SEMI-ANNUAL FINANCIAL STATEMENTS

Transcription

1 SEMI-ANNUAL FINANCIAL STATEMENTS

2 The Fund s independent auditors have not performed a review of these Interim Financial Statements in accordance with standards established by the Chartered Professional Accountants, Canada. Important information about the Fund is contained in the Simplified Prospectus. Read the prospectus carefully before investing. Past performance is no assurance or indicator of future returns. Fund unit values and investment returns will fluctuate.

3 Table of Contents EXCEL CHINA FUND 2 EXCEL CHINDIA FUND 10 EXCEL EMERGING MARKETS BALANCED FUND (formerly Excel 15 EM Blue Chip Balanced Fund) EXCEL EMERGING MARKETS FUND 22 EXCEL HIGH INCOME FUND 33 EXCEL INDIA BALANCED FUND 44 EXCEL INDIA FUND 52 EXCEL MONEY MARKET FUND 61 EXCEL NEW INDIA LEADERS FUND 65 Notes to Financial Statements 72

4 EXCEL CHINA FUND Statements of Financial Position As at March 31, 2018 (Unaudited) and September 30, 2017 (Audited) (In Canadian Dollars) 2018 ($) 2017 ($) Assets: Current assets Financial assets at fair value through profit or loss* 46,791,215 42,207,203 Cash 4,347,606 5,500,302 Receivable for investments sold 3,318,760 - Subscriptions receivable 85, ,828 Dividends receivable 1,615 52,098 Total Assets 54,544,780 48,189,431 Liabilities: Current liabilities Payable for investments purchased 1,094, ,883 Management fees payable 89,779 73,939 Redemptions payable 87, ,498 Accrued expenses 82,328 63,224 Unrealized depreciation on forward currency contracts (Schedule 1) 54 2 Total Liabilities 1,353, ,546 Net Assets Attributable to Holders of Redeemable 53,190,929 47,543,885 Net Assets Attributable to Holders of Redeemable Series A 30,245,409 27,369,236 Series F 4,987,078 3,543,784 Series I 17,958,442 16,630,865 Number of Outstanding Series A 7,037,684 6,984,704 Series F 310, ,117 Series I 462, ,793 Net Assets Attributable to Holders of Redeemable per Unit (Note 4) Series A Series F Series I * Investments, at Average Cost 35,352,042 32,893,275 Approved by Excel Funds Management Inc., as Manager: signed Rick Headrick President signed Paul Sergi Co-Chief Financial Officer Statements of Comprehensive Income (Unaudited) For the six months ended March 31 (In Canadian Dollars) 2018 ($) 2017 ($) Income: Dividends 20,156 44,570 Interest income for distribution purposes 2, Changes in fair value of investments and derivatives: Net realized gain on non-derivative financial assets 3,256,432 2,701,674 Net realized loss on derivative financial assets (67,220) (3,041) Change in unrealized appreciation on nonderivative financial assets 2,125, ,729 Change in unrealized (depreciation) appreciation on derivative financial assets (52) - Net gain on foreign exchange 295, ,410 Total Income 5,632,738 2,986,408 Expenses (Note 5): Management fees 519, ,205 Transaction costs 123, ,310 Administration costs 99,330 97,596 Legal fees 9,349 13,370 Audit fees 7,761 7,441 Securityholder reporting costs 4,604 4,146 Custodial fees 3,544 3,506 Independent Review Committee fees 1,159 1,151 Trustee fees Foreign withholding taxes Total Expenses 770, ,602 Increase in Net Assets Attributable to Holders of Redeemable 4,861,778 2,350,806 Increase in Net Assets Attributable to Holders of Redeemable Series A 2,628,375 1,296,320 Series F 405,826 93,131 Series I 1,827, ,355 Increase in Net Assets Attributable to Holders of Redeemable per Unit Series A Series F Series I p 2

5 EXCEL CHINA FUND (continued) Statements of Changes in Net Assets Attributable to Holders of Redeemable (Unaudited) For the six months ended March 31, 2018 and 2017 Series A ($) Series F ($) Series I ($) Total ($) Net Assets Attributable to Holders of Redeemable at Beginning of Period 27,369,236 25,045,397 3,543,784 1,562,533 16,630,865 15,545,197 47,543,885 42,153,127 Increase in Net Assets Attributable to Holders of Redeemable 2,628,375 1,296, ,826 93,131 1,827, ,355 4,861,778 2,350,806 Redeemable Unit Transactions: Proceeds from redeemable units issued 5,992,178 2,137,590 3,810, , ,000 50,000 9,902,503 2,814,668 Amounts paid on redemption of redeemable units (5,744,380) (4,518,318) (2,772,857) (488,940) (600,000) (1,783,000) (9,117,237) (6,790,258) Net Increase (Decrease) from Redeemable Unit Transactions 247,798 (2,380,728) 1,037, ,138 (500,000) (1,733,000) 785,266 (3,975,590) Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable 2,876,173 (1,084,408) 1,443, ,269 1,327,577 (771,645) 5,647,044 (1,624,784) Net Assets Attributable to Holders of Redeemable at End of Period 30,245,409 23,960,989 4,987,078 1,793,802 17,958,442 14,773,552 53,190,929 40,528,343 Statements of Cash Flows (Unaudited) For the six months ended March 31 (In Canadian Dollars) 2018 ($) 2017 ($) Cash Flows from Operating Activities Increase in Net Assets Attributable to Holders of Redeemable 4,861,778 2,350,806 Adjustments for: Net gain on foreign exchange (295,383) (113,410) Net realized gain on non-derivative financial assets (3,256,432) (2,701,674) Net realized loss on derivative financial assets 67,220 3,041 Change in unrealized appreciation on nonderivative financial assets (2,125,245) (129,729) Change in unrealized depreciation on derivative financial assets 52 - Decrease in dividends receivable 50,483 10,626 Increase (Decrease) in accrued expenses and other liabilities 34,944 (80,141) Purchase of Investments (28,706,273) (22,201,409) Proceeds from sales of Investments 26,879,479 25,646,760 Proceeds from settlement of derivative financial assets (67,220) (3,041) Net Cash (Used in) Generated by Operating Activities (2,556,597) 2,781,829 Cash Flows from Financing Activities Proceeds from redeemable units issued 10,246,747 2,810,843 Amounts paid on redemption of redeemable units (9,138,229) (6,786,640) Net Cash Generated by (Used in) Financing Activities 1,108,518 (3,975,797) Net gain on foreign exchange 295, ,410 Net decrease in cash (1,448,079) (1,193,968) Cash at beginning of period 5,500,302 3,027,363 Cash at End of Period 4,347,606 1,946,805 Cash and cash equivalents comprise: Cash at bank 4,347,606 1,946,805 4,347,606 1,946,805 p 3

