Standard Life Ideal Segregated Funds

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

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

Ideal Money Market Fund Statement of net assets as at June 30, 2011 and December 31, 2010 ASSETS Short-term investments * 118,027,038 118,379,133 Cash 89,938 99,708 Subscriptions receivable 252,998 289,989 Interest accrued 166,242 313,963 118,536,216 119,082,793 LIABILITIES Redemptions payable 548,258 1,982,327 Management fees payable 41,365 5,304 Custodian fees payable 79 185 Audit fees payable 3,182 - Other liabilities 26,437 24,917 619,321 2,012,733 NET ASSETS 117,916,895 117,070,060 Net assets per unit (note 3) Back-end Load 17.15 17.13 No-load 16.80 16.80 No-load with Reset n/a n/a Platinum No-load n/a n/a Ideal Money Market Fund II Back-end Load 10.06 10.04 No-load 10.06 10.04 No-load with Reset 10.06 10.04 Platinum No-load 10.06 10.04 75/100 Series 10.06 10.06 75/100 Platinum No-load Series 10.02 10.01 100/100 Series 10.05 10.05 100/100 Platinum No-load Series 10.02 10.01 GLWB Series 9.99 n/a GLWB Platinum No-load Series 10.01 n/a * Short-term investments, at average cost 117,886,753 118,366,669 Statement of operations for the periods ended June 30 INVESTMENT INCOME Interest 739,244 333,912 739,244 333,912 EXPENSES (note 5) Management fees 526,908 558,375 Custodian fees 5,046 5,632 Audit fees 3,500 2,938 Interest 342 6 Other operating expenses 96 202 535,892 567,153 Less: expenses absorbed by the manager (96) (202) 535,796 566,951 NET INVESTMENT INCOME (LOSS) 203,448 (233,039 ) ASSETS FROM OPERATIONS 203,448 (233,039 ) Increase (decrease) in net assets from operations per unit Back-end Load 0.02 (0.05) No-load - (0.06) No-load with Reset n/a (0.05) Platinum No-load n/a (0.05) Ideal Money Market Fund II Back-end Load 0.02 0.01 No-load 0.02 0.01 No-load with Reset 0.02 0.01 Platinum No-load 0.02 0.01 75/100 Series - 0.01 75/100 Platinum No-load Series 0.01 0.01 100/100 Series - 0.01 100/100 Platinum No-load Series 0.01 - GLWB Series (0.01 ) n/a GLWB Platinum No-load Series - n/a Statement of changes in net assets for the periods ended June 30 NET ASSETS - beginning of period 117,070,060 142,592,670 ASSETS FROM OPERATIONS 203,448 (233,039 ) CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 84,913,849 64,849,309 Payments for units redeemed (84,270,462 ) (78,237,922 ) Net capital unit transactions 643,387 (13,388,613 ) NET ASSETS - end of period 117,916,895 128,971,018 Standard Life 3

Ideal Money Market Fund Statement of portfolio investments as at June 30, 2011 Par Average Fair Issuer / Interest rate / Maturity date value cost ($) value ($) SHORT-TERM INVESTMENTS FEDERAL AND FEDERALLY GUARANTEED 23.36% Canada Housing Trust No. 1, 4.600%, 2011/09/15 1,560,000 1,577,394 1,570,623 Canada Housing Trust No. 1, 3.950%, 2011/12/15 1,140,000 1,163,951 1,154,415 Government of Canada, 1.121%, 2011/08/18 1,890,000 1,879,963 1,887,651 Government of Canada, 1.206%, 2011/09/01 2,460,000 2,439,089 2,456,052 Government of Canada, 1.0750%, 2011/09/15 3,080,000 3,064,527 3,073,932 Government of Canada, 1.257%, 2011/09/29 1,760,000 1,738,595 1,755,885 Government of Canada, 1.143%, 2011/10/13 3,110,000 3,092,717 3,101,466 Government of Canada, 1.246%, 2011/10/27 3,300,000 3,260,608 3,289,559 Government of Canada, 1.114%, 2011/11/10 3,120,000 3,103,086 3,108,780 Government of Canada, 1.330%, 2011/11/24 3,020,000 2,980,457 3,007,799 Government of Canada, 1.046%, 2011/12/08 1,600,000 1,592,101 1,592,805 Government of Canada, 1.449%, 2012/04/12 1,560,000 1,538,204 1,545,846 PROVINCIAL AND PROVINCIALLY GUARANTEED 8.75% Province of Manitoba, floating rate, 1.333%, 2012/05/02 3,770,000 3,770,317 3,772,281 Province of Ontario, 1.155%, 2011/09/21 760,000 755,676 758,246 Province of Quebec, 1.050%, 2011/07/22 800,000 798,208 799,527 Province of Quebec, 1.140%, 2011/09/16 5,000,000 4,971,750 4,989,170 BANKERS ACCEPTANCE 13.49% Bank of Nova Scotia, (The), 1.170%, 2011/08/31 1,200,000 1,196,508 1,197,772 Bank of Montreal, 1.100%, 2011/07/04 578,000 576,960 577,933 Bank of Montreal, 1.150%, 2011/07/25 1,950,000 1,944,618 1,948,584 Canadian Imperial Bank of Commerce, 1.150%, 2011/07/04 1,500,000 1,495,710 1,499,826 Canadian Imperial Bank of Commerce, 1.150%, 2011/08/23 1,000,000 997,240 998,397 Canadian Imperial Bank of Commerce, 1.150%, 2011/09/07 770,000 767,775 768,393 HSBC Bank Canada, 1.180%, 2011/07/11 1,160,000 1,156,636 1,159,630 HSBC Bank Canada, 1.180%, 2011/07/26 2,360,000 2,353,156 2,358,221 National Bank of Canada, 1.160%, 2011/07/04 2,000,000 1,994,040 1,999,768 National Bank of Canada, 1.160%, 2011/07/11 1,300,000 1,296,256 1,299,585 National Bank of Canada, 1.150%, 2011/07/19 1,850,000 1,844,654 1,848,981 National Bank of Canada, 1.142%, 2011/09/15 254,000 253,271 253,402 BEARER DEPOSIT NOTES 9.72% Bank of Nova Scotia, (The), 1.224%, 2011/07/19 2,840,000 2,827,734 2,838,324 Bank of Nova Scotia, (The), 1.170%, 2011/08/25 1,500,000 1,495,635 1,497,255 Bank of Nova Scotia, (The), 1.350%, 2011/10/11 800,000 794,648 797,152 Royal Bank of Canada, 1.330%, 2011/10/03 1,550,000 1,539,848 1,544,947 Toronto-Dominion Bank, (The), 1.160%, 2011/07/07 2,330,000 2,323,290 2,329,487 Vancouver City Savings Credit Union, 1.230%, 2011/07/11 1,560,000 1,555,226 1,559,485 Vancouver City Savings Credit Union, 1.220%, 2011/08/03 900,000 897,300 899,082 CANADIAN DEPOSIT CERTIFICATES 0.17% National Bank of Canada, 1.000%, 2011/07/04 100,000 100,000 100,000 Royal Bank of Canada, 0.950%, 2011/07/04 100,000 100,000 100,000 CORPORATE 44.60% Bank of Montreal, 4.960%, 2011/07/14 460,000 467,622 460,465 Bank of Montreal, floating rate, 1.373%, 2012/02/01 1,000,000 1,000,000 999,940 Bank of Montreal, floating rate, 1.640%, 2012/12/10 1,620,000 1,620,000 1,624,626 Bank of Nova Scotia, (The), floating rate, 2.249%, 2011/08/12 2,500,000 2,528,800 2,502,210 Bank of Nova Scotia, (The), 3.030%, 2012/06/04 1,600,000 1,623,408 1,621,346 Caisse centrale Desjardins, 1.300%, 2011/11/09 1,560,000 1,550,234 1,552,777 Caisse centrale Desjardins, floating rate, 1.452%, 2012/01/11 1,050,000 1,050,000 1,042,667 Caisse centrale Desjardins, floating rate, 1.603%, 2012/02/17 1,000,000 1,000,000 1,000,680 Canadian Imperial Bank of Commerce, 4.350%, 2011/11/01 3,000,000 3,056,955 3,029,137 Canadian Imperial Bank of Commerce, floating rate, 1.499%, 2012/10/15 1,550,000 1,550,000 1,549,039 Central 1 Credit Union, 1.180%, 2011/07/12 1,020,000 1,017,042 1,019,625 Central 1 Credit Union, 1.160%, 2011/08/30 1,300,000 1,296,256 1,297,498 Central 1 Credit Union, 1.340%, 2011/10/12 2,170,000 2,155,811 2,162,511 Citigroup Finance Canada Inc., 5.100%, 2011/07/26 2,400,000 2,430,408 2,405,028 GE Capital Canada Funding Company, 1.180%, 2011/07/28 1,190,000 1,186,668 1,188,979 GE Capital Canada Funding Company, 1.150%, 2011/09/06 750,000 748,020 748,376 GE Capital Canada Funding Company, 1.201%, 2011/11/04 2,300,000 2,289,903 2,290,094 GE Capital Canada Funding Company, 1.290%, 2011/11/30 1,400,000 1,391,152 1,392,560 Honda Canada Finance Inc., 1.200%, 2011/09/07 600,000 598,074 598,680 Honda Canada Finance Inc., 1.350%, 2011/11/15 1,610,000 1,599,825 1,602,388 Inter Pipeline (Corridor) Inc., 1.300%, 2011/07/20 800,000 797,384 799,510 Par Average Fair Issuer / Interest rate / Maturity date value cost ($) value ($) Inter Pipeline (Corridor) Inc., 1.300%, 2011/08/02 1,190,000 1,186,109 1,188,792 Inter Pipeline (Corridor) Inc., 1.300%, 2011/09/02 790,000 787,417 788,399 Manulife Bank of Canada, floating rate, 1.542%, 2011/09/15 1,850,000 1,850,000 1,850,391 McCain Finance (Canada) Limited, 1.066%, 2011/09/01 1,600,000 1,596,736 1,596,640 National Bank of Canada, floating rate, 1.386%, 2011/10/21 1,450,000 1,450,000 1,450,392 Omers Finance Trust, 1.160%, 2011/08/19 820,000 817,606 818,720 Omers Finance Trust, 1.150%, 2011/08/30 1,510,000 1,505,772 1,507,093 Omers Finance Trust, 1.150%, 2011/09/08 2,000,000 1,994,340 1,995,532 Plaza Trust, 1.180%, 2011/07/14 750,000 747,653 749,690 Plaza Trust, 1.180%, 2011/07/29 1,450,000 1,445,940 1,448,757 Royal Bank of Canada, 4.530%, 2012/05/07 3,180,000 3,268,215 3,259,498 Storm King Funding, 1.180%, 2011/08/18 790,000 787,606 788,835 TransCanada PipeLines Limited, 1.250%, 2011/09/19 800,000 796,648 797,902 TransCanada PipeLines Limited, 1.181%, 2011/10/06 2,215,000 2,208,001 2,208,000 Vancouver City Savings Credit Union, floating rate, 1.592%, 2011/11/29 1,250,000 1,250,000 1,250,000 TOTAL SHORT-TERM INVESTMENTS 100.09% 117,886,753 118,027,038 Other assets, less liabilities -0.09% (110,143 ) (110,143 ) NET ASSETS 100.00% 117,776,610 117,916,895 4 Standard Life

