Co-operators Life Insurance Company Pooled Investment Funds

Transcription

1 Pooled Investment Funds Financial Statements (unaudited) June 30, 2014

2 Table of Contents Co-operators Balanced Fund 1 Co-operators Canadian Equity Fund 6 Co-operators Canadian Fixed Income Fund 9 Co-operators Canadian Resource Fund 13 Co-operators Money Market Fund 16 Co-operators U.S. Equity Fund 19 Co-operators Bissett Canadian Dividend Fund 22 Co-operators Ethical Balanced Fund 24 Co-operators Ethical Canadian Equity Fund 26 Co-operators Ethical International Equity Fund 28 Co-operators Ethical Select Balanced Portfolio 30 Co-operators Ethical Select Growth Portfolio 32 Co-operators Ethical Select Conservative Portfolio 34 Co-operators Ethical Select Income Portfolio 36 Co-operators Fidelity Canadian Bond Fund 38 Co-operators Fidelity Global Fund 40 Co-operators Fidelity True North Fund 42 Co-operators Mawer Balanced Fund 44 Co-operators Mawer Canadian Equity Fund 46 Co-operators Mawer International Equity Fund 48 Co-operators Aggressive Balanced Fund 50 Co-operators Conservative Balanced Fund 52 Co-operators Aggressive Portfolio 55 Co-operators Conservative Portfolio 58 Co-operators Moderate Portfolio 61 Co-operators Very Aggressive Portfolio 64 Co-operators Very Conservative Portfolio 67 Notes to the Financial Statements 71 BlackRock is a registered trademark of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. Used with permission. Fidelity Investments and True North are registered trademarks of FMR LLC. Franklin Bissett Investment Management is part of Franklin Templeton Investments Corp. Northwest Funds, NEI Investments and Ethical Funds are divisions of Northwest & Ethical Investments. Northwest Funds, NEI Investments and Ethical Funds are registered marks and trademarks are owned by Northwest & Ethical Investments L.P.

3 Co-operators Balanced Fund Fund managed by Addenda Capital Inc. Statement of Financial Position (in thousands of dollars except per unit amounts) Statement of Changes in Net Assets Attributable to Unitholders June 30 December 31 January For the periods ended June $ $ $ (in thousands of dollars) $ $ Assets Current Assets Cash and cash equivalents Net assets attributable to unitholders at beginning of year 106, ,388 Short-term notes 3,065 3,359 1,345 Receivables from investments sold unitholders 7,977 2,722 Investment income receivable Bonds and debentures 40,754 37,996 47,190 Transactions with unitholders Stocks 71,715 64,635 78,601 Unitholders' contributions 5,633 4, , , ,710 Unitholders' withdrawals (4,277) (37,168) Transfers (to) from other funds 471 (776) Liabilities Current Liabilities Net increase (decrease) from unitholders' transactions 1,827 (33,135) Payments for investments purchased Payables for management and audit fees (note 7) Net assets attributable to unitholders at end of period Statement of Cash Flows 115,973 96,975 Net assets attributable to unitholders 115, , ,388 For the periods ended June Net assets attributable to unitholders (in thousands of dollars) $ $ per unit Cash flows from operating activities Statement of Comprehensive Income unitholders 7,977 2,722 