Standard Life Ideal Segregated Funds

Transcription

1 Investment Solutions Standard Life Ideal Segregated Funds Interim unaudited financial statements June 30, 2010 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 Balanced Fund 26 Ideal Trimark Balanced Fund 30 Ideal AIM Canadian Balanced Fund 33 Ideal Fidelity Canadian Balanced Fund 36 Ideal Fidelity Canadian Asset Allocation Fund 39 Ideal Russell Diversified Monthly Income Portfolio 42 Ideal Global Monthly Income Fund 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 Canadian Dividend Growth Fund 60 Ideal Canadian Equity Fund 63 Ideal Canadian Equity Focus Fund 66 Ideal Canadian Small Cap Fund 69 Ideal U.S. Dividend Growth Fund 72 Ideal U.S. Equity Fund 75 Ideal U.S. Equity Focus Fund 78 Ideal U.S. Mid Cap Fund 81 Ideal Global Dividend Growth Fund 84 Ideal Global Equity Fund 87 Ideal Global Equity Focus Fund 90 Ideal European Equity Fund 93 Ideal International Equity Fund 96 Ideal Conservative Portfolio 99 Ideal Moderate Portfolio 102 Ideal Growth Portfolio 105 Ideal Dividend Growth & Income Portfolio 108 Ideal Aggressive Portfolio 111 Ideal Global Portfolio 114 Ideal Select Conservative Portfolio 117 Ideal Select Moderate Portfolio 121 Ideal Select Growth Portfolio 125 Ideal Select Dividend Growth & Income Portfolio 129 Ideal Select Aggressive Portfolio 133 Ideal Select Global Portfolio 137 Ideal LifePoints Balanced Income Portfolio 141 Ideal LifePoints Balanced Portfolio 144 Ideal LifePoints Balanced Growth Portfolio 147 Ideal LifePoints Long-Term Growth Portfolio 150 Ideal FT Quotential Diversified Income Portfolio 153 Ideal FT Quotential Balanced Income Portfolio 156 Ideal FT Quotential Balanced Growth Portfolio 159 Ideal FT Quotential Global Balanced Portfolio 162 Ideal FT Quotential Growth Portfolio 165 Notes to interim unaudited financial statements 168 Standard Life 1

3 Ideal Money Market Fund Statement of net assets ASSETS Short-term investments 129,006, ,327,201 Cash 86, ,795 Subscriptions receivable 103, ,322 Interest accrued 270,692 77,480 Total assets 129,467, ,249,798 LIABILITIES Redemptions payable 447, ,794 Management fees payable 43,666 6,760 Custodian fees payable Audit fees payable 2,798 - Other liabilities 2, Total liabilities 496, ,128 NET ASSETS 128,971, ,592,670 Net assets per unit (note 3) Back-end Load Option No-load Option No-load Option with Resets Platinum No-load Option Ideal Money Market Fund II Back-end Load Option No-load Option No-load Option with Resets Platinum No-load Option /100 Series /100 Platinum Series /100 Series /100 Platinum Series Statement of operations for the periods ended June 30 INVESTMENT INCOME Interest 333,912 1,503,205 Foreign exchange gain (loss) - 2 Total investment income (loss) 333,912 1,503,207 EXPENSES (note 5) Management fees 588, ,458 Custodian fees 5,632 7,926 Audit fees 2,938 2,934 Interest 6 55 Other operating expenses ,153 1,002,881 Less: expenses absorbed by the manager (202) (508) Total expenses 566,951 1,002,373 NET INVESTMENT INCOME (LOSS) (233,039) 500,834 ASSETS FROM OPERATIONS (233,039) 500,834 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.05) 0.05 No-load Option (0.06) 0.04 No-load Option with Resets (0.05) 0.04 Platinum No-load Option (0.05) 0.05 Ideal Money Market Fund II Back-end Load Option No-load Option No-load Option with Resets Platinum No-load Option /100 Series /100 Platinum Series 0.01 N/A 100/100 Series /100 Platinum Series - N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (233,039) 500,834 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 64,849,309 83,316,173 Payments for units redeemed (78,237,922) (79,570,934) Net capital unit transactions (13,388,613 ) 3,745,239 ASSETS FOR THE PERIOD (13,621,652) 4,246,073 NET ASSETS - beginning of period 142,592, ,177,395 NET ASSETS - end of period 128,971, ,423,468 Standard Life 3

