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 MDPIM Canadian Equity Pool Schedule of Investment Portfolio as at June 30, 2015 (unaudited) (in $000 s except for number of shares) Number of Shares Average Cost Fair Value Number of Shares Average Cost Fair Value DOMESTIC EQUITIES Consumer Discretionary (9.87%) Alimentation Couche-Tard Inc. Cl. B Sub. Voting 661,300 18,705 35,333 Amaya Inc. 92,900 2,941 3,179 BRP Inc. Sub-Voting 98,400 2,806 2,872 Canadian Tire Corporation, Limited Cl. A 177,153 19,326 23,663 Cineplex, Inc. 85,233 3,686 4,008 Clearwater Seafoods Inc. 166,500 1,510 2,038 Cogeco Cable Inc. 38,200 2,326 2,759 Cogeco Inc., Sub. Voting 57,654 3,472 3,305 Corus Entertainment Inc. Cl. B Non-Voting 24, Dorel Industries Inc. Cl. B Sub. Voting 27,660 1, Gildan Activewear Inc. 363,080 10,085 15,064 Great Canadian Gaming Corporation 128,350 2,566 3,082 Hudson's Bay Co 460,504 9,690 12,779 Magna International Inc. 246,208 11,093 17,259 Martinrea International Inc. 291,200 3,749 3,887 North West Company, Inc. 64,900 1,598 1,607 Reitmans (Canada) Limited Cl. A 440,541 3,111 2,868 Restaurant Brands International Inc. 850,870 41,441 40,732 RONA Inc. 192,800 2,819 2,927 The Intertain Group Limited 212,300 3,616 3,658 Thomson Reuters Corporation 372,353 13,836 17,709 Total for Consumer Discretionary 159, ,069 Consumer Staples (3.97%) AGT Food and Ingredients Inc. 94,700 2,482 3,002 Cott Corporation 707,256 8,060 8,636 Empire Company Limited Cl. A 78,795 5,692 6,932 High Liner Foods Inc. 112,000 2,612 2,537 Loblaw Companies Limited 358,736 20,792 22,630 Metro Inc. 535,561 12,595 17,952 Premium Brands Holdings Corp. 124,200 3,714 3,987 Saputo Inc. 481,867 14,304 14,557 Total for Consumer Staples 70,251 80,233 Energy (18.99%) Advantage Oil & Gas Ltd. 1,139,180 7,247 9,000 ARC Resources Ltd. 276,575 6,648 5,918 Baytex Energy Corporation 334,523 9,655 6,500 Birchcliff Energy Ltd. 251,000 1,995 1,749 BlackPearl Resources Inc. 3,612,702 5,395 3,938 Bonavista Energy Corporation 1,154,813 12,147 7,841 Calfrac Well Services Ltd. 845,507 9,904 6,519 Canada Energy Services & Technology Corporation 569,350 3,502 4,099 Canadian Natural Resources Ltd. 1,059,941 36,333 35,933 CanElson Drilling Inc. 1,013,718 4,440 4,379 Canfor Pulp Products, Inc. 192,800 2,380 3,019 Cenovus Energy Inc. 396,129 11,275 7,911 Cequence Energy Ltd. 977, Chorus Aviation, Inc. Cl. B 464,600 1,931 3,071 Crescent Point Energy Corp. 430,112 15,315 11,024 Crew Energy Inc. 1,334,701 9,461 7,621 Enbridge Inc. 530,359 24,334 30,978 EnCana Corporation 622,493 11,970 8,572 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. Ensign Energy Services, Inc. 697,307 10,030 8,535 Gibson Energy Inc. 176,241 4,463 3,974 Inter Pipeline Ltd. 234,900 7,277 6,742 Kelt Exploration Ltd. 582,202 4,919 4,914 Keyera Corp. 594,692 22,022 24,799 Major Drilling Group International Inc. 1,103,381 9,419 6,896 Mullen Group Limited 313,793 6,999 6,404 Nuvista Energy Ltd. 1,451,479 9,683 9,710 Paramount Resources Ltd. 237,414 11,158 6,814 Pembina Pipeline Corporation 380,987 17,247 15,380 Peyto Exploration & Development Corporation 193,875 6,085 5,919 Precision Drilling Corporation 50, Raging River Exploration Inc. 461,600 3,170 4,030 Savanna Energy Services Corp. 60, Secure Energy Services Inc. 525,330 7,950 6,714 ShawCor Ltd. 85,259 3,386 3,120 Suncor Energy Inc. 955,708 33,515 32,876 Tourmaline Oil Corp. 447,257 19,946 16,781 TransCanada Corporation 700,877 37,150 35,577 Vermilion Energy, Inc. 184,095 11,015 9,932 Western Energy Services Corp. 660,676 4,844 3,825 Whitecap Resources, Inc. 915,147 12,042 12,062 Total for Energy 417, ,344 Financials (31.24%) Bank of Montreal 427,689 30,597 31,654 Brookfield Asset Management Inc. Cl. A Limited