Adjustments for: For the periods ended June Unrealized gains (losses) (4,995) 1,904 (in thousands of dollars except per unit amounts) $ $ Current receivables (544) (677) Current liabilities Investment Income Purchases of investments (46,972) (86,286) Dividend income Proceeds from the sale of investments 42, ,288 Interest income for allocation purposes Net cash from operating activities (1,688) 33,285 Foreign exchange gain (loss) 56 (216) Other income 5 3 Cash flows from financing activities 1,541 1,405 Proceeds from the issuance of units 6,104 4,809 Amounts paid on redemption of units (4,277) (37,944) Expenses Net cash from financing activities 1,827 (33,135) Management fees (notes 7 and 9) Audit, legal and other fees (note 9) Net increase (decrease) in cash Transaction costs Cash at beginning of year , Cash at end of period Net investment income (loss) Dividends received, net of withholding taxes Interest received Gains (losses) on investments Realized gains (losses) 2,438 4,125 Unrealized gains (losses) 5,034 (1,822) 7,472 2,303 unitholders 7,977 2,722 unitholders per unit (note 13)

4 Co-operators Balanced Fund Schedule of Investment Portfolio As at June 30, 2014 Shares or Average Fair Shares or Average Fair Par Value Investment Cost ($) Value ($) Par Value Investment Cost ($) Value ($) CASH AND CASH EQUIVALENTS CORPORATE 19,641 CANADIAN DOLLAR 19,641 19,641 COMMUNICATION 1.42% 127,373 US DOLLARS 135, ,672 REGULAR BONDS 147, , ,313 90,000 BELL ALIANT,3.540%, ,000 92,746 70,000 BELL CANADA,3.250%, ,948 71,622 SHORT TERM NOTES 345,000 BELL CANADA,4.700%, , ,684 DISCOUNT NOTES 2.65% 480,000 ROGERS COMM INC,5.340%, , ,687 2,305,000 CANADA T BILLS T/B,DISC.%, ,296,203 2,296,203 75,000 ROGERS COMM INC,4.000%, ,780 76, ,000 CANADA T BILLS T/B,DISC.%, , ,884 70,000 ROGERS COMM INC,6.680%, ,928 87, ,000 3,065,087 3,065,087 20,000 SHAW COMMUNICATIONS,5.650%, ,252 22, ,000 SHAW COMMUNICATIONS,4.350%, , ,353 BONDS AND DEBENTURES 130,000 TELUS CORP,3.350%, , ,201 CANADA 125,000 TELUS CORP,5.150%, , ,018 FEDERAL GOVERNMENT 9.46% 1,515,000 1,557,709 1,645,217 REGULAR BONDS 475,000 CANADA GOVT,1.000%, , ,212 ENERGY 1.32% 200,000 CANADA GOVT,1.250%, , ,300 REGULAR BONDS 770,000 CANADA GOVT,4.250%, , , ,757 ALLIANCE PIPELINE,7.217%, , , ,000 CANADA GOVT,1.250%, , ,256 95,000 ALTAGAS LTD,3.570%, ,317 95, ,000 CANADA GOVT,3.750%, , , ,000 CAPITAL POWER LP,4.600%, , ,253 70,000 CANADA GOVT,3.500%, ,440 77,119 90,000 CU INC,4.722%, ,000 98, ,000 CANADA GOVT,2.750%, , ,702 75,000 ENBRIDGE INC,3.940%, ,000 78, ,000 CANADA GOVT,4.000%, , , ,000 ENBRIDGE INC,4.570%, , , ,000 CANADA HOUSING TRUST,2.750%, , ,169 90,000 ENBRIDGE PIPEL. INC.,8.200%, , ,904 1,000,000 CANADA HOUSING TRUST,1.850%, ,012,733 1,012,649 85,000 INTER PIPELINE LTD,3.448%, ,000 87,866 1,150,000 CANADA HOUSING TRUST,2.050%, ,173,173 1,170,354 85,000 INTER PIPELINE LTD,4.637%, ,000 86, ,000 CANADA HOUSING TRUST,1.700%, , , ,963 NORTH BATTLEFORD PWR,4.958%, , , ,000 CANADA HOUSING TRUST,2.350%, , , ,000 PEMBINA PIPELINE,4.810%, , ,399 1,225,000 CANADA HOUSING TRUST,3.350%, ,280,100 1,313,407 10,000 SUNCOR ENERGY INC,5.390%, ,972 11, ,000 