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

21 Specific note to interim unaudited financial statements Ideal Russell Retirement Essentials Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through by its investments in the underlying funds. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $64,000 (December 31, $12,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. Standard Life 21

22 Ideal Monthly Income Fund Statement of net assets ASSETS Investments, at fair value* 197,647, ,914,399 Short-term investments 12,645,314 6,573,686 Cash 497, ,168 Subscriptions receivable 495, ,555 Interest accrued 628, ,443 Dividends receivable 339, ,397 Other accounts receivable 7,215 5,091 Total assets 212,259, ,191,739 LIABILITIES Redemptions payable 343, ,611 Payable on investments purchased 5,863,248 - Management fees payable 206,612 22,134 Custodian fees payable Audit fees payable 2,798 - Other liabilities 10,482 1,119 Total liabilities 6,427, ,127 NET ASSETS 205,832, ,788,612 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 201,828, ,031,959 Statement of operations for the periods ended June 30 INVESTMENT INCOME Interest 1,627,474 1,418,920 Dividends 1,905,916 1,650,342 Foreign exchange gain (loss) 21,858 (14,872) Less: foreign withholding taxes (43,560) (40,295) Total investment income (loss) 3,511,688 3,014,095 EXPENSES (note 5) Management fees 2,359,361 1,673,027 Custodian fees 7,966 5,740 Audit fees 2,938 2,934 Interest Other operating expenses ,370,699 1,682,107 Less: expenses absorbed by the manager (285) (360) Total expenses 2,370,414 1,681,747 NET INVESTMENT INCOME (LOSS) 1,141,274 1,332,348 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 292,195 (2,185,444) Net realized gain (loss) on forward foreign currency contracts 19,041 (220) Change in unrealized appreciation (depreciation) in value of investments (2,063,729) 11,397,116 Transaction costs (note 2) (28,662) (14,940) NET GAIN (LOSS) ON INVESTMENTS (1,781,155) 9,196,512 ASSETS FROM OPERATIONS (639,881) 10,528,860 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.01) 0.80 No-load Option (0.04) 0.79 No-load Option with Resets (0.09) 0.86 Platinum No-load Option /100 Series (0.21) /100 Platinum Series (0.59) N/A 100/100 Series (0.23) /100 Platinum Series (0.28) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (639,881) 10,528,860 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 58,931,988 13,870,976 Payments for units redeemed (20,248,111 ) (15,006,411 ) Net capital unit transactions 38,683,877 (1,135,435) ASSETS FOR THE PERIOD 38,043,996 9,393,425 NET ASSETS - beginning of period 167,788, ,748,668 NET ASSETS - end of period 205,832, ,142, Standard Life

23 Ideal Monthly Income 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 6.80% Canada Housing Trust No. 1, 4.550%, 2012/12/15 3,335,000 3,542,558 3,546,702 Government of Canada, 2.000%, 2012/09/01 735, , ,111 Government of Canada, 2.500%, 2015/06/01 350, , ,810 Government of Canada, 4.000%, 2017/06/01 2,500,000 2,656,175 2,695,563 Government of Canada, 5.750%, 2033/06/01 2,720,000 3,427,470 3,591,605 Government of Canada, 4.000%, 2041/06/01 2,860,000 2,833,010 3,063,257 PROVINCIAL AND PROVINCIALLY GUARANTEED 9.45% Financement-Québec, 5.250%, 2034/06/01 555, , ,790 Hydro-Québec, 5.000%, 2045/02/15 280, , ,548 Province of British Columbia, 4.700%, 2037/06/18 610, , ,506 Province of British Columbia, 4.950%, 2040/06/18 1,460,000 1,509,888 1,565,586 Province of New Brunswick, 5.500%, 2034/01/27 170, , ,317 Province of New Brunswick, 4.800%, 2039/09/26 370, , ,809 Province of Ontario, 6.500%, 2029/03/08 650, , ,144 Province of Ontario, 5.850%, 2033/03/08 3,441,000 3,990,333 4,038,537 Province of Ontario, 4.600%, 2039/06/02 3,175,000 3,096,717 3,191,621 Province of Quebec, 4.500%, 2019/12/01 3,650,000 3,691,736 3,801,066 Province of Quebec, 6.000%, 2029/10/01 245, , ,934 Province of Quebec, 5.000%, 2041/12/01 3,420,000 3,501,166 3,601,383 Province of Saskatchewan, 5.750%, 2029/03/05 73,000 84,658 85,105 MUNICIPALS AND SCHOOLS 2.60% Ontario School Board Trust, 5.900%, 2033/06/02 295, , ,445 Regional Municipality of York, 5.000%, 2019/04/29 235, , ,204 Toronto, City of, 4.500%, 2019/12/02 635, , ,510 Ville de Montréal, 5.000%, 2018/12/01 700, , ,490 Ville de Montréal, 5.450%, 2019/12/01 1,355,000 1,449,075 1,466,506 Ville de Montréal, 6.000%, 2043/06/01 155, , ,582 Winnipeg, City of, 5.200%, 2036/07/17 1,700,000 1,665,737 1,733,918 CORPORATE 17.83% Alliance Pipeline Limited Partnership, 7.181%, 2023/06/30 76,155 91,594 89,330 Alliance Pipeline Limited Partnership, 6.765%, 2025/12/31 36,010 41,931 41,349 American Express Canada Credit Corporation, 4.853%, 2014/10/03 190, , ,777 Bank of Montreal, 5.050%, 2013/09/03 300, , ,754 Bank of Montreal, 3.930%, 2015/04/27 630, , ,532 Bank of Nova Scotia, (The), 4.990%, 2013/03/27 170, , ,795 Bank of Nova Scotia, (The), 4.940%, 2014/04/15 515, , ,762 Bell Canada, 4.850%, 2014/06/30 600, , ,421 Bell Canada, 7.850%, 2031/04/02 90,000 87, ,009 Bell Canada, 7.300%, 2032/02/23 165, , ,628 Bell Canada, 6.100%, 2035/03/16 455, , ,996 British Columbia Ferry Services Inc., 5.021%, 2037/03/20 330, , ,221 Caisse centrale Desjardins, 3.114%, 2014/12/04 600, , ,625 Caisse centrale Desjardins, 3.788%, 2015/06/08 1,000,000 1,006,392 1,019,802 Cameco Corporation, 5.670%, 2019/09/02 385, , ,580 Canadian Hydro Developers, Inc., 7.027%, 2018/06/11 445, , ,672 Canadian Imperial Bank of Commerce, 4.950%, 2014/01/23 97, , ,859 Canadian Imperial Bank of Commerce, 3.300%, 2014/11/19 400, , ,554 Canadian Imperial Bank of Commerce, 4.750%, 2014/12/22 195, , ,165 Canadian Imperial Bank of Commerce, 6.000%, 2018/06/06 800, , ,512 Canadian Pacific Railway Limited, 6.250%, 2018/06/01 200, , ,654 Citigroup Finance Canada Inc., 4.750%, 2014/03/17 122, , ,835 Citigroup Finance Canada Inc., 6.750%, 2014/09/22 250, , ,836 CU Inc., 4.883%, 2012/11/01 365, , ,558 CU Inc., 5.096%, 2014/11/18 26,000 27,223 28,228 CU Inc., 5.896%, 2034/11/20 97, , ,918 Enbridge Inc., 4.670%, 2013/03/25 350, , ,649 Enbridge Inc., 4.770%, 2019/09/02 640, , ,176 Enbridge Inc., 7.200%, 2032/06/18 97, , ,462 Enbridge Inc., 5.570%, 2035/11/14 555, , ,218 Enbridge Pipelines Inc., 5.330%, 2040/04/06 650, , ,378 EnCana Corporation, 5.800%, 2018/01/18 185, , ,629 EPCOR Utilities Inc., 6.650%, 2038/04/15 440, , ,805 Finning International Inc., 6.020%, 2018/06/01 285, , ,950 FortisAlberta Inc., 5.330%, 2014/10/31 136, , ,714 FortisBC Inc., 5.600%, 2035/11/09 300, , ,872 Gaz Metropolitain and Company, Limited Partnership, 7.200%, 2027/11/19 83, , ,010 GE Capital Canada Funding Company, 5.150%, 2013/06/06 820, , ,200 GE Capital Canada Funding Company, 4.240%, 2015/06/08 700, , ,464 GE Capital Canada Funding Company, 5.530%, 2017/08/17 750, , ,790 GE Capital Canada Funding Company, 5.730%, 2037/10/22 440, , ,839 Greater Toronto Airports Authority, 4.700%, 2016/02/15 450, , ,541 Greater Toronto Airports Authority, 5.260%, 2018/04/17 235, , ,951 Greater Toronto Airports Authority, 6.450%, 2027/12/03 286, , ,891 Greater Toronto Airports Authority, 7.100%, 2031/06/04 170, , ,067 Par value ($) Average Fair Issuer / Interest rate / Maturity date or shares cost ($) value ($) Holcim Finance (Canada) Inc., 5.900%, 2013/06/21 455, , ,051 Hydro One Inc., 4.400%, 2020/06/01 600, , ,591 Hydro One Inc., 5.360%, 2036/05/20 220, , ,713 Hydro One Inc., 4.890%, 2037/03/13 335, , ,753 Hydro One Inc., 6.590%, 2043/04/22 49,000 61,737 59,510 IGM Financial Inc., 7.350%, 2019/04/08 620, , ,749 IGM Financial Inc., 7.450%, 2031/05/09 420, , ,313 IGM Financial Inc., 7.110%, 2033/03/07 251, , ,585 John Deere Credit Inc., 5.450%, 2015/09/16 300, , ,549 Loblaw Companies Limited, 5.400%, 2013/11/20 300, , ,529 Loblaw Companies Limited, 5.900%, 2036/01/18 745, , ,856 Manulife Financial Corporation, 4.670%, 2013/03/28 500, , ,108 METRO INC., 4.980%, 2015/10/15 700, , ,530 METRO INC., 5.970%, 2035/10/15 250, , ,207 National Bank of Canada, 5.550%, 2013/11/15 360, , ,445 National Bank of Canada, 4.030%, 2015/05/26 290, , ,714 NorthwestConnect General Partnership, 5.950%, 2041/04/30 500, , ,434 Richardson International Ltd., 5.486%, 2014/09/25 1,450,000 1,450,000 1,473,729 Rogers Communications Inc., 6.680%, 2039/11/04 485, , ,137 Royal Bank of Canada, 5.000%, 2013/06/06 550, , ,031 Royal Bank of Canada, 4.970%, 2014/06/05 205, , ,496 Royal Bank of Canada, 4.350%, 2015/06/15 175, , ,282 Royal Bank of Canada, 3.660%, 2017/01/25 1,205,000 1,203,032 1,206,882 Shaw Communications Inc., 6.500%, 2014/06/02 500, , ,032 Shaw Communications Inc., 5.650%, 2019/10/01 245, , ,671 Sobeys Inc., 7.160%, 2018/02/26 695, , ,022 Sun Life Assurance Company of Canada, 6.150%, 2012/06/30 305, , ,240 Sun Life Financial Inc., 4.950%, 2016/06/01 250, , ,136 Sun Life Financial Inc., 5.590%, 2018/01/30 805, , ,300 Suncor Energy Inc., 5.800%, 2018/05/22 170, , ,946 Suncor Energy Inc., 5.390%, 2037/03/26 195, , ,652 Terasen Gas Inc., 5.800%, 2038/05/13 330, , ,801 Toronto Hydro Corporation, 5.150%, 2017/11/14 190, , ,437 Toronto-Dominion Bank, (The), 4.779%, 2016/12/14 815, , ,635 TransCanada PipeLines Limited, 6.500%, 2030/12/09 750, , ,250 Union Gas Limited, 4.640%, 2016/06/30 1,800,000 1,734,660 1,900,457 Union Gas Limited, 8.750%, 2018/08/03 97, , ,430 Wells Fargo Financial Canada Corporation, 3.970%, 2014/11/03 550, , ,087 ASSET-BACKED SECURITIES 0.79% Broadway Credit Card Trust, 4.804%, 2014/03/17 345, , ,975 CARDS II Trust, 3.048%, 2013/05/15 500, , ,509 Gloucester Credit Card Trust, 5.335%, 2013/05/15 190, , ,461 SCORE Trust, 4.949%, 2014/02/20 533, , ,971 TOTAL CANADIAN BONDS 37.47% 74,641,108 77,131,233 U.S. BONDS CORPORATE 0.46% Goldman Sachs Group, Inc., (The), 5.200%, 2017/04/19 525, , ,652 Great-West Lifeco Finance (Delaware) LP, 7.127%, 2018/06/26 390, , ,425 TOTAL U.S. BONDS 0.46% 865, ,077 FOREIGN BONDS SUPRANATIONALS 0.47% Inter-American Development Bank, 4.400%, 2026/01/26 975, , ,340 TOTAL FOREIGN BONDS 0.47% 920, ,340 CANADIAN EQUITIES ENERGY 6.81% Canadian Oil Sands Trust 24, , ,051 Cenovus Energy Inc. 70,200 2,018,834 1,923,480 Enbridge Inc. 49,200 1,950,499 2,439,336 EnCana Corporation 56,200 1,812,710 1,811,888 Imperial Oil Limited 60,300 2,492,212 2,338,434 ShawCor Ltd., A 14, , ,444 Suncor Energy Inc. 60,676 2,243,692 1,900,979 TransCanada Corporation 71,800 2,660,459 2,556,798 MATERIALS 0.93% Barrick Gold Corporation 13, , ,160 CCL Industries Inc., Non-voting, B 21, , ,250 Goldcorp Inc. 6, , ,948 Labrador Iron Ore Royalty Income Fund 6, , ,200 Major Drilling Group International Inc. 6,000 93, ,140 Standard Life 23

24 Ideal Monthly Income Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Shares cost ($) value ($) INDUSTRIALS 5.25% Bombardier Inc., Subordinated Voting, B 99, , ,160 Canadian National Railway Company 47,600 2,275,795 2,904,076 Canadian Pacific Railway Limited 36,300 1,829,033 2,071,278 Finning International Inc. 44,500 1,123, ,535 GENIVAR Income Fund 63, ,313 1,609,681 IESI-BFC Ltd. 28, , ,547 Morneau Sobeco Income Fund 157,600 1,616,663 1,460,952 SNC-Lavalin Group Inc. 20, , ,505 CONSUMER DISCRETIONARY 2.33% Astral Media Inc., Non-voting, A 18, , ,112 Reitmans (Canada) Limited, Non-voting, A 48, , ,386 Shaw Communications Inc. 64,600 1,014,126 1,238,382 Thomson Reuters Corporation 51,700 2,197,412 1,969,770 CONSUMER STAPLES 3.21% Corby Distilleries Limited, A 31, , ,941 Jean Coutu Group (PJC) Inc., (The) 45, , ,271 Loblaw Companies Limited 31,900 1,030,031 1,231,659 METRO INC., Subordinated Voting, A 35, ,191 1,471,712 Saputo Inc. 34, ,454 1,031,220 Shoppers Drug Mart Corporation 61,400 2,696,439 2,020,674 HEALTH CARE 0.12% Biovail Corporation 12, , ,640 FINANCIALS 18.50% AGF Management Limited, Non-voting, B 46, , ,277 Bank of Montreal 67,400 4,037,808 3,891,676 Bank of Nova Scotia, (The) 124,300 5,762,948 6,095,672 Canadian Imperial Bank of Commerce 56,100 3,927,344 3,710,454 CI Financial Corp. 45,400 1,258, ,120 Great-West Lifeco Inc. 40, , ,212 IGM Financial Inc. 29,300 1,429,195 1,087,616 Industrial Alliance Insurance and Financial Services Inc. 17, , ,770 Intact Financial Corporation 14, , ,600 Manulife Financial Corporation 144,600 4,841,536 2,234,070 National Bank of Canada 38,900 2,355,310 2,118,105 Power Corporation of Canada, Subordinated Voting 41,600 1,315,560 1,061,216 RioCan Real Estate Investment Trust 61,400 1,351,631 1,164,758 Royal Bank of Canada 114,400 5,228,663 5,800,080 Sun Life Financial Inc. 67,000 3,122,958 1,873,320 Toronto-Dominion Bank, (The) 77,700 4,874,802 5,359,746 TELECOMMUNICATIONS 2.75% BCE Inc. 82,390 2,395,132 2,559,033 Bell Aliant Regional Communications Income Fund 51,326 1,435,435 1,304,707 TELUS Corporation 44,700 2,085,544 1,795,599 UTILITIES 0.53% Brookfield Infrastructure Partners L.P. 29, , ,852 Canadian Utilities Limited, Non-voting, A 12, , ,564 TRUST UNITS 4.66% ishares, S&P/TSX 60 Index Fund 577,500 9,817,525 9,598,050 Par value ($) Average Fair Issuer / Interest rate / Maturity date or shares cost ($) value ($) FINANCIALS 0.80% Bank of New York Mellon Corporation, (The) 17, , ,643 U.S. Bancorp 16, , ,805 Wells Fargo & Company 29, , ,566 INFORMATION TECHNOLOGY 0.69% International Business Machines Corporation 4, , ,347 Microsoft Corporation 32, , ,686 TELECOMMUNICATIONS 0.52% AT&T Inc. 15, , ,790 Verizon Communications Inc. 22, , ,938 UTILITIES 0.20% NextEra Energy, Inc. 8, , ,211 TRUST UNITS 5.91% Standard & Poor s Depositary Receipt 110,700 12,179,714 12,164,604 TOTAL U.S. EQUITIES 12.32% 28,874,344 25,355,829 FOREIGN EQUITIES Nestlé S.A., Sponsored (ADR) 9, , ,907 TOTAL FOREIGN EQUITIES 0.22% 349, ,907 Transaction costs (note 2) (139,908 ) - TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 96.03% 201,828, ,647,492 SHORT-TERM INVESTMENTS Government of Canada, 0.290%, 2010/07/08 500, , ,625 Government of Canada, 0.536%, 2010/09/16 3,000,000 2,995,689 2,995,689 National Bank of Canada, 0.500%, 2010/07/02 4,575,000 4,575,000 4,575,000 Royal Bank of Canada, 0.450%, 2010/07/02 4,575,000 4,575,000 4,575,000 TOTAL SHORT-TERM INVESTMENTS 6.14% 12,645,314 12,645,314 TOTAL INVESTMENTS % 214,474, ,292,806 Other assets, less liabilities (2.17%) (4,460,198 ) (4,460,198 ) NET ASSETS % 210,013, ,832,608 TOTAL CANADIAN EQUITIES 45.09% 96,317,968 92,802,106 U.S. EQUITIES ENERGY 0.54% Exxon Mobil Corporation 18,400 1,302,782 1,115,769 INDUSTRIALS 0.86% General Electric Company 39,500 1,426, ,124 United Parcel Service, Inc. 8, , ,585 United Technologies Corporation 9, , ,162 CONSUMER STAPLES 2.10% Altria Group Inc. 24,500 1,375, ,176 PepsiCo Inc. 19,700 1,346,891 1,277,442 Philip Morris International Inc. 20,200 1,075, ,570 Procter & Gamble Company, (The) 10, , ,922 Wal-Mart Stores Inc. 16, , ,503 HEALTH CARE 0.70% Johnson & Johnson 11, , ,394 Pfizer Inc. 49,411 1,205, , Standard Life

25 Specific note to interim unaudited financial statements Ideal Monthly Income 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 - 12,645,314-12,645,314 Interest rate risk exposure Less than 1 year ($) 1-5 years ($) 5-10 years ($) Bonds - 76,596,815 2,432,835 79,029,650 Equities 118,617, ,617,842 as at December 31, 2009 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 6,573,686-6,573,686 Bonds - 57,931,202 2,745,996 60,677,198 Equities 98,781, ,239-99,237,201 Equities with a fair value of $455,239 (December 31, 2009 $Nil) were transferred from Level 2 to Level 1 during the period as additional pricing sources became available. The reconciliation of Level 3 fair value measurements was as follows: Bonds as at June 30, 2010 ($) as at December 31, 2009 ($) Balance beginning of period 2,745,996 1,597,787 Purchases - 1,450,000 Sales - (241,032) Net transfers into and/or out of Level 3 (388,301) - Net realized gain (loss) - 11,190 Change in unrealized appreciation (depreciation) 75,140 (71,949) Balance end of period 2,432,835 2,745,996 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 $11,862,000 (December 31, $9,924,000). In practice, actual results may differ materially from this sensitivity analysis. as at June 30, ,645,314 19,926,810 24,286,212 as at December 31, ,573,686 13,302,588 20,295, years ($) Greater than 20 years ($) Total ($) as at June 30, ,699,102 32,117,526 91,674,964 as at December 31, ,516,809 25,562,556 67,250,884 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 $7,169,000 (December 31, $5,098,000). The Fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund is exposed to currency risk since it holds assets and liabilities denominated in a currency other than Canadian dollars, the functional currency. The table below summarizes the Fund s exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in this currency relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD Net assets by currency ($) 25,649,316 Impact on net assets (+/-10%) ($) 2,564,932 as at December 31, 2009 USD Net assets by currency ($) 20,628,853 Impact on net assets (+/-10%) ($) 2,062,885 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 Total Standard Life 25

26 Ideal Balanced Fund Statement of net assets ASSETS Investments, at fair value* 312,063, ,269,153 Short-term investments 1,699,560 14,496,714 Cash 3,913, ,933 Cash margin 6,572 6,461 Subscriptions receivable 129, ,428 Interest accrued 753, ,732 Dividends receivable 424, ,233 Receivable from investments sold 2,648, ,892 Other accounts receivable 216, ,122 Total assets 321,856, ,321,668 LIABILITIES Redemptions payable 330, ,057 Payable on investments purchased 2,362,549 36,900 Management fees payable 326,486 46,716 Custodian fees payable Other liabilities 16,325 2,339 Total liabilities 3,036, ,084 NET ASSETS 318,819, ,660,584 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 307,824, ,863,874 Statement of operations for the periods ended June 30 INVESTMENT INCOME Interest 2,750,804 3,674,672 Dividends 2,597,223 2,996,213 Foreign exchange gain (loss) 62,907 93,226 Other income (loss) 12,531 8,506 Less: foreign withholding taxes (96,907) (142,661) Total investment income (loss) 5,326,558 6,629,956 EXPENSES (note 5) Management fees 4,288,459 4,219,068 Custodian fees 22,435 23,365 Audit fees 2,790 2,947 Interest Other operating expenses ,314,235 4,246,414 Less: expenses absorbed by the manager (23,697) (25,931) Total expenses 4,290,538 4,220,483 NET INVESTMENT INCOME (LOSS) 1,036,020 2,409,473 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 3,277,969 (4,431,290) Net realized gain (loss) on forward foreign currency contracts (48,464) (30,252) Change in unrealized appreciation (depreciation) in value of investments (17,166,182) 17,663,680 Transaction costs (note 2) (73,400) (153,886) NET GAIN (LOSS) ON INVESTMENTS (14,010,077 ) 13,048,252 ASSETS FROM OPERATIONS (12,974,057) 15,457,725 Increase (decrease) in net assets from operations per unit Back-end Load Option (1.68) 1.82 No-load Option (1.66) 1.68 No-load Option with Resets (1.71) 2.00 Platinum No-load Option (1.54) /100 Series (0.66) /100 Platinum Series (0.97) N/A 100/100 Series (0.48) /100 Platinum Series (0.12 ) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (12,974,057) 15,457,725 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 21,207,324 21,076,309 Payments for units redeemed (40,073,914 ) (39,536,017 ) Net capital unit transactions (18,866,590) (18,459,708) ASSETS FOR THE PERIOD (31,840,647 ) (3,001,983) NET ASSETS - beginning of period 350,660, ,537,356 NET ASSETS - end of period 318,819, ,535, Standard Life

27 Ideal 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 5.74% Canada Housing Trust No. 1, 4.550%, 2012/12/15 4,125,000 4,350,784 4,386,851 Canada Housing Trust No. 1, 2.750%, 2014/12/15 2,770,000 2,730,246 2,786,916 Canada Housing Trust No. 1, 1.009%, 2015/03/15 10,180,000 10,181,180 10,180,275 Canada Housing Trust No. 1, 3.150%, 2015/06/15 300, , ,065 Government of Canada, 2.000%, 2012/09/01 250, , ,419 Government of Canada, 3.500%, 2013/06/01 370, , ,276 Government of Canada, 3.500%, 2020/06/ PROVINCIAL AND PROVINCIALLY GUARANTEED 8.93% Financement-Québec, 5.250%, 2034/06/01 1,225,000 1,270,337 1,301,788 Province of British Columbia, 5.700%, 2029/06/18 1,480,000 1,650,093 1,716,763 Province of New Brunswick, 4.800%, 2039/09/26 360, , ,571 Province of Ontario, 4.500%, 2012/12/02 9,305,000 9,829,804 9,855,428 Province of Ontario, 4.750%, 2013/06/02 2,575,000 2,754,488 2,756,888 Province of Ontario, 6.500%, 2029/03/08 1,495,000 1,804,394 1,867,931 Province of Ontario, 4.600%, 2039/06/02 2,565,000 2,484,652 2,578,428 Province of Quebec, 5.500%, 2014/12/01 2,265,000 2,453,882 2,519,797 Province of Quebec, 6.000%, 2029/10/01 1,475,000 1,666,086 1,733,479 Province of Quebec, 5.000%, 2041/12/01 3,525,000 3,600,713 3,711,952 Province of Saskatchewan, 4.750%, 2040/06/01 55,000 56,095 57,383 MUNICIPALS AND SCHOOLS 3.98% Municipal Finance Authority of British Columbia, 4.950%, 2027/12/01 650, , ,436 Ontario School Boards Financing Corporation, 6.550%, 2026/10/19 2,375,170 2,660,547 2,736,407 Regional Municipality of York, 5.000%, 2019/04/29 1,455,000 1,509,148 1,549,133 Toronto, City of, 4.950%, 2018/06/27 2,085,000 2,088,629 2,223,617 Ville de Montréal, 4.950%, 2014/12/10 1,955,000 2,035,461 2,097,703 Ville de Montréal, 5.000%, 2018/12/01 1,390,000 1,363,627 1,466,429 Ville de Montréal, 5.450%, 2019/12/01 1,445,000 1,543,434 1,563,912 Winnipeg, City of, 5.200%, 2036/07/17 365, , ,282 CORPORATE 15.02% 407 International Inc., 4.990%, 2020/06/16 355, , ,720 Aeroports de Montreal, 5.472%, 2040/04/16 575, , ,031 Alliance Pipeline Limited Partnership, 7.217%, 2025/12/31 1,160,276 1,160,276 1,377,300 American Express Canada Credit Corporation, 4.853%, 2014/10/03 450, , ,788 Bank of Montreal, 5.050%, 2013/09/03 105, , ,614 Bank of Nova Scotia, (The), 4.990%, 2013/03/27 1,970,000 2,091,768 2,071,922 Bank of Nova Scotia, (The), 6.000%, 2013/10/03 905, , ,191 Bank of Nova Scotia, (The), 4.940%, 2014/04/15 430, , ,180 Bell Canada, 5.000%, 2017/02/15 175, , ,267 Bell Canada, 7.850%, 2031/04/02 245, , ,302 Bell Canada, 7.300%, 2032/02/23 285, , ,084 Bell Canada, 6.100%, 2035/03/16 485, , ,930 Caisse centrale Desjardins, 3.114%, 2014/12/04 895, , ,458 Canadian Hydro Developers, Inc., 7.027%, 2018/06/11 1,185,000 1,185,000 1,269,339 Canadian Imperial Bank of Commerce, 3.050%, 2013/06/03 365, , ,965 Canadian Imperial Bank of Commerce, 3.300%, 2014/11/19 850, , ,553 Canadian Imperial Bank of Commerce, 3.100%, 2015/03/02 1,110,000 1,103,580 1,107,820 Canadian Imperial Bank of Commerce, 6.000%, 2018/06/06 750, , ,918 Canadian Pacific Railway Limited, 6.250%, 2018/06/01 540, , ,165 CDP Financial Inc., 4.600%, 2020/07/15 705, , ,597 Citigroup Finance Canada Inc., 6.750%, 2014/09/22 1,010,000 1,030,966 1,082,055 CU Inc., 4.883%, 2012/11/01 1,025,000 1,025,000 1,085,539 CU Inc., 5.580%, 2038/05/26 230, , ,154 Enbridge Inc., 5.170%, 2016/05/19 370, , ,773 Enbridge Inc., 4.770%, 2019/09/02 845, , ,319 Enbridge Pipelines Inc., 5.330%, 2040/04/06 1,190,000 1,189,822 1,225,476 EPCOR Utilities Inc., 6.650%, 2038/04/15 495, , ,655 Finning International Inc., 6.020%, 2018/06/01 1,000, ,360 1,105,089 GE Capital Canada Funding Company, 5.150%, 2013/06/06 1,875,000 1,914,847 1,980,639 GE Capital Canada Funding Company, 4.240%, 2015/06/08 310, , ,520 GE Capital Canada Funding Company, 5.530%, 2017/08/17 495, , ,881 GE Capital Canada Funding Company, 5.730%, 2037/10/22 990, , ,637 Greater Toronto Airports Authority, 6.470%, 2034/02/02 840, , ,095 Greater Toronto Airports Authority, 5.630%, 2040/06/07 450, , ,329 Holcim Finance (Canada) Inc., 5.900%, 2013/06/21 1,050,000 1,057,448 1,112,425 Hydro One Inc., 4.400%, 2020/06/01 595, , ,544 IGM Financial Inc., 7.350%, 2019/04/08 1,195,000 1,416,982 1,414,242 John Deere Credit Inc., 2.400%, 2013/02/01 305, , ,717 John Deere Credit Inc., 3.900%, 2013/07/29 605, , ,026 John Deere Credit Inc., 5.450%, 2015/09/16 790, , ,811 Loblaw Companies Limited, 5.900%, 2036/01/18 1,315,000 1,222,811 1,277,679 Manulife Finance Holdings Limited, 6.646%, 2011/11/30 706, , ,947 Manulife Financial Corporation, 4.896%, 2014/06/02 1,160,000 1,186,307 1,222,488 METRO INC., 5.970%, 2035/10/15 455, , ,277 National Bank of Canada, 5.550%, 2013/11/15 1,905,000 1,965,746 2,044,937 Par value ($) Average Fair Issuer / Interest rate / Maturity date or shares cost ($) value ($) National Bank of Canada, 3.147%, 2015/02/11 595, , ,545 National Bank of Canada, 4.030%, 2015/05/26 485, , ,246 NorthwestConnect General Partnership, 5.950%, 2041/04/30 1,135,000 1,142,457 1,095,125 Rogers Communications Inc., 5.380%, 2019/11/04 335, , ,597 Royal Bank of Canada, 4.970%, 2014/06/05 1,350,000 1,434,777 1,452,045 Royal Bank of Canada, 4.350%, 2015/06/15 1,030,000 1,038,609 1,055,202 Royal Bank of Canada, 3.660%, 2017/01/25 290, , ,453 Shaw Communications Inc., 6.500%, 2014/06/02 695, , ,934 Shaw Communications Inc., 5.650%, 2019/10/01 740, , ,190 Suncor Energy Inc., 5.390%, 2037/03/26 655, , ,959 TELUS Corporation, 5.950%, 2015/04/15 410, , ,827 TELUS Corporation, 5.050%, 2019/12/04 165, , ,970 TransCanada PipeLines Limited, 8.290%, 2026/02/05 260, , ,104 TransCanada PipeLines Limited, 6.280%, 2028/05/26 410, , ,914 TransCanada PipeLines Limited, 8.050%, 2039/02/17 480, , ,819 Wells Fargo Financial Canada Corporation, 3.970%, 2014/11/03 1,440,000 1,439,942 1,471,647 ASSET-BACKED SECURITIES 0.60% Gloucester Credit Card Trust, 5.335%, 2013/05/15 280, , ,943 Master Credit Card Trust, 5.237%, 2013/05/21 570, , ,900 Merrill Lynch Financial Assets Inc., 4.640%, 2011/02/12 201, , ,185 Merrill Lynch Financial Assets Inc., 4.613%, 2012/05/12 277, , ,765 SCORE Trust, 4.949%, 2014/02/20 510, , ,980 TOTAL CANADIAN BONDS 34.27% 106,211, ,274,744 U.S. BONDS CORPORATE 0.15% Goldman Sachs Group, Inc., (The), 5.200%, 2017/04/19 505, , ,732 TOTAL U.S. BONDS 0.15% 459, ,732 FOREIGN BONDS SUPRANATIONALS 1.20% Inter-American Development Bank, 4.400%, 2026/01/26 1,750,000 1,638,003 1,721,892 International Bank for Reconstruction and Development, 4.300%, 2012/12/15 1,980,000 1,978,000 2,089,550 TOTAL FOREIGN BONDS 1.20% 3,616,003 3,811,442 CANADIAN EQUITIES ENERGY 9.44% ARC Energy Trust 55,700 1,120,362 1,097,847 Bonavista Energy Trust 28, , ,928 Cameco Corporation 20, , ,328 Canadian Natural Resources Limited 127,200 4,346,328 4,493,976 Cenovus Energy Inc. 113,152 1,963,206 3,100,365 Enbridge Inc. 52,900 2,184,461 2,622,782 EnCana Corporation 31, ,507 1,004,340 Ensign Energy Services Inc. 37, , ,750 Gran Tierra Energy Inc. 130, , ,060 Nexen Inc. 47,900 1,270,836 1,003,026 Niko Resources Ltd. 13,300 1,054,931 1,316,833 ShawCor Ltd., A 30,400 1,038, ,936 Suncor Energy Inc. 240,144 8,553,491 7,523,712 Talisman Energy Inc. 102,000 1,632,603 1,642,200 TransCanada Corporation 77,200 2,783,194 2,749,092 Vermilion Energy Trust 14, , ,420 MATERIALS 5.86% Agrium Inc. 15, , ,248 Barrick Gold Corporation 98,500 3,852,250 4,759,520 Goldcorp Inc. 78,433 2,403,434 3,655,762 IAMGOLD Corporation 59, ,090 1,106,840 Inmet Mining Corporation 16, , ,556 Potash Corporation of Saskatchewan Inc. 35,900 3,891,757 3,291,312 Red Back Mining Inc. 82,900 1,699,564 2,230,010 Teck Resources Limited, Subordinated Voting, B 68,700 2,084,864 2,162,676 Standard Life 27