Specific note to interim unaudited financial statements Ideal Money Market Fund Financial instrument risks (note 7) as at June 30, 2011 and December 31, 2010 Fair value measurements As at June 30, 2011 and December 31, 2010, the Fund s financial instruments were classified as Level 2 within the fair value hierarchy. During 2010, short-term investments with a fair value of $6,337,217 were transferred from Level 3 to Level 2 during the period as additional pricing sources became available. Market risk The Fund is not significantly exposed to market risk since it does not hold any equity investments. Interest rate risk The Fund is exposed to interest rate risk since its investments are interest bearing. The debt securities have a maturity of less than one year, except the floating rate debt securities, for which the interest rate changes on a periodic basis. As at June 30, 2011, should current interest rates have increased or decreased by 1%, assuming a parallel shift in the yield curve, with all other variables remaining constant, the decrease or increase in net assets would amount to approximately $258,000 (December 31, 2010 - $260,000). The Fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund is not significantly exposed to currency risk since it holds assets and liabilities predominantly denominated in Canadian dollars, the functional currency. Credit risk The Fund s credit risk exposure is derived from its holdings in other assets and/or debt securities and/or forward foreign currency contracts, if any, for which the carrying amount represents the maximum credit risk exposure The credit risk exposure of debt securities by credit rating was as follows: % of debt securities as at Credit ratings June 30, 2011 December 31, 2010 AAA 23 30 AA 37 32 A 30 30 Not rated 10 8 Total 100 100 Standard Life 5

Ideal Canadian Bond Fund Statement of net assets as at June 30, 2011 and December 31, 2010 ASSETS Investments, at fair value * 130,499,388 140,233,107 Short-term investments 1,300,000 3,345,534 Cash 125,936 120,564 Subscriptions receivable 51,480 443,860 Interest accrued 902,666 815,490 Receivable from investments sold 4,151,057-137,030,527 144,958,555 LIABILITIES Redemptions payable 166,819 477,395 Payable on investments purchased 4,094,275 1,380,731 Management fees payable 98,547 13,946 Custodian fees payable 90 224 Audit fees payable 3,182 - Other liabilities 60,318 50,446 4,423,231 1,922,742 NET ASSETS 132,607,296 143,035,813 Net assets per unit (note 3) Back-end Load 51.31 50.56 No-load 50.47 49.76 No-load with Reset 51.09 50.36 Platinum No-load 51.94 51.09 75/100 Series 11.20 11.05 75/100 Platinum No-load Series 10.54 10.38 100/100 Series 11.14 11.01 100/100 Platinum No-load Series 10.51 10.35 GLWB Series 10.13 n/a GLWB Platinum No-load Series 10.13 n/a * Investments, at average cost 127,621,201 137,377,890 Statement of operations for the periods ended June 30 INVESTMENT INCOME Interest 2,811,451 2,497,159 2,811,451 2,497,159 EXPENSES (note 5) Management fees 1,312,615 1,034,097 Custodian fees 5,980 4,864 Audit fees 3,487 2,938 Interest 113 6 Other operating expenses 113 174 1,322,308 1,042,079 Less: expenses absorbed by the manager (113 ) (174 ) 1,322,195 1,041,905 NET INVESTMENT INCOME (LOSS) 1,489,256 1,455,254 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 287,306 269,392 Change in unrealized appreciation (depreciation) in value of investments 22,970 1,965,541 NET GAIN (LOSS) ON INVESTMENTS 310,276 2,234,933 NCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS 1,799,532 3,690,187 Increase (decrease) in net assets from operations per unit Back-end Load 0.66 1.59 No-load 0.65 1.50 No-load with Reset 0.74 1.51 Platinum No-load 0.80 1.71 75/100 Series 0.16 0.34 75/100 Platinum No-load Series 0.13 0.25 100/100 Series 0.14 0.31 100/100 Platinum No-load Series 0.18 0.40 GLWB Series 0.03 n/a GLWB Platinum No-load Series (0.16 ) n/a Statement of changes in net assets for the periods ended June 30 NET ASSETS - beginning of period 143,035,813 108,928,597 ASSETS FROM OPERATIONS 1,799,532 3,690,187 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 18,549,919 25,122,257 Payments for units redeemed (30,777,968 ) (19,755,168 ) Net capital unit transactions (12,228,049 ) 5,367,089 NET ASSETS - end of period 132,607,296 117,985,873 6 Standard Life