CANADA HOUSING TRUST,3.800%, , ,776 1,392,721 1,429,999 1,529, ,000 CANADA HOUSING TRUST,2.400%, , , ,000 CANADA POST CORP,4.360%, , ,274 FINANCIAL PRODUCTS 5.86% 95,000 MUSKRAT FALLS,3.630%, , ,731 REGULAR BONDS 490,443 PEOPLES TR ,4.000%, , , ,000 AMERICAN EXPRESS CDA,2.310%, , , ,000 PSP CAPITAL INC,2.940%, , , ,000 BANK NOVA SCOTIA FF,2.898%, , , ,000 PSP CAPITAL INC,2.260%, , , ,000 BANK NOVA SCOTIA FF,3.036%, , , ,000 PSP CAPITAL INC,3.030%, , , ,000 BANK OF MONTREAL,3.400%, , ,889 10,425,443 10,796,609 10,953, ,000 BANK OF MONTREAL FF,3.979%, , , ,000 BANK OF MONTREAL FRN,1.641%, , ,931 PROVINCIAL AND GUARANTEED 11.49% 40,000 CAISSE CENTRALE DES,2.795%, ,000 40,836 REGULAR BONDS 150,000 CAP DESJ.INC FF,5.541%, , , , SCHOOL BOARD TR,5.900%, , ,174 40,000 CAP DESJARDINS,5.187%, ,000 45, ,000 BC PROV,8.000%, , ,389 70,000 CIBC CAP TRUST FF,10.250%, , , ,000 BC PROV,6.350%, , ,348 65,000 CIBC FF,3.150%, ,996 66, ,000 BC PROV,4.700%, , , ,000 DAIMLER CANADA FIN,2.280%, , , ,000 CADILLAC FAIRVIEW FT,3.640%, , , ,000 EMPIRE LIFE INS,2.870%, , , ,000 CADILLAC FAIRVIEW FT,4.310%, , ,314 85,000 FORD CREDIT CANADA,3.279%, ,000 84, ,000 CDP FINANCIAL FRN,1.717%, , ,761 90,000 GE CAP CAN FUNDING,2.420%, ,996 90, ,000 FINANCEMENT QUEBEC,1.538%, , ,184 95,000 GENWORTH MI CDA,5.680%, , , ,000 FINANCEMENT QUEBEC,2.450%, , ,795 55,000 GENWORTH MI CDA,4.242%, ,000 56, ,000 MANITOBA PROV,4.400%, , , ,000 HSBC BANK CANADA,2.572%, , , ,000 MANITOBA PROV,4.650%, , , ,000 IGM FINANCIAL,7.350%, , , ,000 NEW BRUNSWICK PROV,4.800%, , , ,000 INDUSTRIAL ALL. FF,2.800%, , , ,000 NEWFOUNDLAND PROV,4.500%, , , ,000 JOHN DEERE CANADA,2.650%, , , ,000 NOVA SCOTIA PROV,5.800%, , , ,000 MANUFACT LIFE INS FF,2.926%, , , ,000 ONT SCHL FIN,5.700%, , ,390 55,000 MANUFACT LIFE INS FF,2.811%, ,000 55, ,000 ONT STRAT INFRA FIN,4.600%, , , ,000 MANULIFE FIN CORP FF,7.405%, , , ,000 ONTARIO PROV,4.200%, , ,046 40,000 MANULIFE FINL CORP,5.161%, ,280 41, ,000 ONTARIO PROV,3.500%, , ,491 80,000 RBC CAPITAL TRUST FF,6.821%, ,000 93,433 1,420,000 ONTARIO PROV,4.650%, ,583,370 1,642, ,000 ROYAL BANK CDA,2.364%, , , ,373 ONTARIO SCH BRDS,5.800%, , , ,000 ROYAL BANK CDA,2.890%, , , ,000 OPB FINANCE TRUST,3.890%, , , ,000 ROYAL BANK CDA FF,3.180%, , ,411 1,350,000 QUEBEC PROV,3.000%, ,350,144 1,352, ,000 ROYAL BANK CDA FF,2.990%, , , ,000 QUEBEC PROV,8.500%, , , ,000 SUN LIFE CAP TRUST,5.863%, , , ,000 QUEBEC PROV,6.250%, , , ,000 SUN LIFE FIN INC FF,4.950%, , , ,000 QUEBEC PROV,5.000%, , , ,000 TD CAPITAL SECUR. FF,7.243%, , ,974 75,000 QUEBEC PROV,5.000%, ,445 90,401 70,000 TD CAPITAL TRUST FF,10.000%, , , ,000 QUEBEC PROV FRN,1.455%, , ,342 35,000 TMX GROUP,3.253%, ,000 36, ,000 QUEBEC PROV FRN,1.433%, , , ,000 TORONTO DOMINION BK,2.563%, , ,148 11,123,373 12,192,539 12,471, ,000 VW CREDIT CDA,2.450%, , , , WELLS FARGO FIN CDA,3.460%, , ,933 FOREIGN PAY 5,635, ,754,718 5,981, ,000 ONTARIO PROV US,0.950%, , ,758 MAPLES MUNICIPAL 1.63% 85,000 GOLDMAN SACHS GROUP,3.550%, ,906 86,423 REGULAR BONDS 305,000 GREAT WEST LIFECO FF,5.691%, , , ,000 BC MUNI FINANCE,4.150%, , , ,000 JPMORGAN CHASE & CO,2.920%, , , ,000 CITY OF TORONTO,3.900%, , , ,000 MET LIFE GLOB FUND,2.624%, , , ,000 MONTREAL PQ,5.000%, , ,104 75,000 MET LIFE GLOB FUND,3.027%, ,000 76, ,000 SOUTH COAST BC TRAN,4.450%, , , , , , ,000 TORONTO ON,4.500%, , , ,000 YORK ON,4.000%, , ,996 1,725,000 1,820,611 1,887,746 2