Voting 1,551,053 53,263 67,688 Canadian Imperial Bank of Commerce 691,977 64,457 63,710 CI Financial Corporation 123,220 3,979 4,140 E-L Financial Corporation Ltd. 3,537 2,013 2,319 Element Financial Corporation 732,296 10,257 14,463 Genworth MI Canada Inc. 71,154 2,113 2,334 Home Capital Group Inc. 436,027 16,183 18,871 IGM Financial, Inc. 244,060 10,836 9,709 Industrial Alliance Insurance and Financial Services Inc. 234,908 9,308 9,868 Laurentian Bank of Canada 60,500 2,955 2,912 Manulife Financial Corporation 1,111,275 21,552 25,793 National Bank of Canada 80,356 3,462 3,770 Onex Corporation 272,548 17,690 18,836 Power Corporation of Canada 628,093 17,565 20,061 Power Financial Corporation 638,543 20,362 22,904 PrairieSky Royalty Ltd. 124,227 3,766 3,915 Royal Bank of Canada 1,235,119 83,679 94,338 Senvest Capital Inc. 4, Sun Life Financial Inc. 638,423 24,024 26,622 The Bank of Nova Scotia 1,315,780 80,680 84,829 The Toronto-Dominion Bank 1,878,490 88,396 99,635 Tricon Capital Group, Inc. 283,100 3,132 3,089 Total for Financials 571, ,250 Health Care (2.31%) Concordia Healthcare Corp. 38,500 3,348 3,475 Nobilis Health Corp. 338,100 1,703 2,870 Valeant Pharmaceuticals International, Inc. 145,857 18,463 40,413 Total for Health Care 23,514 46,758 MD Financial Management Inc. MDPIM Interim Financial Statements 2015

4 MDPIM Canadian Equity Pool Schedule of Investment Portfolio as at June 30, 2015 (unaudited) (in $000 s except for number of shares) Number of Shares Average Cost Fair Value Number of Shares Average Cost Fair Value Industrials (12.51%) Air Canada 399,200 3,679 5,273 ATS Automation Tooling Systems Inc. 250,500 3,996 3,830 Badger Daylighting Ltd. 313,720 7,895 8,216 CAE Inc. 160,173 1,949 2,382 Canadian National Railway Company 976,320 56,421 70,354 Canadian Pacific Railway Limited 201,919 34,435 40,387 DIRTT Environmental Solutions Ltd. 484,700 3,223 3,131 Exchange Income Corp. 141,700 3,146 2,865 Exco Technologies Ltd. 209,900 1,239 3,214 Hardwoods Distribution Inc. 257,900 3,658 4,343 Linamar Corporation 66,668 1,593 5,408 MacDonald, Dettwiler and Associates Ltd. 288,973 22,050 26,374 Magellan Aerospace Corporation 196,400 1,683 3,351 New Flyer Industries Inc. 259,400 3,635 4,016 Progressive Waste Solutions Ltd. 75,515 1,921 2,530 SNC-Lavalin Group Inc. 198,849 8,908 8,344 Stantec Inc. 80,200 2,148 2,927 Stella-Jones Inc. 69,900 2,356 2,902 Toromont Industries Ltd. 453,296 11,856 14,161 Transcontinental Inc. Cl. A 169,600 2,505 2,610 TransForce, Inc. 402,420 11,572 10,194 Uni-Select Inc. 77,724 2,476 3,659 Westjet Airlines Ltd. 435,948 12,241 11,492 WSP Global Inc. 279,852 10,328 11,001 Total for Industrials 214, ,964 Information Technology (2.47%) Celestica Inc. Sub. Voting 199,700 2,559 2,904 CGI Group Inc. Cl. A Sub. Voting 441,357 16,041 21,560 Enghouse Systems Limited 55,100 2,328 2,683 Kinaxis Inc. 128,700 3,379 3,583 Open Text Corporation 296,767 15,936 15,055 Sandvine Corporation 770,800 3,214 2,767 Vecima Networks Inc. 133,900 1,411 1,434 Total for Information Technology 44,868 49,986 Materials (9.92%) Agnico-Eagle Mines Limited 225,240 8,816 7,987 Agrium Inc. 145,470 14,531 19,256 AirBoss Of America Corp. 229,100 3,277 5,109 Barrick Gold Corporation 76,099 1,786 1,016 Canam Group Inc. 243,500 2,893 3,387 Canexus Corp. 357,123 1, Cascades Inc. 455,425 3,308 3,256 CCL Industries Inc. Cl. B 129,372 14,555 19,820 Claude Resources Inc. 4,137,200 2,873 2,772 Dominion Diamond Corporation 31, First Quantum Minerals Ltd. 590,897 10,727 9,649 Franco-Nevada Corporation 87,681 4,639 5,223 Goldcorp Inc. 743,720 19,699 15,075 Interfor Corporation 478,013 7,795 9,795 Intertape Polymer Group Inc. 207,100 3,839 3,877 Kinross Gold Corp. 91, Kirkland Lake Gold Inc. 