28 Ideal Balanced Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Shares cost ($) value ($) INDUSTRIALS 2.82% Bombardier Inc., Subordinated Voting, B 200, , ,000 Canadian National Railway Company 46,600 2,084,153 2,843,066 Canadian Pacific Railway Limited 25,800 1,222,059 1,472,148 Finning International Inc. 61, ,750 1,075,430 IESI-BFC Ltd. 55,900 1,140,980 1,186,757 SNC-Lavalin Group Inc. 33, ,158 1,440,218 CONSUMER DISCRETIONARY 2.36% Astral Media Inc., Non-voting, A 34,100 1,186,581 1,225,213 Canadian Tire Corporation, Limited 16, , ,290 Dollarama Inc. 44, ,544 1,089,088 Gildan Activewear Inc. 27, , ,742 Magna International Inc., A 15, ,888 1,094,028 Reitmans (Canada) Limited, Non-voting, A 54, ,903 1,021,330 Shaw Communications Inc. 16, , ,222 Thomson Reuters Corporation 27,600 1,218,555 1,051,560 FINANCIALS 9.65% Bank of Montreal 63,500 3,017,426 3,666,490 Bank of Nova Scotia, (The) 107,700 4,559,708 5,281,608 Canadian Imperial Bank of Commerce 61,200 3,538,902 4,047,768 Great-West Lifeco Inc. 59,200 1,284,659 1,424,352 Manulife Financial Corporation 175,100 4,574,970 2,705,295 Royal Bank of Canada 138,600 5,359,824 7,027,020 Toronto-Dominion Bank, (The) 95,700 3,987,036 6,601,386 INFORMATION TECHNOLOGY 0.91% Research In Motion Limited 55,800 4,668,489 2,920,014 TELECOMMUNICATIONS 0.58% Rogers Communications Inc., B 53,100 1,274,245 1,846,818 TRUST UNITS 2.75% ishares, S&P/TSX 60 Index Fund 527,000 8,774,474 8,758,738 TOTAL CANADIAN EQUITIES 34.37% 101,226, ,571,100 U.S. EQUITIES ENERGY 0.57% Southwestern Energy Company 43,800 1,979,311 1,802,229 MATERIALS 0.35% Praxair Inc. 13,700 1,287,482 1,108,024 INDUSTRIALS 1.98% AMETEK, Inc. 26,700 1,069,993 1,141,257 Danaher Corporation 23, , ,423 United Parcel Service, Inc. 15, , ,317 United Technologies Corporation 30,900 1,988,338 2,133,315 WESCO International, Inc. 33, ,349 1,194,705 CONSUMER DISCRETIONARY 1.43% Kohl s Corporation 15, , ,745 Lowe s Companies Inc. 43, , ,362 Omnicom Group Inc. 27,500 1,468,325 1,003,891 Staples Inc. 39, , ,389 Walt Disney Company, (The) 30, ,817 1,035,242 CONSUMER STAPLES 1.68% Alberto-Culver Company 68,100 1,961,183 1,965,455 Altria Group Inc. 43, , ,260 Kellogg Company 17, , ,833 PepsiCo Inc. 13, , ,374 Walgreen Co. 22, , ,685 HEALTH CARE 1.20% Becton, Dickinson and Company 12, , ,156 Merck & Co., Inc. 57,500 1,909,998 2,138,835 Pfizer Inc. 54, , ,312 FINANCIALS 0.75% J.P. Morgan Chase & Co. 40,400 1,747,686 1,573,730 MetLife Inc. 20, , ,613 Par value ($) Average Fair Issuer / Interest rate / Maturity date or shares cost ($) value ($) INFORMATION TECHNOLOGY 2.49% Adobe Systems Incorporated 25, , ,944 Apple Inc. 7,800 1,458,143 2,088,260 Cisco Systems Inc. 39, , ,701 Google Inc., A 1, , ,791 Intel Corporation 25, , ,022 International Business Machines Corporation 7, , ,858 Microsoft Corporation 30, , ,611 Oracle Corporation 54,000 1,331,830 1,233,126 TRUST UNITS 7.50% Standard & Poor s Depositary Receipt 217,500 23,676,757 23,900,643 TOTAL U.S. EQUITIES 17.95% 58,079,247 57,220,108 FOREIGN EQUITIES ABB Ltd., Sponsored (ADR) 53,900 1,519, ,412 Anheuser-Busch InBev, Sponsored (ADR) 17, , ,704 ArcelorMittal SA Luxembourg, (ADR) 22, , ,366 AstraZeneca PLC, Sponsored (ADR) 19, , ,405 Banco Bilbao Vizcaya Argentaria S.A., (ADR) 144,400 2,712,689 1,584,938 Banco Santander, S.A., Sponsored (ADR) 159,200 2,665,918 1,774,501 Bayer AG, Sponsored (ADR) 12, , ,678 BG Group PLC, Sponsored (ADR) 5, , ,014 BHP Billiton Limited, Sponsored (ADR) 37,200 1,994,995 2,453,017 BP PLC, Sponsored (ADR) 33,200 1,887,942 1,020,049 Daimler AG, (ADR) 16, , ,338 GKN PLC, Sponsored (ADR) 459, , ,180 GlaxoSmithKline PLC, Sponsored (ADR) 22, , ,023 Groupe Danone, Sponsored (ADR) 77,900 1,306, ,229 HSBC Holdings PLC, Sponsored (ADR) 31,800 1,847,676 1,540,708 ishares, MSCI EAFE Index Fund 61,600 3,283,488 3,050,096 Rio Tinto Group, Sponsored (ADR) 36,800 1,741,540 1,706,562 Roche Holdings AG, (ADR) 45,600 2,108,952 1,657,838 Siemens AG, (ADR) 11, ,319 1,067,751 Sony Corporation, (ADR) 25, , ,071 StatoilHydro ASA, Sponsored (ADR) 72,800 1,879,386 1,484,955 Telefonica, S.A., (ADR) 20,700 1,944,555 1,221,964 Toyota Motor Corporation, (ADR) 11, , ,136 Vodafone Group PLC, (ADR) 79,300 1,917,475 1,742,486 Zurich Financial Services AG, Sponsored (ADR) 73,400 1,817,277 1,711,302 TOTAL FOREIGN EQUITIES 9.94% 38,421,252 31,708,723 Transaction costs (note 2) (188,288) - TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 97.88% 307,824, ,063,849 SHORT-TERM INVESTMENTS National Bank of Canada, 0.500%, 2010/07/02 600, , ,000 Province of Ontario, 0.360%, 2010/07/14 500, , ,560 Royal Bank of Canada, 0.450%, 2010/07/02 600, , ,000 TOTAL SHORT-TERM INVESTMENTS 0.53% 1,699,560 1,699,560 TOTAL INVESTMENTS 98.41% 309,524, ,763,409 Other assets, less liabilities 1.59% 5,056,528 5,056,528 NET ASSETS % 314,580, ,819, Standard Life

29 Specific note to interim unaudited financial statements Ideal 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 - 1,699,560-1,699,560 Interest rate risk exposure Less than 1 year ($) 1-5 years ($) 5-10 years ($) Bonds - 109,885,826 3,678, ,563,918 Equities 198,499, ,499,931 as at December 31, 2009 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 14,496,714-14,496,714 Bonds - 120,067,733 3,336, ,404,542 Equities 205,255,290 5,609, ,864,611 Equities with a fair value of $5,609,321 (December 31, 2009 $Nil) were transferred from Level 2 to Level 1 during the period as additional pricing sources became available. The reconciliation of Level 3 fair value measurements was as follows: Bonds as at June 30, 2010 ($) as at December 31, 2009 ($) Balance beginning of period 3,336,809 4,310,019 Purchases 1,987,662 - Sales (704,403) (907,446) Net transfers into and/or out of Level 3 (1,090,435) - Net realized gain (loss) 3,036 44,897 Change in unrealized appreciation (depreciation) 145,423 (110,661) Balance end of period 3,678,092 3,336,809 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 $19,850,000 (December 31, $21,086,000). In practice, actual results may differ materially from this sensitivity analysis. as at June 30, ,902,745 63,471,990 17,889,967 as at December 31, ,496,714 58,376,096 34,144, years ($) Greater than 20 years ($) Total ($) as at June 30, ,334,821 18,663, ,263,478 as at December 31, ,128,534 13,755, ,901,256 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 $6,805,000 (December 31, $6,925,000). The Fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund is exposed to currency risk since it holds assets and liabilities denominated in a currency other than Canadian dollars, the functional currency. The table below summarizes the Fund s exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in this currency relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD Net assets by currency ($) 92,723,591 Impact on net assets (+/-10%) ($) 9,272,359 as at December 31, 2009 USD Net assets by currency ($) 92,831,368 Impact on net assets (+/-10%) ($) 9,283,137 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 9 13 Total Standard Life 29

30 Ideal Trimark Balanced Fund Statement of net assets ASSETS Investments, at fair value* 1,204, ,830 Cash 27,989 6,058 Subscriptions receivable Total assets 1,232, ,911 LIABILITIES Redemptions payable 1,518 - Payable on investments purchased 27,989 6,058 Management fees payable 1, Other liabilities 77 5 Total liabilities 31,115 6,160 NET ASSETS 1,201, ,751 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 1,215, ,583 Statement of operations for the periods ended June 30 (note 1) INVESTMENT INCOME Distribution income from underlying funds 12,644 2,289 Total investment income (loss) 12,644 2,289 EXPENSES (note 5) Management fees 14,712 1,273 Audit fees 1,883 1,988 Other operating expenses 2-16,597 3,261 Less: expenses absorbed by the manager (1,885) (1,988) Total expenses 14,712 1,273 NET INVESTMENT INCOME (LOSS) (2,068) 1,016 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 1, Change in unrealized appreciation (depreciation) in value of investments (67,736) 8,893 NET GAIN (LOSS) ON INVESTMENTS (66,189) 8,956 ASSETS FROM OPERATIONS (68,257) 9,972 Increase (decrease) in net assets from operations per unit 75/100 Series (1.06) /100 Platinum Series (0.54) N/A 100/100 Series (0.86) /100 Platinum Series (0.55) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (68,257) 9,972 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 768, ,387 Payments for units redeemed (74,537) (3,000) Net capital unit transactions 693, ,387 ASSETS FOR THE PERIOD 625, ,359 NET ASSETS - beginning of period 575,751 - NET ASSETS - end of period 1,201, , Standard Life

31 Ideal Trimark Balanced Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Trimark Select Balanced Fund, Series I 118,116 1,215,034 1,204,545 TOTAL INVESTMENTS % 1,215,034 1,204,545 Other assets, less liabilities (0.26%) (3,104 ) (3,104 ) NET ASSETS % 1,211,930 1,201,441 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date or shares cost ($) value ($) underlying fund Trimark Select Balanced Fund MacDonald, Dettwiler & Associates Ltd. 1,317,450 35,505,278 57,743, Brookfield Asset Management Inc., A 1,905,500 48,247,260 45,846, TELUS Corporation, Non-voting shares 1,016,000 42,021,760 39,095, Toronto-Dominion Bank, (The) 549,700 20,652,229 37,967, Toromont Industries Ltd. 1,622,764 3,196,845 37,242, Willis Group Holdings PLC 1,147,709 40,502,651 36,721, Plum Creek Timber Company, Inc. 983,500 37,854,915 36,116, Government of Canada, 3.50%, 2010/06/01 34,000,000 33,660,000 35,200, Alimentation Couche-Tard Inc., B 1,928,252 30,350,686 34,515, Dell Inc. 2,586,800 35,801,312 33,188, Government of Canada, 5.75%, 2029/06/01 24,400,000 29,768,000 31,499, Bank of Nova Scotia, (The) 631,500 10,697,610 30,968, Shoppers Drug Mart Corporation 933,000 36,853,500 30,733, Boston Scientific Corporation 4,836,500 40,288,045 29,867, Research In Motion Limited 536,200 34,118,406 28,091, Government of Canada, 4.00%, 2017/06/01 25,970,000 27,528,200 28,000, Ubisoft Entertainment S.A. 3,494,200 50,980,378 27,680, RONA Inc. 1,700,747 35,919,777 26,735, Yamana Gold Inc. 2,401,262 25,237,264 26,245, Progress Energy Resources Corporation 2,102,000 21,839,780 25,875, Manulife Financial Corporation 1,676,800 33,988,736 25,940, Precision Drilling Corporation 3,607,702 43,833,579 25,434, Legg Mason, Inc. 849,823 38,097,565 25,362, Trinidad Drilling Ltd. 4,550,934 30,081,674 22,982, Cenovus Energy Inc. 838,210 22,698,727 22,992, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. Standard Life 31

32 Specific note to interim unaudited financial statements Ideal Trimark Balanced 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $120,000 (December 31, $58,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 32 Standard Life

33 Ideal AIM Canadian Balanced Fund Statement of net assets ASSETS Investments, at fair value* 712, ,013 Cash 90,641 - Subscriptions receivable - 50 Receivable from investments sold Total assets 803, ,317 LIABILITIES Bank indebtedness Redemptions payable Payable on investments purchased 90,841 - Management fees payable Other liabilities 40 2 Total liabilities 91, NET ASSETS 711, ,020 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 702, ,827 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 7,771 2,321 Audit fees 1,883 1,988 Other operating expenses 1-9,655 4,309 Less: expenses absorbed by the manager (1,884) (1,988) Total expenses 7,771 2,321 NET INVESTMENT INCOME (LOSS) (7,771) (2,321) 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 (10,493) 16,992 NET GAIN (LOSS) ON INVESTMENTS (10,026) 17,060 ASSETS FROM OPERATIONS (17,797) 14,739 Increase (decrease) in net assets from operations per unit 75/100 Series (0.38) /100 Platinum Series (0.27) N/A 100/100 Series (0.39) /100 Platinum Series (0.28) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (17,797) 14,739 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 496, ,902 Payments for units redeemed (14,074 ) (2,200) Net capital unit transactions 482, ,702 ASSETS FOR THE PERIOD 464, ,441 NET ASSETS - beginning of period 247,020 - NET ASSETS - end of period 711, ,441 Standard Life 33

34 Ideal AIM Canadian Balanced Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) AIM Canadian Balanced Fund, Series I 49, , ,434 TOTAL INVESTMENTS % 702, ,434 Other assets, less liabilities (0.15%) (1,046) (1,046) NET ASSETS % 701, ,388 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date or shares cost ($) value ($) underlying fund AIM Canadian Balanced Fund Government of Canada, 3.75%, 2011/01/09 58,390,000 60,725,600 60,188, Government of Canada, 2.50%, 2015/06/01 36,800,000 36,432,000 37,094, Canadian Natural Resources Ltd. 981,859 24,448,289 34,747, Canada Housing Trust, 4.55%, 2012/12/15 29,100,000 29,100,000 30,945, Government of Canada, 5.75%, 2029/06/01 21,920,000 26,084,800 28,298, Power Corporation of Canada 932,666 26,814,148 23,810, Power Financial Corp. 831,310 24,182,808 22,694, CGI Group Inc., A 1,423,519 14,946,950 22,690, Suncor Energy Inc. 685,218 21,419,915 21,481, Province of Quebec, 4.50%, 2019/12/01 18,470,000 18,654,700 19,233, Canada Housing Trust, 3.15%, 2015/06/15 18,000,000 18,000,000 18,366, Province of Quebec, 5.50%, 2014/12/01 15,940,000 17,852,800 17,731, Canada Housing Trust, 2.95%, 2015/03/15 17,400,000 17,400,000 17,623, Petroleo Brasileiro S.A., (ADR) 467,432 15,369,164 17,080, Government of Canada, 5.00%, 2037/06/01 13,390,000 15,666,300 16,480, Magna International Inc., A 223,525 15,861,334 15,675, Johnson & Johnson 248,412 16,176,589 15,620, Onex Corporation 552,063 14,464,051 14,083, Hyundai Mobis Company, Ltd. 75,810 10,627,046 13,461, Talisman Energy Inc. 825,620 12,227,432 13,300, Imperial Tobacco Group PLC 435,826 14,905,249 12,938, Province of Manitoba, 4.65%, 2040/03/05 12,500,000 12,250,000 12,760, Astral Media Inc. 352,776 11,253,554 12,710, Bayerische Motoren Werke AG 242,844 11,700,224 12,510, America Movil S.A.B. de C.V., Series L, (ADR) 244,864 9,890,057 12,383, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. 34 Standard Life

35 Specific note to interim unaudited financial statements Ideal AIM Canadian Balanced 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $71,000 (December 31, $25,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. Standard Life 35

36 Ideal Fidelity Canadian Balanced Fund Statement of net assets ASSETS Investments, at fair value* 9,408,835 1,903,289 Cash 377,385 43,188 Subscriptions receivable 97, ,911 Total assets 9,883,813 2,062,388 LIABILITIES Redemptions payable 1,182 - Payable on investments purchased 377,385 43,188 Management fees payable 11, Other liabilities Total liabilities 390,396 43,521 NET ASSETS 9,493,417 2,018,867 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 9,483,051 1,814,424 Statement of operations for the periods ended June 30 (note 1) INVESTMENT INCOME Distribution income from underlying funds 125,864 5,965 Total investment income (loss) 125,864 5,965 EXPENSES (note 5) Management fees 88,508 3,274 Audit fees 1,883 1,988 Other operating expenses ,400 5,263 Less: expenses absorbed by the manager (1,892) (1,989) Total expenses 88,508 3,274 NET INVESTMENT INCOME (LOSS) 37,356 2,691 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 6,565 1,558 Change in unrealized appreciation (depreciation) in value of investments (163,081) 27,999 NET GAIN (LOSS) ON INVESTMENTS (156,516 ) 29,557 ASSETS FROM OPERATIONS (119,160) 32,248 Increase (decrease) in net assets from operations per unit 75/100 Series (0.37) /100 Platinum Series (0.15 ) N/A 100/100 Series (0.21) /100 Platinum Series (0.03) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (119,160) 32,248 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 8,020, ,926 Payments for units redeemed (427,190) (3,751 ) Net capital unit transactions 7,593, ,175 ASSETS FOR THE PERIOD 7,474, ,423 NET ASSETS - beginning of period 2,018,867 - NET ASSETS - end of period 9,493, , Standard Life

37 Ideal Fidelity Canadian Balanced Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Fidelity Canadian Balanced Fund, Series O 512,659 9,483,051 9,408,835 TOTAL INVESTMENTS 99.11% 9,483,051 9,408,835 Other assets, less liabilities 0.89% 84,582 84,582 NET ASSETS % 9,567,633 9,493,417 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date or shares cost ($) value ($) underlying fund Fidelity Canadian Balanced Fund Toronto-Dominion Bank, (The) 2,389, ,101, ,813, Royal Bank of Canada 3,182, ,338, ,337, Canadian National Railway Company 1,849,000 94,697, ,807, Canada Housing Trust, 4.55%, 2012/12/15 100,801, ,896, ,231, Suncor Energy Inc. 3,176, ,608,801 99,525, Goldcorp Inc. 2,046,300 71,197,098 95,378, Canadian Imperial Bank of Commerce 1,228,700 81,724,269 81,266, Canada Housing Trust, 3.15% 2015/06/15 74,370,000 74,271,832 75,866, Eldorado Gold Corporation 3,458,700 41,634,691 65,991, Bank of Nova Scotia, (The) 1,345,400 53,311,615 65,991, Talisman Energy Inc. 3,953,400 69,697,233 63,649, Canadian Natural Resources Limited 1,785,300 49,034,031 63,074, Province of Ontario, 4.20%, 2020/06/02 56,910,000 56,643,806 57,932, Government of Canada, 2.00%, 2014/12/01 57,970,000 56,327,339 57,347, Teck Resources Limited, Subordinated Voting, B 1,746,300 45,157,689 54,973, Research In Motion Limited 1,037,800 61,736,944 54,421, Magna International Inc., Subordinated Voting, A 750,700 47,763,505 52,646, Crescent Point Energy Ltd. 1,319,100 45,955,658 49,017, Gildan Activewear Inc. 1,504,233 39,175,926 45,999, Enbridge Inc. 877,600 39,513,595 43,511, Cenovus Energy Inc. 1,578,700 45,473,416 43,256, Intact Financial Corporation 956,100 43,047,332 42,928, Red Back Mining Inc. 1,581,500 32,026,301 42,558, IAMGOLD Corporation 2,229,800 32,799,517 41,853, Government of Canada, 1.50%, 2012/06/01 41,030,000 40,644,318 41,113, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. Standard Life 37

38 Specific note to interim unaudited financial statements Ideal Fidelity Canadian Balanced 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2009, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $941,000 (December 31, $190,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 38 Standard Life

39 Ideal Fidelity Canadian Asset Allocation Fund Statement of net assets ASSETS Investments, at fair value* 23,461,080 4,754,267 Cash 567,962 71,936 Subscriptions receivable 96, ,060 Total assets 24,125,921 4,982,263 LIABILITIES Redemptions payable 8, Payable on investments purchased 577,961 71,586 Management fees payable 28, Audit fees payable 1,890 - Other liabilities 1, Total liabilities 618,561 72,757 NET ASSETS 23,507,360 4,909,506 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 24,208,222 4,763,400 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 2234,495 2,117 Audit fees 1,985 1,988 Other operating expenses ,503 4,105 Less: expenses absorbed by the manager (23) (1,988) Total expenses 236,480 2,117 NET INVESTMENT INCOME (LOSS) (236,480) (2,117 ) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (641) 63 Change in unrealized appreciation (depreciation) in value of investments (738,009) 24,495 NET GAIN (LOSS) ON INVESTMENTS (738,650) 24,558 ASSETS FROM OPERATIONS (975,130) 22,441 Increase (decrease) in net assets from operations per unit 75/100 Series (0.85) /100 Platinum Series (0.43) N/A 100/100 Series (0.74 ) /100 Platinum Series (1.11 ) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (975,130) 22,441 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 21,088, ,255 Payments for units redeemed (1,515,315 ) (1,092) Net capital unit transactions 19,572, ,163 ASSETS FOR THE PERIOD 18,597, ,604 NET ASSETS - beginning of period 4,909,506 - NET ASSETS - end of period 23,507, ,604 Standard Life 39

40 Ideal Fidelity Canadian Asset Allocation Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Fidelity Canadian Asset Allocation Fund, Series O 990,090 24,208,222 23,461,080 TOTAL INVESTMENTS 99.80% 24,208,222 23,461,080 Other assets, less liabilities 0.20% 46,280 46,280 NET ASSETS % 24,254,502 23,507,360 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying fund Fidelity Canadian Asset Allocation Fund Toronto-Dominion Bank, (The) 6,120, ,961, ,192, Royal Bank of Canada 7,921, ,242, ,637, Goldcorp Inc. 8,122, ,355, ,589, Suncor Energy Inc. 10,816, ,913, ,868, Canadian Imperial Bank of Commerce 4,578, ,041, ,813, Canadian Natural Resources Limited 7,967, ,478, ,481, Potash Corporation of Saskatchewan Inc. 2,573, ,845, ,982, BCE Inc. 7,275, ,770, ,989, Rogers Communication Inc., non-voting, B 6,431, ,237, ,704, Bank Of Montreal 3,854, ,235, ,570, Yamana Gold Inc. 19,540, ,655, ,379, Encana Corporation 6,012, ,674, ,849, Canadian Pacific Railway Limited 3,174, ,196, ,113, Research In Motion Limited 3,179, ,109, ,743, Teck Resources Limited, Subordinated Voting, B 5,056,940 80,514, ,192, Barrick Gold Corporation 3,245, ,608, ,822, Bombardier Inc., Subordinated Voting, B 31,632, ,815, ,102, Manulife Financial Corporation 9,247, ,056, ,881, Cenovus Energy Inc. 5,204, ,865, ,613, Talisman Energy Inc. 8,761, ,697, ,060, Enbridge Inc. 2,709, ,158,614 13,4317, TransCanada Corporation 3,527, ,581, ,610, Brookfield Asset Management Inc., A 5,026, ,596, ,989, Thomson Reuters Corporation 2,454,500 86,165,561 93,516, Kinross Gold Corporation 4,924,900 79,108,199 89,633, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. 40 Standard Life

41 Specific note to interim unaudited financial statements Ideal Fidelity Canadian Asset Allocation 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $2,346,000 (December 31, $475,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. Standard Life 41

42 Ideal Russell Diversified Monthly Income Portfolio Statement of net assets ASSETS Investments, at fair value* 636,903 94,222 Receivable from investments sold - 95 Total assets 636,903 94,317 LIABILITIES Bank indebtedness Management fees payable Other liabilities 42 1 Total liabilities NET ASSETS 635,942 94,202 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 658,560 91,393 Statement of operations for the periods ended June 30 (note 1) INVESTMENT INCOME Distribution income from underlying funds 2, Total investment income (loss) 2, EXPENSES (note 5) Management fees 8, Audit fees 1,883 1,988 Other operating expenses 1-10,071 2,293 Less: expenses absorbed by the manager (1,884) (1,988) Total expenses 8, NET INVESTMENT INCOME (LOSS) (5,643) (210 ) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 221 (3) Change in unrealized appreciation (depreciation) in value of investments (24,486) 1,375 NET GAIN (LOSS) ON INVESTMENTS (24,265) 1,372 ASSETS FROM OPERATIONS (29,908) 1,162 Increase (decrease) in net assets from operations per unit 75/100 Series (0.87) /100 Platinum Series 0.20 N/A 100/100 Series (0.66) /100 Platinum Series (0.40) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (29,908) 1,162 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 607,497 20,000 Payments for units redeemed (35,849 ) - Net capital unit transactions 571,648 20,000 ASSETS FOR THE PERIOD 541,740 21,162 NET ASSETS - beginning of period 94,202 - NET ASSETS - end of period 635,942 21, Standard Life

43 Ideal Russel Diversified Monthly Income Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Russell Diversified Monthly Income Portfolio, Series OS 7, , ,903 TOTAL INVESTMENTS % 658, ,903 Other assets, less liabilities (0.15%) (961) (961) NET ASSETS % 657, ,942 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Units cost ($) value ($) underlying fund Russell Diversified Monthly Income Portfolio Russell Canadian Dividend Pool, O Units 10,095, ,786, ,818, Russell Core Plus Fixed Income Pool, O Units 11,111, ,663, ,878, Russell Fixed Income Pool, O Units 10,821, ,069, ,750, Russell US Equity Pool, O Units 8,599,547 96,106,288 79,528, Russell Global Equity Pool, O Units 7,725,522 94,294,906 75,245, Russell Overseas Equity Pool, O Units 6,983,410 91,443,914 70,572, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. Standard Life 43

44 Specific note to interim unaudited financial statements Ideal Russell Diversified Monthly Income Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $64,000 (December 31, $9,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 44 Standard Life

45 Ideal Global Monthly Income Fund Statement of net assets ASSETS Investments, at fair value* 2,001,700 1,548,314 Cash - 3,000 Subscriptions receivable 15,561 9,710 Other accounts receivable 24 3 Total assets 2,017,285 1,561,027 LIABILITIES Redemptions payable 149,577 7,288 Payable on investments purchased - 3,000 Management fees payable Audit fees payable 1,890 - Other liabilities Total liabilities 151,681 10,297 NET ASSETS 1,865,604 1,550,730 Net assets per unit (note 3) Back-end 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 2,195,027 1,625,534 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 53,102 46,375 Other income (loss) Total investment income (loss) 53,387 46,607 EXPENSES (note 5) Management fees 1, Audit fees 1,985 1,709 Other operating expenses 3 4 3,051 2,517 Less: expenses absorbed by the manager (3) (4) Total expenses 3,048 2,513 NET INVESTMENT INCOME (LOSS) 50,339 44,094 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (14,392) (21,509) Change in unrealized appreciation (depreciation) in value of investments (116,107 ) 6,469 NET GAIN (LOSS) ON INVESTMENTS (130,499) (15,040) ASSETS FROM OPERATIONS (80,160) 29,054 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.65) 0.25 No-load Option with Resets (0.71) 0.29 Platinum No-load Option (0.69) /100 Series (0.46) /100 Platinum Series (0.43) N/A 100/100 Series (0.61) /100 Platinum Series (0.44) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (80,160) 29,054 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 603, ,137 Payments for units redeemed (208,301) (159,426) Net capital unit transactions 395, ,711 ASSETS FOR THE PERIOD 314, ,765 NET ASSETS - beginning of period 1,550,730 1,429,863 NET ASSETS - end of period 1,865,604 1,587,628 Standard Life 45

46 Ideal Global Monthly Income Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Global Monthly Income Fund, A-Series 177,215 2,195,027 2,001,700 TOTAL INVESTMENTS % 2,195,027 2,001,700 Other assets, less liabilities (7.30%) (136,096) (136,096) NET ASSETS % 2,058,931 1,865,604 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency or shares cost ($) value ($) underlying fund Standard Life Global Monthly Income Fund ishares, MSCI EAFE Index Fund 35,000 1,892,275 1,733, Standard & Poor s Depositary Receipt 15,000 1,756,574 1,648, ishares, S&P/TSX 60 Index Fund 92,800 1,576,112 1,542, Toronto-Dominion Bank, (The) 15, ,533 1,045, Bank of Nova Scotia, (The) 15, , , Royal Bank of Canada 12, , , Canadian Natural Resources Limited 17, , , Province of Quebec, 5.000%, 2041/12/01 490, , , Province of Quebec, 1.600%, 2013/05/09, (JPY) 39,950, , , Province of Ontario, 6.500%, 2029/03/08 345, , , Exxon Mobil Corporation 6, , , Canadian Imperial Bank of Commerce 6, , , Suncor Energy Inc. 11, , , Province of Quebec, 3.625%, 2015/02/10, (EUR) 250, , , Deere & Company 5, , , Altria Group Inc. 14, , , Canada Housing Trust No. 1, 4.550%, 2012/12/15 290, , , Verizon Communications Inc. 10, , , International Business Machines Corporation 2, , , HSBC Holdings PLC, Sponsored, (ADR) 5, , , Sanofi-Aventis, (ADR) 8, , , United Kingdom Gilt, 4.750%, 2020/03/07, (GBP) 152, , , Province of Ontario, 0.210%, 2010/08/20, (USD) 250, , , PepsiCo Inc. 4, , , Australia and New Zealand Banking Group Limited, (ADR) 13, , , Standard Life

47 Specific note to interim unaudited financial statements Ideal Global Monthly Income 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $123,000 (December 31, $84,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund has indirect interest rate risk exposure since a significant portion of the underlying fund s investments is interest bearing. The table below summarizes the Fund s indirect exposure to interest rate risk by remaining term to maturity. Interest rate risk exposure Less than 1 year ($) 1-5 years ($) 5-10 years ($) as at June 30, , , ,676 as at December 31, , , , years ($) Greater than 20 years ($) Total ($) as at June 30, , , ,581 as at December 31, , , ,959 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 $58,000 (December 31, $40,000). The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in currencies other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in these currencies relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD EUR JPY GBP Net assets by currency ($) Impact on net assets (+/-10%) ($) Other currencies 919,198 99,903 50,425 24,362 16,715 91,920 9,990 5,043 2,436 1,672 as at December 31, 2009 USD EUR JPY GBP Net assets by currency ($) Impact on net assets (+/-10%) ($) Other currencies 628,181 70,998 35,657 21,398 14,869 62,818 7,100 3,566 2,140 1,487 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 and other assets. Standard Life 47

48 Ideal Templeton Global Income Fund Statement of net assets ASSETS Investments, at fair value* 119,401 77,382 Cash 50 - Subscriptions receivable - 50 Receivable from investments sold - 94 Total assets 119,451 77,526 LIABILITIES Bank indebtedness - 94 Management fees payable Other liabilities 7 1 Total liabilities NET ASSETS 119,297 77,419 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 121,666 76,952 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 1, Audit fees 1,883 1,988 3,306 2,338 Less: expenses absorbed by the manager (1,883) (1,988) Total expenses 1, NET INVESTMENT INCOME (LOSS) (1,423) (350) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (522) (7) Change in unrealized appreciation (depreciation) in value of investments (2,695) 953 NET GAIN (LOSS) ON INVESTMENTS (3,217 ) 946 ASSETS FROM OPERATIONS (4,640) 596 Increase (decrease) in net assets from operations per unit 75/100 Series (0.36) /100 Platinum Series (0.49) N/A 100/100 Series (0.62) /100 Platinum Series (0.50) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (4,640) 596 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 55,829 28,033 Payments for units redeemed (9,311 ) - Net capital unit transactions 46,518 28,033 ASSETS FOR THE PERIOD 41,878 28,629 NET ASSETS - beginning of period 77,419 - NET ASSETS - end of period 119,297 28, Standard Life

49 Ideal Templeton Global Income Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Templeton Global Income Fund, Series O 12, , ,401 TOTAL INVESTMENTS % 121, ,401 Other assets, less liabilities (0.09%) (104) (104) NET ASSETS % 121, ,297 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency or shares cost ($) value ($) underlying fund Templeton Global Income Fund FHLB, 2010/07/02 2,900,000 3,081,685 3,081, Government of Indonesia, FR42, %, 2027/07/15, (IDR) 20,720,000,000 2,636,430 2,561, Nota Do Tesouro Nacional, %, 2017/01/01, (BRL) 4,165 2,136,974 2,221, Government of Mexico, M 20, %, 2024/12/05, (MXN) 180,000 2,192,985 1,850, Nota Do Tesouro Nacional, Index Linked, 6.000%, 2045/05/15, (BRL) 1,690 1,536,610 1,847, Siemens AG 19,000 1,592,120 1,835, Vodafone Group PLC 746,141 2,325,835 1,651, GlaxoSmithKline PLC 84,475 2,489,460 1,536, Singapore Telecommunications Ltd. 654,000 1,574,189 1,512, Merck & Co. Inc. 35,520 1,605,998 1,322, Vale SA, ADR, pfd., A 57, ,650 1,295, Microsoft Corp. 50,180 1,493,168 1,229, The Home Depot Inc. 40,000 1,054,497 1,195, Sanofi-Aventis 18,156 1,697,552 1,170, Nota Do Tesouro Nacional, Index Linked, 6.000%, 2015/05/15, (BRL) 1, ,022 1,135, The Sage Group PLC 294,420 1,134,416 1,085, General Electric Co. 69,120 2,254,309 1,061, Adecco SA 20, ,782 1,060, United Parcel Service Inc., B 17,060 1,079,438 1,033, MAN SE 11, ,708 1,029, Royal Dutch Shell PLC, B 39,469 1,580,567 1,024, Vivendi SA 46,472 1,719,181 1,017, Bayerische Motoren Werke AG 19,380 1,267,202 1,013, Roche Holding AG 6,840 1,052,436 1,007, Gazprom, Secured Note, Reg S, 7.510%, 2013/07/31, (USD) 860, , , The top holdings of the underlying fund come from unaudited information provided by the external fund manager. Standard Life 49

50 Specific note to interim unaudited financial statements Ideal Templeton Global Income 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $12,000 (December 31, $8,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 50 Standard Life

51 Ideal Trimark Global Balanced Fund Statement of net assets ASSETS Investments, at fair value* 292, ,452 Cash ,502 Total assets 292, ,954 LIABILITIES Payable on investments purchased ,502 Management fees payable Other liabilities 18 2 Total liabilities ,525 NET ASSETS 292, ,429 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 303, ,692 Statement of operations for the periods ended June 30 (note 1) INVESTMENT INCOME Distribution income from underlying funds 5, Total investment income (loss) 5, EXPENSES (note 5) Management fees 3, Audit fees 1,883 1,988 Other operating expenses 1-5,293 2,314 Less: expenses absorbed by the manager (1,884) (1,988) Total expenses 3, NET INVESTMENT INCOME (LOSS) 1, REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 10 (13) Change in unrealized appreciation (depreciation) in value of investments (14,039) 48 NET GAIN (LOSS) ON INVESTMENTS (14,029) 35 ASSETS FROM OPERATIONS (12,148) 116 Increase (decrease) in net assets from operations per unit 75/100 Series (0.59) /100 Platinum Series (0.41) N/A 100/100 Series (0.60) /100 Platinum Series (0.42) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (12,148) 116 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 166,181 24,400 Payments for units redeemed (1,202 ) - Net capital unit transactions 164,979 24,400 ASSETS FOR THE PERIOD 152,831 24,516 NET ASSETS - beginning of period 139,429 - NET ASSETS - end of period 292,260 24,516 Standard Life 51

52 Ideal Trimark Global Balanced Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Trimark Global Balanced Fund, Series I 41, , ,641 TOTAL INVESTMENTS % 303, ,641 Other assets, less liabilities (0.13%) (381) (381) NET ASSETS % 303, ,260 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying fund Trimark Global Balanced Fund Ross Stores, Inc. 513,700 24,960,683 29,147, Hyundai Mobis Company, Ltd 128,228 12,538,134 22,714, Kinetic Concepts, Inc. 509,400 19,469,268 19,802, Ryanair Holdings PLC, (ADR) 681,400 20,591,908 19,610, DCC PLC 810,000 22,445,100 19,378, Microsoft Corporation 792,300 21,083,103 19,402, WellPoint, Inc. 360,700 20,509,402 18,791, Oracle Corporation 801,300 16,867,365 18,300, America Movil S.A.B. de C.V., Series L, (ADR) 360,800 17,404,992 18,216, Accenture PLC, A 434,907 16,052,417 17,883, Tesco PLC 2,795,540 20,742,907 16,759, Nestlé S.A. 319,100 14,525,432 16,391, ARYZTA AG 382,969 15,977,467 15,608, Wiener Staedtische Versicherung AG 326,098 19,288,697 14,549, McGraw-Hill Cos. Inc., (The) 477,700 15,037,996 14,292, Cisco Systems Inc. 621,800 15,849,682 14,101, Charter International PLC 1,337,300 15,686,529 13,305, Medtronic Inc. 341,600 16,659,832 13,191, Fugro N.V., CVA 270,011 16,392,368 13,149, Kerry Group PLC, A 423,599 11,907,368 12,533, Massmart Holdings Limited 736,200 8,738,694 11,989, OPAP S.A. 890,529 23,981,946 11,797, Omnicom Group Inc. 322,600 12,674,954 11,778, Reed Elsevier PLC 1,421,854 18,668,943 11,156, Carnival Corporation 316,900 11,379,879 10,203, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. 52 Standard Life

53 Specific note to interim unaudited financial statements Ideal Trimark Global Balanced 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $29,000 (December 31, $14,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. Standard Life 53

54 Ideal Fidelity Global Asset Allocation Fund Statement of net assets ASSETS Investments, at fair value* 1,002, ,290 Cash Subscriptions receivable - 14,164 Receivable from investments sold Total assets 1,002, ,628 LIABILITIES Bank indebtedness Payable on investments purchased Management fees payable 1, Other liabilities 65 2 Total liabilities 1, NET ASSETS 1,001, ,413 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 1,028, ,660 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 12, Audit fees 1,883 1,988 Other operating expenses 1-13,963 2,830 Less: expenses absorbed by the manager (1,884) (1,988) Total expenses 12, NET INVESTMENT INCOME (LOSS) (12,079) (842) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (127 ) 9 Change in unrealized appreciation (depreciation) in value of investments (40,233) 9,161 NET GAIN (LOSS) ON INVESTMENTS (40,360) 9,170 ASSETS FROM OPERATIONS (52,439) 8,328 Increase (decrease) in net assets from operations per unit 75/100 Series (0.70) /100 Platinum Series (0.75) N/A 100/100 Series (0.87) /100 Platinum Series (0.76) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (52,439) 8,328 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 826, ,483 Payments for units redeemed (17,611 ) - Net capital unit transactions 809, ,483 ASSETS FOR THE PERIOD 756, ,811 NET ASSETS - beginning of period 244,413 - NET ASSETS - end of period 1,001, , Standard Life

55 Ideal Fidelity Global Asset Allocation Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Fidelity Global Asset Allocation Fund, Series O 66,451 1,028,241 1,002,638 TOTAL INVESTMENTS % 1,028,241 1,002,638 Other assets, less liabilities (0.13%) (1,298) (1,298) NET ASSETS % 1,026,943 1,001,340 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency or shares cost ($) value ($) underlying fund Fidelity Global Asset Allocation Fund Government of France, 3.50%, 2020/04/25, (EUR) 3,676,190 5,041,139 4,958, Government of Japan, 1.10%, 2012/12/20, (JPY) 338,819,380 3,158,236 4,175, HSBC Holdings PLC 361,662 3,844,214 3,516, Cisco Systems Inc. 144,400 3,324,770 3,275, Roche Holdings AG, non voting shares 21,635 3,781,837 3,170, Royal Dutch Shell PLC, B 121,719 3,521,123 3,130, Exxon Mobil Corporation 50,500 3,565,399 3,068, Eksportfinans ASA, 1.60%, 2014/20/03, (JPY) 245,644,051 2,328,911 3,059, Vodafone Group PLC 1,289,023 3,797,972 2,826, ebay Inc. 135,200 3,465,482 2,822, Philip Morris International Inc. 57,600 2,889,270 2,810, United States Treasury, 2.375%, 2015/02/28, (USD) 2,422,559 2,468,498 2,658, United States Treasury, 3.50%. 2039/02/15, (USD) 2,676,673 2,335,384 2,653, Nestle S.A. 51,520 2,217,525 2,644, Denso Corporation 86,700 2,528,375 2,551, M Company 30,000 2,611,972 2,522, Wells Fargo & Company 92,500 2,732,513 2,520, Applied Materials Inc. 192,300 2,597,810 2,460, Procter & Gamble Company, (The) 38,300 2,497,999 2,445, Centrica PLC 519,125 2,349,887 2,438, WPP PLC 237,288 2,418,355 2,378, Teva Pharmaceutical Industries Limited 42,300 2,359,552 2,341, Life Technologies Corporation 45,000 2,215,975 2,263, Saipem S.P.A. 69,622 2,306,460 2,257, Bayerische Motoren Werke AG 42,704 2,148,904 2,209, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. Standard Life 55

