Financial Statements December 31, 2010

Transcription

1 ASTRA Funds Statements December 31, 2010

2 ASTRA FUNDS Statements and Independent Auditor's Report December 31, 2010

3 Table of contents Page ASTRA Money Market Fund ASTRA Treasury Fund... 4 ASTRA Fiera Sceptre Bond Fund ASTRA Addenda Bond Fund ASTRA OAM Bond Fund ASTRA PIMCO Bond Fund ASTRA Bond Index Fund ASTRA Conservative Strategy Fund ASTRA Balanced Strategy Fund ASTRA Growth Strategy Fund.. 28 ASTRA Aggressive Strategy Fund 30 ASTRA Celestia Conservative Fund. 32 ASTRA Celestia Balanced Fund ASTRA Celestia Growth Fund ASTRA Celestia Aggressive Fund PRO SSQ Conservative Fundamental GIF Portfolio PRO SSQ Balanced Fundamental GIF Portfolio PRO SSQ Growth Fundamental GIF Portfolio PRO SSQ Aggressive Fundamental GIF Portfolio. 47 ASTRA Gryphon Balanced Fund.. 50 ASTRA McLean Budden Diversified Growth Fund ASTRA Fidelity Canadian Asset Allocation Fund ASTRA Ivy Diversified Growth and Income Fund ASTRA Acuity High Income Fund. 62 ASTRA UBS Global High Income Fund ASTRA Dividend Fund ASTRA Jarislowsky Fraser Ltd. Canadian Value Equity Fund. 71 ASTRA McLean Budden Canadian Equity Fund ASTRA Natcan Canadian Equity Fund ASTRA LODH Canadian Equity Fund ASTRA Greystone Canadian Growth Equity Fund. 83 PRO SSQ Canadian Fundamental Equity GIF ASTRA Canadian Index Fund ASTRA Howson Tattersall Canadian Small Cap Equity Fund. 92 ASTRA Canadian Small Cap Equity Fund ASTRA Jarislowsky Fraser Ltd. U.S. Value Equity Fund ASTRA McLean Budden U.S. Equity Fund. 101 PRO SSQ US Fundamental Equity GIF ASTRA U.S. Index Fund. 107 ASTRA International Equity Fund. 110 ASTRA Carnegie International Equity Fund PRO SSQ International Fundamental Equity GIF ASTRA International Index Fund ASTRA AllianceBernstein Global Equity Fund ASTRA Global Equity Fund ASTRA Hexavest Hedged Global Equity Fund ASTRA Lazard Global Small Cap Equity Fund PRO SSQ Emerging Markets Fundamental Equity GIF 135 PRO SSQ Hong Kong China Fundamental Equity GIF. 138 ASTRA Lazard Global Infrastructure Fund ASTRA BNP Paribas IP Global Real Estate Fund ASTRA Commodity Fund ASTRA Jefferies Commodity Fund Notes to Statements Independent Auditor s Report

4 ASTRA MONEY MARKET FUND FINANCIAL STATEMENTS NET ASSETS CHANGES IN NET ASSETS As at December For the years ended December $ $ $ $ Assets Net assets - Beginning of year 20,177 30,443 Investments, at fair value 11,657 19,741 Cash Capital unit transactions Receivables Proceeds from issue of units 34,232 47,179 11,916 20,177 Reinvestment of distributions Redemption of units (42,739) (57,471) Liabilities (8,486) (10,266) Bank overdraft - - Distributions to unitholders Accounts payable Net investment income (21) (26) Net realized gain - - Net Assets 11,691 20,177 (21) (26) Net asset value per unit from operations Class A Net assets - End of year 11,691 20,177 Class C OPERATIONS INVESTMENT PORTFOLIO Average Fair For the years ended December As at December 31, 2010 cost value $ $ $ Investment income Investments (99.71%) Interest MB Money Market Fund Distribution from the underlying fund ,165,677 units 11,657 11,657 Management fee distribution received - - Other net assets (0.29%) net assets (100%) 11,691 Expenses (note 4) Management fees Administration Net investment income (loss) Net realized gain (loss) on sale of investments - - Net realized gain distributed by the underlying fund - - Net unrealized gain (loss) on investments - - from operations from operations per unit Class A Class C

