, the Canadiandollar is the currency in which they raise capital. Any othercurrency other than functional currency represents foreigncurrency to the Funds. Amounts denominated in foreigncurrencies are converted into the functional currency as follows:

(i) Fair value of investments, derivative contracts andmonetary and non-monetary assets and liabilities at therates of exchange prevailing as at the valuation date;

(ii) Foreign income and expenses are translated intoCanadian dollars at the rates of exchange applicable onthe valuation date; and

(iii) Purchase or sale of investments and investment income atthe rates of exchange prevailing on the respective dates ofsuch transactions, while purchase or sale of monetaryassets at the spot rate agreed upon with the counterparty.

Gains and losses on foreign exchange incurred in the Funds frommonetary or non-monetary assets and liabilities are shown in theStatements of Comprehensive Income as “ Net realized andunrealized foreign currency translation gain (loss)”.

(g) Investments in unconsolidated structured entities

Certain Funds invest in mutual funds, exchange-traded funds orclosed-end funds managed by the Manager or by third partyinvestment managers. The relevant Funds consider allinvestments in such instruments(“Underlying Funds”) to beinvestments in unconsolidated structured entities based on thefact that the decisions made by these Underlying Funds are notgoverned by voting rights or any other similar rights held by theFunds. Consequently, the Funds, as Investment Entities accountfor these unconsolidated structured entities at fair value.

The Underlying Funds’ objectives assist the Funds in achievingtheir primary objectives, The investment strategies do notinclude the use of leverage. The Underlying Funds finance theiroperations by issuing redeemable units or shares which areputtable at the holder’s option, and entitle the holder to aproportional stake in the respective fund’s net assets. The Fundshold redeemable shares or units in each of their UnderlyingFunds. These investments are included in “Non-derivativefinancial assets” in the Statements of Financial Position. Thechange in fair value of each Underlying Fund is included in theStatements of Comprehensive Income in ‘Change in unrealizedgain (loss) of non-derivative financial assets’. The exposure toinvestments in Underlying Funds at fair value is disclosed in theFund’s “Fund Specific Notes”. The Funds’ maximum exposure to

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loss from their interests in Underlying Funds is equal to the totalcarrying value of its investments in Underlying Funds.

(h) Redeemable Units Issued by the Funds

The Funds’ outstanding redeemable units qualify as “puttableinstruments” as required by International Accounting Standard32: Financial Instruments: Presentation (“IAS 32”) which statesthat units or shares of an entity that include a contractualobligation for the issuer to repurchase or redeem them for cashor another financial asset should be classified as financialliability.

In accordance with IAS 32, the Funds’ redeemable units’entitlements include a contractual obligation to distribute anynet income and net realized capital gains at least annually incash (at the request of the unitholder) and therefore meet thecontractual obligation requirement.

This violates one of the criteria that are required in order for theredeemable units to be presented as equity under IAS 32.Consequently, the Funds’ outstanding redeemable units areclassified as financial liabilities in these financial statements.

(i) Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount ispresented in the Statements of Financial Position only if there isa legal right to offset the amounts and there is an intentioneither to settle on a net basis or to realize the asset and settlethe liability simultaneously. Income and expenses are presentedon a net basis only when permitted under IFRS, for gains andlosses arising from a group of similar transactions, such as gainsand losses from financial instruments at fair value through profitor loss. Financial assets and liabilities that are subject to masternetting or comparable agreements and the related potentialeffect of offsetting are disclosed in the respective Fund’s “FundSpecific Notes”.

(j) Other financial assets and liabilities

Other financial assets and liabilities other than investmentsecurities are valued at amortized cost. These balances areshort-term in nature; therefore, their carrying valuesapproximate fair values.

(k) Increase (decrease) in net assets attributable toholders of redeemable units per unit

“Increase (decrease) in net assets attributable to holders ofredeemable units per unit” is disclosed in the Statements ofComprehensive Income and represents, for each Series of units,the increase or decrease in net assets attributable to holders ofredeemable units from operations for the period attributable toeach Series divided by the weighted average number of unitsoutstanding for the corresponding Series during the period.

(l) Accounting standards issued but not yet effective

The final version of IFRS 9, Financial Instruments was issued bythe International Accounting Standards Board (“IASB”) in July2014 and will replace IAS 39, Financial Instruments:

Recognition and Measurement, related to the classification andmeasurement of financial assets and financial liabilities.

IFRS 9 relates to the classification and measurement of financialassets and financial liabilities in the Fund. Based on theManager’s analysis to date, there will likely be no materialimpact to the net asset value per unit of each series of the Fund.

IFRS 9 is effective for periods beginning on or after January 1,2018.

(m)Comparatives

Certain comparative figures on the Statements of Cash Flowswere reclassified to conform to the presentation for the periodended June 30, 2016. Amounts related to reinvested distributionsfrom underlying funds have been reclassified from Purchase ofinvestments to Non-Cash Transactions.

3. Significant accounting judgmentsand estimates

The preparation of financial statements requires management to usejudgment in applying its accounting policies and to make estimatesand assumptions about the future. These estimates are made based oninformation available as at the date of issuance of the financialstatements. Actual results could materially differ from thoseestimates. The following discusses the most significant accountingjudgments and estimates that the Funds have made in preparing thefinancial statements:

Investment Entities

In accordance with IFRS 10: Consolidated FinancialStatements, the Manager has determined that the Funds meetthe definition of an Investment Entity which requires that theFunds obtain funds from one or more investors for the purposeof providing investment management services, commit to theirinvestors that their business purpose is to invest funds solelyfor returns from capital appreciation, investment income, orboth; and measure and evaluate the performance of theirinvestments on a fair value basis. Consequently, the Funds donot consolidate, if any,their investment in underlying funds,but instead measure these at FVTPL, as required by theaccounting standard.