5 Co-operators Balanced Fund Schedule of Investment Portfolio As at June 30, 2014 Shares or Average Fair Shares or Average Fair Par Value Investment Cost ($) Value ($) Par Value Investment Cost ($) Value ($) INDUSTRIAL PRODUCTS 0.64% 7,150 KEYERA CORP,2.580%,COMMON 329, ,633 REGULAR BONDS 22,050 LEGACY OIL+GAS,0.000%,COMMON 251, ,711 55,000 ALIMENTATION COUCHE-,3.899%, ,247 55,525 16,700 NUVISTA ENERGY LTD,0.000%,COMMON 181, ,565 60,000 BMW CANADA INC,2.390%, ,997 60,746 20,700 PAINTED PONY PETRO,0.000%,COMMON 239, ,555 50,000 BRASCAN CORP,5.950%, ,040 54,281 21,300 PEMBINA PIPELINE,1.740%,COMMON 724, , ,000 BROOKFIELD ASSET MMT,5.040%, , ,033 16,900 PEYTO EXPLORATION,1.200%,COMMON 601, ,000 85,000 CAMECO CORP,4.190%, ,966 85,649 73,490 SUNCOR ENERGY INC,0.920%,COMMON 2,663,757 3,340, ,000 LEISUREWRLD SNR CARE,3.474%, , ,370 18,660 TOURMALINE OIL CORP,0.000%,COMMON 761,285 1,048, ,000 LOBLAW COS LTD,6.150%, , ,054 29,480 TRANSCANADA CORP,1.920%,COMMON 1,231,240 1,500, ,000 RELIANCE LP,4.574%, , , ,230 12,486,384 15,723, , , ,712 MATERIALS 6.77% INFRASTRUCTURE 1.47% 5,360 AGRIUM INC,3.000%,COMMON 516, ,779 REGULAR BONDS 16,680 CANFOR CORPORATION,0.000%,COMMON 332, ,476 65, EAST DEV GROUP,2.813%, ,000 66,035 8,220 CCL INDUSTRIES INC,1.000%,CLASS B NON VTG 599, , , INTERNATIONAL,3.350%, , ,294 37,800 FIRST QUANTUM MNRL,0.151%,COMMON 783, , , INTERNATIONAL,5.750%, , ,147 26,200 GOLDCORP INC,0.600%,COMMON 717, ,450 75, INTERNATIONAL,4.680%, ,987 82,322 60,210 INTERFOR CORPORATION,0.000%,COMMON 635, ,302 45,000 ALTALINK LP,4.922%, ,000 50,903 97,600 LUNDIN MINING CORP,0.000%,COMMON 532, ,960 85,000 HEALTH MTL COLL LP,6.721%, , ,520 74,500 PRIMERO MINING,0.000%,COMMON 544, ,230 60,000 HOSP. INF. PART(NOH),5.439%, ,999 69,259 29,300 SILVER WHEATON,0.280%,COMMON 727, , ,000 HYDRO ONE INC,4.590%, , ,569 10,790 STELLA JONES INC,0.280%,COMMON 260, ,823 90,000 HYDRO ONE INC,4.170%, ,908 90,850 15,340 WEST FRASER TIMBER,0.280%,COMMON 631, ,391 55,000 LOWER MATTAGAMI ENER,4.944%, ,000 62,061 16,900 WINPAK LTD,0.120%,COMMON 447, ,120 35,000 LOWER MATTAGAMI ENER,4.176%, ,000 34, ,900 6,728,094 7,834,437 75,000 PLENARY HEALT HUMBER,4.895%, ,000 80, ,000 SNC-LAVALIN MCGILL,6.632%, , ,684 INDUSTRIALS 3.31% 1,340,000 1,339,555 1,522,635 29,360 CDN NATL RAILWAY,1.000%,COMMON 1,091,462 2,036,116 3,653 CDN PACIFIC RAILWAY,1.400%,COMMON 289, ,833 MAPLES 5,060 SNC-LAVALIN GROUP,0.960%,COMMON 206, , ,000 HEATHROW FUNDING LTD,3.000%, , ,258 17,440 TOROMONT INDS LTD,0.600%,COMMON 345, ,184 75,000 NATL GRID ELECT TRAN,2.730%, ,000 76,492 9,600 WSP GLOBAL INC,1.500%,COMMON 326, , , , ,750 65,113 2,258,882 3,837,182 REAL ESTATE 1.05% CONSUMER DISCRETIONARY 2.33% REGULAR BONDS 2,330 CDN TIRE CORP,2.000%,CLASS A NON VTG 139, ,660 84,302 BANKERS HALL LP,4.377%, ,302 87,847 7,270 DOLLARAMA,0.640%,COMMON 225, , ,782 BROOKFIELD OFFICE PR,3.244%, , ,266 9,360 DOREL INDUSTRIES INC,1.200%,CLASS