Standard Life Ideal Segregated Funds

Transcription

1 Investment Solutions Standard Life Ideal Segregated Funds Interim unaudited financial statements June 30, 2011 The Standard Life Assurance Company of Canada

2 Table of contents Interim unaudited financial statements Ideal Money Market Fund 3 Ideal Canadian Bond Fund 6 Ideal Corporate High Yield Bond Fund 9 Ideal International Bond Fund 12 Ideal Income Balanced Fund 15 Ideal Russell Retirement Essentials Portfolio 19 Ideal Monthly Income Fund 22 Ideal Fidelity Monthly Income Fund 26 Ideal Balanced Fund 29 Ideal Trimark Balanced Fund 33 Ideal Invesco Canadian Balanced Fund 36 Ideal Fidelity Canadian Balanced Fund 39 Ideal Fidelity Canadian Asset Allocation Fund 42 Ideal Russell Diversified Monthly Income Portfolio 45 Ideal Templeton Global Income Fund 48 Ideal Trimark Global Balanced Fund 51 Ideal Fidelity Global Asset Allocation Fund 54 Ideal Dividend Income Fund 57 Ideal Fidelity Dividend Fund 60 Ideal Canadian Dividend Growth Fund 63 Ideal Canadian Equity Fund 66 Ideal Canadian Equity Focus Fund 69 Ideal Canadian Small Cap Fund 72 Ideal U.S. Dividend Growth Fund 75 Ideal U.S. Equity Fund 78 Ideal Global Dividend Growth Fund 81 Ideal Global Equity Fund 84 Ideal International Equity Fund 87 Ideal Conservative Portfolio 90 Ideal Moderate Portfolio 93 Ideal Growth Portfolio 96 Ideal Dividend Growth & Income Portfolio 99 Ideal Aggressive Portfolio 102 Ideal Global Portfolio 105 Ideal Select Conservative Portfolio 108 Ideal Select Moderate Portfolio 112 Ideal Select Growth Portfolio 116 Ideal Select Dividend Growth & Income Portfolio 120 Ideal Select Aggressive Portfolio 124 Ideal Select Global Portfolio 128 Ideal LifePoints Balanced Income Portfolio 132 Ideal LifePoints Balanced Portfolio 135 Ideal LifePoints Balanced Growth Portfolio 138 Ideal LifePoints Long-Term Growth Portfolio 141 Ideal FT Quotential Diversified Income Portfolio 144 Ideal FT Quotential Balanced Income Portfolio 147 Ideal FT Quotential Balanced Growth Portfolio 150 Ideal FT Quotential Global Balanced Portfolio 153 Ideal FT Quotential Growth Portfolio 156 Notes to interim unaudited financial statements 159 Standard Life 1

3 Ideal Money Market Fund Statement of net assets as at June 30, 2011 and December 31, 2010 ASSETS Short-term investments * 118,027, ,379,133 Cash 89,938 99,708 Subscriptions receivable 252, ,989 Interest accrued 166, , ,536, ,082,793 LIABILITIES Redemptions payable 548,258 1,982,327 Management fees payable 41,365 5,304 Custodian fees payable Audit fees payable 3,182 - Other liabilities 26,437 24, ,321 2,012,733 NET ASSETS 117,916, ,070,060 Net assets per unit (note 3) Back-end Load No-load No-load with Reset n/a n/a Platinum No-load n/a n/a Ideal Money Market Fund II Back-end Load No-load No-load with Reset Platinum No-load /100 Series /100 Platinum No-load Series /100 Series /100 Platinum No-load Series GLWB Series 9.99 n/a GLWB Platinum No-load Series n/a * Short-term investments, at average cost 117,886, ,366,669 Statement of operations for the periods ended June 30 INVESTMENT INCOME Interest 739, , , ,912 EXPENSES (note 5) Management fees 526, ,375 Custodian fees 5,046 5,632 Audit fees 3,500 2,938 Interest Other operating expenses , ,153 Less: expenses absorbed by the manager (96) (202) 535, ,951 NET INVESTMENT INCOME (LOSS) 203,448 (233,039 ) ASSETS FROM OPERATIONS 203,448 (233,039 ) Increase (decrease) in net assets from operations per unit Back-end Load 0.02 (0.05) No-load - (0.06) No-load with Reset n/a (0.05) Platinum No-load n/a (0.05) Ideal Money Market Fund II Back-end Load No-load No-load with Reset Platinum No-load /100 Series /100 Platinum No-load Series /100 Series /100 Platinum No-load Series GLWB Series (0.01 ) n/a GLWB Platinum No-load Series - n/a Statement of changes in net assets for the periods ended June 30 NET ASSETS - beginning of period 117,070, ,592,670 ASSETS FROM OPERATIONS 203,448 (233,039 ) CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 84,913,849 64,849,309 Payments for units redeemed (84,270,462 ) (78,237,922 ) Net capital unit transactions 643,387 (13,388,613 ) NET ASSETS - end of period 117,916, ,971,018 Standard Life 3