4 Ideal Money Market Fund Statement of portfolio investments as at June 30, 2010 Par Average Fair Issuer / Interest rate / Maturity date value ($) cost ($) value ($) SHORT-TERM INVESTMENTS FEDERAL AND FEDERALLY GUARANTEED 30.58% Canada Housing Trust No. 1, 3.550%, 2010/09/15 3,400,000 3,432,123 3,419,676 Government of Canada, 0.276%, 2010/08/19 420, , ,777 Government of Canada, 0.294%, 2010/08/19 410, , ,783 Government of Canada, 0.300%, 2010/08/19 30,000 29,959 29,984 Government of Canada, 0.460%, 2010/09/02 1,800,000 1,796,634 1,798,601 Government of Canada, 0.430%, 2010/09/16 960, , ,021 Government of Canada, 0.439%, 2010/09/16 2,000,000 1,995,967 1,997,960 Government of Canada, 0.449%, 2010/09/16 2,000,000 1,995,875 1,997,960 Government of Canada, 0.466%, 2010/09/16 1,070,000 1,067,710 1,068,909 Government of Canada, 0.540%, 2010/09/16 880, , ,102 Government of Canada, 0.674%, 2010/09/30 900, , ,840 Government of Canada, 0.595%, 2010/10/14 890, , ,588 Government of Canada, 0.600%, 2010/10/28 2,670,000 2,663,218 2,664,898 Government of Canada, 0.548%, 2010/11/25 990, , ,385 Government of Canada, 0.774%, 2010/12/09 1,750,000 1,743,272 1,744,670 Government of Canada, 0.781%, 2010/12/09 880, , ,320 Government of Canada, 0.838%, 2010/12/09 900, , ,259 Government of Canada, 0.839%, 2010/12/09 2,000,000 1,992,261 1,993,908 Government of Canada, 0.649%, 2011/01/20 970, , ,857 Government of Canada, 0.629%, 2011/02/17 870, , ,538 Government of Canada, 0.633%, 2011/02/17 1,080,000 1,073,225 1,074,461 Government of Canada, 0.645%, 2011/02/17 910, , ,333 Government of Canada, 0.770%, 2011/03/17 3,610,000 3,582,492 3,587,900 Government of Canada, 0.780%, 2011/03/17 1,900,000 1,885,332 1,888,368 Government of Canada, 0.850%, 2011/03/17 2,900,000 2,875,698 2,882,246 Government of Canada, 0.880%, 2011/03/17 1,350,000 1,338,512 1,341,735 Government of Canada, 0.940%, 2011/03/17 2,000,000 1,982,140 1,987,756 PROVINCIAL AND PROVINCIALLY GUARANTEED 10.50% Province of Manitoba, 0.729%, 2012/05/02 3,770,000 3,770,317 3,769,710 Province of Ontario, 0.450%, 2010/08/04 1,740,000 1,738,051 1,739,367 Province of Ontario, 0.590%, 2010/09/29 1,770,000 1,767,345 1,767,448 Province of Ontario, 0.663%, 2010/12/03 3,500,000 3,471,125 3,496,882 Province of Quebec, 0.720%, 2011/05/16 2,770,000 2,744,904 2,767,518 BANKERS ACCEPTANCE 5.66% Bank of Nova Scotia, (The), 0.710%, 2010/09/01 1,280,000 1,277,734 1,278,642 Bank of Nova Scotia, (The), 0.710%, 2010/09/07 1,750,000 1,746,903 1,747,900 HSBC Bank Canada, 0.590%, 2010/07/22 2,180,000 2,177,035 2,179,305 National Bank of Canada, 0.600%, 2010/08/11 2,100,000 2,096,871 2,098,646 CANADIAN DEPOSIT CERTIFICATE 1.63% National Bank of Canada, 0.500%, 2010/07/02 2,100,000 2,100,000 2,100,000 CORPORATE 50.81% 407 International Inc., 4.900%, 2010/10/04 2,250,000 2,277,002 2,271,908 Alberta Capital Finance Authority, 0.920%, 2010/12/14 2,500,000 2,488,650 2,489,173 Bank of Montreal, 0.600%, 2010/08/26 3,630,000 3,624,591 3,626,620 Bank of Montreal, 0.749%, 2011/02/01 2,950,000 2,950,000 2,946,313 Bank of Nova Scotia, (The), 1.099%, 2011/02/07 860, , ,402 Bank of Nova Scotia, (The), 4.580%, 2011/02/15 2,480,000 2,532,576 2,531,063 Bank of Nova Scotia, (The), 1.679%, 2011/08/12 2,500,000 2,528,800 2,519,315 Caisse centrale Desjardins, 0.999%, 2012/02/17 1,000,000 1,000, ,400 Canadian Imperial Bank of Commerce, 4.950%, 2010/09/02 3,850,000 3,918,728 3,874,987 Enbridge Inc., 0.620%, 2010/07/14 360, , ,914 Enbridge Pipelines Inc., 0.450%, 2010/07/12 3,390,000 3,386,271 3,389,366 GE Capital Canada Funding Company, 0.771%, 2010/07/21 1,800,000 1,800,288 1,799,552 GE Capital Canada Funding Company, 4.750%, 2011/05/02 1,840,000 1,894,409 1,885,763 Greater Toronto Airports Authority, 6.700%, 2010/07/19 2,050,000 2,084,646 2,054,715 Inter Pipeline (Corridor) Inc., 0.760%, 2010/07/19 2,600,000 2,598,856 2,599,228 Manulife Bank of Canada, 1.109%, 2011/09/15 1,850,000 1,850,000 1,846,707 Omers Finance Trust, 0.430%, 2010/07/09 3,000,000 2,996,880 2,999,577 Omers Finance Trust, 0.590%, 2010/08/19 870, , ,254 Omers Finance Trust, 0.690%, 2010/09/01 870, , ,985 Omers Finance Trust, 0.680%, 2010/09/01 2,500,000 2,496,175 2,497,083 Plaza Trust, 0.620%, 2010/08/16 520, , ,586 Plaza Trust, 0.720%, 2010/09/15 2,000,000 1,996,460 1,997,046 PURE Trust, 0.620%, 2010/08/24 2,120,000 2,116,735 2,117,956 Royal Bank of Canada, 0.620%, 2010/08/16 1,740,000 1,737,338 1,738,718 Par Average Fair Issuer / Interest rate / Maturity date value ($) cost ($) value ($) Royal Bank of Canada, 0.750%, 2010/09/21 2,710,000 2,704,987 2,705,802 Storm King Funding, 0.480%, 2010/07/19 1,060,000 1,058,728 1,059,685 Storm King Funding, 0.480%, 2010/07/23 400, , ,856 Storm King Funding, 0.620%, 2010/08/16 530, , ,578 Toronto-Dominion Bank, (The), 1.172%, 2010/11/19 3,590,000 3,570,260 3,594,638 Toyota Credit Canada, 0.650%, 2010/07/20 2,300,000 2,296,320 2,299,282 TransCanada PipeLines Limited, 0.470%, 2010/07/14 1,770,000 1,767,947 1,769,612 TransCanada PipeLines Limited, 0.640%, 2010/08/23 1,740,000 1,737,251 1,738,338 Vancouver City Savings Credit Union, 0.620%, 2010/07/12 1,770,000 1,769,575 1,769,669 PROMISSORY NOTE 0.85% Province of British Columbia, 0.380%, 2010/07/26 1,100,000 1,098,757 1,099,580 TOTAL SHORT-TERM INVESTMENTS % 128,970, ,006,924 Other assets, less liabilities (0.03%) (35,906 ) (35,906 ) NET ASSETS % 128,934, ,971,018 4 Standard Life

5 Specific note to interim unaudited financial statements Ideal Money Market Fund Financial instrument risks (note 7) Fair value measurements The following table illustrates the classification of the Fund s financial instruments within the fair value hierarchy: as at June 30, 2010 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 129,006, ,006,924 as at December 31, 2009 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 135,989,984 6,337, ,327,201 The reconciliation of Level 3 fair value measurements was as follows: Credit risk The Fund s credit risk exposure is derived from its holdings in debt securities and other assets for which the carrying amount represents the maximum credit risk exposure. The credit risk exposure of debt securities by credit rating was as follows: Credit ratings % of debt securities as at June 30, 2010 as at December 31, 2009 AAA AA A Not rated 13 - Total Short-term investments as at June 30, 2010 ($) as at December 31, 2009 ($) Balance beginning of period 6,337,217 7,780,968 Purchases - 1,225,000 Sales - (2,931,018) Net transfers into and/or out of Level 3 (6,337,217) - Net realized gain (loss) - 31,089 Change in unrealized appreciation (depreciation) - 231,178 Balance end of period - 6,337,217 Market risk The Fund is not significantly exposed to market risk since it does not hold any equity investments. Interest rate risk As at June 30, 2010 and December 31, 2009, all of the Fund s investments were considered as short-term investments. The Fund s sensitivity to interest rate changes was estimated using the weighted average duration and was not significant. 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. Standard Life 5

6 Ideal Canadian Bond Fund Statement of net assets ASSETS Investments, at fair value* 115,557, ,785,650 Short-term investments 2,527,617 2,000,000 Cash 98, ,228 Subscriptions receivable 338, ,166 Interest accrued 791, ,871 Receivable from investments sold 1,301,639 - Total assets 120,615, ,486,915 LIABILITIES Redemptions payable 108, ,389 Payable on investments purchased 2,430,260 - Management fees payable 83,794 10,238 Custodian fees payable Audit fees payable 2,798 - Other liabilities 4, Total liabilities 2,629, ,318 NET ASSETS 117,985, ,928,597 Net assets per unit (note 3) Back-end Load Option No-load Option No-load Option with Resets Platinum No-load Option /100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 112,443, ,637,563 Statement of operations for the periods ended June 30 INVESTMENT INCOME Interest 2,497,159 2,411,657 Total investment income (loss) 2,497,159 2,411,657 EXPENSES (note 5) Management fees 1,034, ,624 Custodian fees 4,864 4,298 Audit fees 2,938 2,934 Interest Other operating expenses ,042, ,326 Less: expenses absorbed by the manager (174 ) (272) Total expenses 1,041, ,054 NET INVESTMENT INCOME (LOSS) 1,455,254 1,508,603 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 269, ,544 Change in unrealized appreciation (depreciation) in value of investments 1,965,541 1,398,242 NET GAIN (LOSS) ON INVESTMENTS 2,234,933 2,293,786 ASSETS FROM OPERATIONS 3,690,187 3,802,389 Increase (decrease) in net assets from operations per unit Back-end Load Option No-load Option No-load Option with Resets Platinum No-load Option /100 Series /100 Platinum Series 0.25 N/A 100/100 Series /100 Platinum Series 0.40 N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS 3,690,187 3,802,389 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 25,122,257 23,440,249 Payments for units redeemed (19,755,168) (18,619,181 ) Net capital unit transactions 5,367,089 4,821,068 ASSETS FOR THE PERIOD 9,057,276 8,623,457 NET ASSETS - beginning of period 108,928,597 95,174,571 NET ASSETS - end of period 117,985, ,798,028 6 Standard Life

