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

9 Co-operators Canadian Equity 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 CONSUMER DISCRETIONARY 4.89% 18,137 CANADIAN DOLLAR 18,137 18,137 5,200 CDN TIRE CORP 314, ,400 18,137 18,137 18,137 16,500 DOLLARAMA 533,815 1,447,050 21,600 DOREL INDUSTRIES INC 829, ,920 SHORT TERM NOTES 32,000 GILDAN ACTIVEWEAR 1,315,961 2,007,040 DISCOUNT NOTES 0.23% 33,600 THOMSON REUTERS CORP 1,236,428 1,302, ,000 CANADA T BILLS T/B 288, , ,900 4,230,628 6,123, , , ,814 CONSUMER STAPLES 0.68% STOCKS 17,800 LOBLAW COS LTD 823, ,390 CANADIAN COMMON STOCKS ENERGY 28.44% HEALTH CARE 2.52% 27,700 ALTAGAS LTD 1,357,137 1,359,239 23,500 VALEANT PHARMACEUTIC 1,920,276 3,154,875 27,300 ARC RESOURCES 882, , ,900 BELLATRIX EXPLOR LTD 1,066,603 1,100,682 FINANCIALS 35.00% 29,300 CAMECO CORP 632, , ,300 BANK OF NOVA SCOTIA 6,462,337 7,619, ,700 CDN NATURAL RES 3,784,506 5,574, ,900 BROOKFIELD ASSET MGT 2,973,096 4,869,793 55,300 CRESCENT POINT ENRGY 1,981,860 2,609,607 33,800 CDN IMP BANK COMMERC 2,510,357 3,278,600 48,708 ENCANA CORPORATION 1,011,109 1,229,877 20,000 CDN WESTERN BANK 551, ,600 71,100 ENERFLEX LTD 851,527 1,439,064 11,000 ELEMENT FINANCIAL 140, ,400 55,600 ENSIGN ENERGY SERVCS 861, ,060 83,900 ELEMENT FINANCIAL 1,003,399 1,130,133 16,100 KEYERA CORP 754,097 1,264,655 2,000 IND ALLNCE & FNCL 89,001 93,320 50,000 LEGACY OIL+GAS 553, ,000 20,800 INTACT FINANCIAL 1,230,466 1,529,216 37,800 NUVISTA ENERGY LTD 409, , ,200 MANULIFE FINCL CORP 4,251,026 4,468,992 47,000 PAINTED PONY PETRO 542, ,550 67,400 POWER FINANCIAL CORP 2,404,014 2,232,288 48,300 PEMBINA PIPELINE 1,644,905 2,208,276 70,900 ROYAL BANK CDA 3,520,845 5,399,035 38,300 PEYTO EXPLORATION 1,362,533 1,532,000 28,300 SUN LIFE FNCL INC 1,115,315 1,108, ,700 SUNCOR ENERGY INC 6,098,847 7,576, ,800 TORONTO DOMINION BK 5,927,710 11,194,734 42,500 TOURMALINE OIL CORP 1,739,979 2,388, ,300 32,179,702 43,867,995 66,700 TRANSCANADA CORP 2,802,023 3,395,030 1,062,008 28,337,941 35,645,556 INFORMATION TECHNOLOGY 4.29% 46,300 CGI GROUP INC 1,082,288 1,750,603 MATERIALS 14.22% 4,970 CONSTELLATION SFTWR 1,220,753 1,312,130 12,170 AGRIUM INC 1,174,003 1,189, ,400 DESCARTES SYSTEMS 1,021,039 1,684,704 38,100 CANFOR CORPORATION 759, ,063 12,440 OPEN TEXT CORP 543, ,445 18,800 CCL INDUSTRIES INC 1,376,676 1,925, ,110 3,867,117 5,380,882 86,000 FIRST QUANTUM MNRL 1,783,710 1,956,500 59,600 GOLDCORP INC 1,631,293 1,773,100 TELECOMMUNICATION SERVICES 2.75% 136,800 INTERFOR CORPORATION 1,447,942 2,020,536 36,700 ROGERS COMMUNICATION 1,102,980 1,575, ,700 LUNDIN MINING CORP 1,210,328 1,296,945 47,000 TELUS CORP 1,308,525 1,869, ,100 PRIMERO MINING 1,235,456 1,444,114 83,700 2,411,505 3,444,354 66,600 SILVER WHEATON 1,652,632 1,862,136 24,540 STELLA JONES INC 591, ,286 3,489,065 TOTAL CANADIAN COMMON STOCKS 94,300, ,023,346 34,800 WEST FRASER TIMBER 1,436,644 1,795,332 38,420 WINPAK LTD 1,016, ,816 3,797,202 TOTAL INVESTMENTS 94,607, ,330, ,630 15,316,819 17,819,200 ACCRUED INCOME 308, ,265 RECEIVABLES - INVESTMENTS SOLD 374, ,481 INDUSTRIALS 6.97% PAYABLES - INVESTMENTS PURCHASED (383,691) (383,691) 66,700 CDN NATL RAILWAY 2,504,817 4,625,645 PAYABLES - MANAGEMENT AND AUDIT FEES (265,714) (265,714) 8,417 CDN PACIFIC RAILWAY 714,013 1,626,333 NET ASSETS 94,641, ,363,638 11,500 SNC-LAVALIN GROUP 467, ,930 39,800 TOROMONT INDS LTD 790,712 1,038, US = CA 30 JUN 14 21,700 WSP GLOBAL INC 737, , ,117 5,213,641 8,741,013 7

10 Co-operators Canadian Equity 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 2 Seed Money 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 26,823,801 24,682,732 21,723,633 20,318,793 22,629,649 Segment 2 Seed Money ,198 Segment 3 Group Retirement - Investment Mgmt Only - 2,368,488 2,121,640 1,983,808 2,082,561 Segment 4 Versatile Asset Participants 22,409,654 21,102,051 21,630,264 25,219,912 30,654,809 Segment 5 Versatile Asset II Participants 15,647,348 15,376,576 14,833,230 16,312,141 19,557,474 Segment 6 Versatile Asset III Participants 913, , , ,510 1,054,908 Segment 7 Versatile Asset IV Participants 127, , , , ,636 Segment 8 Versatile Portfolios Participants (Back-end Load) 41,981,176 36,622,633 32,094,288 37,943,121 35,828,950 Segment 9 Versatile Portfolios Participants (No-Load) 11,074,815 9,860,204 8,997,665 11,785,289 11,910,150 Segment 10 Co-operators Group Retirement Income Product 2,462,893 3,904,155 3,132,433 2,793,481 2,140,249 Segment 11 Versatile Portfolios TFSA 3,033,203 2,417,312 1,789,101 1,835,001 1,200,449 Segment 12 Versatile Portfolios Education Savings Plan 1,225,415 1,038, , , ,459 Number of units outstanding Segment 1 Group Retirement Products 89,223 91,451 88,346 82,440 79,635 Segment 2 Seed Money ,613 Segment 3 Group Retirement - Investment Mgmt Only - 19,345 20,041 19,907 18,694 Segment 4 Versatile Asset Participants 49,764 51,787 58,905 75,842 79,355 Segment 5 Versatile Asset II Participants 59,058 64,555 70,543 82,170 86,495 Segment 6 Versatile Asset III Participants 4,419 4,384 5,103 5,726 5,919 Segment 7 Versatile Asset IV Participants ,052 Segment 8 Versatile Portfolios Participants (Back-end Load) 214, , , , ,257 Segment 9 Versatile Portfolios Participants (No-Load) 61,587 60,698 62,528 86,130 76,141 Segment 10 Co-operators Group Retirement Income Product 20,846 36,969 34,286 32,416 22,175 Segment 11 Versatile Portfolios TFSA 18,203 16,062 13,464 14,399 8,259 Segment 12 Versatile Portfolios Education Savings Plan 8,762 8,247 6,697 5,548 3,354 Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.23% 2.23% 2.24% 2.24% 2.18% Segment 5 Versatile Asset II Participants 2.52% 2.52% 2.52% 2.53% 2.46% Segment 6 Versatile Asset III Participants 2.75% 2.75% 2.76% 2.76% 2.67% Segment 7 Versatile Asset IV Participants 2.22% 2.22% 2.23% 2.23% 2.17% Segment 8 Versatile Portfolios Participants (Back-end Load) 2.71% 2.72% 2.73% 2.73% 2.66% Segment 9 Versatile Portfolios Participants (No-Load) 2.86% 2.87% 2.87% 2.88% 2.82% Segment 11 Versatile Portfolios TFSA 2.85% 2.85% 2.86% 2.87% 2.82% Segment 12 Versatile Portfolios Education Savings Plan 2.34% 2.34% 2.35% 2.35% 2.28% Portfolio turnover rate (note 10) 42.30% 42.30% 41.20% 28.60% 47.00% 8

11 Co-operators Canadian Fixed Income 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, ,571 Short-term notes 2,013 3,301 1,509 Receivables from investments sold unitholders 4,258 (3,461) Investment income receivable Bonds and debentures 120, , ,078 Fund of funds rebalancing (note 2) 1,342 2, , , ,603 Transactions with unitholders Liabilities Unitholders' contributions 13,120 13,346 Current Liabilities Unitholders' withdrawals (11,294) (7,784) Payments for investments purchased Transfers (to) from other funds (2,749) (5,689) Payables for management and audit fees (note 7) Net increase (decrease) from unitholders' transactions (923) (127) 1, ,032 Net assets attributable to unitholders at end of period 123, ,953 Net assets attributable to unitholders 123, , ,571 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 4,258 (3,461) Adjustments for: Investment Income Unrealized gains (losses) (3,419) 4,623 Interest income for allocation purposes 2,071 2,101 Current receivables (868) (343) Foreign exchange gain (loss) - 13 Current liabilities Other income 4 1 Purchases of investments (83,355) (118,072) 2,075 2,115 Proceeds from the sale of investments 82, ,159 Net cash from operating activities (469) (2,847) Expenses Management fees (notes 7 and 9) 1,570 1,482 Cash flows from financing activities Audit, legal and other fees (note 9) 8 11 Proceeds from the issuance of units 14,462 16,316 1,578 1,493 Amounts paid on redemption of units (14,043) (13,473) Net cash from financing activities 419 2,843 Net investment income (loss) Net increase (decrease) in cash (50) (4) Gains (losses) on investments Cash at beginning of year Realized gains (losses) Cash at end of period 30 8 Unrealized gains (losses) 3,419 (4,623) 3,761 (4,083) Interest received 2,117 1,917 unitholders 4,258 (3,461) unitholders per unit (note 13) 4.99 (4.25) 9

12 Co-operators Canadian Fixed Income 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 29,969 CANADIAN DOLLAR 29,969 29,969 COMMUNICATION 3.89% 29,969 29,969 29,969 REGULAR BONDS 390,000 BELL ALIANT,3.540%, , ,899 SHORT TERM NOTES 280,000 BELL CANADA,3.250%, , ,488 DISCOUNT NOTES 1.64% 1,220,000 BELL CANADA,4.700%, ,255,147 1,324,968 2,020,000 CANADA T BILLS T/B,DISC.%, ,013,070 2,013, ,000 ROGERS COMM INC,5.340%, , ,953 2,020,000 2,013,070 2,013, ,000 ROGERS COMM INC,4.000%, , , ,000 ROGERS COMM INC,6.680%, , ,936 BONDS AND DEBENTURES 70,000 SHAW COMMUNICATIONS,5.650%, ,881 79,570 CANADA 445,000 SHAW COMMUNICATIONS,4.350%, , ,609 FEDERAL GOVERNMENT 26.01% 170,000 TELUS CORP,3.600%, , ,314 REGULAR BONDS 405,000 TELUS CORP,3.350%, , ,280 1,100,000 CANADA GOVT,1.000%, ,097,283 1,098, ,000 TELUS CORP,5.150%, , , ,000 CANADA GOVT,1.500%, , ,911 4,460,000 4,521,893 4,771, ,000 CANADA GOVT,1.250%, , ,163 1,145,000 CANADA GOVT,4.250%, ,272,392 1,268,981 ENERGY 3.61% 3,500,000 CANADA GOVT,1.250%, ,425,985 3,470,495 REGULAR BONDS 1,000,000 CANADA GOVT,3.750%, ,113,064 1,103, ,000 ALLIANCE PIPELINE,4.928%, , , ,000 CANADA GOVT,3.500%, , , ,596 ALLIANCE PIPELINE,7.217%, , , ,000 CANADA GOVT,2.750%, , , ,000 ALTAGAS LTD,3.570%, , ,151 1,200,000 CANADA GOVT,4.000%, ,454,553 1,471, ,000 CAPITAL POWER LP,4.600%, , , ,000 CANADA HOUSING TRUST,2.750%, , , ,000 CU INC,4.722%, , ,619 2,325,000 CANADA HOUSING TRUST,1.850%, ,354,814 2,354, ,000 CU INC,3.857%, , ,787 3,625,000 CANADA HOUSING TRUST,2.050%, ,698,043 3,689, ,000 ENBRIDGE INC,3.940%, , ,024 1,625,000 CANADA HOUSING TRUST,1.700%, ,589,071 1,633, ,000 ENBRIDGE INC,4.570%, , ,652 2,000,000 CANADA HOUSING TRUST,2.350%, ,043,288 2,050, ,000 ENBRIDGE PIPEL. INC.,8.200%, , ,929 3,500,000 CANADA HOUSING TRUST,3.350%, ,669,750 3,752, ,000 INTER PIPELINE CORR.,5.033%, , ,922 1,365,000 CANADA HOUSING TRUST,3.800%, ,486,312 1,501, ,000 INTER PIPELINE LTD,3.448%, , ,273 2,525,000 CANADA HOUSING TRUST,2.400%, ,482,331 2,509, ,000 INTER PIPELINE LTD,4.637%, , ,006 1,055,000 CANADA POST CORP,4.360%, ,255,848 1,241, ,536 NORTH BATTLEFORD PWR,4.958%, , , ,000 MUSKRAT FALLS,3.630%, , , ,000 PEMBINA PIPELINE,4.810%, , , ,622 PEOPLES TR ,4.000%, , ,545 90,000 SUNCOR ENERGY INC,5.390%, , ,168 1,125,000 PSP CAPITAL INC,2.940%, ,144,867 1,150,324 4,176,132 4,250,504 4,432, ,000 PSP CAPITAL INC,2.260%, , , ,000 PSP CAPITAL INC,3.030%, , ,892 FINANCIAL PRODUCTS 18.12% 30,603,622 31,618,800 31,937,600 REGULAR BONDS 520,000 AMERICAN EXPRESS CDA,2.310%, , ,817 PROVINCIAL AND GUARANTEED 32.38% 680,000 BANK NOVA SCOTIA FF,2.898%, , ,619 REGULAR BONDS 730,000 BANK NOVA SCOTIA FF,3.036%, , ,279 1,350, SCHOOL BOARD TR,5.900%, ,612,719 1,669, ,000 BANK OF MONTREAL,3.400%, , , ,000 BC PROV,8.000%, ,178,077 1,131, ,000 BANK OF MONTREAL FF,3.979%, , , ,000 BC PROV,6.350%, ,134,793 1,101,616 1,175,000 BANK OF MONTREAL FRN,1.641%, ,178,042 1,177, ,000 BC PROV,4.700%, , , ,000 BANK OF NOVA SCOTIA,2.873%, , , ,000 CADILLAC FAIRVIEW FT,3.240%, , , ,000 CAISSE CENTRALE DES,2.795%, , , ,000 CADILLAC FAIRVIEW FT,3.640%, , , ,000 CAP DESJ.INC FF,5.541%, , , ,000 CADILLAC FAIRVIEW FT,4.310%, , , ,000 CAP DESJARDINS,5.187%, , ,862 1,550,000 CDP FINANCIAL FRN,1.717%, ,551,743 1,555, ,000 CIBC CAP TRUST FF,10.250%, , , ,000 FINANCEMENT QUEBEC,2.450%, , , ,000 CIBC FF,3.150%, , , ,000 MANITOBA PROV,4.400%, , , ,000 DAIMLER CANADA FIN,2.330%, , , ,000 MANITOBA PROV,4.650%, , , ,000 DAIMLER CANADA FIN,2.280%, , , ,000 NEW BRUNSWICK PROV,4.800%, , , ,000 EMPIRE LIFE INS,2.870%, , , ,000 NEWFOUNDLAND PROV,4.500%, , , ,000 FORD CREDIT CANADA,3.279%, , , ,000 NOVA SCOTIA PROV,5.800%, , , ,000 GE CAP CAN FUNDING,2.420%, , , ,000 ONT SCHL FIN,5.700%, , , ,000 GE CAP CAN FUNDING,5.680%, , , ,000 ONT STRAT INFRA FIN,4.600%, , , ,000 GENWORTH MI CDA,5.680%, , , ,000 ONTARIO PROV,4.200%, , , ,000 GENWORTH MI CDA,4.242%, , , ,000 ONTARIO PROV,3.500%, , , ,000 HSBC BANK CANADA,2.572%, , ,697 4,750,000 ONTARIO PROV,4.650%, ,331,079 5,494, ,000 IGM FINANCIAL,7.350%, , , ,347 ONTARIO SCH BRDS,5.800%, , , ,000 INDUSTRIAL ALL. FF,2.800%, , , ,000 OPB FINANCE TRUST,3.890%, , , ,000 JOHN DEERE CANADA,2.650%, , ,799 3,435,000 QUEBEC PROV,3.000%, ,429,187 3,442, ,000 MANUFACT LIFE INS FF,2.926%, , , ,000 QUEBEC PROV,8.500%, ,211,268 1,238, ,000 MANUFACT LIFE INS FF,2.811%, , ,766 1,830,000 QUEBEC PROV,6.250%, ,532,015 2,455, ,000 MANULIFE FIN CORP FF,7.405%, , ,757 1,145,000 QUEBEC PROV,5.000%, ,391,552 1,365, ,000 MANULIFE FINL CORP,5.161%, , , ,000 QUEBEC PROV,5.000%, , , ,000 RBC CAPITAL TRUST FF,6.821%, , ,384 2,650,000 QUEBEC PROV FRN,1.455%, ,650,164 2,659, ,000 ROYAL BANK CDA,2.364%, , ,024 4,950,000 QUEBEC PROV FRN,1.433%, ,950,000 4,950, ,000 ROYAL BANK CDA FF,3.180%, , ,494 33,217,347 36,877,078 37,220, ,000 ROYAL BANK CDA FF,2.990%, , , ,000 SUN LIFE CAP TRUST,5.863%, , ,692 FOREIGN PAY 210,000 SUN LIFE FIN INC FF,4.800%, , ,524 2,375,000 ONTARIO PROV US,0.950%, ,619,393 2,545, ,000 SUN LIFE FIN INC FF,4.950%, , , ,000 TD BANK FF,5.763%, , ,720 MUNICIPAL 4.01% 980,000 TD CAPITAL SECUR. FF,7.243%, ,909 1,172,059 REGULAR BONDS 115,000 TD CAPITAL TRUST FF,10.000%, , , ,000 BC MUNI FINANCE,4.150%, , , ,000 TMX GROUP,3.253%, , , ,000 CITY OF TORONTO,3.900%, , , ,000 TORONTO DOMINION BK,2.563%, , , ,000 MONTREAL PQ,5.000%, , , ,000 VW CREDIT CDA,2.450%, , , ,000 SOUTH COAST BC TRAN,4.450%, , , ,000 WELLS FARGO FIN CDA,3.460%, , , ,000 TORONTO ON,4.500%, ,925 1,103,903 18,570,000 19,022,901 19,663, ,000 YORK ON,4.000%, ,038,162 1,038, ,000 YORK ON,4.000%, , ,398 4,575,000 4,751,176 4,927,861 10

13 Co-operators Canadian Fixed Income 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 ($) Value ($) MAPLES MAPLES 265,000 GOLDMAN SACHS GROUP,3.550%, , , ,000 HEATHROW FUNDING LTD,3.000%, , , ,000 GREAT WEST LIFECO FF,5.691%, , , ,000 NATL GRID ELECT TRAN,2.730%, , , ,000 JPMORGAN CHASE & CO,2.920%, , , , , , ,000 MET LIFE GLOB FUND,2.624%, , , ,000 MET LIFE GLOB FUND,3.850%, , ,842 REAL ESTATE 2.78% 230,000 MET LIFE GLOB FUND,3.027%, , ,122 REGULAR BONDS 2,470,000 2,570,396 2,581, ,742 BANKERS HALL LP,4.377%, , , ,356 BROOKFIELD OFFICE PR,3.244%, , ,883 INDUSTRIAL PRODUCTS 1.77% 425,000 CHOICE PRO REIT,3.600%, , ,365 REGULAR BONDS 330,384 FIFTH AVENUE LP,4.710%, , , ,000 ALIMENTATION COUCHE-,3.899%, , , ,000 FIRST CAP REALTY,4.790%, , , ,000 BMW CANADA INC,2.390%, , , ,000 GRANITE REIT HLD LP,3.788%, , , ,000 BRASCAN CORP,5.950%, , , ,622 SCOTIA PLAZA,3.210%, , , ,000 BROOKFIELD ASSET MMT,5.040%, , , ,454 SEC LP AND ARCI LTD,5.188%, , , ,000 CAMECO CORP,4.190%, , , ,000 WEM PROPERTY INC.,4.056%, , , ,000 LEISUREWRLD SNR CARE,3.474%, , ,504 3,321,558 3,357,049 3,417, ,000 LOBLAW COS LTD,6.150%, , , ,000 RELIANCE LP,4.574%, , ,180 SECURITIZATION 1.73% 2,065,000 2,071,992 2,176,706 REGULAR BONDS 975,000 CCIC 2006 WEM-A2,4.934%, ,983 1,035,322 INFRASTRUCTURE 3.92% 350,000 IMSCI A2,3.254%, , ,131 REGULAR BONDS 283,272 MLFA 2007-CAN23-A2,5.255%, , , , EAST DEV GROUP,2.813%, , , ,000 SCHOONER TR B,4.800%, , , , INTERNATIONAL,3.350%, , , ,000 SCHOONER TR C,5.046%, , , , INTERNATIONAL,5.750%, , ,085 2,033,272 2,045,826 2,126, , INTERNATIONAL,4.680%, , , ,000 ALTALINK LP,4.922%, , , ,891,931 TOTAL BONDS AND DEBENTURES 118,133, ,611,126 95,000 GREATER TOR AIRPORT,5.260%, , , ,000 HEALTH MTL COLL LP,6.721%, , , ,941,900 TOTAL INVESTMENTS 120,176, ,654, ,000 HOSP. INF. PART(NOH),5.439%, , ,148 ACCRUED INCOME 615, , ,000 HYDRO ONE INC,4.590%, , ,704 RECEIVABLES - INVESTMENTS SOLD 991, , ,000 HYDRO ONE INC,4.170%, , ,549 PAYABLES - INVESTMENTS PURCHASED (851,260) (851,260) 185,000 LOWER MATTAGAMI ENER,4.944%, , ,750 PAYABLES - MANAGEMENT AND AUDIT FEES (273,807) (273,807) 80,000 LOWER MATTAGAMI ENER,4.176%, ,000 79,898 NET ASSETS 120,658, ,136, ,000 PLENARY HEALT HUMBER,4.895%, , , ,000 POWERSTREAM INC,3.958%, , , US = CA 30 JUN ,000 SNC-LAVALIN MCGILL,6.632%, , ,505 3,880,000 3,908,513 4,283,036 11

