MD Family of Funds 2015 INTERIM FINANCIAL STATEMENTS

Transcription

1 MD Family of Funds 2015 INTERIM FINANCIAL STATEMENTS

2 A Message Regarding Your Financial Statements Dear MD Family of Funds Investor: As part of our commitment to keeping you informed about your MD Fund investments, please find attached the 2015 interim financial statements. The interim financial statements are produced on a fund-by-fund basis, and your report only includes information on the funds you owned as of June 30, If you have any questions regarding these documents, please contact your MD advisor or the MD TradeCentre at We thank you for your continued investment in the MD Family of Funds. Interim Unaudited Financial Statements for the Six-Month Period Ended June 30, 2015 These Interim Unaudited Financial Statements do not contain the Interim Management Report of Fund Performance ( MRFP ) of the investment fund. If you have not received a copy of the Interim MRFP with this report, you may obtain a copy of the Interim MRFP at your request, and at no cost, by calling the toll-free number , by writing to us at MD Financial Management Inc., 1870 Alta Vista Drive, Ottawa ON K1G 6R7, by visiting our website at md.cma.ca or by visiting the SEDAR website at sedar.com. Copies of the Annual Financial Statements or Annual MRFP may also be obtained, at no cost, using any of the methods outlined above. Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure. NOTICE OF NO AUDITOR REVIEW OF THE INTERIM FINANCIAL STATEMENTS MD Financial Management Inc, the Manager of the Fund, appoints independent auditors to audit the Fund s Annual Financial Statements. Under Canadian securities laws (National Instrument ), if an auditor has not reviewed the Interim Financial Statements, this must be disclosed in an accompanying notice. The Fund s independent auditors have not performed a review of these Interim Financial Statements in accordance with standards established by the Canadian Institute of Chartered Accountants. MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies. For a detailed list of these companies, visit md.cma.ca. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. Standard performance data assumes reinvestment of distributions only and does not take into account sales, redemption, distribution or optional charges payable by any securityholder which would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing. You may obtain a copy of the prospectus before investing by calling your MD Advisor or the MD Trade Centre at

3 MD Bond Fund Schedule of Investment Portfolio as at June 30, 2015 (unaudited) Date Coupon % Value or Principal Amount Average Cost Fair Value Date Coupon % Value or Principal Amount Average Cost Fair Value DOMESTIC BONDS Corporate Bonds (43.44%) Algonquin Power Co. 2/15/ % 2,800 2,796 3,012 Alimentation Couche-Tard Inc. 6/2/ % 4,350 4,350 4,349 Alimentation Couche-Tard Inc. 8/21/ % 3,120 3,120 3,396 Allied Properties Real Estate Investment Trust 5/13/ % 1,210 1,210 1,234 AltaGas Ltd. 9/28/ % 1,930 1,929 2,044 AltaLink LP 6/6/ % 9,110 9,285 9,616 Arrow Lakes Power 4/5/ % 6,350 6,350 7,536 Artis Real Estate Investment Trust 3/27/ % 4,410 4,430 4,572 Bank of Montreal 3/16/ % 6,810 6,807 6,745 Bank of Montreal 9/19/ % 6,260 6,314 6,477 Bank of Montreal 7/8/ % 5,700 5,719 5,845 Bank of Montreal 3/28/ % 15,750 16,639 17,677 bcimc Realty Corporation 6/3/ % 3,150 3,149 3,154 Bell Canada 9/29/ % 5,770 5,747 5,962 Bell Canada 6/17/ % 2,020 2,018 2,116 Bell Canada 5/19/ % 8,300 8,270 9,423 Brookfield Asset Management Inc. 4/9/ % 5,860 5,896 6,256 Brookfield Renewable Energy Partners ULC 6/2/ % 3,010 3,011 2,974 Caisse Centrale Desjardins 3/2/ % 4,850 4,850 4,833 Caisse Centrale Desjardins 11/19/ % 4,180 4,180 4,363 Cameco Corporation 6/24/ % 2,020 2,019 2,101 Canadian Commercial Mortgage Origination 11/12/ % 2,973 2,973 3,040 Canadian Commercial Mortgage Origination 11/12/ % 3,054 3,054 3,152 Canadian Credit Card Trust II 3/24/ % 3,060 3,060 3,070 Canadian Imperial Bank of Commerce 9/23/ % 3,560 3,560 3,562 Canadian Imperial Bank of Commerce 6/24/ % 3,760 3,834 3,891 Canadian Imperial Bank of Commerce 11/8/ % 1,730 1,771 1,764 Canadian Imperial Bank of Commerce 10/28/ % 2,060 2,123 2,123 Canadian Imperial Bank of Commerce 1/14/ % 1,220 1,219 1,235 Canadian Real Estate Investment Trust 7/24/ % Canadian Real Estate Investment Trust 1/15/ % 2,010 2,010 2,157 Canadian Western Bank & Trust 9/26/ % 2,900 2,900 2,891 Canadian Western Bank & Trust 3/22/ % 3,080 3,080 3,136 Canadian Western Bank & Trust 1/14/ % 7,330 7,330 7,596 Capital Desjardins Inc. 11/23/ % 11,570 11,570 11,677 Capital Power LP 2/21/ % 1,230 1,324 1,322 Cards II Trust 5/15/ % 2,100 2,100 2,140 CHIP Mortgage Trust 4/29/ % 1,310 1,310 1,316 CHIP Mortgage Trust 9/25/ % 1,740 1,740 1,848 CHIP Mortgage Trust 2/1/ % 4,350 4,350 4,413 Choice Properties Limited Partnership 9/20/ % 3,440 3,447 3,625 Choice Properties Real Estate Investment Trust 9/14/ % 1,580 1,580 1,576 Cominar Real Estate Investment Trust 9/22/ % 2,590 2,590 2,589 Cominar Real Estate Investment Trust 10/9/ % 1,410 1,410 1,414 Cominar Real Estate Investment Trust 6/21/ % 4,510 4,511 4,653 Cominar Real Estate Investment Trust 7/27/ % Cominar Real Estate Investment Trust 2/10/ % 1,580 1,576 1,574 Daimler Canada Finance Inc. 10/2/ % 3,960 3,959 3,954 Enbridge Gas Distribution Inc. 8/22/ % 1,950 1,945 2,002 Enbridge Income Fund 11/19/ % 3,560 3,560 3,677 Enbridge Income Fund 2/22/ % 3,380 3,374 3,630 Enbridge Southern Lights LP 6/30/ % 5,007 4,928 5,278 Enmax Corporation 12/5/ % EPCOR Utilities Inc. 11/24/ % 7,600 7,589 9,735 Fairfax Financial Holdings Limited 3/3/ % 1,090 1,080 1,125 Fairfax Financial Holdings Limited 10/14/ % 3,340 3,385 3,699 Fairfax Financial Holdings Limited 5/25/ % 5,000 4,980 5,697 First Capital Realty Inc. 7/31/ % 3,100 3,103 3,263 First National 7/1/ % 2,132 2,124 2,193 Ford Auto Securitization Trust 10/15/ % 4,210 4,210 4,278 Ford Credit Canada Limited 5/7/ % 4,530 4,530 4,558 Ford Credit Canada Limited 7/2/ % 4,430 4,430 4,581 FortisAlberta Inc. 9/30/ % 1,570 1,570 1,649 FortisBC Energy Inc. 10/2/ % 9,300 9,294 12,290 FortisBC Energy Inc. 9/30/ % 5,000 6,810 5,539 GE Capital Canada Funding Company 5/31/ % 1,360 1,343 1,403 Genesis Trust II 4/15/ % 4,780 4,780 4,775 Genesis Trust II 5/15/ % 4,350 4,350 4,506 Glacier Credit Card Trust 9/20/ % 3,600 3,600 3,739 Granite REIT Holdings LP 7/5/ % 2,530 2,530 2,634 Granite REIT Holdings LP 10/2/ % 1,330 1,330 1,429 Greater Toronto Airports Authority 4/17/ % 14,330 14,592 15,957 H+R Real Estate Investment Trust 10/9/ % 3,650 3,650 3,658 Health Montreal Collective LP 9/30/ % 3,410 3,410 4,485 Hollis Receivables Term Trust II 2/26/ % 3,450 3,450 3,452 Hollis Receivables Term Trust II 6/26/ % 5,410 5,410 5,597 Honda Canada Finance Inc. 8/12/ % 2,100 2,100 2,102 Honda Canada Finance, Inc. 12/3/ % 7,850 7,919 7,922 Honda Canada Finance, Inc. 6/4/ % 2,260 2,260 2,322 HSBC Bank Canada 5/13/ % 5,360 5,360 5,539 HSBC Bank Canada 9/29/ % 7,100 7,144 7,388 HSBC Bank Canada 1/14/ % 3,610 3,610 3,792 HSBC Bank Canada 10/4/ % 6,010 5,989 6,302 Hydro Ottawa Holding Inc. 2/3/ % 1,570 1,570 1,554 Hydro-Quebec 2/15/ % 5,390 4,399 4,331 Hydro-Quebec 12/1/ % 5,800 5,806 5,826 Industrial Alliance Insurance and Financial Service 5/16/ % 2,540 2,542 2,633 Percentages shown in brackets relate investments at fair value to net assets of the Fund. The accompanying notes are an integral part of these financial statements. 1