5 ASTRA MONEY MARKET FUND TOP 25 HOLDINGS OF THE UNDERLYING FUND DISTRIBUTIONS MB Money Market Fund % ($/unit) Canada Housing Trust, 4.05%, Class A Canada Housing Trust, 4.60%, Net investment income Canada, Treasury Bill, Net realized gain - - Wells Fargo, 4.45%, Class C Toronto-Dominion Bank, Interest Bearing Note, 2.30%, Net investment income Canada, Treasury Bill, Net realized gain - - Bank of Montreal, Interest Bearing Note, 1.34%, Province of Quebec, Interest Bearing Note, 1.28%, Citigroup, Discount Commercial Paper, MANAGEMENT EXPENSE RATIO Canada, Treasury Bill, Class A 1.47% 1.47% Canada, Treasury Bill, Class C 0.01% - GE Capital Canada, 4.75%, Scotia Bank, Bearer Depository Note, Scotia Bank, 4.58%, CHANGES IN NUMBER OF UNITS Union Gas, 6.65%, Manulife Bank, Bearer Depository Note, Class A CIBC, Interest Bearing Note, 1.45%, Units outstanding at the beginning 2,017,719 3,044,284 HSBC, Interest Bearing Note, 2.30%, Units issued 2,786,382 4,721,439 Enbridge, Discount Commercial Paper, Units redeemed (4,040,402) (5,748,004) National Bank of Canada, Interest Bearing Note, 1.37%, Units outstanding at the end 763,699 2,017,719 Province of Ontario, Treasury Bill, Class C Toyota, Discount Commercial Paper, Units outstanding at the beginning - - Honda Canada Finance, Discount Commercial Paper, Units issued 638,976 - Province of Quebec, Interest Bearing Promissory Note, Units redeemed (233,542) - British Columbia, Interest Bearing Promissory Note, Units outstanding at the end 405,434-2

6 ASTRA MONEY MARKET FUND Fair value of financial instruments The following table shows, as at December 31 the classification of financial instruments based on the fair value hierarchy described in note Investment funds 11, ,657 11, , Investment funds 19, ,741 19, ,741 During the fiscal years ended December 31, 2010 and 2009, there were no transfers of financial instruments between Levels 1 and 2. Nature and extent of risks arising from financial instruments The ASTRA Money Market Fund is a segregated fund that invests exclusively in the underlying fund called MB Money Market Fund. The ASTRA Money Market Fund is therefore defined as being a fund of funds. Consequently, please refer to notes 5 and 6 for details related to financial instrument risks. The underlying fund is managed by McLean Budden Ltd. The manager's investment strategy favours an interest rate anticipation management approach. 3

7 ASTRA TREASURY FUND FINANCIAL STATEMENTS NET ASSETS OPERATIONS As at December For the years ended December $ $ $ $ Assets Investment income Investments, at fair value 26,434 14,185 Interest Cash 1, Dividends - - Receivables ,872 14,610 Expenses (note 4) Management fees Liabilities Administration 18 5 Bank overdraft Accounts payable - - Net investment income (loss) Net realized gain (loss) on Net Assets 27,872 14,610 sale of investments (58) 38 Net unrealized gain (loss) on investments (29) 18 Net asset value per unit from operations Reconciliation of Net Assets with Transactional NAV Transactional NAV at closing prices of from operations per unit investments 27,893 14,624 Adjustment to bid prices of investments (21) (14) Net assets at bid prices of investments 27,872 14,610 CHANGES IN NET ASSETS Transactional NAV per unit at closing For the years ended December of investments $ $ Adjustment per unit to bid prices Net assets - Beginning of year 14,610 1,118 of investments (0.01) (0.01) Net assets per unit at bid prices Capital unit transactions of investments Proceeds from issue of units 32,827 21,079 Reinvestment of distributions Investments, at cost 26,420 14,142 Redemption of units (19,716) (7,721) 13,349 13,436 DISTRIBUTIONS Distributions to unitholders ($/unit) Net investment income (238) (78) Net investment income Net realized gain - - Net realized gain - - (238) (78) MANAGEMENT EXPENSE RATIO from operations % 1.89% Net assets - End of year 27,872 14,610 CHANGES IN NUMBER OF UNITS Units outstanding at the beginning 1,379, ,157 Units issued 3,113,975 2,000,161 Units redeemed (1,855,914) (729,905) Units outstanding at the end 2,637,474 1,379,413 4