56 Specific note to interim unaudited financial statements Ideal Fidelity Global Asset Allocation 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $100,000 (December 31, $23,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 56 Standard Life

57 Ideal Dividend Income Fund Statement of net assets ASSETS Investments, at fair value* 11,872,532 7,672,682 Subscriptions receivable 17,674 44,749 Other accounts receivable Total assets 11,890,389 7,717,440 LIABILITIES Redemptions payable 18, ,886 Management fees payable 1, Audit fees payable 1,890 - Other liabilities Total liabilities 21, ,973 NET ASSETS 11,869,065 7,601,467 Net assets per unit (note 3) Back-end 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 12,425,903 7,453,579 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 237,081 52,728 Other income (loss) 1, Total investment income (loss) 238,542 52,935 EXPENSES (note 5) Management fees 11,199 1,197 Audit fees 1,985 1,708 Other operating expenses ,199 2,910 Less: expenses absorbed by the manager (15 ) (5) Total expenses 13,184 2,905 NET INVESTMENT INCOME (LOSS) 225,358 50,030 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 3,939 (48,117 ) Change in unrealized appreciation (depreciation) in value of investments (772,474 ) 157,471 NET GAIN (LOSS) ON INVESTMENTS (768,535) 109,354 ASSETS FROM OPERATIONS (543,177 ) 159,384 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.59) 0.76 No-load Option with Resets (0.53) 1.34 Platinum No-load Option (1.09) /100 Series (0.87) /100 Platinum Series (0.52) N/A 100/100 Series (0.61) /100 Platinum Series (0.51) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (543,177 ) 159,384 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 6,183,367 1,343,261 Payments for units redeemed (1,372,592) (374,036) Net capital unit transactions 4,810, ,225 ASSETS FOR THE PERIOD 4,267,598 1,128,609 NET ASSETS - beginning of period 7,601,467 1,479,389 NET ASSETS - end of period 11,869,065 2,607,998 Standard Life 57

58 Ideal Dividend Income Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Dividend Income Fund, A-Series 1,204,367 12,425,903 11,872,532 TOTAL INVESTMENTS % 12,425,903 11,872,532 Other assets, less liabilities (0.03%) (3,467) (3,467) NET ASSETS % 12,422,436 11,869,065 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying fund Standard Life Dividend Income Fund Royal Bank of Canada 121,500 6,386,608 6,160, Toronto-Dominion Bank, (The) 73,800 4,444,361 5,090, Canadian Imperial Bank of Commerce 62,700 4,140,972 4,146, Bank of Nova Scotia, (The) 82,800 3,681,686 4,060, Suncor Energy Inc. 109,000 3,708,905 3,414, Canadian Natural Resources Limited 83,600 2,889,879 2,953, Manulife Financial Corporation 128,800 3,465,222 1,989, Xcel Energy Inc. 83,600 1,822,361 1,833, Rogers Communications Inc., B 51,900 1,657,184 1,805, Cenovus Energy Inc. 65,395 1,944,240 1,791, Bank of Montreal 30,983 1,814,042 1,788, Canadian Oil Sands Trust 61,800 1,873,558 1,667, Talisman Energy Inc. 87,700 1,659,791 1,411, Canadian National Railway Company 22,800 1,133,575 1,391, International Business Machines Corporation 10,000 1,196,276 1,313, Air Products and Chemicals Inc. 17,800 1,363,957 1,228, Thomson Reuters Corporation 28,100 1,084,870 1,070, Nexen Inc. 50,000 1,190,957 1,047, Intact Financial Corporation 22, ,054 1,010, TransCanada Corporation 27, , , Great-West Lifeco Inc. 40,500 1,066, , Vermilion Energy Trust 29, , , Shaw Communications Inc. 50,000 1,050, , Pfizer Inc. 61,400 1,205, , Shoppers Drug Mart Corporation 26,100 1,212, , Standard Life

59 Specific note to interim unaudited financial statements Ideal Dividend Income 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $1,148,000 (December 31, $732,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund has indirect interest rate risk exposure through the underlying fund s holdings in short-term investments which have remaining terms to maturity of less than one year. The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration and was not significant. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in a currency other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in this currency relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD Net assets by currency ($) 1,915,440 Impact on net assets (+/-10%) ($) 191,544 as at December 31, 2009 USD Net assets by currency ($) 734,318 Impact on net assets (+/-10%) ($) 73,432 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 and other assets. Standard Life 59

60 Ideal Canadian Dividend Growth Fund Statement of net assets ASSETS Investments, at fair value* 585,342, ,519,825 Cash 6,362 19,113 Subscriptions receivable 439, ,172 Receivable from investments sold - 64,114 Total assets 585,787, ,515,224 LIABILITIES Redemptions payable 394, ,583 Payable on investments purchased 134,090 50,092 Management fees payable 137,704 17,646 Audit fees payable 1,890 - Other liabilities 6, Total liabilities 675, ,203 NET ASSETS 585,112, ,711,021 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 559,492, ,073,168 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 2,395,736 4,031,522 Total investment income (loss) 2,395,736 4,031,522 EXPENSES (note 5) Management fees 1,721,119 1,356,947 Audit fees 1,985 1,823 Other operating expenses 933 1,340 1,724,037 1,360,110 Less: expenses absorbed by the manager (933) (1,340) Total expenses 1,723,104 1,358,770 NET INVESTMENT INCOME (LOSS) 672,632 2,672,752 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 1,310,555 (4,398,809) Change in unrealized appreciation (depreciation) in value of investments (29,596,903) 51,422,580 NET GAIN (LOSS) ON INVESTMENTS (28,286,348) 47,023,771 ASSETS FROM OPERATIONS (27,613,716 ) 49,696,523 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.96) 1.75 No-load Option (0.94) 1.77 No-load Option with Resets (0.99) 1.88 Platinum No-load Option (1.03) /100 Series (0.89) /100 Platinum Series (1.08) N/A 100/100 Series (0.72) /100 Platinum Series (0.88) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (27,613,716 ) 49,696,523 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 73,336,728 46,610,945 Payments for units redeemed (65,321,825) (58,939,815 ) Net capital unit transactions 8,014,903 (12,328,870) ASSETS FOR THE PERIOD (19,598,813 ) 37,367,653 NET ASSETS - beginning of period 604,711, ,445,616 NET ASSETS - end of period 585,112, ,813, Standard Life

61 Ideal Canadian Dividend Growth Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Canadian Dividend Growth Fund, A-Series 14,587, ,492, ,342,163 TOTAL INVESTMENTS 100,04% 559,492, ,342,163 Other assets, less liabilities 0,04% (229,955) (229,955) NET ASSETS % 559,262, ,112,208 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying fund Standard Life Canadian Dividend Growth Fund Toronto-Dominion Bank, (The) 2,136, ,257, ,375, Royal Bank of Canada 2,762, ,016, ,048, Bank of Nova Scotia, (The) 2,785, ,562, ,598, Canadian Imperial Bank of Commerce 1,573,400 98,683, ,064, Suncor Energy Inc. 2,951,500 96,704,679 92,470, Canadian Natural Resources Limited 2,133,600 84,268,698 75,380, Canadian National Railway Company 1,059,200 42,761,094 64,621, Manulife Financial Corporation 3,832, ,137,753 59,212, Barrick Gold Corporation 1,093,700 49,759,080 52,847, Imperial Oil Limited 1,124,703 24,294,223 43,615, Talisman Energy Inc. 2,658,000 49,829,970 42,793, Rogers Communications Inc., B 1,176,100 38,636,841 40,904, Canadian Oil Sands Trust 1,506,300 52,604,629 40,655, Cenovus Energy Inc. 1,482,200 28,226,023 40,612, Bank of Montreal 602,400 33,323,226 34,782, Great-West Lifeco Inc. 1,390,900 32,086,263 33,465, Thomson Reuters Corporation 798,400 35,740,357 30,419, Shaw Communications Inc. 1,557,800 21,943,249 29,863, IGM Financial Inc. 793,300 26,920,662 29,447, Industrial Alliance Insurance and Financial Services Inc. 811,800 20,603,709 28,331, Intact Financial Corporation 600,000 19,158,104 26,940, Reitmans (Canada) Limited, Non-voting, A 1,354,600 9,968,537 25,385, Shoppers Drug Mart Corporation 718,400 31,080,749 23,642, Vermilion Energy Trust 691,100 23,276,714 23,172, EnCana Corporation 708,400 14,826,214 22,838, Standard Life 61

62 Specific note to interim unaudited financial statements Ideal Canadian Dividend Growth 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $57,522,000 (December 31, $59,322,000). In practice, actual results may differ materially from this sensitivity analysis. 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 through the underlying fund s holdings in short-term investments which have remaining terms to maturity of less than one year. The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration and was not significant. 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 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 debt securities and other assets. 62 Standard Life

63 Ideal Canadian Equity Fund Statement of net assets ASSETS Investments, at fair value* 197,217, ,423,931 Short-term investments 1,500, ,000 Cash 227, ,713 Subscriptions receivable 87, ,132 Interest accrued 20 3 Dividends receivable 337, ,589 Receivable from investments sold - 675,134 Total assets 199,370, ,449,502 LIABILITIES Redemptions payable 114, ,662 Payable on investments purchased - 45,612 Management fees payable 207,809 28,920 Custodian fees payable Other liabilities 10,391 1,448 Total liabilities 332, ,681 NET ASSETS 199,037, ,089,821 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 172,532, ,932,598 Statement of operations for the periods ended June 30 INVESTMENT INCOME Interest 1,665 7,949 Dividends 2,296,960 2,883,274 Foreign exchange gain (loss) (56,691) (306,770) Other income (loss) 14,073 19,602 Less: foreign withholding taxes (30,409) (49,732) Total investment income (loss) 2,225,598 2,554,323 EXPENSES (note 5) Management fees 2,704,981 2,422,458 Custodian fees 9,260 8,259 Audit fees 2,790 2,947 Interest Other operating expenses ,717,506 2,434,318 Less: expenses absorbed by the manager (11,365) (11,203) Total expenses 2,706,141 2,423,115 NET INVESTMENT INCOME (LOSS) (480,543) 131,208 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 1,960,343 (986,304) Net realized gain (loss) on forward foreign currency contracts (8,079) (6,895) Change in unrealized appreciation (depreciation) in value of investments (13,806,850) 24,824,927 Transaction costs (note 2) (137,178 ) (175,794) NET GAIN (LOSS) ON INVESTMENTS (11,991,764 ) 23,655,934 ASSETS FROM OPERATIONS (12,472,307) 23,787,142 Increase (decrease) in net assets from operations per unit Back-end Load Option (2.92) 5.18 No-load Option (3.11 ) 5.31 No-load Option with Resets (2.94) 5.46 Platinum No-load Option (3.31) /100 Series (1.02) /100 Platinum Series (0.40) N/A 100/100 Series (0.84) /100 Platinum Series (1.30) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (12,472,307) 23,787,142 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 15,485,996 13,609,334 Payments for units redeemed (22,065,782) (22,440,123) Net capital unit transactions (6,579,786) (8,830,789) ASSETS FOR THE PERIOD (19,052,093) 14,956,353 NET ASSETS - beginning of period 218,089, ,944,705 NET ASSETS - end of period 199,037, ,901,058 Standard Life 63

64 Ideal Canadian Equity Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Shares cost ($) value ($) CANADIAN EQUITIES ENERGY 23.80% ARC Energy Trust 51,450 1,036,255 1,014,080 Canadian Natural Resources Limited 298,000 9,083,458 10,528,340 Canadian Oil Sands Trust 138,400 5,007,606 3,735,416 Cenovus Energy Inc. 212,892 4,711,525 5,833,241 EnCana Corporation 68,592 1,590,101 2,211,406 Gran Tierra Energy Inc. 440,000 2,055,549 2,332,000 Niko Resources Ltd. 30,000 2,384,528 2,970,300 Suncor Energy Inc. 324,440 12,034,672 10,164,705 Talisman Energy Inc. 188,770 2,758,846 3,039,197 TransCanada Corporation 109,600 3,693,497 3,902,856 Vermilion Energy Trust 49,000 1,561,448 1,642,970 MATERIALS 19.56% Agrium Inc. 23,000 1,143,189 1,195,770 Barrick Gold Corporation 183,500 6,181,112 8,866,720 Consolidated Thompson Iron Mines Limited 189,300 1,115,857 1,370,532 Goldcorp Inc. 156,163 4,334,562 7,278,757 HudBay Minerals Inc. 110,000 1,583,466 1,228,700 IAMGOLD Corporation 135,000 1,737,062 2,532,600 Labrador Iron Ore Royalty Income Fund 45,150 1,653,678 1,927,905 Potash Corporation of Saskatchewan Inc. 81,550 5,049,213 7,476,504 Quadra FNX Mining Ltd. 174,550 2,547,337 1,698,372 Red Back Mining Inc. 90,000 2,007,214 2,421,000 Teck Resources Limited, Subordinated Voting, B 93,000 2,872,776 2,927,640 INDUSTRIALS 5.96% ATS Automation Tooling Systems Inc. 178,500 1,049,080 1,008,525 Bombardier Inc., Subordinated Voting, B 226,300 1,037,156 1,095,292 Canadian National Railway Company 82,600 2,268,712 5,039,426 Canadian Pacific Railway Limited 34,600 1,437,061 1,974,276 Finning International Inc. 38, , ,940 SNC-Lavalin Group Inc. 48, ,648 2,066,585 CONSUMER DISCRETIONARY 3.37% Canadian Tire Corporation, Limited 38,000 1,979,643 2,019,700 Dollarama Inc. 40,200 1,024, ,528 Shaw Communications Inc. 80,000 1,508,967 1,533,600 Thomson Reuters Corporation 57,000 2,499,566 2,171,700 CONSUMER STAPLES 1.89% Loblaw Companies Limited 40,000 1,254,378 1,544,400 Shoppers Drug Mart Corporation 67,300 2,610,932 2,214,843 FINANCIALS 27.58% Bank of Montreal 94,400 4,965,440 5,450,656 Bank of Nova Scotia, (The) 242,050 9,828,937 11,870,132 Canadian Imperial Bank of Commerce 69,700 4,564,280 4,609,958 Great-West Lifeco Inc. 66,600 1,493,576 1,602,396 IGM Financial Inc. 32, ,127 1,191,552 Manulife Financial Corporation 231,500 5,637,356 3,576,675 Royal Bank of Canada 281,900 9,492,011 14,292,330 Toronto-Dominion Bank, (The) 178,450 7,630,727 12,309,481 INFORMATION TECHNOLOGY 1.81% Research In Motion Limited 68,700 4,451,985 3,595,071 TELECOMMUNICATIONS 2.24% Rogers Communications Inc., B 65,800 1,195,483 2,288,524 TELUS Corporation 54,000 1,964,615 2,169,180 Par value ($) Average Fair Issuer / Interest rate / Maturity date or shares cost ($) value ($) U.S. EQUITIES MATERIALS 0.76% Cliffs Natural Resources Inc. 30,000 1,281,540 1,506,515 INDUSTRIALS 3.01% Deere & Company 20,000 1,179,059 1,184,474 General Electric Company 127,800 2,123,921 1,957,844 Rockwell Automation 16, , ,520 United Parcel Service, Inc. 33,300 2,212,934 2,015,754 CONSUMER STAPLES 2.43% Alberto-Culver Company 70,700 1,928,752 2,040,494 PepsiCo Inc. 31,300 2,033,418 2,029,642 Wal-Mart Stores Inc. 15, , ,310 HEALTH CARE 2.24% Amgen Inc. 25,000 1,437,438 1,399,949 Johnson & Johnson 16,700 1,184,662 1,049,662 Medtronic Inc. 52,200 2,198,006 2,016,157 FINANCIALS 0.34% Charles Schwab Corporation, (The) 45, , ,842 INFORMATION TECHNOLOGY 4.10% Apple Inc. 9,000 1,825,416 2,409,530 Cisco Systems Inc. 50,000 1,262,883 1,133,799 Microsoft Corporation 80,500 2,820,396 1,971,107 Oracle Corporation 55,000 1,081,269 1,255,962 QUALCOMM Incorporated 39,500 1,423,648 1,380,137 TOTAL U.S. EQUITIES 12.88% 26,613,998 25,633,698 Transaction costs (note 2) (175,488 ) - TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 99.09% 172,532, ,217,479 SHORT-TERM INVESTMENTS National Bank of Canada, 0.500%, 2010/07/02 750, , ,000 Royal Bank of Canada, 0.450%, 2010/07/02 750, , ,000 TOTAL SHORT-TERM INVESTMENTS 0.75% 1,500,000 1,500,000 TOTAL INVESTMENTS 99.84% 174,032, ,717,479 Other assets, less liabilities 0.16% 320, ,249 NET ASSETS % 174,353, ,037,728 TOTAL CANADIAN EQUITIES 86.21% 146,094, ,583, Standard Life

65 Specific note to interim unaudited financial statements Ideal Canadian Equity 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 - 1,500,000-1,500,000 Equities 197,217, ,217,479 as at December 31, 2009 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 350, ,000 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 AA 50 - A Total Equities 216,423, ,423,931 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 $19,722,000 (December 31, $21,642,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is exposed to interest rate risk through its holdings in shortterm investments which have remaining terms to maturity of less than one year. The Fund s sensitivity to interest rate changes was estimated using the weighted average duration and was not significant. Currency risk The Fund is exposed to currency risk since it holds assets and liabilities denominated in a currency other than Canadian dollars, the functional currency. The table below summarizes the Fund s exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in this currency relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD Net assets by currency ($) 25,811,236 Impact on net assets (+/-10%) ($) 2,581,124 as at December 31, 2009 USD Net assets by currency ($) 20,395,566 Impact on net assets (+/-10%) ($) 2,039,557 In practice, actual results may differ materially from this sensitivity analysis. Standard Life 65

66 Ideal Canadian Equity Focus Fund Statement of net assets ASSETS Investments, at fair value* 8,484,488 8,369,114 Subscriptions receivable 572 1,315 Receivable from investments sold Other accounts receivable 32 4 Total assets 8,485,092 8,370,533 LIABILITIES Redemptions payable 1, Management fees payable Audit fees payable 1,890 - Other liabilities Total liabilities 4, NET ASSETS 8,481,092 8,370,377 Net assets per unit (note 3) Back-end 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 8,731,995 8,075,951 Statement of operations for the periods ended June 30 INVESTMENT INCOME Other income (loss) Total investment income (loss) EXPENSES (note 5) Management fees 6,704 1,825 Audit fees 1,985 1,709 Other operating expenses ,703 3,543 Less: expenses absorbed by the manager (14 ) (9) Total expenses 8,689 3,534 NET INVESTMENT INCOME (LOSS) (8,318 ) (3,298) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 60,088 (56,900) Change in unrealized appreciation (depreciation) in value of investments (540,670) 580,618 NET GAIN (LOSS) ON INVESTMENTS (480,582) 523,718 ASSETS FROM OPERATIONS (488,900) 520,420 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.38) 1.00 No-load Option with Resets (1.11 ) 1.09 Platinum No-load Option (0.45) /100 Series (1.12 ) /100 Platinum Series (0.52) N/A 100/100 Series (1.12 ) /100 Platinum Series (1.33) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (488,900) 520,420 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 3,085,675 4,584,185 Payments for units redeemed (2,486,060) (427,565) Net capital unit transactions 599,615 4,156,620 ASSETS FOR THE PERIOD 110,715 4,677,040 NET ASSETS - beginning of period 8,370,377 2,152,807 NET ASSETS - end of period 8,481,092 6,829, Standard Life

67 Ideal Canadian Equity Focus Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Canadian Equity Focus Fund, A-Series 859,441 8,731,995 8,484,488 TOTAL INVESTMENTS % 8,731,995 8,484,488 Other assets, less liabilities 0.04% (3,396) (3,396) NET ASSETS % 8,728,599 8,481,092 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying fund Standard Life Canadian Equity Focus Fund Royal Bank of Canada 56,500 2,786,401 2,864, Toronto-Dominion Bank, (The) 40,200 2,476,136 2,772, Bank of Nova Scotia, (The) 43,200 1,822,633 2,118, Suncor Energy Inc. 66,416 2,130,885 2,080, Canadian Natural Resources Limited 58,800 1,918,933 2,077, Canadian Imperial Bank of Commerce 23,300 1,576,571 1,541, Manulife Financial Corporation 96,300 2,464,822 1,487, Goldcorp Inc. 31,900 1,316,564 1,486, Cenovus Energy Inc. 52,400 1,473,286 1,435, Potash Corporation of Saskatchewan Inc. 15,500 1,689,568 1,421, Research In Motion Limited 24,700 1,962,705 1,292, IAMGOLD Corporation 59, ,113 1,112, Red Back Mining Inc. 40, ,483 1,086, IESI-BFC Ltd. 42, , , Niko Resources Ltd. 9, , , Gildan Activewear Inc. 27, , , Magna International Inc., A 12, , , Teck Resources Limited, Subordinated Voting, B 25, , , Canadian Pacific Railway Limited 13, , , Finning International Inc. 41, , , Shoppers Drug Mart Corporation 22, , , SNC-Lavalin Group Inc. 16, , , Canadian Tire Corporation, Limited 13, , , Open Text Corporation 17, , , Ensign Energy Services Inc. 54, , , Standard Life 67

68 Specific note to interim unaudited financial statements Ideal Canadian Equity Focus 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $827,000 (December 31, $826,000). In practice, actual results may differ materially from this sensitivity analysis. 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 through the underlying fund s holdings in short-term investments which have remaining terms to maturity of less than one year. The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration and was not significant. 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 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 debt securities and other assets. 68 Standard Life

69 Ideal Canadian Small Cap Fund Statement of net assets ASSETS Investments, at fair value* 91,428,761 96,061,014 Subscriptions receivable 16, ,645 Receivable from investments sold 4,661 1,362 Other accounts receivable 2, Total assets 91,451,893 96,215,313 LIABILITIES Redemptions payable 39,103 99,868 Payable on investments purchased - 10,000 Management fees payable 1, Audit fees payable 1,890 - Other liabilities Total liabilities 42, ,996 NET ASSETS 91,409,306 96,105,317 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 99,417,815 95,748,073 Statement of operations for the periods ended June 30 INVESTMENT INCOME Other income (loss) 27,000 18,322 Total investment income (loss) 27,000 18,322 EXPENSES (note 5) Management fees 16,530 5,091 Audit fees 1,985 1,823 Other operating expenses ,666 7,092 Less: expenses absorbed by the manager (151 ) (178 ) Total expenses 18,515 6,914 NET INVESTMENT INCOME (LOSS) 8,485 11,408 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (137,965) (2,079,262) Change in unrealized appreciation (depreciation) in value of investments (8,301,995) 8,032,193 NET GAIN (LOSS) ON INVESTMENTS (8,439,960) 5,952,931 ASSETS FROM OPERATIONS (8,431,475 ) 5,964,339 Increase (decrease) in net assets from operations per unit Back-end Load Option (1.56) 1.18 No-load Option (1.56) 1.20 No-load Option with Resets (1.60) 1.28 Platinum No-load Option (1.59) /100 Series (1.48) /100 Platinum Series (0.98) N/A 100/100 Series (1.52) /100 Platinum Series (1.85) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (8,431,475 ) 5,964,339 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 16,455,668 5,513,012 Payments for units redeemed (12,720,204) (6,768,968) Net capital unit transactions 3,735,464 (1,255,956) ASSETS FOR THE PERIOD (4,696,011 ) 4,708,383 NET ASSETS - beginning of period 96,105,317 68,181,344 NET ASSETS - end of period 91,409,306 72,889,727 Standard Life 69

70 Ideal Canadian Small Cap Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Canadian Small Cap Fund, A-Series 4,828,329 99,417,815 91,428,761 TOTAL INVESTMENTS % 99,417,815 91,428,761 Other assets, less liabilities (0.02%) (19,455) (19,455) NET ASSETS % 99,398,360 91,409,306 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying fund Standard Life Canadian Small Cap Fund Canadian Western Bank 308,700 4,304,197 7,294, Reitmans (Canada) Limited, Non-voting, A 369,980 4,640,173 6,933, Gran Tierra Energy Inc. 1,129,000 4,852,050 5,983, Cominar Real Estate Investment Trust 300,000 5,662,096 5,565, Labrador Iron Ore Royalty Income Fund 126,900 4,195,635 5,418, Minefinders Corporation Ltd. 538,100 6,078,845 5,079, GENIVAR Income Fund 196,700 3,089,018 5,017, ATS Automation Tooling Systems Inc. 886,300 6,559,078 5,007, Dorel Industries Inc., Subordinated Voting 145,629 5,188,040 4,847, Pason Systems Inc. 428,716 4,372,338 4,844, Russel Metals Inc. 264,600 4,727,056 4,768, Bankers Petroleum Ltd. 663,500 2,880,599 4,637, Martinrea International Inc. 618,000 5,596,181 4,635, Major Drilling Group International Inc. 204,700 5,200,246 4,439, Lake Shore Gold Corp. 1,365,600 5,539,520 4,356, Churchill Corporation, (The) 239,000 4,834,026 4,282, Aastra Technologies Limited 185,800 5,243,333 4,236, North West Company Fund 216,400 3,854,870 4,137, Atrium Innovations Inc. 269,700 3,924,563 4,118, Stantec Inc. 168,976 3,052,629 3,982, Calfrac Well Services Ltd. 200,400 5,211,328 3,871, CCL Industries Inc., Non-voting, B 115,000 3,357,591 3,248, Crew Energy Inc. 211,900 2,367,375 3,186, Northgate Exploration Ltd. 998,300 2,381,649 3,164, Capstone Mining Corp. 1,453,700 4,468,118 3,125, Standard Life

71 Specific note to interim unaudited financial statements Ideal Canadian Small Cap 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $8,920,000 (December 31, $9,337,000). In practice, actual results may differ materially from this sensitivity analysis. 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 through the underlying fund s holdings in short-term investments which have remaining terms to maturity of less than one year. The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration and was not significant. 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 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 debt securities and other assets. Standard Life 71

72 Ideal U.S. Dividend Growth Fund Statement of net assets ASSETS Investments, at fair value* 1,217,102 1,260,953 Subscriptions receivable Other accounts receivable 24 2 Total assets 1,217,145 1,260,993 LIABILITIES Management fees payable 74 9 Other liabilities 4 - Total liabilities 78 9 NET ASSETS 1,217,067 1,260,984 Net assets per unit (note 3) Back-end 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 1,337,192 1,310,594 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds Other income (loss) Total investment income (loss) EXPENSES (note 5) Management fees Audit fees 1,883 1,988 Other operating expenses 2 3 2,781 2,646 Less: expenses absorbed by the manager (1,885) (1,991) Total expenses NET INVESTMENT INCOME (LOSS) (627) 230 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (8,847) (28,695) Change in unrealized appreciation (depreciation) in value of investments (70,449) (14,365) NET GAIN (LOSS) ON INVESTMENTS (79,296) (43,060) ASSETS FROM OPERATIONS (79,923) (42,830) Increase (decrease) in net assets from operations per unit Back-end Load Option (0.44) (0.35) No-load Option with Resets (0.55) 0.02 Platinum No-load Option (0.54) (0.47) 75/100 Series (0.96) (0.02) 75/100 Platinum Series (0.91) N/A 100/100 Series (0.85) /100 Platinum Series (0.65) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (79,923) (42,830) CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 413, ,251 Payments for units redeemed (377,189) (246,232) Net capital unit transactions 36, ,019 ASSETS FOR THE PERIOD (43,917 ) 127,189 NET ASSETS - beginning of period 1,260, ,715 NET ASSETS - end of period 1,217,067 1,057, Standard Life

73 Ideal U.S. Dividend Growth Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life U.S. Dividend Growth Fund, A-Series 178,489 1,337,192 1,217,102 TOTAL INVESTMENTS % 1,337,192 1,217,102 Other assets, less liabilities 0.00% (35) (35) NET ASSETS % 1,337,157 1,217,067 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date or shares cost ($) value ($) underlying fund Standard Life U.S. Dividend Growth Fund Altria Group Inc. 65,800 1,592,152 1,402, Exxon Mobil Corporation 17,500 1,371,383 1,061, AT&T Inc. 41,000 1,228,732 1,054, J.P. Morgan Chase & Co. 26,200 1,030,870 1,020, Utilities Select Sector SPDR Fund 33,300 1,043,792 1,001, Pfizer Inc. 63,905 1,189, , PepsiCo Inc. 14, , , Johnson & Johnson 13, , , M Company 10, , , Philip Morris International Inc. 16, , , Kellogg Company 15, , , Sysco Corporation 26, , , United Parcel Service, Inc. 13, , , Time Warner Cable Inc., A 14, , , Microsoft Corporation 31, , , Raymond James Financial Inc. 29, , , Cooper Industries Ltd., A 14, , , U.S. Bancorp 28, , , Deere & Company 11, , , International Business Machines Corporation 5, , , Royal Bank of Canada, 0.450%, 2010/07/02 650, , , Walt Disney Company, (The) 19, , , Wells Fargo & Company 23, , , Bank of America Corporation 42, , , Praxair Inc. 7, , , Standard Life 73

74 Specific note to interim unaudited financial statements Ideal U.S. Dividend Growth 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $115,000 (December 31, $120,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund has indirect interest rate risk exposure through the underlying fund s holdings in short-term investments which have remaining terms to maturity of less than one year. The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration and was not significant. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in a currency other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in this currency relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD Net assets by currency ($) 1,156,417 Impact on net assets (+/-10%) ($) 115,642 as at December 31, 2009 USD Net assets by currency ($) 1,210,967 Impact on net assets (+/-10%) ($) 121,097 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 and other assets. 74 Standard Life

75 Ideal U.S. Equity Fund Statement of net assets ASSETS Investments, at fair value* 15,525,263 17,915,319 Cash - 2,278 Subscriptions receivable ,390 Receivable from investments sold 3,193 - Other accounts receivable 56 8 Total assets 15,528,745 17,936,995 LIABILITIES Redemptions payable 4,322 8,641 Payable on investments purchased - 4,903 Management fees payable 1, Audit fees payable 1,890 - Other liabilities Total liabilities 7,838 13,771 NET ASSETS 15,520,907 17,923,224 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 24,771,249 26,675,655 Statement of operations for the periods ended June 30 INVESTMENT INCOME Other income (loss) Total investment income (loss) EXPENSES (note 5) Management fees 19,817 20,491 Audit fees 1,985 1,823 Other operating expenses ,828 22,363 Less: expenses absorbed by the manager (26) (49) Total expenses 21,802 22,314 NET INVESTMENT INCOME (LOSS) (21,105) (21,760) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (717,499) (960,799) Change in unrealized appreciation (depreciation) in value of investments (485,650) 767,996 NET GAIN (LOSS) ON INVESTMENTS (1,203,149) (192,803) ASSETS FROM OPERATIONS (1,224,254) (214,563) Increase (decrease) in net assets from operations per unit Back-end Load Option (0.43) (0.07) No-load Option (0.40) (0.09) No-load Option with Resets (0.42) (0.02) Platinum No-load Option (0.42) (0.03) 75/100 Series (1.34) /100 Platinum Series (0.73) N/A 100/100 Series (1.10 ) /100 Platinum Series (0.72) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (1,224,254) (214,563) CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 794, ,076 Payments for units redeemed (1,972,357) (1,825,030) Net capital unit transactions (1,178,063) (1,011,954) ASSETS FOR THE PERIOD (2,402,317 ) (1,226,517 ) NET ASSETS - beginning of period 17,923,224 19,772,384 NET ASSETS - end of period 15,520,907 18,545,867 Standard Life 75

76 Ideal U.S. Equity Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life U.S. Equity Fund, A-Series 2,045,921 24,771,249 15,525,263 TOTAL INVESTMENTS % 24,771,249 15,525,263 Other assets, less liabilities (0.03%) (4,356) (4,356) NET ASSETS % 24,766,893 15,520,907 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying fund Standard Life U.S. Equity Fund Exxon Mobil Corporation 12, , , Apple Inc. 2, , , Bank of America Corporation 37, , , J.P. Morgan Chase & Co. 13, , , Wells Fargo & Company 19, , , Microsoft Corporation 20, , , Johnson & Johnson 8, , , International Business Machines Corporation 3, , , Pfizer Inc. 31, , , General Electric Company 31,500 1,150, , Cisco Systems Inc. 20, , , PepsiCo Inc. 6, , , Alberto-Culver Company 14, , , Procter & Gamble Company, (The) 6, , , Occidental Petroleum Corporation 4, , , United Parcel Service, Inc. 5, , , United Technologies Corporation 5, , , Walt Disney Company, (The) 10, , , Utilities Select Sector SPDR Fund 11, , , MetLife Inc. 7, , , U.S. Bancorp 12, , , Oracle Corporation 12, , , Kellogg Company 5, , , Time Warner Cable Inc., A 4, , , Medtronic Inc. 7, , , Standard Life

77 Specific note to interim unaudited financial statements Ideal U.S. Equity 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $1,501,000 (December 31, $1,769,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund is not significantly subject to indirect risk since the majority of the underlying fund s s financial assets and liabilities is not interest bearing. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in a currency other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in this currency relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD Net assets by currency ($) 15,552,548 Impact on net assets (+/-10%) ($) 1,555,255 as at December 31, 2009 USD Net assets by currency ($) 17,889,995 Impact on net assets (+/-10%) ($) 1,789,000 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 other assets. Standard Life 77

78 Ideal U.S. Equity Focus Fund Statement of net assets ASSETS Investments, at fair value* 443, ,133 Subscriptions receivable - 7,527 Other accounts receivable 3 - Total assets 443, ,660 LIABILITIES Management fees payable 61 6 Other liabilities 3 - Total liabilities 64 6 NET ASSETS 443, ,654 Net assets per unit (note 3) Back-end 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 483, ,651 Statement of operations for the periods ended June 30 INVESTMENT INCOME Other income (loss) Total investment income (loss) EXPENSES (note 5) Management fees Audit fees 1,883 1,988 Other operating expenses 1 1 2,599 2,441 Less: expenses absorbed by the manager (1,884) (1,989) Total expenses NET INVESTMENT INCOME (LOSS) (688) (442) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 1,402 (17,589) Change in unrealized appreciation (depreciation) in value of investments (40,859) 26,934 NET GAIN (LOSS) ON INVESTMENTS (39,457) 9,345 ASSETS FROM OPERATIONS (40,145) 8,903 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.68) 0.01 No-load Option with Resets (0.78) 0.96 Platinum No-load Option (0.75) /100 Series (1.03) /100 Platinum Series (0.93) N/A 100/100 Series (1.05) /100 Platinum Series (0.94) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (40,145) 8,903 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 185, ,714 Payments for units redeemed (173,461) (99,676 ) Net capital unit transactions 12,255 85,038 ASSETS FOR THE PERIOD (27,890) 93,941 NET ASSETS - beginning of period 471, ,987 NET ASSETS - end of period 443, , Standard Life

79 Ideal U.S. Equity Focus Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life U.S. Equity Focus Fund, A-Series 63, , ,825 TOTAL INVESTMENTS % 483, ,825 Other assets, less liabilities (0.01%) (61) (61) NET ASSETS % 483, ,764 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer/Interest rate/maturity date or shares cost ($) value ($) underlying fund Standard Life U.S. Equity Focus Fund J.P. Morgan Chase & Co. 26,700 1,032,592 1,040, Alberto-Culver Company 35,600 1,005,738 1,027, Bank of America Corporation 63,100 1,143, , Apple Inc. 3, , , Procter & Gamble Company, (The) 15, , , Wells Fargo & Company 33, , , Pfizer Inc. 54,400 1,043, , Royal Bank of Canada, 0.450%, 2010/07/02 800, , , EOG Resources Inc. 7, , , Occidental Petroleum Corporation 9, , , PepsiCo Inc. 12, , , General Electric Company 45,100 1,137, , Dow Chemical Company, (The) 26, , , Microsoft Corporation 27, , , Utilities Select Sector SPDR Fund 21, , , Kellogg Company 11, , , QUALCOMM Incorporated 18, , , Danaher Corporation 15, , , Oracle Corporation 26, , , Cisco Systems Inc. 26, , , Johnson & Johnson 9, , , Walt Disney Company, (The) 17, , , MetLife Inc. 14, , , WESCO International, Inc. 15, , , Staples Inc. 27, , , Standard Life 79

80 Specific note to interim unaudited financial statements Ideal U.S. Equity Focus 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $42,000 (December 31, $45,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund has indirect interest rate risk exposure through the underlying fund s holdings in short-term investments which have remaining terms to maturity of less than one year. The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration and was not significant. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in a currency other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in this currency relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD Net assets by currency ($) 423,248 Impact on net assets (+/-10%) ($) 42,325 as at December 31, 2009 USD Net assets by currency ($) 448,228 Impact on net assets (+/-10%) ($) 44,823 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 and other assets. 80 Standard Life