7 Ideal Canadian Bond Fund Statement of portfolio investments as at June 30, 2010 Par Average Fair Issuer / Interest rate / Maturity date value ($) cost ($) value ($) CANADIAN BONDS FEDERAL AND FEDERALLY GUARANTEED 21.47% Canada Housing Trust No. 1, 3.950%, 2011/12/15 2,525,000 2,615,713 2,619,188 Canada Housing Trust No. 1, 4.550%, 2012/12/15 8,310,000 8,786,511 8,837,510 Canada Housing Trust No. 1, 2.750%, 2014/12/15 3,860,000 3,828,115 3,883,573 Canada Housing Trust No. 1, 1.009%, 2015/03/15 1,300,000 1,300,650 1,300,035 Canada Housing Trust No. 1, 3.150%, 2015/06/15 305, , ,166 Government of Canada, 2.000%, 2012/09/01 7,855,000 7,862,902 7,930,997 Government of Canada, 3.500%, 2020/06/01 4,100 4,007 4,245 Government of Canada, 5.750%, 2033/06/01 125, , ,055 Government of Canada, 4.000%, 2041/06/01 260, , ,478 PROVINCIAL AND PROVINCIALLY GUARANTEED 28.08% Financement-Québec, 3.500%, 2016/12/01 1,725,000 1,695,572 1,734,262 Financement-Québec, 5.250%, 2034/06/01 1,195,000 1,239,227 1,269,907 Province of British Columbia, 5.700%, 2029/06/18 1,465,000 1,656,071 1,699,363 Province of New Brunswick, 4.800%, 2039/09/26 335, , ,976 Province of Ontario, 4.500%, 2012/12/02 10,190,000 10,756,539 10,792,779 Province of Ontario, 4.750%, 2013/06/02 2,235,000 2,382,922 2,392,871 Province of Ontario, 6.500%, 2029/03/08 2,105,000 2,553,227 2,630,096 Province of Ontario, 4.600%, 2039/06/02 3,235,000 3,129,778 3,251,935 Province of Quebec, 5.500%, 2014/12/01 2,540,000 2,745,390 2,825,732 Province of Quebec, 6.000%, 2029/10/01 2,565,000 2,811,550 3,014,491 Province of Quebec, 5.000%, 2041/12/01 2,645,000 2,709,710 2,785,280 Province of Saskatchewan, 4.750%, 2040/06/01 370, , ,033 MUNICIPALS AND SCHOOLS 8.14% Municipal Finance Authority of British Columbia, 4.875%, 2019/06/03 515, , ,945 Municipal Finance Authority of British Columbia, 4.950%, 2027/12/01 675, , ,145 Ontario School Boards Financing Corporation, 6.550%, 2026/10/19 1,626,531 1,827,091 1,873,908 Regional Municipality of York, 5.000%, 2019/04/29 900, , ,226 Toronto, City of, 4.950%, 2018/06/27 1,240,000 1,247,783 1,322,439 Ville de Montréal, 4.950%, 2014/12/10 1,290,000 1,344,875 1,384,162 Ville de Montréal, 5.000%, 2018/12/01 1,500,000 1,468,374 1,582,478 Ville de Montréal, 5.450%, 2019/12/01 830, , ,302 Winnipeg, City of, 5.200%, 2036/07/17 335, , ,684 CORPORATE 36.07% 407 International Inc., 4.990%, 2020/06/16 325, , ,561 Aeroports de Montreal, 5.472%, 2040/04/16 535, , ,055 Alliance Pipeline Limited Partnership, 7.217%, 2025/12/31 600, , ,514 American Express Canada Credit Corporation, 4.853%, 2014/10/03 355, , ,399 Bank of Montreal, 5.050%, 2013/09/03 645, , ,770 Bank of Nova Scotia, (The), 4.990%, 2013/03/27 610, , ,560 Bank of Nova Scotia, (The), 6.000%, 2013/10/03 610, , ,377 Bank of Nova Scotia, (The), 4.940%, 2014/04/15 300, , ,172 Bank of Nova Scotia, (The), 6.650%, 2016/01/22 660, , ,130 Bell Canada, 5.000%, 2017/02/15 590, , ,500 Bell Canada, 7.850%, 2031/04/02 95,000 92, ,954 Bell Canada, 7.300%, 2032/02/23 130, , ,828 Bell Canada, 6.100%, 2035/03/16 745, , ,356 British Columbia Ferry Services Inc., 5.581%, 2038/01/11 165, , ,003 Caisse centrale Desjardins, 3.114%, 2014/12/04 770, , ,952 Caisse centrale Desjardins, 3.788%, 2015/06/08 165, , ,267 Canadian Hydro Developers, Inc., 7.027%, 2018/06/11 525, , ,365 Canadian Imperial Bank of Commerce, 3.050%, 2013/06/03 1,180,000 1,182,126 1,196,052 Canadian Imperial Bank of Commerce, 3.300%, 2014/11/19 715, , ,353 Canadian Imperial Bank of Commerce, 3.100%, 2015/03/02 910, , ,213 Canadian Pacific Railway Limited, 6.250%, 2018/06/01 235, , ,618 CDP Financial Inc., 4.600%, 2020/07/15 620, , ,234 Citigroup Finance Canada Inc., 6.750%, 2014/09/22 690, , ,226 CU Inc., 4.883%, 2012/11/01 405, , ,920 CU Inc., 5.580%, 2038/05/26 215, , ,230 Enbridge Inc., 5.170%, 2016/05/19 270, , ,266 Enbridge Inc., 4.770%, 2019/09/02 590, , ,678 Enbridge Pipelines Inc., 5.330%, 2040/04/06 1,105,000 1,104,834 1,137,942 EPCOR Utilities Inc., 6.650%, 2038/04/15 400, , ,641 Finning International Inc., 6.020%, 2018/06/01 405, , ,561 FortisAlberta Inc., 7.060%, 2039/02/14 500, , ,754 GE Capital Canada Funding Company, 5.150%, 2013/06/06 1,455,000 1,508,926 1,536,976 GE Capital Canada Funding Company, 4.240%, 2015/06/08 240, , ,273 GE Capital Canada Funding Company, 5.730%, 2037/10/22 1,185,000 1,163,634 1,195,338 Greater Toronto Airports Authority, 4.850%, 2017/06/01 455, , ,473 Greater Toronto Airports Authority, 5.260%, 2018/04/17 530, , ,230 Greater Toronto Airports Authority, 6.470%, 2034/02/02 580, , ,066 Greater Toronto Airports Authority, 5.630%, 2040/06/07 460, , ,714 Great-West Lifeco Inc., 6.140%, 2018/03/21 750, , ,005 Holcim Finance (Canada) Inc., 5.900%, 2013/06/21 325, , ,322 Hydro One Inc., 4.400%, 2020/06/01 550, , ,125 Par Average Fair Issuer / Interest rate / Maturity date value ($) cost ($) value ($) IGM Financial Inc., 7.350%, 2019/04/08 575, , ,493 John Deere Credit Inc., 4.400%, 2011/03/30 125, , ,535 John Deere Credit Inc., 2.400%, 2013/02/01 550, , ,490 John Deere Credit Inc., 3.900%, 2013/07/29 445, , ,466 John Deere Credit Inc., 5.450%, 2015/09/16 355, , ,966 Loblaw Companies Limited, 5.900%, 2036/01/18 1,080,000 1,014,277 1,049,349 Manulife Finance Holdings Limited, 6.646%, 2011/11/30 265, , ,496 Manulife Financial Corporation, 4.896%, 2014/06/02 875, , ,135 METRO INC., 5.970%, 2035/10/15 225, , ,687 National Bank of Canada, 5.550%, 2013/11/15 1,065,000 1,109,293 1,143,233 National Bank of Canada, 3.147%, 2015/02/11 535, , ,691 National Bank of Canada, 4.030%, 2015/05/26 385, , ,896 NorthwestConnect General Partnership, 5.950%, 2041/04/30 500, , ,434 Rogers Communications Inc., 5.800%, 2016/05/26 545, , ,321 Rogers Communications Inc., 5.380%, 2019/11/04 805, , ,270 Royal Bank of Canada, 5.000%, 2013/06/06 510, , ,774 Royal Bank of Canada, 4.970%, 2014/06/05 655, , ,511 Royal Bank of Canada, 4.350%, 2015/06/15 1,355,000 1,368,066 1,388,154 Royal Bank of Canada, 3.660%, 2017/01/25 1,165,000 1,166,701 1,166,820 Shaw Communications Inc., 6.500%, 2014/06/02 465, , ,459 Shaw Communications Inc., 5.650%, 2019/10/01 595, , ,058 Sun Life Assurance Company of Canada, 6.150%, 2012/06/30 365, , ,221 Suncor Energy Inc., 5.390%, 2037/03/26 905, , ,256 TELUS Corporation, 5.050%, 2019/12/04 570, , ,806 Toronto-Dominion Bank, (The), 4.854%, 2013/02/13 730, , ,323 Toronto-Dominion Bank, (The), 4.779%, 2016/12/14 300, , ,700 TransCanada PipeLines Limited, 8.290%, 2026/02/05 220, , ,934 TransCanada PipeLines Limited, 6.280%, 2028/05/26 340, , ,270 TransCanada PipeLines Limited, 6.500%, 2030/12/09 105, , ,375 TransCanada PipeLines Limited, 8.050%, 2039/02/17 240, , ,909 Wells Fargo Financial Canada Corporation, 3.970%, 2014/11/03 980, ,961 1,001,537 ASSET-BACKED SECURITIES 2.39% CARDS II Trust, 3.048%, 2013/05/15 1,070,000 1,070,000 1,081,788 Gloucester Credit Card Trust, 5.335%, 2013/05/15 95,000 95,000 99,731 Master Credit Card Trust, 5.237%, 2013/05/21 1,245,000 1,327,700 1,334,334 Merrill Lynch Financial Assets Inc., 4.640%, 2011/02/12 34,777 34,777 35,096 Merrill Lynch Financial Assets Inc., 4.613%, 2012/05/12 121, , ,975 SCORE Trust, 4.949%, 2014/02/20 140, , ,037 TOTAL CANADIAN BONDS 96.15% 110,427, ,441,764 U.S. BONDS CORPORATE 0.18% Goldman Sachs Group, Inc., (The), 5.200%, 2017/04/19 225, , ,851 TOTAL U.S. BONDS 0.18% 204, ,851 FOREIGN BONDS SUPRANATIONALS 1.61% Inter-American Development Bank, 4.400%, 2026/01/26 1,135,000 1,068,098 1,116,770 International Bank for Reconstruction and Development, 4.300%, 2012/12/15 745, , ,222 TOTAL FOREIGN BONDS 1.61% 1,812,346 1,902,992 TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 97.94% 112,443, ,557,607 SHORT-TERM INVESTMENTS Government of Canada, 0.409%, 2010/08/19 750, , ,177 Government of Canada, 0.539%, 2010/09/16 1,080,000 1,078,439 1,078,440 National Bank of Canada, 0.500%, 2010/07/02 350, , ,000 Royal Bank of Canada, 0.450%, 2010/07/02 350, , ,000 TOTAL SHORT-TERM INVESTMENTS 2.14% 2,527,616 2,527,617 TOTAL INVESTMENTS % 114,971, ,085,224 Other assets, less liabilities (0.08%) (99,351 ) (99,351 ) NET ASSETS % 114,872, ,985,873 Standard Life 7