Ideal Canadian Bond Fund Statement of portfolio investments as at June 30, 2011 Par Average Fair Issuer / Interest rate / Maturity date value cost ($) value ($) CANADIAN BONDS FEDERAL AND FEDERALLY GUARANTEED 22.75% Canada Housing Trust No. 1, 4.550%, 2012/12/15 510,000 536,271 532,173 Canada Housing Trust No. 1, 2.200%, 2014/03/15 11,560,000 11,614,813 11,649,191 Canada Housing Trust No. 1, 2.750%, 2016/06/15 9,510,000 9,598,823 9,587,402 Government of Canada, 2.000%, 2014/03/01 4,330,000 4,309,217 4,354,647 Government of Canada, 4.000%, 2041/06/01 3,740,000 4,080,340 4,050,420 PROVINCIAL AND PROVINCIALLY GUARANTEED 19.19% CDP Financial Inc., 4.600%, 2020/07/15 620,000 621,210 650,553 Financement-Québec, 3.500%, 2017/12/01 2,660,000 2,678,620 2,706,802 Financement-Québec, 5.250%, 2034/06/01 1,195,000 1,239,227 1,319,603 Province of British Columbia, 5.700%, 2029/06/18 1,465,000 1,656,071 1,744,535 Province of Ontario, 4.750%, 2013/06/02 3,245,000 3,464,783 3,429,266 Province of Ontario, 4.000%, 2021/06/02 5,295,000 5,304,313 5,361,178 Province of Ontario, 6.500%, 2029/03/08 2,315,000 2,847,998 2,966,188 Province of Ontario, 5.850%, 2033/03/08 255,000 312,880 309,250 Province of Ontario, 4.650%, 2041/06/02 2,105,000 2,190,127 2,209,579 Province of Quebec, 6.000%, 2029/10/01 585,000 641,231 709,057 Province of Quebec, 5.000%, 2041/12/01 3,320,000 3,476,112 3,639,545 Province of Saskatchewan, 4.750%, 2040/06/01 370,000 377,367 401,595 MUNICIPALS AND SCHOOLS 8.12% Municipal Finance Authority of British Columbia, 4.950%, 2027/12/01 675,000 668,483 724,412 Ontario School Boards Financing Corporation, 6.550%, 2026/10/19 1,569,428 1,762,948 1,823,382 Regional Municipality of Peel, 5.100%, 2040/06/29 340,000 346,756 361,791 Regional Municipality of York, 5.000%, 2019/04/29 900,000 925,076 975,814 Toronto, City of, 4.950%, 2018/06/27 1,240,000 1,247,783 1,347,544 Ville de Montréal, 4.950%, 2014/12/10 1,290,000 1,344,875 1,394,604 Ville de Montréal, 5.000%, 2018/12/01 2,345,000 2,377,323 2,544,078 Ville de Montréal, 4.500%, 2021/12/01 1,215,000 1,206,568 1,242,640 Winnipeg, City of, 5.200%, 2036/07/17 335,000 333,948 352,289 CORPORATE 43.89% 407 International Inc., 4.990%, 2020/06/16 325,000 324,799 348,811 Aéroports de Montréal, 5.472%, 2040/04/16 535,000 539,603 572,955 Alliance Pipeline Limited Partnership, 7.217%, 2025/12/31 586,878 633,575 692,947 American Express Canada Credit Corporation, 4.853%, 2014/10/03 1,055,000 1,096,575 1,111,881 Bank of America Corporation, 5.450%, 2014/09/17 595,000 618,198 622,324 Bank of Montreal, 5.050%, 2013/09/03 415,000 424,133 440,593 Bank of Montreal, 4.780%, 2014/04/30 665,000 703,557 707,441 Bank of Montreal, 3.979%, 2016/07/08 355,000 355,014 360,143 Bank of Montreal, 4.609%, 2025/09/10 245,000 245,000 244,785 Bank of Nova Scotia, (The), 4.990%, 2013/03/27 1,610,000 1,692,205 1,685,236 Bank of Nova Scotia, (The), 6.000%, 2013/10/03 610,000 627,030 656,822 Bank of Nova Scotia, (The), 4.940%, 2014/04/15 300,000 299,907 317,518 Bank of Nova Scotia, (The), 6.650%, 2016/01/22 660,000 670,925 748,255 Bank of Nova Scotia, (The), 3.610%, 2016/02/22 375,000 374,948 383,597 Bell Canada, 4.850%, 2014/06/30 660,000 695,521 698,359 Bell Canada, 3.600%, 2015/12/02 1,110,000 1,109,210 1,123,188 Bell Canada, 7.850%, 2031/04/02 95,000 92,259 110,803 Bell Canada, 7.300%, 2032/02/23 130,000 118,788 143,103 Bell Canada, 6.100%, 2035/03/16 745,000 720,287 735,563 Caisse centrale Desjardins, 3.788%, 2015/06/08 1,920,000 1,961,489 1,979,966 Caisse centrale Desjardins, 3.502%, 2017/10/05 90,000 88,193 89,502 Canadian Hydro Developers, Inc., 7.027%, 2018/06/11 525,000 525,000 564,630 Canadian Imperial Bank of Commerce, 3.300%, 2014/11/19 1,115,000 1,125,167 1,138,680 Canadian Imperial Bank of Commerce, 3.100%, 2015/03/02 910,000 905,017 921,205 Canadian Imperial Bank of Commerce, 3.150%, 2015/11/02 600,000 598,734 593,268 Canadian Imperial Bank of Commerce, 3.950%, 2017/07/14 1,330,000 1,327,180 1,364,586 Citigroup Finance Canada Inc., 6.750%, 2014/09/22 690,000 698,938 756,414 CU Inc., 4.883%, 2012/11/01 405,000 405,000 421,229 Enbridge Inc., 5.170%, 2016/05/19 270,000 269,843 293,030 Enbridge Inc., 4.770%, 2019/09/02 590,000 589,723 618,483 EPCOR Utilities Inc., 6.650%, 2038/04/15 400,000 425,728 484,552 GE Capital Canada Funding Company, 5.150%, 2013/06/06 1,800,000 1,877,876 1,895,311 GE Capital Canada Funding Company, 4.650%, 2015/02/11 665,000 695,125 701,317 GE Capital Canada Funding Company, 4.550%, 2017/01/17 1,580,000 1,641,557 1,639,583 GE Capital Canada Funding Company, 4.400%, 2018/02/08 340,000 339,473 346,528 GE Capital Canada Funding Company, 5.730%, 2037/10/22 1,185,000 1,163,634 1,205,342 Greater Toronto Airports Authority, 4.850%, 2017/06/01 455,000 448,526 490,330 Great-West Lifeco Inc., 6.140%, 2018/03/21 750,000 778,373 848,092 Health Montréal Collective Limited Partnership, 6.721%, 2049/09/30 1,005,000 1,005,000 1,031,220 Par Average Fair Issuer / Interest rate / Maturity date value cost ($) value ($) Holcim Finance (Canada) Inc., 5.900%, 2013/06/21 325,000 326,057 343,045 HSBC Bank Canada, 3.558%, 2017/10/04 1,010,000 997,787 1,008,212 IGM Financial Inc., 7.350%, 2019/04/08 575,000 682,163 682,183 John Deere Credit Inc., 2.400%, 2013/02/01 1,700,000 1,708,121 1,710,037 John Deere Credit Inc., 3.900%, 2013/07/29 445,000 447,301 460,229 John Deere Credit Inc., 5.450%, 2015/09/16 355,000 354,837 390,488 Laurentian Bank of Canada, 3.700%, 2015/11/02 580,000 578,451 580,678 Loblaw Companies Limited, 5.900%, 2036/01/18 1,000,000 948,655 965,297 Manulife Financial Corporation, 4.896%, 2014/06/02 1,275,000 1,309,604 1,337,375 Manulife Financial Corporation, 4.079%, 2015/08/20 280,000 280,000 285,469 METRO INC., 5.970%, 2035/10/15 225,000 175,634 225,215 National Bank of Canada, 5.550%, 2013/11/15 1,720,000 1,815,543 1,837,799 National Bank of Canada, 3.147%, 2015/02/11 535,000 535,000 542,112 National Bank of Canada, 4.030%, 2015/05/26 610,000 620,215 636,006 NorthwestConnect General Partnership, 5.950%, 2041/04/30 500,000 503,285 534,241 Rogers Communications Inc., 5.800%, 2016/05/26 545,000 543,730 595,780 Rogers Communications Inc., 5.380%, 2019/11/04 805,000 822,226 834,626 Rogers Communications Inc., 4.700%, 2020/09/29 330,000 329,819 321,738 Rogers Communications Inc., 6.560%, 2041/03/22 335,000 335,000 337,050 Royal Bank of Canada, 5.000%, 2013/06/06 1,835,000 1,897,618 1,927,866 Royal Bank of Canada, 4.970%, 2014/06/05 1,385,000 1,485,422 1,483,611 Royal Bank of Canada, 4.350%, 2015/06/15 2,105,000 2,141,691 2,188,140 Royal Bank of Canada, 3.660%, 2017/01/25 750,000 751,095 761,357 Shaw Communications Inc., 6.500%, 2014/06/02 465,000 492,681 506,807 Shaw Communications Inc., 5.650%, 2019/10/01 595,000 600,187 610,951 Shaw Communications Inc., 5.500%, 2020/12/07 290,000 288,942 290,224 Sun Life Assurance Company of Canada, 6.150%, 2012/06/30 615,000 657,678 637,994 Suncor Energy Inc., 5.390%, 2037/03/26 905,000 832,786 918,891 TELUS Corporation, 5.050%, 2019/12/04 570,000 573,538 584,016 Toronto-Dominion Bank, (The), 4.854%, 2013/02/13 730,000 750,257 764,932 Toronto-Dominion Bank, (The), 5.690%, 2013/06/03 1,480,000 1,573,900 1,573,753 Toronto-Dominion Bank, (The), 4.779%, 2016/12/14 300,000 287,966 314,480 TransCanada PipeLines Limited, 8.290%, 2026/02/05 220,000 263,151 294,030 TransCanada PipeLines Limited, 6.280%, 2028/05/26 340,000 321,368 382,890 TransCanada PipeLines Limited, 6.500%, 2030/12/09 105,000 114,188 121,948 TransCanada PipeLines Limited, 8.050%, 2039/02/17 240,000 286,913 340,338 Wells Fargo Financial Canada Corporation, 3.970%, 2014/11/03 1,275,000 1,289,055 1,312,631 Wells Fargo Financial Canada Corporation, 3.700%, 2016/03/30 470,000 470,053 473,889 ASSET-BACKED SECURITIES 3.61% CARDS II Trust, 3.048%, 2013/05/15 1,070,000 1,070,000 1,088,152 CNH Capital Canada Receivables Trust, 2.598%, 2014/12/15 1,420,000 1,421,136 1,428,064 Gloucester Credit Card Trust, 5.335%, 2013/05/15 95,000 95,000 99,654 Golden Credit Card Trust, 5.421%, 2013/04/15 665,000 704,840 703,851 Master Credit Card Trust, 5.237%, 2013/05/21 1,245,000 1,327,700 1,316,103 SCORE Trust, 4.949%, 2014/02/20 140,000 140,000 147,881 TOTAL CANADIAN BONDS 97.56% 126,524,866 129,375,163 U.S. BONDS CORPORATE 0.69% Goldman Sachs Group, Inc., (The), 5.200%, 2017/04/19 225,000 204,525 216,772 Goldman Sachs Group, Inc., (The), 5.000%, 2018/05/03 700,000 698,894 698,638 TOTAL U.S. BONDS 0.69% 903,419 915,410 FOREIGN BONDS SUPRANATIONALS 0.16% Inter-American Development Bank, 4.400%, 2026/01/26 205,000 192,916 208,815 TOTAL FOREIGN BONDS 0.16% 192,916 208,815 TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 98.41% 127,621,201 130,499,388 SHORT-TERM INVESTMENTS National Bank of Canada, 1.000%, 2011/07/04 650,000 650,000 650,000 Royal Bank of Canada, 0.950%, 2011/07/04 650,000 650,000 650,000 TOTAL SHORT-TERM INVESTMENTS 0.98% 1,300,000 1,300,000 TOTAL INVESTMENTS 99.39% 128,921,201 131,799,388 Other assets, less liabilities 0.61% 807,908 807,908 NET ASSETS 100.00% 129,729,109 132,607,296 Standard Life 7