81 Ideal U.S. Mid Cap Fund Statement of net assets ASSETS Investments, at fair value* 524, ,442 Other accounts receivable 22 4 Total assets 524, ,446 LIABILITIES Management fees payable 50 4 Other liabilities 2 - Total liabilities 52 4 NET ASSETS 524, ,442 Net assets per unit (note 3) Back-end 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 555, ,901 Statement of operations for the periods ended June 30 INVESTMENT INCOME Other income (loss) Total investment income (loss) EXPENSES (note 5) Management fees Audit fees 1,883 1,988 Other operating expenses 1 1 2,421 2,140 Less: expenses absorbed by the manager (1,884) (1,989) Total expenses NET INVESTMENT INCOME (LOSS) (263) 47 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (192) (74 ) Change in unrealized appreciation (depreciation) in value of investments (13,310 ) 6,105 NET GAIN (LOSS) ON INVESTMENTS (13,502) 6,031 ASSETS FROM OPERATIONS (13,765) 6,078 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.19 ) 0.29 No-load Option with Resets (0.17 ) 0.22 Platinum No-load Option (0.13 ) /100 Series (1.13 ) /100 Platinum Series (0.19 ) N/A 100/100 Series (0.41) /100 Platinum Series (0.20) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (13,765) 6,078 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 144, ,235 Payments for units redeemed (10,416 ) (1,806) Net capital unit transactions 134, ,429 ASSETS FOR THE PERIOD 120, ,507 NET ASSETS - beginning of period 404, ,886 NET ASSETS - end of period 524, ,393 Standard Life 81

82 Ideal U.S. Mid Cap Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life U.S. Mid Cap Fund, A-Series 73, , ,819 TOTAL INVESTMENTS 100,01% 555, ,819 Other assets, less liabilities (0,01%) (30) (30) NET ASSETS 100,00% 555, ,789 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date or shares cost ($) value ($) underlying fund Standard Life U.S. Mid Cap Fund Telephone and Data Systems, Inc. 24, , , AMETEK, Inc. 18, , , Nalco Holding Company 31, , , HCC Insurance Holdings Inc. 25, , , Alberto-Culver Company 19, , , Cimarex Energy Co. 7, , , Wisconsin Energy Corporation 10, , , Electronic Arts Inc. 34, , , DENTSPLY International Inc. 16, , , Raymond James Financial Inc. 18, , , Stericycle, Inc. 7, , , CF Industries Holdings, Inc. 7, , , AptarGroup, Inc. 11, , , Covance Inc. 8, , , Assurant, Inc. 12, , , Roper Industries, Inc. 7, , , Sigma Aldrich Corporation 8, , , Government of Canada, 0.395%, 2010/08/05 450, , , Medicis Pharmaceutical Corporation, A 18, , , Brinker International, Inc. 27, , , Donaldson Company Inc. 9, , , Franklin Electric Co., Inc. 13, , , WESCO International, Inc. 11, , , Itron, Inc. 6, , , Meredith Corporation 11, , , Standard Life

83 Specific note to interim unaudited financial statements Ideal U.S. Mid Cap 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $50,000 (December 31, $38,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund has indirect interest rate risk exposure through the underlying fund s holdings in short-term investments which have remaining terms to maturity of less than one year. The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration and was not significant. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in a currency other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in this currency relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD Net assets by currency ($) 513,373 Impact on net assets (+/-10%) ($) 51,337 as at December 31, 2009 USD Net assets by currency ($) 385,546 Impact on net assets (+/-10%) ($) 38,555 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 and other assets. Standard Life 83

84 Ideal Global Dividend Growth Fund Statement of net assets ASSETS Investments, at fair value* 45,849,199 55,113,884 Subscriptions receivable 23,966 3,906 Other accounts receivable Total assets 45,873,362 55,117,820 LIABILITIES Redemptions payable 21,953 7,104 Management fees payable 2, Audit fees payable 1,890 - Other liabilities Total liabilities 26,999 7,547 NET ASSETS 45,846,363 55,110,273 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 62,740,530 66,797,966 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 73, ,890 Other income (loss) 2,715 1,899 Total investment income (loss) 76, ,789 EXPENSES (note 5) Management fees 38,966 33,784 Audit fees 1,985 1,823 Other operating expenses ,029 35,741 Less: expenses absorbed by the manager (78) (134 ) Total expenses 40,951 35,607 NET INVESTMENT INCOME (LOSS) 35, ,182 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (1,136,773) (1,538,301) Change in unrealized appreciation (depreciation) in value of investments (5,207,249) (474,849) NET GAIN (LOSS) ON INVESTMENTS (6,344,022) (2,013,150) ASSETS FROM OPERATIONS (6,308,928) (1,908,968) Increase (decrease) in net assets from operations per unit Back-end Load Option (1.12 ) (0.33) No-load Option (1.12 ) (0.27) No-load Option with Resets (1.13 ) (0.36) Platinum No-load Option (1.12 ) (0.22) 75/100 Series (1.41) /100 Platinum Series (1.16 ) N/A 100/100 Series (1.36) /100 Platinum Series (1.45) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (6,308,928) (1,908,968) CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 4,693,656 4,348,395 Payments for units redeemed (7,648,638) (6,046,181 ) Net capital unit transactions (2,954,982) (1,697,786) ASSETS FOR THE PERIOD (9,263,910 ) (3,606,754 ) NET ASSETS - beginning of period 55,110,273 54,691,590 NET ASSETS - end of period 45,846,363 51,084, Standard Life

85 Ideal Global Dividend Growth Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Global Dividend Growth Fund, A-Series 5,503,511 62,740,530 45,849,199 TOTAL INVESTMENTS % 62,740,530 45,849,199 Other assets, less liabilities (0.01%) (2,836) (2,836) NET ASSETS 100% 62,737,694 45,846,363 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying fund Standard Life Global Dividend Growth Fund Exxon Mobil Corporation 85,791 6,915,542 5,202, Merck & Co., Inc. 120,321 4,105,683 4,475, Zurich Financial Services 17,371 4,035,752 4,095, Apple Inc. 14,917 2,198,045 3,993, J.P. Morgan Chase & Co. 99,124 4,140,774 3,861, Tesco PLC 628,232 4,678,949 3,784, Pfizer Inc. 225,970 4,165,925 3,428, Philip Morris International Inc. 69,777 3,718,837 3,404, HSBC Holdings PLC 344,034 3,972,255 3,355, British American Tobacco p.l.c. 94,126 3,163,101 3,187, BHP Billiton PLC 112,727 3,627,782 3,133, Koninklijke Philips Electronics N.V. 96,884 3,048,275 3,121, Microsoft Corporation 127,035 3,690,571 3,110, Roche Holdings AG 21,029 3,643,993 3,086, CSX Corporation 55,065 2,141,036 2,907, Molson Coors Brewing Company, B 63,442 3,188,952 2,861, Hewlett-Packard Company 62,042 3,098,447 2,855, International Power PLC 590,094 2,812,822 2,804, Sanofi-Aventis 43,248 3,199,954 2,788, Balfour Beatty PLC 730,944 3,444,620 2,768, Occidental Petroleum Corporation 33,324 2,818,820 2,737, PepsiCo Inc. 41,400 2,869,966 2,684, Walt Disney Company, (The) 79,779 2,548,292 2,672, Hiscox Ltd 475,800 2,686,759 2,577, Johnson & Johnson 40,259 2,550,541 2,530, Standard Life 85

86 Specific note to interim unaudited financial statements Ideal Global Dividend Growth 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $4,355,000 (December 31, $5,333,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund has indirect interest rate risk exposure through the underlying fund s holdings in short-term investments which have remaining terms to maturity of less than one year. The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration and was not significant. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in currencies other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in these currencies relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD GBP EUR CHF Other currencies Net assets by 16,925,275 10,783,108 8,720,569 2,967,355 3,282,783 currency ($) Impact on net 1,692,528 1,078, , , ,278 assets (+/-10%) ($) as at December 31, 2009 USD GBP EUR CHF Other currencies Net assets by 23,078,738 11,837,142 10,536,159 2,841,679 3,793,941 currency ($) Impact on net 2,307,874 1,183,714 1,053, , ,394 assets (+/-10%) ($) 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. 86 Standard Life

87 Ideal Global Equity Fund Statement of net assets ASSETS Investments, at fair value* 8,564,684 8,362,792 Subscriptions receivable 8 1,019 Other accounts receivable 27 2 Total assets 8,564,719 8,363,813 LIABILITIES Redemptions payable 5,221 5,570 Management fees payable Audit fees payable 1,890 - Other liabilities Total liabilities 8,138 5,696 NET ASSETS 8,556,581 8,358,117 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 11,738,976 10,743,822 Statement of operations for the periods ended June 30 INVESTMENT INCOME Other income (loss) Total investment income (loss) EXPENSES (note 5) Management fees 11,458 7,798 Audit fees 1,985 1,823 Other operating expenses ,456 9,638 Less: expenses absorbed by the manager (13 ) (17) Total expenses 13,443 9,621 NET INVESTMENT INCOME (LOSS) (13,148) (9,561) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (101,291) (534,346) Change in unrealized appreciation (depreciation) in value of investments (793,262) 1,042,020 NET GAIN (LOSS) ON INVESTMENTS (894,553) 507,674 ASSETS FROM OPERATIONS (907,701) 498,113 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.67) 0.40 No-load Option (0.65) 0.49 No-load Option with Resets (0.66) 0.54 Platinum No-load Option (0.74 ) /100 Series (1.58) /100 Platinum Series (0.98) N/A 100/100 Series (1.27) /100 Platinum Series (1.34) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (907,701) 498,113 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 1,921,560 1,056,882 Payments for units redeemed (815,395) (1,054,500) Net capital unit transactions 1,106,165 2,382 ASSETS FOR THE PERIOD 198, ,495 NET ASSETS - beginning of period 8,358,117 6,770,751 NET ASSETS - end of period 8,556,581 7,271,246 Standard Life 87

88 Ideal Global Equity Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Global Equity Fund, A-Series 1,437,341 11,738,976 8,564,684 TOTAL INVESTMENTS % 11,738,976 8,564,684 Other assets, less liabilities (0.09%) (8,103) (8,103) NET ASSETS % 11,730,873 8,556,581 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying fund Standard Life Global Equity Fund Apple Inc. 3, ,278 1,067, MetLife Inc. 16, , , TEMENOS Group AG 24, , , Croda International PLC 39, , , Mead Johnson Nutrition Company 11, , , BaWang International (Group) Holding Limited 784, , , Lancashire Holdings Limited 75, , , Polycom, Inc. 17, , , Dolby Laboratories, Inc., A 8, , , Pearson plc 38, , , Goldman Sachs Group, Inc., (The) 3, , , Amgen Inc. 9, , , Galp Energia SGPS, S.A. 33, , , Itau Unibanco Holding S.A. 27, , , Occidental Petroleum Corporation 6, , , priceline.com Incorporated 2, , , Walt Disney Company, (The) 15, , , Hon Hai Precision Industry Co., Ltd. 136, , , Urban Outfitters Inc. 13, , , Pernod Ricard 6, , , AIXTRON Aktiengesellschaft 19, , , Bank of America Corporation 32, , , Walter Energy, Inc. 7, , , CSX Corporation 9, , , Anadarko Petroleum Corporation 12, , , Standard Life

89 Specific note to interim unaudited financial statements Ideal Global Equity 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $835,000 (December 31, $818,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund is not significantly subject to indirect risk since the majority of the underlying fund s s financial assets and liabilities is not interest bearing. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in currencies other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in these currencies relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD GBP EUR HKD Net assets by currency ($) Impact on net assets (+/-10%) ($) Other currencies 4,414,988 1,249,389 1,088, ,946 1,123, , , ,827 47, ,336 as at December 31, 2009 USD GBP EUR HKD Other currencies Net assets by 3,760, ,347 1,558, ,839 1,815,691 currency ($) Impact on net 376,053 85, ,866 25, ,569 assets (+/-10%) ($) 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 other assets and forward foreign currency contracts. Standard Life 89

90 Ideal Global Equity Focus Fund Statement of net assets ASSETS Investments, at fair value* 426, ,152 Other accounts receivable 7 1 Total assets 426, ,153 LIABILITIES Management fees payable 46 5 Other liabilities 2 - Total liabilities 48 5 NET ASSETS 426, ,148 Net assets per unit (note 3) Back-end 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 504, ,079 Statement of operations for the periods ended June 30 INVESTMENT INCOME Other income (loss) Total investment income (loss) EXPENSES (note 5) Management fees Audit fees 1,883 1,988 Other operating expenses 1 1 2,440 2,297 Less: expenses absorbed by the manager (1,884) (1,989) Total expenses NET INVESTMENT INCOME (LOSS) (465) (255) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (2,478 ) (7,173 ) Change in unrealized appreciation (depreciation) in value of investments (40,310 ) 40,899 NET GAIN (LOSS) ON INVESTMENTS (42,788) 33,726 ASSETS FROM OPERATIONS (43,253) 33,471 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.69) 0.74 No-load Option with Resets (0.84) 0.73 Platinum No-load Option (0.69) /100 Series (1.21) /100 Platinum Series (0.92) N/A 100/100 Series (1.27) /100 Platinum Series (0.93) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (43,253) 33,471 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 114, ,412 Payments for units redeemed (51,532) (56,583) Net capital unit transactions 63,049 53,829 ASSETS FOR THE PERIOD 19,796 87,300 NET ASSETS - beginning of period 407, ,290 NET ASSETS - end of period 426, , Standard Life

91 Ideal Global Equity Focus Fund Statement of portfolio investments as at June 30, 2010 (unaudited) Average Fair Issuer Units cost ($) value ($) Standard Life Global Equity Focus Fund, A-Series 54, , ,985 TOTAL INVESTMENTS % 504, ,985 Other assets, less liabilities (0.01%) (41) (41) NET ASSETS % 504, ,944 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying fund Standard Life Global Equity Focus Fund Canadian Natural Resources Limited 14, , , Suncor Energy Inc. 16, , , Bank of Nova Scotia, (The) 10, , , Toronto-Dominion Bank, (The) 7, , , Canadian Imperial Bank of Commerce 7, , , Royal Bank of Canada 8, , , Goldcorp Inc. 8, , , Canadian Pacific Railway Limited 6, , , Potash Corporation of Saskatchewan Inc. 4, , , Manulife Financial Corporation 23, , , Cenovus Energy Inc. 13, , , Praxair Inc. 3, , , Research In Motion Limited 5, , , Walt Disney Company, (The) 9, , , Procter & Gamble Company, (The) 4, , , Microsoft Corporation 12, , , Bank of America Corporation 19, , , J.P. Morgan Chase & Co. 7, , , Johnson & Johnson 4, , , PepsiCo Inc. 4, , , Covance Inc. 5, , , Wells Fargo & Company 9, , , Niko Resources Ltd. 2, , , General Electric Company 17, , , Red Back Mining Inc. 9, , , Standard Life 91

92 Specific note to interim unaudited financial statements Ideal Global Equity Focus 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $41,000 (December 31, $40,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund has indirect interest rate risk exposure through the underlying fund s holdings in short-term investments which have remaining terms to maturity of less than one year. The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration and was not significant. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in currencies other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in these currencies relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 USD EUR GBP JPY Net assets by currency ($) Impact on net assets (+/-10%) ($) Other currencies 152,995 28,826 17,693 9,781 15,464 15,300 2,883 1, ,546 as at December 31, 2009 USD EUR GBP JPY Other currencies Net assets by currency ($) 147,242 37,084 6,902 9,698 18,419 Impact on net assets (+/-10%) ($) 14,724 3, ,842 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. 92 Standard Life

93 Ideal European Equity Fund Statement of net assets ASSETS Investments, at fair value* 660, ,390 Subscriptions receivable - 11,698 Other accounts receivable 4 - Total assets 660, ,088 LIABILITIES Redemptions payable Management fees payable 76 9 Other liabilities 4 - Total liabilities NET ASSETS 659, ,079 Net assets per unit (note 3) Back-end 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 844, ,495 Statement of operations for the periods ended June 30 INVESTMENT INCOME Other income (loss) Total investment income (loss) EXPENSES (note 5) Management fees 1, Audit fees 1,883 1,988 Other operating expenses 1 1 2,891 2,573 Less: expenses absorbed by the manager (1,884) (1,989) Total expenses 1, NET INVESTMENT INCOME (LOSS) (955) (567) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (18,618 ) (33,153) Change in unrealized appreciation (depreciation) in value of investments (116,576 ) 63,914 NET GAIN (LOSS) ON INVESTMENTS (135,194 ) 30,761 ASSETS FROM OPERATIONS (136,149) 30,194 Increase (decrease) in net assets from operations per unit Back-end Load Option (1.13 ) 0.34 No-load Option with Resets (1.13 ) 0.20 Platinum No-load Option (1.13 ) /100 Series (2.32) /100 Platinum Series (1.84) N/A 100/100 Series (2.13 ) /100 Platinum Series (1.63) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (136,149) 30,194 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 182, ,549 Payments for units redeemed (108,549) (56,575 ) Net capital unit transactions 73, ,974 ASSETS FOR THE PERIOD (62,174 ) 194,168 NET ASSETS - beginning of period 722, ,503 NET ASSETS - end of period 659, ,671 Standard Life 93

94 Ideal European Equity Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life European Equity Fund, A-Series 120, , ,683 TOTAL INVESTMENTS % 844, ,683 Other assets, less liabilities (0.12%) (778) (778) NET ASSETS % 843, ,905 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying fund Standard Life European Equity Fund Roche Holdings AG 3, , , InBev N.V. 8, , , Nestlé S.A. 8, , , Siemens AG 4, , , Telefonica, S.A. 18, , , Sanofi-Aventis 5, , , Xstrata PLC 25, , , SAP AG 7, , , Assa Abloy AB 15, , , Tesco PLC 54, , , Credit Suisse Group 8, , , BNP Paribas 5, , , Swiss Reinsurance 6, , , ASML Holding N.V. 9, , , Sampo PLC 12, , , A.P. Moller - Maersk A/S , , Banco Bilbao Vizcaya Argentaria S.A. 25, , , DnB NOR ASA 26, , , Storebrand ASA 48, , , Koninkliijke KPN NV 19, , , Fresenius AG 3, , , Admiral Group plc 11, , , Tullow Oil PLC 16, , , Novo Nordisk A/S 2, , , IMI PLC 23, , , Standard Life

95 Specific note to interim unaudited financial statements Ideal European Equity 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $65,000 (December 31, $70,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund is not significantly subject to indirect risk since the majority of the underlying fund s s financial assets and liabilities is not interest bearing. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in currencies other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in these currencies relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 EUR GBP CHF SEK Net assets by currency ($) Impact on net assets (+/-10%) ($) Other currencies 312, ,450 71,291 26,251 49,266 31,257 18,845 7,129 2,625 4,927 as at December 31, 2009 EUR GBP CHF SEK Other currencies Net assets by currency ($) 386, ,218 61,890 24,302 46,708 Impact on net assets (+/-10%) ($) 38,678 18,422 6,189 2,430 4,671 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 other assets. Standard Life 95

96 Ideal International Equity Fund Statement of net assets ASSETS Investments, at fair value* 23,621,069 29,394,105 Cash - 2,278 Subscriptions receivable ,575 Receivable from investments sold Other accounts receivable 28 5 Total assets 23,621,614 29,431,963 LIABILITIES Bank indebtedness Redemptions payable 14,828 14,018 Payable on investments purchased - 18,255 Management fees payable 3, Audit fees payable 1,890 - Other liabilities Total liabilities 21,065 32,910 NET ASSETS 23,600,549 29,399,053 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 33,927,866 36,948,263 Statement of operations for the periods ended June 30 INVESTMENT INCOME Other income (loss) Total investment income (loss) EXPENSES (note 5) Management fees 52,805 53,401 Audit fees 1,985 1,823 Other operating expenses ,831 55,297 Less: expenses absorbed by the manager (41) (73) Total expenses 54,790 55,224 NET INVESTMENT INCOME (LOSS) (54,442) (54,994) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (844,649) (1,607,795) Change in unrealized appreciation (depreciation) in value of investments (2,752,639) 2,401,714 NET GAIN (LOSS) ON INVESTMENTS (3,597,288) 793,919 ASSETS FROM OPERATIONS (3,651,730) 738,925 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.99) 0.17 No-load Option (0.99) 0.18 No-load Option with Resets (0.99) 0.19 Platinum No-load Option (0.98) /100 Series (1.36) /100 Platinum Series (1.26) N/A 100/100 Series (1.52) /100 Platinum Series (1.27) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (3,651,730) 738,925 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 1,064, ,195 Payments for units redeemed (3,210,900) (3,846,879) Net capital unit transactions (2,146,774 ) (2,875,684) ASSETS FOR THE PERIOD (5,798,504) (2,136,759) NET ASSETS - beginning of period 29,399,053 30,619,609 NET ASSETS - end of period 23,600,549 28,482, Standard Life

97 Ideal International Equity Fund Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life International Equity Fund, A-Series 2,530,946 33,927,866 23,621,069 TOTAL INVESTMENTS % 33,927,866 23,621,069 Other assets, less liabilities (0.09%) (20,520) (20,520) NET ASSETS % 33,907,346 23,600,549 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying fund Standard Life International Equity Fund HSBC Holdings PLC 218,730 2,688,979 2,133, Santander Central Hispano S.A. 147,575 2,428,725 1,681, Vodafone Group PLC 761,212 2,352,851 1,678, Sanofi-Aventis 22,377 1,702,805 1,442, GlaxoSmithKline PLC 78,005 1,633,707 1,413, Toyota Motor Corporation 37,800 1,528,467 1,394, BHP Billiton PLC 49,664 1,658,232 1,380, Telefonica, S.A. 67,576 1,783,956 1,343, Standard Chartered PLC 51,428 1,382,051 1,337, Nippon Telegraph and Telephone Corporation 30,600 1,523,500 1,334, Commonwealth Bank of Australia 30,356 1,454,387 1,326, Roche Holdings AG 9,033 1,518,113 1,325, Nestlé S.A. 24,829 1,134,475 1,270, East Japan Railway Company, First Section 17,000 1,255,194 1,205, Daimler AG 21,777 1,203,881 1,190, Koninklijke Philips Electronics N.V. 35,714 1,128,300 1,150, United Utilities Group PLC 136,486 1,176,421 1,135, Serco Group plc 121, ,470 1,131, Portugal Telecom, SGPS, S.A. 103,346 1,143,147 1,099, Compass Group PLC 134,715 1,049,910 1,093, Galp Energia SGPS, S.A. 65, ,698 1,053, GKN PLC 551,232 1,361,262 1,013, Nomura Holdings Inc. 167,800 1,279, , Tullow Oil PLC 61,334 1,226, , Syngenta AG 3,960 1,064, , Standard Life 97

98 Specific note to interim unaudited financial statements Ideal International Equity 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 is exposed to market risk related to the underlying fund s investments in equity securities. As at June 30, 2010, had the prices of the underlying fund s investments in equity securities increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased, by approximately $2,247,000 (December 31, $2,803,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund has indirect interest rate risk exposure through the underlying fund s holdings in short-term investments which have remaining terms to maturity of less than one year. The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration and was not significant. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the underlying fund held are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in currencies other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 10% fluctuation in these currencies relative to the Canadian dollar, all other variables held constant. as at June 30, 2010 EUR GBP JPY CHF Net assets by currency ($) Impact on net assets (+/-10%) ($) Other currencies 7,617,690 6,779,054 4,002,495 2,039,808 2,026, , , , , ,633 as at December 31, 2009 EUR GBP JPY CHF Other currencies Net assets by 10,152,928 7,137,299 4,942,929 2,846,967 3,058,968 currency ($) Impact on net 1,015, , , , ,897 assets (+/-10%) ($) 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 and other assets. 98 Standard Life

99 Ideal Conservative Portfolio Statement of net assets ASSETS Investments, at fair value* 85,431,136 72,422,988 Subscriptions receivable 118, ,351 Receivable from investments sold Total assets 85,550,175 72,832,937 LIABILITIES Redemptions payable 99, ,831 Payable on investments purchased 73,000 - Management fees payable 20,128 2,300 Audit fees payable 1,890 - Other liabilities 1, Total liabilities 195, ,246 NET ASSETS 85,354,218 72,266,691 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 86,052,077 71,995,564 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 718, ,030 Total investment income (loss) 718, ,030 EXPENSES (note 5) Management fees 245, ,872 Audit fees 1,985 2,493 Other operating expenses , ,479 Less: expenses absorbed by the manager (122) (114 ) Total expenses 247, ,365 NET INVESTMENT INCOME (LOSS) 471, ,665 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (5,163) (601,628) Change in unrealized appreciation (depreciation) in value of investments (1,048,365) 1,803,390 NET GAIN (LOSS) ON INVESTMENTS (1,053,528) 1,201,762 ASSETS FROM OPERATIONS (582,462) 1,685,427 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.08) 0.42 No-load Option (0.09) 0.39 No-load Option with Resets (0.08) 0.49 Platinum No-load Option (0.03) /100 Series (0.10 ) /100 Platinum Series (0.16 ) 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 ASSETS FROM OPERATIONS (582,462) 1,685,427 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 25,503,172 18,912,887 Payments for units redeemed (11,833,183) (10,306,189) Net capital unit transactions 13,669,989 8,606,698 ASSETS FOR THE PERIOD 13,087,527 10,292,125 NET ASSETS - beginning of period 72,266,691 38,470,027 NET ASSETS - end of period 85,354,218 48,762,152 Standard Life 99

100 Ideal Conservative Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Canadian Bond Fund, A-Series 4,427,801 47,984,854 49,111,844 Standard Life International Bond Fund, A-Series 492,733 5,412,936 5,377,000 Standard Life Global Monthly Income Fund, A-Series 298,327 3,679,296 3,369,697 Standard Life Dividend Income Fund, A-Series 573,751 6,038,585 5,655,981 Standard Life U.S. Dividend Growth Fund, A-Series 961,683 6,885,402 6,557,621 Standard Life Global Dividend Growth Fund, A-Series 341,637 3,200,086 2,846,141 Standard Life Canadian Equity Fund, A-Series 467,801 10,919,923 10,817,617 Standard Life International Equity Fund, A-Series 181,641 1,930,995 1,695,235 TOTAL INVESTMENTS % 86,052,077 85,431,136 Other assets, less liabilities (0.09%) (76,918 ) (76,918 ) NET ASSETS % 85,975,159 85,354,218 Top Holdings of the Underlying Funds as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency or shares cost ($) value ($) underlying funds Standard Life Canadian Bond Fund Canada Housing Trust No. 1, 4.550%, 2012/12/15 34,460,000 36,504,653 36,647, Province of Ontario, 4.500%, 2012/12/02 30,125,000 31,790,877 31,907, Government of Canada, 2.000%, 2012/09/01 20,440,000 20,487,438 20,637, Province of Quebec, 5.000%, 2041/12/01 12,685,000 13,076,449 13,357, Canada Housing Trust No. 1, 1.009%, 2015/03/15 10,940,000 10,942,163 10,940, 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, Standard Life Global Monthly Income Fund ishares, MSCI EAFE Index Fund 35,000 1,892,275 1,733, Standard & Poor s Depositary Receipt 15,000 1,756,574 1,648, ishares, S&P/TSX 60 Index Fund 92,800 1,576,112 1,542, Toronto-Dominion Bank, (The) 15, ,533 1,045, Bank of Nova Scotia, (The) 15, , , Standard Life Dividend Income Fund Royal Bank of Canada 121,500 6,386,608 6,160, Toronto-Dominion Bank, (The) 73,800 4,444,361 5,090, Canadian Imperial Bank of Commerce 62,700 4,140,972 4,146, Bank of Nova Scotia, (The) 82,800 3,681,686 4,060, Suncor Energy Inc. 109,000 3,708,905 3,414, Standard Life U.S. Dividend Growth Fund Altria Group Inc. 65,800 1,592,152 1,402, Exxon Mobil Corporation 17,500 1,371,383 1,061, AT&T Inc. 41,000 1,228,732 1,054, J.P. Morgan Chase & Co. 26,200 1,030,870 1,020, Utilities Select Sector SPDR Fund 33,300 1,043,792 1,001, Standard Life Global Dividend Growth Fund Exxon Mobil Corporation 85,791 6,915,542 5,202, Merck & Co., Inc. 120,321 4,105,683 4,475, Zurich Financial Services 17,371 4,035,752 4,095, Apple Inc. 14,917 2,198,045 3,993, J.P. Morgan Chase & Co. 99,124 4,140,774 3,861, Standard Life Canadian Equity Fund Royal Bank of Canada 184,500 7,948,479 9,354, Toronto-Dominion Bank, (The) 119,350 6,409,212 8,232, Bank of Nova Scotia, (The) 157,000 6,677,105 7,699, Canadian Natural Resources Limited 191,100 6,166,483 6,751, Suncor Energy Inc. 212,260 7,646,281 6,650, Standard Life International Equity Fund HSBC Holdings PLC 218,730 2,688,979 2,133, Santander Central Hispano S.A. 147,575 2,428,725 1,681, Vodafone Group PLC 761,212 2,352,851 1,678, Sanofi-Aventis 22,377 1,702,805 1,442, GlaxoSmithKline PLC 78,005 1,633,707 1,413, Standard Life

101 Specific note to interim unaudited financial statements Ideal Conservative Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying funds increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $8,543,000 (December 31, $7,242,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. Standard Life 101

102 Ideal Moderate Portfolio Statement of net assets ASSETS Investments, at fair value* 120,013, ,372,585 Cash 13,200 - Subscriptions receivable 299, ,059 Other accounts receivable 35 - Total assets 120,326, ,019,644 LIABILITIES Redemptions payable 114, ,433 Payable on investments purchased 159, ,607 Management fees payable 23,861 2,824 Audit fees payable 1,890 - Other liabilities 1, Total liabilities 300, ,005 NET ASSETS 120,026, ,605,639 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 123,096, ,057,133 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 792, ,887 Other income (loss) 35 - Total investment income (loss) 792, ,887 EXPENSES (note 5) Management fees 299, ,373 Audit fees 1,985 2,493 Other operating expenses , ,044 Less: expenses absorbed by the manager (175 ) (178 ) Total expenses 301, ,866 NET INVESTMENT INCOME (LOSS) 490, ,021 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (59,092) (1,006,899) Change in unrealized appreciation (depreciation) in value of investments (2,397,607) 2,831,709 NET GAIN (LOSS) ON INVESTMENTS (2,456,699) 1,824,810 ASSETS FROM OPERATIONS (1,965,996) 2,553,831 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.20) 0.42 No-load Option (0.20) 0.43 No-load Option with Resets (0.23) 0.62 Platinum No-load Option (0.18 ) /100 Series (0.25) /100 Platinum Series (0.22) N/A 100/100 Series (0.23) /100 Platinum Series (0.15 ) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (1,965,996) 2,553,831 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 33,813,684 18,552,770 Payments for units redeemed (14,427,115 ) (10,585,492) Net capital unit transactions 19,386,569 7,967,278 ASSETS FOR THE PERIOD 17,420,573 10,521,109 NET ASSETS - beginning of period 102,605,639 65,061,398 NET ASSETS - end of period 120,026,212 75,582, Standard Life

103 Ideal Moderate Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Canadian Bond Fund, A-Series 5,145,657 55,646,735 57,074,078 Standard Life International Bond Fund, A-Series 696,195 7,583,601 7,597,297 Standard Life Global Monthly Income Fund, A-Series 421,618 5,314,122 4,762,302 Standard Life Dividend Income Fund, A-Series 1,274,458 14,083,697 12,563,484 Standard Life U.S. Dividend Growth Fund, A-Series 1,617,319 11,930,567 11,028,337 Standard Life Global Dividend Growth Fund, A-Series 482,835 4,567,331 4,022,449 Standard Life Canadian Equity Fund, A-Series 759,970 17,789,073 17,573,841 Standard Life International Equity Fund, A-Series 577,758 6,180,975 5,392,158 TOTAL INVESTMENTS 99.99% 123,096, ,013,946 Other assets, less liabilities 0.01% 12,266 12,266 NET ASSETS % 123,108, ,026,212 Top Holdings of the Underlying Funds as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency or shares cost ($) value ($) underlying funds Standard Life Canadian Bond Fund Canada Housing Trust No. 1, 4.550%, 2012/12/15 34,460,000 36,504,653 36,647, Province of Ontario, 4.500%, 2012/12/02 30,125,000 31,790,877 31,907, Government of Canada, 2.000%, 2012/09/01 20,440,000 20,487,438 20,637, Province of Quebec, 5.000%, 2041/12/01 12,685,000 13,076,449 13,357, Canada Housing Trust No. 1, 1.009%, 2015/03/15 10,940,000 10,942,163 10,940, 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, Standard Life Global Monthly Income Fund ishares, MSCI EAFE Index Fund 35,000 1,892,275 1,733, Standard & Poor s Depositary Receipt 15,000 1,756,574 1,648, ishares, S&P/TSX 60 Index Fund 92,800 1,576,112 1,542, Toronto-Dominion Bank, (The) 15, ,533 1,045, Bank of Nova Scotia, (The) 15, , , Standard Life Dividend Income Fund Royal Bank of Canada 121,500 6,386,608 6,160, Toronto-Dominion Bank, (The) 73,800 4,444,361 5,090, Canadian Imperial Bank of Commerce 62,700 4,140,972 4,146, Bank of Nova Scotia, (The) 82,800 3,681,686 4,060, Suncor Energy Inc. 109,000 3,708,905 3,414, Standard Life U.S. Dividend Growth Fund Altria Group Inc. 65,800 1,592,152 1,402, Exxon Mobil Corporation 17,500 1,371,383 1,061, AT&T Inc. 41,000 1,228,732 1,054, J.P. Morgan Chase & Co. 26,200 1,030,870 1,020, Utilities Select Sector SPDR Fund 33,300 1,043,792 1,001, Standard Life Global Dividend Growth Fund Exxon Mobil Corporation 85,791 6,915,542 5,202, Merck & Co., Inc. 120,321 4,105,683 4,475, Zurich Financial Services 17,371 4,035,752 4,095, Apple Inc. 14,917 2,198,045 3,993, J.P. Morgan Chase & Co. 99,124 4,140,774 3,861, Standard Life Canadian Equity Fund Royal Bank of Canada 184,500 7,948,479 9,354, Toronto-Dominion Bank, (The) 119,350 6,409,212 8,232, Bank of Nova Scotia, (The) 157,000 6,677,105 7,699, Canadian Natural Resources Limited 191,100 6,166,483 6,751, Suncor Energy Inc. 212,260 7,646,281 6,650, Standard Life International Equity Fund HSBC Holdings PLC 218,730 2,688,979 2,133, Santander Central Hispano S.A. 147,575 2,428,725 1,681, Vodafone Group PLC 761,212 2,352,851 1,678, Sanofi-Aventis 22,377 1,702,805 1,442, GlaxoSmithKline PLC 78,005 1,633,707 1,413, Standard Life 103

104 Specific note to interim unaudited financial statements Ideal Moderate Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2009, had the price of the underlying funds increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $12,001,000 (December 31, $10,237,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 104 Standard Life

105 Ideal Growth Portfolio Statement of net assets ASSETS Investments, at fair value* 91,388,468 80,971,617 Subscriptions receivable 66, ,002 Receivable from investments sold 28,718 5,000 Other accounts receivable Total assets 91,484,123 81,269,634 LIABILITIES Redemptions payable 80, ,368 Payable on investments purchased 25 - Management fees payable 14,555 1,769 Audit fees payable 1,890 - Other liabilities Total liabilities 97, ,226 NET ASSETS 91,386,369 81,132,408 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 95,562,585 80,767,116 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 287, ,407 Other income (loss) 1, Total investment income (loss) 288, ,843 EXPENSES (note 5) Management fees 185, ,866 Audit fees 1,985 2,493 Other operating expenses , ,498 Less: expenses absorbed by the manager (136) (139) Total expenses 187, ,359 NET INVESTMENT INCOME (LOSS) 100, ,484 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 6,947 (525,529) Change in unrealized appreciation (depreciation) in value of investments (4,378,618 ) 3,371,724 NET GAIN (LOSS) ON INVESTMENTS (4,371,671 ) 2,846,195 ASSETS FROM OPERATIONS (4,270,738) 3,135,679 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.57) 0.64 No-load Option (0.54) 0.62 No-load Option with Resets (0.61) 0.79 Platinum No-load Option (0.52) /100 Series (0.66) /100 Platinum Series (0.57) N/A 100/100 Series (0.62) /100 Platinum Series (0.40) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (4,270,738) 3,135,679 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 22,394,731 11,015,337 Payments for units redeemed (7,870,032) (5,138,323) Net capital unit transactions 14,524,699 5,877,014 ASSETS FOR THE PERIOD 10,253,961 9,012,693 NET ASSETS - beginning of period 81,132,408 49,623,577 NET ASSETS - end of period 91,386,369 58,636,270 Standard Life 105