6 EXCEL CHINA FUND (continued) Schedule of Investment Portfolio (Unaudited) As at March 31, 2018 (In Canadian Dollars) Description Country Number of Shares / Average Cost $ Fair Value $ Equities (88.0%) Consumer Discretionary (20.9%) Air China Limited "H" China 290, , ,826 China Lodging Group Limited ADR China 3, , ,690 Cosmedia Group Holdings Limited China 300,000 1,083,026 1 Galaxy Entertainment Group Limited China 72, , ,720 Geely Automobile Holdings Limited China 132, , ,477 Guangzhou Automobile Group Company Limited "H" China 316, , ,731 JD.Com Inc. ADR China 16, , ,865 Melco International Development Ltd China 78, , ,796 Naspers Limited Series N South Africa 4,870 1,042,286 1,533,130 New Oriental Education & Technology Group Inc. ADR China 18,400 1,558,711 2,076,751 TAL Education Group ADR China 56,200 1,736,353 2,684,157 Yum China Holdings Inc. China 10, , ,740 10,009,368 11,091,884 Energy (3.2%) China Petroleum and Chemical Corporation "H" China 519, , ,728 China Shenhua Energy Company Limited "H" China 84, , ,360 CNOOC Limited China 454, , ,258 1,553,618 1,719,346 Financials (15.7%) China Construction Bank Corporation "H" China 2,066,200 1,935,517 2,732,484 China Everbright Limited China 160, , ,591 China Merchants Bank Company Limited "H" China 179, , ,464 China Taiping Insurance Holdings Company Limited China 98, , ,118 Industrial and Commercial Bank of China Limited "H" China 1,820,000 1,589,931 2,009,725 New China Life Insurance Company Limited "H" China 173,600 1,420,853 1,041,087 Ping An Insurance (Group) Company of China Limited "H" China 58, , ,893 7,296,920 8,351,362 Health Care (10.5%) 3SBio Inc China 183, , ,864 China Medical System Holdings Limited China 521,000 1,470,222 1,523,336 CSPC Pharmaceutical Group Limited China 382, ,969 1,306,831 Livzon Pharmaceutical Group Inc. "H" China 99,300 1,056,670 1,029,714 Sino Biopharmaceutical Limited China 105, , ,314 SSY Group Limited "H" China 842, , ,878 4,666,488 5,607,937 Information Technology (30.5%) AAC Technologies Holdings Inc. China 42, , ,421 Alibaba Group Holdings Limited ADR China 22,300 2,528,099 5,270,481 Baidu Inc. ADR China 6,100 1,761,262 1,753,151 Baozun Inc. ADR China 4, , ,043 NetEase Inc. ADR China 2,700 1,063, ,857 Tencent Holdings Limited China 92,890 1,099,195 6,242,795 Weibo Corporation ADR China 3, , ,581 YY Inc. ADR China 1, , ,839 8,332,922 16,219,168 Materials (2.8%) China Oriental Group Co Ltd China 308, , ,862 MMG Ltd China 352, , ,648 Nine Dragons Paper Holdings Limited China 239, , ,380 Shandong Chenming Paper Holdings Limited "H" China 214, , ,594 1,376,470 1,472,484 Real Estate (4.4%) China Overseas Land & Investment Limited China 100, , ,113 China Resources Land Limited China 74, , ,648 CIFI Holdings Group Company Limited "H" China 282, , ,949 Country Garden Holdings Company Limited China 233, , ,799 p 4

7 EXCEL CHINA FUND (continued) Schedule of Investment Portfolio (Unaudited) (continued) As at March 31, 2018 (In Canadian Dollars) Description Country Number of Shares / Average Cost $ Fair Value $ Longfor Properties Company Limited "H" China 152, , ,525 2,180,582 2,329,034 Total Equities 35,416,368 46,791,215 Transaction Costs Total Investments (88.0%) 35,352,042 46,791,215 Unrealized Depreciation on Forward Currency Contracts (Schedule 1) (0.0%) (54) Other Net Assets (12.0%) 6,399,768 (64,326) Net Assets Attributable to Holders of Redeemable (100.0%) 53,190,929 Schedule 1 - Forward Currency Contracts (1) Settlement Date Currency Buys Currency Sells Unrealized Appreciation/ (Depreciation) ($) Apr. 4, 2018 USD 545,306 HKD 4,279,940 (54) Total Unrealized Depreciation (1) The counterparty to each forward foreign currency contract has a credit rating of AA-. (54) Fund Specific Notes to the Financial Statements Financial Risk Management The investment activities of the Excel China Fund (the Fund ) expose it to a variety of financial risks, which are described below. The Fund s exposure is concentrated in its investments, which are presented in the Schedule of Investment Portfolio as at March 31, 2018 and are grouped by asset type, industry sector, geographic region, or currency exposure. Significant risks that are relevant to the Fund are discussed below. General information on risk management and specific discussion on credit, currency, interest rate, other market, liquidity and concentration risks can be found in Note 8 to the financial statements. (a) Credit risk As at March 31, 2018 and September 30, 2017, the Fund held foreign currency forward contracts to hedge against adverse changes in the relationship of the Canadian Dollar to foreign currencies. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of foreign currency relative to the Canadian Dollar. Credit risk from other financial instruments is minimal. All transactions in listed securities are settled upon delivery using approved brokers/dealers. The risk of default is considered minimal, as delivery of securities sold is only made once the broker/dealer has received payment. Payment is made on a purchase once the securities have been received by the dealer. The transaction will fail if either party fails to meet its obligation. Also, risks may arise upon entering into currency contracts from the potential inability of the counterparties to meet the terms of their contracts. (b) Market risk (i) Currency risk The Fund holds assets and liabilities, including cash and cash equivalents that are denominated in currencies other than the Canadian Dollar, the functional currency of the Fund. It is therefore exposed to currency risk, as the value of the securities denominated in other currencies fluctuates due to changes in exchange rates. However, the Fund also holds foreign purchased currency contracts to hedge against adverse changes in the relationship of the Canadian Dollar to foreign currencies and reduce the current risk exposure to the Fund. p 5