4 Ideal Money Market Fund Statement of portfolio investments as at June 30, 2011 Par Average Fair Issuer / Interest rate / Maturity date value cost ($) value ($) SHORT-TERM INVESTMENTS FEDERAL AND FEDERALLY GUARANTEED 23.36% Canada Housing Trust No. 1, 4.600%, 2011/09/15 1,560,000 1,577,394 1,570,623 Canada Housing Trust No. 1, 3.950%, 2011/12/15 1,140,000 1,163,951 1,154,415 Government of Canada, 1.121%, 2011/08/18 1,890,000 1,879,963 1,887,651 Government of Canada, 1.206%, 2011/09/01 2,460,000 2,439,089 2,456,052 Government of Canada, %, 2011/09/15 3,080,000 3,064,527 3,073,932 Government of Canada, 1.257%, 2011/09/29 1,760,000 1,738,595 1,755,885 Government of Canada, 1.143%, 2011/10/13 3,110,000 3,092,717 3,101,466 Government of Canada, 1.246%, 2011/10/27 3,300,000 3,260,608 3,289,559 Government of Canada, 1.114%, 2011/11/10 3,120,000 3,103,086 3,108,780 Government of Canada, 1.330%, 2011/11/24 3,020,000 2,980,457 3,007,799 Government of Canada, 1.046%, 2011/12/08 1,600,000 1,592,101 1,592,805 Government of Canada, 1.449%, 2012/04/12 1,560,000 1,538,204 1,545,846 PROVINCIAL AND PROVINCIALLY GUARANTEED 8.75% Province of Manitoba, floating rate, 1.333%, 2012/05/02 3,770,000 3,770,317 3,772,281 Province of Ontario, 1.155%, 2011/09/21 760, , ,246 Province of Quebec, 1.050%, 2011/07/22 800, , ,527 Province of Quebec, 1.140%, 2011/09/16 5,000,000 4,971,750 4,989,170 BANKERS ACCEPTANCE 13.49% Bank of Nova Scotia, (The), 1.170%, 2011/08/31 1,200,000 1,196,508 1,197,772 Bank of Montreal, 1.100%, 2011/07/04 578, , ,933 Bank of Montreal, 1.150%, 2011/07/25 1,950,000 1,944,618 1,948,584 Canadian Imperial Bank of Commerce, 1.150%, 2011/07/04 1,500,000 1,495,710 1,499,826 Canadian Imperial Bank of Commerce, 1.150%, 2011/08/23 1,000, , ,397 Canadian Imperial Bank of Commerce, 1.150%, 2011/09/07 770, , ,393 HSBC Bank Canada, 1.180%, 2011/07/11 1,160,000 1,156,636 1,159,630 HSBC Bank Canada, 1.180%, 2011/07/26 2,360,000 2,353,156 2,358,221 National Bank of Canada, 1.160%, 2011/07/04 2,000,000 1,994,040 1,999,768 National Bank of Canada, 1.160%, 2011/07/11 1,300,000 1,296,256 1,299,585 National Bank of Canada, 1.150%, 2011/07/19 1,850,000 1,844,654 1,848,981 National Bank of Canada, 1.142%, 2011/09/15 254, , ,402 BEARER DEPOSIT NOTES 9.72% Bank of Nova Scotia, (The), 1.224%, 2011/07/19 2,840,000 2,827,734 2,838,324 Bank of Nova Scotia, (The), 1.170%, 2011/08/25 1,500,000 1,495,635 1,497,255 Bank of Nova Scotia, (The), 1.350%, 2011/10/11 800, , ,152 Royal Bank of Canada, 1.330%, 2011/10/03 1,550,000 1,539,848 1,544,947 Toronto-Dominion Bank, (The), 1.160%, 2011/07/07 2,330,000 2,323,290 2,329,487 Vancouver City Savings Credit Union, 1.230%, 2011/07/11 1,560,000 1,555,226 1,559,485 Vancouver City Savings Credit Union, 1.220%, 2011/08/03 900, , ,082 CANADIAN DEPOSIT CERTIFICATES 0.17% National Bank of Canada, 1.000%, 2011/07/04 100, , ,000 Royal Bank of Canada, 0.950%, 2011/07/04 100, , ,000 CORPORATE 44.60% Bank of Montreal, 4.960%, 2011/07/14 460, , ,465 Bank of Montreal, floating rate, 1.373%, 2012/02/01 1,000,000 1,000, ,940 Bank of Montreal, floating rate, 1.640%, 2012/12/10 1,620,000 1,620,000 1,624,626 Bank of Nova Scotia, (The), floating rate, 2.249%, 2011/08/12 2,500,000 2,528,800 2,502,210 Bank of Nova Scotia, (The), 3.030%, 2012/06/04 1,600,000 1,623,408 1,621,346 Caisse centrale Desjardins, 1.300%, 2011/11/09 1,560,000 1,550,234 1,552,777 Caisse centrale Desjardins, floating rate, 1.452%, 2012/01/11 1,050,000 1,050,000 1,042,667 Caisse centrale Desjardins, floating rate, 1.603%, 2012/02/17 1,000,000 1,000,000 1,000,680 Canadian Imperial Bank of Commerce, 4.350%, 2011/11/01 3,000,000 3,056,955 3,029,137 Canadian Imperial Bank of Commerce, floating rate, 1.499%, 2012/10/15 1,550,000 1,550,000 1,549,039 Central 1 Credit Union, 1.180%, 2011/07/12 1,020,000 1,017,042 1,019,625 Central 1 Credit Union, 1.160%, 2011/08/30 1,300,000 1,296,256 1,297,498 Central 1 Credit Union, 1.340%, 2011/10/12 2,170,000 2,155,811 2,162,511 Citigroup Finance Canada Inc., 5.100%, 2011/07/26 2,400,000 2,430,408 2,405,028 GE Capital Canada Funding Company, 1.180%, 2011/07/28 1,190,000 1,186,668 1,188,979 GE Capital Canada Funding Company, 1.150%, 2011/09/06 750, , ,376 GE Capital Canada Funding Company, 1.201%, 2011/11/04 2,300,000 2,289,903 2,290,094 GE Capital Canada Funding Company, 1.290%, 2011/11/30 1,400,000 1,391,152 1,392,560 Honda Canada Finance Inc., 1.200%, 2011/09/07 600, , ,680 Honda Canada Finance Inc., 1.350%, 2011/11/15 1,610,000 1,599,825 1,602,388 Inter Pipeline (Corridor) Inc., 1.300%, 2011/07/20 800, , ,510 Par Average Fair Issuer / Interest rate / Maturity date value cost ($) value ($) Inter Pipeline (Corridor) Inc., 1.300%, 2011/08/02 1,190,000 1,186,109 1,188,792 Inter Pipeline (Corridor) Inc., 1.300%, 2011/09/02 790, , ,399 Manulife Bank of Canada, floating rate, 1.542%, 2011/09/15 1,850,000 1,850,000 1,850,391 McCain Finance (Canada) Limited, 1.066%, 2011/09/01 1,600,000 1,596,736 1,596,640 National Bank of Canada, floating rate, 1.386%, 2011/10/21 1,450,000 1,450,000 1,450,392 Omers Finance Trust, 1.160%, 2011/08/19 820, , ,720 Omers Finance Trust, 1.150%, 2011/08/30 1,510,000 1,505,772 1,507,093 Omers Finance Trust, 1.150%, 2011/09/08 2,000,000 1,994,340 1,995,532 Plaza Trust, 1.180%, 2011/07/14 750, , ,690 Plaza Trust, 1.180%, 2011/07/29 1,450,000 1,445,940 1,448,757 Royal Bank of Canada, 4.530%, 2012/05/07 3,180,000 3,268,215 3,259,498 Storm King Funding, 1.180%, 2011/08/18 790, , ,835 TransCanada PipeLines Limited, 1.250%, 2011/09/19 800, , ,902 TransCanada PipeLines Limited, 1.181%, 2011/10/06 2,215,000 2,208,001 2,208,000 Vancouver City Savings Credit Union, floating rate, 1.592%, 2011/11/29 1,250,000 1,250,000 1,250,000 TOTAL SHORT-TERM INVESTMENTS % 117,886, ,027,038 Other assets, less liabilities -0.09% (110,143 ) (110,143 ) NET ASSETS % 117,776, ,916,895 4 Standard Life

5 Specific note to interim unaudited financial statements Ideal Money Market Fund Financial instrument risks (note 7) as at June 30, 2011 and December 31, 2010 Fair value measurements As at June 30, 2011 and December 31, 2010, the Fund s financial instruments were classified as Level 2 within the fair value hierarchy. During 2010, short-term investments with a fair value of $6,337,217 were transferred from Level 3 to Level 2 during the period as additional pricing sources became available. Market risk The Fund is not significantly exposed to market risk since it does not hold any equity investments. Interest rate risk The Fund is exposed to interest rate risk since its investments are interest bearing. The debt securities have a maturity of less than one year, except the floating rate debt securities, for which the interest rate changes on a periodic basis. As at June 30, 2011, should current interest rates have increased or decreased by 1%, assuming a parallel shift in the yield curve, with all other variables remaining constant, the decrease or increase in net assets would amount to approximately $258,000 (December 31, $260,000). The Fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund is not significantly exposed to currency risk since it holds assets and liabilities predominantly denominated in Canadian dollars, the functional currency. Credit risk The Fund s credit risk exposure is derived from its holdings in other assets and/or debt securities and/or forward foreign currency contracts, if any, for which the carrying amount represents the maximum credit risk exposure The credit risk exposure of debt securities by credit rating was as follows: % of debt securities as at Credit ratings June 30, 2011 December 31, 2010 AAA AA A Not rated 10 8 Total Standard Life 5

6 Ideal Canadian Bond Fund Statement of net assets as at June 30, 2011 and December 31, 2010 ASSETS Investments, at fair value * 130,499, ,233,107 Short-term investments 1,300,000 3,345,534 Cash 125, ,564 Subscriptions receivable 51, ,860 Interest accrued 902, ,490 Receivable from investments sold 4,151, ,030, ,958,555 LIABILITIES Redemptions payable 166, ,395 Payable on investments purchased 4,094,275 1,380,731 Management fees payable 98,547 13,946 Custodian fees payable Audit fees payable 3,182 - Other liabilities 60,318 50,446 4,423,231 1,922,742 NET ASSETS 132,607, ,035,813 Net assets per unit (note 3) Back-end Load No-load No-load with Reset Platinum No-load /100 Series /100 Platinum No-load Series /100 Series /100 Platinum No-load Series GLWB Series n/a GLWB Platinum No-load Series n/a * Investments, at average cost 127,621, ,377,890 Statement of operations for the periods ended June 30 INVESTMENT INCOME Interest 2,811,451 2,497,159 2,811,451 2,497,159 EXPENSES (note 5) Management fees 1,312,615 1,034,097 Custodian fees 5,980 4,864 Audit fees 3,487 2,938 Interest Other operating expenses ,322,308 1,042,079 Less: expenses absorbed by the manager (113 ) (174 ) 1,322,195 1,041,905 NET INVESTMENT INCOME (LOSS) 1,489,256 1,455,254 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 287, ,392 Change in unrealized appreciation (depreciation) in value of investments 22,970 1,965,541 NET GAIN (LOSS) ON INVESTMENTS 310,276 2,234,933 NCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS 1,799,532 3,690,187 Increase (decrease) in net assets from operations per unit Back-end Load No-load No-load with Reset Platinum No-load /100 Series /100 Platinum No-load Series /100 Series /100 Platinum No-load Series GLWB Series 0.03 n/a GLWB Platinum No-load Series (0.16 ) n/a Statement of changes in net assets for the periods ended June 30 NET ASSETS - beginning of period 143,035, ,928,597 ASSETS FROM OPERATIONS 1,799,532 3,690,187 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 18,549,919 25,122,257 Payments for units redeemed (30,777,968 ) (19,755,168 ) Net capital unit transactions (12,228,049 ) 5,367,089 NET ASSETS - end of period 132,607, ,985,873 6 Standard Life