106 Ideal Growth Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Canadian Bond Fund, A-Series 1,834,777 19,843,526 20,350,801 Standard Life International Bond Fund, A-Series 539,484 5,884,659 5,887,176 Standard Life Global Monthly Income Fund, A-Series 326,643 4,160,622 3,689,536 Standard Life Dividend Income Fund, A-Series 448,727 5,108,970 4,423,504 Standard Life Canadian Equity Fund, A-Series 848,698 19,949,446 19,625,643 Standard Life Canadian Small Cap Fund, A-Series 610,993 11,559,583 11,569,695 Standard Life International Equity Fund, A-Series 1,114,307 11,845,889 10,399,714 Standard Life U.S. Mid Cap Fund, A-Series 881,522 6,871,531 6,270,706 Standard Life U.S. Equity Focus Fund, A-Series 1,320,390 10,338,359 9,171,693 TOTAL INVESTMENTS % 95,562,585 91,388,468 Other assets, less liabilities 0.00% (2,099 ) (2,099 ) NET ASSETS % 95,560,486 91,386,369 Top Holdings of the Underlying Funds as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency or shares cost ($) value ($) underlying funds Standard Life Canadian Bond Fund Canada Housing Trust No. 1, 4.550%, 2012/12/15 34,460,000 36,504,653 36,647, Province of Ontario, 4.500%, 2012/12/02 30,125,000 31,790,877 31,907, Government of Canada, 2.000%, 2012/09/01 20,440,000 20,487,438 20,637, Province of Quebec, 5.000%, 2041/12/01 12,685,000 13,076,449 13,357, Canada Housing Trust No. 1, 1.009%, 2015/03/15 10,940,000 10,942,163 10,940, 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, Standard Life Global Monthly Income Fund ishares, MSCI EAFE Index Fund 35,000 1,892,275 1,733, Standard & Poor s Depositary Receipt 15,000 1,756,574 1,648, ishares, S&P/TSX 60 Index Fund 92,800 1,576,112 1,542, Toronto-Dominion Bank, (The) 15, ,533 1,045, Bank of Nova Scotia, (The) 15, , , Standard Life Dividend Income Fund Royal Bank of Canada 121,500 6,386,608 6,160, Toronto-Dominion Bank, (The) 73,800 4,444,361 5,090, Canadian Imperial Bank of Commerce 62,700 4,140,972 4,146, Bank of Nova Scotia, (The) 82,800 3,681,686 4,060, Suncor Energy Inc. 109,000 3,708,905 3,414, Standard Life Canadian Equity Fund Royal Bank of Canada 184,500 7,948,479 9,354, Toronto-Dominion Bank, (The) 119,350 6,409,212 8,232, Bank of Nova Scotia, (The) 157,000 6,677,105 7,699, Canadian Natural Resources Limited 191,100 6,166,483 6,751, Suncor Energy Inc. 212,260 7,646,281 6,650, Standard Life Canadian Small Cap Fund Canadian Western Bank 308,700 4,304,197 7,294, Reitmans (Canada) Limited, Non-voting, A 369,980 4,640,173 6,933, Gran Tierra Energy Inc. 1,129,000 4,852,050 5,983, Cominar Real Estate Investment Trust 300,000 5,662,096 5,565, Labrador Iron Ore Royalty Income Fund 126,900 4,195,635 5,418, Standard Life International Equity Fund HSBC Holdings PLC 218,730 2,688,979 2,133, Santander Central Hispano S.A. 147,575 2,428,725 1,681, Vodafone Group PLC 761,212 2,352,851 1,678, Sanofi-Aventis 22,377 1,702,805 1,442, GlaxoSmithKline PLC 78,005 1,633,707 1,413, Standard Life U.S. Mid Cap Fund Telephone and Data Systems, Inc. 24, , , AMETEK, Inc. 18, , , Nalco Holding Company 31, , , HCC Insurance Holdings Inc. 25, , , Alberto-Culver Company 19, , , Standard Life U.S. Equity Focus Fund J.P. Morgan Chase & Co. 26,700 1,032,592 1,040, Alberto-Culver Company 35,600 1,005,738 1,027, Bank of America Corporation 63,100 1,143, , Apple Inc. 3, , , Procter & Gamble Company, (The) 15, , , Standard Life

107 Specific note to interim unaudited financial statements Ideal Growth Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying funds increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $9,139,000 (December 31, $8,097,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. Standard Life 107

108 Ideal Dividend Growth & Income Portfolio Statement of net assets ASSETS Investments, at fair value* 10,075,730 6,573,987 Subscriptions receivable 153, ,147 Total assets 10,229,313 6,803,134 LIABILITIES Redemptions payable 2,348 1,177 Payable on investments purchased 100,000 - Management fees payable 11, Audit fees payable 1,890 - Other liabilities Total liabilities 116,386 2,208 NET ASSETS 10,112,927 6,800,926 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 10,516,627 6,384,568 Statement of operations for the periods ended June 30 (note 1) INVESTMENT INCOME Distribution income from underlying funds 170,795 22,924 Total investment income (loss) 170,795 22,924 EXPENSES (note 5) Management fees 128,131 9,584 Audit fees 1,985 1,988 Other operating expenses ,130 11,574 Less: expenses absorbed by the manager (14 ) (1,990) Total expenses 130,116 9,584 NET INVESTMENT INCOME (LOSS) 40,679 13,340 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 6,645 8,434 Change in unrealized appreciation (depreciation) in value of investments (630,316 ) 80,335 NET GAIN (LOSS) ON INVESTMENTS (623,671 ) 88,769 ASSETS FROM OPERATIONS (582,992) 102,109 Increase (decrease) in net assets from operations per unit 75/100 Series (0.76) /100 Platinum Series (0.62) N/A 100/100 Series (0.70) /100 Platinum Series (0.43) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (582,992) 102,109 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 4,551,087 1,623,629 Payments for units redeemed (656,094) (19,501) Net capital unit transactions 3,894,993 1,604,128 ASSETS FOR THE PERIOD 3,312,001 1,706,237 NET ASSETS - beginning of period 6,800,926 - NET ASSETS - end of period 10,112,927 1,706, Standard Life

109 Ideal Dividend Growth & Income Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Monthly Income Fund, O-Series 2 168,874 2,433,424 2,442,562 Standard Life Global Monthly Income Fund, O-Series 2 133,655 1,700,702 1,632,877 Standard Life Canadian Dividend Growth Fund, O-Series 2 48,433 2,143,127 2,091,916 Standard Life U.S. Dividend Growth Fund, O-Series 2 109, , ,277 Standard Life Global Dividend Growth Fund, O-Series 2 359,335 3,450,036 3,154,098 TOTAL INVESTMENTS 99.63% 10,516,627 10,075,730 Other assets, less liabilities 0.37% 37,197 37,197 NET ASSETS % 10,553,824 10,112,927 Top Holdings of the Underlying Funds as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date or shares cost ($) value ($) underlying funds Standard Life Monthly Income Fund Standard & Poor s Depositary Receipt 415,500 45,025,624 45,658, Royal Bank of Canada 428,800 14,554,109 21,740, Bank of Nova Scotia, (The) 412,700 15,511,343 20,238, Toronto-Dominion Bank, (The) 271,700 12,838,223 18,741, Province of Ontario, 5.850%, 2033/03/08 14,664,000 16,382,518 17,210, Standard Life Global Monthly Income Fund ishares, MSCI EAFE Index Fund 35,000 1,892,275 1,733, Standard & Poor s Depositary Receipt 15,000 1,756,574 1,648, ishares, S&P/TSX 60 Index Fund 92,800 1,576,112 1,542, Toronto-Dominion Bank, (The) 15, ,533 1,045, Bank of Nova Scotia, (The) 15, , , Standard Life Canadian Dividend Growth Fund Toronto-Dominion Bank, (The) 2,136, ,257, ,375, Royal Bank of Canada 2,762, ,016, ,048, Bank of Nova Scotia, (The) 2,785, ,562, ,598, Canadian Imperial Bank of Commerce 1,573,400 98,683, ,064, Suncor Energy Inc. 2,951,500 96,704,679 92,470, Standard Life U.S. Dividend Growth Fund Altria Group Inc. 65,800 1,592,152 1,402, Exxon Mobil Corporation 17,500 1,371,383 1,061, AT&T Inc. 41,000 1,228,732 1,054, J.P. Morgan Chase & Co. 26,200 1,030,870 1,020, Utilities Select Sector SPDR Fund 33,300 1,043,792 1,001, Standard Life Global Dividend Growth Fund Exxon Mobil Corporation 85,791 6,915,542 5,202, Merck & Co., Inc. 120,321 4,105,683 4,475, Zurich Financial Services 17,371 4,035,752 4,095, Apple Inc. 14,917 2,198,045 3,993, J.P. Morgan Chase & Co. 99,124 4,140,774 3,861, Standard Life 109

110 Specific note to interim unaudited financial statements Ideal Dividend Growth & Income Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying funds increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $1,008,000 (December 31, $657,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 110 Standard Life

111 Ideal Aggressive Portfolio Statement of net assets ASSETS Investments, at fair value* 26,838,571 26,948,280 Subscriptions receivable 38,304 76,135 Other accounts receivable Total assets 26,877,011 27,024,434 LIABILITIES Redemptions payable 6,622 2,603 Payable on investments purchased 37,979 1,701 Management fees payable 3, Audit fees payable 1,890 - Other liabilities Total liabilities 50,503 4,836 NET ASSETS 26,826,508 27,019,598 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 28,822,400 27,286,775 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 90,305 91,484 Other income (loss) 1, Total investment income (loss) 91,879 92,146 EXPENSES (note 5) Management fees 49,538 34,276 Audit fees 1,985 2,493 Other operating expenses ,565 36,819 Less: expenses absorbed by the manager (42) (50) Total expenses 51,523 36,769 NET INVESTMENT INCOME (LOSS) 40,356 55,377 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (80,313 ) (175,264) Change in unrealized appreciation (depreciation) in value of investments (1,645,334) 1,241,566 NET GAIN (LOSS) ON INVESTMENTS (1,725,647 ) 1,066,302 ASSETS FROM OPERATIONS (1,685,291) 1,121,679 Increase (decrease) in net assets from operations per unit Back-end Load Option (0.78) 0.66 No-load Option (0.76) 0.65 No-load Option with Resets (0.81) 0.82 Platinum No-load Option (0.69) /100 Series (0.76) /100 Platinum Series (0.57) N/A 100/100 Series (0.88) /100 Platinum Series (0.88) N/A Statement of changes in net assets for the periods ended June 30 ASSETS FROM OPERATIONS (1,685,291) 1,121,679 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 4,412,791 3,568,014 Payments for units redeemed (2,920,590) (1,365,476 ) Net capital unit transactions 1,492,201 2,202,538 ASSETS FOR THE PERIOD (193,090) 3,324,217 NET ASSETS - beginning of period 27,019,598 18,167,235 NET ASSETS - end of period 26,826,508 21,491,452 Standard Life 111

112 Ideal Aggressive Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Canadian Bond Fund, A-Series 288,087 3,121,530 3,195,374 Standard Life International Bond Fund, A-Series 133,004 1,433,363 1,451,419 Standard Life Dividend Income Fund, A-Series 132,740 1,604,004 1,308,539 Standard Life Canadian Equity Fund, A-Series 251,055 5,883,031 5,805,496 Standard Life Canadian Small Cap Fund, A-Series 250,251 4,767,517 4,738,735 Standard Life International Equity Fund, A-Series 476,809 5,210,038 4,450,015 Standard Life U.S. Mid Cap Fund, A-Series 353,897 2,898,092 2,517,445 Standard Life U.S. Equity Focus Fund, A-Series 485,380 3,904,825 3,371,548 TOTAL INVESTMENTS % 28,822,400 26,838,571 Other assets, less liabilities (0.04%) (12,063 ) (12,063 ) NET ASSETS % 28,810,337 26,826,508 Top Holdings of the Underlying Funds as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency or shares cost ($) value ($) underlying funds Standard Life Canadian Bond Fund Canada Housing Trust No. 1, 4.550%, 2012/12/15 34,460,000 36,504,653 36,647, Province of Ontario, 4.500%, 2012/12/02 30,125,000 31,790,877 31,907, Government of Canada, 2.000%, 2012/09/01 20,440,000 20,487,438 20,637, Province of Quebec, 5.000%, 2041/12/01 12,685,000 13,076,449 13,357, Canada Housing Trust No. 1, 1.009%, 2015/03/15 10,940,000 10,942,163 10,940, 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, Standard Life Dividend Income Fund Royal Bank of Canada 121,500 6,386,608 6,160, Toronto-Dominion Bank, (The) 73,800 4,444,361 5,090, Canadian Imperial Bank of Commerce 62,700 4,140,972 4,146, Bank of Nova Scotia, (The) 82,800 3,681,686 4,060, Suncor Energy Inc. 109,000 3,708,905 3,414, Standard Life Canadian Equity Fund Royal Bank of Canada 184,500 7,948,479 9,354, Toronto-Dominion Bank, (The) 119,350 6,409,212 8,232, Bank of Nova Scotia, (The) 157,000 6,677,105 7,699, Canadian Natural Resources Limited 191,100 6,166,483 6,751, Suncor Energy Inc. 212,260 7,646,281 6,650, Standard Life Canadian Small Cap Fund Canadian Western Bank 308,700 4,304,197 7,294, Reitmans (Canada) Limited, Non-voting, A 369,980 4,640,173 6,933, Gran Tierra Energy Inc. 1,129,000 4,852,050 5,983, Cominar Real Estate Investment Trust 300,000 5,662,096 5,565, Labrador Iron Ore Royalty Income Fund 126,900 4,195,635 5,418, Standard Life International Equity Fund HSBC Holdings PLC 218,730 2,688,979 2,133, Santander Central Hispano S.A. 147,575 2,428,725 1,681, Vodafone Group PLC 761,212 2,352,851 1,678, Sanofi-Aventis 22,377 1,702,805 1,442, GlaxoSmithKline PLC 78,005 1,633,707 1,413, Standard Life U.S. Mid Cap Fund Telephone and Data Systems, Inc. 24, , , AMETEK, Inc. 18, , , Nalco Holding Company 31, , , HCC Insurance Holdings Inc. 25, , , Alberto-Culver Company 19, , , Standard Life U.S. Equity Focus Fund J.P. Morgan Chase & Co. 26,700 1,032,592 1,040, Alberto-Culver Company 35,600 1,005,738 1,027, Bank of America Corporation 63,100 1,143, , Apple Inc. 3, , , Procter & Gamble Company, (The) 15, , , Standard Life

113 Specific note to interim unaudited financial statements Ideal Aggressive Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying funds increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $2,684,000 (December 31, $2,695,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. Standard Life 113

114 Ideal Global Portfolio Statement of net assets ASSETS Investments, at fair value* 1,234, ,381 Subscriptions receivable ,000 Total assets 1,234, ,381 LIABILITIES Redemptions payable Payable on investments purchased - 25,000 Management fees payable 1, Other liabilities 79 4 Total liabilities 1,884 25,067 NET ASSETS 1,232, ,314 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 1,323, ,654 Statement of operations for the periods ended June 30 (note 1) INVESTMENT INCOME Distribution income from underlying funds 4,518 1,171 Total investment income (loss) 4,518 1,171 EXPENSES (note 5) Management fees 14,207 3,079 Audit fees 1,883 1,988 Other operating expenses ,092 5,068 Less: expenses absorbed by the manager (1,885) (1,989) Total expenses 14,207 3,079 NET INVESTMENT INCOME (LOSS) (9,689) (1,908) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 192 (11) Change in unrealized appreciation (depreciation) in value of investments (115,269) 41,657 NET GAIN (LOSS) ON INVESTMENTS (115,077 ) 41,646 ASSETS FROM OPERATIONS (124,766) 39,738 Increase (decrease) in net assets from operations per unit 75/100 Series (1.27) /100 Platinum Series (2.05) N/A 100/100 Series (1.49) /100 Platinum Series (1.01) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (124,766) 39,738 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 990, ,060 Payments for units redeemed (6,787 ) (249,355) Net capital unit transactions 983, ,705 ASSETS FOR THE PERIOD 858, ,443 NET ASSETS - beginning of period 374,314 - NET ASSETS - end of period 1,232, , Standard Life

115 Ideal Global Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life U.S. Dividend Growth Fund, O-Series 2 28, , ,781 Standard Life Global Dividend Growth Fund, O-Series 2 23, , ,865 Standard Life International Equity Fund, O-Series 2 13, , ,392 Standard Life Global Equity Fund, O-Series 2 37, , ,445 Standard Life European Equity Fund, O-Series 2 24, , ,107 Standard Life U.S. Equity Focus Fund, O-Series 2 20, , ,622 Standard Life Global Equity Focus Fund, O-Series 2 11,528 99,848 92,576 Standard Life India Equity Focus Fund, O-Series 2 6,833 75,960 85,671 TOTAL INVESTMENTS % 1,323,001 1,234,459 Other assets, less liabilities (0.13%) (1,584 ) (1,584 ) NET ASSETS % 1,321,417 1,232,875 Top Holdings of the Underlying Funds as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying funds Standard Life U.S. Dividend Growth Fund Altria Group Inc. 65,800 1,592,152 1,402, Exxon Mobil Corporation 17,500 1,371,383 1,061, AT&T Inc. 41,000 1,228,732 1,054, J.P. Morgan Chase & Co. 26,200 1,030,870 1,020, Utilities Select Sector SPDR Fund 33,300 1,043,792 1,001, Standard Life Global Dividend Growth Fund Exxon Mobil Corporation 85,791 6,915,542 5,202, Merck & Co., Inc. 120,321 4,105,683 4,475, Zurich Financial Services 17,371 4,035,752 4,095, Apple Inc. 14,917 2,198,045 3,993, J.P. Morgan Chase & Co. 99,124 4,140,774 3,861, Standard Life International Equity Fund HSBC Holdings PLC 218,730 2,688,979 2,133, Santander Central Hispano S.A. 147,575 2,428,725 1,681, Vodafone Group PLC 761,212 2,352,851 1,678, Sanofi-Aventis 22,377 1,702,805 1,442, GlaxoSmithKline PLC 78,005 1,633,707 1,413, Standard Life Global Equity Fund Apple Inc. 3, ,278 1,067, MetLife Inc. 16, , , TEMENOS Group AG 24, , , Croda International PLC 39, , , Mead Johnson Nutrition Company 11, , , Standard Life European Equity Fund Roche Holdings AG 3, , , InBev N.V. 8, , , Nestlé S.A. 8, , , Siemens AG 4, , , Telefonica, S.A. 18, , , Standard Life U.S. Equity Focus Fund J.P. Morgan Chase & Co. 26,700 1,032,592 1,040, Alberto-Culver Company 35,600 1,005,738 1,027, Bank of America Corporation 63,100 1,143, , Apple Inc. 3, , , Procter & Gamble Company, (The) 15, , , Standard Life Global Equity Focus Fund Canadian Natural Resources Limited 14, , , Suncor Energy Inc. 16, , , Bank of Nova Scotia, (The) 10, , , Toronto-Dominion Bank, (The) 7, , , Canadian Imperial Bank of Commerce 7, , , Standard Life India Equity Focus Fund ICICI Bank Limited 44, , , TATA MOTORS LIMITED, A, (DVR) 73, , , Reliance Industries Limited 29, , , Crompton Greaves Limited 126, , , Oil and Natural Gas Corporation Limited 22, , , Standard Life 115

116 Specific note to interim unaudited financial statements Ideal Global Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying funds increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $123,000 (December 31, $37,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 116 Standard Life

117 Ideal Select Conservative Portfolio Statement of net assets ASSETS Investments, at fair value* 3,254, ,464 Cash 7 - Subscriptions receivable - 7,849 Receivable from investments sold Total assets 3,254, ,366 LIABILITIES Bank indebtedness - 53 Redemptions payable 2,799 - Payable on investments purchased 25 - Management fees payable 3, Other liabilities Total liabilities 6, NET ASSETS 3,248, ,162 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 3,290, ,347 Statement of operations for the periods ended June 30 (note 1) INVESTMENT INCOME Distribution income from underlying funds 44,599 4,078 Total investment income (loss) 44,599 4,078 EXPENSES (note 5) Management fees 27,391 2,012 Audit fees 1,883 1,988 Other operating expenses 3-29,277 4,000 Less: expenses absorbed by the manager (1,886) (1,988) Total expenses 27,391 2,012 NET INVESTMENT INCOME (LOSS) 17,208 2,066 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (1,742) 307 Change in unrealized appreciation (depreciation) in value of investments (40,477 ) 10,387 NET GAIN (LOSS) ON INVESTMENTS (42,219 ) 10,694 ASSETS FROM OPERATIONS (25,011 ) 12,760 Increase (decrease) in net assets from operations per unit 75/100 Series (0.14 ) /100 Platinum Series (0.05) N/A 100/100 Series (0.12 ) /100 Platinum Series (0.06) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (25,011 ) 12,760 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 2,506, ,889 Payments for units redeemed (219,285 ) - Net capital unit transactions 2,287, ,889 ASSETS FOR THE PERIOD 2,262, ,649 NET ASSETS - beginning of period 986,162 - NET ASSETS - end of period 3,248, ,649 Standard Life 117

118 Ideal Select Conservative Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Canadian Bond Fund, O-Series 2 164,722 1,859,432 1,871,936 Standard Life International Bond Fund, O-Series 2 18, , ,113 Standard Life Global Monthly Income Fund, O-Series 2 10, , ,511 Standard Life Dividend Income Fund, O-Series 2 21, , ,088 Standard Life U.S. Dividend Growth Fund, O-Series 2 32, , ,783 Standard Life Global Dividend Growth Fund, O-Series 2 5,454 51,730 47,877 Standard Life Canadian Equity Fund, O-Series 2 12, , ,268 Standard Life International Equity Fund, O-Series 2 5,046 56,116 51,688 Trimark Canadian Fund, Series I 9, , ,638 Fidelity Global Disciplined Equity Fund, Series O 6,012 66,512 62,900 TOTAL INVESTMENTS % 3,290,162 3,254,802 Other assets, less liabilities (0.20%) (6,443 ) (6,443 ) NET ASSETS % 3,283,719 3,248, Standard Life

119 Ideal Select Conservative Portfolio Top Holdings of the Underlying Funds as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency or shares cost ($) value ($) underlying funds Standard Life Canadian Bond Fund Canada Housing Trust No. 1, 4.550%, 2012/12/15 34,460,000 36,504,653 36,647, Province of Ontario, 4.500%, 2012/12/02 30,125,000 31,790,877 31,907, Government of Canada, 2.000%, 2012/09/01 20,440,000 20,487,438 20,637, Province of Quebec, 5.000%, 2041/12/01 12,685,000 13,076,449 13,357, Canada Housing Trust No. 1, 1.009%, 2015/03/15 10,940,000 10,942,163 10,940, 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, Standard Life Global Monthly Income Fund ishares, MSCI EAFE Index Fund 35,000 1,892,275 1,733, Standard & Poor s Depositary Receipt 15,000 1,756,574 1,648, ishares, S&P/TSX 60 Index Fund 92,800 1,576,112 1,542, Toronto-Dominion Bank, (The) 15, ,533 1,045, Bank of Nova Scotia, (The) 15, , , Standard Life Dividend Income Fund Royal Bank of Canada 121,500 6,386,608 6,160, Toronto-Dominion Bank, (The) 73,800 4,444,361 5,090, Canadian Imperial Bank of Commerce 62,700 4,140,972 4,146, Bank of Nova Scotia, (The) 82,800 3,681,686 4,060, Suncor Energy Inc. 109,000 3,708,905 3,414, Standard Life U.S. Dividend Growth Fund Altria Group Inc. 65,800 1,592,152 1,402, Exxon Mobil Corporation 17,500 1,371,383 1,061, AT&T Inc. 41,000 1,228,732 1,054, J.P. Morgan Chase & Co. 26,200 1,030,870 1,020, Utilities Select Sector SPDR Fund 33,300 1,043,792 1,001, Standard Life Global Dividend Growth Fund Exxon Mobil Corporation 85,791 6,915,542 5,202, Merck & Co., Inc. 120,321 4,105,683 4,475, Zurich Financial Services 17,371 4,035,752 4,095, Apple Inc. 14,917 2,198,045 3,993, J.P. Morgan Chase & Co. 99,124 4,140,774 3,861, Standard Life Canadian Equity Fund Royal Bank of Canada 184,500 7,948,479 9,354, Toronto-Dominion Bank, (The) 119,350 6,409,212 8,232, Bank of Nova Scotia, (The) 157,000 6,677,105 7,699, Canadian Natural Resources Limited 191,100 6,166,483 6,751, Suncor Energy Inc. 212,260 7,646,281 6,650, Standard Life International Equity Fund HSBC Holdings PLC 218,730 2,688,979 2,133, Santander Central Hispano S.A. 147,575 2,428,725 1,681, Vodafone Group PLC 761,212 2,352,851 1,678, Sanofi-Aventis 22,377 1,702,805 1,442, GlaxoSmithKline PLC 78,005 1,633,707 1,413, Trimark Canadian Fund 1 MacDonald, Dettwiler & Associates Ltd. 2,285,537 66,417, ,175, Brookfield Asset Management Inc., A 3,171,981 84,596,733 76,317, Toronto-Dominion Bank, (The) 899,900 38,092,767 62,156, Toromont Industries Ltd. 2,429,136 30,315,617 55,748, Willis Group Holdings PLC 1,675,425 60,868,190 53,605, Fidelity Global Disciplined Equity Fund 1 Procter & Gamble Company, (The) 44,770 2,878,677 2,858, J.P. Morgan Chase & Co. 69,670 2,718,074 2,715, Western Digital Corporation 69,780 2,761,886 2,240, McAfee Inc. 67,280 2,533,899 2,200, Dell Inc. 171,170 2,344,088 2,197, Top holdings of the external underlying funds come from unaudited information provided by the external fund managers. Standard Life 119

120 Specific note to interim unaudited financial statements Ideal Select Conservative Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying funds increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $325,000 (December 31, $98,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 120 Standard Life

121 Ideal Select Moderate Portfolio Statement of net assets ASSETS Investments, at fair value* 8,178,373 3,432,732 Cash 5,082 9,209 Subscriptions receivable 51,506 - Receivable from investments sold - 55 Total assets 8,234,961 3,441,996 LIABILITIES Redemptions payable 19,453 - Payable on investments purchased 5,082 9,264 Management fees payable 9, Audit fees payable 1,890 - Other liabilities Total liabilities 36,186 9,793 NET ASSETS 8,198,775 3,432,203 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 8,323,486 3,390,787 Statement of operations for the periods ended June 30 (note 1) INVESTMENT INCOME Distribution income from underlying funds 113,451 13,225 Total investment income (loss) 113,451 13,225 EXPENSES (note 5) Management fees 88,655 6,616 Audit fees 1,985 1,988 Other operating expenses ,649 8,605 Less: expenses absorbed by the manager (9) (1,989) Total expenses 90,640 6,616 NET INVESTMENT INCOME (LOSS) 22,811 6,609 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (2,027) 1,898 Change in unrealized appreciation (depreciation) in value of investments (187,058) 51,516 NET GAIN (LOSS) ON INVESTMENTS (189,085) 53,414 ASSETS FROM OPERATIONS (166,274 ) 60,023 Increase (decrease) in net assets from operations per unit 75/100 Series (0.28) /100 Platinum Series (0.18 ) N/A 100/100 Series (0.30) /100 Platinum Series (0.40) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (166,274 ) 60,023 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 5,197, ,173 Payments for units redeemed (264,571 ) (167 ) Net capital unit transactions 4,932, ,006 ASSETS FOR THE PERIOD 4,766,572 1,038,029 NET ASSETS - beginning of period 3,432,203 - NET ASSETS - end of period 8,198,775 1,038,029 Standard Life 121

122 Ideal Select Moderate Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Canadian Bond Fund, O-Series 2 342,620 3,861,398 3,893,598 Standard Life International Bond Fund, O-Series 2 46, , ,333 Standard Life Global Monthly Income Fund, O-Series 2 26, , ,017 Standard Life Dividend Income Fund, O-Series 2 58, , ,622 Standard Life U.S. Dividend Growth Fund, O-Series 2 54, , ,275 Standard Life Global Dividend Growth Fund, O-Series 2 41, , ,313 Standard Life Canadian Equity Fund, O-Series 2 40,330 1,091,054 1,059,435 Trimark Canadian Fund, Series I 38, , ,673 Fidelity Global Disciplined Equity Fund, Series O 28, , ,247 Templeton Global Stock Trust, Series O 33, , ,860 TOTAL INVESTMENTS 99.75% 8,323,486 8,178,373 Other assets, less liabilities 0.25% 20,402 20,402 NET ASSETS % 8,343,888 8,198, Standard Life

123 Ideal Select Moderate Portfolio Top Holdings of the Underlying Funds as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency or shares cost ($) value ($) underlying funds Standard Life Canadian Bond Fund Canada Housing Trust No. 1, 4.550%, 2012/12/15 34,460,000 36,504,653 36,647, Province of Ontario, 4.500%, 2012/12/02 30,125,000 31,790,877 31,907, Government of Canada, 2.000%, 2012/09/01 20,440,000 20,487,438 20,637, Province of Quebec, 5.000%, 2041/12/01 12,685,000 13,076,449 13,357, Canada Housing Trust No. 1, 1.009%, 2015/03/15 10,940,000 10,942,163 10,940, 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, Standard Life Global Monthly Income Fund ishares, MSCI EAFE Index Fund 35,000 1,892,275 1,733, Standard & Poor s Depositary Receipt 15,000 1,756,574 1,648, ishares, S&P/TSX 60 Index Fund 92,800 1,576,112 1,542, Toronto-Dominion Bank, (The) 15, ,533 1,045, Bank of Nova Scotia, (The) 15, , , Standard Life Dividend Income Fund Royal Bank of Canada 121,500 6,386,608 6,160, Toronto-Dominion Bank, (The) 73,800 4,444,361 5,090, Canadian Imperial Bank of Commerce 62,700 4,140,972 4,146, Bank of Nova Scotia, (The) 82,800 3,681,686 4,060, Suncor Energy Inc. 109,000 3,708,905 3,414, Standard Life U.S. Dividend Growth Fund Altria Group Inc. 65,800 1,592,152 1,402, Exxon Mobil Corporation 17,500 1,371,383 1,061, AT&T Inc. 41,000 1,228,732 1,054, J.P. Morgan Chase & Co. 26,200 1,030,870 1,020, Utilities Select Sector SPDR Fund 33,300 1,043,792 1,001, Standard Life Global Dividend Growth Fund Exxon Mobil Corporation 85,791 6,915,542 5,202, Merck & Co., Inc. 120,321 4,105,683 4,475, Zurich Financial Services 17,371 4,035,752 4,095, Apple Inc. 14,917 2,198,045 3,993, J.P. Morgan Chase & Co. 99,124 4,140,774 3,861, Standard Life Canadian Equity Fund Royal Bank of Canada 184,500 7,948,479 9,354, Toronto-Dominion Bank, (The) 119,350 6,409,212 8,232, Bank of Nova Scotia, (The) 157,000 6,677,105 7,699, Canadian Natural Resources Limited 191,100 6,166,483 6,751, Suncor Energy Inc. 212,260 7,646,281 6,650, Trimark Canadian Fund 1 MacDonald, Dettwiler & Associates Ltd. 2,285,537 66,417, ,175, Brookfield Asset Management Inc., A 3,171,981 84,596,733 76,317, Toronto-Dominion Bank, (The) 899,900 38,092,767 62,156, Toromont Industries Ltd. 2,429,136 30,315,617 55,748, Willis Group Holdings PLC 1,675,425 60,868,190 53,605, Fidelity Global Disciplined Equity Fund 1 Procter & Gamble Company, (The) 44,770 2,878,677 2,858, J.P. Morgan Chase & Co. 69,670 2,718,074 2,715, Western Digital Corporation 69,780 2,761,886 2,240, McAfee Inc. 67,280 2,533,899 2,200, Dell Inc. 171,170 2,344,088 2,197, Templeton Global Stock Trust 1 Royal Bank of Canada, Term Deposit, 0.450%, 2010/07/02 31,100,000 31,100,000 31,100, Nintendo Co. Ltd. 59,800 9,676,191 18,974, Compagnie Generale des Etablissements Michelin, B 240,261 17,136,139 18,061, Rexam PLC 3,611,930 18,188,773 17,423, Cisco Systems Inc. 751,590 16,180,325 17,051, Top holdings of the external underlying funds come from unaudited information provided by the external fund managers. Standard Life 123

124 Specific note to interim unaudited financial statements Ideal Select Moderate Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying funds increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $818,000 (December 31, $343,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 124 Standard Life

125 Ideal Select Growth Portfolio Statement of net assets ASSETS Investments, at fair value* 3,365,640 2,136,349 Cash ,186 Subscriptions receivable - 50 Total assets 3,366,184 2,149,585 LIABILITIES Redemptions payable Payable on investments purchased ,186 Management fees payable 3, Other liabilities Total liabilities 5,427 13,537 NET ASSETS 3,360,757 2,136,048 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 3,417,985 2,045,372 Statement of operations for the periods ended June 30 (note 1) INVESTMENT INCOME Distribution income from underlying funds 25,102 4,200 Total investment income (loss) 25,102 4,200 EXPENSES (note 5) Management fees 41,129 4,099 Audit fees 1,883 1,988 Other operating expenses ,016 6,088 Less: expenses absorbed by the manager (1,887) (1,989) Total expenses 41,129 4,099 NET INVESTMENT INCOME (LOSS) (16,027) 101 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 6,572 1,662 Change in unrealized appreciation (depreciation) in value of investments (143,322) 38,780 NET GAIN (LOSS) ON INVESTMENTS (136,750) 40,442 ASSETS FROM OPERATIONS (152,777) 40,543 Increase (decrease) in net assets from operations per unit 75/100 Series (0.63) /100 Platinum Series (0.46) N/A 100/100 Series (0.63) /100 Platinum Series (0.84) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (152,777) 40,543 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 1,562, ,995 Payments for units redeemed (184,802) (2,071 ) Net capital unit transactions 1,377, ,924 ASSETS FOR THE PERIOD 1,224, ,467 NET ASSETS - beginning of period 2,136,048 - NET ASSETS - end of period 3,360, ,467 Standard Life 125

126 Ideal Select Growth Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Canadian Bond Fund, O-Series 2 65, , ,767 Standard Life International Bond Fund, O-Series 2 19, , ,049 Standard Life Global Monthly Income Fund, O-Series 2 11, , ,026 Standard Life Dividend Income Fund, O-Series 2 15, , ,101 Standard Life Canadian Equity Fund, O-Series 2 7, , ,558 Standard Life Canadian Small Cap Fund, O-Series 2 13, , ,372 Standard Life International Equity Fund, O-Series 2 16, , ,200 Standard Life U.S. Mid Cap Fund, O-Series 2 12,315 97,658 99,155 Standard Life U.S. Equity Focus Fund, O-Series 2 26, , ,492 Fidelity True North Fund, Series O 12, , ,540 Trimark Canadian Fund, Series I 30, , ,090 Russell US Equity Fund, Series A 1, ,483 98,277 Fidelity Global Disciplined Equity Fund, Series O 19, , ,752 Templeton Global Stock Trust, Series O 17, , ,261 TOTAL INVESTMENTS % 3,417,985 3,365,640 Other assets, less liabilities (0.15%) (4,883 ) (4,883 ) NET ASSETS % 3,413,102 3,360,757 Top Holdings of the Underlying Funds as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency or shares cost ($) value ($) underlying funds Standard Life Canadian Bond Fund Canada Housing Trust No. 1, 4.550%, 2012/12/15 34,460,000 36,504,653 36,647, Province of Ontario, 4.500%, 2012/12/02 30,125,000 31,790,877 31,907, Government of Canada, 2.000%, 2012/09/01 20,440,000 20,487,438 20,637, Province of Quebec, 5.000%, 2041/12/01 12,685,000 13,076,449 13,357, Canada Housing Trust No. 1, 1.009%, 2015/03/15 10,940,000 10,942,163 10,940, 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, Standard Life Global Monthly Income Fund ishares, MSCI EAFE Index Fund 35,000 1,892,275 1,733, Standard & Poor s Depositary Receipt 15,000 1,756,574 1,648, ishares, S&P/TSX 60 Index Fund 92,800 1,576,112 1,542, Toronto-Dominion Bank, (The) 15, ,533 1,045, Bank of Nova Scotia, (The) 15, , , Standard Life Dividend Income Fund Royal Bank of Canada 121,500 6,386,608 6,160, Toronto-Dominion Bank, (The) 73,800 4,444,361 5,090, Canadian Imperial Bank of Commerce 62,700 4,140,972 4,146, Bank of Nova Scotia, (The) 82,800 3,681,686 4,060, Suncor Energy Inc. 109,000 3,708,905 3,414, Standard Life Canadian Equity Fund Royal Bank of Canada 184,500 7,948,479 9,354, Toronto-Dominion Bank, (The) 119,350 6,409,212 8,232, Bank of Nova Scotia, (The) 157,000 6,677,105 7,699, Canadian Natural Resources Limited 191,100 6,166,483 6,751, Suncor Energy Inc. 212,260 7,646,281 6,650, Standard Life Canadian Small Cap Fund Canadian Western Bank 308,700 4,304,197 7,294, Reitmans (Canada) Limited, Non-voting, A 369,980 4,640,173 6,933, Gran Tierra Energy Inc. 1,129,000 4,852,050 5,983, Cominar Real Estate Investment Trust 300,000 5,662,096 5,565, Labrador Iron Ore Royalty Income Fund 126,900 4,195,635 5,418, Standard Life International Equity Fund HSBC Holdings PLC 218,730 2,688,979 2,133, Santander Central Hispano S.A. 147,575 2,428,725 1,681, Vodafone Group PLC 761,212 2,352,851 1,678, Sanofi-Aventis 22,377 1,702,805 1,442, GlaxoSmithKline PLC 78,005 1,633,707 1,413, Standard Life