4 MD Bond Fund Schedule of Investment Portfolio as at June 30, 2015 (unaudited) Date Coupon % Value or Principal Amount Average Cost Fair Value Date Coupon % Value or Principal Amount Average Cost Fair Value Industrial Alliance Insurance and Financial Services Inc. 2/23/ % 3,130 3,146 3,128 Inter Pipeline Ltd. 3/24/ % 2,150 2,151 2,091 Lower Mattagami Energy LP 6/20/ % 1,900 1,900 2,013 Manulife Financial Corporation 4/8/ % 8,800 8,800 10,713 MCAP Commercial LP 3/11/ % 2,920 2,920 2,975 MCAP Service Corporation 3/1/ % 1,920 1,911 1,951 Muskrat Falls and Labrador Transmission Assets Funding 12/1/ % 29,010 29,635 35,268 National Bank of Canada 3/3/ % 2,640 2,640 2,632 National Bank of Canada 3/18/ % 8,780 8,780 8,661 National Bank of Canada 10/28/ % 2,580 2,580 2,659 National Bank of Canada 8/9/ % 4,010 4,010 4,177 NAV CANADA 3/1/ % 2,001 2,122 2,636 NBC Asset Trust 6/30/ % 7,900 7,900 9,705 NHA Mortgage Backed Securities 12/1/ % 10,072 9,736 10,854 NHA Mortgage Backed Securities 10/1/ % 4,542 4,463 4,917 NHA Mortgage Backed Securities 6/1/ % 5,756 6,296 7,022 North Battleford Power LP 12/31/ % 5,428 5,428 6,176 North West Redwater Partnership / NWR Financing Co. Ltd. 7/22/ % 3,420 3,415 3,539 OMERS Realty Corp. 11/12/ % 7,520 7,520 7,832 Ontario Electricity Financial Corporation 5/26/ % 4,270 3,200 3,247 Pembina Pipeline Corporation 2/3/ % 2,370 2,369 2,359 Pembina Pipeline Corporation 6/15/ % 8,000 7,999 8,091 Plenary Properties LTAP LP 1/31/ % 3,448 3,649 4,512 Reliance LP 9/15/ % 2,570 2,570 2,558 Reliance LP 3/15/ % 7,700 7,700 8,270 Rogers Communications Inc. 9/29/ % 5,400 5,405 6,019 Royal Bank of Canada 2/11/ % 3,120 3,120 3,132 Royal Bank of Canada 3/12/ % Royal Bank of Canada 12/9/ % 5,120 5,119 5,265 Royal Bank of Canada 6/4/ % 7,700 7,699 7,686 Royal Bank of Canada 3/4/ % 3,950 3,949 4,129 Royal Bank of Canada 12/6/ % 12,930 12,930 13,490 Royal Bank of Canada 9/29/ % 2,380 2,379 2,471 Schooner Trust 2/12/ % 5,000 5,000 5,069 Schooner Trust 10/12/ % 4,845 4,845 4,979 Shaw Communications Inc. 2/1/ % 2,180 2,180 2,183 Spy Hill Power LP 3/31/ % 2,504 2,498 2,604 Sun Life Financial Inc. 5/13/ % 3,220 3,219 3,335 Sun Life Financial Inc. 1/30/ % 8,680 8,812 9,551 Suncor Energy Inc. 11/26/ % 3,580 3,584 3,740 TD Capital Trust IV 18/06/ % 3,630 3,630 4,413 TELUS Corporation 4/5/ % 3,260 3,251 3,393 The Bank of Nova Scotia 6/15/ % 7,500 7,498 7,585 The Bank of Nova Scotia 1/13/ % 4,390 4,388 4,493 The Bank of Nova Scotia 3/30/ % 18,510 18,416 18,044 The Bank of Nova Scotia 6/4/ % 6,080 6,080 6,346 The Bank of Nova Scotia 8/1/ % 19,091 19,491 20,447 The Bank of Nova Scotia 1/11/ % 4,950 4,950 5,277 The Manufacturers Life Insurance Company 1/5/ % 3,820 3,820 3,847 The Manufacturers Life Insurance Company 1/15/ % 4,630 4,630 4,785 The Manufacturers Life Insurance Company 2/21/ % 4,080 4,080 4,239 The Manufacturers Life Insurance Company 11/29/ % 3,950 3,950 4,116 The Standard Life Assurance Company of Canada 9/21/ % 2,760 2,921 2,901 The Toronto-Dominion Bank 12/1/ % 2,955 2,864 3,004 The Toronto-Dominion Bank 4/2/ % 12,150 12,327 12,590 The Toronto-Dominion Bank 6/24/ % 11,240 11,355 11,632 The Toronto-Dominion Bank 6/24/ % 6,000 6,000 6,043 The Toronto-Dominion Bank 7/24/ % 4,090 4,298 4,268 The Toronto-Dominion Bank 7/9/ % 11,300 11,300 12,694 Thomson Reuters Corporation 11/12/ % 3,620 3,620 3,761 TMX Group Limited 10/3/ % 3,870 3,870 3,882 TMX Group Limited 10/3/ % 2,590 2,590 2,739 Toronto Hydro Corporation 11/14/ % 13,000 12,987 14,217 Toyota Credit Canada Inc. 2/19/ % 3,140 3,137 3,147 Toyota Credit Canada Inc. 5/20/ % 3,240 3,239 3,275 TransCanada PipeLines Limited 8/7/ % 1,800 1,707 2,327 Trillium Windpower LP 2/15/ % 2,621 2,621 2,927 Ventas Canada Finance Limited 9/30/ % 4,170 4,153 4,340 Veresen Inc. 6/13/ % 3,490 3,489 3,547 VW Credit Canada Inc. 4/3/ % 3,770 3,770 3,794 VW Credit Canada Inc. 8/19/ % 2,370 2,370 2,370 Wells Fargo Canada Corporation 1/29/ % 4,460 4,458 4,685 Westcoast Energy Inc. 9/12/ % 2,590 2,589 2,629 Westcoast Energy Inc. 1/16/ % 4,030 4,518 4,544 WTH Car Rental, ULC 7/20/ % 1,410 1,410 1,399 Total for Corporate Bonds 759, , ,914 Government of Canada Bonds (13.67%) Canada Housing Trust No 1 12/15/ % 20,000 20,309 20,732 Canada Housing Trust No 1 3/15/ % 14,290 14,305 14,314 Canada Housing Trust No 1 6/15/ % 33,465 34,447 35,800 Government of Canada 6/1/ % 21,200 22,518 22,291 Government of Canada 6/1/ % 62,690 70,698 70,515 Government of Canada 12/1/ % 71,587 87,115 90,167 Total for Government of Canada Bonds 223, , ,819 Municipal Bonds (4.47%) City of Montreal 9/1/ % 7,500 7,892 7,972 City of Montreal 12/1/ % 5,670 6,094 6,485 City of Montreal 12/1/ % 8,300 8,341 9,075 City of Montreal 12/1/ % 6,650 6,593 7,468 City of Montreal 12/1/ % 12,900 13,421 15,777 City of Toronto 3/10/ % 7,320 7,274 8,253 City of Toronto 12/2/ % 7,690 8,049 8,708 City of Toronto 7/18/ % 11,260 11,614 12,210 Regional Municipality of York 4/29/ % 6,300 6,693 7,173 Total for Municipal Bonds 73,590 75,971 83,121 Percentages shown in brackets relate investments at fair value to net assets of the Fund. The accompanying notes are an integral part of these financial statements. 2