14 Co-operators Canadian Fixed Income 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 2 Seed Money 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 13,146,677 12,565,252 11,274,232 9,671,387 8,710,136 Segment 2 Seed Money ,766,301 Segment 3 Group Retirement - Investment Mgmt Only 2,160,964 4,473,360 4,059,870 2,949,945 2,736,215 Segment 4 Versatile Asset Participants 10,116,845 10,661,044 13,335,516 10,766,345 10,743,420 Segment 5 Versatile Asset II Participants 7,478,390 7,793,935 9,071,697 8,270,150 8,564,315 Segment 6 Versatile Asset III Participants 763, , , , ,869 Segment 7 Versatile Asset IV Participants 85,378 82,582 84, , ,870 Segment 8 Versatile Portfolios Participants (Back-end Load) 55,863,923 51,238,093 48,934,828 36,749,091 32,881,374 Segment 9 Versatile Portfolios Participants (No-Load) 19,233,012 18,111,463 18,845,970 12,346,518 11,763,408 Segment 10 Co-operators Group Retirement Income Product 7,605,842 7,165,570 5,759,815 4,604,537 3,355,599 Segment 11 Versatile Portfolios TFSA 5,221,619 4,339,501 3,459,933 1,711,667 1,046,479 Segment 12 Versatile Portfolios Education Savings Plan 1,610,095 1,421,264 1,081, , ,281 Number of units outstanding Segment 1 Group Retirement Products 73,252 72,914 58,052 49,063 47,879 Segment 2 Seed Money ,619 Segment 3 Group Retirement - Investment Mgmt Only 16,012 34,278 30,469 22,819 22,794 Segment 4 Versatile Asset Participants 47,949 49,726 55,006 48,763 53,214 Segment 5 Versatile Asset II Participants 47,461 50,786 55,865 52,262 57,799 Segment 6 Versatile Asset III Participants 5,431 5,571 5,666 5,988 6,003 Segment 7 Versatile Asset IV Participants ,036 Segment 8 Versatile Portfolios Participants (Back-end Load) 412, , , , ,959 Segment 9 Versatile Portfolios Participants (No-Load) 139, , ,226 89,975 90,354 Segment 10 Co-operators Group Retirement Income Product 56,503 55,468 43,401 35,801 28,052 Segment 11 Versatile Portfolios TFSA 44,611 38,277 29,202 14,693 9,485 Segment 12 Versatile Portfolios Education Savings Plan 13,684 12,498 9,152 5,029 3,285 Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.22% 2.23% 2.24% 2.24% 2.19% Segment 5 Versatile Asset II Participants 2.51% 2.52% 2.53% 2.53% 2.46% Segment 6 Versatile Asset III Participants 2.74% 2.75% 2.76% 2.76% 2.68% Segment 7 Versatile Asset IV Participants 1.66% 1.67% 1.68% 1.68% 1.64% Segment 8 Versatile Portfolios Participants (Back-end Load) 2.71% 2.72% 2.73% 2.74% 2.67% Segment 9 Versatile Portfolios Participants (No-Load) 2.86% 2.86% 2.88% 2.88% 2.83% Segment 11 Versatile Portfolios TFSA 2.85% 2.85% 2.86% 2.88% 2.83% Segment 12 Versatile Portfolios Education Savings Plan 2.34% 2.34% 2.35% 2.36% 2.29% Portfolio turnover rate (note 10) % % % % % 12

15 Co-operators Canadian Resource 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 28,823 32,390 Short-term notes Investment income receivable unitholders 4,908 (3,433) Stocks 32,373 28,133 31,802 32,501 28,886 32,458 Fund of funds rebalancing (note 2) (124) 181 Liabilities Transactions with unitholders Current Liabilities Unitholders' contributions 2,144 1,598 Payables for management and audit fees (note 7) Net assets attributable to unitholders Net assets attributable to unitholders per unit Unitholders' withdrawals (2,541) (1,728) Transfers (to) from other funds (778) (954) Net increase (decrease) from unitholders' transactions (1,175) (1,084) 32,432 28,823 32,390 Net assets attributable to unitholders at end of period 32,432 28, Statement of Cash Flows Statement of Comprehensive Income For the periods ended June (in thousands of dollars) $ $ For the periods ended June (in thousands of dollars except per unit amounts) $ $ Cash flows from operating activities Investment Income unitholders 4,908 (3,433) Dividend income Adjustments for: Interest income for allocation purposes 3 4 Unrealized gains (losses) (4,781) 268 Other income 3 2 Current receivables 23 (731) Current liabilities Purchases of investments (23,068) (29,169) Expenses Proceeds from the sale of investments 24,211 33,129 Management fees (notes 7 and 9) Net cash from operating activities 1, Audit, legal and other fees (note 9) 3 4 Transaction costs Cash flows from financing activities Proceeds from the issuance of units 2,144 1,779 Amounts paid on redemption of units (3,443) (2,682) Net investment income (loss) (127) (43) Net cash from financing activities (1,299) (903) Gains (losses) on investments Net increase (decrease) in cash - (32) Realized gains (losses) 175 (3,200) Cash at beginning of year Unrealized gains (losses) 4,860 (190) Cash at end of period ,035 (3,390) unitholders Dividends received, net of withholding taxes ,908 (3,433) Interest received 4 4 unitholders per unit (note 13) (25.62) 13

16 Co-operators Canadian Resource Fund Schedule of Investment Portfolio As at June 30, 2014 Shares or Average Fair Par Value Investment Cost ($) Value ($) CASH AND CASH EQUIVALENTS 15,860 CANADIAN DOLLAR 15,860 15,860 15,860 15,860 15,860 SHORT TERM NOTES DISCOUNT NOTES 0.18% 60,000 CANADA T BILLS T/B, ,796 59,796 60,000 59,796 59,796 STOCKS CANADIAN COMMON STOCKS ENERGY 63.19% 31,330 ADVANTAGE OIL & GAS 198, ,130 13,270 ALTAGAS LTD 649, ,159 18,910 ARC RESOURCES 594, ,549 2,660 BAYTEX ENERGY CORP 74, ,005 78,530 BELLATRIX EXPLOR LTD 710, ,905 1,660 BONTERRA ENERGY CORP 63, ,767 15,950 CALFRAC WELL SERVICE 312, ,430 17,920 CAMECO CORP 390, ,811 59,460 CDN NATURAL RES 2,061,546 2,915,323 14,260 CENOVUS ENERGY 447, ,970 31,361 CRESCENT POINT ENRGY 939,674 1,479,926 10,160 CREW ENERGY 127, ,166 3,010 ENBRIDGE INC 114, ,005 31,580 ENCANA CORPORATION 923, ,395 36,120 ENERFLEX LTD 504, ,069 10,450 INTER PIPELINE LTD 205, ,746 4,780 KEYERA CORP 241, ,469 22,400 LEGACY OIL+GAS 288, ,008 15,650 NUVISTA ENERGY LTD 167, ,018 6,710 PAINTED PONY PETRO 77,306 91,592 42,300 PEMBINA PIPELINE 1,360,043 1,933,956 23,850 PEYTO EXPLORATION 825, ,000 66,920 SUNCOR ENERGY INC 2,304,483 3,041,513 24,440 TOURMALINE OIL CORP 1,042,792 1,373,528 1,050 TRANSCANADA CORP 50,879 53,445 56,080 TRINIDAD DRILLING 685, , ,280 URANIUM PARTICIPATN 629, ,550 12,500 VERMILION ENERGY INC 532, , ,591 16,523,536 20,504,192 MATERIALS 36.58% 37,390 CANFOR CORPORATION 696, ,570 10,450 CCL INDUSTRIES INC 768,449 1,070,080 40,400 CONIFEX 363, ,524 49,690 FIRST QUANTUM MNRL 1,032,558 1,130,448 40,960 GOLDCORP INC 1,102,098 1,218,560 59,760 INTERFOR CORPORATION 681, , ,180 LUNDIN MINING CORP 728, , ,170 PRIMERO MINING 1,203,932 1,419,091 19,000 SHERRITT INTL CORP 84,550 81,890 62,450 SILVER WHEATON 1,599,079 1,746,102 22,100 STELLA JONES INC 537, ,867 13,210 WEST FRASER TIMBER 529, ,504 27,430 WINPAK LTD 606, ,264 39,000 YAMANA GOLD INC 364, , ,190 10,297,031 11,868,928 1,485,781 TOTAL CANADIAN COMMON STOCKS 26,820,567 32,373,120 1,561,641 TOTAL INVESTMENTS 26,896,223 32,448,776 ACCRUED INCOME 51,733 51,733 PAYABLES - MANAGEMENT AND AUDIT FEES (69,012) (69,012) NET ASSETS 26,878,944 32,431, US = CA 30 JUN 14 14

17 Co-operators Canadian Resource 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 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets (note 5) Segment 1 Group Retirement Products 4,523,611 4,272,891 4,675,991 4,677,072 5,367,796 Segment 3 Group Retirement - Investment Mgmt Only - 541, , , ,309 Segment 4 Versatile Asset Participants 2,719,785 2,334,800 3,025,065 3,665,493 4,407,400 Segment 5 Versatile Asset II Participants 2,082,633 1,993,945 2,626,050 3,264,994 3,460,657 Segment 6 Versatile Asset III Participants 110, , , , ,297 Segment 7 Versatile Asset IV Participants 1,379 1,276 1,161 1,107 1,317 Segment 8 Versatile Portfolios Participants (Back-end Load) 17,640,859 14,421,701 15,146,244 13,460,157 11,352,656 Segment 9 Versatile Portfolios Participants (No-Load) 3,602,807 3,578,526 4,740,480 5,289,942 4,484,144 Segment 11 Versatile Portfolios TFSA 1,593,416 1,391,776 1,366,013 1,226, ,669 Segment 12 Versatile Portfolios Education Savings Plan 278, , , ,054 86,103 Number of units outstanding Segment 1 Group Retirement Products 12,966 15,192 15,631 14,212 13,685 Segment 3 Group Retirement - Investment Mgmt Only - 4,517 3,883 3,392 3,178 Segment 4 Versatile Asset Participants 9,064 9,169 11,263 13,091 13,184 Segment 5 Versatile Asset II Participants 7,091 7,996 9,999 11,910 10,536 Segment 6 Versatile Asset III Participants Segment 7 Versatile Asset IV Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 66,380 63,846 62,987 53,380 37,544 Segment 9 Versatile Portfolios Participants (No-Load) 13,800 16,109 19,994 21,244 14,994 Segment 11 Versatile Portfolios TFSA 10,689 10,977 10,105 8,638 4,193 Segment 12 Versatile Portfolios Education Savings Plan 2,356 2,196 1,900 1, Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.23% 2.23% 2.24% 2.24% 2.19% Segment 5 Versatile Asset II Participants 2.52% 2.52% 2.53% 2.53% 2.47% Segment 6 Versatile Asset III Participants 2.75% 2.76% 2.76% 2.76% 2.68% Segment 8 Versatile Portfolios Participants (Back-end Load) 2.72% 2.73% 2.73% 2.74% 2.67% Segment 9 Versatile Portfolios Participants (No-Load) 2.87% 2.87% 2.88% 2.88% 2.83% Segment 11 Versatile Portfolios TFSA 2.86% 2.86% 2.86% 2.88% 2.83% Segment 12 Versatile Portfolios Education Savings Plan 2.35% 2.35% 2.35% 2.35% 2.29% Portfolio turnover rate (note 10) 69.60% 69.60% 56.90% 56.50% 80.00% 15

18 Co-operators Money Market 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 9,367 8,253 Short-term notes 6,228 4,775 4,918 Investment income receivable unitholders 1 (2) Bonds and debentures 2,262 4,558 3,307 Stocks Fund of funds rebalancing (note 2) ,531 9,378 8,262 Transactions with unitholders Liabilities Unitholders' contributions 1, Current Liabilities Unitholders' withdrawals (1,477) (615) Payables for management and audit Transfers (to) from other funds (538) 287 fees (note 7) Net increase (decrease) from unitholders' transactions (895) 637 Net assets attributable to unitholders 8,522 9,367 8,253 Net assets attributable to unitholders at end of period 8,522 8,897 Net assets attributable to unitholders per unit Statement of Cash Flows For the periods ended June Statement of Comprehensive Income (in thousands of dollars) $ $ For the periods ended June Cash flows from operating activities (in thousands of dollars except per unit amounts) $ $ unitholders 1 (2) Investment Income Adjustments for: Interest income for allocation purposes Unrealized gains (losses) (30) Current receivables (1) (6) Current liabilities (2) - Expenses Purchases of investments (10,999) (16,162) Management fees (notes 7 and 9) Proceeds from the sale of investments 11,872 15,518 Audit, legal and other fees (note 9) 1 1 Net cash from operating activities 841 (652) Cash flows from financing activities Net investment income (loss) Proceeds from the issuance of units 1,169 1,261 Amounts paid on redemption of units (2,015) (615) Gains (losses) on investments Net cash from financing activities (846) 646 Realized gains (losses) (39) (21) Unrealized gains (losses) 30 - Net increase (decrease) in cash (5) (6) unitholders unitholders per unit (note 13) (9) (21) Cash at beginning of year 11 7 Cash at end of period (2) Interest received (0.03) 16

19 Co-operators Money Market Fund Schedule of Investment Portfolio As at June 30, 2014 Shares or Average Fair Par Value Investment Cost ($) Value ($) CASH AND CASH EQUIVALENTS 5,824 CANADIAN DOLLAR 5,824 5,824 5,824 5,824 5,824 SHORT TERM NOTES DISCOUNT NOTES 73.31% 480,000 BAY ST.TRST ABCP D/N, , , ,000 CANADA T BILLS T/B, , , ,000 CANADA T BILLS T/B, , , ,000 CONCENTRA FIN CA D/N, , , ,000 DAIMLER D/N, , , ,000 KING ST.TR ABCP D/N, , , ,000 MANULIFE BK D/N, , , ,000 RIDGE TRST ABCP D/N, , , ,000 SAFE TRUST ABCP D/N, , , ,000 ZEUS TRUST ABCP D/N, , ,894 6,295,000 6,228,250 6,228,250 BONDS AND DEBENTURES CANADA CORPORATE FINANCIAL PRODUCTS 26.62% REGULAR BONDS 500,000 BANK NOVA SCOTIA FRN,1.380%, , , ,000 BANK OF MONTREAL FRN,1.351%, , , ,000 NATIONAL BK CANADA,4.030%, , , ,000 ROYAL BANK CDA FRN,1.370%, , ,241 2,250,000 2,262,740 2,261,916 2,250,000 TOTAL BONDS AND DEBENTURES 2,262,740 2,261,916 8,550,824 TOTAL INVESTMENTS 8,496,814 8,495,990 ACCRUED INCOME 34,800 34,800 PAYABLES - MANAGEMENT AND AUDIT FEES (9,243) (9,243) NET ASSETS 8,522,371 8,521, US = CA 30 JUN 14 17

20 Co-operators Money Market 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 2 Seed Money 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 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 5,004,639 5,274,348 4,610,172 4,321,120 3,942,374 Segment 2 Seed Money ,436 Segment 3 Group Retirement - Investment Mgmt Only 227, , , ,617 2,350,197 Segment 4 Versatile Asset Participants 236, , , , ,254 Segment 5 Versatile Asset II Participants 497, , , ,133 1,142,810 Segment 6 Versatile Asset III Participants 36,614 34,849 42,016 43, ,058 Segment 7 Versatile Asset IV Participants 194, , , , ,010 Segment 8 Versatile Portfolios Participants (Back-end Load) 1,605,826 1,911,663 1,395,873 1,104,948 1,013,044 Segment 9 Versatile Portfolios Participants (No-Load) 380, , , , ,013 Segment 10 Group Retirement Income Product 51, , Segment 11 Versatile Portfolios TFSA 57, ,688 50,907 44,642 87,787 Segment 12 Versatile Portfolios Education Savings Plan 229, , , ,757 42,437 Number of units outstanding Segment 1 Group Retirement Products 39,565 42,127 36,447 34,010 31,025 Segment 2 Seed Money Segment 3 Group Retirement - Investment Mgmt Only 2,222 3,471 3,772 6,097 23,275 Segment 4 Versatile Asset Participants 1,840 2,037 4,030 4,786 6,897 Segment 5 Versatile Asset II Participants 4,213 3,659 4,643 7,723 9,620 Segment 6 Versatile Asset III Participants Segment 7 Versatile Asset IV Participants 1,606 1,625 1,686 2,369 2,426 Segment 8 Versatile Portfolios Participants (Back-end Load) 15,306 18,175 13,288 10,476 9,515 Segment 9 Versatile Portfolios Participants (No-Load) 3,643 4,372 3,478 5,663 8,397 Segment 10 Group Retirement Income Product 524 1, Segment 11 Versatile Portfolios TFSA 594 1, Segment 12 Versatile Portfolios Education Savings Plan 2,310 1,690 1,379 1, Management expense ratio (note 9) Segment 4 Versatile Asset Participants 0.58% 0.58% 1.66% 1.76% 1.71% Segment 5 Versatile Asset II Participants 0.86% 0.86% 1.95% 2.05% 1.99% Segment 6 Versatile Asset III Participants 1.09% 1.09% 2.18% 2.28% 2.20% Segment 7 Versatile Asset IV Participants 0.85% 0.86% 0.87% 0.88% 0.85% Segment 8 Versatile Portfolios Participants (Back-end Load) 1.07% 1.08% 2.15% 2.26% 2.20% Segment 9 Versatile Portfolios Participants (No-Load) 1.23% 1.24% 2.30% 2.41% 2.35% Segment 11 Versatile Portfolios TFSA 1.23% 1.23% 2.29% 2.40% 2.36% Segment 12 Versatile Portfolios Education Savings Plan 0.64% 0.64% 1.72% 1.82% 1.76% Portfolio turnover rate (note 10)

21 Co-operators U.S. 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 20,379 11,313 Investment income receivable Stocks 22,421 20,306 10,862 unitholders 898 2,276 22,725 20,419 11,543 Fund of funds rebalancing (note 2) 65 (754) Liabilities Current Liabilities Transactions with unitholders Payments for investments purchased Unitholders' contributions 3,561 1,173 Payables for management and audit fees (note 7) Net assets attributable to unitholders Net assets attributable to unitholders per unit Unitholders' withdrawals (2,404) (394) Transfers (to) from other funds Net increase (decrease) from unitholders' transactions 1,338 1,419 22,680 20,379 11,313 Net assets attributable to unitholders at end of period 22,680 14, Statement of Cash Flows Statement of Comprehensive Income For the periods ended June 30 $ $ (in thousands of dollars) $ $ For the periods ended June (in thousands of dollars except per unit amounts) $ $ Cash flows from operating activities Investment Income unitholders 898 2,276 Dividend income Adjustments for: Foreign exchange gain (loss) 133 (2) Unrealized gains (losses) (107) (2,223) Current receivables 5 (6) Current liabilities 5 (206) Expenses Purchases of investments (5,787) (2,306) Management fees (notes 7 and 9) Proceeds from the sale of investments 3,779 1,192 Audit, legal and other fees (note 9) 4 4 Net cash from operating activities (1,207) (1,273) Transaction costs Cash flows from financing activities Proceeds from the issuance of units 3,807 1,813 Net investment income (loss) (2) (58) Amounts paid on redemption of units (2,404) (1,148) Net cash from financing activities 1, Gains (losses) on investments Realized gains (losses) Net increase (decrease) in cash 196 (608) Unrealized gains (losses) 118 2,227 Cash at beginning of year ,334 Cash at end of period unitholders 898 2,276 Dividends received, net of withholding taxes unitholders per unit (note 13)

22 Co-operators U.S. Equity 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 U.S. - HEALTH CARE 16.19% 41,778 CANADIAN DOLLAR 41,778 41,778 1,486 ALLERGAN INC 142, , ,201 US DOLLARS 246, ,264 4,974 AMERISOURCE-BERGEN 218, , , , ,042 8,125 EXPRESS SCRIPTS HLDG 370, ,919 11,393 GILEAD SCIENCES INC 482,194 1,006,133 STOCKS 4,067 JOHNSON & JOHNSON 321, ,037 FOREIGN STOCKS (INCLUDING U.S.) 2,797 STRYKER CORP 171, ,149 U.S - ENERGY 6.02% 5,684 THERMO FISHER SCI 415, ,409 1,618 APACHE CORP 146, ,375 38,526 2,121,612 3,677,189 2,373 CHEVRON CORP 267, ,852 2,254 EXXON MOBIL CORP 198, ,573 U.S. - FINANCIALS 15.80% 1,344 NATIONAL OILWELL VAR 90, ,875 2,913 AFLAC INC 185, ,117 4,022 SCHLUMBERGER LTD 348, ,302 4,523 AMERICAN EXPRESS CO 276, ,956 11,611 1,052,087 1,367,977 3,154 BERKSHIRE HATHAWAY 311, ,143 3,775 FRANKLIN RES INC 163, ,611 U.S - MATERIALS 2.40% 1,107 GOLDMAN SACHS GROUP 173, ,479 1,692 DU PONT E I DE NEMOU 88, ,902 4,744 JPMORGAN CHASE & CO 275, ,956 2,412 MONSANTO CO 227, ,398 4,792 PNC FINL SVCS GRP 381, , PRAXAIR INC 99, ,804 2,774 PRICE T ROWE GRP 204, ,408 4, , ,104 5,405 STATE STREET CORP 308, ,052 2,273 WADDELL & REED FINL 102, ,536 U.S. - INDUSTRIALS 11.34% 9,795 WELLS FARGO & CO 392, ,157 1,806 3M COMPANY 193, ,526 45,255 2,775,219 3,586,893 3,392 CSX CORP 76, ,244 4,548 DANAHER CORP 274, ,248 U.S - INFORMATION TECHNOLOGY 22.66% 1,545 FEDEX CORP 153, ,070 3,247 ADOBE SYSTEMS INC 138, ,226 4,099 HONEYWELL INTL INC 256, ,693 2,917 AKAMAI TECH INC 111, ,654 5,895 SENSATA TECHNOLOGIES 252, ,734 1,273 ALLIANCE DATA SYSTEM 268, ,330 2,506 TYCO INTL LTD 70, ,692 2,702 AMPHENOL CORPORATION 154, ,184 3,390 UNION PAC CORP 236, ,183 10,255 APPLE INC 578,821 1,015,521 3,070 UNITED TECHNOLOGIES 294, ,457 1,311 AUTOMATIC DATA PROC 74, ,708 30,251 1,807,250 2,575,847 4,102 AVAGO TECHNOLOGIES 224, ,848 6,348 COGNIZANT TECH SOLNS 222, ,641 U.S. - CONSUMER DISCRETIONARY 13.52% 9,048 EMC CORP MASS 208, ,755 2,529 BED BATH & BEYOND 173, ,541 2,821 INTUIT 153, ,976 8,469 CBS CORPORATION 340, ,550 11,182 MICROSOFT CORP 399, ,667 1,380 DISCOVERY COMMUNIC 110, ,185 9,306 ORACLE CORP 257, ,646 6,509 NIKE INC 302, ,520 5,658 QUALCOMM INC 356, , TARGET CORPORATION 36,734 37,393 1,802 VISA INC 267, , THE PRICELINE GRP 293, ,923 71,972 3,416,628 5,145,802 9,301 TJX COMPANIES INC 341, ,555 1,219 TUPPERWARE BRANDS 93, ,665 U.S. - OTHER 1.86% 6,013 WALT DISNEY CO 365, ,079 2,030 SPDR S&P 500 ETF TR 433, ,153 36,406 2,055,486 3,070, ,693 TOTAL FOREIGN STOCKS (INCLUDING U.S) 15,561,601 22,419,913 U.S. - CONSUMER STAPLES 8.93% 4,442 CHURCH & DWIGHT INC 201, , ,672 TOTAL INVESTMENTS 15,849,643 22,707,955 6,584 COCA-COLA CO 220, ,858 ACCRUED INCOME 16,384 16,384 3,544 COLGATE PALMOLIVE CO 183, ,259 PAYABLES - MANAGEMENT AND AUDIT FEES (44,509) (44,509) 2,965 COSTCO WHSL CORP 270, ,695 NET ASSETS 15,821,518 22,679,830 3,028 CVS CAREMARK CORP 166, ,992 2,429 HORMEL FOODS CORP 86, , US = CA 30 JUN 14 2,664 MONDELEZ INTL INC 105, ,721 2,658 PEPSICO INC 196, , THE HERSHEY COMPANY 54,524 48,637 28,783 1,484,316 2,027,537 20