8 EXCEL CHINA FUND (continued) The following table summarizes the Fund s proportionate exposure to currency risk as at March 31, 2018 and September 30, Amounts shown are based on the fair value of monetary and non-monetary assets. Holdings Exposed to Currency Risk ($CAD) Percentage of Net Assets (%) Holdings Exposed to Currency Risk ($CAD) Percentage of Net Assets (%) March 31, 2018 September 30, 2017 Hong Kong Dollar 27,334, ,292, US Dollar 21,561, ,326, South African Rand 1,533, ,307, ,428, ,926, As at March 31, 2018, if the Canadian Dollar relative to other foreign currencies weakened or strengthened by 1%, with all other factors remaining constant, Net Assets Attributable to Holders of Redeemable of the Fund would have increased or decreased respectively by $504,288 ($459,262 as at September 30, 2017). In practice, actual results may differ from this sensitivity analysis and the difference could be material. (ii) Interest rate risk As at March 31, 2018 and September 30, 2017, the majority of the Fund s financial assets and liabilities are non-interest bearing. As a result, the Fund is not subject to a significant amount of interest rate risk. (iii) Other market risk The Fund is exposed to other market risk as a result of its investment in publicly traded equities. As at March 31, 2018, if these investments had increased or decreased by 1%, with all other factors remaining constant, Net Assets Attributable to Holders of Redeemable of the Fund would have increased or decreased respectively by $484,000 ($448,000 as at September 30, 2017). In practice, actual results may differ from this sensitivity analysis and the difference could be material. (c) Liquidity risk As at March 31, 2018 and September 30, 2017, the majority of the Fund s investments are considered readily realizable and highly liquid; therefore, the Fund s liquidity risk is considered minimal. (d) Concentration risk Concentration risk arises as a result of the concentration of exposures within the same category, whether it is geographical location, product type, industry sector or counterparty type. The Fund s concentration risk is summarized in the tables below: As a % of Total Net Assets Sector March 31, 2018 September 30, 2017 Information Technology Consumer Discretionary Financials Health Care Real Estate Energy Materials Telecommunication Services Total As a % of Total Net Assets Geographical Location March 31, 2018 September 30, 2017 China United States Canada South Africa Total p 6

9 EXCEL CHINA FUND (continued) Fair Value Disclosure The following tables illustrate the classification of the Fund s assets and liabilities measured at fair value within the fair value hierarchy as at March 31, 2018 and September 30, March 31, 2018 Description Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Financial Assets Equities 46,791, ,791,215 Forward Currency Contracts Total Financial Assets 46,791, ,791,215 Financial Liabilities Forward Currency Contracts - (54) - (54) Total Financial Liabilities - (54) - (54) Total Financial Assets and Liabilities 46,791,214 (54) 1 46,791,161 September 30, 2017 Description Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Financial Assets Equities 42,207, ,207,203 Total Financial Assets 42,207, ,207,203 Financial Liabilities Forward Currency Contracts - (2) - (2) Total Financial Liabilities - (2) - (2) Total Financial Assets and Liabilities 42,207,202 (2) 1 42,207,201 There were no significant transfers between level 1 and 2 during the periods ended March 31, 2018 and September 30, The following is a reconciliation of Level 3 fair value assets as at March 31, 2018 and September 30, March 31, 2018 September 30, 2017 Opening Balance 1 1 Sales proceeds - - Realized loss - - Change in unrealized appreciation (depreciation) - - Closing Balance 1 1 Unrealized depreciation in value of level 3 securities (1,083,025) (1,083,025) The Fund applies judgment in determining unobservable inputs to calculate the fair value of Level 3 financial instruments. As at March 31, 2018, the Fund held $1 ($1 as at September 30, 2017) Level 3 securities. The unobservable inputs used in the valuation of these financial instruments primarily include key variables, current market conditions and recent financings by the company, if any. These securities are affected by market activity in their relevant sectors and therefore generally fluctuated similarly. Redeemable Changes in issued mutual fund units of the Fund are summarized in the following tables for the six month periods ended March 31, 2018 and March 31, 2017: Outstanding at Beginning of Period Issued March 31, 2018 Redeemed Net Outstanding Increase at End (Decrease) of Period Series A 6,984, ,847 (753,867) 52,980 7,037,684 Series F 243, ,331 (158,408) 66, ,040 Series I 474,793 2,605 (15,373) (12,768) 462,025 Outstanding at Beginning of Period Issued March 31, 2017 Redeemed Net Outstanding Increase at End (Decrease) of Period Series A 7,772, ,037 (975,569) (731,532) 7,040,647 Series F 131,901 24,918 (14,240) 10, ,579 Series I 553,805 1,791 (63,345) (61,554) 492,251 The average number of Series A units outstanding during the six-months ended March 31, 2018 was 7,039,321 (2017: 7,412,353), the average number of Series F units outstanding during the six-months ended March 31, 2018 was 306,282 (2017: 137,035), and the average number of Series I units outstanding during the six-months ended March 31, 2018 was 469,592 (2017: 522,873). These numbers were used to calculate the respective increase (decrease) in Net Assets Attributable to Holders of Redeemable per unit. During the six-months ended March 31, 2018, the Excel Chindia Fund, a fund also managed by Excel, purchased 2,605 (2017: 1,791) Series I units of the Fund and redeemed 15,373 (2017: 63,345) Series I units of the Fund. As at March 31, 2018, the Excel Chindia Fund held 462,025 (2017: 492,251) Series I units of the Fund. As of March 31, 2018, certain members of senior management and of the board of directors of the Manager held NIL (2017: 1,895) Series A units of the Fund. p 7