B SUB VTG 360, , ,000 CHOICE PRO REIT,3.600%, , ,132 14,160 GILDAN ACTIVEWEAR,0.432%,COMMON 579, , ,555 FIFTH AVENUE LP,4.710%, , ,087 14,760 THOMSON REUTERS CORP,1.320%,COMMON 542, , ,000 FIRST CAP REALTY,4.790%, , ,243 47,880 1,847,483 2,697,831 60,000 GRANITE REIT HLD LP,3.788%, ,000 60, ,722 SCOTIA PLAZA,3.210%, , ,503 CONSUMER STAPLES 0.32% 79,201 SEC LP AND ARCI LTD,5.188%, ,201 83,403 7,800 LOBLAW COS LTD,0.980%,COMMON 360, , ,000 WEM PROPERTY INC.,4.056%, , ,445 1,188,562 1,200,093 1,220,366 HEALTH CARE 1.20% 10,360 VALEANT PHARMACEUTIC,0.380%,COMMON 838,904 1,390,830 SECURITIZATION 0.86% REGULAR BONDS FINANCIALS 16.67% 375,000 CCIC 2006 WEM-A2,4.934%, , ,201 47,220 BANK OF NOVA SCOTIA,2.560%,COMMON 2,841,711 3,353, ,000 IMSCI A2,3.254%, , ,371 45,590 BROOKFIELD ASSET MGT,0.640%,CLASS A LTD VT 1,283,676 2,136, ,120 MLFA 2007-CAN23-A2,5.255%, , ,283 14,850 CDN IMP BANK COMMERC,4.000%,COMMON 1,091,473 1,440, ,000 SCHOONER TR B,5.198%, , ,206 8,790 CDN WESTERN BANK,0.800%,COMMON 242, , , , ,061 36,960 ELEMENT FINANCIAL,0.000%,COMMON 441, ,851 4,900 ELEMENT FINANCIAL,0.000%,SUBSCRIPT RECEIPT 62,475 65,660 37,698,218 TOTAL BONDS AND DEBENTURES 39,553,232 40,753, IND ALLNCE & FNCL,1.040%,COMMON 35,554 37,328 9,180 INTACT FINANCIAL,1.920%,COMMON 541, ,914 STOCKS 92,930 MANULIFE FINCL CORP,0.520%,COMMON 1,736,370 1,966,399 CANADIAN COMMON STOCKS 29,700 POWER FINANCIAL CORP,1.400%,COMMON 1,059, ,664 ENERGY 13.58% 31,190 ROYAL BANK CDA,2.840%,COMMON 1,551,664 2,375,119 12,200 ALTAGAS LTD,1.770%,COMMON 597, ,654 12,410 SUN LIFE FNCL INC,1.440%,COMMON 466, ,100 12,000 ARC RESOURCES,1.200%,COMMON 388, ,080 89,760 TORONTO DOMINION BK,1.880%,COMMON 2,640,460 4,930,517 52,800 BELLATRIX EXPLOR LTD,0.000%,COMMON 469, , ,280 13,994,395 19,298,001 12,830 CAMECO CORP,0.400%,COMMON 276, ,634 50,190 CDN NATURAL RES,0.900%,COMMON 1,697,319 2,460,816 INFORMATION TECHNOLOGY 2.05% 24,490 CRESCENT POINT ENRGY,2.760%,COMMON 893,075 1,155,683 20,480 CGI GROUP INC,0.000%,CLASS A SUB VTG 474, ,349 21,500 ENCANA CORPORATION,0.280%,COMMON 432, ,875 2,220 CONSTELLATION SFTWR,4.000%,COMMON 545, ,102 31,330 ENERFLEX LTD,0.300%,COMMON 372, ,119 48,420 DESCARTES SYSTEMS,0.000%,COMMON 442, ,889 5,480 OPEN TEXT CORP,0.690%,COMMON 239, ,042 STOCKS 76,600 1,701,853 2,378,382 CANADIAN COMMON STOCKS ENERGY 13.58% TELECOMMUNICATION SERVICES 1.30% 12,200 ALTAGAS LTD,1.770%,COMMON 597, ,654 16,040 ROGERS COMMUNICATION,1.830%,CLASS B NON V 474, ,437 12,000 ARC RESOURCES,1.200%,COMMON 388, ,080 20,680 TELUS CORP,1.520%,COMMON 572, ,444 52,800 BELLATRIX EXPLOR LTD,0.000%,COMMON 469, ,704 36,720 1,046,401 1,510,881 12,830 CAMECO CORP,0.400%,COMMON 276, ,634 50,190 CDN NATURAL RES,0.900%,COMMON 1,697,319 2,460,816 1,535,883 TOTAL CANADIAN COMMON STOCKS 41,263,057 55,041,565 24,490 CRESCENT POINT ENRGY,2.760%,COMMON 893,075 1,155,683 21,500 ENCANA CORPORATION,0.280%,COMMON 432, ,875 31,330 ENERFLEX LTD,0.300%,COMMON 372, ,119 24,460 ENSIGN ENERGY SERVCS,0.470%,COMMON 375, ,921 3