8 Specific note to interim unaudited financial statements Ideal Canadian Bond Fund Financial instrument risks (note 7) Fair value measurements The following table illustrates the classification of the Fund s financial instruments within the fair value hierarchy: as at June 30, 2010 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 2,527,617-2,527,617 Bonds - 113,327,518 2,230, ,557,607 as at December 31, 2009 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 2,000,000-2,000,000 Bonds - 104,362,180 1,423, ,785,650 The reconciliation of Level 3 fair value measurements was as follows: Bonds as at June 30, 2010 ($) as at December 31, 2009 ($) Balance beginning of period 1,423,470 1,830,560 Purchases 1,782,023 - Sales (623,900) (368,858) Net transfers into and/or out of Level 3 (430,854) - Net realized gain (loss) 2,690 15,437 Change in unrealized appreciation (depreciation) 76,660 (53,669) Balance end of period 2,230,089 1,423,470 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 debt securities and other assets for which the carrying amount represents the maximum credit risk exposure. The credit risk exposure of debt securities by credit rating was as follows: Credit ratings % of debt securities as at June 30, 2010 as at December 31, 2009 AAA AA A BBB 8 11 Total 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 Less than 1 year ($) 1-5 years ($) 5-10 years ($) as at June 30, ,690,247 65,187,317 18,743,697 as at December 31, ,000,000 54,076,697 22,798, years ($) Greater than 20 years ($) Total ($) as at June 30, ,037,725 18,426, ,085,224 as at December 31, ,954,651 11,956, ,785,650 As at June 30, 2010, 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 $7,035,000 (December 31, $6,611,000). 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. 8 Standard Life

9 Ideal Corporate High Yield Bond Fund Statement of net assets ASSETS Investments, at fair value* 60,453,088 48,762,654 Cash 4,251 - Subscriptions receivable 44,424 73,428 Receivable from investments sold 9,018 6,908 Other accounts receivable Total assets 60,511,107 48,843,022 LIABILITIES Redemptions payable 40,748 51,006 Payable on investments purchased 9,251 30,250 Management fees payable 4, Audit fees payable 1,890 - Other liabilities Total liabilities 56,196 81,669 NET ASSETS 60,454,911 48,761,353 Net assets per unit (note 3) Back-end Load Option No-load Option No-load Option with Resets Platinum No-load Option /100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 58,044,956 47,737,549 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 936, ,241 Other income (loss) 3,551 1,269 Total investment income (loss) 939, ,510 EXPENSES (note 5) Management fees 45,127 19,963 Audit fees 1,985 1,823 Other operating expenses ,195 21,871 Less: expenses absorbed by the manager (83) (85) Total expenses 47,112 21,786 NET INVESTMENT INCOME (LOSS) 892, ,724 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 100,731 (132,775) Change in unrealized appreciation (depreciation) in value of investments 1,383,027 2,716,310 NET GAIN (LOSS) ON INVESTMENTS 1,483,758 2,583,535 ASSETS FROM OPERATIONS 2,376,390 3,329,259 Increase (decrease) in net assets from operations per unit Back-end Load Option No-load Option No-load Option with Resets Platinum No-load Option /100 Series /100 Platinum Series 0.39 N/A 100/100 Series /100 Platinum Series 0.54 N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS 2,376,390 3,329,259 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 17,784,280 14,821,848 Payments for units redeemed (8,467,112 ) (5,043,862) Net capital unit transactions 9,317,168 9,777,986 ASSETS FOR THE PERIOD 11,693,558 13,107,245 NET ASSETS - beginning of period 48,761,353 25,438,229 NET ASSETS - end of period 60,454,911 38,545,474 Standard Life 9