10 EXCEL CHINA FUND (continued) Common stock The Fund s equity positions are classified as Level 1 when the security is actively traded and a reliable price is observable. Certain equities of the Fund may not trade frequently and therefore observable prices may not be available. In such cases, fair value is determined using observable market data (e.g., transactions for similar securities of the same issuer) and the fair value is classified as Level 2, unless the determination of fair value requires significant unobservable data, in which case the measurement is classified as Level 3. Derivative Assets and Liabilities Derivative assets and liabilities consist of foreign currency forward contracts, which are valued based primarily on the contract notional amount, the difference between the contract rate and the forward market rate for the same currency, interest rates and credit spreads. Contracts for which counterparty credit spreads are observable and reliable, or for which the credit-related inputs are determined not to be significant to fair value, are classified as Level 2. Brokerage Commissions and Other Transaction Costs Commissions and other transaction fees paid for portfolio transactions for the period ended March 31, 2018 were $66,828 ($59,394 for the period ended March 31, 2017). Soft Dollar Commissions There were no soft dollar transactions during the periods ended March 31, 2018 and September 30, Taxation of the Fund As at December 15, 2017, the Fund had accumulated capital losses of $47,910,883 ($49,249,385 as at December 15, 2016). The capital losses for tax purposes are available for carry forward indefinitely, and may be applied against capital gains realized in the future. As at December 15, 2017, the Fund had accumulated noncapital losses of $2,011,682 ($2,011,682 as at December 15, 2016). The non-capital losses for tax purposes are available for carry forward until the year ending The Fund had no accumulated capital losses. The Fund currently incurs withholding taxes imposed by certain countries on investment income and capital gains. Such income and gains are recorded on a gross basis and the related withholding taxes are shown separately in the Statements of Comprehensive Income (Loss). p 8

11 EXCEL CHINA FUND (continued) Offsetting of Financial Assets and Liabilities The following table shows the net impact on the Fund s Statements of Financial Position if all offset rights were exercised. Financial Assets and Liabilities March 31, 2018 Gross amounts of recognized financial assets/liabilities Gross amounts of recognized financial assets/liabilities offset Net amounts of financial assets/liabilities Gross amounts not offset Net amount Unrealized depreciation of forward currency contracts $ (54) - $ (54) (54) September 30, 2017 Gross amounts of recognized financial assets/liabilities Gross amounts of recognized financial assets/liabilities offset Net amounts of financial assets/liabilities Gross amounts not offset Net amount Unrealized depreciation of forward currency contracts $ (2) - $ (2) - $ (2) Establishment of the Fund The origin dates on the series of units of the Fund are shown below: Date of creation Date available for sale Series A January 28, 2000 January 28, 2000 Series F February 25, 2005 February 25, 2005 Series I December 23, 2004 December 23, 2004 Fund Name Change Excel China Fund will be renamed Sun Life Excel China Fund effective on or about June 18, p 9

12 EXCEL CHINDIA FUND Statements of Financial Position As at March 31, 2018 (Unaudited) and September 30, 2017 (Audited) (In Canadian Dollars) 2018 ($) 2017 ($) Assets: Current assets Financial assets at fair value through profit or loss* 42,385,256 40,312,614 Receivable for investments sold 100,000 - Cash 87, ,984 Subscriptions receivable 3,031 53,951 Total Assets 42,576,259 40,523,549 Liabilities: Current liabilities Management fees payable 89,177 80,379 Accrued expenses 88,118 69,425 Redemptions payable 32,495 63,924 Total Liabilities 209, ,728 Net Assets Attributable to Holders of Redeemable 42,366,469 40,309,821 Net Assets Attributable to Holders of Redeemable Series A 37,534,591 36,217,998 Series F 4,831,878 4,091,823 Number of Outstanding Series A 3,319,080 3,417,535 Series F 278, ,567 Net Assets Attributable to Holders of Redeemable per Unit (Note 4) Series A Series F * Investments, at Average Cost 22,793,920 21,478,758 Approved by Excel Funds Management Inc., as Manager: signed Rick Headrick President signed Paul Sergi Co-Chief Financial Officer Statements of Comprehensive Income (Unaudited) For the six months ended March 31 (In Canadian Dollars) 2018 ($) 2017 ($) Income: Distribution income from investments 1,886,452 1,494,686 Interest income for distribution purposes Changes in fair value of investments and derivatives: Net realized gain on non-derivative financial assets 738,710 2,289,094 Change in unrealized appreciation (depreciation) on non-derivative financial assets 757,480 (38,062) Net gain (loss) on foreign exchange 672 (1,389) Total Income 3,383,699 3,744,329 Expenses (Note 5): Management fees 522, ,603 Administration costs 77, ,977 Legal fees 11,671 10,340 Audit fees 5,896 5,603 Securityholder reporting costs 5,765 5,876 Independent Review Committee fees 2,079 1,112 Trustee fees Custodial fees Total Expenses 625, ,511 Increase in Net Assets Attributable to Holders of Redeemable 2,757,868 3,134,818 Increase in Net Assets Attributable to Holders of Redeemable Series A 2,454,099 2,964,338 Series F 303, ,480 Increase in Net Assets Attributable to Holders of Redeemable per Unit Series A Series F p 10