8 ASTRA TREASURY FUND FINANCIAL STATEMENTS INVESTMENT PORTFOLIO As at December 31, 2010 Par Average Fair Par Average Fair Value cost Value Value cost Value $ $ $ $ $ $ CANADIAN BONDS (94.12%) CANADIAN BONDS (94.12%) (Cont'd) Government of Canada (27.92%) Municipals and subsidized (29.16%) (Cont'd) Canada, 3.75%, Montreal, 4.00%, Canada, 3.50%, ,040 1,064 1,072 Montreal, 4.80%, Canada Housing Trust, 4.60%, Montreal West, 3.40%, Canada Housing Trust, 4.00%, Mont-Royal, 3.40%, Canada Housing Trust, 1.25%*, Pointe-Claire, 3.05%, Canada Housing Trust, 3.60%, Quebec, 3.85%, Canada Housing Trust, 2.20%, Quebec, 4.10%, Canada Housing Trust, 2.95%, Quebec, 2.95%, Canada Housing Trust, 1.43%*, ,940 3,946 3,913 Quebec, 3.00%, ,814 7,781 Repentigny, 4.05%, Réseau transport de la Capitale, 4.65%, Provincials and subsidized (5.89%) Réseau transport de la Capitale, 4.60%, Kativik Regional Government, 1.80%, Réseau transport de la Capitale, 4.75%, British Columbia, 4.25%, Saguenay, 4.40%, Prince Edward Island, 3.20%, Saguenay, 4.00%, Nova Scotia Power, 5.75%, Saguenay, 3.25%, Hôpital Sacré Cœur, 4.00%, Saguenay, 4.55%, Concordia University, 4.65%, Sallaberry-de-Valleyfield, 3.35%, McGill University, 4.50%, Sept-Îles, 3.10%, Université de Montréal, 4.55%, Sherbrooke, 4.20%, ,636 1,643 Sherbrooke, 3.25%, Société de transport de l'outaouais, 3.15%, Municipals and subsidized (29.16%) Société de transport de Trois-Rivières, 3.05%, Boucherville, 3.20%, St-Adèle, 3.05%, Brossard, 4.00%, St-Bruno, 3.10%, Brossard, 4.60%, St-Jean-sur-Richelieu, 3.55%, Chambly, 4.30%, St-Jérôme, 4.40%, Châteauguay, 3.15%, St-Jérôme, 2.75%, Châteauguay, 4.35%, St-Lambert, 3.10%, Communauté urbaine de Montréal, 8.85%, Terrebonne, 2.45%, Dollard-des-Ormeaux, 4.20%, Terrebonne, 3.00%, Gaspé, 3.20%, Terrebonne, 2.75%, Gatineau, 3.90%, Terrebonne, 4.00%, Joliette, 1.50%, Thetford Mines, 3.00%, Kirkland, 3.05%, Trois-Rivières, 3.30%, Laval, 4.65%, Trois-Rivières, 4.60%, Lévis, 4.40%, Trois-Rivières, 4.95%, Lévis, 4.80%, Trois-Rivières, 4.75%, Lévis, 2.95%, Victoriaville, 3.30%, Longueuil, 3.80%, ,077 8,127 Longueuil, 3.40%, Longueuil, 5.20%, Corporates (31.15%) Longueuil, 4.00%, Bank of Montreal, 4.65%, Mascouche, 4.10%, Bank of Montreal, 3.49%, Mascouche, 4.80%, Bank of Montreal, 5.20%, Mirabel, 3.15%, National Bank of Canada, 4.93%, * Flotting rate : the identified rate is the effective rate as at December 31,

9 ASTRA TREASURY FUND FINANCIAL STATEMENTS INVESTMENT PORTFOLIO As at December 31, 2010 Par Average Fair value cost value $ $ $ CANADIAN BONDS (94.12%) (Cont'd) CANADIAN BONDS (94.12%) (Cont'd) Corporates (31.15%) (Cont'd) Corporates (31.15%) (Cont'd) Royal Bank of Canada, 5.00%, Telus, 4.50%, Royal Bank of Canada, 3.18%, Thomson Reuters, 5.20%, Scotia Bank, 4.99%, VW Credit Canada, 2.55%, Scotia Bank, 4.94%, ,693 8,683 Toronto-Dominion Bank, 5.14%, TOTAL CANADIAN BONDS 26,220 26,234 Toronto-Dominion Bank, 5.38%, Toronto-Dominion Bank, 3.37%, SHORT TERM INVESTMENTS (0.72%) BC Ferry Services, 6.21%, Canada, Treasury Bill, 0.98%, BC Ferry Services, 5.74%, Laurentian Bank, 3.70%, TOTAL OF INVESTMENTS (94.84%) 26,420 26,434 Bell Canada, 3.60%, OTHER NET ASSETS (5.16%) 1,438 Caisse Centrale Desjardins, 1.88%*, TOTAL NET ASSETS (100%) 27,872 Canadian Tire, 4.95%, Capital Desjardins, 6.32%, Capital Desjardins, 3.80%, Caterpillar Services, 4.94%, Central 1 Credit Union, 4.00%, CIBC, 4.95%, Credit Card Trust, 3.44%, Enbridge Gas, 5.57%, Enbridge Pipelines, 4.46%, Encana, 4.30%, Manulife, 5.16%, Sun Life, 7.90%, Wells Fargo, 4.40%, Wells Fargo, 3.97%, Gaz Métropolitain, 5.40%, Great-West Life, 6.00%, Honda Canada Finance, 4.70%, Honda Canada Finance, 5.68%, Hydro One, 3.13%, Industrial Alliance, 5.71%, Industrial Alliance, 8.25%, John Deere Credit, 4.80%, John Deere Credit, 3.90%, Loblaw, 4.85%, PSP Capital, 4.57%, Suncor Energy, 6.70%, Sun Life Assurance, 6.15%,