Classification and measurement of investments and

application of the fair value option

In classifying and measuring financial instruments held by theFunds, the Manager is required to make significant judgmentsabout whether or not the business of the Funds is to invest on atotal return basis for the purpose of applying the fair valueoption for financial assets under IAS 39: “FinancialInstruments – Recognition and Measurement”. The mostsignificant judgments made include the determination thatcertain financial instruments are held-for-trading and that thefair value option can be applied to those which are not.

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Fair value measurement of derivatives and securities

not quoted in an active market

Key areas of estimation, where the Manager has made complex orsubjective judgments, include the determination of fair values offinancial instruments and derivatives that are not quoted in an activemarket. The use of valuation techniques for financial instruments andderivatives that are not quoted in an active market requires theManager to make assumptions that are based on market conditionsexisting as at the date of the financial statements. Changes in theseassumptions as a result of changes in market conditions could affectthe reported fair value of financial instruments and derivatives.

4. Discussion of Financial InstrumentRisk

Each Fund’s investment activities expose it to a variety of financialrisks: market risk (including interest rate risk, currency risk, andother price risk), credit risk and liquidity risk. Each Fund’sinvestment practices include portfolio monitoring to ensurecompliance with stated investment guidelines. The Manager seeks tominimize potential adverse effects of risks on each Fund’sperformance by employing and overseeing professional andexperienced portfolio advisors that regularly monitor each Fund’ssecurities and financial market developments. The risks are measuredusing a method that reflects the expected impact on the results andnet assets attributable to unitholders of the Funds from reasonablypossible changes in the relevant risk variables.

The Manager maintains a risk management practice that includesmonitoring compliance with investment restrictions to ensure thatthe Funds are being managed in accordance with the Funds’ statedinvestment objectives, strategies and securities regulations.

Some Funds invest in underlying funds. These Funds are indirectlyexposed to market risk, credit risk, and liquidity risk in the event thatthe underlying funds invest in financial instruments that are subjectto those risks.

A Fund’s exposure to market risk, credit risk and liquidity risk, whereapplicable, is disclosed in the respective Fund’s “Fund Specific Notes”.

(a) Market risk

(i) Interest rate risk

Interest rate risk arises from the possibility that changes in interestrates will affect the future cash flows or the fair values of interest-bearing financial instruments. Each Fund’s exposure to interest raterisk is concentrated in its investments in debt instruments (such asbonds and debentures) and interest rate sensitive derivativeinstruments, if any.

(ii) Currency risk

The Funds may invest in monetary and non-monetary assetsdenominated in currencies other than their functional currency.Currency risk is the risk that the value of foreign investments willfluctuate due to changes in the foreign exchange rates of thosecurrencies in relation to the Fund’s functional currency. Funds may

enter into foreign exchange forward contracts or currency futurescontracts for hedging purposes to reduce their foreign currency riskexposure.

(iii) Price risk

Price risk is the risk that the fair value of a Fund’s financialinstruments will fluctuate as a result of changes in market prices(other than those arising from interest rate risk or currency risk)caused by factors specific to a security, its issuer or all factorsaffecting a market or a market segment. Exposure to price risk ismainly in equities, derivatives and commodities. The maximum riskresulting from these financial instruments is equivalent to their fairvalue, except for written options, short sales and futures contractssold, where possible losses can be unlimited.

(b) Credit risk

Credit risk is the risk that the issuer of a financial instrument will failto discharge an obligation or commitment that it has entered intowith the Funds. A Fund’s investment in debt instruments (such asbonds and debentures) represents the main concentration of creditrisk. The fair value of debt instruments includes consideration of thecreditworthiness of the issuer, and accordingly, represents themaximum credit risk exposure to the Funds. All the transactions inlisted securities are settled or paid upon delivery using approvedbrokers with an approved credit rating. The risk of default with thecounterparty is considered minimal, as delivery of securities sold isonly made once the broker has received payment. Payment is onlymade on a purchase once the securities have been received by thebroker. In instances where the credit rating of the counterparty wasto fall below the approved rating, the Manager would take theappropriate action.

The Trade Management Oversight Committee (“ManagementCommittee”) responsible for regulatory evaluation and improvementof trade management policies and procedure, when applicable, is alsoresponsible for counterparty selection and oversight. TheManagement Committee reviews counterparties regularly to ensurethey still meet preapproved credit standards established by theManagement Committee. The counterparty policies and proceduresestablished by the Management Committee have been reviewed andapproved by the Board of Directors of the Manager.

The credit ratings reported in the financial statements for issuers ofdebt instruments, counterparties of derivative transactions, primebrokers and custodians, where applicable, are S&P Global Ratings’credit rating or S&P Global Ratings equivalent for credit ratings fromother approved rating agencies.

The Funds can also be exposed to credit risk to the extent that theFunds’ custodian may not be able to settle trades for cash. Canadiansecurities regulations require that the Funds employ a custodian thatmeets certain capital requirements. These regulations state that,among other things, a fund’s custodian be either a bank listed inSchedule I, II, or III of the Bank Act (Canada), or a companyincorporated in Canada affiliated with a bank with shareholders’equity of not less than $10,000,000. The Bank of Nova Scotia, which isthe custodian for all the Funds meets all Canadian SecuritiesAdministrators’ requirements to act as custodian.