5 MD Bond Fund Schedule of Investment Portfolio as at June 30, 2015 (unaudited) Date Coupon % Value or Principal Amount Average Cost Fair Value Date Coupon % Value or Principal Amount Average Cost Fair Value Provincial Bonds (28.13%) New Brunswick FM Project Inc. 11/30/ % 2,779 2,013 3,488 Province of British Columbia 1/10/ % 5,380 5,376 5,381 Province of British Columbia 6/18/ % 25,320 26,212 26,371 Province of British Columbia 6/18/ % 18,950 16,272 19,302 Province of Manitoba 6/2/ % 18,600 18,300 18,520 Province of Ontario 12/2/ % 11,260 8,530 9,172 Province of Ontario 7/13/ % 6,690 5,203 5,762 Province of Ontario 6/2/ % Province of Ontario 6/2/ % 9,440 7,748 7,531 Province of Ontario 6/2/ % 5,390 4,117 3,988 Province of Ontario 6/2/ % 95,218 97,800 96,391 Province of Ontario 6/2/ % 12,010 12,747 12,604 Province of Ontario 12/2/ % 5,000 4,660 4,716 Province of Ontario 6/2/ % 85,780 89,160 92,555 Province of Ontario 6/2/ % 21,690 22,538 22,779 Province of Ontario 6/2/ % 5,000 5,436 5,465 Province of Ontario 6/2/ % 15,698 16,669 16,561 Province of Quebec 4/1/ % 5,680 4,378 4,193 Province of Quebec 12/19/ % 15,310 15,340 15,416 Province of Quebec 12/1/ % 55,940 54,542 58,808 Province of Quebec 9/1/ % 26,300 28,781 29,251 Province of Quebec 12/1/ % 55,150 58,817 63,628 Total for Provincial Bonds 503, , ,646 Total for Domestic Bonds (89.71%) 1,559,871 1,594,072 1,666,500 FOREIGN BONDS Australia (2.23%) APT Pipelines Ltd. 3/23/ % 4,240 5,407 5,183 APT Pipelines Ltd. 7/24/ % 4,600 4,600 4,901 BHP Billiton Finance Limited 5/15/ % 4,160 4,157 4,212 Commonwealth Bank of Australia 4/9/ % 9,500 9,471 10,854 National Australia Bank Limited 7/20/ % 10,750 10,750 10,765 Transurban Finance Company Pty Ltd. 3/6/ % 5,300 5,300 5,537 Total for Australia 38,550 39,685 41,452 Jersey (0.51%) Heathrow Funding Limited 5/21/ % 9,450 9,399 9,485 Total for Jersey 9,450 9,399 9,485 Norway (0.38%) Kommunalbanken AS 5/27/ % 6,900 6,898 7,027 Total for Norway 6,900 6,898 7,027 United States (2.61%) Anheuser-Busch InBev Finance Inc. 1/25/ % 1,690 1,701 1,750 AT&T Inc. 11/25/ % 5,010 5,010 5,348 Citigroup Inc. 11/18/ % 1,440 1,440 1,492 Citigroup Inc. 6/9/ % 5,000 4,946 4,984 JPMorgan Chase & Co. 3/5/ % 5,310 5,308 5,541 KRC North Holdings III, Inc. 8/4/ % 1,390 1,387 1,481 Metropolitan Life Global Funding I 4/16/ % 2,860 2,858 2,849 Metropolitan Life Global Funding I 4/16/ % 2,290 2,290 2,379 Metropolitan Life Global Funding I 4/16/ % 1,090 1,159 1,139 Morgan Stanley 8/5/ % 2,030 2,023 2,088 The Goldman Sachs Group, Inc. 2/12/ % 4,880 4,875 5,152 The Goldman Sachs Group, Inc. 5/3/ % 3,500 3,819 3,815 United States Treasury Inflation Index Bonds 2/15/ % 5,246 6,804 5,993 Wells Fargo & Company 5/21/ % 4,410 4,417 4,486 Total for United States 46,146 48,037 48,497 Total for Foreign Bonds (6.32%) 111, , ,401 Total Long-term Investments (96.03%) $1,671,347 $1,708,542 $1,783,901 SHORT-TERM INVESTMENTS Government of Canada 10/22/ % 3,950 3,943 3,943 Government of Canada 12/3/ % 5,700 5,684 5,684 Government of Canada 12/17/ % 3,700 3,689 3,689 Government of Canada 2/11/ % 47,400 47,199 47,199 Government of Canada 3/10/ % 4,050 4,030 4,030 Total for Short-term Investments (3.47%) $64,800 $64,545 $64,545 Total Investments (99.50%) $1,736,147 $1,773,087 $1,848,446 Cash and Other Net Assets (0.50%) 9,200 Total Net Assets Attributable to Holders of Redeemable Units (100.00%) $1,857,646 Schedule of Derivative Instruments Contracts Due Fair Credit and Rate Pay Receive Date Value Counterparty Rating* Forward contract ,985 USD 11,124 CAD 8/31/15 (93) Bank of Montreal A+ (93) Total forward contract $(93) * Source: Standard & Poor s Credit Rating Agency South Korea (0.22%) Korea Gas Corporation 5/12/ % 3,900 3,899 3,998 Total for South Korea 3,900 3,899 3,998 United Kingdom (0.37%) BP Capital Markets PLC 11/9/ % 6,530 6,552 6,942 Total for United Kingdom 6,530 6,552 6,942 Percentages shown in brackets relate investments at fair value to net assets of the Fund. The accompanying notes are an integral part of these financial statements. 3