10 ASTRA TREASURY FUND Fair value of financial instruments The following table shows, as at December 31 the classification of financial instruments based on the fair value hierarchy described in note Bonds - 26,234-26,234 Investment funds Short-term investments ,434-26, Bonds - 14,185-14,185 Investment funds Short-term investments ,185-14,185 During the fiscal years ended December 31, 2010 and 2009, there were no transfers of financial instruments between Levels 1 and 2. Nature and extent of risks arising from financial instruments Fund objective The objective of the ASTRA Treasury Fund (the Fund ) is to generate regular income and moderate short-to medium-term capital growth. Investment strategy The Fund is invested mainly in Canadian short-term fixed income securities. These securities are issued by federal, provincial and municipal governments as well as Canadian companies. The Fund may hold units of underlying funds corresponding to the above-mentioned securities. The investment strategy of the external manager, Optimum Asset Management, focuses on capital preservation and favours an approach based on interest rate expectations, yield curve management, sector selection and securities selection. Credit spread management and market timing are also considered. As at December 31, 2010, the Fund s assets are mainly made up of Canadian bonds securities traded on an active market. Risk exposure The Fund is exposed mainly to bond market risk, interest rate risk, credit risk, as well as risk related to the use of derivative instruments. It does not use financial leverage or derivative products for speculative purposes. Please refer to notes 5 and 6 for information on financial instrument risks. Currency risk As at December 31, 2010 and 2009, all of the Fund s securities are denominated in Canadian dollars, the Fund s functional currency. Consequently, the Fund is not exposed to currency risk. Interest rate risk The following table indicates the Fund s interest rate exposure with financial instruments at fair value by contract maturities. Investments Under 1 year From 1 to 5 years Over 5 years ,993 20,095 4, ,100 10,703 2,382 The table below shows the impact of a potential change in prevailing interest rates on the net assets of the Fund as at December 31, with all other variables held constant. Change in prevailing interest rate (%) Impact on net assets (842) Impact on net assets (440) 440 The results of the sensitivity analysis conducted with respect to the risks to which the Fund is exposed represent Management s best estimates. Actual results may vary significantly from these estimates. Other price risk The Fund trades fixed income securities and short-term securities which must meet the requirements of the investment policy. The Fund invests between 85% and 100% in fixed income securities and up to a maximum of 15% in short-term securities. On purchase, short-term securities must be rated R1 or higher by the Dominion Bond Rating Service and bond securities must be rated BBB or higher by Standard & Poor s. Bond securities rated BBB may not make up more than 10% of the Fund s assets. Corporate bond securities may not exceed 70% of the Fund s assets. Holdings in a single corporate issuer are limited to 10% of Fund assets. A minimum of 25% of the market value of the Fund must be invested in fixed income securities issued or guaranteed by the Government of Canada 7