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A Fund may enter into securities lending transactions withcounterparties whereby the Fund temporarily exchanges securities forcollateral with a commitment by the counterparty to deliver the samesecurities on a future date. Credit risk associated with thesetransactions is considered minimal as all counterparties haveapproved credit rating and the market value of cash or securities heldas collateral must be at least 102% of the fair value of the securitiesloaned as at the end of each trading day.

(c) Liquidity risk

The Funds’ exposure to liquidity risk arises primarily from the dailycash redemption of units. The Funds primarily invest in securitiesthat are traded in active markets and can be readily disposed of. Inaddition, each Fund aims to retain sufficient cash and cash equivalentpositions to maintain liquidity. The Funds may, from time to time,enter into over-the-counter derivative contracts or invest in securitiesthat are not traded in an active market and may be illiquid. Illiquidsecurities are identified in the respective Fund’s Schedule ofInvestment Portfolio.

(d) Concentration risk

Concentrations of risk arise from financial instruments that havesimilar characteristics and are affected similarly by changes ineconomic or other conditions. The identification and disclosure ofrisks concentration is provided in the respective Fund’s “FundSpecific Notes”.

5. Management FeesThe Funds pay the Manager management fees for each series ofsecurities, other than Series I. Management fees for Series I securitiesare paid directly by investors. The management fees cover the costs ofmanaging the Funds, arranging for investment analysis,recommendations and investment decision making for the Funds,arranging for, distribution of the Funds, marketing and promotion ofthe Funds and providing or arranging for other services for the Funds.

The management fee for all Series except Series I & Pinnacle Series isan annualized rate based on the net asset value of each series of theFunds. The management fee for Series I & Pinnacle Series arenegotiated and paid directly by these unitholders and not by theFunds. The Funds’ management fees are accrued daily and payablemonthly on the first business day of the following calendar month.

The Manager may reduce the effective management fee payable byclients who invest large amounts in a particular Fund by waiving aportion of the management fee that it would otherwise be entitled toreceive from the Fund or a securityholder and directing the Fund tomake a management fee distribution, in the case of clients of theFunds. All management fee distributions and management fee rebatesare automatically reinvested in additional units of the relevant seriesof the Funds.

There is no duplication of management fees, sales charges orredemption fees between the Funds and the Underlying Funds helddirectly by them, if any. The Manager is entitled to a maximum annualmanagement fee, exclusive of sales taxes, as follows:

% of Net Asset Value

PinnacleSeries orSeries A Series F Series M

Scotia Private PoolsScotia Private Short Term Income Pool 1.25% 0.50% –Scotia Private Income Pool 1.25% 0.70% –Scotia Private High Yield Income Pool 1.25% 0.75% 0.30%Scotia Private American Core-Plus Bond Pool 1.25% 0.75% –Scotia Private Strategic Balanced Pool 2.50% 1.00% –Scotia Private Canadian Value Pool 2.50% 1.00% –Scotia Private Canadian Growth Pool 2.50% 1.00% –Scotia Private Canadian Small Cap Pool 2.50% 1.00% –Scotia Private Canadian Mid Cap Pool 2.50% 1.00% –Scotia Private U.S. Value Pool 2.50% 1.00% –Scotia Private U.S. Large Cap Growth Pool 2.50% 1.00% –Scotia Private U.S. Mid Cap Growth Pool 2.50% 0.80% 0.55%Scotia Private U.S. Mid Cap Value Pool 2.50% 0.80% 0.55%Scotia Private International Equity Pool 2.50% 1.00% –Scotia Private International Small to Mid Cap Value

Pool 2.50% 1.00% –Scotia Private Global Equity Pool 2.50% 1.00% –Scotia Private Global Real Estate Pool 2.50% 1.00% –Scotia Private Emerging Markets Pool 2.50% – 0.70%

Pinnacle PortfoliosPinnacle Income Portfolio 1.85% – –Pinnacle Balanced Portfolio 2.10% – –Pinnacle Growth Portfolio 2.40% – –

6. Fixed Administration Fees andOperating Expenses

The Manager pays certain operating expenses of the Funds, otherthan Scotia Private Short Term Income Pool, (“FAF Funds”). Theseexpenses include regulatory filing fees and other day-to-day operatingexpenses including, but not limited to, transfer agency andrecordkeeping, accounting and fund valuation costs, custody fees,audit and legal fees, administration costs, bank charges, costs ofpreparing and distributing annual and semi-annual reports,prospectuses, annual information forms, Fund Facts and statements,investor communications and continuous disclosure materials. TheManager is not obligated to pay any other expense, cost or fee,including those arising from new government or regulatoryrequirements relating to the foregoing expenses, costs and fees. Inreturn, each Series of the FAF Funds pays a Fixed Administration feeto the Manager (the “Fixed Administration fee”). Up to December 31,2016, the Fixed Administration Fee payable by each Series of theFunds is subject to a transitional adjustment payment, details ofwhich are presented in the Funds’ simplified prospectus.

In addition to the Fixed Administration Fee, each Series of the FAFFunds pays certain operating expenses directly, referred to as “OtherFund Costs”. These include the costs and expenses related to theIndependent Review Committee (“IRC”) of the Funds, costsassociated with the change to IFRS and the ongoing audit costsassociated with compliance with IFRS, the cost of any government orregulatory requirements imposed commencing after May 14, 2014,including compliance with Canadian OTC derivatives trade reportingrules, compliance with the Volcker Rule under Dodd Frank WallStreet Reform and Consumer Protection Act and other applicable U.S.regulations, and any new types of costs, expenses or fees no incurredprior to May 14, 2014, including those related to external services thatwere not commonly charged in the Canadian mutual fund industry as

117

of May 14, 2014, any new fees introduced after May 14, 2014 by asecurities regulators or other government authority that is based onthe assets or other criteria of the Funds, any transaction costs,including all fees and costs related to derivatives, and any borrowingcosts, and taxes (including, but not limited to, GST or HST, asapplicable). Refer to the simplified prospectus of the Funds for moredetails on Other Fund Costs. Other Fund Costs will be allocatedamong the FAF Funds and each Series of the FAF Funds is allocatedits own expenses and its proportionate share of these expenses thatare common to all Series.