500,700 2,080 2,819 Klondex Mines Ltd. 1,198,400 3,199 4,075 Lucara Diamond Corporation 1,266,700 2,038 2,521 Methanex Corporation 23,216 1,120 1,619 Nevsun Resources Ltd. 701,674 3,014 3,298 OceanaGold Corporation 1,072,000 3,107 3,313 Osisko Gold Royalties Ltd. 179,400 2,938 2,820 Potash Corporation of Saskatchewan Inc. 785,625 30,518 30,388 Richmont Mines Inc. 154, Russel Metals Inc. 213,903 5,486 4,862 Sherritt International Corporation 76, Silver Wheaton Corp. 547,601 13,307 11,855 Tahoe Resources Inc. 197,500 3,313 2,990 Teck Resources Ltd. Cl. B Sub-Voting 81,873 2,083 1,014 West Fraser Timber Co. Ltd. 157,679 8,869 10,822 Winpak Ltd. 79,156 2,713 2,998 Yamana Gold Inc. 1,868,506 14,338 7,026 Total for Materials 200, ,748 Telecommunication Services (3.14%) Mitel Networks Corporation 271,700 3,384 3,011 Rogers Communications Inc. Cl. B 612,231 26,273 27,122 TELUS Corporation 777,285 26,393 33,446 Total for Telecommunication Services 56,050 63,579 Utilities (1.72%) ATCO Ltd. Cl. I 483,616 20,882 19,098 Canadian Utilities Limited Cl. A 139,568 5,134 5,020 Capital Power Corp. 64,290 1,549 1,385 Northland Power Inc. 81,082 1,277 1,283 Parkland Fuel Corporation 322,413 7,080 8,021 Total for Utilities 35,922 34,807 Exchange Traded Funds (1.64%) ishares S&P/TSX 60 Index Fund 212,400 4,672 4,526 ishares S&P/TSX Capped Composite Index Fund 1,250,897 29,736 28,771 Total for Exchange Traded Funds 34,408 33,297 Total for Domestic Equities (97.78%) 1,829,392 1,979,035 DOMESTIC EQUITIES INCOME TRUST Consumer Discretionary (0.15%) Boyd Group Income Fund 56,300 2,031 2,968 Total for Consumer Discretionary 2,031 2,968 Real Estate (0.07%) CT Real Estate Investment Trust 30, Dream Office Real Estate Investment Trust 41,563 1,125 1,020 Total for Real Estate 1,440 1,388 Total for Domestic Equities Income Trust (0.22%) 3,471 4,356 FOREIGN EQUITIES Cayman Islands (0.03%) Endeavour Mining Corp. 1,116, Total for Cayman Islands 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. MD Financial Management Inc. MDPIM Interim Financial Statements 2015

5 MDPIM Canadian Equity Pool Schedule of Investment Portfolio as at June 30, 2015 (unaudited) (in $000 s except for number of shares) Number of Shares Average Cost Fair Value Jersey (0.06%) Centamin PLC 941,200 1,233 1,129 Total for Jersey 1,233 1,129 United States (0.45%) Domtar Corporation 176,098 7,736 9,113 Total for United States 7,736 9,113 Total for Foreign Equities (0.54%) 9,667 10,934 Total Long-term Investments (98.54%) $1,842,530 $1,994,325 Maturity Date Yield % Maturity Value or Principal Amount Average Cost Fair Value SHORT-TERM INVESTMENTS Government of Canada 2/11/ % 4,555 4,537 4,537 Government of Canada 2/11/ % 1,575 1,569 1,569 Government of Canada 2/11/ % 9,200 9,162 9,162 Government of Canada 2/11/ % 6,035 6,010 6,010 Government of Canada 2/11/ % 11,300 11,253 11,253 Total for Short-term Investments (1.61%) 32,665 32,531 32,531 Total Investments (100.15%) $1,875,061 $2,026,856 Cash and Other Net Assets (-0.15%) (3,119) Total Net Assets Attributable to Holders of Redeemable Units (100.00%) $2,023,737 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. MD Financial Management Inc. MDPIM Interim Financial Statements 2015