Specific note to interim unaudited financial statements Ideal Canadian Bond Fund Financial instrument risks (note 7) as at June 30, 2011 and December 31, 2010 Fair value measurements The following table illustrates the classification of the Fund s financial instruments within the fair value hierarchy: As at June 30, 2011 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 1,300,000-1,300,000 Bonds - 127,145,790 3,353,598 130,499,388 As at December 31, 2010 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 3,345,534-3,345,534 Bonds - 137,939,518 2,293,589 140,233,107 The reconciliation of Level 3 fair value measurements was as follows: Bonds as at June 30, 2011 ($) December 31, 2010 ($) Balance beginning of period 2,293,589 1,423,470 Purchases 1,005,000 1,782,024 Sales - (623,900) Net transfers into and/or out of Level 3 - (430,855) Net realized gain (loss) - 2,690 Change in unrealized appreciation (depreciation) 55,009 140,160 Balance end of period 3,353,598 2,293,589 Bonds with a fair value of nil (December 31, 2010 - $430,855) were transferred from Level 3 to Level 2 during the period as additional pricing sources became available. Market risk The Fund is not significantly exposed to market risk since it does not hold any equity investments. Interest rate risk The Fund is exposed to interest rate risk since a significant portion of its investments is interest bearing. The table below summarizes the Fund s exposure to interest rate risk by remaining term to maturity. Interest rate risk exposure as at Less than 1 year ($) 1-5 years ($) 5-10 years ($) June 30, 2011 1,300,000 72,515,263 26,579,855 December 31, 2010 3,345,534 68,660,638 33,121,291 Interest rate risk exposure as at 10-20 years ($) Greater than 20 years ($) Total ($) June 30, 2011 11,266,433 20,137,837 131,799,388 December 31, 2010 13,577,853 24,873,325 143,578,641 As at June 30, 2011, should current interest rates have increased or decreased by 1%, assuming a parallel shift in the yield curve, with all other variables remaining constant, the decrease or increase in net assets would amount to approximately $8,068,000 (December 31, 2010 - $9,411,000). The Fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund is not significantly exposed to currency risk since it holds assets and liabilities predominantly denominated in Canadian dollars, the functional currency. Credit risk The Fund s credit risk exposure is derived from its holdings in other assets and/or debt securities and/or forward foreign currency contracts, if any, for which the carrying amount represents the maximum credit risk exposure The credit risk exposure of debt securities by credit rating was as follows: % of debt securities as at Credit ratings June 30, 2011 December 31, 2010 AAA 30 37 AA 37 35 A 24 21 BBB 9 7 Total 100 100 8 Standard Life

Ideal Corporate High Yield Bond Fund Statement of net assets as at June 30, 2011 and December 31, 2010 ASSETS Investments, at fair value * 87,652,740 85,508,782 Cash 12,450 - Subscriptions receivable 164,251 115,187 Receivable from investments sold 21,569 - Other accounts receivable 426 60 87,851,436 85,624,029 LIABILITIES Bank indebtedness - 600 Redemptions payable 194,057 68,045 Payable on investments purchased 51,531 - Management fees payable 7,946 958 Audit fees payable 2,229 - Other liabilities 4,752 3,100 260,515 72,703 NET ASSETS 87,590,921 85,551,326 Net assets per unit (note 3) Back-end Load 16.65 16.36 No-load 16.36 16.09 No-load with Reset 16.57 16.29 Platinum No-load 16.85 16.53 75/100 Series 12.53 12.32 75/100 Platinum No-load Series 10.78 10.57 100/100 Series 12.46 12.27 100/100 Platinum No-load Series 10.74 10.55 * Investments, at average cost 85,090,039 82,859,850 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 1,308,345 936,193 Other income (loss) 5,248 3,551 1,313,593 939,744 EXPENSES (note 5) Management fees 96,919 45,127 Audit fees 2,445 1,985 Other operating expenses 70 83 99,434 47,195 Less: expenses absorbed by the manager (70) (83) 99,364 47,112 NET INVESTMENT INCOME (LOSS) 1,214,229 892,632 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 271,011 100,731 Change in unrealized appreciation (depreciation) in value of investments (86,231) 1,383,027 NET GAIN (LOSS) ON INVESTMENTS 184,780 1,483,758 ASSETS FROM OPERATIONS 1,399,009 2,376,390 Increase (decrease) in net assets from operations per unit Back-end Load 0.28 0.69 No-load 0.26 0.66 No-load with Reset 0.25 0.67 Platinum No-load 0.31 0.71 75/100 Series 0.21 0.49 75/100 Platinum No-load Series 0.20 0.39 100/100 Series 0.19 0.47 100/100 Platinum No-load Series 0.19 0.54 Statement of changes in net assets for the periods ended June 30 NET ASSETS - beginning of period 85,551,326 48,761,353 ASSETS FROM OPERATIONS 1,399,009 2,376,390 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 17,516,935 17,784,280 Payments for units redeemed (16,876,349 ) (8,467,112 ) Net capital unit transactions 640,586 9,317,168 NET ASSETS - end of period 87,590,921 60,454,911 Standard Life 9

Ideal Corporate High Yield Bond Fund Statement of portfolio investments as at June 30, 2011 Average Fair Issuer Units cost ($) value ($) Standard Life Corporate Bond Fund, A-Series 7,843,505 85,090,039 87,652,740 TOTAL INVESTMENTS 100.07% 85,090,039 87,652,740 Other assets, less liabilities -0.07% (61,819 ) (61,819 ) NET ASSETS 100.00% 85,028,220 87,590,921 Top Holdings of the Underlying Fund as at June 30, 2011 (unaudited) Average Fair % Net assets of Issuer / Interest rate / Maturity date Par value cost ($) value ($) underlying fund Standard Life Corporate Bond Fund Toronto-Dominion Bank, (The), 4.779%, 2016/12/14 4,350,000 4,160,441 4,559,953 1.94 Royal Bank of Canada, 4.350%, 2015/06/15 4,080,000 4,150,592 4,241,146 1.81 IGM Financial Inc., 6.580%, 2018/03/07 3,700,000 4,093,137 4,197,664 1.79 American Express Canada Credit Corporation, 4.853%, 2014/10/03 3,850,000 3,850,000 4,057,576 1.73 Loblaw Companies Limited, 6.050%, 2034/06/09 3,500,000 3,445,560 3,452,598 1.47 Government of Canada, 3.250%, 2021/06/01 3,400,000 3,392,500 3,439,553 1.47 Laurentian Bank of Canada, 3.700%, 2015/11/02 3,400,000 3,378,457 3,403,977 1.45 Sobeys Inc., 7.160%, 2018/02/26 2,900,000 3,165,445 3,360,979 1.43 Toronto-Dominion Bank, (The), 5.763%, 2017/12/18 3,015,000 2,897,829 3,304,070 1.41 Citigroup Finance Canada Inc., 6.750%, 2014/09/22 3,000,000 3,080,440 3,288,758 1.40 Richardson International Ltd., 5.486%, 2014/09/25 3,100,000 3,100,000 3,285,587 1.40 Royal Bank of Canada, 0.950%, 2011/07/04 3,225,000 3,225,000 3,225,000 1.38 National Bank of Canada, 1.000%, 2011/07/04 3,225,000 3,225,000 3,225,000 1.38 Manulife Financial Corporation, 4.079%, 2015/08/20 3,000,000 3,012,350 3,058,592 1.30 Royal Bank of Canada, 3.660%, 2017/01/25 3,000,000 3,021,030 3,045,428 1.30 Bank of America Corporation, 4.360%, 2015/09/21 3,000,000 2,984,900 3,010,711 1.28 Government of Canada, 0.976%, 2011/08/04 3,000,000 2,992,470 2,997,351 1.28 Goldman Sachs Group, Inc., (The), 5.000%, 2018/05/03 3,000,000 2,995,260 2,994,162 1.28 Goldman Sachs Group, Inc., (The), 4.100%, 2015/11/03 3,000,000 2,999,730 2,983,436 1.27 Canadian Imperial Bank of Commerce, 3.150%, 2015/11/02 3,000,000 2,993,670 2,966,341 1.26 TD Capital Trust III, 7.243%, 2018/12/31 2,505,000 2,680,844 2,950,038 1.26 Bank of Montreal, 6.020%, 2018/05/02 2,500,000 2,798,625 2,858,492 1.22 Manulife Financial Capital Trust II, 7.405%, 2019/12/31 2,475,000 2,571,270 2,818,246 1.20 Molson Coors Capital Finance ULC, 5.000%, 2015/09/22 2,600,000 2,688,184 2,758,888 1.18 Rogers Communications Inc., 5.800%, 2016/05/26 2,500,000 2,672,120 2,732,934 1.17 10 Standard Life

Specific note to interim unaudited financial statements Ideal Corporate High Yield Fund Financial instrument risks (note 7) as at June 30, 2011 and December 31, 2010 Fair value measurements As at June 30, 2011 and December 31, 2010, the Fund s financial instruments were classified as Level 1 within the fair value hierarchy. Market risk The Fund and the underlying fund are not significantly exposed to market risk since they do not hold any equity investments. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund has indirect interest rate risk exposure since a significant portion of the underlying fund s investments is interest bearing. The table below summarizes the Fund s indirect exposure to interest rate risk by remaining term to maturity. Currency risk The Fund s direct exposure to currency risk at June 30, 2011 is minimal as the units of the Fund are valued in Canadian dollars, the functional currency. The Fund is not significantly exposed to indirect currency risk since the underlying fund holds assets and liabilities predominantly denominated in Canadian dollars. Credit risk The Fund s direct credit risk exposure is not significant and is limited to its other assets for which the carrying amount represents the maximum credit risk exposure. The Fund also has indirect credit risk exposure from the underlying fund s holdings in other assets and/or debt securities and/or forward foreign currency contracts, if any. Interest rate risk exposure as at Less than 1 year ($) 1-5 years ($) 5-10 years ($) June 30, 2011 4,199,268 33,238,250 30,538,281 December 31, 2010 3,589,821 31,842,790 28,775,242 Interest rate risk exposure as at 10-20 years ($) Greater than 20 years ($) Total ($) June 30, 2011 8,318,848 11,213,358 87,508,005 December 31, 2010 8,407,304 11,810,484 84,425,641 As at June 30, 2011, should current interest rates of the underlying fund s debt securities have increased or decreased by 1%, assuming a parallel shift in the yield curve, with all other variables remaining constant, the decrease or increase in net assets would amount to approximately $5,270,000 (December 31, 2010 - $5,220,000). The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Standard Life 11