The Fixed Administration Fee does not apply to Scotia Private ShortTerm Income Pool. Each series of this Fund pays its own share of allexpenses (“Operating Expenses”) common to the Funds along withseries specific expenses relevant to each Series. Operating expensesmay include legal fees and other costs incurred in order to complywith legal and regulatory requirements and policies, audit fees, taxes,brokerage commissions, unitholder communication costs and other

administrative costs. Examples of other administrative costs includedepartmental expenses incurred and paid by the Manager whichsupport the daily operation of the Funds. These expenses also includethe costs in connection with the operation of the IRC (such as thecosts of holding meetings, insurance premiums for the IRC, and feesand expenses of any advisor engaged by the IRC), the fees paid toeach IRC member, and the reasonable expenses associated with theperformance of his or her duties as an IRC member.

The Manager may, in some years and in certain cases, pay a portion ofa Series’ Fixed Administration Fee, Other Fund Costs or OperatingExpenses. The Fixed Administration Fee, Other Fund Costs andOperating Expenses, as applicable, are included in the managementexpense ratio of each Series of a Fund.

The Fixed Administration Fee, Other Fund Costs and OperatingExpense are accrued daily and paid monthly. The maximum annualrates of the Fixed Administration Fee, which are a percentage of thenet asset value for each series of units of each Fund, are as follows:

% of Net Asset Value

Series A Series F Series I Series M Pinnacle Series

Scotia Private PoolsScotia Private Income Pool n/a 0.08 0.03 – 0.07Scotia Private High Yield Income Pool n/a 0.05 0.03 0.03 0.11Scotia Private American Core-Plus Bond Pool n/a 0.10 0.03 – 0.18Scotia Private Strategic Balanced Pool n/a 0.10 – – 0.30Scotia Private Canadian Value Pool n/a 0.10 0.05 – 0.15Scotia Private Canadian Growth Pool n/a 0.10 0.04 – 0.15Scotia Private Canadian Small Cap Pool n/a 0.10 0.03 – 0.22Scotia Private Canadian Mid Cap Pool n/a 0.10 0.08 – 0.24Scotia Private U.S. Value Pool n/a 0.10 0.03 – 0.21Scotia Private U.S. Large Cap Growth Pool n/a 0.10 0.07 – 0.27Scotia Private U.S. Mid Cap Growth Pool n/a 0.10 0.04 0.05 0.50Scotia Private U.S. Mid Cap Value Pool n/a 0.10 0.10 0.08 0.49Scotia Private International Equity Pool n/a 0.10 0.04 – 0.24Scotia Private International Small to Mid Cap Value Pool n/a 0.10 0.10 – 0.50Scotia Private Global Equity Pool n/a 0.10 0.04 – 0.31Scotia Private Global Real Estate Pool n/a 0.10 0.03 – 0.11Scotia Private Emerging Markets Pool n/a – 0.07 0.09 0.23

Pinnacle PortfoliosPinnacle Income Portfolio 0.15 – – – –Pinnacle Balanced Portfolio 0.08 – – – –Pinnacle Growth Portfolio 0.15 – – – –

7. Redeemable UnitsUnits issued and outstanding represent the capital of each Fund.Each of the Funds may issue an unlimited number of units. Each unitis redeemable at the option of the unitholder in accordance with theDeclaration of Trust, ranks pari passu with all other units of theFunds and entitles the unitholder to a proportionate undividedinterest in the Net Asset Value of the Funds. Unitholders are entitledto distributions when declared. Distributions on units of a Fund arereinvested in additional units of the Fund or at the option of theunitholder, paid in cash. The Funds’ capital is managed in accordance

with each of the Funds’ investment objectives, policies andrestrictions, as outlined in the Funds’ prospectus. The Funds have nospecific restrictions or specific capital requirements on thesubscriptions or redemptions of units, other than minimumsubscription requirements.

The units of each Series of the Funds are issued and redeemed attheir Net Asset Value per unit of each Series which is determined asof the close of business on each day that the Toronto Stock Exchangeis open for trading. The Net Asset Value per unit is calculated bydividing the Net Asset Value per Series by the total number ofoutstanding units of each Series.

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For the periods ended June 30, 2016 and 2015, the following number of units were issued, reinvested and redeemed:

June 2016 June 2015

OpeningUnits

UnitsIssued

UnitsReinvested

UnitsRedeemed (i)

EndingUnits

OpeningUnits

UnitsIssued

UnitsReinvested

UnitsRedeemed (i)

EndingUnits

Scotia Private AmericanCore-Plus Bond PoolPinnacle Series Units 7,116,663 3,113,659 140,943 829,012 9,542,253 4,290,006 1,759,300 80,924 284,851 5,845,379Series F Units 14,295 3,121 147 – 17,563 13,801 2,782 137 2,978 13,742Series I Units 70,608,961 1,114,461 1,150,020 1,176,198 71,697,244 61,446,382 8,276,473 1,060,844 3,325,325 67,458,374

Scotia Private CanadianGrowth PoolPinnacle Series Units 10,026,269 2,950,603 – 1,431,292 11,545,580 8,150,701 1,352,260 – 793,640 8,709,321Series F Units 49,767 7,026 – 11,749 45,044 73,051 10,518 – 29,861 53,708Series I Units 721,391 132,835 – 146,268 707,958 13,518,636 1,174,980 106,372 14,072,525 727,463