11 ASTRA TREASURY FUND Other price risk (Cont d) The table below shows the impact on the net assets of the Fund as at December 31, of a potential change in benchmark, with all other variables held constant. Benchmark DEX Universe Short Term Index Change in benchmark (%) Impact on net assets 525 (525) 2009 Impact on net assets 284 (284) The results of the sensitivity analysis conducted with respect to other price risk to which the Fund is exposed represent Management s best estimates. Actual results may vary significantly from these estimates. Credit risk The Fund s main credit concentration risk arises from fixed income securities. All transactions on traded securities are settled or paid on delivery through certified brokers. Securities sold are not delivered until the broker has received payment. Payment for securities purchased is not made until the securities are received by the broker. The transaction is cancelled if one of the parties does not fulfil its obligations. As at December 31, the allocation of fixed income and short-term securities in the portfolio by credit rating are as follows: Credit rating* 2010 (%) 2009 (%) Governments, municipals and subsidized Companies rated AAA Companies rated AA Companies rated A Companies rated BBB * Source : Dominion Bond Rating Services Liquidity risk The Fund is exposed to liquidity risk on daily redemptions of units. Investments held by the Fund are traded on an active market. Thus, the Fund is able to liquidate its investments at an amount that approximates their fair value in order to meet its liquidity obligations. As at December 31, 2010 and 2009, the Fund has no securities loans and no derivative products. 8

12 ASTRA FIERA SCEPTRE BOND FUND FINANCIAL STATEMENTS NET ASSETS CHANGES IN NET ASSETS As at December For the years ended December $ $ $ $ Assets Net assets - Beginning of year 32,813 - Investments, at fair value 125,199 32,701 Cash 1, Capital unit transactions Receivables 5 4 Proceeds from issue of units 100,242 34, ,707 32,813 Reinvestment of distributions 2,787 1,468 Redemption of units (10,611) (1,975) Liabilities 92,418 34,177 Bank overdraft - - Distributions to unitholders Accounts payable Net investment income (2,616) (884) Net realized gain (173) (586) Net Assets 126,127 32,813 (2,789) (1,470) Net asset value per unit from operations 3, Net assets - End of year 126,127 32,813 OPERATIONS INVESTMENT PORTFOLIO Average Fair For the years ended December As at December 31, 2010 cost value $ $ $ $ Investment income Investments (99.26%) Interest 1 - Fiera Active Fixed Income Fund Distribution from the underlying fund 4,460 1,044 8,207,669 units 84,493 83,585 Management fee distribution received - - Fiera Tactical Fixed Income Fund 4,461 1,044 3,952,172 units 41,208 41,614 Expenses (note 4) Management fees 1, of investments (99.26%) 125, ,199 Administration 92 8 Other net assets (0.74%) 928 1, net assets (100%) 126,127 Net investment income (loss) 2, Net realized gain (loss) on sale of investments 21 5 Net realized gain distributed by the underlying fund Net unrealized gain (loss) on investments 867 (1,369) from operations 3, from operations per unit

13 ASTRA FIERA SCEPTRE BOND FUND TOP 5 HOLDINGS OF THE UNDERLYING FUND DISTRIBUTIONS Fiera Active Fixed Income Fund % ($/unit) Government of Canada, 3.00%, Net investment income Government of Canada, 4.25%, Net realized gain PSP Capital, 4.57%, Royal Office of Finance, 5.21%, Province of Ontario, 4.70%, MANAGEMENT EXPENSE RATIO % 2.05% TOP 5 HOLDINGS OF THE UNDERLYING FUND Fiera Tactical Fixed Income Fund % CHANGES IN NUMBER OF UNITS Canada, Treasury Bill, Province of Nova Scotia, 4.15%, Units outstanding at the beginning 3,341,348 - Province of Quebec, 4.50%, Units issued 10,154,174 3,533,165 Toronto Community Housing Trust, 4.88%, Units redeemed (1,041,956) (191,817) Royal Office of Finance, 5.21%, Units outstanding at the end 12,453,566 3,341,348 10

14 ASTRA FIERA SCEPTRE BOND FUND Fair value of financial instruments The following table shows, as at December 31 the classification of financial instruments based on the fair value hierarchy described in note Investment funds 125, , , , Investment funds 32, ,701 32, ,701 During the fiscal years ended December 31, 2010 and 2009, there were no transfers of financial instruments between Levels 1 and 2. Nature and extent of risks arising from financial instruments The ASTRA Fiera Sceptre Bond Fund is a segregated fund that invests exclusively in underlying funds called Fiera Active Fixed Income Fund and Fiera Tactical Fixed Income Fund. The ASTRA Fiera Sceptre Bond Fund is therefore defined as being a fund of funds. Consequently, please refer to notes 5 and 6 for details related to financial instrument risks. The underlying funds are managed by Fiera Sceptre with complementary management styles. The Fund s assets are made up of approximately 67% of the Fiera Active Fixed Income Fund with a management approach based on duration, maturity dates and credit and 33% of the Fiera Tactical Fixed Income Fund with a management approach that puts emphasis on the duration. 11