6 Co-operators Balanced Fund Schedule of Investment Portfolio As at June 30, 2014 Shares or Average Fair Shares or Average Fair Par Value Investment Cost ($) Value ($) Par Value Investment Cost ($) Value ($) FOREIGN STOCKS (INCLUDING U.S.) U.S. - FINANCIALS 2.28% U.S - ENERGY 0.88% 2,145 AFLAC INC,1.480%,COMMON 133, ,203 1,209 APACHE CORP,1.000%,COMMON 121, ,549 3,302 AMERICAN EXPRESS CO,1.040%,COMMON 153, ,599 1,742 CHEVRON CORP,4.280%,COMMON 177, ,142 2,347 BERKSHIRE HATHAWAY,0.000%,CLASS B 197, ,363 1,678 EXXON MOBIL CORP,2.760%,COMMON 135, ,840 2,777 FRANKLIN RES INC,0.480%,COMMON 98, ,116 1,007 NATIONAL OILWELL VAR,1.840%,COMMON 67,187 88, GOLDMAN SACHS GROUP,2.200%,COMMON 120, ,962 2,996 SCHLUMBERGER LTD,1.600%,COMMON 247, ,401 3,460 JPMORGAN CHASE & CO,1.600%,COMMON 166, ,206 8, ,108 1,016,250 3,516 PNC FINL SVCS GRP,1.920%,COMMON 269, ,461 2,059 PRICE T ROWE GRP,1.760%,COMMON 137, ,123 U.S - MATERIALS 0.34% 3,990 STATE STREET CORP,1.200%,COMMON 206, ,724 1,215 DU PONT E I DE NEMOU,1.800%,COMMON 58,545 84,664 1,707 WADDELL & REED FINL,1.360%,CLASS A 62, ,802 1,773 MONSANTO CO,1.720%,COMMON 144, ,516 7,276 WELLS FARGO & CO,1.400%,COMMON 264, , PRAXAIR INC,2.600%,COMMON 71,408 77,521 33,386 1,810,754 2,644,746 3, , ,701 U.S - INFORMATION TECHNOLOGY 3.29% U.S. - INDUSTRIALS 1.66% 2,367 ADOBE SYSTEMS INC,0.025%,COMMON 84, ,410 1,330 3M COMPANY,3.420%,COMMON 124, ,907 2,182 AKAMAI TECH INC,0.000%,COMMON 63, ,867 2,520 CSX CORP,0.640%,COMMON 49,328 82, ALLIANCE DATA SYSTEM,0.000%,COMMON 179, ,275 3,338 DANAHER CORP,0.400%,COMMON 163, ,816 2,019 AMPHENOL CORPORATION,0.800%,CLASS A 71, ,118 1,124 FEDEX CORP,0.800%,COMMON 92, ,201 7,623 APPLE INC,1.880%,COMMON 231, ,883 3,235 HONEYWELL INTL INC,1.800%,COMMON 147, , AUTOMATIC DATA PROC,1.920%,COMMON 41,602 80,476 4,325 SENSATA TECHNOLOGIES,0.000%,COMMON 183, ,505 3,040 AVAGO TECHNOLOGIES,1.160%,COMMON 160, ,334 1,879 TYCO INTL LTD,0.720%,COMMON 37,550 91,245 4,763 COGNIZANT TECH SOLNS,0.000%,CLASS A 126, ,085 2,522 UNION PAC CORP,2.945%,COMMON 148, ,959 6,496 EMC CORP MASS,0.460%,COMMON 128, ,183 2,253 UNITED TECHNOLOGIES,2.360%,COMMON 193, ,006 2,111 INTUIT,0.760%,COMMON 78, ,074 22,526 1,139,794 1,918,464 8,140 MICROSOFT CORP,1.120%,COMMON 276, ,552 6,828 ORACLE CORP,0.480%,COMMON 135, ,696 U.S. - CONSUMER DISCRETIONARY 1.99% 4,201 QUALCOMM INC,1.680%,COMMON 227, ,351 1,882 BED BATH & BEYOND,0.000%,COMMON 123, ,005 1,355 VISA INC,1.600%,CLASS A 127, ,084 6,356 CBS CORPORATION,0.480%,CLASS B 170, ,693 53,027 1,930,770 3,810,388 1,020 DISCOVERY COMMUNIC,0.000%,COMMON SERIES 81,510 80,702 4,878 NIKE INC,0.960%,CLASS B 130, ,831 U.S. - OTHER 0.29% 449 TARGET CORPORATION,2.080%,COMMON 24,485 27,705 1,605 SPDR S&P 500 ETF TR,3.579%,UNITS SER 1 S&P 278, , THE PRICELINE GRP,0.000%,COMMON 124, ,036 6,933 TJX COMPANIES INC,0.700%,COMMON 125, , ,971 TOTAL FOREIGN STOCKS (INCLUDING U.S) 9,248,532 16,672, TUPPERWARE BRANDS,2.720%,COMMON 63,001 81,922 4,514 WALT DISNEY CO,0.860%,COMMON 224, ,197 1,735,854 TOTAL STOCKS 50,511,589 71,714,542 27,239 1,066,818 2,302,587 40,356,087 TOTAL INVESTMENTS 93,285, ,688,864 U.S. - CONSUMER STAPLES 1.31% ACCRUED INCOME 354, ,155 3,309 CHURCH & DWIGHT INC,1.240%,COMMON 88, ,474 RECEIVABLES - INVESTMENTS SOLD 525, ,150 4,889 COCA-COLA CO,1.220%,COMMON 129, ,434 