Scotia Private CanadianMid Cap PoolPinnacle Series Units 3,143,132 863,110 – 554,476 3,451,766 2,561,565 412,100 – 225,478 2,748,187Series F Units 10,009 4,104 – 2,692 11,421 9,364 2,613 – 5,112 6,865Series I Units 504,757 54,458 – 102,120 457,095 308,097 130,618 – 22,002 416,713

Scotia Private CanadianSmall Cap PoolPinnacle Series Units 2,362,718 649,724 – 316,646 2,695,796 2,112,990 276,011 – 188,677 2,200,324Series F Units 33,973 29,961 – 7,951 55,983 58,109 2,424 – 28,724 31,809Series I Units 13,932,082 1,651,967 – 753,274 14,830,775 14,422,203 1,158,709 114,613 2,709,016 12,986,509

Scotia Private CanadianValue PoolPinnacle Series Units 7,868,606 1,456,581 – 1,487,391 7,837,796 5,666,390 1,347,999 – 485,789 6,528,600Series F Units 34,980 5,170 – 6,161 33,989 27,547 7,592 – 17,269 17,870Series I Units 525,069 4,985 – 141,803 388,251 517,950 22,399 – 26,039 514,310

Scotia PrivateEmerging MarketsPoolPinnacle Series Units 4,652,145 1,507,374 – 336,042 5,823,477 3,479,000 704,592 – 236,580 3,947,012Series I Units 16,362,952 3,257,616 – 953,012 18,667,556 12,805,973 2,289,995 – 798,551 14,297,417Series M Units 1,713,823 123,637 – 274,638 1,562,822 1,411,761 215,568 – 130,986 1,496,343

Scotia Private GlobalEquity PoolPinnacle Series Units 2,804,660 123,458 – 1,605,355 1,322,763 1,322,764 394,928 – 261,231 2,651,668Series F Units 52,066 218,058 – 17,812 252,312 46,987 12,848 – 11,903 47,932Series I Units 13,137,194 1,190,699 – 687,707 13,640,186 20,273,395 1,886,742 63,892 9,298,741 12,925,288

Scotia Private GlobalReal Estate PoolPinnacle Series Units 9,841,242 1,066,720 – 3,473,677 7,434,285 8,307,585 1,606,002 – 959,851 8,953,736Series F Units 97,260 17,817 – 9,109 105,968 100,026 26,697 – 18,190 108,533Series I Units 7,627,152 626,529 – 491,132 7,762,549 7,146,893 2,140,039 – 1,834,376 7,452,556

Scotia Private HighYield Income PoolPinnacle Series Units 19,592,175 3,707,034 635,878 1,400,817 22,534,270 14,556,998 3,364,334 523,499 756,392 17,688,439Series F Units 1,771,696 96,710 11,621 42,732 1,837,295 1,536,581 154,280 9,479 45,409 1,654,931Series I Units 52,227,011 2,420,729 1,662,736 390,140 55,920,336 49,991,293 5,192,291 1,593,616 9,624,608 47,152,592Series M Units 50,693,862 5,885,319 1,185,140 6,707,207 51,057,114 30,113,831 4,736,287 698,374 4,379,172 31,169,320

Scotia Private IncomePoolPinnacle Series Units 36,546,672 7,465,128 540,288 3,911,816 40,640,272 27,579,029 7,205,932 487,731 2,054,429 33,218,263Series F Units 198,810 35,538 1,216 38,872 196,692 250,430 25,256 1,822 72,775 204,733Series I Units 2,757,463 6,436 36,133 288,521 2,511,511 2,933,224 44,724 46,753 59,032 2,965,669

Scotia PrivateInternational EquityPoolPinnacle Series Units 7,693,860 5,069,243 1 648,333 12,114,771 5,833,723 1,062,149 – 613,455 6,282,417Series F Units 103,945 23,188 – 6,720 120,413 63,610 13,103 – 20,596 56,117Series I Units 67,612,353 8,142,306 – 1,729,333 74,025,326 44,408,986 16,948,737 – 3,109,036 58,248,687

Scotia PrivateInternational Smallto Mid Cap ValuePoolPinnacle Series Units 1,642,128 467,908 – 199,128 1,910,908 1,525,769 246,816 – 197,752 1,574,833Series F Units 23,211 4,379 – 1,896 25,694 38,926 15,561 – 20,205 34,282Series I Units 77,390 781 – 8,464 69,707 106,204 282 – 20,147 86,339

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June 2016 June 2015

OpeningUnits

UnitsIssued

UnitsReinvested

UnitsRedeemed (i)

EndingUnits

OpeningUnits

UnitsIssued

UnitsReinvested

UnitsRedeemed (i)

EndingUnits

Scotia Private Short TermIncome PoolPinnacle Series Units 608,302 246,687 777 339,543 516,223 568,221 186,439 1,277 235,965 519,972Series F Units 14,701 600 5 8,814 6,492 9,032 13,004 27 4,324 17,739

Scotia Private StrategicBalanced PoolPinnacle Series Units 2,874,516 474,115 46,279 375,056 3,019,854 2,315,056 704,577 34,394 286,418 2,767,609Series F Units 31,789 6,637 96 2,226 36,296 21,880 7,768 66 8,498 21,216

Scotia Private U.S. Large CapGrowth PoolPinnacle Series Units 4,144,093 1,701,411 – 543,270 5,302,234 4,530,986 622,191 – 543,155 4,610,022Series F Units 45,964 87,498 – 13,409 120,053 35,558 3,525 – 9,099 29,984Series I Units 295,235 60,632 – 14,898 340,969 346,444 44,084 – 46,776 343,752