23 Co-operators U.S. Equity 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 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 5,964,371 4,863,823 3,550,551 2,491,009 2,454,136 Segment 3 Group Retirement - Investment Mgmt Only - 1,280,843 1,154, , ,313 Segment 4 Versatile Asset Participants 2,637,513 2,457,877 1,634,436 1,277,401 1,382,469 Segment 5 Versatile Asset II Participants 2,552,962 2,303,642 1,687, , ,795 Segment 6 Versatile Asset III Participants 134, , ,613 62,344 67,580 Segment 7 Versatile Asset IV Participants 18,383 17,546 13,057 6,083 10,377 Segment 8 Versatile Portfolios Participants (Back-end Load) 8,348,292 6,760,936 2,365, , ,995 Segment 9 Versatile Portfolios Participants (No-Load) 2,051,217 1,900, , , ,036 Segment 10 Group Retirement Income Product 7,015 6, Segment 11 Versatile Portfolios TFSA 850, , ,561 34,920 11,612 Segment 12 Versatile Portfolios Education Savings Plan 117, ,160 55,244 11,158 3,696 Number of units outstanding Segment 1 Group Retirement Products 30,078 25,731 27,119 20,376 20,167 Segment 3 Group Retirement - Investment Mgmt Only - 8,721 11,315 5,702 5,866 Segment 4 Versatile Asset Participants 12,253 11,917 11,282 9,835 10,699 Segment 5 Versatile Asset II Participants 32,851 30,889 32,112 19,957 19,739 Segment 6 Versatile Asset III Participants , Segment 7 Versatile Asset IV Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 59,124 49,854 24,779 7,932 5,469 Segment 9 Versatile Portfolios Participants (No-Load) 14,536 14,025 5,116 1,658 1,568 Segment 10 Group Retirement Income Product Segment 11 Versatile Portfolios TFSA 4,706 3,299 1, Segment 12 Versatile Portfolios Education Savings Plan Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.25% 2.26% 2.27% 2.25% 2.20% Segment 5 Versatile Asset II Participants 2.54% 2.55% 2.56% 2.54% 2.48% Segment 6 Versatile Asset III Participants 2.77% 2.79% 2.79% 2.77% 2.70% Segment 7 Versatile Asset IV Participants 2.51% 2.53% 2.54% 2.52% 2.46% Segment 8 Versatile Portfolios Participants (Back-end Load) 2.74% 2.75% 2.76% 2.75% 2.69% Segment 9 Versatile Portfolios Participants (No-Load) 2.89% 2.90% 2.91% 2.89% 2.84% Segment 11 Versatile Portfolios TFSA 2.87% 2.88% 2.89% 2.89% 2.85% Segment 12 Versatile Portfolios Education Savings Plan 2.36% 2.37% 2.38% 2.37% 2.30% Portfolio turnover rate (note 10) 42.20% 42.20% 36.30% 19.30% 15.00% 21

24 Co-operators Bissett Canadian Dividend Fund Underlying fund managed by Franklin Templeton Investments 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 Investment in investment fund units 17,551 10, Net assets attributable to unitholders at beginning of year 10, Liabilities unitholders 1,060 (109) Current Liabilities Payables Fund of funds rebalancing (note 2) 2,136 - Net assets attributable to unitholders Net assets attributable to unitholders per unit 17,510 10, Transactions with unitholders Unitholders' contributions 3,876 2,538 Unitholders' withdrawals (1,243) (114) Transfers (to) from other funds 1,040 3,435 Net increase (decrease) from unitholders' transactions 3,673 5,859 Statement of Comprehensive Income Net assets attributable to unitholders at end of period 17,510 6,268 For the periods ended June (in thousands of dollars except per unit amounts) $ $ Statement of Cash Flows Investment Income For the periods ended June Distribution from underlying fund (in thousands of dollars) $ $ Expenses Management fees (note 9) Cash flows from operating activities unitholders 1,060 (109) Net investment income (loss) (7) (6) Adjustments for: Realized and unrealized gains (losses) (1,067) 103 Gains (losses) on investments Current liabilities Realized and unrealized gains (losses) 1,067 (103) Purchases (sales) of investments (5,642) (5,813) Net cash from operating activities (5,608) (5,805) unitholders 1,060 (109) Cash flows from financing activities unitholders per unit (note 13) Distributions (201) (54) Proceeds from the issuance of units 7,052 5, (2.27) Amounts paid on redemption of units (1,243) (114) Net cash from financing activities 5,608 5,805 Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 Franklin Bissett Canadian Dividend Fund Canadian Imperial Bank of Commerce 5.47% North West Co. Inc. 2.98% The Toronto-Dominion Bank 5.40% Russel Metals Inc. 2.90% Power Financial Corp. 4.88% Baytex Energy Corp. 2.87% Bank of Nova Scotia 4.82% Canexus Corp. 2.38% Royal Bank of Canada 4.59% Keyera Corp. 2.29% Thomson Reuters Corp. 4.31% Fortis Inc. 2.20% Bank of Montreal 4.16% Mullen Group Ltd. 2.14% IGM Financial Inc. 4.05% BCE Inc. 2.13% Crescent Point Energy Corp. 3.74% Bonavista Energy Corp. 2.11% TransCanada Corp. 3.70% Bird Construction Inc. 1.99% Enbridge Inc. 3.70% Bell Aliant Inc. 1.80% National Bank of Canada 3.63% Bonterra Energy Corp. 1.62% ARC Resources Ltd. 3.23% 22

25 Co-operators Bissett Canadian Dividend 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 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 10 Group Retirement Income Product Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 1 Group Retirement Products 89, Segment 2 Seed Money 66,691 62,047 51, Segment 4 Versatile Asset Participants 1,114,965 1,102, , Segment 5 Versatile Asset II Participants 939, ,953 10, Segment 6 Versatile Asset III Participants 140, , Segment 8 Versatile Portfolios Participants (Back-end Load) 8,684,897 5,467, , Segment 9 Versatile Portfolios Participants (No-Load) 3,028,536 2,584,033 12, Segment 10 Group Retirement Income Product 2,389, Segment 11 Versatile Portfolios TFSA 902, ,726 29, Segment 12 Versatile Portfolios Education Savings Plan 152,656 69,169 5, Number of units outstanding Segment 1 Group Retirement Products Segment 2 Seed Money Segment 4 Versatile Asset Participants 8,945 9,400 2, Segment 5 Versatile Asset II Participants 7,545 6, Segment 6 Versatile Asset III Participants 1,131 1, Segment 8 Versatile Portfolios Participants (Back-end Load) 69,979 46,745 1, Segment 9 Versatile Portfolios Participants (No-Load) 24,438 22, Segment 10 Group Retirement Income Product 221, Segment 11 Versatile Portfolios TFSA 7,283 3, Segment 12 Versatile Portfolios Education Savings Plan 1, Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.82% 2.82% 2.82% - - Segment 5 Versatile Asset II Participants 2.89% 2.89% 2.89% - - Segment 6 Versatile Asset III Participants 3.07% 3.08% Segment 8 Versatile Portfolios Participants (Back-end Load) 3.09% 3.09% 3.09% - - Segment 9 Versatile Portfolios Participants (No-Load) 3.18% 3.18% 3.18% - - Segment 11 Versatile Portfolios TFSA 3.17% 3.17% 3.16% - - Segment 12 Versatile Portfolios Education Savings Plan 2.66% 2.66% 2.65% - - Portfolio turnover rate (note 10) 25.63% 25.63% 33.20% - - The Co-operators Bissett Canadian Dividend Fund only came into existence in 2012 and therefore comparative information for prior years is unavailable. 23

26 Co-operators Ethical Balanced Fund Underlying fund managed by NEI Investments 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 Investment in investment fund units Net assets attributable to unitholders at beginning of year Liabilities unitholders 40 (19) Current Liabilities Payables Transactions with unitholders Unitholders' contributions Net assets attributable to unitholders Unitholders' withdrawals (88) (38) Transfers (to) from other funds (155) (164) Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions (194) 94 Net assets attributable to unitholders at end of period Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund - - Cash flows from operating activities Expenses unitholders 40 (19) Management fees (note 9) 11 8 Adjustments for: Realized and unrealized gains (losses) (51) 11 Net investment income (loss) (11) (8) Current liabilities 2 1 Purchases (sales) of investments 203 (87) Gains (losses) on investments Net cash from operating activities 194 (94) Realized and unrealized gains (losses) 51 (11) Cash flows from financing activities unitholders unitholders per unit (note 13) Proceeds from the issuance of units (19) Amounts paid on redemption of units (243) (202) Net cash from financing activities (194) (2.38) Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 NEI Ethical Balanced Fund Government of Canada, 1.500%, % United Mexican States, %, % Government of Canada, Series A875, 1.250%, % Suncor Energy 1.90% U.S. Treasury Bonds, 2.750%, % Air Canada, Class B 1.80% Government of Canada, 4.000%, % Crescent Point Energy 1.80% Royal Bank of Canada, 2.980%, % Chemtrade Logistics Income Fund 1.80% CVS Caremark Corporation 2.50% Sun Life Financial 1.80% Canadian Natural Resources 2.40% Boyd Group Income Fund 1.80% Canadian Imperial Bank of Commerce, 2.350%, % Canadian Natural Resources, 2.890%, % Bank of Montreal, 2.240%, % Scotiabank, 2.370%, % Toronto-Dominion Bank 2.10% Scotiabank, 2.242%, % Royal Bank of Canada 2.10% Scotiabank 1.40% Toronto-Dominion Bank, 2.171%, % Canadian National Railway Company 1.30% Mex Bonos Desarr Fix RT, Series M, 4.750%, % 24

27 Co-operators Ethical 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 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 1 Group Retirement Products Segment 2 Seed Money 27,878 26,039 24, Segment 4 Versatile Asset Participants 17,873 16,882 30, Segment 5 Versatile Asset II Participants 53,989 51,831 7, Segment 8 Versatile Portfolios Participants (Back-end Load) 484, , , Segment 9 Versatile Portfolios Participants (No-Load) 60, , , Segment 11 Versatile Portfolios TFSA 35,145 27,897 58, Segment 12 Versatile Portfolios Education Savings Plan 3,679 2,684 2, Number of units outstanding Segment 1 Group Retirement Products Segment 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 4,507 5,917 4, Segment 9 Versatile Portfolios Participants (No-Load) 561 1,093 1, Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.93% 2.93% 2.93% - - Segment 5 Versatile Asset II Participants 3.00% 3.00% 3.00% - - Segment 8 Versatile Portfolios Participants (Back-end Load) 3.20% 3.20% 3.20% - - Segment 9 Versatile Portfolios Participants (No-Load) 3.29% 3.29% 3.29% - - Segment 11 Versatile Portfolios TFSA 3.28% 3.28% 3.27% - - Segment 12 Versatile Portfolios Education Savings Plan 2.77% 2.77% 2.76% - - Portfolio turnover rate (note 10) % % % - - The Co-operators Ethical Balanced Fund only came into existence in 2012 and therefore comparative information for prior years is unavailable. 25

28 Co-operators Ethical Canadian Equity Fund (note 11) Formerly Co-operators Ethical Canadian Dividend Fund Underlying fund managed by NEI Investments 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 Investment in investment fund units 1,382 1, Net assets attributable to unitholders at beginning of year 1, Liabilities unitholders Current Liabilities Payables Transactions with unitholders Unitholders' contributions Net assets attributable to unitholders 1,378 1, Unitholders' withdrawals (60) (7) Transfers (to) from other funds (84) 429 Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions Net assets attributable to unitholders at end of period 1, Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund - - Cash flows from operating activities Expenses unitholders Management fees (note 9) 19 8 Adjustments for: Realized and unrealized gains (losses) (100) (33) Net investment income (loss) (19) (8) Current liabilities 4 2 Purchases (sales) of investments (105) (623) Gains (losses) on investments Net cash from operating activities (120) (629) Realized and unrealized gains (losses) Cash flows from financing activities unitholders unitholders per unit (note 13) Proceeds from the issuance of units Amounts paid on redemption of units (144) (7) Net cash from financing activities Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 NEI Ethical Canadian Equity Fund (formerly NEI Ethical Canadian Dividend Fund) Cash & Short Term Notes 9.10% Ensign Resource Service Group 3.30% Canadian Natural Resources 5.90% Rogers Communications, Class B 3.20% Suncor Energy 5.90% Open Text Corporation 3.20% Toronto-Dominion Bank 5.40% Domtar Corporation 3.10% Scotiabank 4.60% Empire Company, Class A 2.90% National Bank of Canada 4.40% Industrial Alliance Insurance and Financial Services 2.80% ATCO, Class I 4.10% Home Capital Group 2.80% CGI Group, Class A 3.90% TELUS Corporation 2.70% Canadian Tire Corporation, Class A 3.90% Power Financial Corporation 2.60% Canadian National Railway Company 3.60% Toromont Industries 1.80% Gibson Energy 3.60% Cineplex 1.70% Canadian Utilities, Class A 3.40% Transcontinental, Class A 1.50% Metro 3.30% 26

29 Co-operators Ethical Canadian Equity 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 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 2 Seed Money 71,453 66,179 52, Segment 4 Versatile Asset Participants 63,900 49,941 21, Segment 5 Versatile Asset II Participants 89,886 82,382 4, Segment 8 Versatile Portfolios Participants (Back-end Load) 817, ,447 58, Segment 9 Versatile Portfolios Participants (No-Load) 257, ,629 24, Segment 11 Versatile Portfolios TFSA 63,521 60,616 6, Segment 12 Versatile Portfolios Education Savings Plan 14,108 12,303 2, Number of units outstanding Segment 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 5,972 5, Segment 9 Versatile Portfolios Participants (No-Load) 1,883 1, Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Management expense ratio (note 9) Segment 4 Versatile Asset Participants 3.04% 3.04% 3.04% - - Segment 5 Versatile Asset II Participants 3.11% 3.12% 3.11% - - Segment 8 Versatile Portfolios Participants (Back-end Load) 3.31% 3.31% 3.31% - - Segment 9 Versatile Portfolios Participants (No-Load) 3.40% 3.40% 3.39% - - Segment 11 Versatile Portfolios TFSA 3.39% 3.38% 3.38% - - Segment 12 Versatile Portfolios Education Savings Plan 2.88% 2.88% 2.88% - - Portfolio turnover rate (note 10) 19.22% 19.22% 36.89% - - The Co-operators Ethical Canadian Equity Fund only came into existence in 2012 and therefore comparative information for prior years is unavailable. 27

30 Co-operators Ethical International Equity Fund Underlying fund managed by NEI Investments 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 Investment in investment fund units Net assets attributable to unitholders at beginning of year Liabilities unitholders 7 10 Current Liabilities Payables Transactions with unitholders Unitholders' contributions Net assets attributable to unitholders Unitholders' withdrawals (77) (1) Transfers (to) from other funds 6 45 Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions Net assets attributable to unitholders at end of period Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund - - Cash flows from operating activities Expenses unitholders 7 10 Management fees (note 9) 4 2 Adjustments for: Realized and unrealized gains (losses) (11) (12) Net investment income (loss) (4) (2) Current liabilities 1 - Purchases (sales) of investments (24) (72) Gains (losses) on investments Net cash from operating activities (27) (74) Realized and unrealized gains (losses) Cash flows from financing activities unitholders unitholders per unit (note 13) Proceeds from the issuance of units Amounts paid on redemption of units (77) (1) Net cash from financing activities Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 NEI Ethical International Equity Fund Compass Group 2.80% Sampo, Series A 1.80% Roche Holding 2.50% Geberit 1.80% Vinci 2.40% Capita 1.80% Shire 2.10% Bayerische Motoren Werke (BMW) 1.80% Intesa Sanpaolo 2.10% Coloplast, Class B 1.80% Cheung Kong (Holdings) 2.10% Astellas Pharma 1.70% Capgemini 2.00% MediaTek 1.70% Total, Series B 2.00% PT Bank Rakyat Indonesia 1.70% Sumitomo Mitsui Financial Group 2.00% SECOM Co. 1.60% ORIX Corporation 2.00% Partners Group Holding 1.60% Tencent Holdings 1.90% Daikin Industries 1.50% Tata Motors 1.80% Johnson Matthey 1.50% CSL 1.80% 28

31 Co-operators Ethical International Equity 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 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 2 Seed Money 67,694 65,691 51, Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants 24,510 51,494 4, Segment 8 Versatile Portfolios Participants (Back-end Load) 152,243 58, Segment 9 Versatile Portfolios Participants (No-Load) 25,464 70,259 44, Segment 11 Versatile Portfolios TFSA 20,034 12, Segment 12 Versatile Portfolios Education Savings Plan 2, Number of units outstanding Segment 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 1, Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Management expense ratio (note 9) Segment 4 Versatile Asset Participants 3.37% 3.38% 3.37% - - Segment 5 Versatile Asset II Participants 3.45% 3.45% 3.44% - - Segment 8 Versatile Portfolios Participants (Back-end Load) 3.64% 3.64% Segment 9 Versatile Portfolios Participants (No-Load) 3.73% 3.73% 3.72% - - Segment 11 Versatile Portfolios TFSA 3.71% 3.71% 3.71% - - Segment 12 Versatile Portfolios Education Savings Plan 3.21% 3.21% Portfolio turnover rate (note 10) 52.90% 52.90% 99.27% - - The Co-operators Ethical International Equity Fund only came into existence in 2012 and therefore comparative information for prior years is unavailable. 29

32 Co-operators Ethical Select Balanced Portfolio (note 11) Formerly Co-operators Ethical Select Canadian Balanced Portfolio Underlying fund managed by NEI Investments 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 Investment in investment fund units 4,515 3,798 3,277 Net assets attributable to unitholders at beginning of year 3,787 3,269 Liabilities unitholders Current Liabilities Payables Transactions with unitholders Unitholders' contributions Net assets attributable to unitholders 4,503 3,787 3,269 Unitholders' withdrawals (243) (118) Transfers (to) from other funds 168 (137) Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions Net assets attributable to unitholders at end of period 4,503 3,507 Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund - - Cash flows from operating activities Expenses unitholders Management fees (note 9) Adjustments for: Realized and unrealized gains (losses) (279) (160) Net investment income (loss) (69) (55) Current liabilities 12 9 Purchases (sales) of investments (449) (87) Gains (losses) on investments Net cash from operating activities (506) (133) Realized and unrealized gains (losses) Cash flows from financing activities unitholders unitholders per unit (note 13) Proceeds from the issuance of units Amounts paid on redemption of units (243) (255) Net cash from financing activities Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 NEI Ethical Select Balanced Portfolio (formerly NEI Ethical Select Canadian Balanced Portfolio) NEI Global Total Return Bond Fund, Series I 14.60% NEI Ethical Global Equity Fund, Series I 8.70% NEI Canadian Bond Fund, Series I 11.80% NEI Ethical Global Dividend Fund, Series I 8.60% NEI Ethical American Multi-Strategy Fund, Series I 11.70% NEI Ethical International Equity Fund, Series I 7.70% NEI Ethical Canadian Equity Fund, Series I 9.90% NEI Ethical Special Equity Fund, Series I 4.90% NEI Ethical Balanced Fund, Series I 9.90% Cash and Cash Equivalents 2.40% NEI Income Fund, Series I 9.80% 30

33 Co-operators Ethical Select Balanced Portfolio 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 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 1 Group Retirement Products Segment 2 Seed Money 30,728 28,953 25, Segment 4 Versatile Asset Participants 120, , , Segment 5 Versatile Asset II Participants 21,496 22,367 18, Segment 8 Versatile Portfolios Participants (Back-end Load) 2,536,450 2,110,191 1,743, Segment 9 Versatile Portfolios Participants (No-Load) 1,033, , , Segment 11 Versatile Portfolios TFSA 480, , , Segment 12 Versatile Portfolios Education Savings Plan 279, , , Number of units outstanding Segment 1 Group Retirement Products Segment 2 Seed Money Segment 4 Versatile Asset Participants 1,014 1,037 1, Segment 5 Versatile Asset II Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 21,519 18,764 17, Segment 9 Versatile Portfolios Participants (No-Load) 8,783 6,915 7, Segment 11 Versatile Portfolios TFSA 4,085 4,683 4, Segment 12 Versatile Portfolios Education Savings Plan 2,351 1,805 1, Management expense ratio (note 9) Segment 4 Versatile Asset Participants 3.04% 3.04% 3.04% - - Segment 5 Versatile Asset II Participants 3.11% 3.12% 3.11% - - Segment 8 Versatile Portfolios Participants (Back-end Load) 3.31% 3.31% 3.31% - - Segment 9 Versatile Portfolios Participants (No-Load) 3.40% 3.40% 3.39% - - Segment 11 Versatile Portfolios TFSA 3.39% 3.38% 3.38% - - Segment 12 Versatile Portfolios Education Savings Plan 2.88% 2.88% 2.88% - - Portfolio turnover rate (note 10) 41.35% 41.35% 19.41% - - The Co-operators Ethical Select Balanced Portfolio only came into existence in 2012 and therefore comparative information for prior years is unavailable. 31

34 Co-operators Ethical Select Growth Portfolio (note 11) Formerly Co-operators Ethical Select Canadian Growth Portfolio Underlying fund managed by NEI Investments 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 Investment in investment fund units 1,885 1,410 1,046 Net assets attributable to unitholders at beginning of year 1,406 1,043 Liabilities unitholders Current Liabilities Payables Transactions with unitholders Unitholders' contributions Net assets attributable to unitholders 1,880 1,406 1,043 Unitholders' withdrawals (90) (10) Transfers (to) from other funds (73) 17 Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions Net assets attributable to unitholders at end of period 1,880 1,225 Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund - - Cash flows from operating activities Expenses unitholders Management fees (note 9) Adjustments for: Realized and unrealized gains (losses) (113) (71) Net investment income (loss) (27) (19) Current liabilities 5 3 Purchases (sales) of investments (366) (114) Gains (losses) on investments Net cash from operating activities (388) (130) Realized and unrealized gains (losses) Cash flows from financing activities unitholders unitholders per unit (note 13) Proceeds from the issuance of units Amounts paid on redemption of units (163) (10) Net cash from financing activities Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 NEI Ethical Select Canadian Growth Portfolio (formerly NEI Ethical Select Canadian Growth Portfolio) NEI Ethical American Multi-Strategy Fund, Series I 14.90% NEI Ethical International Equity Fund, Series I 9.00% NEI Ethical Canadian Equity Fund, Series I 14.10% NEI Ethical Special Equity Fund, Series I 6.00% NEI Ethical Balanced Fund, Series I 12.00% NEI Income Fund, Series I 5.00% NEI Ethical Global Dividend Fund, Series I 12.00% NEI Canadian Bond Fund, Series I 5.00% NEI Ethical Global Equity Fund, Series I 12.00% Cash and Cash Equivalents 0.10% NEI Global Total Return Bond Fund, Series I 9.90% 32

35 Co-operators Ethical Select Growth Portfolio 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 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 2 Seed Money 64,555 60,515 51, Segment 4 Versatile Asset Participants 131, ,349 92, Segment 5 Versatile Asset II Participants 47,719 39,852 31, Segment 8 Versatile Portfolios Participants (Back-end Load) 1,345, , , Segment 9 Versatile Portfolios Participants (No-Load) 164, , , Segment 11 Versatile Portfolios TFSA 96,661 70,341 48, Segment 12 Versatile Portfolios Education Savings Plan 30,267 19,240 11, Number of units outstanding Segment 2 Seed Money Segment 4 Versatile Asset Participants 1, Segment 5 Versatile Asset II Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 10,893 8,065 6, Segment 9 Versatile Portfolios Participants (No-Load) 1,337 1,345 1, Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Management expense ratio (note 9) Segment 4 Versatile Asset Participants 3.26% 3.27% 3.26% - - Segment 5 Versatile Asset II Participants 3.34% 3.34% 3.33% - - Segment 8 Versatile Portfolios Participants (Back-end Load) 3.53% 3.53% 3.53% - - Segment 9 Versatile Portfolios Participants (No-Load) 3.62% 3.62% 3.61% - - Segment 11 Versatile Portfolios TFSA 3.60% 3.60% 3.60% - - Segment 12 Versatile Portfolios Education Savings Plan 3.10% 3.10% 3.10% - - Portfolio turnover rate (note 10) 48.01% 48.01% 11.68% - - The Co-operators Ethical Select Growth Portfolio only came into existence in 2012 and therefore comparative information for prior years is unavailable. 33