6 MDPIM Canadian Equity Pool 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 $ 2,026,856 $ 2,496,595 Cash 1,799 36,749 Dividends receivable 4,870 5,428 Receivable for investment transactions 4,329 1,680 Subscriptions receivable 1,621 2,547 2,039,475 2,542,999 Liabilities Current liabilities Payable for investment transactions 14,264 25,284 Distributions payable 3 Redemptions payable 1, ,738 25,401 Net assets attributable to holders of redeemable units $ 2,023,737 $ 2,517,598 Net assets attributable to holders of redeemable units per Series Series A $ 11,810 $ 12,099 Series T 862 1,297 Private Trust Series $ 2,011,065 $ 2,504,202 Number of redeemable units outstanding (see Supplementary Schedules) Series A 557, ,309 Series T 100, ,474 Private Trust Series 101,758, ,556,199 Net assets attributable to holders of redeemable units per unit, per Series Series A $ $ Series T Private Trust Series $ $ 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 Dividends $ 33,953 $ 25,691 Interest for distribution purposes Net realized gain (loss) on sale of investments 74,401 73,126 Change in unrealized appreciation (depreciation) of investments (84,789) 139,334 Net gain (loss) on investments 23, ,415 Net gain (loss) on derivatives Net realized gain (loss) on derivative instruments (7,439) (3) Net gain (loss) on derivatives (7,439) (3) Other income Foreign exchange gain (loss) on cash Securities lending (see Supplementary Schedules) Total other income Total income (loss) 16, ,870 Expenses Management fees (Note 4) Regulatory filing fees Audit fees 14 7 Custodial fees Securityholder reporting costs Administration fees Independent Review Committee (IRC) fees 3 4 Withholding tax on foreign income Operating expenses absorbed by the Fund Manager (Note 4) (484) (668) Transaction costs 2,531 1,776 Total expenses 2,644 1,879 Increase (decrease) in net assets attributable to holders of redeemable units $ 13,997 $ 236,991 Increase (decrease) in net assets attributable to holders of redeemable units per Series Series A $ 8 $ 1,449 Series T $ 6 $ 92 Private Trust Series $ 13,983 $ 235,450 Increase (decrease) in net assets attributable to holders of redeemable units per unit, per Series Series A $ 0.01 $ 2.18 Series T $ 0.05 $ 1.09 Private Trust Series $ 0.11 $ 2.40 The accompanying notes are an integral part of these financial statements. MD Financial Management Inc. MDPIM Interim Financial Statements 2015

7 MDPIM Canadian Equity Pool Financial Statements Statement of Changes in Net Assets Attributable to Holders of Redeemable Units ( Net assets ) ( unaudited ) (in $000 s) Six months ended June 30, 2015 June 30, 2014 SERIES A Net assets beginning of period $ 12,099 $ 13,624 Add (deduct) changes during the period: Operations Increase (decrease) in net assets attributable to holders of redeemable units 8 1,449 Redeemable unit transactions Proceeds from issue of redeemable units 613 1,039 Cash paid for redemption of redeemable units (908) (2,751) Units issued on reinvestment of distributions (264) (1,669) Distributions From net investment income (33) (45) (33) (45) Net assets end of period $ 11,810 $ 13,359 SERIES T Net assets beginning of period $ 1,297 $ 757 Add (deduct) changes during the period: Operations Increase (decrease) in net assets attributable to holders of redeemable units 6 92 Redeemable unit transactions Proceeds from issue of redeemable units Cash paid for redemption of redeemable units (726) Units issued on reinvestment of distributions (17) (392) 115 Distributions From net investment income (17) (10) Return of capital (32) (19) (49) (29) Six months ended June 30, 2015 June 30, 2014 PRIVATE TRUST SERIES Net assets beginning of period $ 2,504,202 $ 1,877,600 Add (deduct) changes during the period: Operations Increase (decrease) in net assets attributable to holders of redeemable units 13, ,450 Redeemable unit transactions Proceeds from issue of redeemable units 426, ,727 Cash paid for redemption of redeemable units (932,034) (185,070) Units issued on reinvestment of distributions 33,541 23,635 (472,140) 346,292 Distributions From net investment income (34,977) (24,577) From net realized gains on investments (3) (34,980) (24,577) Net assets end of period $ 2,011,065 $ 2,434,765 