Scotia Private U.S. Mid CapGrowth PoolPinnacle Series Units 674,432 37,130 – 411,960 299,602 558,534 138,346 – 76,150 620,730Series F Units 8,621 885 – 2,087 7,419 5,594 2,114 – 1,322 6,386Series M Units 1,867,691 118,523 – 222,851 1,763,363 650,459 100,666 – 53,231 697,894

Scotia Private U.S. Mid CapValue PoolPinnacle Series Units 873,002 2,958,467 – 158,779 3,672,690 915,292 79,731 – 88,852 906,171Series F Units 18,535 4,487 – 3,423 19,599 16,309 3,853 – 5,362 14,800Series I Units 93,457 239,333 – 16,233 316,557 8,657 59,989 – – 68,646Series M Units 3,703,142 233,940 – 437,807 3,499,275 1,300,385 165,195 – 107,536 1,358,044

Scotia Private U.S. ValuePoolPinnacle Series Units 6,139,031 1,151,210 – 1,007,072 6,283,169 5,054,050 782,766 1 418,658 5,418,159Series F Units 31,902 2,888 – 5,976 28,814 29,449 4,633 – 15,464 18,618Series I Units 392,926 15,323 – 72,109 336,140 13,496,390 1,176,674 – 14,311,857 361,207

Pinnacle Balanced PortfolioSeries A Units 5,579,731 303,677 – 825,732 5,057,676 6,273,642 423,121 – 664,606 6,032,157

Pinnacle Growth PortfolioSeries A Units 808,054 23,808 – 115,954 715,908 900,654 68,197 – 145,313 823,538

Pinnacle Income PortfolioSeries A Units 966,356 68,344 – 66,043 968,657 1,081,558 61,210 – 120,168 1,022,600

(i) Included in units redeemed are redemptions related to payments of the Pinnacle Program Fee, where applicable.

8. Income TaxesEach of the Funds qualify or expect to qualify as a mutual fund trustunder the Income Tax Act (Canada). The Funds are subject to tax ontheir net investment income, including the taxable portion of netrealized capital gains that are not paid or payable to theirunitholders. Each Fund distributes sufficient amounts of its netinvestment income, including net realized capital gains, less theamount retained to enable each Fund to utilize any available taxlosses or, if applicable, tax credits attributable to redemptions duringthe period by its unitholders such that no income tax will be paid orpayable by the Funds. Such net investment income, including netrealized capital gains are taxable in the hands of the unitholders.Accordingly, the Funds do not record Canadian income taxes in theirfinancial statements.

In certain circumstances, the Funds may distribute a return ofcapital. A return of capital is generally not taxable to unitholders butwill reduce the adjusted cost base of the units held.

Losses Carried Forward

Capital losses can be carried forward indefinitely to reduce future netrealized capital gains. Non-capital losses for income tax purposes maybe carried forward up to twenty years and applied against all sourcesof income. Since the Funds do not record income taxes, the taxbenefit of capital and non-capital losses have not been reflected inthe Statements of Financial Position as a deferred income tax asset.

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As at June 30, 2016, the Trust Funds have capital and/or non-capitallosses available to carry forward as indicated in the table below:

Yearof

expiry

Non-Capital

Loss$

CapitalLoss

$

Scotia Private PoolsScotia Private American Core-Plus Bond Pool – – 34,131,609Scotia Private Canadian Growth Pool – – 36,676,397Scotia Private Canadian Mid Cap Pool – – –Scotia Private Canadian Small Cap Pool – – –Scotia Private Canadian Value Pool – – 9,847,460Scotia Private Emerging Markets Pool – – 14,109,452Scotia Private Global Equity Pool – – –Scotia Private Global Real Estate Pool – – –Scotia Private High Yield Income Pool – – 8,661,266Scotia Private Income Pool – – 3,293,716Scotia Private International Equity Pool – – –Scotia Private International Small to Mid Cap Value

Pool – – 20,492,112Scotia Private Short Term Income Pool – – –Scotia Private Strategic Balanced Pool – – 5,159,828Scotia Private U.S. Large Cap Growth Pool – – 4,892,476Scotia Private U.S. Mid Cap Growth Pool – – 31,552,440Scotia Private U.S. Mid Cap Value Pool – – –Scotia Private U.S. Value Pool – – –

Pinnacle PortfoliosPinnacle Balanced Portfolio – – 130,494Pinnacle Growth Portfolio 2030 204,326 1,304,819

2032 2,8492035 51,003

Pinnacle Income Portfolio – – –

Withholding Taxes

The Funds currently incur withholding taxes imposed by certaincountries on investment income and in some cases, capital gains.Such income and gains are recorded on a gross basis and the relatedwithholding taxes are shown as a separate expense in the Statementsof Comprehensive Income.

Uncertain Income Taxes

The Funds invest in securities issued by entities which are domiciledin countries other than Canada. These foreign countries may imposetaxes on capital gains realized by non-residents. In addition, theFunds may be required to determine these capital gains taxes on aself-assessment basis; therefore, such taxes may not be deducted bythe Fund’s broker on a “withholding” basis.

As at June 30, 2016 and December 31, 2015, the Funds have measureduncertain tax liabilities and related interest and penalties withrespect to foreign capital gains taxes as nil. While this represents theManager’s best estimate, the estimated value could differ significantlyfrom the amount ultimately payable.