15 ASTRA ADDENDA BOND FUND FINANCIAL STATEMENTS NET ASSETS CHANGES IN NET ASSETS As at December For the years ended December $ $ $ $ Assets Net assets - Beginning of year 152, ,306 Investments, at fair value 76, ,228 Cash Capital unit transactions Receivables 10 9 Proceeds from issue of units 32,657 47,909 77, ,653 Reinvestment of distributions 1,909 4,758 Redemption of units (111,763) (65,892) Liabilities (77,197) (13,225) Bank overdraft - - Distributions to unitholders Accounts payable 1 - Net investment income (1,127) (2,284) 1 - Net realized gain (783) (2,475) Net Assets 77, ,653 (1,910) (4,759) Net asset value per unit from operations 3,652 10,331 Net assets - End of year 77, ,653 OPERATIONS INVESTMENT PORTFOLIO Average Fair For the years ended December As at December 31, 2010 cost value $ $ $ $ Investment income Investments (99.60%) Interest 1 5 Bâtirente Addenda Bond Fund Distribution from the underlying fund 1,252 2,287 3,778,348 units 75,869 76,892 Management fee distribution received 1,786 3,108 Other net assets (0.40%) 306 3,039 5,400 net assets (100%) 77,198 Expenses (note 4) Management fees 1,819 2,964 Administration ,912 3,116 Net investment income (loss) 1,127 2,284 Net realized gain (loss) on sale of investments 1,002 2,463 Net realized gain distributed by the underlying fund Net unrealized gain (loss) on investments 1,411 5,572 from operations 3,652 10,331 from operations per unit

16 ASTRA ADDENDA BOND FUND TOP 25 HOLDINGS OF THE UNDERLYING FUND DISTRIBUTIONS Bâtirente Addenda Bond Fund % ($/unit) Government of Canada, 1.25%, Net investment income Canada Housing Trust, 1.25%*, Net realized gain Financement Québec, 1.26%*, Province of Quebec, 4.50%, MANAGEMENT EXPENSE RATIO Province of Ontario, 4.30%, % 2.05% Government of Canada, 3.00%, Province of Ontario, 4.50%, CHANGES IN NUMBER OF UNITS Financement Québec, 1.22%*, Government of Canada, 1.25%, Units outstanding at the beginning 15,090,669 16,444,148 Province of Ontario, 4.40%, Units issued 3,360,647 5,214,511 Province of Quebec, 1.29%*, Units redeemed (10,897,646) (6,567,990) RBC Capital Trust, 4.87%, Units outstanding at the end 7,553,670 15,090,669 Canada, 3.50%, Province of Quebec, 4.50%, BMO Capital Trust, 10.22%, Canada, 4.00%, Canada, 1.00%, Hydro One, 5.00%, Province of Ontario, 4.65%, Province of Quebec, 4.50%, Claregold Trust A1, 5.07%, Government of Canada, 2.00%, Great-West Life, 5.69%, Toronto-Dominion Bank, 5.76%, MLFA 2005-CA15 A2, 4.82%, * Flotting rate : the identified rate is the effective rate as at December 31,

17 ASTRA ADDENDA BOND FUND Fair value of financial instruments The following table shows, as at December 31 the classification of financial instruments based on the fair value hierarchy described in note Investment funds 76, ,892 76, , Investment funds 152, , , ,228 During the fiscal years ended December 31, 2010 and 2009, there were no transfers of financial instruments between Levels 1 and 2. Nature and extent of risks arising from financial instruments The ASTRA Addenda Bond Fund is a segregated fund that invests exclusively in the underlying fund called Bâtirente Addenda Bond Fund. The ASTRA Addenda Bond Fund is therefore defined as being a fund of funds. Consequently, please refer to notes 5 and 6 for details related to financial instrument risks. The underlying fund is managed by Addenda Capital. The manager's investment strategy favours an interest rate anticipation and yield curve management approach. The choice of sectors, the choice of securities, the management of credit spreads and the synchronization of interventions are all also given consideration. 14