7 Ideal Canadian Bond Fund Statement of portfolio investments as at June 30, 2011 Par Average Fair Issuer / Interest rate / Maturity date value cost ($) value ($) CANADIAN BONDS FEDERAL AND FEDERALLY GUARANTEED 22.75% Canada Housing Trust No. 1, 4.550%, 2012/12/15 510, , ,173 Canada Housing Trust No. 1, 2.200%, 2014/03/15 11,560,000 11,614,813 11,649,191 Canada Housing Trust No. 1, 2.750%, 2016/06/15 9,510,000 9,598,823 9,587,402 Government of Canada, 2.000%, 2014/03/01 4,330,000 4,309,217 4,354,647 Government of Canada, 4.000%, 2041/06/01 3,740,000 4,080,340 4,050,420 PROVINCIAL AND PROVINCIALLY GUARANTEED 19.19% CDP Financial Inc., 4.600%, 2020/07/15 620, , ,553 Financement-Québec, 3.500%, 2017/12/01 2,660,000 2,678,620 2,706,802 Financement-Québec, 5.250%, 2034/06/01 1,195,000 1,239,227 1,319,603 Province of British Columbia, 5.700%, 2029/06/18 1,465,000 1,656,071 1,744,535 Province of Ontario, 4.750%, 2013/06/02 3,245,000 3,464,783 3,429,266 Province of Ontario, 4.000%, 2021/06/02 5,295,000 5,304,313 5,361,178 Province of Ontario, 6.500%, 2029/03/08 2,315,000 2,847,998 2,966,188 Province of Ontario, 5.850%, 2033/03/08 255, , ,250 Province of Ontario, 4.650%, 2041/06/02 2,105,000 2,190,127 2,209,579 Province of Quebec, 6.000%, 2029/10/01 585, , ,057 Province of Quebec, 5.000%, 2041/12/01 3,320,000 3,476,112 3,639,545 Province of Saskatchewan, 4.750%, 2040/06/01 370, , ,595 MUNICIPALS AND SCHOOLS 8.12% Municipal Finance Authority of British Columbia, 4.950%, 2027/12/01 675, , ,412 Ontario School Boards Financing Corporation, 6.550%, 2026/10/19 1,569,428 1,762,948 1,823,382 Regional Municipality of Peel, 5.100%, 2040/06/29 340, , ,791 Regional Municipality of York, 5.000%, 2019/04/29 900, , ,814 Toronto, City of, 4.950%, 2018/06/27 1,240,000 1,247,783 1,347,544 Ville de Montréal, 4.950%, 2014/12/10 1,290,000 1,344,875 1,394,604 Ville de Montréal, 5.000%, 2018/12/01 2,345,000 2,377,323 2,544,078 Ville de Montréal, 4.500%, 2021/12/01 1,215,000 1,206,568 1,242,640 Winnipeg, City of, 5.200%, 2036/07/17 335, , ,289 CORPORATE 43.89% 407 International Inc., 4.990%, 2020/06/16 325, , ,811 Aéroports de Montréal, 5.472%, 2040/04/16 535, , ,955 Alliance Pipeline Limited Partnership, 7.217%, 2025/12/31 586, , ,947 American Express Canada Credit Corporation, 4.853%, 2014/10/03 1,055,000 1,096,575 1,111,881 Bank of America Corporation, 5.450%, 2014/09/17 595, , ,324 Bank of Montreal, 5.050%, 2013/09/03 415, , ,593 Bank of Montreal, 4.780%, 2014/04/30 665, , ,441 Bank of Montreal, 3.979%, 2016/07/08 355, , ,143 Bank of Montreal, 4.609%, 2025/09/10 245, , ,785 Bank of Nova Scotia, (The), 4.990%, 2013/03/27 1,610,000 1,692,205 1,685,236 Bank of Nova Scotia, (The), 6.000%, 2013/10/03 610, , ,822 Bank of Nova Scotia, (The), 4.940%, 2014/04/15 300, , ,518 Bank of Nova Scotia, (The), 6.650%, 2016/01/22 660, , ,255 Bank of Nova Scotia, (The), 3.610%, 2016/02/22 375, , ,597 Bell Canada, 4.850%, 2014/06/30 660, , ,359 Bell Canada, 3.600%, 2015/12/02 1,110,000 1,109,210 1,123,188 Bell Canada, 7.850%, 2031/04/02 95,000 92, ,803 Bell Canada, 7.300%, 2032/02/23 130, , ,103 Bell Canada, 6.100%, 2035/03/16 745, , ,563 Caisse centrale Desjardins, 3.788%, 2015/06/08 1,920,000 1,961,489 1,979,966 Caisse centrale Desjardins, 3.502%, 2017/10/05 90,000 88,193 89,502 Canadian Hydro Developers, Inc., 7.027%, 2018/06/11 525, , ,630 Canadian Imperial Bank of Commerce, 3.300%, 2014/11/19 1,115,000 1,125,167 1,138,680 Canadian Imperial Bank of Commerce, 3.100%, 2015/03/02 910, , ,205 Canadian Imperial Bank of Commerce, 3.150%, 2015/11/02 600, , ,268 Canadian Imperial Bank of Commerce, 3.950%, 2017/07/14 1,330,000 1,327,180 1,364,586 Citigroup Finance Canada Inc., 6.750%, 2014/09/22 690, , ,414 CU Inc., 4.883%, 2012/11/01 405, , ,229 Enbridge Inc., 5.170%, 2016/05/19 270, , ,030 Enbridge Inc., 4.770%, 2019/09/02 590, , ,483 EPCOR Utilities Inc., 6.650%, 2038/04/15 400, , ,552 GE Capital Canada Funding Company, 5.150%, 2013/06/06 1,800,000 1,877,876 1,895,311 GE Capital Canada Funding Company, 4.650%, 2015/02/11 665, , ,317 GE Capital Canada Funding Company, 4.550%, 2017/01/17 1,580,000 1,641,557 1,639,583 GE Capital Canada Funding Company, 4.400%, 2018/02/08 340, , ,528 GE Capital Canada Funding Company, 5.730%, 2037/10/22 1,185,000 1,163,634 1,205,342 Greater Toronto Airports Authority, 4.850%, 2017/06/01 455, , ,330 Great-West Lifeco Inc., 6.140%, 2018/03/21 750, , ,092 Health Montréal Collective Limited Partnership, 6.721%, 2049/09/30 1,005,000 1,005,000 1,031,220 Par Average Fair Issuer / Interest rate / Maturity date value cost ($) value ($) Holcim Finance (Canada) Inc., 5.900%, 2013/06/21 325, , ,045 HSBC Bank Canada, 3.558%, 2017/10/04 1,010, ,787 1,008,212 IGM Financial Inc., 7.350%, 2019/04/08 575, , ,183 John Deere Credit Inc., 2.400%, 2013/02/01 1,700,000 1,708,121 1,710,037 John Deere Credit Inc., 3.900%, 2013/07/29 445, , ,229 John Deere Credit Inc., 5.450%, 2015/09/16 355, , ,488 Laurentian Bank of Canada, 3.700%, 2015/11/02 580, , ,678 Loblaw Companies Limited, 5.900%, 2036/01/18 1,000, , ,297 Manulife Financial Corporation, 4.896%, 2014/06/02 1,275,000 1,309,604 1,337,375 Manulife Financial Corporation, 4.079%, 2015/08/20 280, , ,469 METRO INC., 5.970%, 2035/10/15 225, , ,215 National Bank of Canada, 5.550%, 2013/11/15 1,720,000 1,815,543 1,837,799 National Bank of Canada, 3.147%, 2015/02/11 535, , ,112 National Bank of Canada, 4.030%, 2015/05/26 610, , ,006 NorthwestConnect General Partnership, 5.950%, 2041/04/30 500, , ,241 Rogers Communications Inc., 5.800%, 2016/05/26 545, , ,780 Rogers Communications Inc., 5.380%, 2019/11/04 805, , ,626 Rogers Communications Inc., 4.700%, 2020/09/29 330, , ,738 Rogers Communications Inc., 6.560%, 2041/03/22 335, , ,050 Royal Bank of Canada, 5.000%, 2013/06/06 1,835,000 1,897,618 1,927,866 Royal Bank of Canada, 4.970%, 2014/06/05 1,385,000 1,485,422 1,483,611 Royal Bank of Canada, 4.350%, 2015/06/15 2,105,000 2,141,691 2,188,140 Royal Bank of Canada, 3.660%, 2017/01/25 750, , ,357 Shaw Communications Inc., 6.500%, 2014/06/02 465, , ,807 Shaw Communications Inc., 5.650%, 2019/10/01 595, , ,951 Shaw Communications Inc., 5.500%, 2020/12/07 290, , ,224 Sun Life Assurance Company of Canada, 6.150%, 2012/06/30 615, , ,994 Suncor Energy Inc., 5.390%, 2037/03/26 905, , ,891 TELUS Corporation, 5.050%, 2019/12/04 570, , ,016 Toronto-Dominion Bank, (The), 4.854%, 2013/02/13 730, , ,932 Toronto-Dominion Bank, (The), 5.690%, 2013/06/03 1,480,000 1,573,900 1,573,753 Toronto-Dominion Bank, (The), 4.779%, 2016/12/14 300, , ,480 TransCanada PipeLines Limited, 8.290%, 2026/02/05 220, , ,030 TransCanada PipeLines Limited, 6.280%, 2028/05/26 340, , ,890 TransCanada PipeLines Limited, 6.500%, 2030/12/09 105, , ,948 TransCanada PipeLines Limited, 8.050%, 2039/02/17 240, , ,338 Wells Fargo Financial Canada Corporation, 3.970%, 2014/11/03 1,275,000 1,289,055 1,312,631 Wells Fargo Financial Canada Corporation, 3.700%, 2016/03/30 470, , ,889 ASSET-BACKED SECURITIES 3.61% CARDS II Trust, 3.048%, 2013/05/15 1,070,000 1,070,000 1,088,152 CNH Capital Canada Receivables Trust, 2.598%, 2014/12/15 1,420,000 1,421,136 1,428,064 Gloucester Credit Card Trust, 5.335%, 2013/05/15 95,000 95,000 99,654 Golden Credit Card Trust, 5.421%, 2013/04/15 665, , ,851 Master Credit Card Trust, 5.237%, 2013/05/21 1,245,000 1,327,700 1,316,103 SCORE Trust, 4.949%, 2014/02/20 140, , ,881 TOTAL CANADIAN BONDS 97.56% 126,524, ,375,163 U.S. BONDS CORPORATE 0.69% Goldman Sachs Group, Inc., (The), 5.200%, 2017/04/19 225, , ,772 Goldman Sachs Group, Inc., (The), 5.000%, 2018/05/03 700, , ,638 TOTAL U.S. BONDS 0.69% 903, ,410 FOREIGN BONDS SUPRANATIONALS 0.16% Inter-American Development Bank, 4.400%, 2026/01/26 205, , ,815 TOTAL FOREIGN BONDS 0.16% 192, ,815 TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 98.41% 127,621, ,499,388 SHORT-TERM INVESTMENTS National Bank of Canada, 1.000%, 2011/07/04 650, , ,000 Royal Bank of Canada, 0.950%, 2011/07/04 650, , ,000 TOTAL SHORT-TERM INVESTMENTS 0.98% 1,300,000 1,300,000 TOTAL INVESTMENTS 99.39% 128,921, ,799,388 Other assets, less liabilities 0.61% 807, ,908 NET ASSETS % 129,729, ,607,296 Standard Life 7