9. Client Brokerage CommissionsClient brokerage commissions are arrangements pursuant to whichproducts or services, other than the execution of portfolio securitiestransactions, are obtained by a portfolio adviser from or through abroker-dealer in exchange for directing client securities transactionsto the broker-dealer. The ascertainable client brokerage commissionspaid in connection with investment portfolio transactions for theperiods ended June 30, 2016 and 2015.

Fund 2016 2015

Scotia Private Canadian Growth Pool $ 1,343 $ 556Scotia Private Canadian Mid Cap Pool 6,285 2,741Scotia Private Canadian Small Cap Pool 32,138 27,858Scotia Private Emerging Markets Pool 29,995 30,999Scotia Private Global Equity Pool 5,979 15,910Scotia Private Global Real Estate Pool 228,381 189,993Scotia Private International Equity Pool – 3,895Scotia Private International Small to Mid Cap Value Pool 8,975 10,903Scotia Private Strategic Balanced Pool 790 63Scotia Private U.S. Mid Cap Growth Pool – 1,110Scotia Private U.S. Value Pool 6,248 43,019

10.Related Party TransactionsThe Manager is a wholly-owned subsidiary of The Bank of Nova Scotia(“Scotiabank”). Scotiabank also owns, directly or indirectly, 100% ofScotia Securities Inc., HollisWealth Advisory Services Inc. andTangerine Investment Funds Limited, each a mutual fund dealer, andScotia Capital Inc., (which includes HollisWealth, ScotiaMcLeod andScotia iTRADE), an investment dealer.

The Manager, on behalf of the Funds, may enter into transactions orarrangements with other members of Scotiabank or certain othercompanies that are related or connected to the Manager (each a“related party”). All transactions between the Funds and the relatedparties are in the normal course of business and are carried out atarm’s length terms.

(a) The Manager earns fees for acting as trustee and manager of theFunds, and Fixed Administration Fee in return for paying certainoperating expenses of the Funds as detailed in note 5 and note 6respectively. In addition, Scotiabank as the custodian of theFunds earns a fee for providing custody and related services. Themanagement fees, fixed administration fees, and custodian fees(for Funds that are not subject to Fixed Administration Fee) aredisclosed separately in the Statements of Comprehensive Incomeand Statements of Financial Position. The custodian fee chargedto Funds that are subject to Fixed Administration Fee is paid bythe Manager, in exchange for the Fixed Administration Feereceived from these Funds.

(b) Decision about the purchase and sale of the Funds’ portfoliosecurities are made by appointed Portfolio Managers of eachFund. Provided that the pricing, service and other terms arecomparable to those offered by other dealers, a portion of theportfolio transactions may be executed for the Funds, by arelated party to the Funds. In such cases, the related party willreceive commissions from the Fund. Brokerage fees paid torelated parties l for the periods ended June 30, 2016 and 2015are as follows:

Fund 2016 2015

Scotia Private Canadian Growth Pool $ 7,061 $ 4,132Scotia Private Canadian Mid Cap Pool 6,679 6,151Scotia Private Canadian Small Cap Pool 29,648 25,693Scotia Private Canadian Value Pool 22,919 2,473Scotia Private International Small to Mid Cap Value Pool 637 446Scotia Private Strategic Balanced Pool 2,457 –

(c) Certain registered dealers through which units of the Fund aredistributed are related parties to the Fund and the Manager. The

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Manager pays to these related parties a trailer commission out ofits management fees, representing distribution and servicingfees, based on the amount of assets held in the investors’accounts. These fees are paid on the basis and at the same ratesthat the Manager pays to non-affiliated dealers.

(d) The Manager received approval from the Independent ReviewCommittee to invest the Funds’ overnight cash with Scotiabankwith interest paid by Scotiabank to the Funds based onprevailing market rates. The interest earned by the Funds isdisclosed in “Interest for distribution purposes” in theStatements of Comprehensive Income.

(e) The Manager has received approval from the IndependentReview Committee for the Funds to purchase securities ofrelated party. Any related securities purchased by the Funds aredisclosed in the Schedule of Investment Portfolio for therespective Funds.

(f) Units held by the Manager in the Funds as at June 30, 2016 andDecember 31, 2015, were nil.

(g) All distributions received from related party funds are shown inthe respective items on the Statements of ComprehensiveIncome.

11.Securities LendingSome of the Funds may enter into securities lending transactionsunder a securities lending program with their custodian, The Bank ofNova Scotia. These transactions involve the temporary exchange ofsecurities for collateral with a commitment to return the samesecurities to the Fund on a future date. In accordance with securityregulations, the Funds receive minimum collateral of 102%. Collateralis received in the form of debt obligations of the Government ofCanada, a Canadian provincial government, the government of theUnited States of America, certain financial institutions or otherqualified securities, and is not included in the Schedule of InvestmentPortfolio. The Funds do not receive cash collateral from any securitieslending transactions. The aggregate market value of all securitiesloaned by a Fund cannot exceed 50% of the Net Assets of the Fund.The fair value of the securities lent and collateral held is determinedon a daily basis. The securities lending arrangement can beterminated by the borrower, the securities lending agent or the Fundat any time.

The income earned from these securities lending transactions isrecorded in the Statements of Comprehensive Income. The securitieslending agent earns 30% of the gross income generated through anysecurities lending transactions in the Funds.