Ideal International Bond Fund Statement of net assets as at June 30, 2011 and December 31, 2010 ASSETS Investments, at fair value * 4,720,386 4,835,827 Subscriptions receivable 10,500 45,312 Other accounts receivable 7-4,730,893 4,881,139 LIABILITIES Redemptions payable 1,211 53,169 Payable on investments purchased 10,500 - Management fees payable 535 72 Audit fees payable 2,229 - Other liabilities 443 289 14,918 53,530 NET ASSETS 4,715,975 4,827,609 Net assets per unit (note 3) Back-end Load 12.47 12.40 No-load 12.27 12.21 No-load with Reset 12.40 12.34 Platinum No-load 12.64 12.55 75/100 Series 9.09 9.05 75/100 Platinum No-load Series 9.66 9.60 100/100 Series 9.07 9.04 100/100 Platinum No-load Series 9.63 9.57 * Investments, at average cost 4,974,192 5,144,279 Statement of operations for the periods ended June 30 INVESTMENT INCOME Distribution income from underlying funds 25,469 5,548 Other income (loss) 50 33 25,519 5,581 EXPENSES (note 5) Management fees 6,925 6,167 Audit fees 2,419 1,985 Other operating expenses 4 8 9,348 8,160 Less: expenses absorbed by the manager (4) (8) 9,344 8,152 NET INVESTMENT INCOME (LOSS) 16,175 (2,571 ) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments (50,710 ) (115,658 ) Change in unrealized appreciation (depreciation) in value of investments 54,646 187,509 NET GAIN (LOSS) ON INVESTMENTS 3,936 71,851 ASSETS FROM OPERATIONS 20,111 69,280 Increase (decrease) in net assets from operations per unit Back-end Load 0.05 0.16 No-load 0.01 0.23 No-load with Reset 0.04 0.16 Platinum No-load 0.19 0.29 75/100 Series 0.08 0.21 75/100 Platinum No-load Series (0.50) 0.22 100/100 Series 0.03 (0.04) 100/100 Platinum No-load Series 0.40 0.21 Statement of changes in net assets for the periods ended June 30 NET ASSETS - beginning of period 4,827,609 5,325,123 ASSETS FROM OPERATIONS 20,111 69,280 CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 747,935 962,220 Payments for units redeemed (879,680 ) (1,476,577 ) Net capital unit transactions (131,745 ) (514,357 ) NET ASSETS - end of period 4,715,975 4,880,046 12 Standard Life

Ideal International Bond Fund Statement of portfolio investments as at June 30, 2011 Average Fair Issuer Units cost ($) value ($) Standard Life International Bond Fund, A-Series 440,121 4,974,192 4,720,386 TOTAL INVESTMENTS 100.09% 4,974,192 4,720,386 Other assets, less liabilities -0.09% (4,411 ) (4,411 ) NET ASSETS 100.00% 4,969,781 4,715,975 Top Holdings of the Underlying Fund as at June 30, 2011 (unaudited) Average Fair % Net assets of Issuer / Interest rate / Maturity date / Currency Par value cost ($) value ($) underlying fund Standard Life International Bond Fund Government of Japan, 0.500%, 2014/12/20, (JPY) 547,000,000 6,588,954 6,589,832 8.17 United Kingdom Gilt, 4.750%, 2020/03/07, (GBP) 3,021,000 5,828,180 5,213,490 6.46 Province of Quebec, 3.625%, 2015/02/10, (EUR) 3,300,000 5,069,339 4,781,559 5.93 United States Treasury, 1.375%, 2012/09/15, (USD) 4,875,000 4,977,159 4,763,650 5.91 United States Treasury, 4.375%, 2041/05/15, (USD) 4,800,000 4,771,179 4,622,378 5.73 Province of Quebec, 1.600%, 2013/05/09, (JPY) 377,000,000 3,708,152 4,611,047 5.72 Province of Ontario, 0.000%, 2011/07/29, (USD) 4,500,000 4,366,744 4,339,970 5.38 United States Treasury, 4.250%, 2040/11/15, (USD) 4,375,000 4,111,320 4,124,745 5.11 Government of France, 4.000%, 2038/10/25, (EUR) 2,329,000 3,269,345 3,172,718 3.93 Province of Quebec, 7.500%, 2029/09/15, (USD) 2,144,000 3,102,998 2,787,673 3.46 Government of France, 2.500%, 2020/10/25, (EUR) 1,930,000 2,406,966 2,513,487 3.12 United States Treasury, 2.625%, 2020/11/15, (USD) 2,475,000 2,288,606 2,299,112 2.85 Bundesrepublik Deutschland, 3.750%, 2013/07/04, (EUR) 1,425,000 2,162,983 2,079,932 2.58 Province of Ontario, 2.700%, 2015/06/16, (USD) 2,000,000 2,124,109 2,009,574 2.49 United States Treasury, 3.625%, 2021/02/15, (USD) 1,950,000 1,950,748 1,961,148 2.43 Province of Quebec, 3.500%, 2020/07/29, (USD) 1,925,000 1,998,104 1,841,230 2.28 Province of Ontario, 4.000%, 2019/12/03, (EUR) 1,200,000 1,877,461 1,730,682 2.15 Government of Canada, 1.500%, 2012/12/01, (CAD) 1,500,000 1,500,956 1,501,500 1.86 Government of Norway, 4.500%, 2019/05/22, (NOK) 7,675,000 1,483,579 1,495,583 1.85 Government of Canada, 3.500%, 2020/01/13, (EUR) 1,025,000 1,515,216 1,477,573 1.83 Province of Ontario, 3.150%, 2017/12/15, (USD) 1,425,000 1,435,814 1,406,176 1.74 Province of British Columbia, 2.100%, 2016/05/18, (USD) 1,425,000 1,369,663 1,379,737 1.71 Province of New Brunswick, 5.200%, 2017/02/21, (USD) 1,207,000 1,336,924 1,335,508 1.66 United States Treasury, 3.875%, 2040/08/15, (USD) 1,450,000 1,366,434 1,280,524 1.59 The Commonwealth of Australia, 6.500%, 2013/05/15, (AUD) 1,180,000 1,036,071 1,258,990 1.56 Standard Life 13

Specific note to interim unaudited financial statements Ideal International Bond Fund Financial instrument risks (note 7) as at June 30, 2011 and December 31, 2010 Fair value measurements As at June 30, 2011 and December 31, 2010, the Fund s financial instruments were classified as Level 1 within the fair value hierarchy. Market risk The Fund and the underlying fund are not significantly exposed to market risk since they do not hold any equity investments. Interest rate risk The Fund is not exposed to direct interest rate risk since its investments are non-interest bearing. The Fund has indirect interest rate risk exposure since a significant portion of the underlying fund s investments is interest bearing. The table below summarizes the Fund s indirect exposure to interest rate risk by remaining term to maturity. Interest rate risk exposure as at Less than 1 year ($) 1-5 years ($) 5-10 years ($) June 30, 2011 341,761 1,794,211 1,534,113 December 31, 2010 44,171 1,904,500 1,795,168 Interest rate risk exposure as at 10-20 years ($) Greater than 20 years ($) Total ($) June 30, 2011 163,138 874,099 4,707,322 December 31, 2010 182,304 754,251 4,680,394 As at June 30, 2011, should current interest rates of the underlying fund s debt securities have increased or decreased by 1%, assuming a parallel shift in the yield curve, with all other variables remaining constant, the decrease or increase in net assets would amount to approximately $323,000 (December 31, 2010 - $336,000). The underlying fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund s direct exposure to currency risk is minimal as the units of the Fund are valued in Canadian dollars, the functional currency. The Fund is exposed to indirect currency risk since the underlying fund holds assets and liabilities denominated in currency(ies) other than Canadian dollars. The table below summarizes the Fund s indirect exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 5% fluctuation in this (these) currency(ies) relative to the Canadian dollar, all other variables held constant. As at June 30, 2011 USD EUR JPY GBP Other currencies Net assets by currency ($) 2,227,314 1,051,499 699,233 332,122 279,310 Impact on net assets (+/- 5%) ($) 111,366 52,575 34,962 16,606 13,966 As at December 31, 2010 USD EUR JPY GBP Other currencies Net assets by currency ($) 2,089,811 1,267,576 774,691 357,013 231,184 Impact on net assets (+/- 5%) ($) 104,491 63,379 38,735 17,851 11,559 In practice, actual results may differ materially from this sensitivity analysis. Credit risk The Fund s direct credit risk exposure is not significant and is limited to its other assets for which the carrying amount represents the maximum credit risk exposure. The Fund also has indirect credit risk exposure from the underlying fund s holdings in other assets and/or debt securities and/or forward foreign currency contracts, if any. 14 Standard Life