36 Co-operators Ethical Select Conservative Portfolio Underlying fund managed by NEI Investments 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 Investment in investment fund units 1, Net assets attributable to unitholders at beginning of year Liabilities unitholders 33 (3) Current Liabilities Payables Transactions with unitholders Unitholders' contributions Net assets attributable to unitholders 1, Unitholders' withdrawals (14) (3) Transfers (to) from other funds Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions Net assets attributable to unitholders at end of period 1, Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund - - Cash flows from operating activities Expenses unitholders 33 (3) Management fees (note 9) 13 2 Adjustments for: Realized and unrealized gains (losses) (46) 1 Net investment income (loss) (13) (2) Current liabilities 3 1 Purchases (sales) of investments (714) (217) Gains (losses) on investments Net cash from operating activities (724) (218) Realized and unrealized gains (losses) 46 (1) Cash flows from financing activities unitholders unitholders per unit (note 13) Proceeds from the issuance of units (3) Amounts paid on redemption of units (14) (3) Net cash from financing activities (1.50) Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 NEI Ethical Select Conservative Portfolio NEI Canadian Bond Fund, Series I 24.80% NEI Ethical American Multi-Strategy Fund, Series I 7.10% NEI Income Fund, Series I 17.80% NEI Ethical International Equity Fund, Series I 6.00% NEI Global Total Return Bond Fund, Series I 13.80% NEI Ethical Global Equity Fund, Series I 5.00% NEI Ethical Balanced Fund, Series I 10.10% NEI Ethical Global Dividend Fund, Series I 4.90% NEI Ethical Canadian Equity Fund, Series I 10.10% Cash and Cash Equivalents 0.40% 34

37 Co-operators Ethical Select Conservative Portfolio 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 2 Seed Money Segment 5 Versatile Asset II Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 1 Group Retirement Products Segment 2 Seed Money 57,090 54,245 50, Segment 5 Versatile Asset II Participants 95,547 86, Segment 8 Versatile Portfolios Participants (Back-end Load) 363, , Segment 9 Versatile Portfolios Participants (No-Load) 414,855 29,800 2, Segment 11 Versatile Portfolios TFSA 93,193 22, Segment 12 Versatile Portfolios Education Savings Plan 61,536 5,997 11, Number of units outstanding Segment 1 Group Retirement Products Segment 2 Seed Money Segment 5 Versatile Asset II Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 3,322 1, Segment 9 Versatile Portfolios Participants (No-Load) 3, Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Management expense ratio (note 9) Segment 5 Versatile Asset II Participants 2.93% 2.93% Segment 8 Versatile Portfolios Participants (Back-end Load) 3.20% 3.20% Segment 9 Versatile Portfolios Participants (No-Load) 3.29% 3.29% 3.29% - - Segment 11 Versatile Portfolios TFSA 3.28% 3.28% Segment 12 Versatile Portfolios Education Savings Plan 2.77% 2.77% 2.76% - - Portfolio turnover rate (note 10) 43.84% 43.84% 29.25% - - The Co-operators Ethical Select Conservative Portfolio only came into existence in 2012 and therefore comparative information for prior years is unavailable. 35

38 Co-operators Ethical Select Income Portfolio Underlying fund managed by NEI Investments 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 Investment in investment fund units 840 1, Net assets attributable to unitholders at beginning of year 1, Liabilities unitholders 35 (4) Current Liabilities Payables Transactions with unitholders Unitholders' contributions Net assets attributable to unitholders 838 1, Unitholders' withdrawals (109) - Transfers (to) from other funds (577) - Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions (548) 101 Net assets attributable to unitholders at end of period Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund - - Cash flows from operating activities Expenses unitholders 35 (4) Management fees (note 9) 15 2 Adjustments for: Realized and unrealized gains (losses) (50) 2 Net investment income (loss) (15) (2) Current liabilities 2 - Purchases (sales) of investments 561 (99) Gains (losses) on investments Net cash from operating activities 548 (101) Realized and unrealized gains (losses) 50 (2) Cash flows from financing activities unitholders unitholders per unit (note 13) Proceeds from the issuance of units (4) Amounts paid on redemption of units (686) - Net cash from financing activities (548) (0.57) Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 NEI Ethical Select Income Portfolio NEI Canadian Bond Fund, Series I 40.10% NEI Ethical Global Dividend Fund, Series I 12.90% NEI Income Fund, Series I 22.00% NEI Ethical Canadian Equity Fund, Series I 7.00% NEI Global Total Return Bond Fund, Series I 17.90% Cash and Cash Equivalents 0.10% 36

39 Co-operators Ethical Select Income Portfolio 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 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 1 Group Retirement Products Segment 2 Seed Money 54,109 51,793 50, Segment 4 Versatile Asset Participants 11,668 11,294 11, Segment 5 Versatile Asset II Participants 47,402 45,899 45, Segment 6 Versatile Asset III Participants 1, Segment 8 Versatile Portfolios Participants (Back-end Load) 143,555 26,899 9, Segment 9 Versatile Portfolios Participants (No-Load) 536,820 1,194, Segment 11 Versatile Portfolios TFSA 30,287 9, Segment 12 Versatile Portfolios Education Savings Plan 12,515 10, Number of units outstanding Segment 1 Group Retirement Products Segment 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 1, Segment 9 Versatile Portfolios Participants (No-Load) 5,180 11, Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.87% 2.88% 2.87% - - Segment 5 Versatile Asset II Participants 2.95% 2.95% 2.94% - - Segment 6 Versatile Asset III Participants 3.12% 3.13% Segment 8 Versatile Portfolios Participants (Back-end Load) 3.14% 3.15% 3.21% - - Segment 9 Versatile Portfolios Participants (No-Load) 3.23% 3.24% Segment 11 Versatile Portfolios TFSA 3.22% 3.22% Segment 12 Versatile Portfolios Education Savings Plan 2.71% 2.72% Portfolio turnover rate (note 10) 22.87% 22.87% 4.64% - - The Co-operators Ethical Select Income Portfolio only came into existence in 2012 and therefore comparative information for prior years is unavailable. 37

40 Co-operators Fidelity Canadian Bond Fund Underlying fund managed by Fidelity Investments Canada ULC 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 Investment in investment fund units 25,542 25,281 23,845 Net assets attributable to unitholders at beginning of year 25,216 23,785 Liabilities unitholders 977 (703) Current Liabilities Payables Fund of funds rebalancing (note 2) Net assets attributable to unitholders Net assets attributable to unitholders per unit 25,477 25,216 23,785 Transactions with unitholders Unitholders' contributions 3,008 3,308 Unitholders' withdrawals (2,647) (1,994) Transfers (to) from other funds (1,289) (96) Net increase (decrease) from unitholders' transactions (928) 1,218 Statement of Comprehensive Income Net assets attributable to unitholders at end of period 25,477 24,826 For the periods ended June (in thousands of dollars except per unit amounts) $ $ Statement of Cash Flows Investment Income For the periods ended June Distribution from underlying fund (in thousands of dollars) $ $ Expenses Cash flows from operating activities Management fees (note 9) Audit, legal and other fees (note 9) 1 1 unitholders 977 (703) Adjustments for: Realized and unrealized gains (losses) (915) 752 Net investment income (loss) Current liabilities Purchases (sales) of investments 1,028 (1,439) Gains (losses) on investments Net cash from operating activities 1,155 (1,334) Realized and unrealized gains (losses) 915 (752) Cash flows from financing activities unitholders unitholders per unit (note 13) Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 Distributions (439) (410) 977 (703) Proceeds from the issuance of units 3,220 3,834 Amounts paid on redemption of units (3,936) (2,090) Net cash from financing activities (1,155) 1, (3.78) Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Fidelity Canadian Bond Fund Ontario Prov 2.85% 6/02/ % Quebec Province 4.25% 12/01/ % Canada Housing 1.95% 06/15/ % Canada Govt 1.5% 9/01/ % Canada Govt 3.5% 12/01/ % Bank of Montreal CD+40 3/ % Canada Housing 2.05% 6/ % Prov of New Bruns 3.55% 6/3/ % Ontario Prov 4.2% 6/2/ % CI Invest Inc 3.94/VAR 12/ % Quebec Province 5% 12/01/ % Can Imperial Bk 4.11/VAR 4/ % Canada Housing 2.65% 3/ % Ontario Prov 3.5% 6/02/ % Quebec Prov 4.25% 12/01/ % Ontario Province 4.65% 6/02/ % Royal Bank of Canada 2.26% 3/ % Bank of Montreal 2.24% 12/11/ % Canada Housing 2.35% 9/15/ % Quebec Prov Mtn 4.5% 12/01/ % Royal Bk Cda 2.364% 9/21/ % Canada Housing 1.7% 12/15/ % Manitoba Prov 4.05% 09/05/ % Bk Nova Scotia 2.462% 03/14/ % Quebec Province 3% 9/01/ % 38

41 Co-operators Fidelity Canadian Bond 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 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 2 Seed Money Segment 4 Versatile Asset Participants 1,802,336 1,990,307 1,990,401 3,265,705 3,173,630 Segment 5 Versatile Asset II Participants 759, , ,704 1,556,314 1,707,524 Segment 6 Versatile Asset III Participants 71,934 82,472 68, , ,054 Segment 8 Versatile Portfolios Participants (Back-end Load) 14,933,192 14,496,119 14,080,994 21,498,156 18,984,039 Segment 9 Versatile Portfolios Participants (No-Load) 6,036,990 6,116,935 5,533,560 8,622,097 8,122,711 Segment 11 Versatile Portfolios TFSA 1,592,520 1,429,440 1,028,096 1,063, ,938 Segment 12 Versatile Portfolios Education Savings Plan 281, , , , ,600 Number of units outstanding Segment 2 Seed Money Segment 4 Versatile Asset Participants 12,795 14,677 14,181 23,694 24,534 Segment 5 Versatile Asset II Participants 5,558 6,509 6,487 11,602 13,523 Segment 6 Versatile Asset III Participants ,066 Segment 8 Versatile Portfolios Participants (Back-end Load) 111, , , , ,421 Segment 9 Versatile Portfolios Participants (No-Load) 44,308 46,595 40,532 63,563 63,369 Segment 11 Versatile Portfolios TFSA 13,542 12,587 8,702 9,135 5,876 Segment 12 Versatile Portfolios Education Savings Plan 2,385 2,168 1,705 2,516 1,636 Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.60% 2.60% 2.61% 2.61% 2.55% Segment 5 Versatile Asset II Participants 2.89% 2.89% 2.90% 2.90% 2.82% Segment 6 Versatile Asset III Participants 3.12% 3.13% 3.14% 3.14% 3.04% Segment 8 Versatile Portfolios Participants (Back-end Load) 3.09% 3.09% 3.10% 3.11% 3.03% Segment 9 Versatile Portfolios Participants (No-Load) 3.23% 3.24% 3.25% 3.25% 3.18% Segment 11 Versatile Portfolios TFSA 3.22% 3.22% 3.23% 3.25% 3.19% Segment 12 Versatile Portfolios Education Savings Plan 2.88% 2.88% 2.89% 2.89% 2.81% Portfolio turnover rate (note 10) 61.00% 61.00% 73.00% 85.00% 73.00% 39

42 Co-operators Fidelity Global Fund Underlying fund managed by Fidelity Investments Canada ULC 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 Investment in investment fund units 12,802 10,924 8,582 Net assets attributable to unitholders at beginning of year 10,894 8,560 Liabilities unitholders Current Liabilities Payables Fund of funds rebalancing (note 2) 307 (320) Net assets attributable to unitholders Net assets attributable to unitholders per unit 12,768 10,894 8,560 Transactions with unitholders Unitholders' contributions 1, Unitholders' withdrawals (668) (339) Transfers (to) from other funds 290 (330) Net increase (decrease) from unitholders' transactions 1, Statement of Comprehensive Income Net assets attributable to unitholders at end of period 12,768 9,326 For the periods ended June (in thousands of dollars except per unit amounts) $ $ Statement of Cash Flows Investment Income For the periods ended June Distribution from underlying fund - - (in thousands of dollars) $ $ Expenses Management fees (note 9) Cash flows from operating activities unitholders Net investment income (loss) (186) (143) Adjustments for: Realized and unrealized gains (losses) (591) (1,049) Gains (losses) on investments Current liabilities Realized and unrealized gains (losses) 591 1,049 Purchases (sales) of investments (1,317) 260 Net cash from operating activities (1,469) 140 unitholders Cash flows from financing activities unitholders per unit (note 13) Proceeds from the issuance of units 2, Amounts paid on redemption of units (668) (989) Net cash from financing activities 1,469 (140) Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 Fidelity Global Fund Apple Inc 3.84% United Technologies Corp 1.32% Gilead Sciences Inc 1.94% Express Scripts Hldg Co 1.30% Qualcomm Inc 1.93% CVS Caremark Corp 1.14% Google Inc Cl A 1.69% Ebay Inc 1.13% Google Inc Cl C 1.66% United Parcel Service Inc Cl B 1.12% Pepsico Inc 1.64% Viacom Inc Cl B 1.10% Philip Morris Intl Inc 1.62% Merck & Co Inc New 1.07% Oracle Corp 1.58% Occidental Petroleum Corp 0.92% Home Depot Inc 1.55% Royal Dutch Shell PLC CL B(UK) 0.91% Ashland Inc 1.52% Honeywell Intl Inc 0.90% JPMorgan Chase & Co 1.43% Apache Corp 0.90% Capital One Financial Corp 1.39% Agilent Technologies Inc 0.90% TJX Companies Inc New 1.39% 40

43 Co-operators Fidelity Global 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 2 Seed Money 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 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 1 Group Retirement Products 570, , , , ,525 Segment 2 Seed Money Segment 3 Group Retirement - Investment Mgmt Only 556, , , , ,517 Segment 4 Versatile Asset Participants 1,127,688 1,033, ,962 2,237,700 2,496,270 Segment 5 Versatile Asset II Participants 968, , ,315 1,618,286 1,837,115 Segment 6 Versatile Asset III Participants 65,134 54,437 40, , ,598 Segment 8 Versatile Portfolios Participants (Back-end Load) 7,237,093 6,034,918 4,899,733 14,339,209 14,092,420 Segment 9 Versatile Portfolios Participants (No-Load) 1,559,967 1,332,877 1,030,785 4,088,475 4,222,235 Segment 11 Versatile Portfolios TFSA 448, , , , ,032 Segment 12 Versatile Portfolios Education Savings Plan 234, , , , ,789 Number of units outstanding Segment 1 Group Retirement Products 5,690 4,445 3,814 4,039 4,491 Segment 2 Seed Money Segment 3 Group Retirement - Investment Mgmt Only 4,438 4,395 4,054 1,874 1,653 Segment 4 Versatile Asset Participants 9,091 8,611 8,504 25,815 26,260 Segment 5 Versatile Asset II Participants 7,743 8,044 8,778 18,720 19,303 Segment 6 Versatile Asset III Participants ,653 1,534 Segment 8 Versatile Portfolios Participants (Back-end Load) 59,150 50,870 53, , ,630 Segment 9 Versatile Portfolios Participants (No-Load) 12,060 10,637 10,536 45,539 42,556 Segment 11 Versatile Portfolios TFSA 2,804 1,995 1,558 5,517 3,295 Segment 12 Versatile Portfolios Education Savings Plan 1,492 1, ,245 1,437 Management expense ratio (note 9) Segment 4 Versatile Asset Participants 3.15% 3.15% 3.16% 3.17% 3.08% Segment 5 Versatile Asset II Participants 3.45% 3.45% 3.46% 3.46% 3.36% Segment 6 Versatile Asset III Participants 3.68% 3.69% 3.70% 3.69% 3.58% Segment 8 Versatile Portfolios Participants (Back-end Load) 3.64% 3.64% 3.65% 3.66% 3.57% Segment 9 Versatile Portfolios Participants (No-Load) 3.78% 3.78% 3.79% 3.80% 3.72% Segment 11 Versatile Portfolios TFSA 3.77% 3.77% 3.78% 3.79% 3.73% Segment 12 Versatile Portfolios Education Savings Plan 3.27% 3.27% 3.28% 3.28% 3.18% Portfolio turnover rate (note 10) 57.00% 57.00% 63.00% 34.00% 75.00% 41

44 Co-operators Fidelity True North Fund Underlying fund managed by Fidelity Investments Canada ULC 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 Investment in investment fund units 43,343 37,604 29,775 Net assets attributable to unitholders at beginning of year 37,507 29,701 Liabilities unitholders 3,212 2,551 Current Liabilities Payables Fund of funds rebalancing (note 2) (182) (769) Net assets attributable to unitholders Net assets attributable to unitholders per unit 43,235 37,507 29,701 Transactions with unitholders Unitholders' contributions 4,392 2,824 Unitholders' withdrawals (2,081) (1,484) Transfers (to) from other funds 387 (246) Net increase (decrease) from unitholders' transactions 2,698 1,094 Statement of Comprehensive Income Net assets attributable to unitholders at end of period 43,235 32,577 For the periods ended June (in thousands of dollars except per unit amounts) $ $ Statement of Cash Flows Investment Income For the periods ended June Distribution from underlying fund - - (in thousands of dollars) $ $ Expenses Cash flows from operating activities Management fees (note 9) Audit, legal and other fees (note 9) 1 1 unitholders 3,212 2, Adjustments for: Realized and unrealized gains (losses) (3,807) (3,016) Net investment income (loss) (595) (465) Current liabilities Purchases (sales) of investments (2,029) 66 Gains (losses) on investments Net cash from operating activities (2,516) (325) Realized and unrealized gains (losses) 3,807 3,016 Cash flows from financing activities unitholders unitholders per unit (note 13) Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 Proceeds from the issuance of units 4,779 2,824 3,212 2,551 Amounts paid on redemption of units (2,263) (2,499) Net cash from financing activities 2, Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Fidelity True North Fund Toronto-Dominion Bank 7.78% SNC-Lavalin Grp Inc 1.99% Suncor Energy Inc 4.04% Tourmaline Oil Corp 1.79% Manulife Financial Corp (Cana) 3.60% Fairfax Finl Hldgs Ltd Sub Vtg 1.74% Royal Bank of Canada 3.58% Open Text Corporation 1.72% Canadian Natl Railway Co 3.42% Keyera Corp 1.63% Alimentation Couch Cl B Sub Vtg 3.40% Rogers Comm Inc Cl B Non Vtg 1.53% Loblaw Cos Ltd 3.34% Metro Inc 1.50% CGI Groupe Inc Cl A Sub Vtg 3.19% Bombardier Inc Cl B Sub Vtg 1.43% Canadian Natl Resources Ltd 3.07% Magna Intl Inc Sub Vtg 1.38% Power Corp of Canada Sub Vtg 2.75% Google Inc Cl A 1.35% Valeant Pharmaceuticals Intl 2.50% Potash Corp of Saskatchewan 1.15% Gildan Activewear Inc 2.11% Goldcorp Inc (Cana) 1.15% Enbridge Inc 2.00% 42

45 Co-operators Fidelity True North 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 2 Seed Money 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 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 10 Group Retirement Income Product Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 1 Group Retirement Products 5,245,394 4,715,004 3,463,822 2,990,698 3,003,573 Segment 2 Seed Money ,098 Segment 3 Group Retirement - Investment Mgmt Only 1,390,172 1,263, , , ,855 Segment 4 Versatile Asset Participants 3,468,871 3,100,677 2,527,482 2,971,197 3,291,747 Segment 5 Versatile Asset II Participants 2,478,971 2,439,915 1,905,911 2,206,866 2,390,710 Segment 6 Versatile Asset III Participants 318, , , , ,439 Segment 8 Versatile Portfolios Participants (Back-end Load) 22,115,779 18,715,835 15,309,302 15,905,160 16,184,519 Segment 9 Versatile Portfolios Participants (No-Load) 6,011,515 5,274,442 4,198,853 4,766,158 4,762,070 Segment 10 Group Retirement Income Product 10,449 6, Segment 11 Versatile Portfolios TFSA 1,542,777 1,158, , , ,235 Segment 12 Versatile Portfolios Education Savings Plan 652, , , , ,701 Number of units outstanding Segment 1 Group Retirement Products 39,297 38,143 34,127 31,744 29,399 Segment 2 Seed Money Segment 3 Group Retirement - Investment Mgmt Only 11,184 11,064 10,135 4,385 3,823 Segment 4 Versatile Asset Participants 14,290 13,804 13,697 17,355 17,572 Segment 5 Versatile Asset II Participants 10,435 11,082 10,508 13,052 12,868 Segment 6 Versatile Asset III Participants 1,448 1,435 1,516 1,667 1,575 Segment 8 Versatile Portfolios Participants (Back-end Load) 94,680 86,411 85,729 95,378 88,220 Segment 9 Versatile Portfolios Participants (No-Load) 27,045 25,573 24,703 30,070 27,312 Segment 10 Group Retirement Income Product Segment 11 Versatile Portfolios TFSA 8,239 6,670 5,135 5,490 3,579 Segment 12 Versatile Portfolios Education Savings Plan 4,196 3,753 3,112 2,577 1,770 Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.76% 2.77% 2.78% 2.78% 2.71% Segment 5 Versatile Asset II Participants 3.06% 3.06% 3.07% 3.07% 2.98% Segment 6 Versatile Asset III Participants 3.29% 3.30% 3.31% 3.30% 3.20% Segment 8 Versatile Portfolios Participants (Back-end Load) 3.25% 3.26% 3.27% 3.27% 3.19% Segment 9 Versatile Portfolios Participants (No-Load) 3.40% 3.40% 3.41% 3.42% 3.34% Segment 11 Versatile Portfolios TFSA 3.39% 3.38% 3.39% 3.41% 3.35% Segment 12 Versatile Portfolios Education Savings Plan 3.21% 3.21% 3.22% 3.22% 3.13% Portfolio turnover rate (note 10) 24.00% 24.00% 42.00% 38.00% 32.00% 43

46 Co-operators Mawer Balanced Fund Underlying fund managed by Mawer Investment Management Ltd. 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 Investment in investment fund units 19,532 10, Net assets attributable to unitholders at beginning of year 10, Liabilities unitholders Current Liabilities Payables Transactions with unitholders Unitholders' contributions 6,054 1,862 Net assets attributable to unitholders 19,486 10, Unitholders' withdrawals (1,072) (104) Transfers (to) from other funds 3,107 2,789 Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions 8,089 4,547 Net assets attributable to unitholders at end of period 19,486 5,486 Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund Cash flows from operating activities Expenses unitholders Management fees (note 9) Adjustments for: Realized and unrealized gains (losses) (1,012) (163) Net investment income (loss) (143) (34) Current liabilities Purchases (sales) of investments (7,918) (4,509) Gains (losses) on investments Net cash from operating activities (8,015) (4,531) Realized and unrealized gains (losses) 1, Cash flows from financing activities unitholders unitholders per unit (note 13) Distribution (74) (16) Proceeds from the issuance of units 9,161 4,651 Amounts paid on redemption of units (1,072) (104) Net cash from financing activities 8,015 4, Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 Mawer Balanced Fund Mawer Canadian Bond Fund Series O 31.02% Canadian Treasury Bill Oct 09, % Mawer US Equity Fund Series O 20.90% Canadian Treasury Bill Aug 28, % Mawer International Equity Fund Series O 16.36% Canadian Treasury Bill Jul 17, % Mawer Canadian Equity Fund Series O 13.48% Canadian Treasury Bill Aug 14, % Mawer Global Small Cap Fund Series O 7.05% Mawer Canadian Money Market Fund Series O 0.16% Mawer New Canada Fund Series O 5.56% Canadian Dollar 0.01% 44