13 EXCEL CHINDIA FUND (continued) Statements of Changes in Net Assets Attributable to Holders of Redeemable (Unaudited) For the six months ended March 31, 2018 and 2017 Series A ($) Series F ($) Total ($) Net Assets Attributable to Holders of Redeemable at Beginning of Period 36,217,998 37,727,368 4,091,823 4,025,867 40,309,821 41,753,235 Increase in Net Assets Attributable to Holders of Redeemable 2,454,099 2,964, , ,480 2,757,868 3,134,818 Redeemable Unit Transactions: Proceeds from redeemable units issued 3,848,905 2,578,151 1,715, ,156 5,564,588 3,150,307 Amounts paid on redemption of redeemable units (4,986,411) (6,541,016) (1,279,397) (1,812,191) (6,265,808) (8,353,207) Net Increase (Decrease) from Redeemable Unit Transactions (1,137,506) (3,962,865) 436,286 (1,240,035) (701,220) (5,202,900) Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable 1,316,593 (998,527) 740,055 (1,069,555) 2,056,648 (2,068,082) Net Assets Attributable to Holders of Redeemable at End of Period 37,534,591 36,728,841 4,831,878 2,956,312 42,366,469 39,685,153 Statements of Cash Flows (Unaudited) For the six months ended March 31 (In Canadian Dollars) 2018 ($) 2017 ($) Cash Flows from Operating Activities Increase in Net Assets Attributable to Holders of Redeemable 2,757,868 3,134,818 Adjustments for: Net (gain) loss on foreign exchange (672) 1,389 Net realized gain on non-derivative financial assets (738,710) (2,289,094) Change in unrealized (appreciation) depreciation on non-derivative financial assets (757,480) 38,062 (Increase) Decrease in interest receivable - 4 Increase (Decrease) in accrued expenses and other liabilities 27,491 (52,497) Purchase of Investments (200,000) (50,000) Proceeds from sales of Investments 1,410,000 5,910,000 Distribution income from investments (1,886,452) (1,494,686) Net Cash Generated by Operating Activities 612,045 5,197,996 Cash Flows from Financing Activities Proceeds from redeemable units issued 5,615,508 3,120,133 Amounts paid on redemption of redeemable units (6,297,237) (8,446,627) Net Cash Used in Financing Activities (681,729) (5,326,494) Net gain (loss) on foreign exchange 672 (1,389) Net decrease in cash (69,684) (128,498) Cash at beginning of period - 257,998 Cash at End of Period (69,012) 128,111 Cash and cash equivalents comprise: Cash at bank 100, , , ,111 p 11

14 EXCEL CHINDIA FUND (continued) Schedule of Investment Portfolio (Unaudited) As at March 31, 2018 (In Canadian Dollars) Description Country Number of Average Cost $ Fair Value $ Mutual Funds (100.0%) Excel China Fund "I" Series Canada 462,025 9,570,332 17,962,294 Excel India Fund "I" Series Canada 663,001 13,223,588 24,422,962 Total Mutual Funds (100.0%) 22,793,920 42,385,256 Total Investments (100.0%) 22,793,920 42,385,256 Other Net Assets (0.0%) (18,787) Net Assets Attributable to Holders of Redeemable (100.0%) 42,366,469 Fund Specific Notes to the Financial Statements Financial Risk Management The investment activities of the Excel Chindia Fund (the Fund ) expose it to a variety of financial risks, which are described below. The Fund s exposure is concentrated in its investments, which are presented in the Schedule of Investment Portfolio as at March 31, 2018 and are grouped by asset type, industry sector, geographic region, or currency exposure. Significant risks that are relevant to the Fund are discussed below. General information on risk management and specific discussion on credit, currency, interest rate, other market, liquidity and concentration risks can be found in Note 8 to the financial statements. (a) Credit risk The Fund is exposed indirectly to credit risk as a result of its investment in underlying internally managed funds. All transactions in listed securities are settled upon delivery using approved brokers/dealers. The risk of default is considered minimal, as delivery of securities sold is only made once the broker/dealer has received payment. Payment is made on a purchase once the securities have been received by the dealer. The transaction will fail if either party fails to meet its obligation. Also, risks may arise upon entering into currency contracts from the potential inability of the counterparties to meet the terms of their contracts. (b) Market risk (i) Currency risk The Fund is exposed indirectly to currency risk as a result of its investment in underlying internally managed funds. The Fund also holds assets and liabilities, including cash and cash equivalents that are denominated in currencies other than the Canadian Dollar, the functional currency of the Fund. It is therefore exposed to currency risk, as the value of the securities denominated in other currencies fluctuates due to changes in exchange rates. The following table summarizes the Fund s proportionate exposure to currency risk as at March 31, 2018 and September 30, Amounts shown are based on the fair value of monetary and non-monetary assets. Holdings Exposed to Currency Risk ($CAD) Percentage of Net Assets (%) Holdings Exposed to Currency Risk ($CAD) Percentage of Net Assets (%) March 31, 2018 September 30, 2017 US Dollar 7,080, ,561, Hong Kong Dollar 9,945, ,552, Indian Rupee 22,177, ,908, South African Rand 517, , Chinese Yuan 277, ,998, ,918, As at March 31, 2018, if the Canadian Dollar relative to other foreign currencies weakened or strengthened by 1%, with all other factors remaining constant, Net Assets Attributable to Holders of Redeemable of the Fund would have increased or decreased respectively by $414,086 ($329,182 as at September 30, 2017). In practice, actual results may differ from this sensitivity analysis and the difference could be material. (ii) Interest rate risk The Fund is exposed indirectly to interest rate risk as a result of its investment in underlying internally managed funds. The Fund has low exposure to interest rate risk since most of the interest bearing securities held by the underlying internally managed funds are short term in nature. (iii) Other market risk The Fund is exposed indirectly to other market risk as a result of its investment in underlying internally managed funds. As at March 31, 2018, if these investments had increased or decreased by 1%, with all other factors remaining constant, Net Assets Attributable to Holders of Redeemable of the Fund would have increased or decreased respectively by $429,000 ($454,000 as at September 30, 2017). In practice, actual results may differ from this sensitivity analysis and the difference could be material. p 12