10 Ideal Corporate High Yield Bond Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Corporate High Yield Bond Fund, A-Series 5,465,674 58,044,956 60,453,088 TOTAL INVESTMENTS % 58,044,956 60,453,088 Other assets, less liabilities 0.00% 1,823 1,823 NET ASSETS % 58,046,779 60,454,911 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer / Interest rate / Maturity date Par value ($) cost ($) value ($) underlying fund Standard Life Corporate High Yield Bond Fund Government of Canada, 2.500%, 2015/06/01 5,630,000 5,559,919 5,675, IGM Financial Inc., 6.580%, 2018/03/07 3,700,000 4,093,137 4,173, American Express Canada Credit Corporation, 4.853%, 2014/10/03 3,850,000 3,850,000 4,027, Manulife Financial Capital Trust II, 7.405%, 2019/12/31 3,400,000 3,532,250 3,948, Loblaw Companies Limited, 6.050%, 2034/06/09 3,500,000 3,445,560 3,461, Toronto-Dominion Bank, (The), 4.779%, 2016/12/14 3,350,000 3,125,791 3,447, Sobeys Inc., 7.160%, 2018/02/26 2,900,000 3,165,445 3,363, Wells Fargo Financial Canada Corporation, 3.970%, 2014/11/03 3,280,000 3,307,309 3,352, Toronto-Dominion Bank, (The), 5.763%, 2017/12/18 3,015,000 2,897,829 3,235, Richardson International Ltd., 5.486%, 2014/09/25 3,100,000 3,100,000 3,150, Goldman Sachs Group, Inc., (The), 5.250%, 2016/06/01 3,000,000 3,067,660 3,052, Manulife Finance (Delaware), L.P., 4.448%, 2016/12/15 3,000,000 2,638,690 3,021, Bank of America Corporation, 4.360%, 2015/09/21 3,000,000 2,984,900 2,927, TD Capital Trust III, 7.243%, 2018/12/31 2,505,000 2,680,844 2,907, Bank of Montreal, 6.020%, 2018/05/02 2,500,000 2,798,625 2,833, Molson Coors Capital Finance ULC, 5.000%, 2015/09/22 2,600,000 2,688,184 2,739, Scotiabank Capital Trust, 6.626%, 2012/06/30 2,500,000 2,703,900 2,685, International Inc., 4.990%, 2020/06/16 2,500,000 2,498,450 2,596, Government of Canada, 3.000%, 2015/12/01 2,500,000 2,567,375 2,566, Canadian Imperial Bank of Commerce, 3.300%, 2014/11/19 2,500,000 2,499,325 2,522, Rogers Wireless Inc., 7.625%, 2011/12/15 2,250,000 2,391,857 2,426, Enbridge Pipelines Inc., 5.330%, 2040/04/06 2,300,000 2,299,655 2,368, Bell Aliant Regional Communications Income Fund, 6.290%, 2015/02/17 2,100,000 2,099,160 2,319, Enbridge Inc., 5.750%, 2039/09/02 2,200,000 2,197,822 2,298, Cameco Corporation, 4.700%, 2015/09/16 2,200,000 2,207,326 2,295, Standard Life

11 Specific note to interim unaudited financial statements Ideal Corporate High Yield Fund Financial instrument risks (note 7) Fair value measurements As at June 30, 2010 and December 31, 2009, 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 Less than 1 year ($) 1-5 years ($) 5-10 years ($) as at June 30, ,221,032 18,837,003 24,287,009 as at December 31, ,541 16,713,536 17,686, years ($) Greater than 20 years ($) Total ($) as at June 30, ,886,683 9,699,374 59,931,101 as at December 31, ,493,738 6,720,392 47,947,763 As at June 30, 2010, 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 respective decrease or increase in net assets would amount to approximately $3,802,000 (December 31, $3,057,000). The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in a currency other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in this currency relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD Net assets by currency ($) 342,505 Impact on net assets (+/-10%) ($) 34,251 as at December 31, 2009 USD Net assets by currency ($) 581,178 Impact on net assets (+/-10%) ($) 58,118 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 debt securities, other assets and forward foreign currency contracts. Standard Life 11

12 Ideal International Bond Fund Statement of net assets ASSETS Investments, at fair value* 4,888,786 5,276,254 Subscriptions receivable - 54,645 Other accounts receivable 3 - Total assets 4,888,789 5,330,899 LIABILITIES Redemptions payable 6,274 5,706 Management fees payable Audit fees payable 1,890 - Other liabilities Total liabilities 8,743 5,776 NET ASSETS 4,880,046 5,325,123 Net assets per unit (note 3) Back-end Load Option No-load Option No-load Option with Resets Platinum No-load Option /100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 5,128,082 5,703,059 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 5, ,058 Other income (loss) Total investment income (loss) 5, ,070 EXPENSES (note 5) Management fees 6,167 13,896 Audit fees 1,985 1,823 Other operating expenses ,160 15,751 Less: expenses absorbed by the manager (8) (32) Total expenses 8,152 15,719 NET INVESTMENT INCOME (LOSS) (2,571 ) 101,351 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (115,658) (253,793) Change in unrealized appreciation (depreciation) in value of investments 187,509 (1,026,709) NET GAIN (LOSS) ON INVESTMENTS 71,851 (1,280,502) ASSETS FROM OPERATIONS 69,280 (1,179,151 ) Increase (decrease) in net assets from operations per unit Back-end Load Option 0.16 (1.33) No-load Option 0.23 (1.25) No-load Option with Resets 0.16 (1.49) Platinum No-load Option /100 Series 0.21 (0.47) 75/100 Platinum Series 0.22 N/A 100/100 Series (0.04) (0.12 ) 100/100 Platinum Series 0.21 N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS 69,280 (1,179,151 ) CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 962,220 5,508,114 Payments for units redeemed (1,476,577 ) (9,965,862) Net capital unit transactions (514,357) (4,457,748) ASSETS FOR THE PERIOD (445,077 ) (5,636,899) NET ASSETS - beginning of period 5,325,123 11,856,225 NET ASSETS - end of period 4,880,046 6,219, Standard Life

13 Ideal International Bond Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life International Bond Fund, A-Series 447,995 5,128,082 4,888,786 TOTAL INVESTMENTS % 5,128,082 4,888,786 Other assets, less liabilities (0.18%) (8,740) (8,740) NET ASSETS % 5,119,342 4,880,046 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency Par value cost ($) value ($) underlying fund Standard Life International Bond Fund United States Treasury, 1.375%, 2012/09/15, (USD) 4,400,000 4,582,113 4,757, Province of Quebec, 1.600%, 2013/05/09, (JPY) 377,050,000 3,708,644 4,598, Province of Quebec, 3.625%, 2015/02/10, (EUR) 3,300,000 5,069,339 4,558, Government of Japan, 0.500%, 2014/12/20, (JPY) 322,000,000 3,752,018 3,892, Government of France, 4.000%, 2038/10/25, (EUR) 2,329,000 3,269,345 3,210, United Kingdom Gilt, 4.750%, 2020/03/07, (GBP) 1,766,000 3,528,209 3,119, Province of Quebec, 7.500%, 2029/09/15, (USD) 1,644,000 2,386,813 2,429, Province of Ontario, 0.210%, 2010/08/20, (USD) 2,000,000 2,040,906 2,128, Province of Ontario, 4.000%, 2019/10/07, (USD) 1,925,000 2,060,896 2,112, Bundesrepublik Deutschland, 4.000%, 2037/01/04, (EUR) 1,125,000 1,658,816 1,651, European Investment Bank, 3.125%, 2014/04/15, (EUR) 1,200,000 1,827,259 1,646, Province of New Brunswick, 5.200%, 2017/02/21, (USD) 1,207,000 1,336,924 1,471, United States Treasury, 4.375%, 2039/11/15, (USD) 1,275,000 1,242,290 1,455, Government of Canada, 3.500%, 2020/01/13, (EUR) 1,000,000 1,455,114 1,386, The Commonwealth of Australia, 6.500%, 2013/05/15, (AUD) 1,180,000 1,036,071 1,119, Province of Ontario, 2.700%, 2015/06/16, (USD) 1,000,000 1,035,995 1,086, Bundesrepublik Deutschland, 3.750%, 2013/07/04, (EUR) 750,000 1,044,396 1,061, Province of Ontario, 4.000%, 2019/12/03, (EUR) 700,000 1,109, , Government of Norway, 4.500%, 2019/05/22, (NOK) 5,175,000 1,005, , Province of Ontario, zero-coupon, 2027/06/02 2,000, , , Province of Quebec, 5.750%, 2015/07/15, (AUD) 960, , , Kreditanstalt fur Wiederaufbau, 3.500%, 2015/07/04, (EUR) 559, , , National Bank of Canada, 0.500%, 2010/07/02 750, , , Royal Bank of Canada, 0.450%, 2010/07/02 750, , , Government of France, 3.500%, 2015/04/25, (EUR) 470, , , Standard Life 13