47 Co-operators Mawer 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 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III 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 Segment 1 Group Retirement Products 391, ,157 2, Segment 2 Seed Money 148, , , ,623 - Segment 4 Versatile Asset Participants 1,520, ,181 8, Segment 5 Versatile Asset II Participants 654, ,684 14, Segment 6 Versatile Asset III Participants 20,482 8, Segment 8 Versatile Portfolios Participants (Back-end Load) 12,654,130 6,658, , Segment 9 Versatile Portfolios Participants (No-Load) 2,816,148 1,491,938 83, Segment 10 Co-operators Group Retirement Income Product 24,478 23, Segment 11 Versatile Portfolios TFSA 1,086, ,350 20, Segment 12 Versatile Portfolios Education Savings Plan 170,142 78, Number of units outstanding Segment 1 Group Retirement Products 3,263 2, Segment 2 Seed Money 1,000 1,000 1,000 1,000 - Segment 4 Versatile Asset Participants 11,872 7, Segment 5 Versatile Asset II Participants 5,114 4, Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 99,239 55,006 5, Segment 9 Versatile Portfolios Participants (No-Load) 22,119 12, Segment 10 Co-operators Group Retirement Income Product Segment 11 Versatile Portfolios TFSA 8,529 3, Segment 12 Versatile Portfolios Education Savings Plan 1, Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.71% 2.71% 2.71% - - Segment 5 Versatile Asset II Participants 2.78% 2.78% 2.78% - - Segment 6 Versatile Asset III Participants 2.95% 2.96% Segment 8 Versatile Portfolios Participants (Back-end Load) 2.98% 2.98% 2.98% - - Segment 9 Versatile Portfolios Participants (No-Load) 3.07% 3.07% 3.07% - - Segment 11 Versatile Portfolios TFSA 3.06% 3.06% 3.05% - - Segment 12 Versatile Portfolios Education Savings Plan 2.55% 2.55% 2.54% - - Portfolio turnover rate (note 10) 0.62% 0.62% 6.62% - - The Co-operators Mawer Balanced Fund only came into existence in 2011 and therefore comparative information for prior years is unavailable. 45

48 Co-operators Mawer Canadian Equity Fund Underlying fund managed by Mawer Investment Management Ltd. 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 Investment in investment fund units 46,706 38,794 28,560 Net assets attributable to unitholders at beginning of year 38,691 28,487 Liabilities unitholders 4,297 2,061 Current Liabilities Payables Fund of funds rebalancing (note 2) (1,204) (979) Net assets attributable to unitholders Net assets attributable to unitholders per unit 46,586 38,691 28,487 Transactions with unitholders Unitholders' contributions 6,623 4,200 Unitholders' withdrawals (2,752) (1,918) Transfers (to) from other funds 931 1,276 Net increase (decrease) from unitholders' transactions 4,802 3,558 Statement of Comprehensive Income Net assets attributable to unitholders at end of period 46,586 33,127 For the periods ended June (in thousands of dollars except per unit amounts) $ $ Statement of Cash Flows Investment Income For the periods ended June Distribution from underlying fund - - (in thousands of dollars) $ $ Expenses Cash flows from operating activities Management fees (note 9) Audit, legal and other fees (note 9) 1 1 unitholders 4,297 2, Adjustments for: Realized and unrealized gains (losses) (4,946) (2,542) Net investment income (loss) (649) (481) Current liabilities Purchases (sales) of investments (3,069) (2,176) Gains (losses) on investments Net cash from operating activities (3,598) (2,579) Realized and unrealized gains (losses) 4,946 2,542 Cash flows from financing activities unitholders unitholders per unit (note 13) Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 Proceeds from the issuance of units 7,554 5,476 4,297 2,061 Amounts paid on redemption of units (3,956) (2,897) Net cash from financing activities 3,598 2, Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Mawer Canadian Equity Fund Toronto-Dominion Bank 5.00% ONEX Corp 2.53% Bank of Nova Scotia 4.57% First Capital Realty Inc 2.46% Constellation Software Inc 4.46% Cogeco Cable Inc 2.45% Canadian National Railway Co 4.38% Cineplex Inc. 2.34% Royal Bank of Canada 4.23% Enbridge Inc 2.29% Brookfield Asset Management Inc CL A 4.00% Loblaw Cos Ltd 2.19% TELUS Corp 3.42% Canadian Treasury Bill Aug 28, % Saputo Inc 3.29% Valeant Pharmaceuticals International Inc 2.05% CI Financial Corp 3.03% Bank of Montreal 2.05% Industrial Alliance Insurance & Financial Services Inc 2.92% Canadian Pacific Railway Ltd 1.87% Rogers Communications Inc 2.90% Suncor Energy Inc 1.85% Manulife Financial Corp 2.85% Canadian Natural Resources Ltd 1.79% Power Corp of Canada 2.60% 46

49 Co-operators Mawer Canadian Equity 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 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 1 Group Retirement Products 145, ,525 4, Segment 2 Seed Money 157, , ,537 98,177 - Segment 4 Versatile Asset Participants 3,485,909 2,999,722 2,372, Segment 5 Versatile Asset II Participants 2,401,554 2,324,755 1,836, Segment 6 Versatile Asset III Participants 227, , , Segment 8 Versatile Portfolios Participants (Back-end Load) 29,251,830 23,745,091 17,539, Segment 9 Versatile Portfolios Participants (No-Load) 7,795,415 6,789,690 5,120, Segment 11 Versatile Portfolios TFSA 2,251,410 1,644, , Segment 12 Versatile Portfolios Education Savings Plan 869, , , Number of units outstanding Segment 1 Group Retirement Products 1,110 1, Segment 2 Seed Money 1,000 1,000 1,000 1,000 - Segment 4 Versatile Asset Participants 24,689 23,429 22, Segment 5 Versatile Asset II Participants 17,055 18,197 17, Segment 6 Versatile Asset III Participants 1,621 1,733 1, Segment 8 Versatile Portfolios Participants (Back-end Load) 208, , , Segment 9 Versatile Portfolios Participants (No-Load) 55,608 53,305 49, Segment 11 Versatile Portfolios TFSA 16,059 12,911 9, Segment 12 Versatile Portfolios Education Savings Plan 6,152 5,323 4, Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.71% 2.71% 2.71% 2.49% - Segment 5 Versatile Asset II Participants 2.78% 2.78% 2.78% 0.37% - Segment 6 Versatile Asset III Participants 2.96% 2.96% 2.96% - - Segment 8 Versatile Portfolios Participants (Back-end Load) 2.98% 2.98% 2.98% - - Segment 9 Versatile Portfolios Participants (No-Load) 3.07% 3.07% 3.07% - - Segment 11 Versatile Portfolios TFSA 3.06% 3.06% 3.06% - - Segment 12 Versatile Portfolios Education Savings Plan 2.55% 2.55% 2.55% - - Portfolio turnover rate (note 10) 12.00% 12.00% 7.76% - - The Co-operators Mawer Canadian Equity Fund only came into existence in 2011 and therefore comparative information for prior years is unavailable. 47

50 Co-operators Mawer International Equity Fund Underlying fund managed by Mawer Investment Management Ltd. 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 Investment in investment fund units 48,214 40,159 30,882 Net assets attributable to unitholders at beginning of year 40,050 30,801 Liabilities unitholders 2,797 1,816 Current Liabilities Payables Fund of funds rebalancing (note 2) 1,079 (909) Net assets attributable to unitholders Net assets attributable to unitholders per unit 48,093 40,050 30,801 Transactions with unitholders Unitholders' contributions 6,383 4,344 Unitholders' withdrawals (2,778) (2,043) Transfers (to) from other funds 562 1,396 Net increase (decrease) from unitholders' transactions 4,167 3,697 Statement of Comprehensive Income 48,093 35,405 Net assets attributable to unitholders at end of period For the periods ended June (in thousands of dollars except per unit amounts) $ $ Statement of Cash Flows Investment Income For the periods ended June Distribution from underlying fund - - (in thousands of dollars) $ $ Expenses Cash flows from operating activities Management fees (note 9) Audit, legal and other fees (note 9) 1 1 unitholders 2,797 1, Adjustments for: Realized and unrealized gains (losses) (3,477) (2,335) Net investment income (loss) (680) (519) Current liabilities Purchases (sales) of investments (4,687) (2,353) Gains (losses) on investments Net cash from operating activities (5,246) (2,788) Realized and unrealized gains (losses) 3,477 2,335 Cash flows from financing activities unitholders unitholders per unit (note 13) Top Holdings of Underlying Fund (unaudited) As at June 30, 2014 Proceeds from the issuance of units 8,024 5,740 2,797 1,816 Amounts paid on redemption of units (2,778) (2,952) Net cash from financing activities 5,246 2, Net increase (decrease) in cash - - Cash at beginning of year - - Cash at end of period - - Mawer International Equity Fund AON PLC 3.30% Intertek Group PLC 2.16% Roche Holding AG 2.91% Halma PLC 2.12% BASF SE 2.87% Air Liquide SA 1.97% BMW AG Preference Share 2.54% Gazit-Globe Ltd. 1.95% Smith & Nephew PLC 2.44% DCC PLC 1.94% Meda AB 2.42% China Mobile Ltd 1.91% Deutsche Boerse AG 2.42% Multiplus SA 1.90% Anheuser-Busch InBev NV 2.41% Aberdeen Asset Management PLC 1.85% Canadian Treasury Bill Oct 09, % DBS Group Holdings Ltd 1.85% Jardine Matheson Holdings Ltd. 2.33% LVMH Moet Hennessy Louis Vuitton 1.84% Reckitt Benckiser Group 2.25% USS Co. Ltd. 1.83% Rolls-Royce Holdings PLC 2.24% Markit Ltd. 1.80% Novartis AG ADR 2.20% 48

51 Co-operators Mawer International Equity 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 2 Seed Money Segment 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III 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 Segment 1 Group Retirement Products 120, ,803 2, Segment 2 Seed Money 155, , ,886 96,811 - Segment 4 Versatile Asset Participants 3,783,985 3,378,425 2,550, Segment 5 Versatile Asset II Participants 2,465,886 2,390,901 1,866, Segment 6 Versatile Asset III Participants 223, , , Segment 8 Versatile Portfolios Participants (Back-end Load) 29,151,208 24,523,708 19,159, Segment 9 Versatile Portfolios Participants (No-Load) 7,881,231 6,845,808 5,459, Segment 10 Co-operators Group Retirement Income Product 1,104, Segment 11 Versatile Portfolios TFSA 2,278,916 1,680,229 1,009, Segment 12 Versatile Portfolios Education Savings Plan 927, , , Number of units outstanding Segment 1 Group Retirement Products Segment 2 Seed Money 1,000 1,000 1,000 1,000 - Segment 4 Versatile Asset Participants 27,944 26,518 24, Segment 5 Versatile Asset II Participants 18,257 18,800 17, Segment 6 Versatile Asset III Participants 1,659 1,857 1, Segment 8 Versatile Portfolios Participants (Back-end Load) 216, , , Segment 9 Versatile Portfolios Participants (No-Load) 58,623 53,999 51, Segment 10 Co-operators Group Retirement Income Product 104, Segment 11 Versatile Portfolios TFSA 16,948 13,252 9, Segment 12 Versatile Portfolios Education Savings Plan 6,842 5,840 4, Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.87% 2.88% 2.88% - - Segment 5 Versatile Asset II Participants 2.95% 2.95% 2.95% - - Segment 6 Versatile Asset III Participants 3.12% 3.13% 3.13% - - Segment 8 Versatile Portfolios Participants (Back-end Load) 3.14% 3.15% 3.15% - - Segment 9 Versatile Portfolios Participants (No-Load) 3.23% 3.24% 3.24% - - Segment 11 Versatile Portfolios TFSA 3.22% 3.22% 3.22% - - Segment 12 Versatile Portfolios Education Savings Plan 2.71% 2.72% 2.72% - - Portfolio turnover rate (note 10) 14.56% 14.56% 18.15% - - The Co-operators Mawer International Equity Fund only came into existence in 2011 and therefore comparative information for prior years is unavailable. 49

52 Co-operators Aggressive Balanced Fund Underlying funds 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 Investment in investment fund units 15,231 20,461 17,841 Net assets attributable to unitholders at beginning of year 20,428 17,814 Liabilities unitholders 1, Current Liabilities Payables Transactions with unitholders Unitholders' contributions 1,459 1,151 Net assets attributable to unitholders 15,205 20,428 17,814 Unitholders' withdrawals (7,952) (476) Transfers (to) from other funds (100) 136 Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions (6,593) 811 Net assets attributable to unitholders at end of period 15,205 18,932 Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund - - Cash flows from operating activities Expenses unitholders 1, Management fees (note 9) Adjustments for: Audit, legal and other fees (note 9) 1 1 Realized and unrealized gains (losses) (1,537) (470) Current liabilities Purchases (sales) of investments 6,734 (674) Net investment income (loss) (167) (163) Net cash from operating activities 6,593 (811) Gains (losses) on investments Cash flows from financing activities Realized and unrealized gains (losses) 1, Proceeds from the issuance of units 1,459 1,287 Amounts paid on redemption of units (8,052) (476) Net cash from financing activities (6,593) 811 unitholders 1, Net increase (decrease) in cash - - Cash at beginning of year - - unitholders per unit Cash at end of period

53 Co-operators Aggressive Balanced Fund Underlying funds managed by Addenda Capital Inc. Portfolio Mix As at June 30, 2014 and December 31, 2013 Investment Co-operators Canadian Equity Fund 35.21% 35.04% Co-operators Canadian Fixed Income Fund 35.89% 36.00% Co-operators Canadian Resource Fund 8.04% 8.01% Co-operators Money Market Fund 1.99% 2.00% Co-operators U.S. Equity Fund 18.87% 18.95% % % Top Holdings of Underlying Funds (unaudited) As at June 30, 2014 Co-operators Canadian Equity Fund Co-operators Canadian Fixed Income Fund Toronto Dominion Bank 8.91% Province of Ontario, 4.650%, % Bank of Nova Scotia 6.07% Province of Quebec, FRN, % Suncor Energy Inc. 6.04% Canada Housing Trust, 3.350%, % Canadian Natural Resources Inc. 4.44% Canada Housing Trust, 2.050%, % Royal Bank of Canada 4.30% Government of Canada, 1.250%, % Co-operators Canadian Resource Fund Co-operators Money Market Fund Suncor Energy Inc. 9.35% Government of Canada T Bills, Due % Canadian Natural Resources Inc. 8.95% Government of Canada T Bills, Due % Pembina Pipeline 5.96% Royal Bank of Canada FRN % Silver Wheaton 5.38% King St. TR ABCP, % Crescent Point Energy 4.55% Bank of Montreal, FRN, % Co-operators U.S. Equity Fund Apple Inc. 4.47% Gilead Sciences Inc. 4.43% Thermo Fisher Sci 3.15% Express Scripts Inc. 2.64% CBS Corporation 2.47% 51

54 Co-operators Aggressive 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 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 1 Group Retirement Products 7,227,457 6,597,063 5,856,697 5,048,719 4,858,790 Segment 3 Group Retirement - Investment Mgmt Only - 6,758,278 6,054,476 5,730,971 5,835,543 Segment 4 Versatile Asset Participants 1,332,735 1,227, ,174 1,066,484 1,346,099 Segment 5 Versatile Asset II Participants 2,470,316 2,364,831 2,159,546 2,354,609 2,637,371 Segment 6 Versatile Asset III Participants 225, , , , ,708 Segment 7 Versatile Asset IV Participants 17,158 15,935 14,403 13,742 16,373 Segment 8 Versatile Portfolios Participants (Back-end Load) 2,919,595 2,446,379 1,987,638 1,939,034 1,411,235 Segment 9 Versatile Portfolios Participants (No-Load) 722, , , , ,814 Segment 11 Versatile Portfolios TFSA 233, , ,260 81,995 33,398 Segment 12 Versatile Portfolios Education Savings Plan 57,023 47,134 33,456 12,392 1,394 Number of units outstanding Segment 1 Group Retirement Products 35,640 35,416 35,159 31,749 29,889 Segment 3 Group Retirement - Investment Mgmt Only - 50,000 50,000 50,000 50,000 Segment 4 Versatile Asset Participants 6,208 6,154 5,531 6,177 7,595 Segment 5 Versatile Asset II Participants 11,905 12,243 12,315 14,009 15,243 Segment 6 Versatile Asset III Participants 1,219 1,229 1,230 1,379 1,687 Segment 7 Versatile Asset IV Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 16,525 14,862 13,274 13,484 9,514 Segment 9 Versatile Portfolios Participants (No-Load) 4,150 3,750 2,650 2,511 1,987 Segment 11 Versatile Portfolios TFSA 1,529 1, Segment 12 Versatile Portfolios Education Savings Plan Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.21% 2.22% 2.24% 2.25% 2.19% Segment 5 Versatile Asset II Participants 2.50% 2.51% 2.53% 2.54% 2.47% Segment 6 Versatile Asset III Participants 2.73% 2.74% 2.77% 2.77% 2.68% Segment 7 Versatile Asset IV Participants 2.04% 2.04% 2.07% 2.07% 2.02% Segment 8 Versatile Portfolios Participants (Back-end Load) 2.70% 2.71% 2.73% 2.74% 2.67% Segment 9 Versatile Portfolios Participants (No-Load) 2.85% 2.85% 2.88% 2.89% 2.83% Segment 11 Versatile Portfolios TFSA 2.84% 2.84% 2.87% 2.88% 2.83% Segment 12 Versatile Portfolios Education Savings Plan 2.33% 2.33% 2.36% 2.36% 2.29% Portfolio turnover rate (note 10) 94.02% 94.02% % % % 52

55 Co-operators Conservative Balanced Fund Underlying funds 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 Investment in investment fund units 9,991 8,098 6,954 Net assets attributable to unitholders at beginning of year 8,082 6,941 Liabilities unitholders Current Liabilities Payables Transactions with unitholders Unitholders' contributions 1, Net assets attributable to unitholders 9,972 8,082 6,941 Unitholders' withdrawals (618) (433) Transfers (to) from other funds Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions 1, Net assets attributable to unitholders at end of period 9,972 7,256 Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund - - Cash flows from operating activities Expenses unitholders Management fees (note 9) Adjustments for: Audit, legal and other fees (note 9) 1 - Realized and unrealized gains (losses) (622) (147) Current liabilities Purchases (sales) of investments (1,287) (180) Net investment income (loss) (105) (79) Net cash from operating activities (1,373) (247) Gains (losses) on investments Cash flows from financing activities Realized and unrealized gains (losses) Proceeds from the issuance of units 1, Amounts paid on redemption of units (618) (433) Net cash from financing activities 1, unitholders Net increase (decrease) in cash - - Cash at beginning of year - - unitholders per unit Cash at end of period

56 Co-operators Conservative Balanced Fund Underlying funds managed by Addenda Capital Inc. Portfolio Mix As at June 30, 2014 and December 31, 2013 Investment Co-operators Canadian Equity Fund 30.20% 30.04% Co-operators Canadian Fixed Income Fund 53.88% 54.00% Co-operators Money Market Fund 3.99% 3.99% Co-operators U.S. Equity Fund 11.93% 11.97% % % Top Holdings of Underlying Funds (unaudited) As at June 30, 2014 Co-operators Canadian Equity Fund Co-operators Canadian Fixed Income Fund Toronto Dominion Bank 8.91% Province of Ontario, 4.650%, % Bank of Nova Scotia 6.07% Province of Quebec, FRN, % Suncor Energy Inc. 6.04% Canada Housing Trust, 3.350%, % Canadian Natural Resources Inc. 4.44% Canada Housing Trust, 2.050%, % Royal Bank of Canada 4.30% Government of Canada, 1.250%, % Co-operators Money Market Fund Co-operators U.S. Equity Fund Government of Canada T Bills, Due % Apple Inc. 4.47% Government of Canada T Bills, Due % Gilead Sciences Inc. 4.43% Royal Bank of Canada FRN % Thermo Fisher Sci 3.15% King St. TR ABCP, % Express Scripts Inc. 2.64% Bank of Montreal, FRN, % CBS Corporation 2.47% 54

57 Co-operators Conservative 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 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 Segment 1 Group Retirement Products 2,930,945 2,854,639 2,851,357 2,340,322 1,925,565 Segment 4 Versatile Asset Participants 556, , , , ,839 Segment 5 Versatile Asset II Participants 707, , , , ,003 Segment 6 Versatile Asset III Participants 262, , , , ,931 Segment 7 Versatile Asset IV Participants 3,079 2,901 2,707 16,883 20,315 Segment 8 Versatile Portfolios Participants (Back-end Load) 4,363,852 2,779,465 1,818,491 1,555, ,351 Segment 9 Versatile Portfolios Participants (No-Load) 750, , , , ,563 Segment 10 Co-operators Group Retirement Income Product 58,817 55, Segment 11 Versatile Portfolios TFSA 242, ,348 92,832 52,822 52,534 Segment 12 Versatile Portfolios Education Savings Plan 96, ,169 89,554 28,559 8,244 Number of units outstanding Segment 1 Group Retirement Products 15,072 16,097 17,302 14,767 12,292 Segment 4 Versatile Asset Participants 2,824 2,948 3,530 2,843 3,225 Segment 5 Versatile Asset II Participants 3,712 3,811 4,302 4,100 4,387 Segment 6 Versatile Asset III Participants 1,577 1,395 1,361 1,233 1,141 Segment 7 Versatile Asset IV Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 27,646 18,616 12,949 11,498 6,514 Segment 9 Versatile Portfolios Participants (No-Load) 4,823 4,413 3,916 2,958 1,815 Segment 10 Co-operators Group Retirement Income Product Segment 11 Versatile Portfolios TFSA 1,718 1, Segment 12 Versatile Portfolios Education Savings Plan Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.21% 2.22% 2.24% 2.23% 2.18% Segment 5 Versatile Asset II Participants 2.50% 2.51% 2.53% 2.52% 2.46% Segment 6 Versatile Asset III Participants 2.73% 2.74% 2.77% 2.75% 2.67% Segment 7 Versatile Asset IV Participants 1.88% 1.89% 1.91% 1.91% 1.86% Segment 8 Versatile Portfolios Participants (Back-end Load) 2.70% 2.71% 2.73% 2.73% 2.66% Segment 9 Versatile Portfolios Participants (No-Load) 2.85% 2.85% 2.88% 2.87% 2.82% Segment 11 Versatile Portfolios TFSA 2.84% 2.84% 2.87% 2.87% 2.83% Segment 12 Versatile Portfolios Education Savings Plan 2.33% 2.33% 2.36% 2.35% 2.28% Portfolio turnover rate (note 10) % % % % % 55

58 Co-operators Aggressive Portfolio Underlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and Mawer Investment Management Ltd. 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 Investment in investment fund units 62,911 53,983 41,491 Net assets attributable to unitholders at beginning of year 53,834 41,380 Liabilities unitholders 4,059 1,997 Current Liabilities Payables Transactions with unitholders Unitholders' contributions 7,224 5,163 Net assets attributable to unitholders 62,742 53,834 41,380 Unitholders' withdrawals (3,033) (1,942) Transfers (to) from other funds 658 (976) Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions 4,849 2,245 Net assets attributable to unitholders at end of period 62,742 45,622 Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund Cash flows from operating activities Expenses unitholders 4,059 1,997 Management fees (note 9) Adjustments for: Audit, legal and other fees (note 9) 3 2 Realized and unrealized gains (losses) (4,808) (2,564) Current liabilities Purchases (sales) of investments (4,079) (1,659) Net investment income (loss) (749) (567) Net cash from operating activities (4,659) (2,115) Gains (losses) on investments Cash flows from financing activities Realized and unrealized gains (losses) 4,808 2,564 Distributions (190) (130) Proceeds from the issuance of units 7,882 5,163 unitholders Amounts paid on redemption of units (3,033) (2,918) 4,059 1,997 Net cash from financing activities 4,659 2,115 unitholders per unit Net increase (decrease) in cash Cash at beginning of year - - Cash at end of period