18 ASTRA OAM BOND FUND FINANCIAL STATEMENTS NET ASSETS CHANGES IN NET ASSETS As at December For the years ended December $ $ $ $ Assets Net assets - Beginning of year 17, Investments, at fair value 62,339 17,910 Cash Capital unit transactions Receivables - 1 Proceeds from issue of units 57,473 18,922 62,664 17,927 Reinvestment of distributions 1, Redemption of units (14,322) (1,585) Liabilities 44,407 17,575 Bank overdraft - - Distributions to unitholders Accounts payable - - Net investment income (1,088) (94) - - Net realized gain (168) (130) Net Assets 62,664 17,927 Return of capital - (14) (1,256) (238) Net asset value per unit from operations 1,586 (15) Net assets - End of year 62,664 17,927 OPERATIONS INVESTMENT PORTFOLIO Average Fair For the years ended December As at December 31, 2010 cost value $ $ $ $ Investment income Investments (99.48%) Interest 1 - Optimum Bond Pooled Fund Distribution from the underlying fund 2, ,056,495 units 62,261 62,339 Management fee distribution received - - Other net assets (0.52%) 325 2, net assets (100%) 62,664 Expenses (note 4) Management fees 1, Administration , Net investment income (loss) 1, Net realized gain (loss) on sale of investments Net realized gain distributed by the underlying fund Net unrealized gain (loss) on investments 330 (248) from operations 1,586 (15) from operations per unit 0.30 (0.03) 15

19 ASTRA OAM BOND FUND TOP 25 HOLDINGS OF THE UNDERLYING FUND DISTRIBUTIONS Optimum Bond Pooled Fund % ($/unit) Government of Canada, 3.50%, Net investment income Province of Quebec, 5.00%, Net realized gain Canada Housing Trust, 2.95%, Return of capital United States Treasury, 4.25%, Canada Housing Trust, 1.43%, MANAGEMENT EXPENSE RATIO Province of Ontario, 4.60%, % 2.05% CIBC Capital Trust, 9.98%, Sun Life, 4.95%, CHANGES IN NUMBER OF UNITS Thomson Reuters, 5.70%, Toronto-Dominion Bank, 5.76%, Units outstanding at the beginning 1,726,941 60,614 NAV Canada, 4.71%, Units issued 5,595,159 1,817,541 Bank of Montreal, 5.10%, Units redeemed (1,337,492) (151,214) Bell Canada, 5.00%, Units outstanding at the end 5,984,608 1,726,941 Toronto-Dominion Bank, 5.69%, Honda Canada Finance, 5.68%, Royal Bank of Canada, 4.35%, Scotia Bank, 4.99%, Industrial Alliance, 5.13%, Capital Desjardins, 6.32%, Ville de Sherbrooke, 4.20%, Caterpillar Services, 4.94%, Telus, 4.50%, St-Jean-sur-Richelieu, 4.00%, CIBC, 3.95%, Sun Life, 5.86%,

20 ASTRA OAM BOND FUND Fair value of financial instruments The following table shows, as at December 31 the classification of financial instruments based on the fair value hierarchy described in note Investment funds 62, ,339 62, , Investment funds 17, ,910 17, ,910 During the fiscal years ended December 31, 2010 and 2009, there were no transfers of financial instruments between Levels 1 and 2. Nature and extent of risks arising from financial instruments The ASTRA OAM Bond Fund is a segregated fund that invests exclusively in the underlying fund called Optimum Bond Pooled Fund. The ASTRA OAM Bond Fund is therefore defined as being a fund of funds. Consequently, please refer to notes 5 and 6 for details related to financial instrument risks. The underlying fund is managed by Optimum Asset Management. The manager's investment strategy favours an interest rate anticipation and yield curve management approach. The choice of sectors, the choice of securities, the management of credit spreads and the synchronization of interventions are all also given consideration. 17

21 ASTRA PIMCO BOND FUND FINANCIAL STATEMENTS NET ASSETS CHANGES IN NET ASSETS As at December For the years ended December $ $ $ $ Assets Net assets - Beginning of year 62,246 56,743 Investments, at fair value 71,982 62,119 Cash Capital unit transactions Receivables 6 34 Proceeds from issue of units 31,372 20,439 72,342 62,246 Reinvestment of distributions 4,752 3,807 Redemption of units (25,651) (20,921) Liabilities 10,473 3,325 Bank overdraft - - Distributions to unitholders Accounts payable - - Net investment income (1,276) (478) - - Net realized gain (3,476) (3,330) Net Assets 72,342 62,246 (4,752) (3,808) Net asset value per unit from operations 4,375 5,986 Net assets - End of year 72,342 62,246 OPERATIONS INVESTMENT PORTFOLIO Average Fair For the years ended December As at December 31, 2010 cost value $ $ $ $ Investment income Investments (99.50%) Interest 1 2 PIMCO Canadian CorePLUS Bond Fund Distribution from the underlying fund 2,665 1, ,189 units 71,769 71,982 Management fee distribution received - - Other net assets (0.50%) 360 2,666 1,717 net assets (100%) 72,342 Expenses (note 4) Management fees 1,321 1,179 Administration ,389 1,239 Net investment income (loss) 1, Net realized gain (loss) on sale of investments Net realized gain distributed by the underlying fund 2,804 2,960 Net unrealized gain (loss) on investments (378) 2,150 from operations 4,375 5,986 from operations per unit