14 Specific note to interim unaudited financial statements Ideal International Bond Fund Financial instrument risks (note 7) Fair value measurements As at June 30, 2010 and December 31, 2009, 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 Less than 1 year ($) 1-5 years ($) 5-10 years ($) as at June 30, ,423 2,317,687 1,268,100 as at December 31, ,217 1,199,880 1,699, years ($) Greater than 20 years ($) Total ($) as at June 30, , ,407 4,903,068 as at December 31, ,305 1,407,545 5,091,242 As at June 30, 2010, 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 respective decrease or increase in net assets would amount to approximately $314,000 (December 31, $428,000). The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in currencies other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in these currencies relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 EUR USD JPY GBP Net assets by currency ($) Impact on net assets (+/-10%) ($) Other currencies 1,665,638 1,505, , , , , ,554 88,518 38,683 28,144 as at December 31, 2009 EUR USD JPY GBP Net assets by currency ($) Impact on net assets (+/-10%) ($) Other currencies 1,811,211 1,635, , , , , ,557 89,681 52,255 35,263 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 debt securities, other assets and forward foreign currency contracts. 14 Standard Life

15 Ideal Income Balanced Fund Statement of net assets ASSETS Investments, at fair value* 136,701, ,094,013 Short-term investments 7,045,721 2,899,194 Cash 958, ,732 Subscriptions receivable 773, ,822 Interest accrued 446, ,268 Dividends receivable 200, ,399 Receivable from investments sold 407,097 - Other accounts receivable 25,175 17,034 Total assets 146,558, ,278,462 LIABILITIES Redemptions payable 169, ,584 Payable on investments purchased 1,881,725 - Management fees payable 144,468 17,581 Custodian fees payable Audit fees payable 2,798 - Other liabilities 7, Total liabilities 2,205, ,263 NET ASSETS 144,353, ,004,199 Net assets per unit (note 3) Back-end Load Option No-load Option No-load Option with Resets Platinum No-load Option /100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 129,187, ,602,407 Statement of operations for the periods ended June 30 INVESTMENT INCOME Interest 1,479,730 1,580,164 Dividends 1,173,815 1,233,441 Foreign exchange gain (loss) 50,099 (10,743) Other income (loss) Less: foreign withholding taxes (32,968) (38,706) Total investment income (loss) 2,670,809 2,764,156 EXPENSES (note 5) Management fees 1,761,167 1,528,008 Custodian fees 5,959 5,257 Audit fees 2,938 2,934 Interest Other operating expenses ,770,354 1,536,748 Less: expenses absorbed by the manager (213 ) (329) Total expenses 1,770,141 1,536,419 NET INVESTMENT INCOME (LOSS) 900,668 1,227,737 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 54,880 (708,791) Net realized gain (loss) on forward foreign currency contracts (34,870) 566 Change in unrealized appreciation (depreciation) in value of investments (977,336) 7,180,676 Transaction costs (note 2) (7,924) (12,202) NET GAIN (LOSS) ON INVESTMENTS (965,250) 6,460,249 ASSETS FROM OPERATIONS (64,582) 7,687,986 Increase (decrease) in net assets from operations per unit Back-end Load Option No-load Option No-load Option with Resets (0.02) 0.99 Platinum No-load Option /100 Series (0.26) /100 Platinum Series (0.11 ) N/A 100/100 Series (0.16 ) /100 Platinum Series (0.08) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (64,582) 7,687,986 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 26,450,715 9,447,441 Payments for units redeemed (15,037,138) (15,553,147 ) Net capital unit transactions 11,413,577 (6,105,706) ASSETS FOR THE PERIOD 11,348,995 1,582,280 NET ASSETS - beginning of period 133,004, ,155,844 NET ASSETS - end of period 144,353, ,738,124 Standard Life 15