The aggregate market value of the securities on loan and the collateral received by the Funds as at June 30, 2016 and December 31, 2015 are as follows:

As at June 30, 2016 For the period ended June 30, 2016

Trust Funds

Market value ofsecurities on loan

($)

Market value ofcollateral received

($)

Net amount receivedby the Fund

($)

Amount earned bylending agent

($)

Gross securities lendingrevenue earned

($)

Scotia Private American Core-Plus Bond Pool 78,545,944 82,049,545 42,125 18,054 60,179Scotia Private Canadian Growth Pool 9,487,861 9,881,929 9,658 4,141 13,799Scotia Private Canadian Mid Cap Pool 9,991,630 10,476,940 17,502 7,511 25,013Scotia Private Canadian Small Cap Pool 91,173,011 95,443,372 37,651 16,164 53,815Scotia Private Canadian Value Pool 10,096,639 10,544,131 34,404 14,749 49,153Scotia Private Emerging Markets Pool 11,273,126 11,709,290 16,001 6,859 22,860Scotia Private Global Equity Pool 3,544,547 3,702,199 10,244 4,392 14,636Scotia Private Global Real Estate Pool 3,492,073 3,620,176 717 307 1,024Scotia Private Income Pool 100,071,559 105,002,595 21,148 9,070 30,218Scotia Private International Equity Pool 26,074,843 27,029,700 114,169 48,929 163,098Scotia Private International Small to Mid Cap Value Pool 1,359,777 1,422,092 2,403 1,032 3,435Scotia Private Short Term Income Pool 99,475 104,845 15 7 22Scotia Private Strategic Balanced Pool 3,298,774 3,458,678 4,534 1,946 6,480Scotia Private U.S. Large Cap Growth Pool 4,455,805 4,631,801 5,215 2,236 7,451Scotia Private U.S. Mid Cap Growth Pool 1,115,949 1,165,661 3,390 1,453 4,843Scotia Private U.S. Mid Cap Value Pool 1,198,056 1,243,312 1,085 466 1,551Scotia Private U.S. Value Pool 62,164 64,670 10,470 4,488 14,958

As at December 31, 2015 For the period ended June 30, 2015

Trust Funds

Market value ofsecurities on loan

($)

Market value ofcollateral received

($)

Net amount receivedby the Fund

($)

Amount earned bylending agent

($)

Gross securities lendingrevenue earned

($)

Scotia Private American Core-Plus Bond Pool 4,950,864 5,266,048 34,302 14,704 49,006Scotia Private Canadian Growth Pool 5,399,025 5,754,532 23,856 10,229 34,085Scotia Private Canadian Mid Cap Pool 3,899,014 4,144,132 2,712 1,167 3,879Scotia Private Canadian Small Cap Pool 47,254,316 50,201,117 41,352 17,736 59,088Scotia Private Canadian Value Pool 11,635,640 12,356,465 3,294 1,415 4,709Scotia Private Emerging Markets Pool 3,946,502 4,157,372 26,438 11,332 37,770Scotia Private Global Equity Pool 9,498,285 10,110,256 41,578 17,819 59,397Scotia Private Global Real Estate Pool – – 1,672 717 2,389Scotia Private High Yield Income Pool – – 300 128 428Scotia Private Income Pool 77,070,182 81,037,314 8,433 3,617 12,050Scotia Private International Equity Pool 22,270,063 23,595,699 75,107 32,189 107,296Scotia Private International Small to Mid Cap Value Pool 1,360,241 1,442,953 1,001 429 1,430Scotia Private Short Term Income Pool – – 8 4 12Scotia Private Strategic Balanced Pool 8,221,754 8,666,909 3,103 1,332 4,435Scotia Private U.S. Large Cap Growth Pool 3,084,636 3,268,250 – – –Scotia Private U.S. Mid Cap Growth Pool 1,064,895 1,126,285 22,368 9,587 31,955Scotia Private U.S. Mid Cap Value Pool – – 100 42 142Scotia Private U.S. Value Pool 4,532,911 4,834,547 18,740 8,032 26,772

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ManagementResponsibilityforFinancialReporting

The accompanying financial statements of the Funds (as defined in Note 1) have beenprepared by 1832 Asset Management L.P. in its capacity as manager (the “Manager”) of theFunds and have been approved by the Board of Directors of 1832 Asset Management G.P.Inc., as general partner for and on behalf of 1832 Asset Management L.P., in its capacity astrustee (the “Trustee”) of the Funds. The Board of Directors of 1832 Asset ManagementG.P. Inc., as general partner for and on behalf of 1832 Asset management L.P is responsiblefor the information and representations contained in these financial statements and themanagement report of fund performance.

The Manager maintains appropriate processes to ensure that relevant and reliablefinancial information is produced. The financial statements have been prepared inaccordance with International Financial Reporting Standards (“IFRS”) and includecertain amounts that are based on estimates and judgments made by the Manager. Thesignificant accounting policies which the Manager believes are appropriate for the Fundsare described in Note 2 to the financial statements.

The Finance Committee of the Board of Directors of 1832 Asset Management G.P. Inc. isresponsible for reviewing the financial statements and the management report of fundperformance and recommending them to the Board of Directors of 1832 Asset ManagementG.P. Inc. for approval, in addition to meeting with management, internal auditors andexternal auditors to discuss internal controls over the financial reporting process, auditingmatters and financial reporting issues.

Jordy Chilcott

Co-President

1832 Asset Management L.P.

Abdurrehman Muhammadi

Chief Financial Officer

1832 Asset Management L.P.

August 18, 2016

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SM54D 9098E-1 (06/16)

For more information about Scotia Private Pools® and Pinnacle Portfolios:

visit:www.scotiabank.com/scotiaprivatepoolswww.scotiabank.com/pinnacleportfolios

call:1-800-268-9269 (English)1-800-387-5004 (French)

write:1832 Asset Management L.P.

1 Adelaide Street East 28th Floor

Toronto, OntarioM5C 2V9

® Registered trademark of The Bank of Nova Scotia, used under licence.

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