59 Co-operators Aggressive Portfolio Underlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and Mawer Investment Management Ltd. Portfolio Mix As at June 30, 2014 and December 31, 2013 Investment Co-operators BlackRock Universe Bond Index Fund 9.96% 9.96% Co-operators BlackRock US Equity Index Fund 9.91% 10.00% Co-operators Canadian Equity Fund 20.11% 20.03% Co-operators Canadian Fixed Income Fund 9.96% 10.00% Co-operators Fidelity Global Fund 9.97% 9.97% Co-operators Fidelity True North Fund 10.03% 10.00% Co-operators Mawer Canadian Equity Fund 15.07% 15.06% Co-operators Mawer International Equity Fund 14.99% 14.98% % % Top Holdings of Underlying Funds (unaudited) As at June 30, 2014 Co-operators BlackRock Universe Bond Index Fund Co-operators BlackRock US Equity Index Fund Government of Canada 3.75%, % Apple Inc. 3.22% Government of Canada 4.00%, % Exxon Mobile Corporation 2.48% Government of Canada 5.00%, % Microsoft Corporation 1.80% Government of Canada 5.75%, % Johnson & Johnson 1.70% Government of Canada 3.50%, % General Electric Co. 1.51% Co-operators Canadian Equity Fund Co-operators Canadian Fixed Income Fund Toronto Dominion Bank 8.91% Province of Ontario, 4.650%, % Bank of Nova Scotia 6.07% Province of Quebec, FRN, % Suncor Energy Inc. 6.04% Canada Housing Trust, 3.350%, % Canadian Natural Resources Inc. 4.44% Canada Housing Trust, 2.050%, % Royal Bank of Canada 4.30% Government of Canada, 1.250%, % Co-operators Fidelity Global Fund Co-operators Fidelity True North Fund Apple Inc 3.84% Toronto-Dominion Bank 7.78% Gilead Sciences Inc 1.94% Suncor Energy Inc 4.04% Qualcomm Inc 1.93% Manulife Financial Corp (Cana) 3.60% Google Inc Cl A 1.69% Royal Bank of Canada 3.58% Google Inc Cl C 1.66% Canadian Natl Railway Co 3.42% Co-operators Mawer Canadian Equity Fund Co-operators Mawer International Equity Fund Toronto-Dominion Bank 5.00% AON PLC 3.30% Bank of Nova Scotia 4.57% Roche Holding AG 2.91% Constellation Software Inc 4.46% BASF SE 2.87% Canadian National Railway Co 4.38% BMW AG Preference Share 2.54% Royal Bank of Canada 4.23% Smith & Nephew PLC 2.44% 57

60 Co-operators Aggressive Portfolio 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 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 4 Versatile Asset Participants 5,418,885 4,998,367 4,082,933 3,849,485 5,399,821 Segment 5 Versatile Asset II Participants 3,343,968 3,596,711 3,300,892 3,062,801 2,500,767 Segment 6 Versatile Asset III Participants 340, , , , ,964 Segment 8 Versatile Portfolios Participants (Back-end Load) 41,218,992 34,639,134 25,913,482 23,632,247 33,775,712 Segment 9 Versatile Portfolios Participants (No-Load) 8,896,375 7,446,920 6,018,561 5,595,536 12,044,423 Segment 11 Versatile Portfolios TFSA 2,160,764 1,704,882 1,118,193 1,011,773 1,268,771 Segment 12 Versatile Portfolios Education Savings Plan 1,362,886 1,153, , , ,508 Number of units outstanding Segment 4 Versatile Asset Participants 31,318 30,947 29,534 30,130 39,163 Segment 5 Versatile Asset II Participants 19,499 22,442 24,007 24,037 18,462 Segment 6 Versatile Asset III Participants 2,067 1,912 1,854 2,191 1,978 Segment 8 Versatile Portfolios Participants (Back-end Load) 246, , , , ,406 Segment 9 Versatile Portfolios Participants (No-Load) 54,075 48,357 45,404 45,401 90,867 Segment 11 Versatile Portfolios TFSA 13,668 11,522 8,781 8,547 10,513 Segment 12 Versatile Portfolios Education Savings Plan 9,168 8,312 5,895 3,909 2,372 Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.82% 2.82% 2.84% 2.83% 2.65% Segment 5 Versatile Asset II Participants 3.06% 3.06% 3.12% 3.13% 2.93% Segment 6 Versatile Asset III Participants 3.29% 3.30% 3.36% 3.36% 3.15% Segment 8 Versatile Portfolios Participants (Back-end Load) 3.25% 3.26% 3.32% 3.33% 3.14% Segment 9 Versatile Portfolios Participants (No-Load) 3.40% 3.40% 3.46% 3.47% 3.29% Segment 11 Versatile Portfolios TFSA 3.39% 3.38% 3.45% 3.46% 3.30% Segment 12 Versatile Portfolios Education Savings Plan 2.88% 2.88% 2.94% 2.95% 2.75% Portfolio turnover rate (note 10) 39.64% 39.64% % 71.91% 83.00% 58

61 Co-operators Conservative Portfolio Underlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and Mawer Investment Management Ltd. 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 Investment in investment fund units 86,765 75,226 64,293 Net assets attributable to unitholders at beginning of year 75,028 64,130 Liabilities unitholders 4, Current Liabilities Payables Transactions with unitholders Unitholders' contributions 9,957 8,502 Net assets attributable to unitholders 86,546 75,028 64,130 Unitholders' withdrawals (4,509) (5,189) Transfers (to) from other funds 1, Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions 7,340 3,332 Net assets attributable to unitholders at end of period 86,546 68,117 Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund Cash flows from operating activities Expenses unitholders 4, Management fees (note 9) 1, Adjustments for: Audit, legal and other fees (note 9) 3 3 Realized and unrealized gains (losses) (4,745) (1,176) 1,216 1,000 Current liabilities Purchases (sales) of investments (6,343) (2,489) Net investment income (loss) (567) (521) Net cash from operating activities (6,691) (2,853) Gains (losses) on investments Cash flows from financing activities Realized and unrealized gains (losses) 4,745 1,176 Distributions (649) (479) Proceeds from the issuance of units 11,849 8,521 unitholders Amounts paid on redemption of units (4,509) (5,189) 4, Net cash from financing activities 6,691 2,853 unitholders per unit Net increase (decrease) in cash Cash at beginning of year - - Cash at end of period

62 Co-operators Conservative Portfolio Underlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and Mawer Investment Management Ltd. Portfolio Mix As at June 30, 2014 and December 31, 2013 Investment Co-operators BlackRock Universe Bond Index Fund 24.96% 25.00% Co-operators BlackRock US Equity Index Fund 9.93% 9.96% Co-operators Canadian Equity Fund 10.07% 10.01% Co-operators Canadian Fixed Income Fund 24.96% 25.00% Co-operators Fidelity Canadian Bond Fund 9.99% 10.00% Co-operators Mawer Canadian Equity Fund 10.07% 10.04% Co-operators Mawer International Equity Fund 10.02% 9.99% % % Top Holdings of Underlying Funds (unaudited) As at June 30, 2014 Co-operators BlackRock Universe Bond Index Fund Co-operators BlackRock US Equity Index Fund Government of Canada 3.75%, % Apple Inc. 3.22% Government of Canada 4.00%, % Exxon Mobile Corporation 2.48% Government of Canada 5.00%, % Microsoft Corporation 1.80% Government of Canada 5.75%, % Johnson & Johnson 1.70% Government of Canada 3.50%, % General Electric Co. 1.51% Co-operators Canadian Equity Fund Co-operators Canadian Fixed Income Fund Toronto Dominion Bank 8.91% Province of Ontario, 4.650%, % Bank of Nova Scotia 6.07% Province of Quebec, FRN, % Suncor Energy Inc. 6.04% Canada Housing Trust, 3.350%, % Canadian Natural Resources Inc. 4.44% Canada Housing Trust, 2.050%, % Royal Bank of Canada 4.30% Government of Canada, 1.250%, % Co-operators Fidelity Canadian Bond Fund Co-operators Mawer Canadian Equity Fund Ontario Prov 2.85% 6/02/ % Toronto-Dominion Bank 5.00% Canada Housing 1.95% 06/15/ % Bank of Nova Scotia 4.57% Canada Govt 3.5% 12/01/ % Constellation Software Inc 4.46% Canada Housing 2.05% 6/ % Canadian National Railway Co 4.38% Ontario Prov 4.2% 6/2/ % Royal Bank of Canada 4.23% Co-operators Mawer International Equity Fund AON PLC 3.30% Roche Holding AG 2.91% BASF SE 2.87% BMW AG Preference Share 2.54% Smith & Nephew PLC 2.44% 60

63 Co-operators Conservative Portfolio 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 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 4 Versatile Asset Participants 5,200,691 4,497,869 4,225,895 5,320,802 5,399,821 Segment 5 Versatile Asset II Participants 3,136,607 2,487,686 2,297,135 2,216,865 2,500,767 Segment 6 Versatile Asset III Participants 414, , , , ,964 Segment 8 Versatile Portfolios Participants (Back-end Load) 53,009,469 46,852,569 40,217,732 36,729,412 33,775,712 Segment 9 Versatile Portfolios Participants (No-Load) 17,639,222 15,491,321 13,220,045 12,268,238 12,044,423 Segment 11 Versatile Portfolios TFSA 5,667,937 4,070,901 2,989,145 2,038,338 1,268,771 Segment 12 Versatile Portfolios Education Savings Plan 1,476,928 1,224, , , ,508 Number of units outstanding Segment 4 Versatile Asset Participants 32,350 29,523 29,549 38,979 39,163 Segment 5 Versatile Asset II Participants 20,006 16,733 16,440 16,579 18,462 Segment 6 Versatile Asset III Participants 2,707 2,770 2,254 2,101 1,978 Segment 8 Versatile Portfolios Participants (Back-end Load) 344, , , , ,406 Segment 9 Versatile Portfolios Participants (No-Load) 116, ,552 97,331 94,072 90,867 Segment 11 Versatile Portfolios TFSA 41,035 31,031 24,166 17,166 10,513 Segment 12 Versatile Portfolios Education Savings Plan 11,163 9,767 7,408 4,403 2,372 Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.71% 2.71% 2.72% 2.72% 2.65% Segment 5 Versatile Asset II Participants 2.84% 2.84% 3.00% 3.01% 2.93% Segment 6 Versatile Asset III Participants 3.07% 3.08% 3.24% 3.25% 3.15% Segment 8 Versatile Portfolios Participants (Back-end Load) 3.03% 3.04% 3.20% 3.22% 3.14% Segment 9 Versatile Portfolios Participants (No-Load) 3.18% 3.18% 3.34% 3.36% 3.29% Segment 11 Versatile Portfolios TFSA 3.17% 3.17% 3.33% 3.35% 3.30% Segment 12 Versatile Portfolios Education Savings Plan 2.66% 2.66% 2.82% 2.83% 2.75% Portfolio turnover rate (note 10) 55.05% 55.05% % 78.62% 83.23% 61

64 Co-operators Moderate Portfolio Underlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and Mawer Investment Management Ltd. 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 Investment in investment fund units 113,408 98,763 84,956 Net assets attributable to unitholders at beginning of year 98,497 84,735 Liabilities unitholders 6,293 2,278 Current Liabilities Payables Transactions with unitholders Unitholders' contributions 13,159 8,563 Net assets attributable to unitholders 113,113 98,497 84,735 Unitholders' withdrawals (5,682) (5,542) Transfers (to) from other funds Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions 8,323 3,323 Net assets attributable to unitholders at end of period 113,113 90,336 Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund Cash flows from operating activities Expenses unitholders 6,293 2,278 Management fees (note 9) 1,631 1,366 Adjustments for: Audit, legal and other fees (note 9) 5 3 Realized and unrealized gains (losses) (7,373) (3,237) 1,636 1,369 Current liabilities Purchases (sales) of investments (6,982) (2,169) Net investment income (loss) (1,080) (959) Net cash from operating activities (7,767) (2,913) Gains (losses) on investments Cash flows from financing activities Realized and unrealized gains (losses) 7,373 3,237 Distributions (556) (410) Proceeds from the issuance of units 14,005 8,865 unitholders Amounts paid on redemption of units (5,682) (5,542) 6,293 2,278 Net cash from financing activities 7,767 2,913 unitholders per unit Net increase (decrease) in cash Cash at beginning of year - - Cash at end of period

65 Co-operators Moderate Portfolio Underlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and Mawer Investment Management Ltd. Portfolio Mix As at June 30, 2014 and December 31, 2013 Investment Co-operators BlackRock Universe Bond Index Fund 19.94% 20.00% Co-operators BlackRock US Equity Index Fund 9.92% 9.96% Co-operators Canadian Equity Fund 15.09% 15.02% Co-operators Canadian Fixed Income Fund 19.94% 20.00% Co-operators Fidelity True North Fund 10.04% 10.00% Co-operators Mawer Canadian Equity Fund 10.06% 10.04% Co-operators Mawer International Equity Fund 15.01% 14.98% % % Top Holdings of Underlying Funds (unaudited) As at June 30, 2014 Co-operators BlackRock Universe Bond Index Fund Co-operators BlackRock US Equity Index Fund Government of Canada 3.75%, % Apple Inc. 3.22% Government of Canada 4.00%, % Exxon Mobile Corporation 2.48% Government of Canada 5.00%, % Microsoft Corporation 1.80% Government of Canada 5.75%, % Johnson & Johnson 1.70% Government of Canada 3.50%, % General Electric Co. 1.51% Co-operators Canadian Equity Fund Co-operators Canadian Fixed Income Fund Toronto Dominion Bank 8.91% Province of Ontario, 4.650%, % Bank of Nova Scotia 6.07% Province of Quebec, FRN, % Suncor Energy Inc. 6.04% Canada Housing Trust, 3.350%, % Canadian Natural Resources Inc. 4.44% Canada Housing Trust, 2.050%, % Royal Bank of Canada 4.30% Government of Canada, 1.250%, % Co-operators Fidelity True North Fund Co-operators Mawer Canadian Equity Fund Toronto-Dominion Bank 7.78% Toronto-Dominion Bank 5.00% Suncor Energy Inc 4.04% Bank of Nova Scotia 4.57% Manulife Financial Corp (Cana) 3.60% Constellation Software Inc 4.46% Royal Bank of Canada 3.58% Canadian National Railway Co 4.38% Canadian Natl Railway Co 3.42% Royal Bank of Canada 4.23% Co-operators Mawer International Equity Fund AON PLC 3.30% Roche Holding AG 2.91% BASF SE 2.87% BMW AG Preference Share 2.54% Smith & Nephew PLC 2.44% 63

66 Co-operators Moderate Portfolio 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 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 4 Versatile Asset Participants 8,459,051 7,812,226 7,177,082 7,815,997 7,923,866 Segment 5 Versatile Asset II Participants 6,703,810 6,576,713 5,488,240 5,552,497 6,244,219 Segment 6 Versatile Asset III Participants 410, , , , ,098 Segment 8 Versatile Portfolios Participants (Back-end Load) 71,723,987 61,609,459 53,523,158 51,159,823 50,557,003 Segment 9 Versatile Portfolios Participants (No-Load) 17,701,562 15,961,799 14,190,027 15,321,385 16,090,114 Segment 11 Versatile Portfolios TFSA 5,274,865 3,838,190 2,336,794 1,834,815 1,201,216 Segment 12 Versatile Portfolios Education Savings Plan 2,839,706 2,269,572 1,566, , ,360 Number of units outstanding Segment 4 Versatile Asset Participants 49,633 48,792 49,839 57,802 56,708 Segment 5 Versatile Asset II Participants 40,403 42,154 39,042 41,953 45,527 Segment 6 Versatile Asset III Participants 2,574 2,862 3,348 3,753 4,008 Segment 8 Versatile Portfolios Participants (Back-end Load) 441, , , , ,108 Segment 9 Versatile Portfolios Participants (No-Load) 110, , , , ,197 Segment 11 Versatile Portfolios TFSA 35,635 27,532 18,545 15,418 9,708 Segment 12 Versatile Portfolios Education Savings Plan 20,208 17,191 13,193 8,535 6,438 Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.76% 2.77% 2.78% 2.78% 2.71% Segment 5 Versatile Asset II Participants 2.95% 2.95% 3.06% 3.07% 2.99% Segment 6 Versatile Asset III Participants 3.18% 3.19% 3.30% 3.30% 3.20% Segment 8 Versatile Portfolios Participants (Back-end Load) 3.14% 3.15% 3.26% 3.27% 3.19% Segment 9 Versatile Portfolios Participants (No-Load) 3.29% 3.29% 3.41% 3.41% 3.34% Segment 11 Versatile Portfolios TFSA 3.28% 3.28% 3.39% 3.41% 3.35% Segment 12 Versatile Portfolios Education Savings Plan 2.77% 2.77% 2.88% 2.89% 2.81% Portfolio turnover rate (note 10) 46.76% 46.76% % 76.02% 82.76% 64

67 Co-operators Very Aggressive Portfolio Underlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and Mawer Investment Management Ltd. 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 Investment in investment fund units 23,118 20,668 15,997 Net assets attributable to unitholders at beginning of year 20,610 15,954 Liabilities unitholders 1,684 1,029 Current Liabilities Payables Transactions with unitholders Unitholders' contributions 2,491 1,641 Net assets attributable to unitholders 23,055 20,610 15,954 Unitholders' withdrawals (1,077) (673) Transfers (to) from other funds (653) 104 Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions 761 1,072 Net assets attributable to unitholders at end of period 23,055 18,055 Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund Cash flows from operating activities Expenses unitholders 1,684 1,029 Management fees (note 9) Adjustments for: Audit, legal and other fees (note 9) 1 1 Realized and unrealized gains (losses) (1,965) (1,248) Current liabilities Purchases (sales) of investments (471) (838) Net investment income (loss) (281) (219) Net cash from operating activities (689) (1,012) Gains (losses) on investments Cash flows from financing activities Realized and unrealized gains (losses) 1,965 1,248 Distributions (72) (60) Proceeds from the issuance of units 2,491 1,745 unitholders Amounts paid on redemption of units (1,730) (673) 1,684 1,029 Net cash from financing activities 689 1,012 unitholders per unit Net increase (decrease) in cash Cash at beginning of year - - Cash at end of period

68 Co-operators Very Aggressive Portfolio Underlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and Mawer Investment Management Ltd. Portfolio Mix As at June 30, 2014 and December 31, 2013 Investment Co-operators BlackRock Canadian Equity Index Fund 10.02% 10.01% Co-operators BlackRock US Equity Index Fund 14.85% % Co-operators Canadian Equity Fund 20.09% 20.04% Co-operators Fidelity Global Fund 9.96% 9.96% Co-operators Fidelity True North Fund 15.04% 15.00% Co-operators Mawer Canadian Equity Fund 15.06% 15.07% Co-operators Mawer International Equity Fund 14.98% 14.98% % % Top Holdings of Underlying Funds (unaudited) As at June 30, 2014 Co-operators BlackRock Canadian Equity Index Fund Co-operators BlackRock US Equity Index Fund Royal Bank of Canada 5.88% Apple Inc. 3.22% Toronto-Dominion Bank 5.42% Exxon Mobile Corporation 2.48% Bank of Nova Scotia 4.63% Microsoft Corporation 1.80% Suncor Energy Inc. 3.57% Johnson & Johnson 1.70% Canadian National Railway Co 3.05% General Electric Co. 1.51% Co-operators Canadian Equity Fund Co-operators Fidelity Global Fund Toronto Dominion Bank 8.91% Apple Inc 3.84% Bank of Nova Scotia 6.07% Gilead Sciences Inc 1.94% Suncor Energy Inc. 6.04% Qualcomm Inc 1.93% Canadian Natural Resources Inc. 4.44% Google Inc Cl A 1.69% Royal Bank of Canada 4.30% Google Inc Cl C 1.66% Co-operators Fidelity True North Fund Co-operators Mawer Canadian Equity Fund Toronto-Dominion Bank 7.78% Toronto-Dominion Bank 5.00% Suncor Energy Inc 4.04% Bank of Nova Scotia 4.57% Manulife Financial Corp (Cana) 3.60% Constellation Software Inc 4.46% Royal Bank of Canada 3.58% Canadian National Railway Co 4.38% Canadian Natl Railway Co 3.42% Royal Bank of Canada 4.23% Co-operators Mawer International Equity Fund AON PLC 3.30% Roche Holding AG 2.91% BASF SE 2.87% BMW AG Preference Share 2.54% Smith & Nephew PLC 2.44% 66

69 Co-operators Very Aggressive Portfolio 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 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 4 Versatile Asset Participants 2,099,865 1,984,155 1,668,345 1,729,701 2,020,976 Segment 5 Versatile Asset II Participants 1,912,700 2,132,080 1,599,782 1,754,950 1,930,188 Segment 6 Versatile Asset III Participants 171, ,532 72,401 63,745 63,740 Segment 8 Versatile Portfolios Participants (Back-end Load) 13,927,620 12,231,862 9,760,945 8,838,427 9,423,927 Segment 9 Versatile Portfolios Participants (No-Load) 3,652,863 3,121,145 2,182,806 2,566,236 2,747,382 Segment 11 Versatile Portfolios TFSA 857, , , , ,488 Segment 12 Versatile Portfolios Education Savings Plan 432, , , , ,633 Number of units outstanding Segment 4 Versatile Asset Participants 11,511 11,771 12,059 13,661 14,448 Segment 5 Versatile Asset II Participants 10,470 12,615 11,507 13,755 13,655 Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 77,932 73,919 71,567 70,481 67,698 Segment 9 Versatile Portfolios Participants (No-Load) 20,737 19,122 16,203 20,690 19,927 Segment 11 Versatile Portfolios TFSA 5,053 3,919 3,130 2,771 1,810 Segment 12 Versatile Portfolios Education Savings Plan 2,790 2,570 2,237 1,692 1,339 Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.87% 2.88% 2.89% 2.89% 2.82% Segment 5 Versatile Asset II Participants 3.11% 3.12% 3.18% 3.18% 3.10% Segment 6 Versatile Asset III Participants 3.34% 3.35% 3.41% 3.42% 3.31% Segment 8 Versatile Portfolios Participants (Back-end Load) 3.31% 3.31% 3.37% 3.39% 3.30% Segment 9 Versatile Portfolios Participants (No-Load) 3.45% 3.46% 3.52% 3.53% 3.45% Segment 11 Versatile Portfolios TFSA 3.44% 3.44% 3.50% 3.52% 3.46% Segment 12 Versatile Portfolios Education Savings Plan 2.94% 2.94% 3.00% 3.00% 2.92% Portfolio turnover rate (note 10) 25.23% 25.23% 89.06% 37.73% 48.18% 67

70 Co-operators Very Conservative Portfolio Underlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and Mawer Investment Management Ltd. 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 Investment in investment fund units 66,359 64,242 59,452 Net assets attributable to unitholders at beginning of year 64,076 59,304 Liabilities unitholders 2,921 (647) Current Liabilities Payables Transactions with unitholders Unitholders' contributions 7,868 9,504 Net assets attributable to unitholders 66,192 64,076 59,304 Unitholders' withdrawals (6,651) (6,117) Transfers (to) from other funds (2,022) 906 Net assets attributable to unitholders per unit Net increase (decrease) from unitholders' transactions (805) 4,293 Net assets attributable to unitholders at end of period 66,192 62,950 Statement of Comprehensive Income Statement of Cash Flows For the periods ended June (in thousands of dollars except per unit amounts) $ $ For the periods ended June (in thousands of dollars) $ $ Investment Income Distribution from underlying fund Cash flows from operating activities Expenses unitholders 2,921 (647) Management fees (note 9) Adjustments for: Audit, legal and other fees (note 9) 3 2 Realized and unrealized gains (losses) (3,258) Current liabilities Purchases (sales) of investments 1,615 (3,538) Net investment income (loss) (337) (338) Net cash from operating activities 1,445 (3,734) Gains (losses) on investments Cash flows from financing activities Realized and unrealized gains (losses) 3,258 (309) Distributions (640) (559) Proceeds from the issuance of units 7,868 10,410 unitholders Amounts paid on redemption of units (8,673) (6,117) 2,921 (647) Net cash from financing activities (1,445) 3,734 unitholders per unit Net increase (decrease) in cash (1.42) Cash at beginning of year - - Cash at end of period