16 Ideal Income Balanced Fund Statement of portfolio investments as at June 30, 2010 Par Average Fair Issuer / Interest rate / Maturity date value ($) cost ($) value ($) CANADIAN BONDS FEDERAL AND FEDERALLY GUARANTEED 11.95% Canada Housing Trust No. 1, 4.550%, 2012/12/15 5,630,000 5,939,373 5,987,387 Canada Housing Trust No. 1, 2.750%, 2014/12/15 2,250,000 2,231,238 2,263,741 Canada Housing Trust No. 1, 1.009%, 2015/03/15 2,055,000 2,055,205 2,055,055 Canada Housing Trust No. 1, 3.150%, 2015/06/15 170, , ,437 Government of Canada, 2.000%, 2012/09/01 3,705,000 3,708,081 3,740,846 Government of Canada, 2.500%, 2015/06/01 320, , ,569 Government of Canada, 4.000%, 2017/06/01 2,400,000 2,549,928 2,587,740 Government of Canada, 3.500%, 2020/06/01 1,975 1,931 2,045 Government of Canada, 4.000%, 2041/06/01 110, , ,818 PROVINCIAL AND PROVINCIALLY GUARANTEED 11.06% Financement-Québec, 5.250%, 2034/06/01 610, , ,237 Province of British Columbia, 5.700%, 2029/06/18 735, , ,582 Province of New Brunswick, 4.800%, 2039/09/26 190, , ,524 Province of Ontario, 4.500%, 2012/12/02 4,420,000 4,669,736 4,681,461 Province of Ontario, 4.750%, 2013/06/02 1,280,000 1,366,571 1,370,414 Province of Ontario, 6.500%, 2029/03/08 625, , ,908 Province of Ontario, 4.600%, 2039/06/02 1,815,000 1,755,730 1,824,502 Province of Quebec, 5.500%, 2014/12/01 1,295,000 1,408,473 1,440,678 Province of Quebec, 6.000%, 2029/10/01 1,315,000 1,485,358 1,545,441 Province of Quebec, 5.000%, 2041/12/01 2,140,000 2,195,086 2,253,497 Province of Saskatchewan, 4.750%, 2040/06/01 365, , ,816 MUNICIPALS AND SCHOOLS 4.60% Municipal Finance Authority of British Columbia, 4.875%, 2019/06/03 630, , ,749 Municipal Finance Authority of British Columbia, 4.950%, 2027/12/01 440, , ,480 Ontario School Boards Financing Corporation, 6.550%, 2026/10/19 885, ,019 1,020,305 Regional Municipality of York, 5.000%, 2019/04/29 720, , ,581 Toronto, City of, 4.950%, 2018/06/27 835, , ,513 Ville de Montréal, 4.950%, 2014/12/10 845, , ,680 Ville de Montréal, 5.000%, 2018/12/01 1,010, ,607 1,065,535 Ville de Montréal, 5.450%, 2019/12/01 620, , ,021 Winnipeg, City of, 5.200%, 2036/07/17 190, , ,791 CORPORATE 17.62% 407 International Inc., 4.990%, 2020/06/16 190, , ,343 Aeroports de Montreal, 5.472%, 2040/04/16 315, , ,687 Alliance Pipeline Limited Partnership, 7.217%, 2025/12/31 56,142 56,142 66,644 American Express Canada Credit Corporation, 4.853%, 2014/10/03 210, , ,701 Bank of Montreal, 5.050%, 2013/09/03 535, , ,794 Bank of Nova Scotia, (The), 4.990%, 2013/03/27 985,000 1,038,922 1,035,961 Bank of Nova Scotia, (The), 6.000%, 2013/10/03 615, , ,815 Bell Canada, 5.000%, 2017/02/15 75,000 67,688 78,114 Bell Canada, 7.850%, 2031/04/02 105, , ,844 Bell Canada, 7.300%, 2032/02/23 115, , ,771 Bell Canada, 6.100%, 2035/03/16 260, , ,426 British Columbia Ferry Services Inc., 5.581%, 2038/01/11 185, , ,094 Caisse centrale Desjardins, 3.114%, 2014/12/04 450, , ,219 Caisse centrale Desjardins, 3.788%, 2015/06/08 35,000 35,000 35,693 Canadian Hydro Developers, Inc., 7.027%, 2018/06/11 450, , ,027 Canadian Imperial Bank of Commerce, 3.050%, 2013/06/03 695, , ,454 Canadian Imperial Bank of Commerce, 3.300%, 2014/11/19 415, , ,688 Canadian Imperial Bank of Commerce, 3.100%, 2015/03/02 530, , ,959 Canadian Imperial Bank of Commerce, 6.000%, 2018/06/06 120, , ,427 Canadian Pacific Railway Limited, 6.250%, 2018/06/01 225, , ,485 CDP Financial Inc., 4.600%, 2020/07/15 355, , ,868 Citigroup Finance Canada Inc., 6.750%, 2014/09/22 430, , ,677 CU Inc., 4.883%, 2012/11/01 450, , ,578 CU Inc., 5.580%, 2038/05/26 130, , ,000 Enbridge Inc., 5.170%, 2016/05/19 160, , ,010 Enbridge Inc., 4.770%, 2019/09/02 395, , ,835 Enbridge Pipelines Inc., 5.330%, 2040/04/06 640, , ,080 EPCOR Utilities Inc., 6.650%, 2038/04/15 175, , ,343 Finning International Inc., 6.020%, 2018/06/01 415, , ,612 GE Capital Canada Funding Company, 5.150%, 2013/06/06 865, , ,735 GE Capital Canada Funding Company, 4.240%, 2015/06/08 90,000 89,996 91,602 GE Capital Canada Funding Company, 5.730%, 2037/10/22 530, , ,624 Greater Toronto Airports Authority, 4.850%, 2017/06/01 295, , ,219 Greater Toronto Airports Authority, 6.470%, 2034/02/02 375, , ,292 Greater Toronto Airports Authority, 5.630%, 2040/06/07 255, , ,820 Holcim Finance (Canada) Inc., 5.900%, 2013/06/21 695, , ,319 Hydro One Inc., 4.400%, 2020/06/01 315, , ,935 IGM Financial Inc., 7.350%, 2019/04/08 705, , ,344 John Deere Credit Inc., 4.400%, 2011/03/30 200, , ,056 John Deere Credit Inc., 2.400%, 2013/02/01 335, , ,689 John Deere Credit Inc., 3.900%, 2013/07/29 265, , ,210 John Deere Credit Inc., 5.450%, 2015/09/16 330, , ,503 Loblaw Companies Limited, 5.900%, 2036/01/18 820, , ,728 Par value ($) Average Fair Issuer / Interest rate / Maturity date or shares cost ($) value ($) Manulife Finance Holdings Limited, 6.646%, 2011/11/30 210, , ,072 Manulife Financial Corporation, 4.896%, 2014/06/02 520, , ,012 METRO INC., 5.970%, 2035/10/15 190, , ,358 National Bank of Canada, 5.550%, 2013/11/15 810, , ,501 National Bank of Canada, 3.147%, 2015/02/11 305, , ,254 National Bank of Canada, 4.030%, 2015/05/26 220, , ,369 NorthwestConnect General Partnership, 5.950%, 2041/04/30 470, , ,488 Rogers Communications Inc., 5.800%, 2016/05/26 320, , ,785 Rogers Communications Inc., 5.380%, 2019/11/04 165, , ,205 Royal Bank of Canada, 4.970%, 2014/06/05 545, , ,196 Royal Bank of Canada, 4.350%, 2015/06/15 435, , ,644 Royal Bank of Canada, 3.660%, 2017/01/25 660, , ,031 Shaw Communications Inc., 6.500%, 2014/06/02 280, , ,578 Shaw Communications Inc., 5.650%, 2019/10/01 345, , ,210 Sun Life Assurance Company of Canada, 6.150%, 2012/06/30 80,000 85,671 85,309 Suncor Energy Inc., 5.390%, 2037/03/26 300, , ,157 TELUS Corporation, 5.050%, 2019/12/04 120, , ,433 Toronto-Dominion Bank, (The), 4.854%, 2013/02/13 325, , ,178 Toronto-Dominion Bank, (The), 4.779%, 2016/12/14 515, , ,935 TransCanada PipeLines Limited, 8.290%, 2026/02/05 210, , ,891 TransCanada PipeLines Limited, 6.280%, 2028/05/26 357, , ,883 TransCanada PipeLines Limited, 6.500%, 2030/12/09 115, , ,458 TransCanada PipeLines Limited, 8.050%, 2039/02/17 205, , ,235 Wells Fargo Financial Canada Corporation, 3.970%, 2014/11/03 665, , ,615 ASSET-BACKED SECURITIES 0.75% CARDS II Trust, 3.048%, 2013/05/15 475, , ,228 Gloucester Credit Card Trust, 5.335%, 2013/05/15 105, , ,229 Master Credit Card Trust, 5.237%, 2013/05/21 235, , ,862 Merrill Lynch Financial Assets Inc., 4.640%, 2011/02/12 80,536 80,536 81,274 Merrill Lynch Financial Assets Inc., 4.613%, 2012/05/12 124, , ,730 SCORE Trust, 4.949%, 2014/02/20 25,000 25,358 26,077 TOTAL CANADIAN BONDS 45.98% 64,769,442 66,374,775 U.S. BONDS CORPORATE 0.14% Goldman Sachs Group, Inc., (The), 5.200%, 2017/04/19 210, , ,661 TOTAL U.S. BONDS 0.14% 190, ,661 FOREIGN BONDS SUPRANATIONALS 1.14% Inter-American Development Bank, 4.400%, 2026/01/26 800, , ,150 International Bank for Reconstruction and Development, 4.300%, 2012/12/15 820, , ,371 TOTAL FOREIGN BONDS 1.14% 1,569,343 1,652,521 CANADIAN EQUITIES ENERGY 5.94% Canadian Oil Sands Trust 13, , ,365 Cenovus Energy Inc. 39, ,916 1,068,600 Enbridge Inc. 8, , ,472 EnCana Corporation 33, ,264 1,067,144 Imperial Oil Limited 62,300 1,099,963 2,415,994 ShawCor Ltd., A 6, , ,040 Suncor Energy Inc. 24, , ,997 TransCanada Corporation 64,500 1,604,167 2,296,845 MATERIALS 1.05% Barrick Gold Corporation 6, , ,576 CCL Industries Inc., Non-voting, B 21, , ,200 Goldcorp Inc. 6, , ,287 Labrador Iron Ore Royalty Income Fund 6, , ,200 INDUSTRIALS 2.51% Bombardier Inc., Subordinated Voting, B 90, , ,600 Canadian National Railway Company 39, ,751 2,403,794 Canadian Pacific Railway Limited 6, , ,008 IESI-BFC Ltd. 18, , , Standard Life