8 Specific note to interim unaudited financial statements Ideal Canadian Bond Fund Financial instrument risks (note 7) as at June 30, 2011 and December 31, 2010 Fair value measurements The following table illustrates the classification of the Fund s financial instruments within the fair value hierarchy: As at June 30, 2011 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 1,300,000-1,300,000 Bonds - 127,145,790 3,353, ,499,388 As at December 31, 2010 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 3,345,534-3,345,534 Bonds - 137,939,518 2,293, ,233,107 The reconciliation of Level 3 fair value measurements was as follows: Bonds as at June 30, 2011 ($) December 31, 2010 ($) Balance beginning of period 2,293,589 1,423,470 Purchases 1,005,000 1,782,024 Sales - (623,900) Net transfers into and/or out of Level 3 - (430,855) Net realized gain (loss) - 2,690 Change in unrealized appreciation (depreciation) 55, ,160 Balance end of period 3,353,598 2,293,589 Bonds with a fair value of nil (December 31, $430,855) were transferred from Level 3 to Level 2 during the period as additional pricing sources became available. Market risk The Fund is not significantly exposed to market risk since it does not hold any equity investments. Interest rate risk The Fund is exposed to interest rate risk since a significant portion of its investments is interest bearing. The table below summarizes the Fund s exposure to interest rate risk by remaining term to maturity. Interest rate risk exposure as at Less than 1 year ($) 1-5 years ($) 5-10 years ($) June 30, ,300,000 72,515,263 26,579,855 December 31, ,345,534 68,660,638 33,121,291 Interest rate risk exposure as at years ($) Greater than 20 years ($) Total ($) June 30, ,266,433 20,137, ,799,388 December 31, ,577,853 24,873, ,578,641 As at June 30, 2011, should current interest rates have increased or decreased by 1%, assuming a parallel shift in the yield curve, with all other variables remaining constant, the decrease or increase in net assets would amount to approximately $8,068,000 (December 31, $9,411,000). The Fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund is not significantly exposed to currency risk since it holds assets and liabilities predominantly denominated in Canadian dollars, the functional currency. Credit risk The Fund s credit risk exposure is derived from its holdings in other assets and/or debt securities and/or forward foreign currency contracts, if any, for which the carrying amount represents the maximum credit risk exposure The credit risk exposure of debt securities by credit rating was as follows: % of debt securities as at Credit ratings June 30, 2011 December 31, 2010 AAA AA A BBB 9 7 Total Standard Life

9 Ideal Corporate High Yield Bond Fund Statement of net assets as at June 30, 2011 and December 31, 2010 ASSETS Investments, at fair value * 87,652,740 85,508,782 Cash 12,450 - Subscriptions receivable 164, ,187 Receivable from investments sold 21,569 - Other accounts receivable ,851,436 85,624,029 LIABILITIES Bank indebtedness Redemptions payable 194,057 68,045 Payable on investments purchased 51,531 - Management fees payable 7, Audit fees payable 2,229 - Other liabilities 4,752 3, ,515 72,703 NET ASSETS 87,590,921 85,551,326 Net assets per unit (note 3) Back-end Load No-load No-load with Reset Platinum No-load /100 Series /100 Platinum No-load Series /100 Series /100 Platinum No-load Series * Investments, at average cost 85,090,039 82,859,850 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 1,308, ,193 Other income (loss) 5,248 3,551 1,313, ,744 EXPENSES (note 5) Management fees 96,919 45,127 Audit fees 2,445 1,985 Other operating expenses ,434 47,195 Less: expenses absorbed by the manager (70) (83) 99,364 47,112 NET INVESTMENT INCOME (LOSS) 1,214, ,632 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 271, ,731 Change in unrealized appreciation (depreciation) in value of investments (86,231) 1,383,027 NET GAIN (LOSS) ON INVESTMENTS 184,780 1,483,758 ASSETS FROM OPERATIONS 1,399,009 2,376,390 Increase (decrease) in net assets from operations per unit Back-end Load No-load No-load with Reset Platinum No-load /100 Series /100 Platinum No-load Series /100 Series /100 Platinum No-load Series Statement of changes in net assets for the periods ended June 30 NET ASSETS - beginning of period 85,551,326 48,761,353 ASSETS FROM OPERATIONS 1,399,009 2,376,390 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 17,516,935 17,784,280 Payments for units redeemed (16,876,349 ) (8,467,112 ) Net capital unit transactions 640,586 9,317,168 NET ASSETS - end of period 87,590,921 60,454,911 Standard Life 9

10 Ideal Corporate High Yield Bond Fund Statement of portfolio investments as at June 30, 2011 Average Fair Issuer Units cost ($) value ($) Standard Life Corporate Bond Fund, A-Series 7,843,505 85,090,039 87,652,740 TOTAL INVESTMENTS % 85,090,039 87,652,740 Other assets, less liabilities -0.07% (61,819 ) (61,819 ) NET ASSETS % 85,028,220 87,590,921 Top Holdings of the Underlying Fund as at June 30, 2011 (unaudited) Average Fair % Net assets of Issuer / Interest rate / Maturity date Par value cost ($) value ($) underlying fund Standard Life Corporate Bond Fund Toronto-Dominion Bank, (The), 4.779%, 2016/12/14 4,350,000 4,160,441 4,559, Royal Bank of Canada, 4.350%, 2015/06/15 4,080,000 4,150,592 4,241, IGM Financial Inc., 6.580%, 2018/03/07 3,700,000 4,093,137 4,197, American Express Canada Credit Corporation, 4.853%, 2014/10/03 3,850,000 3,850,000 4,057, Loblaw Companies Limited, 6.050%, 2034/06/09 3,500,000 3,445,560 3,452, Government of Canada, 3.250%, 2021/06/01 3,400,000 3,392,500 3,439, Laurentian Bank of Canada, 3.700%, 2015/11/02 3,400,000 3,378,457 3,403, Sobeys Inc., 7.160%, 2018/02/26 2,900,000 3,165,445 3,360, Toronto-Dominion Bank, (The), 5.763%, 2017/12/18 3,015,000 2,897,829 3,304, Citigroup Finance Canada Inc., 6.750%, 2014/09/22 3,000,000 3,080,440 3,288, Richardson International Ltd., 5.486%, 2014/09/25 3,100,000 3,100,000 3,285, Royal Bank of Canada, 0.950%, 2011/07/04 3,225,000 3,225,000 3,225, National Bank of Canada, 1.000%, 2011/07/04 3,225,000 3,225,000 3,225, Manulife Financial Corporation, 4.079%, 2015/08/20 3,000,000 3,012,350 3,058, Royal Bank of Canada, 3.660%, 2017/01/25 3,000,000 3,021,030 3,045, Bank of America Corporation, 4.360%, 2015/09/21 3,000,000 2,984,900 3,010, Government of Canada, 0.976%, 2011/08/04 3,000,000 2,992,470 2,997, Goldman Sachs Group, Inc., (The), 5.000%, 2018/05/03 3,000,000 2,995,260 2,994, Goldman Sachs Group, Inc., (The), 4.100%, 2015/11/03 3,000,000 2,999,730 2,983, Canadian Imperial Bank of Commerce, 3.150%, 2015/11/02 3,000,000 2,993,670 2,966, TD Capital Trust III, 7.243%, 2018/12/31 2,505,000 2,680,844 2,950, Bank of Montreal, 6.020%, 2018/05/02 2,500,000 2,798,625 2,858, Manulife Financial Capital Trust II, 7.405%, 2019/12/31 2,475,000 2,571,270 2,818, Molson Coors Capital Finance ULC, 5.000%, 2015/09/22 2,600,000 2,688,184 2,758, Rogers Communications Inc., 5.800%, 2016/05/26 2,500,000 2,672,120 2,732, Standard Life