15 EXCEL CHINDIA FUND (continued) (c) Liquidity risk As at March 31, 2018 and September 30, 2017, the majority of the Fund s investments are considered readily realizable and highly liquid; therefore, the Fund s liquidity risk is considered minimal. (d) Concentration risk Concentration risk arises as a result of the concentration of exposures within the same category, whether it is geographical location, product type, industry sector or counterparty type. The Fund invests in redeemable units or shares of other investment funds ( Underlying Funds ) to gain exposure to the investment objectives and strategies of the Underlying Funds. The Fund is exposed to the possible risk inherent in the concentration of the investment portfolio held by the Underlying Funds. The Managers of the Underlying Funds moderate this risk through careful selection of securities in several industries, investment sectors and geographical locations. The Fund s concentration risk is summarized in the tables below: As a % of Total Net Assets Sector March 31, 2018 September 30, 2017 Financials Information Technology Consumer Discretionary Materials Health Care Industrials Energy Consumer Staples Real Estate Utilities Telecommunication Services Exchange Traded Funds Mutual Funds Short Term Notes Total As a % of Total Net Assets Geographical Location March 31, 2018 September 30, 2017 India China Other Assets (Liabilities) South Africa Canada United States Total Fair Value Disclosure The following tables illustrate the classification of the Fund s assets and liabilities measured at fair value within the fair value hierarchy as at March 31, 2018 and September 30, March 31, 2018 Description Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Financial Assets Mutual Funds 42,385, ,385,256 Total Financial Assets 42,385, ,385,256 September 30, 2017 Description Level 1 ($) Level 2 ($) Level 3 ($) Total ($) Financial Assets Mutual Funds 40,312, ,312,614 Total Financial Assets 40,312, ,312,614 There were no significant transfers between fair value levels 1 and 2 during the periods ended March 31, 2018 and September 30, Redeemable Changes in issued mutual fund units of the Fund are summarized in the following tables for the six month periods ended March 31, 2018 and March 31, 2017: Outstanding at Beginning of Period Issued March 31, 2018 Redeemed Net Outstanding Increase at End (Decrease) of Period Series A 3,417, ,978 (229,433) (98,455) 3,319,080 Series F 252,567 78,084 (52,429) 25, ,222 Outstanding at Beginning of Period Issued March 31, 2017 Redeemed Net Outstanding Increase at End (Decrease) of Period Series A 4,145,451 36,447 (471,555) (435,108) 3,710,343 Series F 292,175 30,850 (126,782) (95,932) 196,243 The average number of Series A units outstanding during the six-months ended March 31, 2018 was 3,374,154 (2017: 3,948,868), and the average number of Series F units outstanding during the six-months ended March 31, 2018 was 278,262 (2017: 245,293). These numbers were used to calculate the respective increase (decrease) in Net Assets Attributable to Holders of Redeemable per unit. As of March 31, 2018, certain members of senior management and of the board of directors of the Manager held NIL (2017: 405) Series A units of the Fund. p 13

16 EXCEL CHINDIA FUND (continued) Mutual Funds Mutual fund units held as investments are valued at their respective Net Asset Value per unit on the relevant valuation dates and are classified as Level 1. Brokerage Commissions and Other Transaction Costs There were no brokerage commissions paid on portfolio transactions for the periods ended March 31, 2018 and September 30, 2017 since the Fund invested only in other Excel mutual funds. Soft Dollar Commissions There were no soft dollar transactions during the periods ended March 31, 2018 and September 30, Taxation of the Fund As at December 15, 2017, the Fund had accumulated capital losses of $8,706,205 ($8,706,205 as at December 15, 2016). The capital losses for tax purposes are available for carry forward indefinitely, and may be applied against capital gains realized in the future. As at December 15, 2017, the Fund had accumulated noncapital losses of $14,102,963 ($14,756,194 as at December 15, 2016). The non-capital losses for tax purposes are available for carry forward until the year ending The Fund had no accumulated capital losses. Interests in Underlying Funds The Fund invests in redeemable units or shares of other Underlying Funds to gain exposure to the investment objectives and strategies of the Underlying Funds. Each Underlying Fund is generally financed through the capital invested by the Fund, along with other investors, which entitles unitholders to a proportionate share of the underlying fund s net assets. The Fund does not provide additional financial or other support to the Underlying Funds. All Underlying Funds were established in and carry out their operations in Canada. The Fund s interests in Underlying Funds are reported at fair value in investments in its Statements of Financial Position and its Schedule of Investments, which represents the Fund s maximum exposure to financial loss. As at March 31, 2018 and September 30, 2017, the Fund had interests in Underlying Funds as noted in the following table: Establishment of the Fund The origin dates on the series of units of the Fund are shown below: Date of creation Date available for sale Series A January 11, 1999 January 11, 1999 Series F April 06, 2005 April 06, 2005 Fund Merger As announced on February 28, 2018, all assets of the Excel Chindia Fund (the Terminating Fund ) will be reclassified into the Sun Life Schroder Emerging Market Fund (the Continuing Fund ) as of close of business on June 15, 2018 subject to receiving the relevant securityholder and regulatory approval. The Fund was closed to new investors as of March 7, Under the tax reorganization rules in the Income Tax Act (Canada), the discontinuation of the Terminating Fund will be executed on a non-taxable basis. The execution of this merger will be recorded as a subscription on the Continuing Fund s Statements of Changes in Net Assets Attributable to Holders of Redeemable. March 31, 2018 September 30, 2017 Excel China Fund Excel India Fund p 14

17 EXCEL EMERGING MARKETS BALANCED FUND (formerly Excel EM Blue Chip Balanced Fund) Statements of Financial Position As at March 31, 2018 (Unaudited) and September 30, 2017 (Audited) (In Canadian Dollars) 2018 ($) 2017 ($) Assets: Current assets Financial assets at fair value through profit or loss* 27,710,454 18,684,445 Cash 515, ,786 Subscriptions receivable 147,730 2,657 Dividends receivable 5,077 - Total Assets 28,379,202 19,187,888 Liabilities: Current liabilities Redemptions payable 85,347 - Accrued expenses 76,521 43,932 Management fees payable 41,221 25,657 Distribution payable 21,443 34,135 Total Liabilities 224, ,724 Net Assets Attributable to Holders of Redeemable 28,154,670 19,084,164 Net Assets Attributable to Holders of Redeemable Series A 18,470,981 9,479,570 Series F 9,676,655 9,589,871 Series DB 7,034 14,723 Number of Outstanding Series A 3,238,018 1,753,042 Series F 1,609,366 1,694,795 Series DB 1,381 3,065 Net Assets Attributable to Holders of Redeemable per Unit (Note 4) Series A Series F Series DB * Investments, at Average Cost 25,500,556 17,527,791 Approved by Excel Funds Management Inc., as Manager: signed Rick Headrick President signed Paul Sergi Co-Chief Financial Officer Statements of Comprehensive Income (Unaudited) For the six months ended March 31 (In Canadian Dollars) 2018 ($) 2017 ($) Income: Dividends Distribution income from investments 376, ,981 Interest income for distribution purposes 2,763 - Changes in fair value of investments and derivatives: Net realized gain on non-derivative financial assets 692,598 56,184 Change in unrealized appreciation on nonderivative financial assets 1,053, ,105 Net gain (loss) on foreign exchange 3,168 (63) Total Income 2,128, ,207 Expenses (Note 5): Management fees 243, ,386 Administration costs 61,760 40,611 Legal fees 13,902 10,224 Audit fees 5,671 5,444 Securityholder reporting costs 5,329 5,363 Foreign withholding taxes Independent Review Committee fees Trustee fees Custodial fees Total Expenses before Absorption by Manager 332, ,723 Less: Expenses Absorbed by Manager (Note 5) (119,730) (86,299) Net Expenses after Absorption by Manager 212,529 95,424 Increase in Net Assets Attributable to Holders of Redeemable 1,915, ,783 Increase in Net Assets Attributable to Holders of Redeemable Series A 1,000, ,661 Series F 914,124 69,038 Series DB (1) 1, (1) Increase in Net Assets Attributable to Holders of Redeemable per Unit Series A Series F Series DB (1) (1) For the period from October 24, 2016 (date of inception of the Series) to March 31, p 15