TOTAL FUND Net assets beginning of period $ 2,517,598 $ 1,891,981 Add (deduct) changes during the period: Operations Increase (decrease) in net assets attributable to holders of redeemable units 13, ,991 Redeemable unit transactions Proceeds from issue of redeemable units 427, ,898 Cash paid for redemption of redeemable units (933,668) (187,821) Units issued on reinvestment of distributions 33,572 23,661 (472,796) 344,738 Distributions From net investment income (35,027) (24,632) From net realized gains on investments (3) Return of capital (32) (19) (35,062) (24,651) Net assets end of period $ 2,023,737 $ 2,449,059 Net assets end of period $ 862 $ 935 The accompanying notes are an integral part of these financial statements. MD Financial Management Inc. MDPIM Interim Financial Statements 2015

8 MDPIM Canadian Equity Pool Financial Statements Statement of Cash Flows (unaudited) (in $000 s) 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 $ 13,997 $ 236,991 Adjustments for: Proceeds from sale of investments 1,945, ,833 Purchase of investments (1,499,878) (927,299) Amortization Income (197) Unrealized foreign exchange (gain) loss on cash 1 Net realized (gain) loss on sale of investments (74,401) (73,126) Change in unrealized (appreciation) depreciation of investments 84,789 (139,334) Net change in non-cash working capital 558 (1,186) Net cash from (used in) operating activities 470,625 (316,120) Cash flows from (used in) financing activities Proceeds from issue of redeemable units 428, ,779 Distributions to holders of redeemable units, net of reinvested distribution (1,493) (973) Cash paid for redemption of redeemable units (932,308) (187,874) Net cash from (used in) financing activities (505,575) 319,932 Unrealized foreign exchange gain (loss) on cash (1) Net increase (decrease) in cash during the period (34,950) 3,811 Cash, beginning of period 36,749 65,416 Cash, end of period $ 1,799 $ 69,227 Interest received Dividends received, net of withholding taxes 34,481 24,492 The accompanying notes are an integral part of these financial statements. MD Financial Management Inc. MDPIM Interim Financial Statements 2015

9 MDPIM Canadian Equity Pool Financial Statements Supplementary Schedules (unaudited) Redeemable Unit Transactions For the periods ended June SERIES A Outstanding, beginning of period 569, ,765 Issued 29,674 49,559 Redeemed (41,355) (127,491) Outstanding, end of period 557, ,833 SERIES T Outstanding, beginning of period 145,474 84,284 Issued 38,331 13,531 Redeemed (83,608) (1,889) Outstanding, end of period 100,197 95,926 PRIVATE TRUST SERIES Outstanding, beginning of period 125,556,199 96,357,797 Issued 22,668,420 25,206,977 Redeemed (46,465,811) (9,089,821) Outstanding, end of period 101,758, ,474,953 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 (in $000 s) June 30, 2015 December 31, 2014 Fair value of securities loaned $ 27,130 $ 199,497 Fair value of collateral (non-cash) $ 27,964 $ 206,852 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 Funds 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, June 30, 2015 June 30, 2014 Gross amount generated from the securities lending transactions $ 213 $ 189 Amounts paid to State Street Bank and Trust Co $ (41) $ (35) Net securities lending income as reported in the Statement of Comprehensive Income $ 172 $ 154 Fees As at June Maximum annualized management fee Series A 1.25% 1.25% Series T Private Trust Series Amounts Subject to Master Netting Arrangements (in $000 s) The Fund does not enter into any enforceable master netting arrangements. Tax Loss Carry Forwards As at June 30 (in $000 s) 2015 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. MD Financial Management Inc. MDPIM Interim Financial Statements 2015