71 Co-operators Very Conservative Portfolio Underlying funds managed by Addenda Capital Inc., BlackRock Asset Management Canada Limited, Fidelity Investments Canada ULC and Mawer Investment Management Ltd. Portfolio Mix As at June 30, 2014 and December 31, 2013 Investment Co-operators BlackRock Universe Bond Index Fund 29.98% 30.00% Co-operators BlackRock US Equity Index Fund 4.97% 4.98% Co-operators Canadian Equity Fund 5.04% 5.01% Co-operators Canadian Fixed Income Fund 29.97% 30.00% Co-operators Fidelity Canadian Bond Fund 19.99% 20.00% Co-operators Mawer Canadian Equity Fund 5.04% 5.02% Co-operators Mawer International Equity Fund 5.01% 4.99% % % Top Holdings of Underlying Funds (unaudited) As at June 30, 2014 Co-operators BlackRock Universe Bond Index Fund Co-operators BlackRock US Equity Index Fund Government of Canada 3.75%, % Apple Inc. 3.22% Government of Canada 4.00%, % Exxon Mobile Corporation 2.48% Government of Canada 5.00%, % Microsoft Corporation 1.80% Government of Canada 5.75%, % Johnson & Johnson 1.70% Government of Canada 3.50%, % General Electric Co. 1.51% Co-operators Canadian Equity Fund Co-operators Canadian Fixed Income Fund Toronto Dominion Bank 8.91% Province of Ontario, 4.650%, % Bank of Nova Scotia 6.07% Province of Quebec, FRN, % Suncor Energy Inc. 6.04% Canada Housing Trust, 3.350%, % Canadian Natural Resources Inc. 4.44% Canada Housing Trust, 2.050%, % Royal Bank of Canada 4.30% Government of Canada, 1.250%, % Co-operators Fidelity Canadian Bond Fund Co-operators Mawer Canadian Equity Fund Ontario Prov 2.85% 6/02/ % Toronto-Dominion Bank 5.00% Canada Housing 1.95% 06/15/ % Bank of Nova Scotia 4.57% Canada Govt 3.5% 12/01/ % Constellation Software Inc 4.46% Canada Housing 2.05% 6/ % Canadian National Railway Co 4.38% Ontario Prov 4.2% 6/2/ % Royal Bank of Canada 4.23% Co-operators Mawer International Equity Fund AON PLC 3.30% Roche Holding AG 2.91% BASF SE 2.87% BMW AG Preference Share 2.54% Smith & Nephew PLC 2.44% 69

72 Co-operators Very Conservative Portfolio 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 4 Versatile Asset Participants Segment 5 Versatile Asset II Participants Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) Segment 9 Versatile Portfolios Participants (No-Load) Segment 11 Versatile Portfolios TFSA Segment 12 Versatile Portfolios Education Savings Plan Ratios and Supplemental Data Net assets Segment 4 Versatile Asset Participants 3,300,171 3,188,812 3,608,691 3,231,662 3,434,384 Segment 5 Versatile Asset II Participants 1,492,398 1,443,173 1,549,901 1,612,031 1,750,272 Segment 6 Versatile Asset III Participants 116, , ,394 69,018 73,634 Segment 8 Versatile Portfolios Participants (Back-end Load) 37,921,422 37,708,950 35,401,267 31,398,760 26,612,075 Segment 9 Versatile Portfolios Participants (No-Load) 18,618,373 17,206,020 15,705,099 15,706,321 14,026,423 Segment 11 Versatile Portfolios TFSA 4,277,833 3,983,988 2,547,963 1,625, ,921 Segment 12 Versatile Portfolios Education Savings Plan 465, , , , ,826 Number of units outstanding Segment 4 Versatile Asset Participants 21,958 22,189 25,454 23,544 25,460 Segment 5 Versatile Asset II Participants 10,282 10,393 11,300 12,108 13,339 Segment 6 Versatile Asset III Participants Segment 8 Versatile Portfolios Participants (Back-end Load) 264, , , , ,075 Segment 9 Versatile Portfolios Participants (No-Load) 131, , , , ,576 Segment 11 Versatile Portfolios TFSA 33,972 33,015 21,308 13,956 8,059 Segment 12 Versatile Portfolios Education Savings Plan 3,775 3,534 3,320 2,868 1,531 Management expense ratio (note 9) Segment 4 Versatile Asset Participants 2.65% 2.66% 2.67% 2.67% 2.60% Segment 5 Versatile Asset II Participants 2.78% 2.78% 2.94% 2.96% 2.88% Segment 6 Versatile Asset III Participants 3.01% 3.02% 3.18% 3.19% 3.09% Segment 8 Versatile Portfolios Participants (Back-end Load) 2.98% 2.98% 3.14% 3.16% 3.08% Segment 9 Versatile Portfolios Participants (No-Load) 3.13% 3.13% 3.30% 3.31% 3.24% Segment 11 Versatile Portfolios TFSA 3.11% 3.11% 3.27% 3.30% 3.24% Segment 12 Versatile Portfolios Education Savings Plan 2.60% 2.61% 2.77% 2.78% 2.70% Portfolio turnover rate (note 10) 64.99% 64.99% % 82.12% 78.43% 70

73 Notes to the Financial Statements 1. Description of the funds The Pooled Fund Accounts (the Funds) are established as segregated funds by Co-operators Life Insurance Company (the Company) in accordance with Section 451 of the Insurance Companies Act (Canada). The Company is the sole issuer of the individual variable insurance contracts providing for investment in each Fund. The assets of the Funds are owned by the Company and are segregated from other assets. The Funds themselves are not separate legal entities. The Company is domiciled in Canada and the address of the Company s registered office is 1920 College Avenue, Regina, Saskatchewan. The Company s common shares are 100% owned by Co-operators Financial Services Limited (CFSL), which in turn is owned 100% by the Co-operators Group Limited (CGL). Segregated funds consist of a specified group of assets that are segregated from the other assets of the Company. The fair value of these assets determines the aggregate liability of the Company in respect of the arrangements it supports. Segments of the Funds represent various options available to the unitholders with separate terms and assets notionally separated for valuation purposes. The segments represented in these financial statements are as follows: Segment 1- Group Retirement Products - unitholders are groups that are provided a full service plan, including investment management and full administrative services. Segment 2 - Seed Money - sole unitholder is the Company which provides seed capital upon the inception of new funds. Segment 3 - Group Retirement Products - unitholders are groups that are provided investment management services only. Segment 4 - Versatile Asset Participants - unitholders are individual contractholders. Segment 5 - Versatile Asset II Participants - unitholders are individual contractholders. Segment 6 - Versatile Asset III Participants - unitholders are individual contractholders. Segment 7 - Versatile Asset IV Participants - unitholders are individual contractholders. Segment 8 - Versatile Portfolios Participants - unitholders are individual contractholders of an individual variable insurance contract with a back-end load option. Segment 9 - Versatile Portfolios Participants - unitholders are individual contractholders of an individual variable insurance contract with a no-load option. Segment 10 - Co-operators Group Retirement Income Product unitholders are retired employees of the Company. Segment 11 - Versatile Portfolios Tax Free Savings Account unitholders are individual contractholders of an individual variable insurance contract. Segment 12 - Versatile Portfolios Education Savings Plan unitholders are individual contractholders of an individual variable insurance contract. The Funds are open-ended with the value of the assets held in each Fund described for reporting purposes by reference to notional units (units) of the Fund. Such units represent simply a means of measuring the liability of the Company to the unitholder in respect of the Fund. Transactions with unitholders occur at the notional net asset value per unit. The Funds statements include two types of funds. The asset based funds directly hold investment assets which include cash, short-term notes, bonds and debentures, and stocks. The fund of funds are segregated funds which invest entirely in units of one or more underlying funds. Contributions, withdrawals and transfers from or to the unitholders between funds are used to acquire or redeem units in the Funds. The unit value is determined by dividing the market value of the fund, reduced by applicable fees and expenses, by the total number of units outstanding in the Funds. The investment portfolios within each fund are professionally managed by: Addenda Capital Inc. (Addenda) BlackRock Asset Management Canada Limited Fidelity Investments Canada ULC Franklin Templeton Investments Mawer Investment Management Ltd. NEI Investments All fund managers are independent of the Company with the exception of Addenda, a significantly-controlled subsidiary of Co-operators Financial Services Limited (CFSL). 71

74 Notes to the Financial Statements 2. Fund of funds Fund of funds are segregated funds that invest solely in underlying segregated funds, underlying pooled funds or underlying mutual funds. Each fund of funds has a target portfolio mix of underlying funds. As each underlying fund moves separately in the market, the portfolio mix will shift due to market changes. On a weekly basis, units of the underlying funds are bought or sold to bring the fund back to its target portfolio mix. These actions are shown as Fund of funds rebalancing on the Statement of Changes in Net Assets. As the fund of funds assets are invested in underlying funds, the fund of funds pay their portion of the management fees and operating expenses of the underlying fund. All such charges are included in the management expense ratio of the fund of funds. 3. Basis of preparation and statement of compliance These interim condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. These are the Funds first interim condensed consolidated financial statements for part of the period covered by the first annual International Financial Reporting Standards (IFRS) financial statements and IFRS 1 First-time Adoption of International Financial Reporting Standards has been applied. These financial statements do not include all of the information and disclosures required for full annual financial statements. References to IFRS are based on Canadian Generally Accepted Accounting Principles (GAAP) for publicly accountable enterprises as set out in Part 1 of the Chartered Professional Accountants (CPA) Canada Handbook - Accounting. Part 1 of the CPA Canada Handbook - Accounting incorporates IFRS as issued by the International Accounting Standards Board (IASB). The financial statements as at and for the year ended December 31, 2013 were prepared based on the previously issued Canadian GAAP. References to previously issued Canadian GAAP refer to Canadian GAAP prior to the adoption of IFRS. The transition to IFRS as of January 1, 2013 (the Transition Date) has not affected the Fund s financial position or results of operations. The Funds have consistently applied the same accounting policies in the opening IFRS statements of financial position at the Transition Date and throughout all periods presented as if these policies had always been in effect. The only voluntary exemption adopted by the Funds upon transition was the ability to designate a financial asset or financial liability at fair value through profit and loss (FVTPL) upon transition to IFRS. All financial assets designated at FVTPL upon transition were previously carried at fair value under Canadian GAAP as required by Accounting Guideline 18, Investment Companies. There were no measurement differences between IFRS and previously issued Canadian GAAP therefore Net assets attributable to contractholders and Net increase (decrease) in net assets attributable to contractholders are the same as reported under previously issued Canadian GAAP. Under previously issued Canadian GAAP, the Funds were exempt from providing a statement of cash flows. IAS 1 Presentation of financial statements requires that a complete set of financial statements include a statement of cash flows for the current and comparative periods, without exception. Under previously issued Canadian GAAP, the Fund accounted for its redeemable units as equity. Under IFRS, IAS 32 Financial instruments: recognition and measurement requires that units or shares of an entity which include a contractual obligation for the issuer to repurchase or redeem them for cash or another financial asset be classified as financial liability. The Funds units do not meet the criteria in IAS 32 for classification as equity and therefore, have been reclassified as financial liabilities on transition to IFRS. 72

75 Notes to the Financial Statements 3. Summary of significant accounting policies (continued) Valuation of investments Under IFRS, the Fund measures the fair values of its investments using the guidance in IFRS 13 Fair Value Measurement which requires that if an asset or a liability has a bid price and an ask price, then its fair value is to be based on a price within the bid-ask spread that is most representative of fair value. It also allows the use of mid-market pricing or other pricing conventions that are used by market participants as a practical expedient for fair value measurements within a bid-ask spread. Consistent with industry practice, the Funds use bid price to determine the unit value used for purchase and redemption of units. A reconciliation of the trading net asset value and GAAP net asset value as stated in the financial statements has been provided in Note 5. Asset based funds Investments are designated as fair value through profit or loss in accordance with IAS 39 Financial Instruments: Recognition and Measurement, and therefore, are recorded at fair value. The fair value of investments traded in active markets is based on quoted market prices at the close of trading on the reporting date. The quoted market price used for investments held by the pooled investment funds is the current bid price. The fair value of investments that are not traded in an active market is determined by using various valuation techniques. Short-term notes are valued at cost. The cost of short-term notes together with accrued interest approximates their fair value. Bonds and debentures are valued at their fair value based on the closing bid price from available public quotations of recognized dealers. Stocks are valued at their closing bid market value based on major securities exchange listings. There are no assets that are valued by other than quoted values. Fund of funds Investments in underlying funds are carried at the quoted market value of the units of the underlying funds held. Receivables and Other financial liabilities carried at amortized cost The Funds have adopted Investment Entities, the amendment to IFRS 10, IFRS 12, and IAS 27, for the annual period beginning January 1, The amendments define an investment entity and introduce an exception to consolidating particular subsidiaries for investment entities. The Funds have applied the exception to consolidation by accounting for its investments in underlying funds at fair value through profit or loss. contractholders per unit The increase (decrease) in net assets attributable to contractholders per unit is calculated by dividing the increase (decrease) in net assets attributable to contractholders by the weighted average number of units outstanding during the period. Refer to Note 13 for the calculation. Foreign currency Monetary assets and liabilities in foreign currencies are translated into Canadian dollars at the closing rate of exchange on the valuation date. Purchases and sales of investments, income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions. Investment transactions and income recognition Investment transactions are accounted for on the trade date, and realized gains and losses from such transactions are calculated on an average cost basis. Unrealized gains and losses are calculated by the change in fair value compared to the change in average cost. Dividend income is recorded on the ex-dividend date. Interest income is recognized pro rata over the term of the investment net of the amortization of the premium or discount. Earnings The earnings of each segregated fund are re-invested in the Fund, and result in higher unit values. 73

76 Notes to the Financial Statements 3. Summary of significant accounting policies (continued) Transaction costs Brokerage commissions incurred in the purchase or sale of investments in the Funds are included in transaction costs and are expensed in the period incurred. Funds that invest only in units of an underlying investment fund are not subject to transaction costs. Tax status The Funds are deemed to be inter-vivos trusts under the provisions of the Income Tax Act (Canada). Income of a segregated fund is deemed to be payable to the unitholders and therefore the segregated funds will not have taxable income. In addition, capital gains and losses are deemed to be those of the unitholders and not of the Funds. Realized gains or losses may be reduced by the amount of gains or losses realized by unitholders on the redemption of their investments. As a result, no provision for income tax is required in the financial statements of the Funds. Use of estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. The fair value of investments is a financial statement component subject to management judgement and estimates. Actual results could differ from these estimates. Changes in estimates are recorded in the accounting period in which they are determined. 4. Future changes in accounting policies IFRS 7 Financial Instruments: Disclosures IFRS 7 was amended in December 2011 to require additional financial instrument disclosures upon transition from IAS 39 to IFRS 9. The amendments are effective upon adoption of IFRS 9, which was finalized in July 2014 and is effective for annual periods beginning on or after January 1, Early adoption of these amendments is permitted where IFRS 9 is also early adopted. The Funds have not yet assessed the impact of this amended standard. IFRS 9 Financial Instruments IFRS 9 is a three part standard aimed at reducing complexity in reporting financial instruments by replacing the different rules in IAS 39 Financial Instruments: Recognition and Measurement. The project has been divided into three phases: Phase 1 Classification and measurement, Phase 2 Impairment and Phase 3 Hedge accounting. Phase 1 was issued in November 2009 and amended in October It requires financial assets to be recorded at amortized cost or fair value depending on the entity s business model for managing the assets and their associated cash flow characteristics. All financial assets are to be measured at fair value on the balance sheet if they are not measured at amortized cost. At initial recognition, an entity may irrevocably designate a financial asset as measured at fair value through profit or loss (FVTPL) if doing so eliminates or significantly reduces a measurement recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases. Phase 2 was completed in July 2014 and introduced a new expected loss impairment methodology that will result in more timely recognition of impairment losses. Phase 3 was completed in November This phase replaces the rule-based hedge accounting requirements in IAS 39 to more closely align the accounting with risk management activities. The complete standard was issued by the IASB in July 2014, and is effective for annual periods beginning on or after January 1, Early application is permitted. The Funds have not yet assessed the impact of this standard. 74

77 Notes to the Financial Statements 5. Reconciliation of trading net asset value to GAAP net asset value The difference between trading net asset value used for unitholder valuations and GAAP net asset value reflected in the financial statements is as follows (in thousands of dollars, except per unit figures): Net assets per unit as at June Net assets as at June 30, , 2014 Trading Section GAAP Trading GAAP net asset 3855 net asset net asset net asset value adjustment value value value Co-operators Balanced Fund $ 116,174 $ (201) $ 115,973 $ $ Co-operators Canadian Equity Fund 125,699 (335) 125, Co-operators Canadian Fixed Income Fund 123,287 (150) 123, Co-operators Canadian Resource Fund 32,554 (122) 32, Co-operators Money Market Fund 8,522 (0) 8, Co-operators U.S. Equity Fund 22,683 (3) 22, Co-operators U.S. Growth Fund Net assets per unit as at Net assets as at December 31, 2013 December 31, 2013 Trading Section GAAP Trading GAAP net asset 3855 net asset net asset net asset value adjustment value value value Co-operators Balanced Fund $ 106,269 $ (100) $ 106,169 $ $ Co-operators Canadian Equity Fund 118,306 (112) 118, Co-operators Canadian Fixed Income Fund 118,609 (149) 118, Co-operators Canadian Resource Fund 28,866 (43) 28, Co-operators Money Market Fund 9,368 (1) 9, Co-operators U.S. Equity Fund 20,381 (2) 20, Co-operators U.S. Growth Fund Net assets per unit as at January Net assets as at January 1, , 2013 Trading Section GAAP Trading GAAP net asset 3855 net asset net asset net asset value adjustment value value value Co-operators Balanced Fund $ 127,566 $ (178) $ 127,388 $ $ Co-operators Canadian Equity Fund 108,003 (215) 107, Co-operators Canadian Fixed Income Fund 116,711 (140) 116, Co-operators Canadian Resource Fund 32,474 (84) 32, Co-operators Money Market Fund 8,254 (1) 8, Co-operators U.S. Equity Fund 11, , Co-operators U.S. Growth Fund Financial risk management There are several types of risk to which a segregated fund or an underlying fund may be subject. These include credit risk, market risk and liquidity risk. The Company sets the risk management policy for those funds managed by Addenda. A segregated fund which invests in the units of an underlying fund will be subject to the same investment risks as the underlying fund. Risks for funds managed by other than Addenda will be subject to the risk management policy of the fund manager of the underlying fund. To understand those risks and how they are managed, unitholders should consult the financial statements of those underlying funds. The Funds are also exposed to operational risks such as custody risk. Custody risk is the risk of loss of securities held in custody occasioned by the insolvency or negligence of the custodian. Although an appropriate legal framework is in place that eliminates the risk of loss of value of the securities held by the custodian, in the event of its failure, the ability of the Fund to transfer the securities might be temporarily impaired. 75

78 Notes to the Financial Statements 6. Financial risk management (continued) The risk management policy for Addenda is outlined below. To minimize exposure to financial risk, the following investments and practices are prohibited: a) Short sales; b) Margin trading; c) Commodities; d) Lending money, except in connection with the acquisition of publicly distributed bonds, debentures or other corporate or government obligations; and e) Use of derivatives for speculation. Credit risk Credit risk refers to the risk of financial loss from the failure of a counterparty/debtor to honour its obligation to the Funds. The Funds are exposed to credit risk principally through investments in fixed income securities. There is an increased chance of credit risk when there is a concentration of investments made in entities in similar industry sectors, in the same geographical area or within a single entity. The investment policy manages credit risk on the bond portfolio by setting portfolio limits for composition, issuer type, bond quality, single issuer, corporate sector, and general guidelines for geographic exposure. The bond portfolio remains very high quality. The percentage of bonds rated A or better are: June 30, December 31, January 1, Co-operators Balanced Fund 90.6% 90.3% 90.1% Co-operators Canadian Fixed Income Fund 91.0% 90.9% 91.1% Short-term securities are only purchased from an approved list of investments within single issuer and quality limits (R- 1 by Dominion Bond Rating Service). Bonds, debentures, notes and mortgage-backed securities are eligible to be purchased in the Canadian bond portfolio. Units or warrants are eligible only if they convert to any of the items mentioned above. There is no limit for Canadian bonds rated BBB or better, Canadian bonds rated BB or lower are not purchased unless they are convertible to the above mentioned items. The bond investments in the securities of one issuer will not be more than 10% of the total fair value of the fund unless guaranteed by the Government of Canada or one of the provinces of Canada. U.S. bonds, debentures and notes are eligible to be purchased if rated A or better by Moody s Investor Service or Standard & Poor s. Credit risk is also minimized through the use of guarantees. The guarantor will provide the investor with the applicable investment return, per the agreement. There is, however, still a risk that the guarantor will not be able to fulfill the guarantee. The Company s credit risk exposure is the carrying value of the invested assets. Investments in Canadian equities will only be made in shares which are publicly traded on a prescribed Canadian stock exchange, relatively liquid, and for which material information is attainable. Convertibles, warrants, rights, receipts or units are allowed to be purchased as long as the underlying security is stocks. Investments in U. S. equities will be in shares listed on the New York Stock Exchange (NYSE), American Stock Exchange (AMEX) or National Association of Securities Dealers Automated Quotation System (NASDAQ). Convertibles, warrants, rights, receipts or units will be allowed to be purchased as long as the underlying security is a qualified stock. Investments in Global equities will be in shares listed on stock exchanges anywhere in the world. This primarily includes, but is not limited to the Toronto Stock Exchange (TSX), NYSE, NASDAQ, AMEX, Frankfurt Stock Exchange, London Stock Exchange, Paris Stock Exchange, Tokyo Stock Exchange, and Singapore Stock Exchange. Convertibles, warrants, rights, receipts or units will be allowed to be purchased as long as the underlying security is a qualified stock. A single stock investment will not be more than 10% of the fair value of all stocks held by the Fund and no more than 10% of any class of the outstanding voting securities of a single issuer may be acquired. The Funds may use derivatives, such as options, forwards, and futures to hedge against potential loss. The Funds may also use derivatives for non-hedging purposes in order to invest indirectly in securities or financial markets, to gain exposure to other currencies and to provide protection for the Funds assets. Any use of derivatives will be consistent with the investment objectives of the Funds and will comply with Canadian securities regulations. The Funds will not use derivatives for speculation. These practices are put in place to minimize the Funds exposure to risk due to: the risk that changes in the value of a hedging instrument will not match those of the investment being hedged; a market may not exist when the Funds want to close out their position in a derivative; the Funds could experience a loss if the other party to a derivative is unable to fulfil its obligations and the Funds could experience a loss if they have an open position in certain derivatives with a dealer who goes bankrupt. 76

79 Notes to the Financial Statements 6. Financial risk management (continued) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk is comprised of three types of risks: a) Equity Risk Equity risk is where fluctuations in the value of equity securities affects the level and timing of recognition of gains and losses on securities held, and causes changes in realized and unrealized gains and losses. Historically, stock fair values have produced gains and losses over the short-term, but well diversified portfolios have gained in aggregate value over the long term. The following table represents the fair value of stocks, the percentage of the fair value of stocks in total investments, and the estimated effect on net assets of a 10% movement in stock markets with all other variables held constant (in thousands of dollars): Fair value Percentage of total investments Effect of 10% movement on net assets June 30, June 30, June 30, Co-operators Balanced Fund $ 71, % $ 7,171 Co-operators Canadian Equity Fund 125, % 12,502 Co-operators Canadian Resource Fund 32, % 3,237 Co-operators U.S. Equity Fund 22, % 2,242 Co-operators U.S. Growth Fund Fair value Percentage of total investments Effect of 10% movement on net assets December 31, December 31, December 31, Co-operators Balanced Fund $ 64, % $ 6,463 Co-operators Canadian Equity Fund 115, % 11,589 Co-operators Canadian Resource Fund 28, % 2,813 Co-operators U.S. Equity Fund 20, % 2,031 Co-operators U.S. Growth Fund % 73 Fair value Percentage of total investments Effect of 10% movement on net assets January 1, January 1, January 1, Co-operators Balanced Fund $ 78, % $ 7,860 Co-operators Canadian Equity Fund 105, % 10,546 Co-operators Canadian Resource Fund 31, % 3,180 Co-operators U.S. Equity Fund 10, % 1,086 Co-operators U.S. Growth Fund % 69 b) Foreign Exchange Risk Foreign exchange risk represents the risk that the Funds incur losses due to exposure to foreign currency fluctuations. The Funds foreign exchange risk is related to its stock holdings. A 10% change in the value of the United States dollar would affect the net assets by (in thousands of dollars): June 30, December 31, January 1, Co-operators Balanced Fund $ 1,667 $ 1,589 $ 1,814 Co-operators U.S. Equity Fund 2,242 2,031 1,086 Co-operators U.S. Growth Fund