6 MD Bond Fund Financial Statements Statement of Financial Position (unaudited ) (in $000 s except for units outstanding and per unit amounts) June 30, 2015 December 31, 2014 Assets Current assets Investments $ 1,848,446 $ 1,770,153 Cash Interest receivable 9,131 9,500 Unrealized gain on derivatives 2 Receivable for investment transactions 12,472 Subscriptions receivable ,870,575 1,780,169 Liabilities Current liabilities Payable for investment transactions 11,360 Redemptions payable 1, Unrealized loss on derivatives ,929 1,182 Net assets attributable to holders of redeemable units $ 1,857,646 $ 1,778,987 Net assets attributable to holders of redeemable units per Series Series A $ 1,068,209 $ 1,086,469 Series I $ 789,437 $ 692,518 Number of redeemable units outstanding (see Supplementary Schedules) Series A 132,610, ,043,064 Series I 96,991,614 85,823,645 Net assets attributable to holders of redeemable units per unit, per Series Series A $ 8.06 $ 7.99 Series I $ 8.14 $ 8.07 Statement of Comprehensive Income (unaudited ) (in $000 s except for per unit amounts) Six months ended June 30, 2015 June 30, 2014 Income Net gain (loss) on investments Interest for distribution purposes $ 28,068 $ 28,655 Net realized gain (loss) on sale of investments 24,734 3,372 Change in unrealized appreciation (depreciation) of investments (9,675) 49,383 Net gain (loss) on investments 43,127 81,410 Net gain (loss) on derivatives Net realized (gain) loss on derivative instruments (231) (59) Change in unrealized appreciation (depreciation) of derivative instruments Net gain (loss) on derivatives (104) 142 Other income Foreign exchange gain (loss) on cash (245) (1) Early redemption fee 9 5 Securities lending (see Supplementary Schedules) Other 13 Total other income (186) 97 Total income (loss) 42,837 81,649 Expenses Management fees (Note 4) 5,082 5,346 Administration fees Total expenses 5,501 5,786 Increase (decrease) in net assets attributable to holders of redeemable units $ 37,336 $ 75,863 Increase (decrease) in net assets attributable to holders of redeemable units per Series Series A $ 21,085 $ 52,560 Series I $ 16,251 $ 23,303 Increase (decrease) in net assets attributable to holders of redeemable units per unit, per Series Series A $ 0.16 $ 0.35 Series I $ 0.17 $ 0.38 The accompanying notes are an integral part of these financial statements. 4