11 Specific note to interim unaudited financial statements Ideal Corporate High Yield Fund Financial instrument risks (note 7) as at June 30, 2011 and December 31, 2010 Fair value measurements As at June 30, 2011 and December 31, 2010, the Fund s financial instruments were classified as Level 1 within the fair value hierarchy. Market risk The Fund and the underlying fund are not significantly exposed to market risk since they do not hold any equity investments. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund has indirect interest rate risk exposure since a significant portion of the underlying fund s investments is interest bearing. The table below summarizes the Fund s indirect exposure to interest rate risk by remaining term to maturity. Currency risk The Fund s direct exposure to currency risk at June 30, 2011 is minimal as the units of the Fund are valued in Canadian dollars, the functional currency. The Fund is not significantly exposed to indirect currency risk since the underlying fund holds assets and liabilities predominantly denominated in Canadian dollars. Credit risk The Fund s direct credit risk exposure is not significant and is limited to its other assets for which the carrying amount represents the maximum credit risk exposure. The Fund also has indirect credit risk exposure from the underlying fund s holdings in other assets and/or debt securities and/or forward foreign currency contracts, if any. Interest rate risk exposure as at Less than 1 year ($) 1-5 years ($) 5-10 years ($) June 30, ,199,268 33,238,250 30,538,281 December 31, ,589,821 31,842,790 28,775,242 Interest rate risk exposure as at years ($) Greater than 20 years ($) Total ($) June 30, ,318,848 11,213,358 87,508,005 December 31, ,407,304 11,810,484 84,425,641 As at June 30, 2011, should current interest rates of the underlying fund s debt securities have increased or decreased by 1%, assuming a parallel shift in the yield curve, with all other variables remaining constant, the decrease or increase in net assets would amount to approximately $5,270,000 (December 31, $5,220,000). The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Standard Life 11

12 Ideal International Bond Fund Statement of net assets as at June 30, 2011 and December 31, 2010 ASSETS Investments, at fair value * 4,720,386 4,835,827 Subscriptions receivable 10,500 45,312 Other accounts receivable 7-4,730,893 4,881,139 LIABILITIES Redemptions payable 1,211 53,169 Payable on investments purchased 10,500 - Management fees payable Audit fees payable 2,229 - Other liabilities ,918 53,530 NET ASSETS 4,715,975 4,827,609 Net assets per unit (note 3) Back-end Load No-load No-load with Reset Platinum No-load /100 Series /100 Platinum No-load Series /100 Series /100 Platinum No-load Series * Investments, at average cost 4,974,192 5,144,279 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 25,469 5,548 Other income (loss) ,519 5,581 EXPENSES (note 5) Management fees 6,925 6,167 Audit fees 2,419 1,985 Other operating expenses 4 8 9,348 8,160 Less: expenses absorbed by the manager (4) (8) 9,344 8,152 NET INVESTMENT INCOME (LOSS) 16,175 (2,571 ) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (50,710 ) (115,658 ) Change in unrealized appreciation (depreciation) in value of investments 54, ,509 NET GAIN (LOSS) ON INVESTMENTS 3,936 71,851 ASSETS FROM OPERATIONS 20,111 69,280 Increase (decrease) in net assets from operations per unit Back-end Load No-load No-load with Reset Platinum No-load /100 Series /100 Platinum No-load Series (0.50) /100 Series 0.03 (0.04) 100/100 Platinum No-load Series Statement of changes in net assets for the periods ended June 30 NET ASSETS - beginning of period 4,827,609 5,325,123 ASSETS FROM OPERATIONS 20,111 69,280 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 747, ,220 Payments for units redeemed (879,680 ) (1,476,577 ) Net capital unit transactions (131,745 ) (514,357 ) NET ASSETS - end of period 4,715,975 4,880, Standard Life

13 Ideal International Bond Fund Statement of portfolio investments as at June 30, 2011 Average Fair Issuer Units cost ($) value ($) Standard Life International Bond Fund, A-Series 440,121 4,974,192 4,720,386 TOTAL INVESTMENTS % 4,974,192 4,720,386 Other assets, less liabilities -0.09% (4,411 ) (4,411 ) NET ASSETS % 4,969,781 4,715,975 Top Holdings of the Underlying Fund as at June 30, 2011 (unaudited) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency Par value cost ($) value ($) underlying fund Standard Life International Bond Fund Government of Japan, 0.500%, 2014/12/20, (JPY) 547,000,000 6,588,954 6,589, United Kingdom Gilt, 4.750%, 2020/03/07, (GBP) 3,021,000 5,828,180 5,213, Province of Quebec, 3.625%, 2015/02/10, (EUR) 3,300,000 5,069,339 4,781, United States Treasury, 1.375%, 2012/09/15, (USD) 4,875,000 4,977,159 4,763, United States Treasury, 4.375%, 2041/05/15, (USD) 4,800,000 4,771,179 4,622, Province of Quebec, 1.600%, 2013/05/09, (JPY) 377,000,000 3,708,152 4,611, Province of Ontario, 0.000%, 2011/07/29, (USD) 4,500,000 4,366,744 4,339, United States Treasury, 4.250%, 2040/11/15, (USD) 4,375,000 4,111,320 4,124, Government of France, 4.000%, 2038/10/25, (EUR) 2,329,000 3,269,345 3,172, Province of Quebec, 7.500%, 2029/09/15, (USD) 2,144,000 3,102,998 2,787, Government of France, 2.500%, 2020/10/25, (EUR) 1,930,000 2,406,966 2,513, United States Treasury, 2.625%, 2020/11/15, (USD) 2,475,000 2,288,606 2,299, Bundesrepublik Deutschland, 3.750%, 2013/07/04, (EUR) 1,425,000 2,162,983 2,079, Province of Ontario, 2.700%, 2015/06/16, (USD) 2,000,000 2,124,109 2,009, United States Treasury, 3.625%, 2021/02/15, (USD) 1,950,000 1,950,748 1,961, Province of Quebec, 3.500%, 2020/07/29, (USD) 1,925,000 1,998,104 1,841, Province of Ontario, 4.000%, 2019/12/03, (EUR) 1,200,000 1,877,461 1,730, Government of Canada, 1.500%, 2012/12/01, (CAD) 1,500,000 1,500,956 1,501, Government of Norway, 4.500%, 2019/05/22, (NOK) 7,675,000 1,483,579 1,495, Government of Canada, 3.500%, 2020/01/13, (EUR) 1,025,000 1,515,216 1,477, Province of Ontario, 3.150%, 2017/12/15, (USD) 1,425,000 1,435,814 1,406, Province of British Columbia, 2.100%, 2016/05/18, (USD) 1,425,000 1,369,663 1,379, Province of New Brunswick, 5.200%, 2017/02/21, (USD) 1,207,000 1,336,924 1,335, United States Treasury, 3.875%, 2040/08/15, (USD) 1,450,000 1,366,434 1,280, The Commonwealth of Australia, 6.500%, 2013/05/15, (AUD) 1,180,000 1,036,071 1,258, Standard Life 13

14 Specific note to interim unaudited financial statements Ideal International Bond Fund Financial instrument risks (note 7) as at June 30, 2011 and December 31, 2010 Fair value measurements As at June 30, 2011 and December 31, 2010, the Fund s financial instruments were classified as Level 1 within the fair value hierarchy. Market risk The Fund and the underlying fund are not significantly exposed to market risk since they do not hold any equity investments. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund has indirect interest rate risk exposure since a significant portion of the underlying fund s investments is interest bearing. The table below summarizes the Fund s indirect exposure to interest rate risk by remaining term to maturity. Interest rate risk exposure as at Less than 1 year ($) 1-5 years ($) 5-10 years ($) June 30, ,761 1,794,211 1,534,113 December 31, ,171 1,904,500 1,795,168 Interest rate risk exposure as at years ($) Greater than 20 years ($) Total ($) June 30, , ,099 4,707,322 December 31, , ,251 4,680,394 As at June 30, 2011, should current interest rates of the underlying fund s debt securities have increased or decreased by 1%, assuming a parallel shift in the yield curve, with all other variables remaining constant, the decrease or increase in net assets would amount to approximately $323,000 (December 31, $336,000). The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the Fund are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in currency(ies) other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 5% fluctuation in this (these) currency(ies) relative to the Canadian dollar, all other variables held constant. As at June 30, 2011 USD EUR JPY GBP Other currencies Net assets by currency ($) 2,227,314 1,051, , , ,310 Impact on net assets (+/- 5%) ($) 111,366 52,575 34,962 16,606 13,966 As at December 31, 2010 USD EUR JPY GBP Other currencies Net assets by currency ($) 2,089,811 1,267, , , ,184 Impact on net assets (+/- 5%) ($) 104,491 63,379 38,735 17,851 11,559 In practice, actual results may differ materially from this sensitivity analysis. Credit risk The Fund s direct credit risk exposure is not significant and is limited to its other assets for which the carrying amount represents the maximum credit risk exposure. The Fund also has indirect credit risk exposure from the underlying fund s holdings in other assets and/or debt securities and/or forward foreign currency contracts, if any. 14 Standard Life