Ideal Income Balanced Fund Statement of net assets as at June 30, 2011 and December 31, 2010 ASSETS Investments, at fair value * 154,000,275 150,482,111 Short-term investments 14,091,420 9,628,390 Cash 300,363 1,041,821 Subscriptions receivable 55,350 395,204 Interest accrued 495,356 451,196 Dividends receivable 296,671 289,467 Receivable from investments sold 3,419,556 - Other accounts receivable 19,376 19,376 172,678,367 162,307,565 LIABILITIES Redemptions payable 220,061 465,534 Payable on investments purchased 4,016,889 763,056 Management fees payable 169,418 21,618 Custodian fees payable 113 253 Audit fees payable 3,182 - Other liabilities 120,334 98,201 4,529,997 1,348,662 NET ASSETS 168,148,370 160,958,903 Net assets per unit (note 3) Back-end Load 17.88 17.39 No-load 17.59 17.13 No-load with Reset 17.76 17.29 Platinum No-load 18.20 17.67 75/100 Series 12.28 11.95 75/100 Platinum No-load Series 10.91 10.59 100/100 Series 12.21 11.91 100/100 Platinum No-load Series 10.88 10.57 GLWB Series 10.04 n/a GLWB Platinum No-load Series 10.05 n/a * Investments, at average cost 140,859,957 137,585,555 Statement of operations for the periods ended June 30 INVESTMENT INCOME Interest 1,639,718 1,479,730 Dividends 1,366,852 1,173,815 Foreign exchange gain (loss) (23,901 ) 50,099 Other income (loss) 36 133 Less: foreign withholding taxes (27,191 ) (32,968 ) 2,955,514 2,670,809 EXPENSES (note 5) Management fees 2,216,497 1,761,167 Custodian fees 7,378 5,959 Audit fees 3,518 2,938 Interest 955 77 Other operating expenses 138 213 2,228,486 1,770,354 Less: expenses absorbed by the manager (138 ) (213 ) 2,228,348 1,770,141 NET INVESTMENT INCOME (LOSS) 727,166 900,668 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 3,494,893 54,880 Net realized gain (loss) on forward foreign currency contracts 42,586 (34,870 ) Change in unrealized appreciation (depreciation) in value of investments 274,055 (977,336 ) Transaction costs (note 2) (98,606 ) (7,924 ) NET GAIN (LOSS) ON INVESTMENTS 3,712,928 (965,250 ) ASSETS FROM OPERATIONS 4,440,094 (64,582 ) Increase (decrease) in net assets from operations per unit Back-end Load 0.49 0.01 No-load 0.46 - No-load with Reset 0.47 (0.02) Platinum No-load 0.49 0.07 75/100 Series 0.32 (0.26) 75/100 Platinum No-load Series 0.32 (0.11 ) 100/100 Series 0.30 (0.16 ) 100/100 Platinum No-load Series 0.32 (0.08) GLWB Series (0.01 ) n/a GLWB Platinum No-load Series 0.04 n/a Statement of changes in net assets for the periods ended June 30 NET ASSETS - beginning of period 160,958,903 133,004,199 ASSETS FROM OPERATIONS 4,440,094 (64,582 ) CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 21,600,849 26,450,715 Payments for units redeemed (18,851,476 ) (15,037,138 ) Net capital unit transactions 2,749,373 11,413,577 NET ASSETS - end of period 168,148,370 144,353,194 Standard Life 15