7 MD Bond Fund Financial Statements Statement of Changes in Net Assets Attributable to Holders of Redeemable Units ( Net assets ) ( unaudited ) Six months ended June 30, 2015 June 30, 2014 SERIES A Net assets beginning of period $ 1,086,469 $ 1,185,991 Add (deduct) changes during the period: Operations Increase (decrease) in net assets attributable to holders of redeemable units 21,085 52,560 Redeemable unit transactions Proceeds from issue of redeemable units 74,883 52,543 Cash paid for redemption of redeemable units (114,037) (173,746) Units issued on reinvestment of distributions 11,405 15,041 (27,749) (106,162) Distributions From net investment income (11,596) (15,269) Six months ended June 30, 2015 June 30, 2014 TOTAL FUND Net assets beginning of period $ 1,778,987 $ 1,569,685 Add (deduct) changes during the period: Operations Increase (decrease) in net assets attributable to holders of redeemable units 37,336 75,863 Redeemable unit transactions Proceeds from issue of redeemable units 189, ,020 Cash paid for redemption of redeemable units (148,012) (186,207) Units issued on reinvestment of distributions 23,398 23,742 64, ,555 Distributions From net investment income (23,586) (23,970) From net realized gains on investments (3) (23,589) (23,970) Net assets end of period $ 1,857,646 $ 1,731,133 Net assets end of period $ 1,068,209 $ 1,117,120 SERIES I Net assets beginning of period $ 692,518 $ 383,694 Add (deduct) changes during the period: Operations Increase (decrease) in net assets attributable to holders of redeemable units 16,251 23,303 Redeemable unit transactions Proceeds from issue of redeemable units 114, ,477 Cash paid for redemption of redeemable units (33,975) (12,461) Units issued on reinvestment of distributions 11,993 8,701 92, ,717 Distributions From net investment income (11,990) (8,701) From net realized gains on investments (3) (11,993) (8,701) Net assets end of period $ 789,437 $ 614,013 The accompanying notes are an integral part of these financial statements. 5

8 MD Bond Fund Financial Statements Statement of Cash Flows (unaudited) Six months ended June 30, 2015 June 30, 2014 Cash flows from (used in) operating activities Increase (decrease) in net assets attributable to holders of redeemable units $ 37,336 $ 75,863 Adjustments for: Proceeds from sale of investments 1,521, ,975 Purchase of investments (1,586,108) (908,726) Amortization Income (207) Net realized (gain) loss on sale of investments (24,734) (3,377) Change in unrealized (appreciation) depreciation of investments 9,675 (49,383) Change in unrealized (appreciation) depreciation of derivative instruments (127) (201) Net change in non-cash working capital 369 (210) Net cash from (used in) operating activities (41,828) (36,059) Cash flows from (used in) financing activities Proceeds from issue of redeemable units 189, ,011 Distributions to holders of redeemable units, net of reinvested distribution (191) (228) Cash paid for redemption of redeemable units (147,495) (186,221) Net cash from (used in) financing activities 41,930 84,562 Net increase (decrease) in cash during the period ,503 Cash, beginning of period 305 4,533 Cash, end of period $ 407 $ 53,036 Interest received 28,437 28,445 The accompanying notes are an integral part of these financial statements. 6

9 MD Bond Fund Financial Statements Supplementary Schedules (unaudited) Redeemable Unit Transactions For the periods ended June SERIES A Outstanding, beginning of period 136,043, ,564,271 Issued 10,560,812 8,721,953 Redeemed (13,992,992) (22,450,673) Outstanding, end of period 132,610, ,835,551 SERIES I Outstanding, beginning of period 85,823,645 49,857,927 Issued 15,337,398 28,953,513 Redeemed (4,169,429) (1,579,888) Outstanding, end of period 96,991,614 77,231,552 Soft Dollar Commissions The term soft dollar is used to describe a widely accepted business practice by which the investment advisors receive various benefits from the broker through the course of a normal business relationship. Such benefits may be in the form of research or other materials that aid in the investment process, thus contributing to the long-term realization of returns for the unitholders. The soft dollar portion of the commissions paid to dealers for executing portfolio transactions is not ascertainable for the first six months of 2015 and Securities on Loan June 30, 2015 December 31, 2014 Fair value of securities loaned $ 146,844 $ 219,863 Fair value of collateral (non-cash) $ 153,596 $ 227,418 State Street Bank and Trust Co is entitled to receive payments out of the gross amount generated from the securities lending transactions of the Fund and bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. The table below sets out a reconciliation of the gross amount generated from the securities lending transactions of the Fund to the revenue from securities lending disclosed under securities lending income in the Fund s statements of comprehensive income as at June 30, 2015 and June 30, Fees As at June Maximum annualized management fee Series A 0.85% 0.85% Series I Annual fixed administration fee rate Series A 0.07% 0.07% Series I Investment in Unconsolidated Structured Entities As at Jun. 30, 2015 Dec. 31, 2014 Structure Type Mortgage and Asset Backed Securities* Mortgage and Asset Backed Securities* Number of Positions Total Market Value of Underlying Securities (range and weighted average) in billions Fair Value of Fund s Investment % of Net Assets Attributable to Holders of Redeemable Units (3.13) 175, % (2.99) 268, % *Includes Canada Mortgage Bonds ( CMB ) issued by special purpose trust, the Canadian Housing Trust ( the Trust ). The Trust uses monthly cash flows from National Housing Act Mortgage Backed Securities to make fixed interest payments and repay principal at maturity. The timely payment of interest and principle from a CMB is guaranteed by the Canadian Mortgage Housing Corporation and backed by the Government of Canada. Amounts Subject to Master Netting Arrangements In the normal course of business, the Fund enters into various enforceable master netting arrangements with its derivative counterparties. As at June 30, 2015, and December 31, 2014, the Fund did not have any significant netting arrangements. June 30, 2015 June 30, 2014 Gross amount generated from the securities lending transactions $ 62 $ 99 Amounts paid to State Street Bank and Trust Co $ (12) $ (19) Net securities lending income as reported in the Statement of Comprehensive Income $ 50 $ 80 The accompanying notes are an integral part of these financial statements. 7