10 MDPIM Canadian Equity Pool Financial Instruments Risks (unaudited) (in $000 s) Financial Instruments MDPIM Canadian Equity Pool (the Fund ) invests in Canadian equity securities as shown in the Schedule of Investment Portfolio. he 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. The Fund s exposure and sensitivity to these risks are presented below. 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 short-term debt instruments. The Fund s maximum exposure to credit risk from cash and short-term investments is presented on the Statement of Financial Position. 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) 1.6% 2.0% Total 1.6% 2.0% All credit ratings are from external credit rating agencies such as Dominion Bond Rating Service, Standard & Poor s and Moody s. Currency Risk Exposures to foreign currencies as at June 30, 2015 and December 31, 2014 are presented in the table below. Short-term investments and debt instruments, which are monetary in nature, are included in the Investments at Fair Value column. Currency Cash and Other Net Assets Attributable to Holders of Investments Redeemable at Units Fair Value Derivative Exposure Net Currency Exposure Percentage of Net Assets Attributable to Holders of Redeemable Units June 30, 2015 U.S. Dollar % Interest Rate Risk The majority of the Fund s financial assets are non-interest bearing. The maturity dates of the interest bearing assets held by the Fund are less than 1 year. Therefore, the Fund s exposure to interest rate risk is not significant. 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 As at June 30, 2015, 98.5% (December 31, %) of the Fund s Net Assets Attributable to Holders of Redeemable Units were invested in equity financial instruments traded in active markets. If prices of securities traded on these markets decrease by 10%, with all other factors remaining constant, Net Assets Attributable to Holders of Redeemable Units could fall by approximately $199,432 (December 31, 2014 $244,668). Conversely, if prices increase by 10%, Net Assets Attributable to Holders of Redeemable Units could rise by approximately $199,432 (December 31, 2014 $244,668). These sensitivities are estimates. Actual results may vary and the variance may be significant. 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 Equities Consumer Discretionary 10.03% 7.90% Consumer Staples 4.02% 2.78% Energy 19.27% 20.48% Exchange Traded Funds 1.67% 3.73% Financials 31.70% 30.66% Health Care 2.34% 2.57% Industrials 12.68% 13.60% Information Technology 2.51% 2.77% Materials 10.07% 10.11% Telecommunication Services 3.19% 3.06% Utilities 1.75% 1.68% December 31, 2014 U.S. Dollar % As at June 30, 2015, if the Canadian Dollar had strengthened against all other currencies by 10%, the Net Assets Attributable to Holders of Redeemable Units of the Fund could have decreased by approximately $45, or 0.00% of Net Assets Attributable to Holders of Redeemable Units (December 31, 2014 $43 or 0.00%). Conversely, had the Canadian Dollar weakened against all other currencies by 10%, the Net Assets Attributable to Holders of Redeemable Units of the Fund could have increased by approximately $45, or 0.00% of Net Assets Attributable to Holders of Redeemable Units (December 31, 2014 $43 or 0.00%). These sensitivities are estimates. Actual results may vary and the variance may be material. Domestic Equities Income Trust Consumer Discretionary 0.15 % 0.20% Real Estate 0.07% 0.07% Foreign Equities Cayman Islands 0.03% Jersey 0.06% 0.02% United States 0.46% 0.37% Total % % The accompanying notes are an integral part of these financial statements. MD Financial Management Inc. MDPIM Interim Financial Statements 2015