15 Ideal Income Balanced Fund Statement of net assets as at June 30, 2011 and December 31, 2010 ASSETS Investments, at fair value * 154,000, ,482,111 Short-term investments 14,091,420 9,628,390 Cash 300,363 1,041,821 Subscriptions receivable 55, ,204 Interest accrued 495, ,196 Dividends receivable 296, ,467 Receivable from investments sold 3,419,556 - Other accounts receivable 19,376 19, ,678, ,307,565 LIABILITIES Redemptions payable 220, ,534 Payable on investments purchased 4,016, ,056 Management fees payable 169,418 21,618 Custodian fees payable Audit fees payable 3,182 - Other liabilities 120,334 98,201 4,529,997 1,348,662 NET ASSETS 168,148, ,958,903 Net assets per unit (note 3) Back-end Load No-load No-load with Reset Platinum No-load /100 Series /100 Platinum No-load Series /100 Series /100 Platinum No-load Series GLWB Series n/a GLWB Platinum No-load Series n/a * Investments, at average cost 140,859, ,585,555 Statement of operations for the periods ended June 30 INVESTMENT INCOME Interest 1,639,718 1,479,730 Dividends 1,366,852 1,173,815 Foreign exchange gain (loss) (23,901 ) 50,099 Other income (loss) Less: foreign withholding taxes (27,191 ) (32,968 ) 2,955,514 2,670,809 EXPENSES (note 5) Management fees 2,216,497 1,761,167 Custodian fees 7,378 5,959 Audit fees 3,518 2,938 Interest Other operating expenses ,228,486 1,770,354 Less: expenses absorbed by the manager (138 ) (213 ) 2,228,348 1,770,141 NET INVESTMENT INCOME (LOSS) 727, ,668 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 3,494,893 54,880 Net realized gain (loss) on forward foreign currency contracts 42,586 (34,870 ) Change in unrealized appreciation (depreciation) in value of investments 274,055 (977,336 ) Transaction costs (note 2) (98,606 ) (7,924 ) NET GAIN (LOSS) ON INVESTMENTS 3,712,928 (965,250 ) ASSETS FROM OPERATIONS 4,440,094 (64,582 ) Increase (decrease) in net assets from operations per unit Back-end Load No-load No-load with Reset 0.47 (0.02) Platinum No-load /100 Series 0.32 (0.26) 75/100 Platinum No-load Series 0.32 (0.11 ) 100/100 Series 0.30 (0.16 ) 100/100 Platinum No-load Series 0.32 (0.08) GLWB Series (0.01 ) n/a GLWB Platinum No-load Series 0.04 n/a Statement of changes in net assets for the periods ended June 30 NET ASSETS - beginning of period 160,958, ,004,199 ASSETS FROM OPERATIONS 4,440,094 (64,582 ) CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 21,600,849 26,450,715 Payments for units redeemed (18,851,476 ) (15,037,138 ) Net capital unit transactions 2,749,373 11,413,577 NET ASSETS - end of period 168,148, ,353,194 Standard Life 15