127 Ideal Select Growth Portfolio Top Holdings of the Underlying Funds (continued) as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date or shares cost ($) value ($) underlying funds Standard Life U.S. Mid Cap Fund Telephone and Data Systems, Inc. 24, , , AMETEK, Inc. 18, , , Nalco Holding Company 31, , , HCC Insurance Holdings Inc. 25, , , Alberto-Culver Company 19, , , Standard Life U.S. Equity Focus Fund J.P. Morgan Chase & Co. 26,700 1,032,592 1,040, Alberto-Culver Company 35,600 1,005,738 1,027, Bank of America Corporation 63,100 1,143, , Apple Inc. 3, , , Procter & Gamble Company, (The) 15, , , Fidelity True North Fund 1 Toronto-Dominion Bank, (The) 5,290, ,256, ,904, Royal Bank of Canada 5,075, ,664, ,302, Suncor Energy Inc 7,270, ,448, ,769, Goldcorp Inc. 4,850, ,892, ,058, Canadian Natural Resources Limited 5,975, ,048, ,096, Trimark Canadian Fund 1 MacDonald, Dettwiler & Associates Ltd. 2,285,537 66,417, ,175, Brookfield Asset Management Inc., A 3,171,981 84,596,733 76,317, Toronto-Dominion Bank, (The) 899,900 38,092,767 62,156, Toromont Industries Ltd. 2,429,136 30,315,617 55,748, Willis Group Holdings PLC 1,675,425 60,868,190 53,605, Russell US Equity Fund 1 J.P. Morgan Chase & Co. 437,575 17,210,122 17,013, Apple Inc. 61,523 8,272,348 16,441, Wells Fargo & Company 550,565 15,846,506 14,954, Bank of America Corporation 819,002 13,895,752 12,497, QUALCOMM Incorporated 352,954 15,616,955 12,309, Fidelity Global Disciplined Equity Fund 1 Procter & Gamble Company, (The) 44,770 2,878,677 2,858, J.P. Morgan Chase & Co. 69,670 2,718,074 2,715, Western Digital Corporation 69,780 2,761,886 2,240, McAfee Inc. 67,280 2,533,899 2,200, Dell Inc. 171,170 2,344,088 2,197, Templeton Global Stock Trust 1 Royal Bank of Canada, Term Deposit, 0.450%, 2010/07/02 31,100,000 31,100,000 31,100, Nintendo Co. Ltd. 59,800 9,676,191 18,974, Compagnie Generale des Etablissements Michelin, B 240,261 17,136,139 18,061, Rexam PLC 3,611,930 18,188,773 17,423, Cisco Systems Inc. 751,590 16,180,325 17,051, Top holdings of the external underlying funds come from unaudited information provided by the external fund managers. Standard Life 127

128 Specific note to interim unaudited financial statements Ideal Select Growth Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying funds increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $337,000 (December 31, $214,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 128 Standard Life

129 Ideal Select Dividend Growth & Income Portfolio Statement of net assets ASSETS Investments, at fair value* 3,149,879 1,828,327 Cash 3,218 4,443 Receivable from investments sold Total assets 3,153,097 1,833,124 LIABILITIES Redemptions payable Payable on investments purchased 3,218 4,797 Management fees payable 3, Other liabilities Total liabilities 8,071 5,107 NET ASSETS 3,145,026 1,828,017 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 3,300,827 1,786,806 Statement of operations for the periods ended June 30 (note 1) INVESTMENT INCOME Distribution income from underlying funds 48,665 1,183 Total investment income (loss) 48,665 1,183 EXPENSES (note 5) Management fees 38, Audit fees 1,883 1,988 Other operating expenses 4-40,481 2,609 Less: expenses absorbed by the manager (1,887) (1,988) Total expenses 38, NET INVESTMENT INCOME (LOSS) 10, REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (1,033) 691 Change in unrealized appreciation (depreciation) in value of investments (192,469) 4,336 NET GAIN (LOSS) ON INVESTMENTS (193,502) 5,027 ASSETS FROM OPERATIONS (183,431) 5,589 Increase (decrease) in net assets from operations per unit 75/100 Series (0.76) /100 Platinum Series (0.56) N/A 100/100 Series (0.83) /100 Platinum Series (0.94) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (183,431) 5,589 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 1,545, ,200 Payments for units redeemed (45,306) (19,040) Net capital unit transactions 1,500, ,160 ASSETS FOR THE PERIOD 1,317, ,749 NET ASSETS - beginning of period 1,828,017 - NET ASSETS - end of period 3,145, ,749 Standard Life 129

130 Ideal Select Dividend Growth & Income Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Monthly Income Fund, O-Series 2 50, , ,523 Standard Life Global Monthly Income Fund, O-Series 2 44, , ,894 Standard Life Canadian Dividend Growth Fund, O-Series 2 6, , ,304 Standard Life U.S. Dividend Growth Fund, O-Series 2 34, , ,343 Standard Life Global Dividend Growth Fund, O-Series 2 42, , ,963 Fidelity True North Fund, Series O 8, , ,512 Trimark Canadian Fund, Series I 21, , ,962 Fidelity Global Disciplined Equity Fund, Series O 23, , ,471 Templeton Global Stock Trust, Series O 29, , ,907 TOTAL INVESTMENTS % 3,300,827 3,149,879 Other assets, less liabilities (0.15%) (4,853 ) (4,853 ) NET ASSETS % 3,295,974 3,145, Standard Life

131 Ideal Select Dividend Growth & Income Portfolio Top Holdings of the Underlying Funds as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date or shares cost ($) value ($) underlying funds Standard Life Monthly Income Fund Standard & Poor s Depositary Receipt 415,500 45,025,624 45,658, Royal Bank of Canada 428,800 14,554,109 21,740, Bank of Nova Scotia, (The) 412,700 15,511,343 20,238, Toronto-Dominion Bank, (The) 271,700 12,838,223 18,741, Province of Ontario, 5.850%, 2033/03/08 14,664,000 16,382,518 17,210, Standard Life Global Monthly Income Fund ishares, MSCI EAFE Index Fund 35,000 1,892,275 1,733, Standard & Poor s Depositary Receipt 15,000 1,756,574 1,648, ishares, S&P/TSX 60 Index Fund 92,800 1,576,112 1,542, Toronto-Dominion Bank, (The) 15, ,533 1,045, Bank of Nova Scotia, (The) 15, , , Standard Life Canadian Dividend Growth Fund Toronto-Dominion Bank, (The) 2,136, ,257, ,375, Royal Bank of Canada 2,762, ,016, ,048, Bank of Nova Scotia, (The) 2,785, ,562, ,598, Canadian Imperial Bank of Commerce 1,573,400 98,683, ,064, Suncor Energy Inc. 2,951,500 96,704,679 92,470, Standard Life U.S. Dividend Growth Fund Altria Group Inc. 65,800 1,592,152 1,402, Exxon Mobil Corporation 17,500 1,371,383 1,061, AT&T Inc. 41,000 1,228,732 1,054, J.P. Morgan Chase & Co. 26,200 1,030,870 1,020, Utilities Select Sector SPDR Fund 33,300 1,043,792 1,001, Standard Life Global Dividend Growth Fund Exxon Mobil Corporation 85,791 6,915,542 5,202, Merck & Co., Inc. 120,321 4,105,683 4,475, Zurich Financial Services 17,371 4,035,752 4,095, Apple Inc. 14,917 2,198,045 3,993, J.P. Morgan Chase & Co. 99,124 4,140,774 3,861, Fidelity True North Fund 1 Toronto-Dominion Bank, (The) 5,290, ,256, ,904, Royal Bank of Canada 5,075, ,664, ,302, Suncor Energy Inc 7,270, ,448, ,769, Goldcorp Inc. 4,850, ,892, ,058, Canadian Natural Resources Limited 5,975, ,048, ,096, Trimark Canadian Fund 1 MacDonald, Dettwiler & Associates Ltd. 2,285,537 66,417, ,175, Brookfield Asset Management Inc., A 3,171,981 84,596,733 76,317, Toronto-Dominion Bank, (The) 899,900 38,092,767 62,156, Toromont Industries Ltd. 2,429,136 30,315,617 55,748, Willis Group Holdings PLC 1,675,425 60,868,190 53,605, Fidelity Global Disciplined Equity Fund 1 Procter & Gamble Company, (The) 44,770 2,878,677 2,858, J.P. Morgan Chase & Co. 69,670 2,718,074 2,715, Western Digital Corporation 69,780 2,761,886 2,240, McAfee Inc. 67,280 2,533,899 2,200, Dell Inc. 171,170 2,344,088 2,197, Templeton Global Stock Trust 1 Royal Bank of Canada, Term Deposit, 0.450%, 2010/07/02 31,100,000 31,100,000 31,100, Nintendo Co. Ltd. 59,800 9,676,191 18,974, Compagnie Generale des Etablissements Michelin, B 240,261 17,136,139 18,061, Rexam PLC 3,611,930 18,188,773 17,423, Cisco Systems Inc. 751,590 16,180,325 17,051, Top holdings of the external underlying funds come from unaudited information provided by the external fund managers. Standard Life 131

132 Specific note to interim unaudited financial statements Ideal Select Dividend Growth & Income Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying funds increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $315,000 (December 31, $183,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 132 Standard Life

133 Ideal Select Aggressive Portfolio Statement of net assets ASSETS Investments, at fair value* 2,155,426 2,070,760 Subscriptions receivable Receivable from investments sold 15, Total assets 2,171,978 2,071,473 LIABILITIES Bank indebtedness 15, Redemptions payable 9,389 - Payable on investments purchased 13 - Management fees payable 2, Other liabilities Total liabilities 27, NET ASSETS 2,144,061 2,070,602 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 2,277,471 2,073,780 Statement of operations for the periods ended June 30 (note 1) INVESTMENT INCOME Distribution income from underlying funds 10, Total investment income (loss) 10, EXPENSES (note 5) Management fees 33, Audit fees 1,883 1,988 Other operating expenses 4-35,230 2,289 Less: expenses absorbed by the manager (1,887) (1,988) Total expenses 33, NET INVESTMENT INCOME (LOSS) (22,703) (159) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (2,590) 102 Change in unrealized appreciation (depreciation) in value of investments (119,025) 1,679 NET GAIN (LOSS) ON INVESTMENTS (121,615 ) 1,781 ASSETS FROM OPERATIONS (144,318 ) 1,622 Increase (decrease) in net assets from operations per unit 75/100 Series (0.77) /100 Platinum Series (0.62) N/A 100/100 Series (0.76) /100 Platinum Series (0.63) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (144,318 ) 1,622 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 329,371 26,000 Payments for units redeemed (111,594 ) - Net capital unit transactions 217,777 26,000 ASSETS FOR THE PERIOD 73,459 27,622 NET ASSETS - beginning of period 2,070,602 - NET ASSETS - end of period 2,144,061 27,622 Standard Life 133

134 Ideal Select Aggressive Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life Canadian Bond Fund, O-Series 2 22, , ,033 Standard Life International Bond Fund, O-Series 2 10, , ,819 Standard Life Dividend Income Fund, O-Series 2 9, , ,145 Standard Life Canadian Equity Fund, O-Series 2 5, , ,532 Standard Life Canadian Small Cap Fund, O-Series 2 13, , ,214 Standard Life International Equity Fund, O-Series 2 17, , ,928 Standard Life U.S. Mid Cap Fund, O-Series 2 10,581 85,801 85,197 Standard Life U.S. Equity Focus Fund, O-Series 2 18, , ,363 Fidelity True North Fund, Series O 7, , ,892 Trimark Canadian Fund, Series I 16, , ,820 Russell US Equity Fund, Series A 1, ,536 95,039 Fidelity Global Disciplined Equity Fund, Series O 14, , ,144 Templeton Global Stock Trust, Series O 19, , ,300 TOTAL INVESTMENTS % 2,277,471 2,155,426 Other assets, less liabilities (0.53%) (11,365 ) (11,365 ) NET ASSETS % 2,266,106 2,144,061 Top Holdings of the Underlying Funds as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency or shares cost ($) value ($) underlying funds Standard Life Canadian Bond Fund Canada Housing Trust No. 1, 4.550%, 2012/12/15 34,460,000 36,504,653 36,647, Province of Ontario, 4.500%, 2012/12/02 30,125,000 31,790,877 31,907, Government of Canada, 2.000%, 2012/09/01 20,440,000 20,487,438 20,637, Province of Quebec, 5.000%, 2041/12/01 12,685,000 13,076,449 13,357, Canada Housing Trust No. 1, 1.009%, 2015/03/15 10,940,000 10,942,163 10,940, 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, Standard Life Dividend Income Fund Royal Bank of Canada 121,500 6,386,608 6,160, Toronto-Dominion Bank, (The) 73,800 4,444,361 5,090, Canadian Imperial Bank of Commerce 62,700 4,140,972 4,146, Bank of Nova Scotia, (The) 82,800 3,681,686 4,060, Suncor Energy Inc. 109,000 3,708,905 3,414, Standard Life Canadian Equity Fund Royal Bank of Canada 184,500 7,948,479 9,354, Toronto-Dominion Bank, (The) 119,350 6,409,212 8,232, Bank of Nova Scotia, (The) 157,000 6,677,105 7,699, Canadian Natural Resources Limited 191,100 6,166,483 6,751, Suncor Energy Inc. 212,260 7,646,281 6,650, Standard Life Canadian Small Cap Fund Canadian Western Bank 308,700 4,304,197 7,294, Reitmans (Canada) Limited, Non-voting, A 369,980 4,640,173 6,933, Gran Tierra Energy Inc. 1,129,000 4,852,050 5,983, Cominar Real Estate Investment Trust 300,000 5,662,096 5,565, Labrador Iron Ore Royalty Income Fund 126,900 4,195,635 5,418, Standard Life International Equity Fund HSBC Holdings PLC 218,730 2,688,979 2,133, Santander Central Hispano S.A. 147,575 2,428,725 1,681, Vodafone Group PLC 761,212 2,352,851 1,678, Sanofi-Aventis 22,377 1,702,805 1,442, GlaxoSmithKline PLC 78,005 1,633,707 1,413, Standard Life U.S. Mid Cap Fund Telephone and Data Systems, Inc. 24, , , AMETEK, Inc. 18, , , Nalco Holding Company 31, , , HCC Insurance Holdings Inc. 25, , , Alberto-Culver Company 19, , , Standard Life

135 Ideal Select Aggressive Portfolio Top Holdings of the Underlying Funds (continued) as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date or shares cost ($) value ($) underlying funds Standard Life U.S. Equity Focus Fund J.P. Morgan Chase & Co. 26,700 1,032,592 1,040, Alberto-Culver Company 35,600 1,005,738 1,027, Bank of America Corporation 63,100 1,143, , Apple Inc. 3, , , Procter & Gamble Company, (The) 15, , , Fidelity True North Fund 1 Toronto-Dominion Bank, (The) 5,290, ,256, ,904, Royal Bank of Canada 5,075, ,664, ,302, Suncor Energy Inc 7,270, ,448, ,769, Goldcorp Inc. 4,850, ,892, ,058, Canadian Natural Resources Limited 5,975, ,048, ,096, Trimark Canadian Fund 1 MacDonald, Dettwiler & Associates Ltd. 2,285,537 66,417, ,175, Brookfield Asset Management Inc., A 3,171,981 84,596,733 76,317, Toronto-Dominion Bank, (The) 899,900 38,092,767 62,156, Toromont Industries Ltd. 2,429,136 30,315,617 55,748, Willis Group Holdings PLC 1,675,425 60,868,190 53,605, Russell US Equity Fund 1 J.P. Morgan Chase & Co. 437,575 17,210,122 17,013, Apple Inc. 61,523 8,272,348 16,441, Wells Fargo & Company 550,565 15,846,506 14,954, Bank of America Corporation 819,002 13,895,752 12,497, QUALCOMM Incorporated 352,954 15,616,955 12,309, Fidelity Global Disciplined Equity Fund 1 Procter & Gamble Company, (The) 44,770 2,878,677 2,858, J.P. Morgan Chase & Co. 69,670 2,718,074 2,715, Western Digital Corporation 69,780 2,761,886 2,240, McAfee Inc. 67,280 2,533,899 2,200, Dell Inc. 171,170 2,344,088 2,197, Templeton Global Stock Trust 1 Royal Bank of Canada, Term Deposit, 0.450%, 2010/07/02 31,100,000 31,100,000 31,100, Nintendo Co. Ltd. 59,800 9,676,191 18,974, Compagnie Generale des Etablissements Michelin, B 240,261 17,136,139 18,061, Rexam PLC 3,611,930 18,188,773 17,423, Cisco Systems Inc. 751,590 16,180,325 17,051, Top holdings of the external underlying funds come from unaudited information provided by the external fund managers. Standard Life 135

136 Specific note to interim unaudited financial statements Ideal Select Aggressive Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying funds increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $216,000 (December 31, $207,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 136 Standard Life

137 Ideal Select Global Portfolio Statement of net assets ASSETS Investments, at fair value* 318, ,241 Receivable from investments sold Total assets 318, ,254 LIABILITIES Bank indebtedness Management fees payable Other liabilities 20 2 Total liabilities NET ASSETS 318, ,216 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 337, ,902 Statement of operations for the periods ended June 30 (note 1) INVESTMENT INCOME Distribution income from underlying funds Total investment income (loss) EXPENSES (note 5) Management fees 4, Audit fees 1,883 1,988 Other operating expenses 1-6,534 2,475 Less: expenses absorbed by the manager (1,884) (1,988) Total expenses 4, NET INVESTMENT INCOME (LOSS) (3,818 ) (402) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (43) (10) Change in unrealized appreciation (depreciation) in value of investments (26,681) 3,986 NET GAIN (LOSS) ON INVESTMENTS (26,724 ) 3,976 ASSETS FROM OPERATIONS (30,542) 3,574 Increase (decrease) in net assets from operations per unit 75/100 Series (1.14 ) /100 Platinum Series (0.95) N/A 100/100 Series (1.14 ) /100 Platinum Series (0.96) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (30,542) 3,574 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 317,342 36,436 Payments for units redeemed (109,875 ) - Net capital unit transactions 207,467 36,436 ASSETS FOR THE PERIOD 176,925 40,010 NET ASSETS - beginning of period 141,216 - NET ASSETS - end of period 318,141 40,010 Standard Life 137

138 Ideal Select Global Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Standard Life U.S. Dividend Growth Fund, O-Series 2 3,801 27,609 26,165 Standard Life Global Dividend Growth Fund, O-Series 2 4,607 44,858 40,441 Standard Life International Equity Fund, O-Series 2 2,188 24,691 22,413 Standard Life Global Equity Fund, O-Series 2 5,067 33,402 31,849 Standard Life European Equity Fund, O-Series 2 7,153 46,845 41,046 Standard Life U.S. Equity Focus Fund, O-Series 2 3,933 29,659 27,982 Standard Life Global Equity Focus Fund, O-Series 2 2,912 24,579 23,386 Standard Life India Equity Focus Fund, O-Series 2 2,146 23,379 26,909 Russell US Equity Fund, Series A ,194 30,842 Fidelity Global Disciplined Equity Fund, Series O 2,305 25,301 24,120 Templeton Global Stock Trust, Series O 2,725 25,387 23,409 TOTAL INVESTMENTS % 337, ,562 Other assets, less liabilities (0.13%) (421 ) (421 ) NET ASSETS % 337, ,141 Top Holdings of the Underlying Funds as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Shares cost ($) value ($) underlying funds Standard Life U.S. Dividend Growth Fund Altria Group Inc. 65,800 1,592,152 1,402, Exxon Mobil Corporation 17,500 1,371,383 1,061, AT&T Inc. 41,000 1,228,732 1,054, J.P. Morgan Chase & Co. 26,200 1,030,870 1,020, Utilities Select Sector SPDR Fund 33,300 1,043,792 1,001, Standard Life Global Dividend Growth Fund Exxon Mobil Corporation 85,791 6,915,542 5,202, Merck & Co., Inc. 120,321 4,105,683 4,475, Zurich Financial Services 17,371 4,035,752 4,095, Apple Inc. 14,917 2,198,045 3,993, J.P. Morgan Chase & Co. 99,124 4,140,774 3,861, Standard Life International Equity Fund HSBC Holdings PLC 218,730 2,688,979 2,133, Santander Central Hispano S.A. 147,575 2,428,725 1,681, Vodafone Group PLC 761,212 2,352,851 1,678, Sanofi-Aventis 22,377 1,702,805 1,442, GlaxoSmithKline PLC 78,005 1,633,707 1,413, Standard Life Global Equity Fund Apple Inc. 3, ,278 1,067, MetLife Inc. 16, , , TEMENOS Group AG 24, , , Croda International PLC 39, , , Mead Johnson Nutrition Company 11, , , Standard Life European Equity Fund Roche Holdings AG 3, , , InBev N.V. 8, , , Nestlé S.A. 8, , , Siemens AG 4, , , Telefonica, S.A. 18, , , Standard Life U.S. Equity Focus Fund J.P. Morgan Chase & Co. 26,700 1,032,592 1,040, Alberto-Culver Company 35,600 1,005,738 1,027, Bank of America Corporation 63,100 1,143, , Apple Inc. 3, , , Procter & Gamble Company, (The) 15, , , Standard Life Global Equity Focus Fund Canadian Natural Resources Limited 14, , , Suncor Energy Inc. 16, , , Bank of Nova Scotia, (The) 10, , , Toronto-Dominion Bank, (The) 7, , , Canadian Imperial Bank of Commerce 7, , , Standard Life

139 Ideal Select Global Portfolio Top Holdings of the Underlying Funds (continued) as at June 30, 2010 (unaudited) Par value ($) Average Fair % Net assets of Issuer / Interest rate / Maturity date or shares cost ($) value ($) underlying funds Standard Life India Equity Focus Fund ICICI Bank Limited 44, , , TATA MOTORS LIMITED, A, (DVR) 73, , , Reliance Industries Limited 29, , , Crompton Greaves Limited 126, , , Oil and Natural Gas Corporation Limited 22, , , Russell US Equity Fund 1 J.P. Morgan Chase & Co. 437,575 17,210,122 17,013, Apple Inc. 61,523 8,272,348 16,441, Wells Fargo & Company 550,565 15,846,506 14,954, Bank of America Corporation 819,002 13,895,752 12,497, QUALCOMM Incorporated 352,954 15,616,955 12,309, Fidelity Global Disciplined Equity Fund 1 Procter & Gamble Company, (The) 44,770 2,878,677 2,858, J.P. Morgan Chase & Co. 69,670 2,718,074 2,715, Western Digital Corporation 69,780 2,761,886 2,240, McAfee Inc. 67,280 2,533,899 2,200, Dell Inc. 171,170 2,344,088 2,197, Templeton Global Stock Trust 1 Royal Bank of Canada, Term Deposit, 0.450%, 2010/07/02 31,100,000 31,100,000 31,100, Nintendo Co. Ltd. 59,800 9,676,191 18,974, Compagnie Generale des Etablissements Michelin, B 240,261 17,136,139 18,061, Rexam PLC 3,611,930 18,188,773 17,423, Cisco Systems Inc. 751,590 16,180,325 17,051, Top holdings of the external underlying funds come from unaudited information provided by the external fund managers. Standard Life 139

140 Specific note to interim unaudited financial statements Ideal Select Global Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying funds. As at June 30, 2010, had the price of the underlying funds increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $32,000 (December 31, $14,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 140 Standard Life

141 Ideal LifePoints Balanced Income Portfolio Statement of net assets ASSETS Investments, at fair value* 1,361,686 1,157,815 Cash - 46,596 Total assets 1,361,686 1,204,411 LIABILITIES Bank indebtedness 32 - Redemptions payable Payable on investments purchased - 46,596 Management fees payable 1, Other liabilities Total liabilities 2,479 46,784 NET ASSETS 1,359,207 1,157,627 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 1,372,117 1,172,139 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 19,516 1,862 Audit fees 1,883 1,988 Other operating expenses 2-21,401 3,850 Less: expenses absorbed by the manager (1,885) (1,988) Total expenses 19,516 1,862 NET INVESTMENT INCOME (LOSS) (19,516 ) (1,862) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (106) 1,537 Change in unrealized appreciation (depreciation) in value of investments 3,893 14,245 NET GAIN (LOSS) ON INVESTMENTS 3,787 15,782 ASSETS FROM OPERATIONS (15,729) 13,920 Increase (decrease) in net assets from operations per unit 75/100 Series (0.17 ) /100 Platinum Series (0.07) N/A 100/100 Series (0.13 ) /100 Platinum Series (0.08) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (15,729) 13,920 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 243, ,775 Payments for units redeemed (25,770) (1,000) Net capital unit transactions 217, ,775 ASSETS FOR THE PERIOD 201, ,695 NET ASSETS - beginning of period 1,157,627 - NET ASSETS - end of period 1,359, ,695 Standard Life 141

142 Ideal LifePoints Balanced Income Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) LifePoints Balanced Income Portfolio, A-Series 12,834 1,372,117 1,361,686 TOTAL INVESTMENTS % 1,372,117 1,361,686 Other assets, less liabilities (0.18%) (2,479) (2,479) NET ASSETS % 1,369,638 1,359,207 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Units cost ($) value ($) underlying fund LifePoints Balanced Income Portfolio Russell Canadian Fixed Income Fund, Series B 83,618, ,407, ,125, Russell Canadian Equity Fund, Series B 20,042,943 95,382,919 91,682, Russell US Equity Fund, Series B 22,757,971 73,179,311 60,465, Russell Global Equity Fund, Series B 708,710 67,953,440 55,500, Russell Overseas Equity Fund, Series B 18,614,285 68,768,693 54,614, Top holdings of the external underlying funds come from unaudited information provided by the external fund manager. 142 Standard Life

143 Specific note to interim unaudited financial statements Ideal LifePoints Balanced Income Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying fund. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $136,000 (December 31, $116,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. Standard Life 143

144 Ideal LifePoints Balanced Portfolio Statement of net assets ASSETS Investments, at fair value* 3,804,677 3,127,210 Total assets 3,804,677 3,127,210 LIABILITIES Redemptions payable Management fees payable 4, Other liabilities Total liabilities 5, NET ASSETS 3,798,876 3,126,661 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 3,805,485 3,065,999 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 55,493 2,746 Audit fees 1,883 1,988 Other operating expenses 5-57,381 4,734 Less: expenses absorbed by the manager (1,888) (1,988) Total expenses 55,493 2,746 NET INVESTMENT INCOME (LOSS) (55,493) (2,746) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 1,638 (149) Change in unrealized appreciation (depreciation) in value of investments (62,019 ) 24,909 NET GAIN (LOSS) ON INVESTMENTS (60,381) 24,760 ASSETS FROM OPERATIONS (115,874 ) 22,014 Increase (decrease) in net assets from operations per unit 75/100 Series (0.63) /100 Platinum Series (0.26) N/A 100/100 Series (0.35) /100 Platinum Series (0.27) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (115,874 ) 22,014 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 999, ,656 Payments for units redeemed (211,223) (1,000) Net capital unit transactions 788, ,656 ASSETS FOR THE PERIOD 672, ,670 NET ASSETS - beginning of period 3,126,661 - NET ASSETS - end of period 3,798, , Standard Life

145 Ideal LifePoints Balanced Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) LifePoints Balanced Portfolio, A-Series 30,939 3,805,485 3,804,677 TOTAL INVESTMENTS % 3,805,485 3,804,677 Other assets, less liabilities (0.15%) (5,801) (5,801) NET ASSETS % 3,799,684 3,798,876 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Units cost ($) value ($) underlying fund LifePoints Balanced Portfolio Russell Canadian Fixed Income Fund, Series B 14,192,324 78,898,982 81,659, Russell Canadian Equity Fund, Series B 6,278,800 31,438,354 28,721, Russell US Equity Fund, Series B 7,309,872 22,209,684 19,421, Russell Global Equity Fund, Series B 231,837 21,176,037 18,155, Russell Overseas Equity Fund, Series B 6,070,739 22,553,329 17,811, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. Standard Life 145

146 Specific note to interim unaudited financial statements Ideal LifePoints Balanced Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying fund. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $380,000 (December 31, $313,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 146 Standard Life

147 Ideal LifePoints Balanced Growth Portfolio Statement of net assets ASSETS Investments, at fair value* 520, ,793 Subscriptions receivable - 75,358 Total assets 520, ,151 LIABILITIES Management fees payable Other liabilities 32 1 Total liabilities NET ASSETS 519, ,131 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 532, ,229 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 6, Audit fees 1,883 1,988 Other operating expenses 1-8,191 2,300 Less: expenses absorbed by the manager (1,884) (1,988) Total expenses 6, NET INVESTMENT INCOME (LOSS) (6,307) (312 ) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (599) (5) Change in unrealized appreciation (depreciation) in value of investments (14,973 ) 1,809 NET GAIN (LOSS) ON INVESTMENTS (15,572 ) 1,804 ASSETS FROM OPERATIONS (21,879) 1,492 Increase (decrease) in net assets from operations per unit 75/100 Series (0.59) /100 Platinum Series (0.42) N/A 100/100 Series (0.65) /100 Platinum Series (0.43) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (21,879) 1,492 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 343,276 41,287 Payments for units redeemed - - Net capital unit transactions 343,276 41,287 ASSETS FOR THE PERIOD 321,397 42,779 NET ASSETS - beginning of period 198,131 - NET ASSETS - end of period 519,528 42,779 Standard Life 147

148 Ideal LifePoints Balanced Growth Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) LifePoints Balanced Growth Portfolio, A-Series 5, , ,214 TOTAL INVESTMENTS % 532, ,214 Other assets, less liabilities (0.13%) (686) (686) NET ASSETS % 531, ,528 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Units cost ($) value ($) underlying fund LifePoints Balanced Growth Portfolio Russell Canadian Fixed Income Fund, Series B 103,609, ,765, ,146, Russell Canadian Equity Fund, Series B 68,515, ,568, ,410, Russell US Equity Fund, Series B 80,121, ,116, ,876, Russell Global Equity Fund, Series B 2,494, ,210, ,361, Russell Overseas Equity Fund, Series B 62,789, ,817, ,225, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. 148 Standard Life

149 Specific note to interim unaudited financial statements Ideal LifePoints Balanced Growth Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying fund. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $52,000 (December 31, $12,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. Standard Life 149

150 Ideal LifePoints Long-Term Growth Portfolio Statement of net assets ASSETS Investments, at fair value* 320, ,966 Total assets 320, ,966 LIABILITIES Management fees payable Other liabilities 22 3 Total liabilities NET ASSETS 320, ,921 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 335, ,334 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 4, Audit fees 1,883 1,988 Other operating expenses 1-6,617 2,442 Less: expenses absorbed by the manager (1,884) (1,988) Total expenses 4, NET INVESTMENT INCOME (LOSS) (4,733) (454) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 22 (2) Change in unrealized appreciation (depreciation) in value of investments (18,294) 3,316 NET GAIN (LOSS) ON INVESTMENTS (18,272) 3,314 ASSETS FROM OPERATIONS (23,005) 2,860 Increase (decrease) in net assets from operations per unit 75/100 Series (1.07) /100 Platinum Series (0.63) N/A 100/100 Series (0.92) /100 Platinum Series (0.64) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (23,005) 2,860 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 96,500 44,687 Payments for units redeemed (329) - Net capital unit transactions 96,171 44,687 ASSETS FOR THE PERIOD 73,166 47,547 NET ASSETS - beginning of period 246,921 - NET ASSETS - end of period 320,087 47, Standard Life

151 Ideal LifePoints Long-Term Growth Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) LifePoints Long-Term Growth Portfolio, A-Series 3, , ,535 TOTAL INVESTMENTS % 335, ,535 Other assets, less liabilities (0.14%) (448) (448) NET ASSETS % 334, ,087 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Average Fair % Net assets of Issuer Units cost ($) value ($) underlying fund LifePoints Long-Term Growth Portfolio Russell Canadian Equity Fund, Series B 38,177, ,563, ,637, Russell US Equity Fund, Series B 46,010, ,892, ,244, Russell Canadian Fixed Income Fund, Series B 20,370, ,867, ,205, Russell Global Equity Fund, Series B 1,404, ,984, ,954, Russell Overseas Equity Fund, Series B 36,842, ,431, ,096, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. Standard Life 151

152 Specific note to interim unaudited financial statements Ideal LifePoints Long-Term Growth Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying fund. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $32,000 (December 31, $25,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 152 Standard Life

153 Ideal FT Quotential Diversified Income Portfolio Statement of net assets ASSETS Investments, at fair value* 2,809, ,285 Total assets 2,809, ,285 LIABILITIES Redemptions payable 2,803 - Management fees payable 3, Other liabilities Total liabilities 6, NET ASSETS 2,803, ,197 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 2,747, ,851 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 23, Audit fees 1,883 1,988 Other operating expenses 3-25,226 2,269 Less: expenses absorbed by the manager (1,886) (1,988) Total expenses 23, NET INVESTMENT INCOME (LOSS) (23,340) (281) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 349 (1) Change in unrealized appreciation (depreciation) in value of investments 66,480 1,200 NET GAIN (LOSS) ON INVESTMENTS 66,829 1,199 ASSETS FROM OPERATIONS 43, Increase (decrease) in net assets from operations per unit 75/100 Series /100 Platinum Series 0.18 N/A 100/100 Series /100 Platinum Series 0.29 N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS 43, CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 2,269,837 20,000 Payments for units redeemed (27,788 ) - Net capital unit transactions 2,242,049 20,000 ASSETS FOR THE PERIOD 2,285,538 20,918 NET ASSETS - beginning of period 518,197 - NET ASSETS - end of period 2,803,735 20,918 Standard Life 153

154 Ideal FT Quotential Diversified Income Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Quotential Diversified Income Portfolio, Series O 468,317 2,747,988 2,809,902 TOTAL INVESTMENTS % 2,747,988 2,809,902 Other assets, less liabilities (0.22%) (6,167 ) (6,167 ) NET ASSETS % 2,741,821 2,803,735 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($), Average Fair % Net assets of Issuer / Interest rate / Maturity date shares or units cost ($) value ($) underlying fund Quotential Diversified Income Portfolio Bissett Bond Fund 23,477, ,863, ,022, Templeton Global Bond Fund 7,605,131 84,151,912 90,805, Franklin Strategic Income Fund 9,998,890 88,366,219 78,091, Bissett Canadian Dividend Fund 3,438,643 39,307,772 47,453, Bissett Income Fund 2,701,478 39,522,769 42,548, Franklin High Income Fund 4,716,758 37,869,522 35,753, Bissett Canadian Short Term Bond Fund 3,275,056 35,000,000 35,043, SPDR Gold Trust 245,300 28,665,885 31,776, ishares Barclays 20+ Year Treasury Bond Fund 231,200 23,444,069 25,044, Royal Bank of Canada, Term Deposit, 0.450%, 2010/07/02 20,060,000 20,060,000 20,060, ishares DEX Universe Bond Index Fund 446,200 13,262,956 13,269, ishares S&P/TSX 60 Index Fund 277,800 4,871,654 4,617, Franklin Templeton Global Aggregate Bond Fund 144,446 1,300,693 1,353, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. 154 Standard Life

155 Specific note to interim unaudited financial statements Ideal FT Quotential Diversified Income Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying fund. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $281,000 (December 31, $52,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. Standard Life 155

156 Ideal FT Quotential Balanced Income Portfolio Statement of net assets ASSETS Investments, at fair value* 4,452,910 1,849,708 Subscriptions receivable - 18,500 Total assets 4,452,910 1,868,208 LIABILITIES Redemptions payable 3,432 - Management fees payable 5, Other liabilities Total liabilities 8, NET ASSETS 4,444,005 1,867,904 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 4,404,123 1,814,957 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 45,878 1,337 Audit fees 1,883 1,988 Other operating expenses 5-47,766 3,325 Less: expenses absorbed by the manager (1,888) (1,988) Total expenses 45,878 1,337 NET INVESTMENT INCOME (LOSS) (45,878 ) (1,337) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 3, Change in unrealized appreciation (depreciation) in value of investments 14,036 13,424 NET GAIN (LOSS) ON INVESTMENTS 17,494 13,631 ASSETS FROM OPERATIONS (28,384) 12,294 Increase (decrease) in net assets from operations per unit 75/100 Series (0.07) /100 Platinum Series 0.02 N/A 100/100 Series (0.22) /100 Platinum Series - N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (28,384) 12,294 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 3,028, ,026 Payments for units redeemed (424,403 ) - Net capital unit transactions 2,604, ,026 ASSETS FOR THE PERIOD 2,576, ,320 NET ASSETS - beginning of period 1,867,904 - NET ASSETS - end of period 4,444, , Standard Life

157 Ideal FT Quotential Balanced Income Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Quotential Balanced Income Portfolio, Series O 626,288 4,404,123 4,452,910 TOTAL INVESTMENTS % 4,404,123 4,452,910 Other assets, less liabilities (0.20%) (8,905) (8,905) NET ASSETS % 4,395,218 4,444,005 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($), Average Fair % Net assets of Issuer / Interest rate / Maturity date shares or units cost ($) value ($) underlying fund Quotential Balanced Income Portfolio Bissett Bond Fund 20,099, ,283, ,235, Templeton Global Bond Fund 9,968, ,735, ,019, Franklin Strategic Income Fund 10,291,412 84,245,812 80,375, Bissett Canadian Equity Fund 715,935 50,930,588 59,465, Franklin Templeton Canadian Core Equity Fund 7,056,789 56,116,669 53,772, Royal Bank of Canada, Term Deposit, 0.450%, 2010/07/02 51,730,000 51,730,000 51,730, Franklin Templeton Canadian Large Cap Fund 4,735,085 41,740,904 43,089, Franklin High Income Fund 5,463,146 37,994,649 41,410, SPDR Gold Trust 316,800 37,023,244 41,038, Bissett All Canadian Focus Fund 2,831,431 37,438,639 36,383, ishares Barclays 20+ Year Treasury Bond Fund 287,900 29,093,454 31,186, Templeton Emerging Markets Fund 2,022,581 26,098,152 26,455, Franklin Flex Cap Growth Fund 1,742,211 18,405,812 20,052, Franklin U.S. Core Equity Fund 2,342,781 17,936,662 19,679, ishares DEX Universe Bond Index Fund 647,100 19,282,118 19,244, Mutual Beacon Fund 3,812,911 24,596,940 18,568, Franklin World Growth Fund 2,091,647 18,676,753 18,260, Bissett Small Cap Fund 261,528 15,315,991 17,878, FTIF Franklin Mutual European Fund 880,000 16,283,113 15,721, ishares S&P/TSX 60 Index Fund 694,400 12,177,409 11,540, Franklin Global Real Estate Fund 1,736,382 13,293,602 10,713, Templeton Global Smaller Companies Fund 374,880 7,820,000 7,632, ishares MSCI Japan Index Fund 600,700 5,983,907 5,883, Mutual Discovery Fund 357,228 4,827,606 4,979, Franklin U.S. Rising Dividends Fund 202,816 5,002,500 4,964, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. Standard Life 157