17 Ideal Income Balanced Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Shares cost ($) value ($) CONSUMER DISCRETIONARY 2.01% Astral Media Inc., Non-voting, A 9, , ,335 Canadian Tire Corporation, Limited 8, , ,090 Shaw Communications Inc. 40, , ,800 Thomson Reuters Corporation 35,200 1,572,522 1,341,120 CONSUMER STAPLES 2.67% Corby Distilleries Limited, A 22, , ,218 Jean Coutu Group (PJC) Inc., (The) 23, , ,935 Loblaw Companies Limited 19, , ,590 METRO INC., Subordinated Voting, A 16, , ,503 Saputo Inc. 19, , ,270 Shoppers Drug Mart Corporation 40,300 1,647,550 1,326,273 FINANCIALS 19.96% Bank of Montreal 59,800 2,618,987 3,452,852 Bank of Nova Scotia, (The) 96,800 3,664,944 4,747,072 Canadian Imperial Bank of Commerce 33,600 1,896,735 2,222,304 CI Financial Corp. 33, , ,520 Great-West Lifeco Inc. 30, , ,830 IGM Financial Inc. 32, ,655 1,198,976 Industrial Alliance Insurance and Financial Services Inc. 13, , ,680 Intact Financial Corporation 7, , ,300 Manulife Financial Corporation 106,000 2,725,204 1,637,700 National Bank of Canada 27,600 1,475,465 1,502,820 Power Corporation of Canada, Subordinated Voting 31, , ,769 Royal Bank of Canada 97,100 3,110,634 4,922,970 Sun Life Financial Inc. 63,440 2,536,047 1,773,782 Toronto-Dominion Bank, (The) 64,200 3,150,546 4,428,516 TELECOMMUNICATIONS 2.76% BCE Inc. 60,399 1,837,933 1,875,993 Bell Aliant Regional Communications Income Fund 40,268 1,177,886 1,023,613 TELUS Corporation 27, ,298 1,084,590 Par value ($) Average Fair Issuer / Interest rate / Maturity date or shares cost ($) value ($) FOREIGN EQUITIES Nestlé S.A., Sponsored (ADR) 25, ,909 1,277,520 Sanofi-Aventis, (ADR) 6, , ,139 TOTAL FOREIGN EQUITIES 1.02% 1,078,208 1,469,659 Transaction costs (note 2) (56,845 ) - TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 94.70% 129,187, ,701,656 SHORT-TERM INVESTMENTS Government of Canada, 0.283%, 2010/07/08 500, , ,620 Government of Canada, 0.300%, 2010/07/22 900, , ,276 Government of Canada, 0.375%, 2010/08/19 300, , ,715 Government of Canada, 0.539%, 2010/09/16 2,000,000 1,997,110 1,997,110 National Bank of Canada, 0.500%, 2010/07/02 1,675,000 1,675,000 1,675,000 Royal Bank of Canada, 0.450%, 2010/07/02 1,675,000 1,675,000 1,675,000 TOTAL SHORT-TERM INVESTMENTS 4.88% 7,045,721 7,045,721 TOTAL INVESTMENTS 99.58% 136,233, ,747,377 Other assets, less liabilities 0.42% 605, ,817 NET ASSETS % 136,838, ,353,194 TOTAL CANADIAN EQUITIES 36.90% 44,487,352 53,260,667 U.S. EQUITIES ENERGY 0.60% Exxon Mobil Corporation 14,200 1,018, ,083 INDUSTRIALS 1.22% General Electric Company 33,800 1,384, ,802 United Technologies Corporation 18,000 1,022,991 1,242,708 CONSUMER STAPLES 2.81% Altria Group Inc. 15,300 1,004, ,093 PepsiCo Inc. 18,400 1,238,253 1,193,144 Philip Morris International Inc. 15, , ,496 Procter & Gamble Company, (The) 17,872 1,163,089 1,139,689 Wal-Mart Stores Inc. 12, , ,772 HEALTH CARE 0.90% Johnson & Johnson 11, , ,679 Pfizer Inc. 40,169 1,257, ,386 FINANCIALS 0.80% Bank of New York Mellon Corporation, (The) 17, , ,559 U.S. Bancorp 22, , ,366 Wells Fargo & Company 5, , ,056 TELECOMMUNICATIONS 0.45% Verizon Communications Inc. 22,000 1,123, ,028 UTILITIES 0.35% NextEra Energy, Inc. 9, , ,028 TRUST UNITS 2.39% Standard & Poor s Depositary Receipt 31,400 3,426,127 3,450,484 TOTAL U.S. EQUITIES 9.52% 17,148,996 13,745,373 Standard Life 17

18 Specific note to interim unaudited financial statements Ideal Income Balanced Fund Financial instrument risks (note 7) Fair value measurements The following table illustrates the classification of the Fund s financial instruments within the fair value hierarchy: as at June 30, 2010 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) 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. Short-term investments - 7,045,721-7,045,721 Interest rate risk exposure Less than 1 year ($) 1-5 years ($) 5-10 years ($) Bonds - 66,602,887 1,623,070 68,225,957 Equities 68,475, ,475,699 as at December 31, 2009 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 2,899,194-2,899,194 Bonds - 61,567,153 1,367,558 62,934,711 Equities 64,894,747 1,264,555-66,159,302 Equities with a fair value of $1,264,555 (December 31, 2009 $Nil) were transferred from Level 2 to Level 1 during the period as additonal pricing sources became available. The reconciliation of Level 3 fair value measurements was as follows: Bonds as at June 30, 2010 ($) as at December 31, 2009 ($) Balance beginning of period 1,367,558 1,772,399 Purchases 1,024,077 - Sales (352,202) (379,397) Net transfers into and/or out of Level 3 (478,728) - Net realized gain (loss) 1,523 16,187 Change in unrealized appreciation (depreciation) 60,842 (41,631) Balance end of period 1,623,070 1,367,558 Market risk The Fund is exposed to market risk by its equity investments. As at June 30, 2010, 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 $6,848,000 (December 31, $6,616,000). In practice, actual results may differ materially from this sensitivity analysis. as at June 30, ,331,051 37,347,592 13,047,299 as at December 31, ,899,194 28,211,848 20,242, years ($) Greater than 20 years ($) Total ($) as at June 30, ,535,151 11,010,585 75,271,678 as at December 31, ,522,866 6,957,937 65,833,905 As at June 30, 2010, 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 $4,150,000 (December 31, $3,829,000). The Fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund is exposed to currency risk since it holds assets and liabilities denominated in a currency other than Canadian dollars, the functional currency. The table below summarizes the Fund s exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in this currency relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD Net assets by currency ($) 15,729,509 Impact on net assets (+/-10%) ($) 1,572,951 as at December 31, 2009 USD Net assets by currency ($) 13,490,020 Impact on net assets (+/-10%) ($) 1,349,002 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 debt securities and other assets 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 Credit ratings as at June 30, 2010 as at December 31, 2009 AAA AA A BBB 7 11 Total Standard Life

19 Ideal Russell Retirement Essentials Portfolio Statement of net assets ASSETS Investments, at fair value* 637, ,067 Subscriptions receivable Total assets 637, ,067 LIABILITIES Redemptions payable Management fees payable Other liabilities 39 1 Total liabilities 1, NET ASSETS 636, ,046 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 633, ,018 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 6, Audit fees 1,884 1,988 8,490 2,617 Less: expenses absorbed by the manager (1,884) (1,988) Total expenses 6, NET INVESTMENT INCOME (LOSS) (6,606) (629) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments Change in unrealized appreciation (depreciation) in value of investments (505) 3,263 NET GAIN (LOSS) ON INVESTMENTS (375 ) 3,267 ASSETS FROM OPERATIONS (6,981) 2,638 Increase (decrease) in net assets from operations per unit 75/100 Series (0.24) /100 Platinum Series (0.04) N/A 100/100 Series (0.10 ) /100 Platinum Series (0.05) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (6,981) 2,638 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 530,712 45,789 Payments for units redeemed (7,879 ) - Net capital unit transactions 522,833 45,789 ASSETS FOR THE PERIOD 515,852 48,427 NET ASSETS - beginning of period 121,046 - NET ASSETS - end of period 636,898 48,427 Standard Life 19

20 Ideal Russell Retirement Essentials Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Russell Retirement Essentials, Series O 54, , ,727 TOTAL INVESTMENTS % 633, ,727 Other assets, less liabilities (0.13%) (829) (829) NET ASSETS % 632, ,898 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Units cost ($) value ($) underlying fund Russell Retirement Essentials Portfolio Russell Fixed Income Pool, O Units 2,111,912 22,005,072 21,470, Russell Core Plus Fixed Income Pool, O Units 2,099,440 21,327,585 20,740, Russell Canadian Dividend Pool, O Units 752,121 8,156,757 7,975, Russell Global Equity Pool, O Units 539,688 5,256,503 5,308, Russell US Equity Pool, O Units 565,566 5,230,356 5,288, Russell Overseas Equity Pool, O Units 493,484 4,987,049 5,199, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. 20 Standard Life