Ideal Income Balanced Fund Statement of portfolio investments as at June 30, 2011 Par Average Fair Issuer / Interest rate / Maturity date value cost ($) value ($) CANADIAN BONDS FEDERAL AND FEDERALLY GUARANTEED 11.30% Canada Housing Trust No. 1, 4.550%, 2012/12/15 2,405,000 2,535,361 2,509,562 Canada Housing Trust No. 1, 2.200%, 2014/03/15 5,905,000 5,933,270 5,950,560 Canada Housing Trust No. 1, 2.750%, 2016/06/15 5,170,000 5,218,288 5,212,079 Government of Canada, 2.000%, 2014/03/01 370,000 368,391 372,106 Government of Canada, 4.000%, 2017/06/01 2,400,000 2,549,928 2,592,674 Government of Canada, 4.000%, 2041/06/01 2,180,000 2,378,380 2,360,940 PROVINCIAL AND PROVINCIALLY GUARANTEED 6.16% CDP Financial Inc., 4.600%, 2020/07/15 355,000 355,688 372,494 Financement-Québec, 5.250%, 2034/06/01 610,000 632,576 673,605 Province of British Columbia, 5.700%, 2029/06/18 735,000 824,159 875,244 Province of Ontario, 4.000%, 2021/06/02 2,605,000 2,618,617 2,637,558 Province of Ontario, 6.500%, 2029/03/08 575,000 710,856 736,742 Province of Ontario, 5.850%, 2033/03/08 130,000 159,507 157,657 Province of Ontario, 4.650%, 2041/06/02 1,310,000 1,360,352 1,375,083 Province of Quebec, 4.250%, 2021/12/01 410,000 422,517 420,924 Province of Quebec, 5.000%, 2041/12/01 2,470,000 2,581,518 2,707,734 Province of Saskatchewan, 4.750%, 2040/06/01 365,000 372,267 396,168 MUNICIPALS AND SCHOOLS 4.44% Municipal Finance Authority of British Columbia, 4.950%, 2027/12/01 440,000 438,522 472,209 Ontario School Boards Financing Corporation, 6.550%, 2026/10/19 854,522 957,192 992,794 Regional Municipality of Peel, 5.100%, 2040/06/29 185,000 188,676 196,857 Regional Municipality of York, 5.000%, 2019/04/29 720,000 746,207 780,652 Toronto, City of, 4.950%, 2018/06/27 835,000 836,061 907,418 Ville de Montréal, 4.950%, 2014/12/10 845,000 879,829 913,520 Ville de Montréal, 5.000%, 2018/12/01 1,640,000 1,668,286 1,779,227 Ville de Montréal, 4.500%, 2021/12/01 1,200,000 1,191,672 1,227,298 Winnipeg, City of, 5.200%, 2036/07/17 190,000 189,403 199,806 CORPORATE 20.01% 407 International Inc., 4.990%, 2020/06/16 190,000 189,882 203,920 Aéroports de Montréal, 5.472%, 2040/04/16 220,000 221,892 235,607 Alliance Pipeline Limited Partnership, 7.217%, 2025/12/31 54,892 54,892 64,813 American Express Canada Credit Corporation, 4.853%, 2014/10/03 1,035,000 1,077,649 1,090,803 American Express Canada Credit Corporation, 3.600%, 2016/06/03 230,000 229,938 228,750 Bank of America Corporation, 5.450%, 2014/09/17 330,000 342,866 345,155 Bank of Montreal, 5.050%, 2013/09/03 415,000 421,747 440,593 Bank of Montreal, 4.780%, 2014/04/30 475,000 502,541 505,315 Bank of Montreal, 4.870%, 2015/04/22 195,000 207,230 207,928 Bank of Montreal, 3.979%, 2016/07/08 195,000 195,008 197,825 Bank of Montreal, 4.609%, 2025/09/10 125,000 125,000 124,891 Bank of Nova Scotia, (The), 4.990%, 2013/03/27 985,000 1,038,922 1,031,029 Bank of Nova Scotia, (The), 6.000%, 2013/10/03 615,000 634,676 662,206 Bank of Nova Scotia, (The), 3.610%, 2016/02/22 205,000 204,971 209,700 Bell Canada, 4.850%, 2014/06/30 365,000 384,644 386,214 Bell Canada, 3.600%, 2015/12/02 325,000 324,592 328,861 Bell Canada, 3.650%, 2016/05/19 300,000 299,784 301,861 Bell Canada, 7.850%, 2031/04/02 105,000 101,968 122,467 Bell Canada, 7.300%, 2032/02/23 115,000 105,081 126,591 Bell Canada, 6.100%, 2035/03/16 260,000 261,002 256,706 Caisse centrale Desjardins, 3.788%, 2015/06/08 480,000 495,879 494,992 Caisse centrale Desjardins, 3.502%, 2017/10/05 260,000 254,779 258,562 Canadian Hydro Developers, Inc., 7.027%, 2018/06/11 450,000 450,000 483,969 Canadian Imperial Bank of Commerce, 3.050%, 2013/06/03 750,000 760,988 763,740 Canadian Imperial Bank of Commerce, 3.300%, 2014/11/19 415,000 414,888 423,814 Canadian Imperial Bank of Commerce, 3.100%, 2015/03/02 530,000 527,034 536,526 Canadian Imperial Bank of Commerce, 3.150%, 2015/11/02 310,000 309,346 306,522 Canadian Imperial Bank of Commerce, 3.950%, 2017/07/14 705,000 703,505 723,333 Canadian Imperial Bank of Commerce, 6.000%, 2018/06/06 120,000 119,675 134,984 Citigroup Finance Canada Inc., 6.750%, 2014/09/22 430,000 438,665 471,389 CU Inc., 4.883%, 2012/11/01 450,000 450,000 468,032 Enbridge Inc., 5.170%, 2016/05/19 160,000 159,907 173,648 Enbridge Inc., 4.770%, 2019/09/02 395,000 394,814 414,069 EPCOR Utilities Inc., 6.650%, 2038/04/15 175,000 189,826 211,991 GE Capital Canada Funding Company, 5.150%, 2013/06/06 1,070,000 1,104,549 1,126,657 GE Capital Canada Funding Company, 4.650%, 2015/02/11 365,000 381,535 384,934 GE Capital Canada Funding Company, 4.550%, 2017/01/17 265,000 275,324 274,993 GE Capital Canada Funding Company, 4.400%, 2018/02/08 175,000 174,729 178,360 GE Capital Canada Funding Company, 5.730%, 2037/10/22 345,000 338,064 350,922 Greater Toronto Airports Authority, 4.850%, 2017/06/01 295,000 292,849 317,906 Greater Toronto Airports Authority, 5.630%, 2040/06/07 165,000 164,833 180,235 Greater Toronto Airports Authority, 5.300%, 2041/02/25 140,000 139,958 146,029 Health Montréal Collective Limited Partnership, 6.721%, 2049/09/30 565,000 565,000 579,740 Holcim Finance (Canada) Inc., 5.900%, 2013/06/21 695,000 702,329 733,588 HSBC Bank Canada, 3.558%, 2017/10/04 230,000 230,000 229,593 IGM Financial Inc., 7.350%, 2019/04/08 705,000 835,213 836,416 Par value Average Fair Issuer / Interest rate / Maturity date or shares cost ($) value ($) John Deere Credit Inc., 2.400%, 2013/02/01 540,000 539,910 543,188 John Deere Credit Inc., 3.900%, 2013/07/29 265,000 266,410 274,069 John Deere Credit Inc., 5.450%, 2015/09/16 1,080,000 1,152,613 1,187,962 Laurentian Bank of Canada, 3.700%, 2015/11/02 300,000 299,199 300,351 Loblaw Companies Limited, 5.900%, 2036/01/18 820,000 757,053 791,543 Manulife Financial Corporation, 4.896%, 2014/06/02 770,000 793,986 807,670 Manulife Financial Corporation, 4.079%, 2015/08/20 225,000 225,000 229,394 METRO INC., 5.970%, 2035/10/15 190,000 149,937 190,182 National Bank of Canada, 5.550%, 2013/11/15 990,000 1,029,202 1,057,803 National Bank of Canada, 3.147%, 2015/02/11 305,000 305,000 309,054 National Bank of Canada, 4.030%, 2015/05/26 220,000 220,000 229,379 NorthwestConnect General Partnership, 5.950%, 2041/04/30 470,000 473,088 502,186 Rogers Communications Inc., 5.800%, 2016/05/26 320,000 319,254 349,816 Rogers Communications Inc., 5.380%, 2019/11/04 165,000 164,886 171,072 Rogers Communications Inc., 4.700%, 2020/09/29 150,000 149,918 146,245 Rogers Communications Inc., 6.560%, 2041/03/22 185,000 185,000 186,132 Royal Bank of Canada, 5.000%, 2013/06/06 725,000 760,803 761,691 Royal Bank of Canada, 4.970%, 2014/06/05 815,000 871,166 873,028 Royal Bank of Canada, 4.350%, 2015/06/15 435,000 437,088 452,181 Royal Bank of Canada, 3.660%, 2017/01/25 440,000 440,634 446,663 Shaw Communications Inc., 6.500%, 2014/06/02 280,000 296,194 305,174 Shaw Communications Inc., 5.650%, 2019/10/01 345,000 347,955 354,249 Shaw Communications Inc., 5.500%, 2020/12/07 145,000 144,471 145,112 Sun Life Assurance Company of Canada, 6.150%, 2012/06/30 80,000 85,671 82,991 Suncor Energy Inc., 5.390%, 2037/03/26 300,000 299,160 304,605 TELUS Corporation, 5.050%, 2019/12/04 120,000 119,303 122,951 Toronto-Dominion Bank, (The), 4.854%, 2013/02/13 325,000 335,518 340,552 Toronto-Dominion Bank, (The), 5.690%, 2013/06/03 820,000 872,030 871,944 Toronto-Dominion Bank, (The), 4.970%, 2015/10/30 400,000 422,920 424,495 Toronto-Dominion Bank, (The), 4.779%, 2016/12/14 515,000 510,472 539,857 TransCanada PipeLines Limited, 8.290%, 2026/02/05 210,000 251,189 280,665 TransCanada PipeLines Limited, 6.280%, 2028/05/26 357,000 396,785 402,035 TransCanada PipeLines Limited, 6.500%, 2030/12/09 115,000 125,063 133,562 TransCanada PipeLines Limited, 8.050%, 2039/02/17 205,000 250,362 290,705 Wells Fargo Financial Canada Corporation, 3.970%, 2014/11/03 680,000 684,221 700,070 Wells Fargo Financial Canada Corporation, 3.700%, 2016/03/30 255,000 255,031 257,110 ASSET-BACKED SECURITIES 1.61% CARDS II Trust, 3.048%, 2013/05/15 700,000 703,128 711,875 CARDS II Trust, 3.333%, 2016/05/15 460,000 460,000 462,459 CNH Capital Canada Receivables Trust, 2.598%, 2014/12/15 760,000 760,622 764,314 Gloucester Credit Card Trust, 5.335%, 2013/05/15 105,000 105,000 110,144 Golden Credit Card Trust, 5.421%, 2013/04/15 360,000 381,568 381,032 Master Credit Card Trust, 5.237%, 2013/05/21 235,000 235,000 248,421 SCORE Trust, 4.949%, 2014/02/20 25,000 25,358 26,407 TOTAL CANADIAN BONDS 43.52% 71,522,665 73,167,428 U.S. BONDS CORPORATE 0.35% Goldman Sachs Group, Inc., (The), 5.200%, 2017/04/19 210,000 190,890 202,321 Goldman Sachs Group, Inc., (The), 5.000%, 2018/05/03 380,000 379,400 379,261 TOTAL U.S. BONDS 0.35% 570,290 581,582 FOREIGN BONDS SUPRANATIONALS 0.70% Inter-American Development Bank, 4.400%, 2026/01/26 315,000 295,380 320,862 International Bank for Reconstruction and Development, 4.300%, 2012/12/15 820,000 819,172 851,455 TOTAL FOREIGN BONDS 0.70% 1,114,552 1,172,317 CANADIAN EQUITIES ENERGY 7.10% ARC Resources Ltd. 64,000 1,697,753 1,598,080 Bonavista Energy Corporation 51,000 1,512,760 1,451,970 Cenovus Energy Inc. 72,800 1,958,643 2,644,096 Enbridge Inc. 82,400 2,258,918 2,579,120 Penn West Petroleum Ltd. 36,000 874,668 799,920 TransCanada Corporation 20,000 820,814 844,400 Vermilion Energy Inc. 39,600 1,822,047 2,016,036 16 Standard Life

Ideal Income Balanced Fund Statement of portfolio investments as at June 30, 2011 Average Fair Issuer Shares cost ($) value ($) MATERIALS 0.42% CCL Industries Inc., Non-voting, B 21,600 413,935 713,016 INDUSTRIALS 4.55% Canadian National Railway Company 39,400 996,751 3,035,770 Canadian Pacific Railway Limited 40,800 2,415,739 2,450,040 Progressive Waste Solutions Ltd. 18,800 344,698 451,200 SNC-Lavalin Group Inc. 29,200 1,675,035 1,716,960 CONSUMER DISCRETIONARY 1.12% Astral Media Inc., Non-voting, A 9,500 325,686 353,495 Corus Entertainment Inc., B 33,300 781,551 682,317 Dollarama Inc. 22,000 715,660 717,200 Thomson Reuters Corporation 3,500 149,130 126,630 CONSUMER STAPLES 0.95% Shoppers Drug Mart Corporation 40,300 1,647,550 1,599,910 FINANCIALS 19.72% Bank of Nova Scotia, (The) 68,800 2,604,086 3,991,088 Boardwalk Real Estate Investment Trust 33,300 1,465,748 1,605,060 Brookfield Asset Management Inc., Limited Voting, A 25,400 800,241 812,546 Brookfield Office Properties Inc 105,000 1,926,880 1,951,950 Canadian Imperial Bank of Commerce 62,900 4,203,980 4,786,690 CI Financial Corp. 33,400 937,803 764,526 Cominar Real Estate Investment Trust 53,900 1,155,867 1,186,878 IGM Financial Inc. 32,300 954,655 1,631,473 Industrial Alliance Insurance and Financial Services Inc. 38,700 1,355,114 1,551,096 Intact Financial Corporation 33,200 1,498,365 1,836,292 Manulife Financial Corporation 35,000 593,099 596,050 National Bank of Canada 27,600 1,475,465 2,156,388 Primaris Retail Real Estate Investment Trust 77,200 1,544,004 1,621,972 Royal Bank of Canada 69,600 2,596,575 3,827,304 Toronto-Dominion Bank, (The) 59,100 3,233,462 4,833,198 TELECOMMUNICATIONS 2.97% BCE Inc. 65,099 2,008,101 2,462,044 TELUS Corporation 47,800 1,843,938 2,537,224 UTILITIES 0.89% Canadian Utilities Limited, Non-voting, A 14,700 779,812 823,494 Fortis Inc. 21,000 670,699 679,350 Par value Average Fair Issuer / Interest rate / Maturity date or shares cost ($) value ($) FOREIGN EQUITIES Brookfield Infrastructure Partners L.P. 54,000 1,185,428 1,298,700 TOTAL FOREIGN EQUITIES 0.77% 1,185,428 1,298,700 Transaction costs (note 2) (62,669 ) - TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS 91.59% 140,859,957 154,000,275 SHORT-TERM INVESTMENTS Government of Canada, 0.920%, 2011/07/07 2,400,000 2,394,096 2,399,578 Government of Canada, 0.970%, 2011/08/04 1,700,000 1,695,937 1,698,499 Government of Canada, 0.960%, 2011/08/18 1,200,000 1,197,132 1,198,508 Government of Canada, 0.965%, 2011/09/01 2,850,000 2,842,647 2,845,426 Government of Canada, 0.955%, 2011/09/15 300,000 299,232 299,409 National Bank of Canada, 1.000%, 2011/07/04 2,825,000 2,825,000 2,825,000 Royal Bank of Canada, 0.950%, 2011/07/04 2,825,000 2,825,000 2,825,000 TOTAL SHORT-TERM INVESTMENTS 8.38% 14,079,044 14,091,420 TOTAL INVESTMENTS 99.97% 154,939,001 168,091,695 Other assets, less liabilities 0.03% 56,675 56,675 NET ASSETS 100.00% 154,995,676 168,148,370 TOTAL CANADIAN EQUITIES 37.72% 52,059,232 63,434,783 U.S. EQUITIES ENERGY 0.95% Spectra Energy Corp. 60,500 1,566,700 1,598,852 MATERIALS 1.04% Freeport-McMoRan Copper & Gold Inc. 17,000 869,130 867,047 Praxair Inc. 8,400 805,413 877,830 INDUSTRIALS 1.36% United Parcel Service, Inc. 10,700 797,054 752,649 United Technologies Corporation 18,000 1,022,991 1,536,449 CONSUMER DISCRETIONARY 0.99% McDonald s Corporation 10,500 792,112 853,525 Walt Disney Company, (The) 21,400 906,346 805,385 CONSUMER STAPLES 1.31% Altria Group Inc. 15,300 1,004,484 389,581 Coca-Cola Company, (The) 12,700 795,912 824,123 Philip Morris International Inc. 15,300 816,231 984,872 HEALTH CARE 1.46% Johnson & Johnson 26,200 1,669,121 1,679,435 Merck & Co., Inc. 23,000 785,690 782,412 INFORMATION TECHNOLOGY 0.95% International Business Machines Corporation 9,700 1,584,102 1,603,746 TELECOMMUNICATIONS 0.47% Verizon Communications Inc. 22,000 1,055,173 789,559 TOTAL U.S. EQUITIES 8.53% 14,470,459 14,345,465 Standard Life 17