10 MD Bond Fund Financial Statements Supplementary Schedules (unaudited) Tax Loss Carry Forwards As at June Net capital loss carried forward $ Non-capital losses expiring: 2015 $ 2016 in 2017 and thereafter Total $ The Fund qualifies as a mutual fund trust under the provisions of the Income Tax Act (Canada) and, accordingly, is subject to tax on its income for the year, including net realized capital gains which is not paid or payable to its unitholders as at the end of the year. It is the intention of management that all annual net investment income and sufficient net realized taxable capital gains will be distributed to unitholders annually by December 31, such that there are no Canadian income taxes payable by the Fund. As a result, the Fund does not record income taxes. Since the Fund does not record income taxes, no benefit has been recorded by the Fund in its financial statements in respect of its unused losses as at June 30, The Fund does not have any accumulated net realized capital losses or non-capital losses available for utilization against net realized capital gains or net income for tax purposes in future years. Capital losses have no expiry. Non-capital losses realized in 2005 can be carried forward for up to ten years. Non-capital losses realized in 2006 and after can be carried forward for up to twenty years. The accompanying notes are an integral part of these financial statements. 8

11 MD Bond Fund Financial Instruments Risks (unaudited) Financial Instruments MD Bond Fund (the Fund ) invests in Government of Canada, provincial, municipal, corporate, asset-backed and foreign bonds with mid- to long-terms to maturity as shown in the Schedule of Investment Portfolio. The Fund invests excess cash in high grade short-term notes with maturities of less than 1 year. These investments expose the Fund to risks associated with financial instruments. A description of the risks and how the Fund manages these risks is discussed in Note 7 of the Notes to the Financial Statements. Credit Risk The Fund s credit risk is concentrated in investments in debt instruments. The Fund s maximum exposure to credit risk is the carrying value of short-term investments, domestic and foreign bonds presented on the Schedule of Investment Portfolio as well as the cash presented on the Statement of Financial Position. The Fund s maximum exposure to credit risk from derivative instruments is the unrealized gain as presented in the Schedule of Derivative Instruments. All forward contracts are with counterparties with a credit ratings of A+. As at June 30, 2015 and December 31, 2014, the Fund invested in debt instruments with the following credit ratings: Credit Rating % of Net Assets Attributable to Holders of Redeemable Units June 30, 2015 % of Net Assets Attributable to Holders of Redeemable Units December 31, 2014 Debt Instruments AAA / R-1 (High) 25.1% 33.4% AA / R-1 (Mid) 33.9% 25.8% A / R-1 (Low) 31.1% 31.9% BBB 9.4% 8.4% Total 99.5% 99.5% All credit ratings are from external credit rating agencies such as Dominion Bond Rating Service, Standard & Poor s and Moody s. Currency Risk The Fund does not have significant assets or liabilities denominated in foreign currencies and therefore does not have significant exposure to currency risk. Interest Rate Risk The Fund s exposure to interest rate risk was concentrated in investments in domestic and foreign bonds presented in the Schedule of Investment Portfolio. The amounts of these investments by term to maturity are presented in the table below. In general, longer terms to maturity result in increased interest rate risk. The sensitivity represents the expected impact to Net Assets Attributable to Holders of Redeemable Units if interest rates for all maturities fluctuate by 25 basis points (parallel yield shift). If interest rates rise, Net Assets Attributable to Holders of Redeemable Units will decrease by the amount shown. Conversely, if interest rates fall, Net Assets Attributable to Holders of Redeemable Units will increase by the amount shown. These sensitivities are estimates. Actual results may vary and the variance may be significant. The following table summarizes the Fund s exposure to debt instruments by maturity, as a percentage of Net Assets Attributable to Holders of Redeemable Units. Debt instruments by Date June 30, 2015 December 31, 2014 Fair Value % Fair Value % Less than 1 year 100, % 63, % 1 to 7 years 864, % 952, % 7 to 12 years 551, % 424, % 12 to 20 years 14, % 44, % More than 20 years 317, % 285, % Total 1,848, % 1,770, % Sensitivity (+/-) 35, % 29, % Liquidity Risk The Fund s financial liabilities are all due within one year. Redeemable units are redeemable on demand at the holder s option; however, the Fund does not expect the contractual maturity will be representative of the actual cash outflows, as holders of these instruments typically retain them for a longer period. Other Price Risk The Fund does not hold equity securities and therefore does not have significant exposure to price risk. Concentration Risk Concentration risk arises as a result of the concentration of exposures within the same category. The following table summarizes the Fund s concentration risk as a percentage of long-term investments: Market Segment June 30, 2015 December 31, 2014 Domestic Bonds Corporate Bonds 45.23% 43.04% Government of Canada Bonds 14.23% 22.21% Municipal Bonds 4.66% 4.39% Provincial Bonds 29.30% 24.63% Foreign Bonds Australia 2.32% 2.08% Jersey 0.53% Norway 0.39% 0.41% South Korea 0.23% 0.23% United Kingdom 0.39% 0.39% United States 2.72% 2.62% Total % % The accompanying notes are an integral part of these financial statements. 9

12 MD Bond Fund Financial Instruments Risks (unaudited) Fair Value Hierarchy The following is a summary of the Fund s use of quoted market prices (Level 1), internal models using observable market information as inputs (Level 2), and internal models without observable market information (Level 3) in the valuation of the Fund s securities. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Total* June 30, 2015 Domestic Bonds $ $ 1,666,500 $ 1,666,500 Foreign Bonds 117, ,401 Short-Term Investments 64,545 64,545 Unrealized loss on derivatives (93) (93) Total $ $ 1,848,353 $ 1,848,353 December 31, 2014 Domestic Bonds $ $ 1,633,932 $ 1,633,932 Foreign Bonds 99,292 99,292 Short-Term Investments 36,929 36,929 Unrealized gain on derivatives 2 2 Unrealized loss on derivatives (223) (223) Total $ $ 1,769,932 $ 1,769,932 *The Fund does not hold any Level 3 investments. There have been no significant transfers between Level 1 and Level 2 for the periods January 1, 2015 to June 30, 2015 and January 1, 2014 to December 31, The accompanying notes are an integral part of these financial statements. 10