PAYABLES - INVESTMENTS PURCHASED (425,812) (425,812) 2,645 COLGATE PALMOLIVE CO,1.440%,COMMON 112, ,000 PAYABLES - MANAGEMENT AND AUDIT FEES (169,623) (169,623) 2,370 COSTCO WHSL CORP,1.420%,COMMON 160, ,711 NET ASSETS 93,569, ,972,734 2,201 CVS CAREMARK CORP,1.100%,COMMON 104, ,627 1,787 HORMEL FOODS CORP,0.800%,COMMON 53,721 93, US = CA 30 JUN 14 1,976 MONDELEZ INTL INC,0.560%,COMMON 77,899 79,159 1,925 PEPSICO INC,2.620%,COMMON 128, , THE HERSHEY COMPANY,1.940%,COMMON 41,842 36,815 21, ,901 1,519,259 U.S. - HEALTH CARE 2.36% 1,105 ALLERGAN INC,0.200%,COMMON 85, ,017 3,575 AMERISOURCE-BERGEN,0.940%,COMMON 106, ,645 6,057 EXPRESS SCRIPTS HLDG,0.000%,COMMON 184, ,226 8,504 GILEAD SCIENCES INC,0.000%,COMMON 184, ,001 3,052 JOHNSON & JOHNSON,2.800%,COMMON 215, ,973 2,031 STRYKER CORP,1.220%,COMMON 111, ,368 4,239 THERMO FISHER SCI,0.600%,COMMON 214, ,790 28,563 1,102,572 2,729,020 4

7 Co-operators Balanced Fund Financial Highlights (unaudited) For the periods ended June 30, 2014 and December 31 The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's performance for the past 5 years. The Fund's Net Asset Value per Unit Net Asset Value per Unit (note 8) Segment 1 Group Retirement Products Segment 3 Group Retirement - Investment Mgmt Only Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III Participants Segment 7 Versatile Asset IV Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 10 Co-operators Group Retirement Income Product Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets (note 5) Segment 1 Group Retirement Products 71,294,289 65,672,069 57,381,902 54,184,459 54,741,564 Segment 3 Group Retirement - Investment Mgmt Only ,515,159 27,263,648 24,924,830 Segment 4 Versatile Asset Participants 23,372,950 22,270,857 21,993,929 25,527,141 27,737,609 Segment 5 Versatile Asset II Participants 7,937,365 7,433,330 7,134,257 8,292,739 9,190,108 Segment 6 Versatile Asset III Participants 388, , , , ,228 Segment 7 Versatile Asset IV Participants 61,076 81,399 78,089 82,402 85,040 Segment 8 Versatile Portfolios Participants (Back-end Load) 8,816,600 7,484,432 6,676,780 5,018,356 3,881,712 Segment 9 Versatile Portfolios Participants (No-Load) 3,207,811 2,115,869 1,755,752 1,837,096 1,423,767 Segment 10 Co-operators Group Retirement Income Product 48,738 16,342 14, Segment 11 Versatile Portfolios TFSA 683, , , , ,560 Segment 12 Versatile Portfolios Education Savings Plan 363, , , ,187 75,789 Number of units outstanding Segment 1 Group Retirement Products 263, , , , ,910 Segment 3 Group Retirement - Investment Mgmt Only , , ,351 Segment 4 Versatile Asset Participants 54,190 55,415 60,628 73,938 77,841 Segment 5 Versatile Asset II Participants 40,133 40,279 42,706 52,013 55,690 Segment 6 Versatile Asset III Participants 2,139 2,205 2,806 3,067 3,142 Segment 7 Versatile Asset IV Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 51,012 46,364 45,602 35,842 26,731 Segment 9 Versatile Portfolios Participants (No-Load) 18,832 13,289 12,141 13,265 9,899 Segment 10 Co-operators Group Retirement Income Product Segment 11 Versatile Portfolios TFSA 4,612 3,462 2,664 2,298 1,235 Segment 12 Versatile