Specific note to interim unaudited financial statements Ideal Income Balanced Fund Financial instrument risks (note 7) as at June 30, 2011 and December 31, 2010 Fair value measurements The following table illustrates the classification of the Fund s financial instruments within the fair value hierarchy: As at June 30, 2011 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 14,091,420-14,091,420 Bonds - 72,747,330 2,173,997 74,921,327 Equities 79,078,948 - - 79,078,948 As at December 31, 2010 Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Short-term investments - 9,628,390-9,628,390 Bonds - 73,772,634 1,573,662 75,346,296 Equities 75,121,237 - - 75,121,237 Forward foreign currency contracts - 14,578-14,578 Equities with a fair value of nil (December 31, 2010 - $1,264,555) were transferred from Level 2 to Level 1 during the period as additional pricing sources became available. The reconciliation of Level 3 fair value measurements was as follows: Bonds as at June 30, 2011 ($) December 31, 2010 ($) Balance beginning of period 1,573,662 1,367,558 Purchases 565,000 1,024,076 Sales - (455,168) Net transfers into and/or out of Level 3 - (478,728) Net realized gain (loss) - 8,673 Change in unrealized appreciation (depreciation) 35,335 107,251 Balance end of period 2,173,997 1,573,662 Bonds with a fair value of nil (December 31, 2010 - $478,728) were transferred from Level 3 to Level 2 during the period as additional pricing sources became available. Market risk The Fund is exposed to market risk through its equity investments. As at June 30, 2011, had the prices on the respective stock exchanges for these equity investments increased or decreased by 10%, with all other variables held constant, net assets would have increased or decreased by approximately $7,908,000 (December 31, 2010 - $7,512,000). In practice, actual results may differ materially from this sensitivity analysis. Interest rate risk The Fund is exposed to interest rate risk since a significant portion of its investments is interest bearing. The table below summarizes the Fund s exposure to interest rate risk by remaining term to maturity. Interest rate risk exposure as at Less than 1 year ($) 1-5 years ($) 5-10 years ($) June 30, 2011 14,091,420 40,494,113 15,831,683 December 31, 2010 9,628,390 34,907,024 19,196,494 Interest rate risk exposure as at 10-20 years ($) Greater than 20 years ($) Total ($) June 30, 2011 6,174,506 12,421,025 89,012,747 December 31, 2010 7,245,631 13,997,147 84,974,686 As at June 30, 2011, should current interest rates have increased or decreased by 1%, assuming a parallel shift in the yield curve, with all other variables remaining constant, the respective decrease or increase in net assets would amount to approximately $4,698,000 (December 31, 2010 - $5,131,000). The Fund s sensitivity to interest rate changes was estimated using the weighted average duration of the debt securities. In practice, actual results may differ materially from this sensitivity analysis. Currency risk The Fund is exposed to currency risk since it holds assets and liabilities denominated in currency(ies) other than Canadian dollars, the functional currency. The table below summarizes the Fund s exposure to currency risk, including the potential impact on the Fund s net assets, as a result of a 5% fluctuation in this (these) currency(ies) relative to the Canadian dollar, all other variables held constant. As at June 30, 2011 USD Net assets by currency ($) 14,370,318 Impact on net assets (+/- 5%) ($) 718,516 As at December 31, 2010 USD Net assets by currency ($) 22,152,147 Impact on net assets (+/- 5%) ($) 1,107,607 In practice, actual results may differ materially from this sensitivity analysis. Credit risk The Fund s credit risk exposure is derived from its holdings in other assets and/or debt securities and/or forward foreign currency contracts, if any, for which the carrying amount represents the maximum credit risk exposure The credit risk exposure of debt securities by credit rating was as follows: % of debt securities as at Credit ratings June 30, 2011 December 31, 2010 AAA 38 43 AA 28 29 A 26 21 BBB 8 7 Total 100 100 18 Standard Life

Ideal Russell Retirement Essentials Portfolio Statement of net assets as at June 30, 2011 and December 31, 2010 ASSETS Investments, at fair value * 2,132,757 1,443,676 Cash 1,257 240 Subscriptions receivable 49,087-2,183,101 1,443,916 LIABILITIES Redemptions payable 2,679 10,917 Payable on investments purchased 1,257 240 Management fees payable 2,816 237 Other liabilities 1,397 642 8,149 12,036 NET ASSETS 2,174,952 1,431,880 Net assets per unit (note 3) 75/100 Series 12.05 11.96 75/100 Platinum No-load Series 10.75 10.63 100/100 Series 12.01 11.92 100/100 Platinum No-load Series 10.71 10.61 GLWB Series 9.95 n/a GLWB Platinum No-load Series 9.96 n/a * Investments, at average cost 2,061,965 1,403,067 Statement of operations for the periods ended June 30 EXPENSES (note 5) Management fees 32,511 6,606 Audit fees 2,310 1,884 Other operating expenses 2-34,823 8,490 Less: expenses absorbed by the manager (2,312 ) (1,884 ) 32,511 6,606 NET INVESTMENT INCOME (LOSS) (32,511 ) (6,606) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND TRANSACTION COSTS Net realized gain (loss) on investments 16,386 130 Change in unrealized appreciation (depreciation) in value of investments 30,183 (505) NET GAIN (LOSS) ON INVESTMENTS 46,569 (375 ) ASSETS FROM OPERATIONS 14,058 (6,981 ) Increase (decrease) in net assets from operations per unit 75/100 Series 0.08 (0.24 ) 75/100 Platinum No-load Series 0.08 (0.04) 100/100 Series 0.08 (0.10 ) 100/100 Platinum No-load Series 0.11 (0.05) GLWB Series (0.01 ) n/a GLWB Platinum No-load Series (0.04) n/a Statement of changes in net assets for the periods ended June 30 NET ASSETS - beginning of period 1,431,880 121,046 ASSETS FROM OPERATIONS 14,058 (6,981 ) CAPITAL UNIT TRANSACTIONS Proceeds from sale of units 1,506,400 530,712 Payments for units redeemed (777,386 ) (7,879 ) Net capital unit transactions 729,014 522,833 NET ASSETS - end of period 2,174,952 636,898 Standard Life 19

Ideal Russell Retirement Essentials Portfolio Statement of portfolio investments as at June 30, 2011 Average Fair Issuer Units cost ($) value ($) Russell Retirement Essentials, A-Series 166,702 2,061,965 2,132,757 TOTAL INVESTMENTS 98.06% 2,061,965 2,132,757 Other assets, less liabilities 1.94% 42,195 42,195 NET ASSETS 100.00% 2,104,160 2,174,952 Top Holdings of the Underlying Fund as at June 30, 2011 (unaudited) Average Fair % Net assets of Issuer Units cost ($) value ($) underlying fund Russell Retirement Essentials Russell Fixed Income Pool, O Units 4,318,136 44,534,783 44,945,316 31.61 Russell Core Plus Fixed Income Pool, O Units 4,316,507 43,281,393 43,656,287 30.70 Russell Canadian Dividend Pool, O Units 1,400,858 16,074,515 17,441,104 12.27 Russell US Equity Pool, O Units 1,099,079 11,162,355 12,424,753 8.74 Russell Global Equity Pool, O Units 970,595 10,189,049 11,441,273 8.05 Russell Overseas Equity Pool, O Units 899,527 9,876,544 10,869,081 7.64 The top holdings of the underlying fund come from unaudited information provided by the external fund manager. 20 Standard Life