13 Notes to Financial Statements For the periods ended June 30, 2015 and Name and formation of the Funds ESTABLISHMENT OF THE FUNDS The MD Family of Mutual Funds (individually a Fund and collectively the Funds ) are unincorporated mutual fund trusts formed under the laws of the Province of Ontario pursuant to the Declarations of Trust, and the creation dates areas follows: Series A Units Series I Units Series T Units Private Trust Series MD Balanced Fund September 9, 1992 October 25, 2010 MD Bond Fund April 6, 1988 October 30, 2009 MD Short-Term Bond Fund September 19, 1995 October 30, 2009 MD Dividend Income Fund September 9, 1992 October 30, 2009 October 25, 2010 MD Equity Fund March 1, 1966 October 30, 2009 October 25, 2010 MD Dividend Growth Fund January 4, 2007 October 30, 2009 October 25, 2010 MD International Growth Fund August 9, 2000 October 30, 2009 October 25, 2010 MD International Value Fund January 5, 2004 October 30, 2009 October 25, 2010 MD Money Fund July 12,1983 MD Select Fund October 29, 1993 October 30, 2009 October 25, 2010 MD American Growth Fund September 9, 1992 October 30, 2009 October 25, 2010 MD American Value Fund August 9, 2000 October 30, 2009 October 25, 2010 MD Strategic Yield Fund January 30, 2014 January 30, 2014 MD Strategic Opportunities Fund January 30, 2014 January 30, 2014 MD Precision Conservative Portfolio January 5, 2010 MD Precision Balanced Income Portfolio May 10, 2012 MD Precision Moderate Balanced Portfolio January 5, 2010 MD Precision Moderate Growth Portfolio May 10, 2012 MD Precision Balanced Growth Portfolio January 5, 2010 MD Precision Maximum Growth Portfolio January 5, 2010 MDPIM Canadian Equity Pool June 16, 1999 October 25, 2010 August 9, 2000 MDPIM US Equity Pool August 6, 1999 October 25, 2010 August 9, 2000 MD Growth Investments Limited is a mutual fund corporation incorporated under the laws of Ontario pursuant to the Letters Patent and the Series creation dates are as follows: Series A Series I MD Growth Investments Limited July 18, 1969 October 30, 2009 MD Financial Management Inc. ( the Manager ) is the Manager of the Funds. Prior to June 2, 2010, MD Private Trust was the Manager and Trustee for the MDPIM Canadian Equity Pool and the MDPIM US Equity Pool. The address of the Funds registered office is 1870 Alta Vista Drive, Ottawa, Ontario, Canada, K1G 6R7. Throughout these Notes to the Financial Statements, the shares of MD Growth Investments Limited have been referred to as units to simplify the presentation. These financial statements were authorized for issue by the Manager on August 7,

14 Notes to Financial Statements For the periods ended June 30, 2015 and 2014 SERIES OF UNITS The MDPIM Canadian Equity Pool and MDPIM US Equity Pool Funds offer Private Trust Series and Series T units which may be purchased by either MD Private Investment Counsel (an operating division of MD Physician Services Inc.) or MD Private Trust Company clients who have appointed MD Private Investment Counsel to provide discretionary portfolio management services and advice to them or MD Private Trust Company to provide trust services. Series A units are closed to new subscribers. Investors holding Series A units of these Funds are allowed to hold their units, as well as subscribe for additional Series A units of the Funds. Each of the MD Funds other than MDPIM Canadian Equity Pool and MDPIM US Equity Pool offer Series A units which are available to all MD Management Ltd. clients who are qualified eligible investors. Series I units were established to support the MD Precision Conservative Portfolio, the MD Precision Moderate Balanced Portfolio, the MD Precision Balanced Growth Portfolio, the MD Precision Maximum Growth Portfolio, the MD Precision Balanced Income Portfolio and the MD Precision Moderate Growth Portfolio. These units are only available to the six Funds listed above, and are not charged management fees. Series T units were established in order to support a new tax-efficient investment solution for clients. The series T units generate steady tax-efficient cash flow that does not increase taxable income or impact certain benefits such as Old Age Security. 2. Basis of presentation and adoption of IFRS These financial statements have been prepared in compliance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB). 3. Significant accounting policies CASH Cash is comprised of cash on and demand deposits with financial institutions. They are recorded at cost which represents fair value. FUNCTIONAL AND PRESENTATION CURRENCY The financial statements are presented in Canadian dollars, which is the Funds functional currency. Cash, investments and other assets and liabilities denominated in foreign currencies are translated into Canadian Dollars at the rate of exchange prevailing on each valuation date. Transactions during the year in currencies other than Canadian Dollars are translated into Canadian Dollars at the rate of exchange prevailing on the trade date of the transaction. The difference in the foreign exchange rate between trade date and settlement date of a transaction is recognized in income on the Statement of Comprehensive Income. Foreign exchange gains and losses relating to cash are presented as Gain (Loss) on foreign exchange and those relating to other financial assets and liabilities are presented within net gains or losses on sale of investments or derivatives. All financial information is presented in Canadian dollars and has been rounded to the nearest thousand, unless otherwise stated. FINANCIAL INSTRUMENTS The Funds recognize financial instruments at fair value upon initial recognition. The Funds investments in debt, short-term investments, equity securities and derivatives are classified as financial assets or financial liabilities at fair value through profit or loss (FVTPL). This category has two sub-categories: financial assets and financial liabilities held for trading and those designated at FVTPL at inception. A financial asset or financial liability is classified as held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing in the near term or if on initial recognition is part of a portfolio of identifiable financial investments that are managed together and for which there is evidence of a recent actual pattern of short-term profit taking. The Funds derivatives are also categorized as held for trading. The Funds do not classify any derivatives as hedges in a hedging relationship. Financial assets and financial liabilities designated at FVTPL at inception are financial instruments that are not classified as held for trading but are managed, and their performance is evaluated on a fair value basis in accordance with the Funds investment strategy. All of the Funds investments in debt, short-term investments and equity securities have been designated as FVTPL at inception and are presented on the Statement of Financial Position as Investments. Cash is measured at fair value upon recognition and subsequently at amortized cost. Regular way purchases and sales of financial assets are recognized at their trade date. Transaction costs related to investments and derivatives are expensed as incurred in the Statement of Comprehensive Income. Subsequent to initial recognition, all financial assets and liabilities at FVTPL are measured at fair value. Gains and losses arising from changes in the fair value are presented in the Statement of Comprehensive Income within Change in unrealized appreciation (depreciation) of investments for financial assets and liabilities designated at FVTPL and within Change in unrealized appreciation (depreciation) of derivatives for derivatives in the periods in which they arise. The interest for distribution purposes shown on the Statement of Comprehensive Income represents the coupon interest received by the Funds accounted for on an accrual basis. Dividend income and distributions to unitholders are recorded on the ex-dividend date. Distributions from underlying funds out of interest, foreign income and related withholding taxes, Canadian dividends and net realized capital gains are recognized when declared. Realized gains or losses from investment transactions and the unrealized appreciation or depreciation of investments are computed on an average cost basis, which exclude brokerage commissions and other trading expenses. Brokerage commissions and other trading expenses are charged to income as incurred. Other financial assets and liabilities, such as accrued interest and dividends receivable, accounts receivable for investment transactions, subscriptions receivable, amounts receivable for securities lending transactions, distributions payable, accounts payable for investment transactions and redemptions payable are recognized initially at fair value, net of transaction costs, and subsequently stated at amortized cost using the effective interest rate method. Under this method, financial assets and liabilities reflect the amount required to be received or paid, discounted, when appropriate, at the contracts effective interest rate. The Funds accounting policies for measuring the fair value of their investments and derivatives are identical to those used in measuring the net asset value (NAV) for transactions with unitholders. The Funds obligation for net assets attributable to holders of redeemable units is presented at the redemption amount. 2