Portfolios Education Savings Plan 2,591 2,606 2,104 1, Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.23% 2.24% 2.24% 2.25% 2.20% Segment 5 Versatile Asset II Participants 2.52% 2.52% 2.53% 2.54% 2.47% Segment 6 Versatile Asset III Participants 2.75% 2.76% 2.77% 2.77% 2.69% Segment 7 Versatile Asset IV Participants 2.22% 2.23% 2.23% 2.24% 2.19% Segment 8 Versatile Portfolios Participants (Back-end Load) 2.72% 2.73% 2.73% 2.74% 2.68% Segment 9 Versatile Portfolios Participants (No-Load) 2.87% 2.87% 2.88% 2.89% 2.84% Segment 11 Versatile Portfolios TFSA 2.86% 2.86% 2.87% 2.89% 2.84% Segment 12 Versatile Portfolios Education Savings Plan 2.34% 2.35% 2.36% 2.36% 2.30% Portfolio turnover rate (note 10) 68.40% 68.40% 80.00% 90.60% % 5

8 Co-operators Canadian Equity Fund Fund managed by Addenda Capital Inc. Statement of Financial Position (in thousands of dollars except per unit amounts) Statement of Changes in Net Assets Attributable to Unitholders June 30 December 31 January For the periods ended June $ $ $ (in thousands of dollars) $ $ Assets Current Assets Cash and cash equivalents Net assets attributable to unitholders at beginning of year 118, ,788 Short-term notes 289 2,231 2,256 Receivables from investments sold unitholders 12,695 (447) Investment income receivable Stocks 125, , ,462 Fund of funds rebalancing (note 2) (3,973) 1, , , ,010 Transactions with unitholders Liabilities Unitholders' contributions 9,111 7,262 Current Liabilities Unitholders' withdrawals (9,874) (5,954) Payments for investments purchased Transfers (to) from other funds (789) (2,577) Payables for management and audit fees (note 7) Net increase (decrease) from unitholders' transactions (1,552) (1,269) Net assets attributable to unitholders at end of period 125, ,478 Net assets attributable to unitholders 125, , ,788 Net assets attributable to unitholders per unit Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars) $ $ Cash flows from operating activities For the periods ended June (in thousands of dollars except per unit amounts) $ $ unitholders 12,695 (447) Adjustments for: Investment Income Unrealized gains (losses) (7,003) (1,084) Dividend income 1,519 1,502 Current receivables (436) (1,064) Interest income for allocation purposes 8 13 Current liabilities Other income 5 4 Purchases of investments (39,562) (52,334) 1,532 1,519 Proceeds from the sale of investments 39,377 54,487 Net cash from operating activities 5,466 (139) Expenses Management fees (notes 7 and 9) 1,493 1,308 Cash flows from financing activities Audit, legal and other fees (note 9) Proceeds from the issuance of units 9,111 8,668 Transaction costs Amounts paid on redemption of units (14,636) (8,531) 1,588 1,429 Net cash from financing activities (5,525) 137 Net investment income (loss) (56) 90 Net increase (decrease) in cash (59) (2) Cash at beginning of year Gains (losses) on investments Cash at end of period Realized gains (losses) 5,663 (1,731) Unrealized gains (losses) 7,088 1,194 Dividends received, net of withholding taxes 1,458 1,489 12,751 (537) Interest received 9 12 unitholders 12,695 (447) unitholders per unit (note 13) (0.79) 6