18 EXCEL EMERGING MARKETS BALANCED FUND (continued) (formerly Excel EM Blue Chip Balanced Fund) Statements of Changes in Net Assets Attributable to Holders of Redeemable (Unaudited) For the six months ended March 31, 2018 and 2017 Series A ($) Series F ($) Series DB ($) Total ($) (1) Net Assets Attributable to Holders of Redeemable at Beginning of Period 9,479,570 8,632,583 9,589,871 2,100,920 14,723-19,084,164 10,733,503 Increase in Net Assets Attributable to Holders of Redeemable 1,000, , ,124 69,038 1, ,915, ,783 Redeemable Unit Transactions: Proceeds from redeemable units issued 11,764,790 2,206,195 6,585, ,037 20,837 4,450 18,371,134 2,844,682 Reinvestments of distributions to holders of redeemable units 256, , ,316 40, , ,069 Amounts paid on redemption of redeemable units (3,675,864) (1,712,088) (7,329,487) (135,137) (30,075) - (11,035,426) (1,847,225) Net Increase (Decrease) from Redeemable Unit Transactions 8,345, ,415 (592,664) 539,617 (8,886) 4,494 7,743,988 1,168,526 Distributions to Holders of Redeemable Net investment income (90,306) (195,924) (59,168) (52,969) (82) (44) (149,556) (248,937) Capital gains (38,012) - (29,744) - (51) - (67,807) - Return of capital (226,097) - (145,764) - (219) - (372,080) - (354,415) (195,924) (234,676) (52,969) (352) (44) (589,443) (248,937) Net Increase (Decrease) in Net Assets Attributable to Holders of Redeemable 8,991, ,152 86, ,686 (7,689) 4,534 9,070,506 1,195,372 Net Assets Attributable to Holders of Redeemable at End of Period 18,470,981 9,267,735 9,676,655 2,656,606 7,034 4,534 28,154,670 11,928,875 (1) For the period from October 24, 2016 (date of inception of the Series) to March 31, Statements of Cash Flows (Unaudited) For the six months ended March 31 (In Canadian Dollars) 2018 ($) 2017 ($) Cash Flows from Operating Activities Increase in Net Assets Attributable to Holders of Redeemable 1,915, ,783 Adjustments for: Net (gain) loss on foreign exchange (3,168) 63 Net realized gain on non-derivative financial assets (692,598) (56,184) Change in unrealized appreciation on nonderivative financial assets (1,053,244) (198,105) Increase in dividends receivable (5,077) (33,294) Increase (Decrease) in accrued expenses and other liabilities 48,153 (25,068) Purchase of Investments (13,846,515) (1,400,000) Proceeds from sales of Investments 6,942, ,000 Distribution income from investments (376,162) (116,981) Net Cash Used in Operating Activities (7,070,140) (1,068,786) Cash Flows from Financing Activities Proceeds from redeemable units issued 18,226,061 2,815,123 Amounts paid on redemption of redeemable units (10,950,079) (1,629,374) Distributions to holders of redeemable units, net of reinvested distributions (193,855) (76,469) Net Cash Generated by Financing Activities 7,082,127 1,109,280 Net gain (loss) on foreign exchange 3,168 (63) Net increase in cash 11,987 40,494 Cash at beginning of period 500,786 98,272 Cash at End of Period 515, ,703 Cash and cash equivalents comprise: Cash at bank 515, , , ,703 p 16

19 EXCEL EMERGING MARKETS BALANCED FUND (continued) (formerly Excel EM Blue Chip Balanced Fund) Schedule of Investment Portfolio (Unaudited) As at March 31, 2018 (In Canadian Dollars) Description Country Number of Average Cost $ Fair Value $ Mutual Funds (98.4%) Excel Emerging Markets Fund "I" Series Canada 1,698,100 12,218,818 14,018,324 Excel High Income Fund "I" Series Canada 2,346,914 13,281,738 13,692,130 Total Mutual Funds (98.4%) 25,500,556 27,710,454 Total Investments (98.4%) 25,500,556 27,710,454 Other Net Assets (1.6%) 444,216 Net Assets Attributable to Holders of Redeemable (100.0%) 28,154,670 Fund Specific Notes to the Financial Statements Financial Risk Management The investment activities of the Excel Emerging Markets Balanced Fund (the Fund ) expose it to a variety of financial risks, which are described below. The Fund s exposure is concentrated in its investments, which are presented in the Schedule of Investment Portfolio as at March 31, 2018 and are grouped by asset type, industry sector, geographic region, or currency exposure. Significant risks that are relevant to the Fund are discussed below. General information on risk management and specific discussion on credit, currency, interest rate, other market, liquidity and concentration risks can be found in Note 8 to the financial statements. (a) Credit risk The Fund is exposed indirectly to credit risk as a result of its investment in underlying internally managed funds. The Fund invests in financial assets, which have an investment grade credit rating as rated primarily by Standard & Poor s and Moody & Fitch's. Ratings for securities that subject the Fund to credit risk as at March 31, 2018 and September 30, 2017 are noted below: Debt Instrument % of Total Net Assets by Credit Ratings March 31, 2018 September 30, 2017 BBB BBB BB B A BB BB B BBB A B A AA AA C Ba1-2.8 Baa3-2.1 A3-1.3 B3-0.6 Ba2-0.5 CCC NR (1) B1-0.3 Baa1-0.3 A1-0.2 Ba3-0.1 Baa2 - - CCC - - Total (1) Not Rated p 17