16 Ideal Income Balanced Fund Statement of portfolio investments as at June 30, 2011 Par Average Fair Issuer / Interest rate / Maturity date value cost ($) value ($) CANADIAN BONDS FEDERAL AND FEDERALLY GUARANTEED 11.30% Canada Housing Trust No. 1, 4.550%, 2012/12/15 2,405,000 2,535,361 2,509,562 Canada Housing Trust No. 1, 2.200%, 2014/03/15 5,905,000 5,933,270 5,950,560 Canada Housing Trust No. 1, 2.750%, 2016/06/15 5,170,000 5,218,288 5,212,079 Government of Canada, 2.000%, 2014/03/01 370, , ,106 Government of Canada, 4.000%, 2017/06/01 2,400,000 2,549,928 2,592,674 Government of Canada, 4.000%, 2041/06/01 2,180,000 2,378,380 2,360,940 PROVINCIAL AND PROVINCIALLY GUARANTEED 6.16% CDP Financial Inc., 4.600%, 2020/07/15 355, , ,494 Financement-Québec, 5.250%, 2034/06/01 610, , ,605 Province of British Columbia, 5.700%, 2029/06/18 735, , ,244 Province of Ontario, 4.000%, 2021/06/02 2,605,000 2,618,617 2,637,558 Province of Ontario, 6.500%, 2029/03/08 575, , ,742 Province of Ontario, 5.850%, 2033/03/08 130, , ,657 Province of Ontario, 4.650%, 2041/06/02 1,310,000 1,360,352 1,375,083 Province of Quebec, 4.250%, 2021/12/01 410, , ,924 Province of Quebec, 5.000%, 2041/12/01 2,470,000 2,581,518 2,707,734 Province of Saskatchewan, 4.750%, 2040/06/01 365, , ,168 MUNICIPALS AND SCHOOLS 4.44% Municipal Finance Authority of British Columbia, 4.950%, 2027/12/01 440, , ,209 Ontario School Boards Financing Corporation, 6.550%, 2026/10/19 854, , ,794 Regional Municipality of Peel, 5.100%, 2040/06/29 185, , ,857 Regional Municipality of York, 5.000%, 2019/04/29 720, , ,652 Toronto, City of, 4.950%, 2018/06/27 835, , ,418 Ville de Montréal, 4.950%, 2014/12/10 845, , ,520 Ville de Montréal, 5.000%, 2018/12/01 1,640,000 1,668,286 1,779,227 Ville de Montréal, 4.500%, 2021/12/01 1,200,000 1,191,672 1,227,298 Winnipeg, City of, 5.200%, 2036/07/17 190, , ,806 CORPORATE 20.01% 407 International Inc., 4.990%, 2020/06/16 190, , ,920 Aéroports de Montréal, 5.472%, 2040/04/16 220, , ,607 Alliance Pipeline Limited Partnership, 7.217%, 2025/12/31 54,892 54,892 64,813 American Express Canada Credit Corporation, 4.853%, 2014/10/03 1,035,000 1,077,649 1,090,803 American Express Canada Credit Corporation, 3.600%, 2016/06/03 230, , ,750 Bank of America Corporation, 5.450%, 2014/09/17 330, , ,155 Bank of Montreal, 5.050%, 2013/09/03 415, , ,593 Bank of Montreal, 4.780%, 2014/04/30 475, , ,315 Bank of Montreal, 4.870%, 2015/04/22 195, , ,928 Bank of Montreal, 3.979%, 2016/07/08 195, , ,825 Bank of Montreal, 4.609%, 2025/09/10 125, , ,891 Bank of Nova Scotia, (The), 4.990%, 2013/03/27 985,000 1,038,922 1,031,029 Bank of Nova Scotia, (The), 6.000%, 2013/10/03 615, , ,206 Bank of Nova Scotia, (The), 3.610%, 2016/02/22 205, , ,700 Bell Canada, 4.850%, 2014/06/30 365, , ,214 Bell Canada, 3.600%, 2015/12/02 325, , ,861 Bell Canada, 3.650%, 2016/05/19 300, , ,861 Bell Canada, 7.850%, 2031/04/02 105, , ,467 Bell Canada, 7.300%, 2032/02/23 115, , ,591 Bell Canada, 6.100%, 2035/03/16 260, , ,706 Caisse centrale Desjardins, 3.788%, 2015/06/08 480, , ,992 Caisse centrale Desjardins, 3.502%, 2017/10/05 260, , ,562 Canadian Hydro Developers, Inc., 7.027%, 2018/06/11 450, , ,969 Canadian Imperial Bank of Commerce, 3.050%, 2013/06/03 750, , ,740 Canadian Imperial Bank of Commerce, 3.300%, 2014/11/19 415, , ,814 Canadian Imperial Bank of Commerce, 3.100%, 2015/03/02 530, , ,526 Canadian Imperial Bank of Commerce, 3.150%, 2015/11/02 310, , ,522 Canadian Imperial Bank of Commerce, 3.950%, 2017/07/14 705, , ,333 Canadian Imperial Bank of Commerce, 6.000%, 2018/06/06 120, , ,984 Citigroup Finance Canada Inc., 6.750%, 2014/09/22 430, , ,389 CU Inc., 4.883%, 2012/11/01 450, , ,032 Enbridge Inc., 5.170%, 2016/05/19 160, , ,648 Enbridge Inc., 4.770%, 2019/09/02 395, , ,069 EPCOR Utilities Inc., 6.650%, 2038/04/15 175, , ,991 GE Capital Canada Funding Company, 5.150%, 2013/06/06 1,070,000 1,104,549 1,126,657 GE Capital Canada Funding Company, 4.650%, 2015/02/11 365, , ,934 GE Capital Canada Funding Company, 4.550%, 2017/01/17 265, , ,993 GE Capital Canada Funding Company, 4.400%, 2018/02/08 175, , ,360 GE Capital Canada Funding Company, 5.730%, 2037/10/22 345, , ,922 Greater Toronto Airports Authority, 4.850%, 2017/06/01 295, , ,906 Greater Toronto Airports Authority, 5.630%, 2040/06/07 165, , ,235 Greater Toronto Airports Authority, 5.300%, 2041/02/25 140, , ,029 Health Montréal Collective Limited Partnership, 6.721%, 2049/09/30 565, , ,740 Holcim Finance (Canada) Inc., 5.900%, 2013/06/21 695, , ,588 HSBC Bank Canada, 3.558%, 2017/10/04 230, , ,593 IGM Financial Inc., 7.350%, 2019/04/08 705, , ,416 Par value Average Fair Issuer / Interest rate / Maturity date or shares cost ($) value ($) John Deere Credit Inc., 2.400%, 2013/02/01 540, , ,188 John Deere Credit Inc., 3.900%, 2013/07/29 265, , ,069 John Deere Credit Inc., 5.450%, 2015/09/16 1,080,000 1,152,613 1,187,962 Laurentian Bank of Canada, 3.700%, 2015/11/02 300, , ,351 Loblaw Companies Limited, 5.900%, 2036/01/18 820, , ,543 Manulife Financial Corporation, 4.896%, 2014/06/02 770, , ,670 Manulife Financial Corporation, 4.079%, 2015/08/20 225, , ,394 METRO INC., 5.970%, 2035/10/15 190, , ,182 National Bank of Canada, 5.550%, 2013/11/15 990,000 1,029,202 1,057,803 National Bank of Canada, 3.147%, 2015/02/11 305, , ,054 National Bank of Canada, 4.030%, 2015/05/26 220, , ,379 NorthwestConnect General Partnership, 5.950%, 2041/04/30 470, , ,186 Rogers Communications Inc., 5.800%, 2016/05/26 320, , ,816 Rogers Communications Inc., 5.380%, 2019/11/04 165, , ,072 Rogers Communications Inc., 4.700%, 2020/09/29 150, , ,245 Rogers Communications Inc., 6.560%, 2041/03/22 185, , ,132 Royal Bank of Canada, 5.000%, 2013/06/06 725, , ,691 Royal Bank of Canada, 4.970%, 2014/06/05 815, , ,028 Royal Bank of Canada, 4.350%, 2015/06/15 435, , ,181 Royal Bank of Canada, 3.660%, 2017/01/25 440, , ,663 Shaw Communications Inc., 6.500%, 2014/06/02 280, , ,174 Shaw Communications Inc., 5.650%, 2019/10/01 345, , ,249 Shaw Communications Inc., 5.500%, 2020/12/07 145, , ,112 Sun Life Assurance Company of Canada, 6.150%, 2012/06/30 80,000 85,671 82,991 Suncor Energy Inc., 5.390%, 2037/03/26 300, , ,605 TELUS Corporation, 5.050%, 2019/12/04 120, , ,951 Toronto-Dominion Bank, (The), 4.854%, 2013/02/13 325, , ,552 Toronto-Dominion Bank, (The), 5.690%, 2013/06/03 820, , ,944 Toronto-Dominion Bank, (The), 4.970%, 2015/10/30 400, , ,495 Toronto-Dominion Bank, (The), 4.779%, 2016/12/14 515, , ,857 TransCanada PipeLines Limited, 8.290%, 2026/02/05 210, , ,665 TransCanada PipeLines Limited, 6.280%, 2028/05/26 357, , ,035 TransCanada PipeLines Limited, 6.500%, 2030/12/09 115, , ,562 TransCanada PipeLines Limited, 8.050%, 2039/02/17 205, , ,705 Wells Fargo Financial Canada Corporation, 3.970%, 2014/11/03 680, , ,070 Wells Fargo Financial Canada Corporation, 3.700%, 2016/03/30 255, , ,110 ASSET-BACKED SECURITIES 1.61% CARDS II Trust, 3.048%, 2013/05/15 700, , ,875 CARDS II Trust, 3.333%, 2016/05/15 460, , ,459 CNH Capital Canada Receivables Trust, 2.598%, 2014/12/15 760, , ,314 Gloucester Credit Card Trust, 5.335%, 2013/05/15 105, , ,144 Golden Credit Card Trust, 5.421%, 2013/04/15 360, , ,032 Master Credit Card Trust, 5.237%, 2013/05/21 235, , ,421 SCORE Trust, 4.949%, 2014/02/20 25,000 25,358 26,407 TOTAL CANADIAN BONDS 43.52% 71,522,665 73,167,428 U.S. BONDS CORPORATE 0.35% Goldman Sachs Group, Inc., (The), 5.200%, 2017/04/19 210, , ,321 Goldman Sachs Group, Inc., (The), 5.000%, 2018/05/03 380, , ,261 TOTAL U.S. BONDS 0.35% 570, ,582 FOREIGN BONDS SUPRANATIONALS 0.70% Inter-American Development Bank, 4.400%, 2026/01/26 315, , ,862 International Bank for Reconstruction and Development, 4.300%, 2012/12/15 820, , ,455 TOTAL FOREIGN BONDS 0.70% 1,114,552 1,172,317 CANADIAN EQUITIES ENERGY 7.10% ARC Resources Ltd. 64,000 1,697,753 1,598,080 Bonavista Energy Corporation 51,000 1,512,760 1,451,970 Cenovus Energy Inc. 72,800 1,958,643 2,644,096 Enbridge Inc. 82,400 2,258,918 2,579,120 Penn West Petroleum Ltd. 36, , ,920 TransCanada Corporation 20, , ,400 Vermilion Energy Inc. 39,600 1,822,047 2,016, Standard Life