15 Notes to Financial Statements For the periods ended June 30, 2015 and 2014 OFFSETTING FINANCIAL INSTRUMENTS Financial assets and liabilities are offset and the net amount reported in the statement of financial position where the Funds currently have a legally enforceable right to set-off the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. In the normal course of business, the Funds may enter into various master netting agreements or similar agreements that do not meet the criteria for offsetting in the statement of financial position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or termination of the contracts. Transactions with counterparties are governed by separate master netting agreements. Each agreement allows for net settlement of certain open contracts where the Fund and respective counterparty both elect to settle on a net basis. In the absence of such an election, contracts will be settled on a gross basis. However, each party to the master netting agreement will have the option to settle all open contacts on a net basis in the event of default of the other party. FAIR VALUE MEASUREMENT Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments are categorized as FVTPL and are recorded at fair value. In the case of securities traded in an active market, fair value is based on quoted market prices at the close of trading on the reporting date as provided by independent pricing services. The Funds use the last traded market price for both financial assets and financial liabilities where the last traded price falls within the day s bid-ask spread. In circumstances where the last traded price is not within the bid-ask spread, the Manager determines the point within the bid-ask spread that is most representative of fair value based on the specific facts and circumstances. In the case of investments not traded in an active market, or for those securities for which the Manager feels the latest market prices are not reliable, fair value is estimated based on valuation techniques established by the Manager. Valuation techniques established by the Manager are based on observable market data except in situations where there is no relevant or reliable market data. The value of securities estimated using valuation techniques not based on observable market data, if any, is disclosed in the Financial Instruments Risks section of the financial statements. FORWARD CURRENCY CONTRACTS The Funds may enter into forward currency contracts for either hedging or non-hedging purposes where such activity is consistent with their investment objectives and as permitted by the Canadian securities regulatory authorities. Investments in forward currency contracts are entered into with approved counterparties and are recorded at fair value. Changes in fair value of forward currency contracts are recorded in Change in unrealized appreciation (depreciation) of derivatives. Upon closing of the contracts, the accumulated gains or losses are reported in Net realized gain (loss) on sale of derivative instruments. Unrealized gains or losses on forward currency contracts are categorized as financial assets or liabilities held for trading. The contractual amounts of open contracts are disclosed in the Schedule of Investment Portfolio in the Schedule of Derivative Instruments. FUTURES CONTRACTS Futures contracts are valued on each valuation day using the closing market price posted on the related public exchange. All gains or losses arising from futures contracts are recorded as part of Change in unrealized appreciation (depreciation) of derivatives in the Statement of Comprehensive Income until the contracts are closed out or expire, at which time the gains or losses are realized and reported as Net realized gain (loss) on derivative instruments in the Statement of Comprehensive Income. CAPITAL RISK MANAGEMENT Units issued and outstanding are considered to be the capital of the Funds. The Funds do not have any specific capital requirements on the subscription and redemption of units, other than certain minimum subscription. The Funds units are offered for sale on any business day and may be redeemed or issued at the Net Asset Value (NAV) per unit for the respective series on that business day. A business day refers to any day the Toronto Stock Exchange is open for business. The NAV for each series is computed daily by calculating the value of that series proportionate share of net assets and liabilities of the Fund common to all series less liabilities attributable to that series. Expenses directly attributable to a series are charged to that series. Assets, common liabilities, revenues and other expenses are allocated proportionately to each series based upon the relative NAVs of each series. The NAV per unit is determined by dividing the NAV of each series of a Fund by the total number of units of that series outstanding. INCREASE (DECREASE) IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS PER UNIT Increase (decrease) in net assets attributable to holders of redeemable units per unit in the Statement of Comprehensive Income represents the increase or decrease in net assets attributable to holders of redeemable units attributable to each series of units for the period, divided by the weighted average units outstanding in that series during the period. SECURITIES LENDING TRANSACTIONS A Fund may lend portfolio securities to earn additional income through a securities lending agreement with its custodian. The aggregate market value of all securities loaned by the Fund cannot exceed 50% of the assets of the Fund. The Fund receives collateral in the form of securities deemed acceptable under National Instrument , Mutual Funds ( NI ) of at least 102% of the fair value of securities on loan. Collateral held is typically government and corporate bonds. Income from securities lending is recorded as Securities lending on a monthly basis when it is receivable. Securities lending details are listed in Securities on Loan included in the supplementary schedules to the financial statements. REDEEMABLE UNITS The Funds issue different series of redeemable units, which are redeemable at the holder s option and do not have identical rights. Such units are classified as financial liabilities. Redeemable units can be put back to the Funds at any date for cash equal to a proportionate share of the Funds net asset value attributable to the series. The redeemable units are carried at the redemption amount that is payable at the Statement of Financial Position date if the holder exercises the right to put the unit back to the Funds. 3