80 Notes to the Financial Statements 6. Financial risk management (continued) c) Interest Rate Risk Interest rate risk is the potential for financial loss arising from changes in interest rates. This risk arises when the asset cash flows do not coincide with the cash flows arising from the liabilities, as this may result in the need to either sell assets to meet portfolio payments and expenses or reinvest excess asset cash flows under unfavorable interest environments. The value of a fund that invests in fixed income securities, such as bonds, treasury bills and commercial paper, is directly affected by changes in the general level of interest rates. As interest rates increase, the price of these types of securities tends to fall. Conversely, if interest rates fall, the price of fixed income securities increases. As a result, funds that invest in certain fixed income securities can experience gains or losses during periods of changing interest rates. Many kinds of fixed income securities have prepayment terms which allow the issuer to repay the principal prior to maturity. During periods of falling interest rates, the Funds may be compelled to unexpectedly reinvest in securities with lower interest rates. The impact on the net assets of the Funds from a 1% move in interest rate would be (in thousands of dollars): June 30, December 31, January 1, Co-operators Balanced Fund $ 2,660 $ 2,473 $ 3,300 Co-operators Canadian Fixed Income Fund 7,983 7,534 8,091 Co-operators Money Market Fund The following tables represents the exposure to debt instruments by maturity date (in thousands of dollars): June 30, 2014 Less than 1 year 1-3 years 4-5 years 6-10 years Greater than 10 years Co-operators Balanced Fund $ 4,852 $ 10,415 $ 8,282 $ 9,587 $ 10,683 Co-operators Canadian Equity Fund Co-operators Canadian Fixed Income Fund 6,760 29,276 26,544 28,005 32,039 Co-operators Canadian Resource Fund Co-operators Money Market Fund 6, December 31, 2013 Less than 1 year 1-3 years 4-5 years 6-10 years Greater than 10 years Co-operators Balanced Fund $ 5,931 $ 7,725 $ 8,189 $ 8,658 $ 10,852 Co-operators Canadian Equity Fund 2, Co-operators Canadian Fixed Income Fund 13,252 23,020 24,444 23,202 33,988 Co-operators Canadian Resource Fund Co-operators Money Market Fund 9, January 1, 2013 Less than 1 year 1-3 years 4-5 years 6-10 years Greater than 10 years Co-operators Balanced Fund $ 3,635 $ 9,540 $ 7,788 $ 13,487 $ 14,085 Co-operators Canadian Equity Fund 2, Co-operators Canadian Fixed Income Fund 5,852 26,769 17,760 31,204 35,001 Co-operators Canadian Resource Fund Co-operators Money Market Fund 8, Liquidity risk Liquidity risk is the risk of having insufficient cash resources to meet financial obligations without raising funds at unfavourable rates or selling assets on a forced basis. The Funds are exposed to liquidity risk due to the possibility of daily cash redemptions of units, redemption of units in an illiquid market and the risk of fund managers not having the liquidity for payout. The Funds mitigate this risk by investing in liquid investments that are traded in an active market and can be readily disposed. All financial liabilities mature in less than three months. 78

81 Notes to the Financial Statements 7. Related party transactions The Company provided capital to seed these funds at inception. The number of units held by the Company in the Funds is as follows: June 30, December 31, January 1, Co-operators Bissett Canadian Dividend Fund Co-operators Ethical Balanced Fund Co-operators Ethical Canadian Equity Fund Co-operators Ethical International Equity Fund Co-operators Ethical Select Balanced Portfolio Co-operators Ethical Select Growth Portfolio Co-operators Ethical Select Conservative Portfolio Co-operators Ethical Select Income Portfolio Co-operators Mawer Balanced Fund 1,000 1,000 1,000 Co-operators Mawer Canadian Equity Fund 1,000 1,000 1,000 Co-operators Mawer International Equity Fund 1,000 1,000 1,000 The Company ensures the daily administration of the Funds and provides the Funds, or ensures the Funds are provided, with all services required to function properly. The Funds paid the Company for management services which are in the normal course of operations and are established at terms and conditions using available market information as follows (in thousands of dollars): June 2014 June 2013 Paid Payable Paid Payable Co-operators Balanced Fund $ 988 $ 170 $ 752 $ 136 Co-operators Canadian Equity Fund 1, , Co-operators Canadian Fixed Income Fund 1, , Co-operators Canadian Resource Fund Co-operators Money Market Fund Co-operators U.S. Equity Fund Co-opeartors U.S. Growth Fund $ 4,758 $ 833 $ 3,588 $ Trading net asset value per unit The trading net asset value is calculated for each segment by dividing the trading net asset value by the number of units outstanding. The trading net asset value per unit is determined as of the close of each business day. The units of the funds are sold and redeemable at the current trading net asset value per unit at the option of the unitholder. 9. Management expense ratio Each fund is responsible for the payment of all third party expenses relating to its operations, including but not limited to, legal, accounting, audit, trustee, custodial fees and costs of regulatory documentation. Management fees cover the charges incurred by the Funds for the investment and administration of the segregated funds, and are calculated based on the net asset value of the segregated funds. The management expense ratio is calculated by dividing all fees, charges and other expenses paid or payable by the segregated fund (plus taxes), during the financial year by the average net asset value of the segregated fund. Management Expense Ratios are calculated for Individual Retirement and Investment Services only. 10. Portfolio turnover rate 79 The Fund s portfolio turnover rate indicates how actively the Fund s portfolio advisor manages its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the year. The higher a fund s portfolio turnover rate in a year, the greater the trading costs payable by the fund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of a fund. The portfolio turnover rate is disclosed in the first full year after the underlying fund s inception. The company may not have a fiscal year end of December 31, therefore the reported portfolio rates are not necessarily as at December 31. The portfolio turnover ratio is not required to be disclosed for money market funds.

82 Notes to the Financial Statements 11. Commencement and termination of funds Effective June 13, 2013, the following Fund names were changed: Co-operators Ethical Canadian Dividend Fund was renamed Co-operators Ethical Canadian Equity Fund. Co-operators Ethical Select Canadian Balanced Portfolio was renamed Co-operators Ethical Select Balanced Portfolio. Co-operators Ethical Select Canadian Growth Portfolio was renamed Co-operators Ethical Select Growth Portfolio. During the second quarter of 2014, the following funds ceased operations: Co-operators AGF Clean Environment Equity Fund Co-operators AGF Social Values Balanced Fund Co-operators AGF Social Values Equity Fund Co-operators U.S. Growth Fund As of the fourth quarter of 2012, these funds no longer held individual variable insurance contract investments. 12. Fair value estimation The Fund is responsible for determining the fair value of its investment portfolio by utilizing market-driven measurements obtained from active markets where available, by considering other observable and unobservable inputs and by employing valuation techniques that make use of current market data. Assets and liabilities recorded at fair value in the statement of net assets are measured and classified in a hierarchy consisting of three levels for disclosure purposes. The three levels are based on the significance and reliability of the inputs to the respective valuation techniques. The input levels are defined as follows: Level 1 - Quoted prices Level 1 Quoted prices represents unadjusted quoted prices for identical instruments exchanged in active markets. The fair value is determined based on quoted prices in active markets obtained from external pricing sources. The investments classified within Level 1 are valued at the bid price recorded by the securities exchanges on which such investments are principally traded at the financial reporting date. Securities not traded on the valuation date are valued at the last recorded bid price used on the previous valuation day if the former is not available. Assets measured at fair value and classified as Level 1 include cash and cash equivalents and stocks. Level 2 - Significant other observable inputs Level 2 Significant other observable inputs includes directly or indirectly observable inputs other than quoted prices for identical instruments exchanged in active markets. These inputs include quoted prices for similar instruments exchanged in active markets; quoted prices for identical or similar instruments exchanged in inactive markets; inputs other than quoted prices that are observable for the instruments, such as interest rates and yield curves, volatilities, prepayment spreads, loss severities, credit risks and default rates where available; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Investment funds classified in Level 2 were fair valued using the net asset value of the investment fund, as reported by the respective investee fund administrator. For these investment funds management believes the Fund could have redeemed its investment at the net asset value per unit at the financial statement date. Assets measured at fair value and classified as Level 2 include short-term notes, bonds, foreign equities, and other investments. Level 3 - Significant unobservable inputs Level 3 Significant unobservable inputs includes inputs that are not based on observable market data. Management is required to use its own assumptions regarding unobservable inputs as there is little, if any, market activity in these assets or liabilities or related observable inputs that can be corroborated at the measurement date. Unobservable inputs require significant management judgement or estimation to make certain projections and assumptions about the information that would be used by market participants in pricing assets or liabilities. To verify pricing, the Company assesses the reasonability of the fair values by comparing to industry accepted valuation models, to movements in credit spreads and to recent transaction prices for similar assets where available. The Funds did not hold any investments classified within Level 3 during the period ended June 30, 2014 (December 31, $nil, January 1, 2013 nil). 80

83 Notes to the Financial Statements 12. Fair value estimation (continued) The following table summarizes the inputs used in valuing the Fund s investments at fair value as at: June 30, 2014 Level 1 Level 2 Level 3 Fair Value Total Co-operators Balanced Fund Cash and cash equivalents $ 155 $ - $ - $ 155 Short-term notes - 3,065-3,065 Bonds and debentures - 40,754-40,754 Stocks 55,042 16,673-71,715 $ 55,197 $ 60,492 $ - $ 115,689 Co-operators Canadian Equity Fund Cash and cash equivalents $ 18 $ - $ - $ 18 Short-term notes Stocks 125, ,023 $ 125,041 $ 289 $ - $ 125,330 Co-operators Canadian Fixed Income Fund Cash and cash equivalents $ 30 $ - $ - $ 30 Short-term notes - 2,013-2,013 Bonds and debentures - 120, ,611 $ 30 $ 122,624 $ - $ 122,654 Co-operators Canadian Resource Fund Cash and cash equivalents $ 16 $ - $ - $ 16 Short-term notes Stocks 32, ,373 $ 32,389 $ 60 $ - $ 32,449 Co-operators Money Market Fund Cash and cash equivalents $ 6 $ - $ - $ 6 Short-term notes - 6,228-6,228 Bonds and debentures - 2,262-2,262 $ 6 $ 8,490 $ - $ 8,496 Co-operators U.S. Equity Fund Cash and cash equivalents $ 288 $ - $ - $ 288 Stocks - 22,421-22,421 $ 288 $ 22,421 $ - $ 22,709 Co-opeartors U.S. Growth Fund Cash and cash equivalents $ - $ - $ - $ - Stocks $ - $ - $ - $ - 81

84 Notes to the Financial Statements 12. Fair value estimation (continued) December 31, 2013 Level 1 Level 2 Level 3 Fair Value Total Co-operators Balanced Fund Cash and cash equivalents $ 16 $ - $ - $ 16 Short-term notes - 3,359-3,359 Bonds and debentures - 37,996-37,996 Stocks 48,743 15,892-64,635 $ 48,759 $ 57,247 $ - $ 106,006 Co-operators Canadian Equity Fund Cash and cash equivalents $ 77 $ - $ - $ 77 Short-term notes - 2,231-2,231 Stocks 115, ,893 $ 115,970 $ 2,231 $ - $ 118,201 Co-operators Canadian Fixed Income Fund Cash and cash equivalents $ 80 $ - $ - $ 80 Short-term notes - 3,301-3,301 Bonds and debentures - 114, ,605 $ 80 $ 117,906 $ - $ 117,986 Co-operators Canadian Resource Fund Cash and cash equivalents $ 16 $ - $ - $ 16 Short-term notes Stocks 28, ,133 $ 28,149 $ 662 $ - $ 28,811 Co-operators Money Market Fund Cash and cash equivalents $ 11 $ - $ - $ 11 Short-term notes - 4,775-4,775 Bonds and debentures - 4,558-4,558 $ 11 $ 9,333 $ - $ 9,344 Co-operators U.S. Equity Fund Cash and cash equivalents $ 92 $ - $ - $ 92 Stocks - 20,306-20,306 $ 92 $ 20,306 $ - $ 20,398 Co-opeartors U.S. Growth Fund Cash and cash equivalents $ 14 $ - $ - $ 14 Stocks $ 14 $ 728 $ - $

85 Notes to the Financial Statements 12. Fair value estimation (continued) January 1, 2013 Level 1 Level 2 Level 3 Fair Value Total Co-operators Balanced Fund Cash and cash equivalents $ 165 $ - $ - $ 165 Short-term notes - 1,345-1,345 Bonds and debentures - 47,190-47,190 Stocks 60,462 18,139-78,601 $ 60,627 $ 66,674 $ - $ 127,301 Co-operators Canadian Equity Fund Cash and cash equivalents $ 15 $ - $ - $ 15 Short-term notes - 2,256-2,256 Stocks 105, ,462 $ 105,477 $ 2,256 $ - $ 107,733 Co-operators Canadian Fixed Income Fund Cash and cash equivalents $ 12 $ 1, $ - $ 1,521 Short-term notes - 115, ,078 Bonds and debentures $ 12 $ 116,587 $ - $ 116,599 Co-operators Canadian Resource Fund Cash and cash equivalents $ 63 $ - $ - $ 63 Short-term notes Stocks 31, ,802 $ 31,865 $ 528 $ - $ 32,393 Co-operators Money Market Fund Cash and cash equivalents $ 7 $ - $ - $ 7 Short-term notes - 4,918-4,918 Bonds and debentures - 3,307-3,307 $ 7 $ 8,225 $ - $ 8,232 Co-operators U.S. Equity Fund Cash and cash equivalents $ 673 $ - $ - $ 673 Stocks - 10,862-10,862 $ 673 $ 10,862 $ - $ 11,535 Co-opeartors U.S. Growth Fund Cash and cash equivalents $ (479) $ - $ - $ (479) Stocks $ (479) $ 688 $ - $ 209 All Fund of funds investment in investment funds units have been classified as Level 2. During the period ended June 30, 2014, there were no financial assets transferred between Level 1, Level 2 or Level 3 (December 31, $nil, January 1, 2013 nil). 83

86 Notes to the Financial Statements 13. unitholders per unit and per series The increase (decrease) in net assets attributable to unitholders per unit is calculated as follows: June June Co-operators Balanced Fund unitholders $ 7,977 $ 2,722 Weighted average units outstanding during the period unitholders per unit $ $ 5.45 Co-operators Canadian Equity Fund unitholders $ 12,695 $ (447) Weighted average units outstanding during the period unitholders per unit $ $ (0.79) Co-operators Canadian Fixed Income Fund unitholders $ 4,258 $ (3,461) Weighted average units outstanding during the period unitholders per unit $ 4.99 $ (4.25) Co-operators Canadian Resource Fund unitholders $ 4,908 $ (3,433) Weighted average units outstanding during the period unitholders per unit $ $ (25.62) Co-operators Money Market Fund unitholders $ 1 $ (2) Weighted average units outstanding during the period unitholders per unit $ 0.01 $ (0.03) Co-operators U.S. Equity Fund unitholders $ 898 $ 2,276 Weighted average units outstanding during the period unitholders per unit $ 5.95 $ Co-operators U.S. Growth Fund unitholders $ 26 $ 106 Weighted average units outstanding during the period 4 8 unitholders per unit $ 6.50 $ Co-operators Bissett Canadian Dividend Fund unitholders $ 1,060 $ (109) Weighted average units outstanding during the period unitholders per unit $ 4.88 $ (2.27) Co-operators Ethical Balanced Fund unitholders $ 40 $ (19) Weighted average units outstanding during the period 7 8 unitholders per unit $ 5.71 $ (2.38) Co-operators Ethical Canadian Equity Fund unitholders $ 81 $ 25 Weighted average units outstanding during the period 10 5 unitholders per unit $ 8.10 $

87 Notes to the Financial Statements 13. unitholders per unit and per series (continued) June June Co-operators Ethical International Equity Fund unitholders $ 7 $ 10 Weighted average units outstanding during the period 2 2 unitholders per unit $ 3.50 $ 5.00 Co-operators Ethical Select Balanced Portfolio unitholders $ 210 $ 105 Weighted average units outstanding during the period unitholders per unit $ 5.83 $ 3.18 Co-operators Ethical Select Growth Portfolio unitholders $ 86 $ 52 Weighted average units outstanding during the period unitholders per unit $ 6.14 $ 4.73 Co-operators Ethical Select Conservative Portfolio unitholders $ 33 $ (3) Weighted average units outstanding during the period 7 2 unitholders per unit $ 4.71 $ (1.50) Co-operators Ethical Select Income Portfolio unitholders $ 35 $ (4) Weighted average units outstanding during the period 11 7 unitholders per unit $ 3.18 $ (0.57) Co-operators Fidelity Canadian Bond Fund unitholders $ 977 $ (703) Weighted average units outstanding during the period unitholders per unit $ 5.06 $ (3.78) Co-operators Fidelity Global Fund unitholders $ 405 $ 906 Weighted average units outstanding during the period unitholders per unit $ 4.18 $ 9.96 Co-operators Fidelity True North Fund unitholders $ 3,212 $ 2,551 Weighted average units outstanding during the period unitholders per unit $ $ Co-operators Mawer Balanced Fund unitholders $ 869 $ 129 Weighted average units outstanding during the period unitholders per unit $ 7.24 $ 2.74 Co-operators Mawer Canadian Equity Fund unitholders $ 4,297 $ 2,061 Weighted average units outstanding during the period unitholders per unit $ $

88 Notes to the Financial Statements 13. unitholders per unit and per series (continued) June June Co-operators Mawer International Equity Fund unitholders $ 2,797 $ 1,816 Weighted average units outstanding during the period unitholders per unit $ 7.28 $ 5.97 Co-operators Aggressive Balanced Fund unitholders $ 1,370 $ 307 Weighted average units outstanding during the period unitholders per unit $ $ 2.50 Co-operators Conservative Balanced Fund unitholders $ 517 $ 68 Weighted average units outstanding during the period unitholders per unit $ 9.57 $ 1.45 Co-operators Aggressive Portfolio unitholders $ 4,059 $ 1,997 Weighted average units outstanding during the period unitholders per unit $ $ 6.11 Co-operators Conservative Portfolio unitholders $ 4,178 $ 655 Weighted average units outstanding during the period unitholders per unit $ 7.69 $ 1.33 Co-operators Moderate Portfolio unitholders $ 6,293 $ 2,278 Weighted average units outstanding during the period unitholders per unit $ 9.34 $ 3.60 Co-operators Very Aggressive Portfolio unitholders $ 1,684 $ 1,029 Weighted average units outstanding during the period unitholders per unit $ $ 8.50 Co-operators Very Conservative Portfolio unitholders $ 2,921 $ (647) Weighted average units outstanding during the period unitholders per unit $ 6.21 $ (1.42) 86

89 Notes to the Financial Statements 13. unitholders per unit and per series (continued) The increase (decrease) in net assets attributable to unitholders per unit per segment is as follows: June June Co-operators Balanced Fund unitholders per unit, Segment 4 $ $ 9.83 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Canadian Equity Fund unitholders per unit, Segment 4 $ $ (1.44) unitholders per unit, Segment (0.86) unitholders per unit, Segment (0.65) unitholders per unit, Segment (0.79) unitholders per unit, Segment (0.67) unitholders per unit, Segment (0.60) unitholders per unit, Segment (0.62) unitholders per unit, Segment (0.53) Co-operators Canadian Fixed Income Fund unitholders per unit, Segment 4 $ 7.15 $ (5.94) unitholders per unit, Segment (4.26) unitholders per unit, Segment (3.93) unitholders per unit, Segment (4.54) unitholders per unit, Segment (3.99) unitholders per unit, Segment (3.88) unitholders per unit, Segment (3.75) unitholders per unit, Segment (3.83) Co-operators Canadian Resource Fund unitholders per unit, Segment 4 $ $ (27.18) unitholders per unit, Segment (26.36) unitholders per unit, Segment (18.55) unitholders per unit, Segment (35.36) unitholders per unit, Segment (27.05) unitholders per unit, Segment (23.58) unitholders per unit, Segment (15.70) unitholders per unit, Segment (12.80) Co-operators Money Market Fund unitholders per unit, Segment 4 $ 0.02 $ (0.02) unitholders per unit, Segment (0.03) unitholders per unit, Segment (0.02) unitholders per unit, Segment (0.03) unitholders per unit, Segment (0.03) unitholders per unit, Segment (0.03) unitholders per unit, Segment (0.03) unitholders per unit, Segment (0.03) 87

90 Notes to the Financial Statements 13. unitholders per unit and per series (continued) June June Co-operators U.S. Equity Fund unitholders per unit, Segment 4 $ 8.64 $ unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators U.S. Growth Fund unitholders per unit, Segment 4 $ - $ - unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Bissett Canadian Dividend Fund unitholders per unit, Segment 4 $ 7.36 $ (1.96) unitholders per unit, Segment (2.37) unitholders per unit, Segment (2.40) unitholders per unit, Segment (2.31) unitholders per unit, Segment (2.38) unitholders per unit, Segment (2.22) unitholders per unit, Segment (2.19) Co-operators Ethical Balanced Fund unitholders per unit, Segment 4 $ 6.28 $ (1.63) unitholders per unit, Segment (4.05) unitholders per unit, Segment (2.72) unitholders per unit, Segment (2.13) unitholders per unit, Segment (1.47) unitholders per unit, Segment (2.50) Co-operators Ethical Canadian Equity Fund unitholders per unit, Segment 4 $ 8.84 $ 3.56 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Ethical International Equity Fund unitholders per unit, Segment 4 $ 2.98 $ 5.14 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment

91 Notes to the Financial Statements 13. unitholders per unit and per series (continued) June June Co-operators Ethical Select Balanced Portfolio unitholders per unit, Segment 4 $ 5.47 $ 3.03 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Ethical Select Growth Portfolio unitholders per unit, Segment 4 $ 5.96 $ 4.44 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Ethical Select Conservative Portfolio unitholders per unit, Segment 5 $ 3.42 $ (1.62) unitholders per unit, Segment (1.62) unitholders per unit, Segment (1.48) unitholders per unit, Segment (1.61) unitholders per unit, Segment (0.53) Co-operators Ethical Select Income Portfolio unitholders per unit, Segment 4 $ 4.41 $ (0.28) unitholders per unit, Segment (0.28) unitholders per unit, Segment (0.57) unitholders per unit, Segment (0.42) unitholders per unit, Segment (0.57) unitholders per unit, Segment (0.57) unitholders per unit, Segment (0.57) Co-operators Fidelity Canadian Bond Fund unitholders per unit, Segment 4 $ 5.03 $ (3.85) unitholders per unit, Segment (3.67) unitholders per unit, Segment (3.99) unitholders per unit, Segment (3.73) unitholders per unit, Segment (3.91) unitholders per unit, Segment (3.74) unitholders per unit, Segment (3.55) Co-operators Fidelity Global Fund unitholders per unit, Segment 4 $ 4.04 $ unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment

92 Notes to the Financial Statements 13. unitholders per unit and per series (continued) June June Co-operators Fidelity True North Fund unitholders per unit, Segment 4 $ $ unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Mawer Balanced Fund unitholders per unit, Segment 4 $ 7.16 $ 2.95 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Mawer Canadian Equity Fund unitholders per unit, Segment 4 $ $ 6.91 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Mawer International Equity Fund unitholders per unit, Segment 4 $ 8.08 $ 6.04 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Aggressive Balanced Fund unitholders per unit, Segment 4 $ $ 3.16 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment

93 Notes to the Financial Statements 13. unitholders per unit and per series (continued) June June Co-operators Conservative Balanced Fund unitholders per unit, Segment 4 $ 9.99 $ 1.42 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Aggressive Portfolio unitholders per unit, Segment 4 $ $ 6.13 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Conservative Portfolio unitholders per unit, Segment 4 $ 8.12 $ 1.33 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Moderate Portfolio unitholders per unit, Segment 4 $ 9.56 $ 3.66 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Very Aggressive Portfolio unitholders per unit, Segment 4 $ $ 8.32 unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment unitholders per unit, Segment Co-operators Very Conservative Portfolio unitholders per unit, Segment 4 $ 6.60 $ (1.35) unitholders per unit, Segment (1.34) unitholders per unit, Segment (1.47) unitholders per unit, Segment (1.42) unitholders per unit, Segment (1.42) unitholders per unit, Segment (1.48) unitholders per unit, Segment (1.23)