20 EXCEL EMERGING MARKETS BALANCED FUND (continued) (formerly Excel EM Blue Chip Balanced Fund) All transactions in listed securities are settled upon delivery using approved brokers/dealers. The risk of default is considered minimal, as delivery of securities sold is only made once the broker/dealer has received payment. Payment is made on a purchase once the securities have been received by the dealer. The transaction will fail if either party fails to meet its obligation. Also, risks may arise upon entering into currency contracts from the potential inability of the counterparties to meet the terms of their contracts. (b) Market risk (i) Currency risk The Fund is exposed indirectly to currency risk as a result of its investment in underlying internally managed funds. The Fund also holds assets and liabilities, including cash and cash equivalents that are denominated in currencies other than the Canadian Dollar, the functional currency of the Fund. It is therefore exposed to currency risk, as the value of the securities denominated in other currencies fluctuates due to changes in exchange rates. The following table summarizes the Fund s proportionate exposure to currency risk as at March 31, 2018 and September 30, Amounts shown are based on the fair value of monetary and non-monetary assets. Holdings Exposed to Currency Risk ($CAD) Percentage of Net Assets (%) Holdings Exposed to Currency Risk ($CAD) Percentage of Net Assets (%) March 31, 2018 September 30, 2017 US Dollar 9,396, ,017, Hong Kong Dollar 2,305, ,445, Indian Rupee 1,823, ,293, Brazilian Real 1,717, ,179, South Korean Won 1,580, , Indonesian Rupiah 1,287, , South African Rand 1,140, , Malaysian Ringgit 1,043, , Mexican Peso 940, , Turkish Lira 844, , Polish Zloty 712, , Colombian Peso 631, , Russian Ruble 609, , Thaliand Baht 590, , Euro 532, , Hungarian Forint 314, , Peruvian Neuvo Sol 312, , Philippine Peso 265, , Serbian Dinar 252, , Japanese Yen 249, , Argentina Peso 197, , Chilean Peso 197, , Romanian Leu 150, , British Pound 63, , Czech Koruna 7,049-4,742 - Yuan Renminbi (44,362) (0.2) (425,772) (2.2) Taiwan Dollar (180,376) (0.6) (112,441) (0.6) Israeli Shekel (430,326) (1.5) (304,914) (1.6) Singapore Dollar (519,606) (1.8) (184,995) (1.0) 25,992, ,683, As at March 31, 2018, if the Canadian Dollar relative to other foreign currencies weakened or strengthened by 1%, with all other factors remaining constant, Net Assets Attributable to Holders of Redeemable of the Fund would have increased or decreased respectively by $259,925 ($196,834 as at September 30, 2017). In practice, actual results may differ from this sensitivity analysis and the difference could be material. p 18

21 EXCEL EMERGING MARKETS BALANCED FUND (continued) (formerly Excel EM Blue Chip Balanced Fund) (ii) Interest rate risk The Fund is exposed indirectly to interest rate risk as a result of its investment in underlying internally managed funds. The following table summarizes the Fund s direct exposure to interest rate risk, categorized by the earlier of the contractual re-pricing or maturity dates. Financial Instruments by Maturity Date March 31, 2018 September 30, 2017 Less than 1 year $ 303,527 $ 379,441 1 to 5 years 2,387,600 1,291,051 More than 5 years 10,639,870 7,589,967 Total $ 13,330,997 $ 9,260,459 As at March 31, 2018, had prevailing interest rates increased or decreased by 1%, with all other factors remaining constant, Net Assets Attributable to Holders of Redeemable of the Fund would have decreased or increased respectively by $819,474 ($583,409 as at September 30, 2017). In practice, actual results may differ from this sensitivity analysis and the difference could be material. (iii) Other market risk The Fund is exposed indirectly to other market risk as a result of its investment in underlying internally managed funds. As at March 31, 2018, if these investments had increased or decreased by 1%, with all other factors remaining constant, Net Assets Attributable to Holders of Redeemable of the Fund would have increased or decreased respectively by $231,000 ($166,000 as at September 30, 2017). In practice, actual results may differ from this sensitivity analysis and the difference could be material. (c) Liquidity risk As at March 31, 2018 and September 30, 2017, the majority of the Fund s investments are considered readily realizable and highly liquid; therefore, the Fund s liquidity risk is considered minimal. (d) Concentration risk Concentration risk arises as a result of the concentration of exposures within the same category, whether it is geographical location, product type, industry sector or counterparty type. The Fund invests in redeemable units or shares of other investment funds ( Underlying Funds ) to gain exposure to the investment objectives and strategies of the Underlying Funds. The Fund is exposed to the possible risk inherent in the concentration of the investment portfolio held by the Underlying Funds. The Managers of the Underlying Funds moderate this risk through careful selection of securities in several industries, investment sectors and geographical locations. The Fund s concentration risk is summarized in the tables below: As a % of Total Net Assets Sector March 31, 2018 September 30, 2017 Foreign Government Bonds Foreign Corporate Bonds Financials Information Technology Consumer Discretionary Materials Industrials Energy Consumer Staples Real Estate Mutual Funds Utilities Health Care Telecommunication Services Exchange Traded Funds Total As a % of Total Net Assets Geographical Location March 31, 2018 September 30, 2017 China Brazil India Mexico South Korea Canada Russia South Africa Indonesia Turkey Argentina Malaysia Taiwan Colombia Ukraine Philippines Poland Chile Others 15.5 (1) 16.4 (1) Total (1) Others included regions which individually represent less than 1.0% of the total Net Assets. p 19