11 MDPIM Canadian Equity Pool Financial Instruments Risks (unaudited) (in $000 s) 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 Equities $ 1,983,391 $ $ 1,983,391 Foreign Equities 10,934 10,934 Short-Term Investments 32,531 32,531 Total $ 1,994,325 $ 32,531 $ 2,026,856 December 31, 2014 Domestic Equities $ 2,437,114 $ $ 2,437,114 Foreign Equities 9,566 9,566 Short-Term Investments 49,915 49,915 Total $ 2,446,680 $ 49,915 $ 2,496,595 *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. MD Financial Management Inc. MDPIM Interim Financial Statements 2015

12 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, MD Family of Funds Interim Financial Statements 2015

13 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. MD Family of Funds Interim Financial Statements

14 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 MD Family of Funds Interim Financial Statements 2015

15 Notes to Financial Statements For the periods ended June 30, 2015 and 2014 INVOLVEMENT IN UNCONSOLIDATED STRUCTURED ENTITIES A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. Certain Funds investment strategy entails trading in other funds on a regular basis. The Funds considers all of its investments in other funds ( Investee Funds ) to be investments in unconsolidated structured entities. The Funds invest in Investee Funds whose objectives range from conserving principal to maximizing dividend income to long-term capital growth and whose investment strategies do not include leverage. The Investee Funds finance their operations by issuing redeemable units which are puttable at the holder s option and entitles the holder to a proportionate stake in the respective in the Investee Fund s net assets. The Funds hold redeemable units in each of their Investee Funds and the Funds have the right to request redemption of their investment in Investee Funds daily. The Funds investments in Investee Funds are subject to the terms and conditions of the respective Investee Fund s offering documentation. The change in fair value of each Investee Fund is included in the Statement of Comprehensive Income in Change in unrealized appreciation (depreciation) of investments and derivatives. The Funds maximum exposure to loss from their interest in Investee Funds is equal to the fair value of their investments in Investee Funds. Fund specific exposure to Investee Funds is disclosed in the Financial Instrument Risk section of the financial statements. Once a Fund has disposed of its shares in an Investee Fund the Fund ceases to be exposed to any risk from that investee fund. Certain Funds invest in Exchange Traded Funds ( ETFs ) which are disclosed on the schedule of investment portfolio and these Funds have determined that their investments in such ETFs are deemed unconsolidated structured entities. These ETFs replicate, to the extent possible, the performance of the applicable benchmark indices, or seek to provide long-term capital growth or income, as applicable, by investing primarily in and holding the constituent securities of the applicable benchmark indices in substantially the same proportion as they are reflected in the applicable benchmark indices or seek to track the investment results of applicable benchmark indices. The ETFs finance their operations by issuing redeemable shares which are puttable at the holder s option and entitle the holder to a proportional stake in the respective ETF s net asset value. The Underlying ETFs are domiciled in the U.S. and are listed on a recognized public stock exchange. Certain Funds invest in mortgage-related and other asset-backed securities ( MBS ). These securities include mortgage pass-through securities, collateralized mortgage obligations, commercial mortgage-backed securities, asset-backed securities, collateralized debt obligations and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. The debt and equity securities issued by these securities may include tranches with varying levels of subordination. These securities may provide a monthly payment which consists of both interest and principal payments. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. Asset-backed securities are created from many types of assets, including auto loans, credit card receivables, home equity loans, and student loans. The Funds maximum exposure to loss from their interest in MBS is equal to the fair value of their investments in such securities as disclosed on the schedule of investment portfolio. 4. Expenses and other related party transactions The management and administration fees are unique to each Fund and are unique to each series of units, and are disclosed on the Schedule of Fees. The Manager provides the Funds with investment management and administrative services, including providing key management personnel to the Funds. In return, the Manager receives a management fee based on the NAV of the Funds calculated on a daily basis and paid weekly. No management or administration fee, or operating expenses are charged in respect of Series I units. These units are only available to be held by other MD Funds. No management fee or operating expenses are charged in respect of units of the Private Trust Series of the MDPIM Canadian Equity Pool and MDPIM US Equity Pool. Investors in these series of units have agreed to pay a managed account fee directly to MD Private Investment Counsel. These managed account fees are charged directly to each unitholder to a maximum rate of 1.56% per annum plus custodial fees. The Manager bears all of the operating expenses of the Funds (other than certain transaction costs, taxes and borrowing costs) in return for administration fees, calculated as a fixed annual percentage of the Funds NAV. INDEPENDENT REVIEW COMMITTEE The Manager has established an Independent Review Committee ( IRC ) as required under National Instrument , Independent Review Committee for Investment Funds ( ). The IRC reviews conflict of interest matters related to the operations of the Funds. In addition, in some circumstances, in place of obtaining unitholder approval, a Fund may be reorganized with or its assets transferred to another mutual fund managed by the Manager or an affiliate. This requires IRC approval, and that unitholders are sent a written notice at least 60 days before the effective date. The approval of the IRC is also required for a change of auditor. The IRC is composed of three persons who are independent of the Manager, the Funds and entities related to the Manager. SHORT-TERM TRADING/EARLY REDEMPTION FEE Clients who redeem or switch units or shares of an MD Fund are charged an early redemption fee equal to 2.00% of the amount redeemed or switched if the redemption or switch occurs within sixty (60) days of the date that the units or shares were purchased or switched. Redemption fees are recorded as income in the period of early redemption. The early redemption fee does not apply to redemptions or switches: of units of MD Money Fund; made in connection with any systematic and scheduled withdrawal program; where the amount of the redemption or switch is less than $10,000; or made as a result of the recommendation of your MD financial consultant related to a financial plan. A table has been included in the Supplementary Schedules section of the financial statements which describes the types of structured entities that the Funds do not consolidate but in which they hold an interest. MD Family of Funds Interim Financial Statements