17 Ideal Income Balanced Fund Statement of portfolio investments as at June 30, 2011 Average Fair Issuer Shares cost ($) value ($) MATERIALS 0.42% CCL Industries Inc., Non-voting, B 21, , ,016 INDUSTRIALS 4.55% Canadian National Railway Company 39, ,751 3,035,770 Canadian Pacific Railway Limited 40,800 2,415,739 2,450,040 Progressive Waste Solutions Ltd. 18, , ,200 SNC-Lavalin Group Inc. 29,200 1,675,035 1,716,960 CONSUMER DISCRETIONARY 1.12% Astral Media Inc., Non-voting, A 9, , ,495 Corus Entertainment Inc., B 33, , ,317 Dollarama Inc. 22, , ,200 Thomson Reuters Corporation 3, , ,630 CONSUMER STAPLES 0.95% Shoppers Drug Mart Corporation 40,300 1,647,550 1,599,910 FINANCIALS 19.72% Bank of Nova Scotia, (The) 68,800 2,604,086 3,991,088 Boardwalk Real Estate Investment Trust 33,300 1,465,748 1,605,060 Brookfield Asset Management Inc., Limited Voting, A 25, , ,546 Brookfield Office Properties Inc 105,000 1,926,880 1,951,950 Canadian Imperial Bank of Commerce 62,900 4,203,980 4,786,690 CI Financial Corp. 33, , ,526 Cominar Real Estate Investment Trust 53,900 1,155,867 1,186,878 IGM Financial Inc. 32, ,655 1,631,473 Industrial Alliance Insurance and Financial Services Inc. 38,700 1,355,114 1,551,096 Intact Financial Corporation 33,200 1,498,365 1,836,292 Manulife Financial Corporation 35, , ,050 National Bank of Canada 27,600 1,475,465 2,156,388 Primaris Retail Real Estate Investment Trust 77,200 1,544,004 1,621,972 Royal Bank of Canada 69,600 2,596,575 3,827,304 Toronto-Dominion Bank, (The) 59,100 3,233,462 4,833,198 TELECOMMUNICATIONS 2.97% BCE Inc. 65,099 2,008,101 2,462,044 TELUS Corporation 47,800 1,843,938 2,537,224 UTILITIES 0.89% Canadian Utilities Limited, Non-voting, A 14, , ,494 Fortis Inc. 21, , ,350 Par value Average Fair Issuer / Interest rate / Maturity date or shares cost ($) value ($) FOREIGN EQUITIES Brookfield Infrastructure Partners L.P. 54,000 1,185,428 1,298,700 TOTAL FOREIGN EQUITIES 0.77% 1,185,428 1,298,700 Transaction costs (note 2) (62,669 ) - TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 91.59% 140,859, ,000,275 SHORT-TERM INVESTMENTS Government of Canada, 0.920%, 2011/07/07 2,400,000 2,394,096 2,399,578 Government of Canada, 0.970%, 2011/08/04 1,700,000 1,695,937 1,698,499 Government of Canada, 0.960%, 2011/08/18 1,200,000 1,197,132 1,198,508 Government of Canada, 0.965%, 2011/09/01 2,850,000 2,842,647 2,845,426 Government of Canada, 0.955%, 2011/09/15 300, , ,409 National Bank of Canada, 1.000%, 2011/07/04 2,825,000 2,825,000 2,825,000 Royal Bank of Canada, 0.950%, 2011/07/04 2,825,000 2,825,000 2,825,000 TOTAL SHORT-TERM INVESTMENTS 8.38% 14,079,044 14,091,420 TOTAL INVESTMENTS 99.97% 154,939, ,091,695 Other assets, less liabilities 0.03% 56,675 56,675 NET ASSETS % 154,995, ,148,370 TOTAL CANADIAN EQUITIES 37.72% 52,059,232 63,434,783 U.S. EQUITIES ENERGY 0.95% Spectra Energy Corp. 60,500 1,566,700 1,598,852 MATERIALS 1.04% Freeport-McMoRan Copper & Gold Inc. 17, , ,047 Praxair Inc. 8, , ,830 INDUSTRIALS 1.36% United Parcel Service, Inc. 10, , ,649 United Technologies Corporation 18,000 1,022,991 1,536,449 CONSUMER DISCRETIONARY 0.99% McDonald s Corporation 10, , ,525 Walt Disney Company, (The) 21, , ,385 CONSUMER STAPLES 1.31% Altria Group Inc. 15,300 1,004, ,581 Coca-Cola Company, (The) 12, , ,123 Philip Morris International Inc. 15, , ,872 HEALTH CARE 1.46% Johnson & Johnson 26,200 1,669,121 1,679,435 Merck & Co., Inc. 23, , ,412 INFORMATION TECHNOLOGY 0.95% International Business Machines Corporation 9,700 1,584,102 1,603,746 TELECOMMUNICATIONS 0.47% Verizon Communications Inc. 22,000 1,055, ,559 TOTAL U.S. EQUITIES 8.53% 14,470,459 14,345,465 Standard Life 17

18 Specific note to interim unaudited financial statements Ideal Income Balanced Fund Financial instrument risks (note 7) as at June 30, 2011 and December 31, 2010 Fair value measurements The following table illustrates the classification of the Fund s financial instruments within the fair value hierarchy: As at June 30, 2011 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 14,091,420-14,091,420 Bonds - 72,747,330 2,173,997 74,921,327 Equities 79,078, ,078,948 As at December 31, 2010 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 9,628,390-9,628,390 Bonds - 73,772,634 1,573,662 75,346,296 Equities 75,121, ,121,237 Forward foreign currency contracts - 14,578-14,578 Equities with a fair value of nil (December 31, $1,264,555) were transferred from Level 2 to Level 1 during the period as additional pricing sources became available. The reconciliation of Level 3 fair value measurements was as follows: Bonds as at June 30, 2011 ($) December 31, 2010 ($) Balance beginning of period 1,573,662 1,367,558 Purchases 565,000 1,024,076 Sales - (455,168) Net transfers into and/or out of Level 3 - (478,728) Net realized gain (loss) - 8,673 Change in unrealized appreciation (depreciation) 35, ,251 Balance end of period 2,173,997 1,573,662 Bonds with a fair value of nil (December 31, $478,728) were transferred from Level 3 to Level 2 during the period as additional pricing sources became available. Market risk The Fund is exposed to market risk through its equity investments. As at June 30, 2011, had the prices on the respective stock exchanges for these equity investments increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $7,908,000 (December 31, $7,512,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is exposed to interest rate risk since a significant portion of its investments is interest bearing. The table below summarizes the Fund s exposure to interest rate risk by remaining term to maturity. Interest rate risk exposure as at Less than 1 year ($) 1-5 years ($) 5-10 years ($) June 30, ,091,420 40,494,113 15,831,683 December 31, ,628,390 34,907,024 19,196,494 Interest rate risk exposure as at years ($) Greater than 20 years ($) Total ($) June 30, ,174,506 12,421,025 89,012,747 December 31, ,245,631 13,997,147 84,974,686 As at June 30, 2011, should current interest rates have increased or decreased by 1%, assuming a parallel shift in the yield curve, with all other variables remaining constant, the respective decrease or increase in net assets would amount to approximately $4,698,000 (December 31, $5,131,000). The Fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund is exposed to currency risk since it holds assets and liabilities denominated in currency(ies) other than Canadian dollars, the functional currency. The table below summarizes the Fund s exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 5% fluctuation in this (these) currency(ies) relative to the Canadian dollar, all other variables held constant. As at June 30, 2011 USD Net assets by currency ($) 14,370,318 Impact on net assets (+/- 5%) ($) 718,516 As at December 31, 2010 USD Net assets by currency ($) 22,152,147 Impact on net assets (+/- 5%) ($) 1,107,607 In practice, actual results may differ materially from this sensitivity analysis. Credit risk The Fund s credit risk exposure is derived from its holdings in other assets and/or debt securities and/or forward foreign currency contracts, if any, for which the carrying amount represents the maximum credit risk exposure The credit risk exposure of debt securities by credit rating was as follows: % of debt securities as at Credit ratings June 30, 2011 December 31, 2010 AAA AA A BBB 8 7 Total Standard Life

19 Ideal Russell Retirement Essentials Portfolio Statement of net assets as at June 30, 2011 and December 31, 2010 ASSETS Investments, at fair value * 2,132,757 1,443,676 Cash 1, Subscriptions receivable 49,087-2,183,101 1,443,916 LIABILITIES Redemptions payable 2,679 10,917 Payable on investments purchased 1, Management fees payable 2, Other liabilities 1, ,149 12,036 NET ASSETS 2,174,952 1,431,880 Net assets per unit (note 3) 75/100 Series /100 Platinum No-load Series /100 Series /100 Platinum No-load Series GLWB Series 9.95 n/a GLWB Platinum No-load Series 9.96 n/a * Investments, at average cost 2,061,965 1,403,067 Statement of operations for the periods ended June 30 EXPENSES (note 5) Management fees 32,511 6,606 Audit fees 2,310 1,884 Other operating expenses 2-34,823 8,490 Less: expenses absorbed by the manager (2,312 ) (1,884 ) 32,511 6,606 NET INVESTMENT INCOME (LOSS) (32,511 ) (6,606) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 16, Change in unrealized appreciation (depreciation) in value of investments 30,183 (505) NET GAIN (LOSS) ON INVESTMENTS 46,569 (375 ) ASSETS FROM OPERATIONS 14,058 (6,981 ) Increase (decrease) in net assets from operations per unit 75/100 Series 0.08 (0.24 ) 75/100 Platinum No-load Series 0.08 (0.04) 100/100 Series 0.08 (0.10 ) 100/100 Platinum No-load Series 0.11 (0.05) GLWB Series (0.01 ) n/a GLWB Platinum No-load Series (0.04) n/a Statement of changes in net assets for the periods ended June 30 NET ASSETS - beginning of period 1,431, ,046 ASSETS FROM OPERATIONS 14,058 (6,981 ) CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 1,506, ,712 Payments for units redeemed (777,386 ) (7,879 ) Net capital unit transactions 729, ,833 NET ASSETS - end of period 2,174, ,898 Standard Life 19

20 Ideal Russell Retirement Essentials Portfolio Statement of portfolio investments as at June 30, 2011 Average Fair Issuer Units cost ($) value ($) Russell Retirement Essentials, A-Series 166,702 2,061,965 2,132,757 TOTAL INVESTMENTS 98.06% 2,061,965 2,132,757 Other assets, less liabilities 1.94% 42,195 42,195 NET ASSETS % 2,104,160 2,174,952 Top Holdings of the Underlying Fund as at June 30, 2011 (unaudited) Average Fair % Net assets of Issuer Units cost ($) value ($) underlying fund Russell Retirement Essentials Russell Fixed Income Pool, O Units 4,318,136 44,534,783 44,945, Russell Core Plus Fixed Income Pool, O Units 4,316,507 43,281,393 43,656, Russell Canadian Dividend Pool, O Units 1,400,858 16,074,515 17,441, Russell US Equity Pool, O Units 1,099,079 11,162,355 12,424, Russell Global Equity Pool, O Units 970,595 10,189,049 11,441, Russell Overseas Equity Pool, O Units 899,527 9,876,544 10,869, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. 20 Standard Life