158 Specific note to interim unaudited financial statements Ideal FT Quotential Balanced Income Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying fund. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $445,000 (December 31, $185,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 158 Standard Life

159 Ideal FT Quotential Balanced Growth Portfolio Statement of net assets ASSETS Investments, at fair value* 6,116,807 2,581,373 Subscriptions receivable 20,000 33,086 Receivable from investments sold 1,226 - Total assets 6,138,033 2,614,459 LIABILITIES Bank indebtedness 21,226 - Redemptions payable Management fees payable 7, Other liabilities Total liabilities 29, NET ASSETS 6,108,652 2,614,027 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 6,134,217 2,534,000 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 67, Audit fees 1,883 1,988 Other operating expenses 7-69,519 2,326 Less: expenses absorbed by the manager (1,890) (1,988) Total expenses 67, NET INVESTMENT INCOME (LOSS) (67,629) (338) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 7, Change in unrealized appreciation (depreciation) in value of investments (64,783) 2,811 NET GAIN (LOSS) ON INVESTMENTS (57,578 ) 3,006 ASSETS FROM OPERATIONS (125,207) 2,668 Increase (decrease) in net assets from operations per unit 75/100 Series (0.33) /100 Platinum Series (0.47) N/A 100/100 Series (0.39) /100 Platinum Series (0.17 ) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (125,207) 2,668 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 3,836,880 41,355 Payments for units redeemed (217,048 ) - Net capital unit transactions 3,619,832 41,355 ASSETS FOR THE PERIOD 3,494,625 44,023 NET ASSETS - beginning of period 2,614,027 - NET ASSETS - end of period 6,108,652 44,023 Standard Life 159

160 Ideal FT Quotential Balanced Growth Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Quotential Balanced Growth Portfolio, Series O 850,738 6,134,217 6,116,807 TOTAL INVESTMENTS % 6,134,217 6,116,807 Other assets, less liabilities (0.13%) (8,155) (8,155) NET ASSETS % 6,126,062 6,108,652 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($), Average Fair % Net assets of Issuer / Interest rate / Maturity date shares or units cost ($) value ($) underlying fund Quotential Balanced Growth Portfolio Bissett Bond Fund 37,233, ,999, ,646, Bissett Canadian Equity Fund 3,166, ,936, ,026, Franklin Templeton Canadian Core Equity Fund 30,440, ,472, ,959, Templeton Global Bond Fund 19,095, ,617, ,002, Franklin Templeton Canadian Large Cap Fund 20,234, ,804, ,137, Bissett All Canadian Focus Fund 12,793, ,427, ,392, Franklin Strategic Income Fund 19,401, ,257, ,524, SPDR Gold Trust 905, ,147, ,234, Franklin Flex Cap Growth Fund 8,689,833 91,453, ,019, Franklin U.S. Core Equity Fund 11,830,978 99,073,484 99,380, Franklin World Growth Fund 9,679,589 92,772,967 84,502, Mutual Beacon Fund 17,245, ,941,565 83,987, Bissett Small Cap Fund 1,139,879 67,714,576 77,922, Franklin High Income Fund 9,888,212 68,016,936 74,952, ishares Barclays 20+ Year Treasury Bond Fund 531,800 53,752,783 57,606, FTIF Templeton Asian Growth Fund 1,739,952 49,074,209 49,754, FTIF Franklin Mutual European Fund 2,753,943 50,893,863 49,201, Franklin Global Real Estate Fund 7,760,725 54,301,791 47,883, ishares S&P/TSX 60 Index Fund 2,777,800 48,713,133 46,167, Royal Bank of Canada, Term Deposit, 0.450%, 2010/07/02 44,135,000 44,135,000 44,135, National Bank of Canada, Term Deposit, 0.450%, 2010/07/02 44,130,000 44,130,000 44,130, Franklin MENA Fund 3,845,694 37,605,789 37,803, Templeton Global Smaller Companies Fund 1,765,699 31,945,901 35,949, ishares DEX Universe Bond Index Fund 1,180,200 35,180,960 35,099, Mutual Discovery Fund 2,411,523 34,436,405 33,616, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. 160 Standard Life

161 Specific note to interim unaudited financial statements Ideal FT Quotential Balanced Growth Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying fund. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $612,000 (December 31, $258,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. Standard Life 161

162 Ideal FT Quotential Global Balanced Portfolio Statement of net assets ASSETS Investments, at fair value* 440,289 89,286 Receivable from investments sold - 87 Total assets 440,289 89,373 LIABILITIES Bank indebtedness - 87 Management fees payable Other liabilities 27 - Total liabilities NET ASSETS 439,724 89,273 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 443,954 83,661 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 3, Audit fees 1,884 1,988 5,490 2,285 Less: expenses absorbed by the manager (1,884) (1,988) Total expenses 3, NET INVESTMENT INCOME (LOSS) (3,606) (297) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 65 (1) Change in unrealized appreciation (depreciation) in value of investments (9,290) 1,925 NET GAIN (LOSS) ON INVESTMENTS (9,225) 1,924 ASSETS FROM OPERATIONS (12,831) 1,627 Increase (decrease) in net assets from operations per unit 75/100 Series (0.63) /100 Platinum Series (0.17 ) N/A 100/100 Series (0.86) /100 Platinum Series (0.19 ) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (12,831) 1,627 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 363,282 20,000 Payments for units redeemed - - Net capital unit transactions 363,282 20,000 ASSETS FOR THE PERIOD 350,451 21,627 NET ASSETS - beginning of period 89,273 - NET ASSETS - end of period 439,724 21, Standard Life

163 Ideal FT Quotential Global Balanced Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Quotential Global Balanced Portfolio, Series O 51, , ,289 TOTAL INVESTMENTS % 443, ,289 Other assets, less liabilities (0.13%) (565) (565) NET ASSETS % 443, ,724 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($), Average Fair % Net assets of Issuer / Interest rate / Maturity date shares or units cost ($) value ($) underlying fund Quotential Global Balanced Portfolio Bissett Bond Fund 694,559 9,848,470 10,029, Franklin Templeton Global Aggregate Bond Fund 472,409 4,419,403 4,426, Franklin Strategic Income Fund 531,173 3,993,220 4,148, Templeton Global Bond Fund 274,282 3,207,350 3,274, Franklin Flex Cap Growth Fund 270,857 3,164,777 3,117, Franklin U.S. Core Equity Fund 368,671 2,751,491 3,096, Mutual Beacon Fund 536,152 2,791,638 2,611, Templeton Emerging Markets Fund 195,095 2,359,985 2,551, SPDR Gold Trust 15,700 1,859,694 2,033, Bissett Canadian Equity Fund 23,637 1,622,176 1,963, Franklin High Income Fund 228,395 1,663,135 1,731, FTIF Franklin Mutual European Fund 88,811 1,626,020 1,586, Franklin Templeton Canadian Core Equity Fund 187,417 1,267,566 1,428, Franklin World Growth Fund 155,348 1,445,391 1,356, National Bank of Canada, Term Deposit, 0.450%, 2010/07/02 1,210,000 1,210,000 1,210, Franklin Templeton Canadian Large Cap Fund 132,457 1,238,900 1,205, FTIF Templeton Asian Growth Fund 38,376 1,085,091 1,097, Franklin Global Real Estate Fund 169, ,176 1,045, ishares MSCI Japan Index Fund 100,500 1,001, , ishares Barclays 20+ Year Treasury Bond Fund 8, , , Franklin U.S. Rising Dividends Fund 37, , , FTIF Franklin European Small-Mid Cap Growth Fund 30, , , Bissett All Canadian Focus Fund 51, , , Templeton Global Smaller Companies Fund 28, , , SPDR S&P 500 ETF Trust 4, , , The top holdings of the underlying fund come from unaudited information provided by the external fund manager. Standard Life 163

164 Specific note to interim unaudited financial statements Ideal FT Quotential Global Balanced Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying fund. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $44,000 (December 31, $9,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. 164 Standard Life

165 Ideal FT Quotential Growth Portfolio Statement of net assets ASSETS Investments, at fair value* 2,262, ,786 Subscriptions receivable ,933 Total assets 2,262, ,719 LIABILITIES Redemptions payable 1,336 - Management fees payable 2, Other liabilities Total liabilities 4, NET ASSETS 2,258, ,663 Net assets per unit (note 3) 75/100 Series /100 Platinum Series /100 Series /100 Platinum Series *Investments, at average cost 2,318, ,481 Statement of operations for the periods ended June 30 (note 1) EXPENSES (note 5) Management fees 23, Audit fees 1,883 1,988 Other operating expenses 2-25,464 2,293 Less: expenses absorbed by the manager (1,885) (1,988) Total expenses 23, NET INVESTMENT INCOME (LOSS) (23,579) (305) 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 (66,899) 2,686 NET GAIN (LOSS) ON INVESTMENTS (65,910 ) 2,687 ASSETS FROM OPERATIONS (89,489) 2,382 Increase (decrease) in net assets from operations per unit 75/100 Series (0.79) /100 Platinum Series 0.33 N/A 100/100 Series (0.65) /100 Platinum Series (0.40) N/A Statement of changes in net assets for the periods ended June 30 (note 1) ASSETS FROM OPERATIONS (89,489) 2,382 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 2,036,904 20,000 Payments for units redeemed (131,506 ) - Net capital unit transactions 1,905,398 20,000 ASSETS FOR THE PERIOD 1,815,909 22,382 NET ASSETS - beginning of period 442,663 - NET ASSETS - end of period 2,258,572 22,382 Standard Life 165

166 Ideal FT Quotential Growth Portfolio Statement of portfolio investments as at June 30, 2010 Average Fair Issuer Units cost ($) value ($) Quotential Growth Portfolio, Series O 344,880 2,318,009 2,262,415 TOTAL INVESTMENTS % 2,318,009 2,262,415 Other assets, less liabilities (0.17%) (3,843) (3,843) NET ASSETS % 2,314,166 2,258,572 Top Holdings of the Underlying Fund as at June 30, 2010 (unaudited) Par value ($), Average Fair % Net assets of Issuer / Interest rate / Maturity date shares or units cost ($) value ($) underlying fund Quotential Growth Portfolio Templeton Emerging Markets Fund 3,495,585 42,496,174 45,722, Bissett Canadian Equity Fund 541,144 40,171,179 44,947, Bissett Bond Fund 2,985,211 41,964,798 43,106, Franklin Templeton Canadian Core Equity Fund 5,414,856 43,819,388 41,261, Franklin Flex Cap Growth Fund 2,932,298 31,329,326 33,750, Franklin Templeton Canadian Large Cap Fund 3,690,657 33,826,107 33,584, Franklin U.S. Core Equity Fund 3,991,701 33,909,861 33,530, Mutual Beacon Fund 6,440,695 43,120,042 31,366, SPDR Gold Trust 174,300 20,536,190 22,578, Franklin World Growth Fund 2,374,884 18,957,466 20,732, Bissett All Canadian Focus Fund 1,595,132 19,815,120 20,497, Templeton Global Bond Fund 1,667,523 19,347,929 19,910, FTIF Franklin Mutual European Fund 857,944 15,725,297 15,327, Bissett Small Cap Fund 202,651 11,688,067 13,853, Mutual Discovery Fund 888,466 12,866,252 12,385, Franklin Strategic Income Fund 1,566,802 13,224,389 12,236, Franklin Global Real Estate Fund 1,967,569 14,650,936 12,139, Franklin Templeton Canadian Small Cap Fund 976,597 10,937,944 11,728, ishares MSCI Japan Index Fund 1,002,000 9,981,474 9,813, Royal Bank of Canada, Term Deposit, 0.450%, 2010/07/02 9,135,000 9,135,000 9,135, Templeton Global Smaller Companies Fund 430,310 8,221,275 8,761, Franklin U.S. Rising Dividends Fund 350,489 8,644,000 8,579, FTIF Franklin European Small-Mid Cap Growth Fund 293,376 8,140,293 8,054, ishares DEX Universe Bond Index Fund 198,700 5,916,293 5,909, SPDR S&P 500 ETF Trust 49,600 5,615,057 5,450, The top holdings of the underlying fund come from unaudited information provided by the external fund manager. 166 Standard Life

167 Specific note to interim unaudited financial statements Ideal FT Quotential Growth Portfolio 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. Direct risk Market risk The Fund is exposed directly to market risk through its investments in the underlying fund. As at June 30, 2010, had the price of the underlying fund increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $226,000 (December 31, $33,000). In practice, actual results may differ materially from this sensitivity analysis. Indirect risks Under the fund of fund strategy, the Fund may be exposed indirectly to interest rate risk, currency risk, credit risk or liquidity risk depending on the investments held by the underlying fund. Standard Life 167

168 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Establishment of the Funds Inception and financial reporting dates The Ideal Segregated Funds (the Funds ) are offered through a variable annuity contract issued by The Standard Life Assurance Company of Canada (the Company ) under the authority of the Insurance Companies Act (Canada). The assets of the Funds are held by the Company on behalf of the policyholders, and are segregated from other assets of the Company. The Funds are not separate legal entities. The Funds were established as follows: Date established Ideal Money Market Fund October 1, 1993 Ideal Canadian Bond Fund December 31, 1986 Ideal Corporate High Yield Bond Fund October 10, 2000 Ideal International Bond Fund October 10, 2000 Ideal Income Balanced Fund December 7, 1998 Ideal Russell Retirement Essentials Portfolio January 12, 2009 Ideal Monthly Income Fund October 10, 2000 Ideal Balanced Fund December 31, 1986 Ideal Trimark Balanced Fund January 12, 2009 Ideal AIM Canadian Balanced Fund January 12, 2009 Ideal Fidelity Canadian Balanced Fund January 12, 2009 Ideal Fidelity Canadian Asset Allocation Fund January 12, 2009 Ideal Russell Diversified Monthly Income Portfolio January 12, 2009 Ideal Global Monthly Income Fund October 15, 2007 Ideal Templeton Global Income Fund January 12, 2009 Ideal Trimark Global Balanced Fund January 12, 2009 Ideal Fidelity Global Asset Allocation Fund January 12, 2009 Ideal Dividend Income Fund October 15, 2007 Ideal Canadian Dividend Growth Fund December 21, 1998 Ideal Canadian Equity Fund December 31, 1986 Ideal Canadian Equity Focus Fund October 15, 2007 Ideal Canadian Small Cap Fund October 10, 2000 Ideal U.S. Dividend Growth Fund October 15, 2007 Ideal U.S. Equity Fund December 21, 1998 Ideal U.S. Equity Focus Fund October 15, 2007 Ideal U.S. Mid Cap Fund October 15, 2007 Ideal Global Dividend Growth Fund January 10, 2005 Ideal Global Equity Fund October 10, 2000 Ideal Global Equity Focus Fund October 15, 2007 Ideal European Equity Fund October 15, 2007 Ideal International Equity Fund December 21, 1998 Ideal Conservative Portfolio January 6, 2003 Ideal Moderate Portfolio January 6, 2003 Ideal Growth Portfolio January 6, 2003 Ideal Dividend Growth & Income Portfolio January 12, 2009 Ideal Aggressive Portfolio January 6, 2003 Ideal Global Portfolio January 12, 2009 Ideal Select Conservative Portfolio January 12, 2009 Ideal Select Moderate Portfolio January 12, 2009 Ideal Select Growth Portfolio January 12, 2009 Ideal Select Dividend Growth & Income Portfolio January 12, 2009 Date established Ideal Select Aggressive Portfolio January 12, 2009 Ideal Select Global Portfolio January 12, 2009 Ideal LifePoints Balanced Income Portfolio January 12, 2009 Ideal LifePoints Balanced Portfolio January 12, 2009 Ideal LifePoints Balanced Growth Portfolio January 12, 2009 Ideal LifePoints Long-Term Growth Portfolio January 12, 2009 Ideal FT Quotential Diversified Income Portfolio January 12, 2009 Ideal FT Quotential Balanced Income Portfolio January 12, 2009 Ideal FT Quotential Balanced Growth Portfolio January 12, 2009 Ideal FT Quotential Global Balanced Portfolio January 12, 2009 Ideal FT Quotential Growth Portfolio January 12, 2009 For Funds established during the periods ended June 30, 2010 and 2009, the statements of operations and changes in net assets relate to the period from inception to June Summary of significant accounting policies These financial statements, prepared in accordance with Canadian generally accepted accounting principles ( GAAP ), include estimates and assumptions made by management that may affect the reported amounts of assets, liabilities, income and expenses during the period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Funds: (a) Valuation of investments Section 3855 of the Canadian Institute of Chartered Accountants Handbook, Financial Instruments Recognition and Measurement requires that investments be valued at fair value, which in an active market will normally be the last bid price for the security ( GAAP NAV ). Pursuant to the practice established by the investment fund industry, the Funds calculate the daily net asset values for purposes other than financial reporting, such as for unitholder transactions, using the last traded price of the day as fair value ( Trading NAV ). A reconciliation of the net assets per unit between the Trading NAV and the GAAP NAV is provided in note 3. Investments are categorized as held for trading in accordance with Section Equities Equities are recorded at fair value, which is determined by the closing bid price on the recognized stock exchange on which the equity is listed or principally traded on the day of valuation. Equities not listed on any recognized public stock exchange are valued at the price estimated by the investment fund manager to be the fair value. The difference between the fair value of equities and their average cost represents the unrealized appreciation (depreciation) in value of investments. The current period change in unrealized appreciation (depreciation) in value of investments is included in the statement of operations. Investments in underlying funds Investments in underlying funds are valued at the closing net asset value per unit of each underlying fund s series on the day of valuation. The difference between the fair value of the units held and their average cost represents the unrealized appreciation (depreciation) in value of investments. The current period change in unrealized appreciation (depreciation) in value of investments is included in the statement of operations. 168 Standard Life

169 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Summary of significant accounting policies (continued) (a) Valuation of investments (continued) Bonds (including asset-backed securities) Bonds are recorded at fair value determined by the bid quotations obtained from one or more recognized investment dealers on the day of valuation. The difference between the fair value of securities and their average cost represents the unrealized appreciation (depreciation) in value of investments. The current period change in unrealized appreciation (depreciation) in value of investments is included in the statement of operations. Short-term investments Short-term investments are recorded at fair value, which is determined by taking the bid quotation obtained from one or more recognized investment dealers on the day of valuation. The difference between the fair value of short-term investments and their average cost represents the unrealized appreciation (depreciation) in value of investments. The current period change in unrealized appreciation (depreciation) on short-term investments is included in interest income. (b) Investment transactions Investment transactions are accounted for on a trade date basis. The cost of investments is determined using the average cost method, which excludes transaction costs. Transaction costs, such as brokerage commissions, incurred on the purchase and sale of investments by the Funds are disclosed separately in the statement of operations. (c) Income recognition Interest income and expenses are accrued daily. Dividend income is recorded on the ex-dividend date. Distribution income from the underlying funds can include dividends, interest, capital gains and return of capital, the proceeds of which are used to purchase additional units in the underlying funds. Distribution income is recorded at the date of the distribution by the underlying funds. Investment income and realized and unrealized capital gains and losses are allocated daily on a pro rata basis to each series based on the total net assets of each series to the total net assets of the Fund. (d) Foreign currency translations The fair value of investments and other assets and liabilities denominated in foreign currencies is translated into Canadian dollars at the exchange rates on the day of valuation. Purchases and sales of investments, income and expenses, denominated in foreign currencies, are translated into Canadian dollars at the rates of exchange prevailing on the dates of such transactions. The Funds do not separately report the effect of changes in foreign exchange rates from changes in fair value of securities held. Such changes are included in net realized gain (loss) on investments and in change in unrealized appreciation (depreciation) in value of investments. (e) Other assets and liabilities Financial assets and financial liabilities recorded at cost are shortterm in nature and therefore their carrying value approximates fair value. (f) Forward foreign currency contracts The Funds may enter into forward foreign currency contracts for hedging or non-hedging purposes where such activity is consistent with their investment objectives. This can include the hedging of all, or a portion of, the currency exposure of an existing investment or group of investments. The value of a forward foreign currency contract is the gain or loss that would be realized if the contract was closed out or delivered on the day of valuation. Fluctuations in the value of forward foreign currency contracts are recorded as investments at fair value in the statement of net assets, and the current period change in unrealized appreciation (depreciation) in value of investments is recorded in the statement of operations. The gain or loss arising from the difference between the carrying value of the forward foreign currency contracts and the value of such contracts at close or delivery is realized and recorded as net realized gain (loss) on forward foreign currency contracts. (g) Futures contracts The Funds may enter into futures contracts where such activity is consistent with their investment objectives and permitted by the respective authorities. Futures contracts are valued at the gain or loss that would arise as a result of closing the position at the valuation date. The unrealized gain or loss is recorded in the statement of net assets as investments at fair value and is recorded as change in unrealized appreciation (depreciation) in value of investments during the period in the statement of operations. The gain or loss arising from the difference between the carrying value of the futures contract and the value of such contract at the close or delivery is realized and recorded as net realized gain (loss) on futures contracts. The initial margin on deposit with brokers relating to futures contracts is recorded in the statement of net assets as cash margin. Any change in the margin requirement is settled daily on the following day. (h) Currency legend The following is a list of abbreviations used in the interim unaudited financial statements: AUD australian dollar BRL brazilian real EUR euro CHF swiss franc HKD Hong Kong dollar GBP pound sterling JPY japanese yen IDR indonesian rupiah NOK norwegian krone MXN mexican peso USD United States dollar SEK swedish krone (i) Increase (decrease) in net assets from operations per unit The increase (decrease) in net assets from operations per unit of each series represents the increase (decrease) in net assets from operations of each series, divided by the daily average number of units outstanding of each series for the period. (j) Future changes in accounting policies The Canadian Accounting Standards Board ( AcSB ) has confirmed its plan to adopt International Financial Reporting Standards ( IFRS ) for publicly accountable enterprises (which include investment funds and other reporting issuers), as published by the International Accounting Standards Board. The Funds will adopt IFRS in accordance with the AcSB s plan. Standard Life 169

170 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Reconciliation of Trading NAV to GAAP NAV The reconciliation between the Trading NAV and the GAAP NAV is presented below, except where a Fund invests only in other funds in which case the Trading NAV equals the GAAP NAV. Net assets per unit as at Net assets per unit as at June 30, 2010 December 31, 2009 June 30, 2010 December 31, 2009 Trading GAAP Trading GAAP Trading GAAP Trading GAAP NAV ($) NAV ($) NAV ($) NAV ($) NAV ($) NAV ($) NAV ($) NAV ($) Ideal Money Market Fund 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 Ideal Canadian Bond Fund 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 Ideal Income Balanced Fund 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 Fund units Ideal Monthly Income Fund 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 Ideal Balanced Fund 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 Ideal Canadian Equity Fund 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 The Company considers the unitholders equity, represented by the net assets of the Funds, as the Funds capital. Each Fund s capital is managed in accordance with its investment objectives. A net asset value is calculated for each series of units of the Funds. The net asset value of a particular series of units is computed by calculating the value of the series proportionate share of the assets and liabilities of the Fund common to all series less the liabilities of the Fund attributable only to that series. The net asset value per unit of each series is calculated by dividing the value of the net assets of each series of the Funds by the number of units of the applicable series then outstanding as of the close of each business day. The units of the Funds are sold and redeemable at the current net asset value per unit at the option of the unitholder. The Funds are authorized to issue an unlimited number of units of each series, which rank equally in all respects to a pro rata interest in the net assets of each series of each Fund. Changes in units issued for the periods ended June 30 are summarized as follows: Units, Units issued Units Units, beginning of period for cash redeemed end of period Ideal Money Market Fund Back-end Load Option ,013, ,779 (1,587,512) 3,637, ,497,886 2,702,665 (2,900,239) 7,300,312 No-load Option ,405 68,067 (311,445) 699, ,767,941 1,401,980 (1,438,916) 1,731,005 No-load Option with Resets ,430 7,518 (67,227) 260, , ,244 (100,484) 544,802 Platinum No-load Option ,091 8,949 (59,746) 118, , ,514 (129,488) 338,515 75/100 Series , ,743 (431,169) 482, ,550 (22,902) 16,648 75/100 Platinum Series ,000 51,696 (21,047) 31, /100 Series , ,966 (613,057) 636, ,787 (46,480) 194, /100 Platinum Series ,739 - (4,739) 1, Standard Life

171 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Fund units (continued) Units, Units issued Units Units, beginning of period for cash redeemed end of period Ideal Money Market Fund II Back-end Load Option ,253,419 1,551,444 (867,589) 1,937, ,687 (330) 229,357 No-load Option ,041 2,309,576 (1,983,536) 1,249, ,795 (40,653) 207,142 No-load Option with Resets , ,954 (202,674) 398, ,699 (600) 34,099 Platinum No-load Option , ,772 (215,703) 71, ,206-3,206 Ideal Canadian Bond Fund Back-end Load Option ,859, ,484 (304,692) 1,745, ,835, ,341 (359,223) 1,915,891 No-load Option ,403 27,990 (35,793) 141, ,459 29,009 (35,357) 137,111 No-load Option with Resets ,580 35,132 (27,305) 131, ,165 27,789 (7,071) 100,883 Platinum No-load Option ,027 26,786 (9,453) 64, , (2,147) 44,287 75/100 Series , ,905 (52,643) 704, ,178 (161) 15,017 75/100 Platinum Series ,000 21,951-22, /100 Series , ,209 (68,248) 607, ,144 (12,328) 52, /100 Platinum Series ,863 28,687 (9,863) 29,687 Ideal Corporate High Yield Bond Fund Back-end Load Option ,139, ,171 (302,824) 2,264, ,611, ,246 (296,528) 1,977,423 No-load Option ,114 63,753 (98,439) 336, , ,639 (56,336) 300,483 No-load Option with Resets ,519 41,203 (20,499) 174, ,223 62,234 (16,265) 109,192 Platinum No-load Option ,326 62,834 (33,684) 205, ,765 30,573 (723) 108,615 75/100 Series , ,755 (31,637) 354, ,265 (105) 28,160 75/100 Platinum Series ,000 50,427 (217) 51, /100 Series , ,305 (58,248) 609, ,117 (1,733) 186, /100 Platinum Series ,005 17,765 (24,676) 50,094 Ideal International Bond Fund Back-end Load Option ,607 60,799 (104,304) 295, , ,668 (685,242) 385,469 No-load Option ,891 7,962 (8,296) 48, ,325 17,755 (46,656) 55,424 No-load Option with Resets , (3,317) 20, ,621 17,625 (43,791) 23,455 Platinum No-load Option , , ,494-2,477 75/100 Series ,586 3,658 (1,751) 16, ,349 (185) 8,164 75/100 Platinum Series , , /100 Series ,822 6,530 (5,770) 10, ,238-4, /100 Platinum Series , ,000 Ideal Income Balanced Fund Back-end Load Option ,844, ,399 (757,934) 6,787, ,704, ,265 (971,428) 7,198,277 No-load Option , ,052 (80,379) 677, , ,619 (98,246) 691,556 No-load Option with Resets ,437 59,963 (11,745) 305, ,034 39,472 (7,103) 158,403 Platinum No-load Option ,213 13,608 (7,264) 152, ,219 18,003 (3,496) 112,726 75/100 Series , ,689 (26,494) 507, ,166-14,166 75/100 Platinum Series ,000 59,111-60, /100 Series , ,737 (39,664) 688, ,065-17, /100 Platinum Series ,355 9,211 (5,355) 10,211 Standard Life 171

172 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Fund units (continued) Units, Units issued Units Units, beginning of period for cash redeemed end of period Ideal Russell Retirement Essentials Portfolio 75/100 Series ,667 35,434 (570) 36, ,000-1,000 75/100 Platinum Series , , /100 Series ,323 11,455 (128) 18, ,610-3, /100 Platinum Series , ,000 Ideal Monthly Income Fund Back-end Load Option ,370,065 1,922,706 (1,205,858) 12,086, ,495, ,528 (1,246,995) 11,127,032 No-load Option ,231, ,585 (194,522) 1,420, ,188, ,989 (184,291) 1,153,070 No-load Option with Resets , ,262 (59,370) 744, , ,267 (32,454) 436,024 Platinum No-load Option , ,264 (86,633) 482, ,369 89,674 (10,024) 200,019 75/100 Series , ,133 (61,329) 913, ,622 (4,764) 50,858 75/100 Platinum Series , , , /100 Series ,613 1,275,815 (86,557) 1,597, ,238 (6) 78, /100 Platinum Series , ,843 (25) 108,253 Ideal Balanced Fund Back-end Load Option ,809, ,462 (790,054) 6,243, ,910, ,049 (882,523) 7,310,735 No-load Option ,382 33,303 (42,051) 285, ,049 40,295 (96,728) 337,616 No-load Option with Resets ,728 21,703 (30,953) 332, ,431 25,329 (12,010) 360,750 Platinum No-load Option ,639 3,003 (8,232) 45, ,799 10,147 (6,958) 32,988 75/100 Series , ,758 (21,184) 203, ,747 (52) 6,695 75/100 Platinum Series ,000 65,927-66, /100 Series ,316, ,960 (99,241) 1,756, ,093 (4,211) 659, /100 Platinum Series ,880 2,310 (4,880) 3,310 Ideal Trimark Balanced Fund 75/100 Series ,661 26,197 (4,320) 27, ,268-3,268 75/100 Platinum Series , , /100 Series ,697 35,392 (1,657) 72, ,904 (272) 28, /100 Platinum Series , ,000 Ideal AIM Canadian Balanced Fund 75/100 Series ,889 23,811-28, ,843 (217) 13,626 75/100 Platinum Series , , /100 Series ,971 22,163 (1,316) 36, ,504-12, /100 Platinum Series , ,000 Ideal Fidelity Canadian Balanced Fund 75/100 Series , ,772 (13,162) 265, ,998-12,998 75/100 Platinum Series , , /100 Series , ,947 (21,926) 528, ,806 (365) 23, /100 Platinum Series , , Standard Life

173 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Fund units (continued) Units, Units issued Units Units, beginning of period for cash redeemed end of period Ideal Fidelity Canadian Asset Allocation Fund 75/100 Series , ,314 (35,349) 826, ,189 (100) 20,089 75/100 Platinum Series ,910 24,741-78, /100 Series , ,453 (87,503) 1,022, ,043-17, /100 Platinum Series ,000 73,499-74,499 Ideal Russell Diversified Monthly Income Portfolio 75/100 Series ,390 14,175-18, ,000-1,000 75/100 Platinum Series ,000 2,487 (2,487) 1, /100 Series ,955 35,490 (936) 36, ,000-1, /100 Platinum Series , ,000 Ideal Global Monthly Income Fund Back-end Load Option ,918 18,812 (9,936) 98, ,542 17,954 (10,701) 97,795 No-load Option with Resets , (100) 3, , ,216 Platinum No-load Option , (1,181) 8, ,564 1,667 (1,414) 9,817 75/100 Series ,444 5,886 (345) 7, ,000-1,000 75/100 Platinum Series , , /100 Series ,407 25,233 (4,405) 23, ,279-1, /100 Platinum Series , ,000 Ideal Templeton Global Income Fund 75/100 Series ,000 4,782-5, ,000-1,000 75/100 Platinum Series , , /100 Series , (947) 4, ,828-1, /100 Platinum Series , ,000 Ideal Trimark Global Balanced Fund 75/100 Series ,305 10,024 (112) 17, ,207-1,207 75/100 Platinum Series , , /100 Series ,763 5,480-9, ,249-1, /100 Platinum Series , ,000 Ideal Fidelity Global Asset Allocation Fund 75/100 Series ,768 56,934-63, ,871-2,871 75/100 Platinum Series , , /100 Series ,547 16,967 (1,623) 27, ,406-7, /100 Platinum Series , ,000 Standard Life 173

174 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Fund units (continued) Units, Units issued Units Units, beginning of period for cash redeemed end of period Ideal Dividend Income Fund Back-end Load Option , ,338 (70,179) 370, ,214 78,704 (32,082) 168,836 No-load Option with Resets ,633 24,451 (16,133) 123, ,355 11,409 (2,405) 15,359 Platinum No-load Option ,883 54,876-88, ,846 1,916 (667) 12,095 75/100 Series , ,853 (17,429) 174, ,219 (39) 13,180 75/100 Platinum Series ,000 3,848-4, /100 Series , ,260 (6,949) 231, ,692-23, /100 Platinum Series ,764 14,072-23,836 Ideal Canadian Dividend Growth Fund Back-end Load Option ,846,583 1,370,259 (2,244,943) 20,971, ,247,188 1,688,756 (3,030,022) 22,905,922 No-load Option ,276, ,883 (288,098) 2,220, ,346, ,705 (291,578) 2,322,882 No-load Option with Resets ,631, ,126 (172,655) 1,594, ,518, ,605 (64,287) 1,595,459 Platinum No-load Option , ,295 (91,341) 610, ,756 86,998 (1,625) 490,129 75/100 Series , ,719 (128,677) 1,069, ,862 (4,174) 71,688 75/100 Platinum Series ,000 95,902-96, /100 Series ,820,477 1,610,449 (201,206) 3,229, ,092 (9,721) 670, /100 Platinum Series , ,491 (8,254) 103,221 Ideal Canadian Equity Fund Back-end Load Option ,781, ,739 (386,255) 3,555, ,346, ,068 (509,475) 4,057,402 No-load Option ,435 24,124 (15,720) 170, ,878 22,285 (15,020) 163,143 No-load Option with Resets ,211 8,980 (16,236) 171, ,603 22,401 (9,634) 177,370 Platinum No-load Option ,775 9,389 (6,775) 39, , (285) 23,551 75/100 Series , ,326 (17,782) 264, ,645 (257) 20,388 75/100 Platinum Series ,000 21,972-22, /100 Series , ,071 (15,773) 523, ,724 (1,340) 183, /100 Platinum Series ,000 55,276 (2,300) 53,976 Ideal Canadian Equity Focus Fund Back-end Load Option , ,017 (278,454) 795, , ,922 (63,799) 874,965 No-load Option with Resets ,645 24,250 (129) 32, ,177 18,223-26,400 Platinum No-load Option ,548 2,358-23, ,843 2,706 (1,001) 21,548 75/100 Series ,871 47,033 (5,185) 70, ,916-4,916 75/100 Platinum Series , , /100 Series ,999 78,327 (10,265) 78, ,128-3, /100 Platinum Series ,000 2,259 (26) 3, Standard Life

175 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Fund units (continued) Units, Units issued Units Units, beginning of period for cash redeemed end of period Ideal Canadian Small Cap Fund Back-end Load Option ,277, ,984 (561,204) 4,161, ,538, ,106 (483,531) 4,369,493 No-load Option ,570 38,098 (38,413) 382, ,310 29,440 (28,267) 382,483 No-load Option with Resets ,362 27,884 (9,295) 188, ,564 29,956 (10,576) 171,944 Platinum No-load Option ,722 21,169 (9,327) 115, ,323 2,073 (6,840) 88,556 75/100 Series , ,127 (25,269) 232, ,971 (475) 13,496 75/100 Platinum Series ,000 20,053-21, /100 Series , ,987 (58,761) 255, ,803-21, /100 Platinum Series ,813 73,584-76,397 Ideal U.S. Dividend Growth Fund Back-end Load Option ,288 18,100 (45,264) 88, ,483 34,037 (30,559) 96,961 No-load Option with Resets , (102) 7, ,256 15,558 (446) 21,368 Platinum No-load Option ,404 3,619-16, ,964 - (1,000) 9,964 75/100 Series ,367 15,641-24, ,000-1,000 75/100 Platinum Series ,000 2,297-3, /100 Series ,699 4,933 (140) 9, ,287-2, /100 Platinum Series , ,000 Ideal U.S. Equity Fund Back-end Load Option ,512,139 71,064 (268,820) 2,314, ,956, ,914 (306,270) 2,763,944 No-load Option ,191 11,348 (25,810) 154, ,605 7,710 (23,529) 166,786 No-load Option with Resets ,623 8,421 (24,205) 169, ,744 17,441 (5,109) 191,076 Platinum No-load Option ,943 - (6,577) 77, ,302 4,416 (1,565) 78,153 75/100 Series ,166 11,665 (629) 13, ,120-1,120 75/100 Platinum Series ,000 1,348-2, /100 Series ,598 10,328 (541) 16, ,140-1, /100 Platinum Series , ,000 Ideal U.S. Equity Focus Fund Back-end Load Option ,830 9,605 (21,127) 31, ,051 5,349 (13,500) 33,900 No-load Option with Resets , (132) 4, ,025 16,898 (69) 20,854 Platinum No-load Option , , , ,000 75/100 Series , , ,149-1,149 75/100 Platinum Series , , /100 Series ,412 9,844-14, ,000-1, /100 Platinum Series , ,000 Standard Life 175

176 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Fund units (continued) Units, Units issued Units Units, beginning of period for cash redeemed end of period Ideal U.S. Mid Cap Fund Back-end Load Option ,017 5,575 (1,300) 15, ,249 5,703 (186) 9,766 No-load Option with Resets , , ,110 8,675 (90) 11,695 Platinum No-load Option , , ,257 3,365-25,622 75/100 Series ,000 2,972-3, ,000-1,000 75/100 Platinum Series , , /100 Series ,388 5,703 (58) 9, ,000-1, /100 Platinum Series , ,000 Ideal Global Dividend Growth Fund Back-end Load Option ,572, ,282 (691,882) 4,078, ,022, ,258 (624,390) 4,760,670 No-load Option ,865 23,806 (50,292) 428, ,785 68,123 (55,966) 466,942 No-load Option with Resets ,394 12,932 (46,085) 334, ,176 12,967 (47,181) 392,962 Platinum No-load Option ,566 20,503 (31,217) 138, ,117 13,737 (1,244) 130,610 75/100 Series ,524 64,540 (1,074) 110, ,970 (5,674) 10,296 75/100 Platinum Series ,000 8,527-9, /100 Series , ,663 (14,503) 279, ,608 (3) 38, /100 Platinum Series ,427 1,896 (3,427) 2,896 Ideal Global Equity Fund Back-end Load Option ,466 88,142 (87,326) 863, ,028,569 50,374 (173,741) 905,202 No-load Option ,975 25,003 (17,691) 166, ,501 46,222 (15,168) 141,555 No-load Option with Resets ,518 14,131 (8,791) 170, ,177 68,230 (4,288) 127,119 Platinum No-load Option ,538 19,888-38, ,120 10,007-11,127 75/100 Series ,811 16,554 (4,333) 15, ,000-1,000 75/100 Platinum Series , , /100 Series ,647 10,974 (1,878) 25, ,227-6, /100 Platinum Series ,000 64,412-65,412 Ideal Global Equity Focus Fund Back-end Load Option ,048 9,175 (6,943) 34, ,389 11,185 (8,671) 29,903 No-load Option with Resets ,347 2,395-5, , ,434 Platinum No-load Option , , ,122 2,324-8,446 75/100 Series , , ,000-1,000 75/100 Platinum Series , , /100 Series ,026 2,268-6, ,000-1, /100 Platinum Series , , Standard Life

177 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Fund units (continued) Units, Units issued Units Units, beginning of period for cash redeemed end of period Ideal European Equity Fund Back-end Load Option ,132 3,091 (17,074) 65, ,805 33,166 (9,390) 94,581 No-load Option with Resets , (346) 10, , (1,420) 6,831 Platinum No-load Option ,273 - (72) 2, , ,273 75/100 Series ,000 2,094-3, ,000-1,000 75/100 Platinum Series ,000 4,980-5, /100 Series ,283 7,797-13, ,071-2, /100 Platinum Series , ,000 Ideal International Equity Fund Back-end Load Option ,170,396 56,883 (367,432) 2,859, ,826,338 92,660 (518,303) 3,400,695 No-load Option ,074 9,822 (29,842) 266, ,590 21,537 (36,792) 277,335 No-load Option with Resets ,933 13,985 (28,620) 216, ,084 26,314 (42,542) 224,856 Platinum No-load Option ,903 - (2,958) 85, ,609 4,727 (993) 69,343 75/100 Series ,760 12,596 (1,126) 14, ,000-1,000 75/100 Platinum Series , , /100 Series ,174 31,374 (9,048) 40, ,769-2, /100 Platinum Series , ,000 Ideal Conservative Portfolio Back-end Load Option ,551, ,493 (466,026) 3,915, ,893, ,691 (817,984) 2,983,399 No-load Option , ,064 (77,287) 518, ,005 75,111 (52,225) 302,891 No-load Option with Resets ,979 47,702 (45,954) 164, ,864 24,820 (3,827) 104,857 Platinum No-load Option ,954 39,311 (47,115) 187, ,965 13,492 (5,066) 87,391 75/100 Series , ,430 (55,922) 742, ,829-93,829 75/100 Platinum Series ,000 11,062-12, /100 Series ,324, ,550 (316,572) 1,776, ,656 (21,233) 609, /100 Platinum Series , ,000 Ideal Moderate Portfolio Back-end Load Option ,300,654 1,120,023 (837,862) 6,582, ,022,694 1,165,706 (864,591) 5,323,809 No-load Option , ,290 (106,886) 560, ,670 96,749 (59,462) 432,957 No-load Option with Resets , ,732 (39,850) 443, ,853 99,428 (11,446) 174,835 Platinum No-load Option ,664 97,800 (69,601) 349, ,859 26,235 (2,425) 200,669 75/100 Series , ,629 (70,391) 772, ,311 (320) 41,991 75/100 Platinum Series , ,937 (10,265) 343, /100 Series , ,990 (55,736) 1,159, ,012 (1,741) 234, /100 Platinum Series , ,000 Standard Life 177

178 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Fund units (continued) Units, Units issued Units Units, beginning of period for cash redeemed end of period Ideal Growth Portfolio Back-end Load Option ,933, ,652 (410,018) 5,438, ,877, ,757 (423,359) 4,171,337 No-load Option , ,111 (97,222) 627, ,414 53,657 (55,069) 494,002 No-load Option with Resets ,339 61,652 (14,374) 270, ,249 69,536 (8,494) 180,291 Platinum No-load Option ,211 26,426 (28,939) 183, ,197 60,065 (823) 148,439 75/100 Series , ,097 (31,259) 528, ,560-23,560 75/100 Platinum Series ,968 50,144-98, /100 Series , ,433 (65,878) 709, ,183 (1,000) 115, /100 Platinum Series ,000 6,100 (2,331) 4,769 Ideal Dividend Growth & Income Portfolio 75/100 Series , ,976 (20,052) 316, ,603 (2,022) 41,581 75/100 Platinum Series ,000 3,939-4, /100 Series , ,334 (37,321) 631, , , /100 Platinum Series ,000 10,226 (2,366) 8,860 Ideal Aggressive Portfolio Back-end Load Option ,378, ,815 (83,730) 1,411, ,266, ,236 (108,592) 1,294,554 No-load Option ,978 13,812 (52,272) 140, ,692 18,564 (4,374) 163,882 No-load Option with Resets ,752 6,029 (1,305) 109, ,995 23,793 (5,259) 90,529 Platinum No-load Option ,814 8,448 (50,293) 146, ,163 62,488 (672) 165,979 75/100 Series ,030 91,939 (7,538) 181, ,556 (809) 43,747 75/100 Platinum Series , , /100 Series ,361 82,002 (7,479) 195, ,935 (1,162) 33, /100 Platinum Series ,000 48,541 (30,711) 18,830 Ideal Global Portfolio 75/100 Series ,793 4,701 (549) 5, ,488-1,488 75/100 Platinum Series ,000 9,472-10, /100 Series ,726 74,006 (43) 102, ,611 (26,313) 44, /100 Platinum Series , ,000 Ideal Select Conservative Portfolio 75/100 Series , ,898 (6,167) 169, ,000-1,000 75/100 Platinum Series , , /100 Series ,703 84,441 (14,308) 134, ,651-37, /100 Platinum Series , ,000 Ideal Select Moderate Portfolio 75/100 Series , ,149 (11,929) 393, ,319-43,319 75/100 Platinum Series , , /100 Series , ,993 (12,238) 357, ,540 (16) 55, /100 Platinum Series ,000 9,362-10, Standard Life

179 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Fund units (continued) Units, Units issued Units Units, beginning of period for cash redeemed end of period Ideal Select Growth Portfolio 75/100 Series ,935 68,539 (10,777) 151, ,484 (199) 17,285 75/100 Platinum Series , , /100 Series ,434 58,467 (5,022) 139, ,271 (7) 36, /100 Platinum Series ,000 9,277-10,277 Ideal Select Dividend Growth & Income Portfolio 75/100 Series ,267 58,716 (1,172) 138, ,896-24,896 75/100 Platinum Series , , /100 Series ,897 70,412 (2,846) 145, ,710 (1,899) 9, /100 Platinum Series ,000 9,321-10,321 Ideal Select Aggressive Portfolio 75/100 Series ,872 13,596 (9,770) 167, ,113-1,113 75/100 Platinum Series , , /100 Series ,282 14,800-24, ,465-1, /100 Platinum Series , ,000 Ideal Select Global Portfolio 75/100 Series ,008 10,739-16, ,698-2,698 75/100 Platinum Series , , /100 Series ,339 16,884 (9,583) 11, ,000-1, /100 Platinum Series , ,000 Ideal LifePoints Balanced Income Portfolio 75/100 Series ,908 13,734 (719) 35, ,173-9,173 75/100 Platinum Series , , /100 Series ,907 8,100 (1,612) 86, ,500 (97) 21, /100 Platinum Series , ,000 Ideal LifePoints Balanced Portfolio 75/100 Series ,559 39,314-44, ,000-1,000 75/100 Platinum Series , , /100 Series ,673 49,973 (18,880) 303, ,182 (97) 48, /100 Platinum Series , ,000 Ideal LifePoints Balanced Growth Portfolio 75/100 Series ,168 25,638-30, ,403-1,403 75/100 Platinum Series , , /100 Series ,325 4,377-14, ,639-2, /100 Platinum Series , ,000 Standard Life 179

180 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Fund units (continued) Units, Units issued Units Units, beginning of period for cash redeemed end of period Ideal LifePoints Long-Term Growth Portfolio 75/100 Series ,452 2,055-3, ,452-1,452 75/100 Platinum Series , , /100 Series ,831 6,107 (29) 23, ,010-3, /100 Platinum Series , ,000 Ideal FT Quotential Diversified Income Portfolio 75/100 Series , ,559 (2,136) 157, ,000-1,000 75/100 Platinum Series ,000 20,772-21, /100 Series ,735 24,564 (274) 63, ,000-1, /100 Platinum Series , ,000 Ideal FT Quotential Balanced Income Portfolio 75/100 Series , ,492 (31,528) 259, ,740-21,740 75/100 Platinum Series , , /100 Series ,119 89,371 (4,172) 114, ,295-1, /100 Platinum Series , ,000 Ideal FT Quotential Balanced Growth Portfolio 75/100 Series , ,580 (16,290) 342, ,129-1,129 75/100 Platinum Series ,000 28,170-29, /100 Series , ,702 (1,347) 136, ,854-2, /100 Platinum Series , ,000 Ideal FT Quotential Global Balanced Portfolio 75/100 Series ,743 24,543-29, ,000-1,000 75/100 Platinum Series , , /100 Series ,000 5,331-6, ,000-1, /100 Platinum Series , ,000 Ideal FT Quotential Growth Portfolio 75/100 Series , ,439 (6,141) 129, ,000-1,000 75/100 Platinum Series ,000 2,466 (2,466) 1, /100 Series ,701 47,117 (2,303) 54, ,000-1, /100 Platinum Series , , Standard Life

181 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Related party transactions (a) Management fees The Funds pay management fees to the Company, twice a month. The fees are accrued daily and are calculated on the daily net asset value of the Funds by applying the following annual rates (excluding GST): Management fees charged to the Ideal Segregated Funds 1 Ideal Money Market Fund Back-end Load Option 1.00% No-load Option 1.15% No-load Option with Resets 1.05% Platinum No-load Option 1.00% 75/100 Series % 75/100 Platinum Series % 100/100 Series % 100/100 Platinum Series % Ideal Money Market Fund II Back-end Load Option % No-load Option % No-load Option with Resets % Platinum No-load Option % Ideal Canadian Bond Fund Back-end Load Option 1.70% No-load Option 1.85% No-load Option with Resets 1.80% Platinum No-load Option 1.40% 75/100 Series 2.00% 75/100 Platinum Series 1.60% 100/100 Series 2.20% 100/100 Platinum Series 1.80% Ideal Corporate High Yield Bond Fund Back-end Load Option 2.10% No-load Option 2.25% No-load Option with Resets 2.20% Platinum No-load Option 1.80% 75/100 Series 2.25% 75/100 Platinum Series 1.85% 100/100 Series 2.45% 100/100 Platinum Series 2.05% Ideal International Bond Fund Back-end Load Option 2.20% No-load Option 2.35% No-load Option with Resets 2.30% Platinum No-load Option 1.85% 75/100 Series 2.35% 75/100 Platinum Series 1.90% 100/100 Series 2.55% 100/100 Platinum Series 2.10% Ideal Income Balanced Fund Back-end Load Option 2.40% No-load Option 2.55% No-load Option with Resets 2.55% Platinum No-load Option 1.95% 75/100 Series 2.55% 75/100 Platinum Series 1.95% 100/100 Series 2.75% 100/100 Platinum Series 2.15% Ideal Russell Retirement Essentials Portfolio 75/100 Series 2.95% 75/100 Platinum Series 2.45% 100/100 Series 3.15% 100/100 Platinum Series 2.65% Ideal Monthly Income Fund Back-end Load Option 2.40% No-load Option 2.55% No-load Option with Resets 2.55% Platinum No-load Option 1.95% 75/100 Series 2.55% 75/100 Platinum Series 1.95% 100/100 Series 2.75% 100/100 Platinum Series 2.15% Ideal Balanced Fund Back-end Load Option 2.40% No-load Option 2.55% No-load Option with Resets 2.55% Platinum No-load Option 1.95% 75/100 Series 2.55% 75/100 Platinum Series 1.95% 100/100 Series 2.75% 100/100 Platinum Series 2.15% Ideal Trimark Balanced Fund 75/100 Series 2.95% 75/100 Platinum Series 2.45% 100/100 Series 3.15% 100/100 Platinum Series 2.65% Ideal AIM Canadian Balanced Fund 75/100 Series 2.95% 75/100 Platinum Series 2.45% 100/100 Series 3.15% 100/100 Platinum Series 2.65% Ideal Fidelity Canadian Balanced Fund 75/100 Series 2.90% 75/100 Platinum Series 2.40% 100/100 Series 3.10% 100/100 Platinum Series 2.60% Ideal Fidelity Canadian Asset Allocation Fund 75/100 Series 2.95% 75/100 Platinum Series 2.45% 100/100 Series 3.15% 100/100 Platinum Series 2.65% Ideal Russell Diversified Monthly Income Portfolio 75/100 Series 3.05% 75/100 Platinum Series 2.55% 100/100 Series 3.25% 100/100 Platinum Series 2.75% Ideal Global Monthly Income Fund Back-end Load Option 2.40% No-load Option with Resets 2.55% Platinum No-load Option 1.95% 75/100 Series 2.55% 75/100 Platinum Series 1.95% 100/100 Series 2.75% 100/100 Platinum Series 2.15% Ideal Templeton Global Income Fund 75/100 Series 3.00% 75/100 Platinum Series 2.50% 100/100 Series 3.20% 100/100 Platinum Series 2.70% Ideal Trimark Global Balanced Fund 75/100 Series 2.95% 75/100 Platinum Series 2.45% 100/100 Series 3.15% 100/100 Platinum Series 2.65% Ideal Fidelity Global Asset Allocation Fund 75/100 Series 3.05% 75/100 Platinum Series 2.55% 100/100 Series 3.25% 100/100 Platinum Series 2.75% Ideal Dividend Income Fund Back-end Load Option 2.40% No-load Option with Resets 2.55% Platinum No-load Option 1.95% 75/100 Series 2.55% 75/100 Platinum Series 2.05% 100/100 Series 2.75% 100/100 Platinum Series 2.25% Ideal Canadian Dividend Growth Fund Back-end Load Option 2.40% No-load Option 2.55% No-load Option with Resets 2.55% Platinum No-load Option 1.95% 75/100 Series 2.55% 75/100 Platinum Series 2.05% 100/100 Series 2.75% 100/100 Platinum Series 2.25% Ideal Canadian Equity Fund Back-end Load Option 2.40% No-load Option 2.55% No-load Option with Resets 2.55% Platinum No-load Option 1.95% 75/100 Series 2.55% 75/100 Platinum Series 2.05% 100/100 Series 2.75% 100/100 Platinum Series 2.25% Ideal Canadian Equity Focus Fund Back-end Load Option 2.40% No-load Option with Resets 2.55% Platinum No-load Option 1.95% 75/100 Series 2.55% 75/100 Platinum Series 2.05% 100/100 Series 2.75% 100/100 Platinum Series 2.25% Ideal Canadian Small Cap Fund Back-end Load Option 2.35% No-load Option 2.50% No-load Option with Resets 2.60% Platinum No-load Option 1.95% 75/100 Series 2.60% 75/100 Platinum Series 2.05% 100/100 Series 2.80% 100/100 Platinum Series 2.25% Ideal U.S. Dividend Growth Fund Back-end Load Option 2.40% No-load Option with Resets 2.55% Platinum No-load Option 1.95% 75/100 Series 2.55% 75/100 Platinum Series 2.05% 100/100 Series 2.75% 100/100 Platinum Series 2.25% Ideal U.S. Equity Fund Back-end Load Option 2.50% No-load Option 2.65% No-load Option with Resets 2.65% Platinum No-load Option 2.05% 75/100 Series 2.65% 75/100 Platinum Series 2.05% 100/100 Series 2.85% 100/100 Platinum Series 2.25% Standard Life 181

182 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Related party transactions (a) Management fees (continued) Management fees charged to the Ideal Segregated Funds 1 Ideal U.S. Equity Focus Fund Back-end Load Option 2.50% No-load Option with Resets 2.65% Platinum No-load Option 2.05% 75/100 Series 2.65% 75/100 Platinum Series 2.05% 100/100 Series 2.85% 100/100 Platinum Series 2.25% Ideal U.S. Mid Cap Fund Back-end Load Option 2.50% No-load Option with Resets 2.65% Platinum No-load Option 2.05% 75/100 Series 2.65% 75/100 Platinum Series 2.05% 100/100 Series 2.85% 100/100 Platinum Series 2.25% Ideal Global Dividend Growth Fund Back-end Load Option 2.40% No-load Option 2.55% No-load Option with Resets 2.65% Platinum No-load Option 1.95% 75/100 Series 2.55% 75/100 Platinum Series 2.05% 100/100 Series 2.75% 100/100 Platinum Series 2.25% Ideal Global Equity Fund Back-end Load Option 2.50% No-load Option 2.65% No-load Option with Resets 2.70% Platinum No-load Option 2.05% 75/100 Series 2.70% 75/100 Platinum Series 2.15% 100/100 Series 2.90% 100/100 Platinum Series 2.35% Ideal Global Equity Focus Fund Back-end Load Option 2.50% No-load Option with Resets 2.65% Platinum No-load Option 2.05% 75/100 Series 2.70% 75/100 Platinum Series 2.15% 100/100 Series 2.90% 100/100 Platinum Series 2.35% Ideal European Equity Fund Back-end Load Option 2.50% No-load Option with Resets 2.65% Platinum No-load Option 2.05% 75/100 Series 2.65% 75/100 Platinum Series 2.15% 100/100 Series 2.85% 100/100 Platinum Series 2.35% Ideal International Equity Fund Back-end Load Option 2.65% No-load Option 2.80% No-load Option with Resets 2.85% Platinum No-load Option 2.20% 75/100 Series 2.80% 75/100 Platinum Series 2.20% 100/100 Series 3.00% 100/100 Platinum Series 2.40% 1 Includes management fee of underlying fund(s), where applicable. There is no duplication of fees. 2 During the period, the Company temporarily lowered its management fees to between 0.30% and 0.50%, due to unusual market conditions. The management fee rate is normally between 0.75% and 1.50%, depending on the series. 182 Standard Life Ideal Conservative Portfolio Back-end Load Option 2.30% No-load Option 2.45% No-load Option with Resets 2.45% Platinum No-load Option 1.85% 75/100 Series 2.45% 75/100 Platinum Series 1.85% 100/100 Series 2.65% 100/100 Platinum Series 2.05% Ideal Moderate Portfolio Back-end Load Option 2.35% No-load Option 2.50% No-load Option with Resets 2.50% Platinum No-load Option 1.90% 75/100 Series 2.50% 75/100 Platinum Series 1.90% 100/100 Series 2.70% 100/100 Platinum Series 2.10% Ideal Growth Portfolio Back-end Load Option 2.45% No-load Option 2.60% No-load Option with Resets 2.60% Platinum No-load Option 2.00% 75/100 Series 2.60% 75/100 Platinum Series 2.00% 100/100 Series 2.80% 100/100 Platinum Series 2.20% Ideal Dividend Growth & Income Portfolio 75/100 Series 2.65% 75/100 Platinum Series 2.05% 100/100 Series 2.85% 100/100 Platinum Series 2.25% Ideal Aggressive Portfolio Back-end Load Option 2.50% No-load Option 2.65% No-load Option with Resets 2.65% Platinum No-load Option 2.05% 75/100 Series 2.65% 75/100 Platinum Series 2.05% 100/100 Series 2.85% 100/100 Platinum Series 2.25% Ideal Global Portfolio 75/100 Series 2.95% 75/100 Platinum Series 2.20% 100/100 Series 3.15% 100/100 Platinum Series 2.40% Ideal Select Conservative Portfolio 75/100 Series 2.55% 75/100 Platinum Series 2.05% 100/100 Series 2.75% 100/100 Platinum Series 2.25% Ideal Select Moderate Portfolio 75/100 Series 2.65% 75/100 Platinum Series 2.15% 100/100 Series 2.85% 100/100 Platinum Series 2.35% Ideal Select Growth Portfolio 75/100 Series 2.80% 75/100 Platinum Series 2.30% 100/100 Series 3.00% 100/100 Platinum Series 2.50% Ideal Select Dividend Growth & Income Portfolio 75/100 Series 2.85% 75/100 Platinum Series 2.35% 100/100 Series 3.05% 100/100 Platinum Series 2.55% Ideal Select Aggressive Portfolio 75/100 Series 2.90% 75/100 Platinum Series 2.40% 100/100 Series 3.10% 100/100 Platinum Series 2.60% Ideal Select Global Portfolio 75/100 Series 2.95% 75/100 Platinum Series 2.45% 100/100 Series 3.15% 100/100 Platinum Series 2.65% Ideal LifePoints Balanced Income Portfolio 75/100 Series 2.85% 75/100 Platinum Series 2.35% 100/100 Series 3.05% 100/100 Platinum Series 2.55% Ideal LifePoints Balanced Portfolio 75/100 Series 2.90% 75/100 Platinum Series 2.40% 100/100 Series 3.10% 100/100 Platinum Series 2.60% Ideal LifePoints Balanced Growth Portfolio 75/100 Series 2.95% 75/100 Platinum Series 2.45% 100/100 Series 3.15% 100/100 Platinum Series 2.65% Ideal LifePoints Long-Term Growth Portfolio 75/100 Series 3.00% 75/100 Platinum Series 2.50% 100/100 Series 3.20% 100/100 Platinum Series 2.70% Ideal FT Quotential Diversified Income Portfolio 75/100 Series 2.80% 75/100 Platinum Series 2.30% 100/100 Series 3.00% 100/100 Platinum Series 2.50% Ideal FT Quotential Balanced Income Portfolio 75/100 Series 2.85% 75/100 Platinum Series 2.35% 100/100 Series 3.05% 100/100 Platinum Series 2.55% Ideal FT Quotential Balanced Growth Portfolio 75/100 Series 2.95% 75/100 Platinum Series 2.45% 100/100 Series 3.15% 100/100 Platinum Series 2.65% Ideal FT Quotential Global Balanced Portfolio 75/100 Series 2.95% 75/100 Platinum Series 2.45% 100/100 Series 3.15% 100/100 Platinum Series 2.65% Ideal FT Quotential Growth Portfolio 75/100 Series 3.00% 75/100 Platinum Series 2.50% 100/100 Series 3.20% 100/100 Platinum Series 2.70%

183 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Related party transactions (continued) (b) Operating expenses The Funds are responsible for paying their operating expenses, which shall include, but are not limited to, audit fees, applicable taxes, regulatory filing fees and custodian fees. The Company absorbed operating expenses for the period otherwise chargeable to all Funds except to the back-end load option of the Ideal Canadian Equity Fund and the Ideal Balanced Fund. The details for each Fund are disclosed in the statement of operations. (c) Custodian fees Standard Life Trust Company ( SLTC ), an affiliated company of the Company, is the custodian of the Funds. During the period, the Funds paid custodian fees to SLTC of $56,116 ( $54,845), which is net of custodian fees of $28,453 ( $29,552) which were absorbed by the Company. (d) Related party investments The Company may inject money into the Funds or series of units for purposes of starting up a new Fund or series of units or maintaining liquidity within an existing Fund or series. Such money could be reimbursed when the Fund no longer requires the money to operate effectively. The Company s investments (at closing net asset value) in the Funds were as follows: Back-end Load Option Fair value as at ($) June 30, 2010 December 31, 2009 No-load Option with Resets Platinum No-load Option Back-end Load Option No-load Option with Resets Platinum No-load Option Ideal International Bond Fund , ,201 Ideal Monthly Income Fund 8,614, ,692, Ideal Global Monthly Income Fund - 9, ,594 - Ideal Canadian Equity Focus Fund - 7, ,116 - Ideal U.S. Equity Focus Fund 7,330 7,299 7,429 8,086 8,058 8,175 Ideal U.S. Mid Cap Fund 7,086 7,055 7,181 7,232 7,206 7,311 Ideal Global Equity Focus Fund 6,734 6,705 6,824 7,428 7,402 7,509 Ideal European Equity Fund 5,676 5,652 5,751 6,812 6,788 6,885 Fair value as at ($) June 30, 2010 December 31, /100 Series 75/100 Platinum Series 75/100 Series 75/100 Platinum Series Ideal Money Market Fund - 10,009-10,000 Ideal Canadian Bond Fund - 10,187-9,856 Ideal Corporate High Yield Bond Fund - 10,358-9,895 Ideal International Bond Fund 9,190 9,719 9,005 9,501 Ideal Income Balanced Fund - 9,990-9,966 Ideal Russell Retirement Essentials Portfolio 11,194 9,919 11,273 9,965 Ideal Monthly Income Fund - 10,031-10,014 Ideal Balanced Fund - 9,570-9,935 Ideal Trimark Balanced Fund 11,851 9,619 12,556 10,165 Ideal AIM Canadian Balanced Fund 10,578 9,710 10,917 9,997 Ideal Fidelity Canadian Balanced Fund - 9,964-9,979 Ideal Fidelity Canadian Asset Allocation Fund - 9,670-10,010 Ideal Russell Diversified Monthly Income Portfolio 11,221 9,592 11,717 9,997 Ideal Global Monthly Income Fund 10,211 9,430 10,708 9,858 Ideal Templeton Global Income Fund 10,168 9,462 10,761 9,989 Ideal Trimark Global Balanced Fund 10,331 9,607 10,896 10,107 Ideal Fidelity Global Asset Allocation Fund 10,741 9,255 11,719 10,074 Standard Life 183

184 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Related party transactions (d) Related party investments (continued) Fair value as at ($) June 30, 2010 December 31, /100 Series 75/100 Platinum Series 75/100 Series 75/100 Platinum Series Ideal Dividend Income Fund - 9,718-10,126 Ideal Canadian Dividend Growth Fund - 9,700-10,134 Ideal Canadian Equity Fund - 9,392-9,975 Ideal Canadian Equity Focus Fund 12,596 9,468 13,325 9,989 Ideal Canadian Small Cap Fund - 9,510-10,361 Ideal U.S. Dividend Growth Fund 9,588 9,373 10,271 10,015 Ideal U.S. Equity Fund 10,040 9,346 10,841 10,059 Ideal U.S. Equity Focus Fund 9,904 9,231 10,934 10,158 Ideal U.S. Mid Cap Fund 10,822 10,220 11,054 10,405 Ideal Global Dividend Growth Fund - 8,766-9,915 Ideal Global Equity Fund 11,038 9,116 12,259 10,094 Ideal Global Equity Focus Fund 10,983 9,103 12,129 10,023 Ideal European Equity Fund 9,856 8,193 11,837 9,814 Ideal International Equity Fund 9,816 8,701 11,275 9,963 Ideal Conservative Portfolio - 9,843-9,879 Ideal Moderate Portfolio - 9,759-9,895 Ideal Growth Portfolio - 9,583-10,005 Ideal Dividend Growth & Income Portfolio - 9,429-9,978 Ideal Aggressive Portfolio - 9,489-10,060 Ideal Global Portfolio 10,427 9,014 11,631 10,016 Ideal Select Conservative Portfolio 10,620 9,833 10,717 9,898 Ideal Select Moderate Portfolio - 9,727-9,922 Ideal Select Growth Portfolio - 9,540-10,026 Ideal Select Dividend Growth & Income Portfolio - 9,433-10,026 Ideal Select Aggressive Portfolio 11,086 9,457 11,876 10,105 Ideal Select Global Portfolio 10,583 9,064 11,804 10,084 Ideal LifePoints Balanced Income Portfolio 10,971 9,879 11,092 9,962 Ideal LifePoints Balanced Portfolio 10,866 9,728 11,195 9,998 Ideal LifePoints Balanced Growth Portfolio 11,006 9,579 11,529 10,009 Ideal LifePoints Long-Term Growth Portfolio 11,017 9,414 11,804 10,061 Ideal FT Quotential Diversified Income Portfolio 11,645 10,338 11,334 10,038 Ideal FT Quotential Balanced Income Portfolio 11,833 10,057 11,846 10,043 Ideal FT Quotential Balanced Growth Portfolio 12,118 9,950 12,367 10,127 Ideal FT Quotential Global Balanced Portfolio 11,796 9,923 12,048 10,110 Ideal FT Quotential Growth Portfolio 12,146 9,754 12,676 10, Standard Life

185 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Related party transactions (d) Related party investments (continued) Fair value as at ($) June 30, 2010 December 31, /100 Series 100/100 Platinum Series 100/100 Series 100/100 Platinum Series Ideal Money Market Fund - 10,008-10,000 Ideal Canadian Bond Fund - 10,175-9,855 Ideal Corporate High Yield Bond Fund - 10,345-9,893 Ideal International Bond Fund 9,188 9,707 9,012 9,499 Ideal Income Balanced Fund - 9,977-9,965 Ideal Russell Retirement Essentials Portfolio 11,161 9,906 11,253 9,963 Ideal Monthly Income Fund - 10,019-10,013 Ideal Balanced Fund - 9,555-9,934 Ideal Trimark Balanced Fund 11,816 9,606 12,533 10,164 Ideal AIM Canadian Balanced Fund 10,549 9,698 10,899 9,995 Ideal Fidelity Canadian Balanced Fund - 9,951-9,977 Ideal Fidelity Canadian Asset Allocation Fund - 9,658-10,008 Ideal Russell Diversified Monthly Income Portfolio 11,188 9,584 11,695 9,995 Ideal Global Monthly Income Fund 10,178 9,418 10,685 9,856 Ideal Templeton Global Income Fund 10,136 9,450 10,741 9,988 Ideal Trimark Global Balanced Fund 10,299 9,595 10,873 10,105 Ideal Fidelity Global Asset Allocation Fund 10,707 9,243 11,696 10,072 Ideal Dividend Income Fund - 9,706-10,124 Ideal Canadian Dividend Growth Fund - 9,688-10,132 Ideal Canadian Equity Fund - 9,381-9,974 Ideal Canadian Equity Focus Fund 12,556 9,455 13,297 9,987 Ideal Canadian Small Cap Fund - 9,498-10,359 Ideal U.S. Dividend Growth Fund 9,558 9,362 10,250 10,013 Ideal U.S. Equity Fund 10,009 9,333 10,819 10,057 Ideal U.S. Equity Focus Fund 9,874 9,219 10,912 10,156 Ideal U.S. Mid Cap Fund 10,789 10,207 11,031 10,403 Ideal Global Dividend Growth Fund - 8,755-9,913 Ideal Global Equity Fund - 9,104-10,092 Ideal Global Equity Focus Fund 10,950 9,093 12,104 10,022 Ideal European Equity Fund 9,825 8,184 11,813 9,813 Ideal International Equity Fund 9,785 8,689 11,252 9,961 Ideal Conservative Portfolio - 9,830-9,877 Ideal Moderate Portfolio - 9,747-9,893 Ideal Growth Portfolio - 9,571-10,004 Ideal Dividend Growth & Income Portfolio - 9,418-9,977 Ideal Aggressive Portfolio - 9,477-10,058 Ideal Global Portfolio - 9,003-10,015 Ideal Select Conservative Portfolio 10,601 9,821 10,710 9,897 Ideal Select Moderate Portfolio - 9,715-9,920 Ideal Select Growth Portfolio - 9,529-10,024 Standard Life 185

186 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Related party transactions (d) Related party investments (continued) Fair value as at ($) June 30, 2010 December 31, /100 Series 100/100 Platinum Series 100/100 Series 100/100 Platinum Series Ideal Select Dividend Growth & Income Portfolio - 9,422-10,024 Ideal Select Aggressive Portfolio 11,052 9,445 11,850 10,103 Ideal Select Global Portfolio 10,550 9,052 11,779 10,082 Ideal LifePoints Balanced Income Portfolio - 9,867-9,961 Ideal LifePoints Balanced Portfolio - 9,715-9,996 Ideal LifePoints Balanced Growth Portfolio 10,974 9,567 11,506 10,007 Ideal LifePoints Long-Term Growth Portfolio 10,985 9,402 11,782 10,059 Ideal FT Quotential Diversified Income Portfolio 11,616 10,323 11,322 10,036 Ideal FT Quotential Balanced Income Portfolio 11,795 10,045 11,820 10,041 Ideal FT Quotential Balanced Growth Portfolio 12,081 9,936 12,340 10,125 Ideal FT Quotential Global Balanced Portfolio 11,757 9,910 12,021 10,108 Ideal FT Quotential Growth Portfolio 12,110 9,746 12,653 10, Income taxes The Funds are deemed to be inter vivo trusts under the provisions of the Income Tax Act (Canada). The Funds income and net realized capital gains and losses are deemed to be allocated to the beneficiaries. Therefore, the Funds are not subject to income tax on their income and net realized capital gains. 7. Financial Instrument Risks (a) Fair value measurement Financial instruments are classified within a three-level fair value hierarchy, which reflects the significance of the inputs required to measure fair value: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included in Level 1 that are observable for the assets or liabilities, either directly or indirectly, including inputs and quoted prices in markets that are not considered to be active; and Level 3 Inputs that are not based on observable market data. (b) Risk management The Funds may be exposed to a variety of financial risks. The statements of portfolio investments present the investments held by the Funds as at June 30, 2010 and group the investments by asset type, geographic region and/or industry sector. The portfolio manager, Standard Life Investments Inc. ( SLI ), seeks to minimize the potential adverse effects of risks on the Funds performance by employing professional, experienced portfolio advisors, by daily monitoring of the Funds positions and market events and by diversifying the investment portfolios within the constraints of the investment policies. Under the fund of fund strategy, a Fund will invest according to one of the following: 1) A mix of underlying funds, which are managed by SLI or by external portfolio managers, following a strategic asset allocation, for which only exposure to direct risk is presented. To ensure that the Funds financial statements provide more relevant and comparable information, the Company has changed the presentation of risks arising from financial instruments for fund of funds using a strategic asset allocation. Since June 30, 2010, only exposure to direct risk is presented. Application of this change was done retrospectively. 2) One underlying fund, which is managed by SLI or by an external portfolio manager, for which exposure to indirect risks is presented. SLI monitors periodically the performance and investment mix of the underlying funds. (c) Market risk All investments present a risk of loss of capital through market risk, interest rate risk (covered in section (d)) or currency risk (covered in section (e)). Market risk is the risk that the value of investments will fluctuate as a result of changes in market prices whether caused by factors specific to an individual investment or its issuer, or factors affecting all investments traded in a market or market segment. SLI manages these risks through diversification of the investment portfolios, a careful selection of investments and other financial instruments, within specified limits. (d) Interest rate risk Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of debt securities. (e) Currency risk Currency risk is the risk that the value of a financial instrument will fluctuate as a result of changes in foreign exchange rates. 186 Standard Life

187 Notes to interim unaudited financial statements Ideal Segregated Funds for the periods ended June 30, 2010 and Financial Instrument Risks (continued) (f) Credit risk Credit risk is the risk that a security issuer or counterparty will be unable to pay amounts in full when due. The fair value of debt securities includes consideration of the creditworthiness of the debt issuer. In 2010, financial instruments were classified based on ratings from major rating agencies and presented on a basis consistent with Standard & Poor s. In 2009, they were classified based on ratings from Standard & Poor s (or, where Standard & Poor s ratings were not available, Moody s ratings if available; otherwise, Dominion Bond Rating Services ratings were used). (g) Liquidity risk Liquidity risk is defined as the risk that a fund may not be able to settle or meet its obligations on time or at a reasonable price. The Funds are exposed to liquidity risk through daily cash redemptions of units. The Funds retain sufficient cash and cash equivalents to maintain adequate liquidity for the purpose of funding redemptions. The majority of the Funds investments is traded on an active market and can therefore be readily realized. Each Fund s specific exposure to the above risks and fair value measurement are disclosed in each Fund s Specific note to interim unaudited financial statements Financial instrument risks. 8. Comparative figures To conform to the presentation adopted in the current period, certain amounts from prior periods have been reclassified. 9. Underlying fund holdings An unaudited statement of portfolio holdings for each underlying fund is available upon request by writing to the Fund manager at: The Standard Life Assurance Company of Canada Retail Investment, Customer Services P.O. Box 11497, Stn. Centre-ville Montreal, Quebec H3C 5S5 Standard Life 187

188 Notes 188 Standard Life

189 Retirement Investments Insurance The Standard Life Assurance Company of Canada Retail Investment, Customer Services P.O. Box 11497, Stn. Centre-ville Montreal, Quebec H3C 5S5 4746H