22 ASTRA PIMCO BOND FUND TOP HOLDINGS OF UNDERLYING FUND DISTRIBUTIONS PIMCO Canadian CorePLUS Bond Fund % ($/unit) FIN FUT CAN, Net investment income Government of Canada, 1.50%, Net realized gain Canada Housing Trust, 3.15%, Government of Canada, 5.00%, MANAGEMENT EXPENSE RATIO Province of Quebec, 4.50%, % 2.15% Province of Ontario, 4.40%, Government of Canada, 3.75%, CHANGES IN NUMBER OF UNITS Hydro-Quebec, 11.00%, Province of Quebec, 4.50%, Units outstanding at the beginning 6,427,098 6,089,170 Province of Ontario, 6.20%, Units issued 3,604,393 2,466,331 Canada Post, 4.08%, Units redeemed (2,551,549) (2,128,403) Canada Post, 4.36%, Units outstanding at the end 7,479,942 6,427,098 Canada Housing Trust, 2.45%, Province of Quebec, 3.30%, Province of Ontario, 4.20%, Province of Ontario, 4.40%, Province of Quebec, 4.50%, FIN FUT US, Bank of Montreal, 2.85%, HSBC, 6.68%,

23 ASTRA PIMCO BOND FUND Fair value of financial instruments The following table shows, as at December 31 the classification of financial instruments based on the fair value hierarchy described in note Investment funds 71, ,982 71, , Investment funds 62, ,119 62, ,119 During the fiscal years ended December 31, 2010 and 2009, there were no transfers of financial instruments between Levels 1 and 2. Nature and extent of risks arising from financial instruments The ASTRA PIMCO Bond Fund is a segregated fund that invests exclusively in the underlying fund called PIMCO Canadian CorePLUS Bond Fund. The ASTRA PIMCO Bond Fund is therefore defined as being a fund of funds. Consequently, please refer to notes 5 and 6 for details related to financial instrument risks. The underlying fund is managed by PIMCO Canada Trust. The manager's investment strategy favours an approach based on diversification of sources for adding value while minimizing the risk of the portfolio. 20

24 ASTRA BOND INDEX FUND FINANCIAL STATEMENTS NET ASSETS CHANGES IN NET ASSETS As at December For the years ended December $ $ $ $ Assets Net assets - Beginning of year 47,186 22,958 Investments, at fair value 49,875 47,100 Cash Capital unit transactions Receivables 1 - Proceeds from issue of units 17,019 54,070 49,949 47,186 Reinvestment of distributions 1, Redemption of units (16,457) (30,552) Liabilities 1,834 24,207 Bank overdraft - - Distributions to unitholders Accounts payable - - Net investment income (895) (529) - - Net realized gain (377) (160) Net Assets 49,949 47,186 (1,272) (689) Net asset value per unit from operations 2, Net assets - End of year 49,949 47,186 OPERATIONS INVESTMENT PORTFOLIO Average Fair For the years ended December As at December 31, 2010 cost value $ $ $ $ Investment income Investments (99.85%) Interest - 1 BlackRock Canada Universe Bond Distribution from the underlying fund 1,886 1,158 Index Fund - Class D Management fee distribution received - - 2,408,429 units 48,376 49,875 1,886 1,159 Other net assets (0.15%) 74 Expenses (note 4) net assets (100%) 49,949 Management fees Administration Net investment income (loss) Net realized gain (loss) on sale of investments Net realized gain distributed by the underlying fund 29 - Net unrealized gain (loss) on investments 869 (46) from operations 2, from operations per unit

25 ASTRA BOND INDEX FUND TOP 25 HOLDINGS OF THE UNDERLYING FUND DISTRIBUTIONS BlackRock Canada Universe Bond Index Fund - Class D % ($/unit) Government of Canada, 3.50%, Net investment income Canada Housing Trust, 4.55%, Net realized gain Government of Canada, 3.00%, Government of Canada, 2.00%, MANAGEMENT EXPENSE RATIO Government of Canada, 2.00%, % 2.05% Canada Housing Trust, 2.20%, Canada Housing Trust, 3.95%, CHANGES IN NUMBER OF UNITS Government of Canada, 5.25%, Government of Canada, 5.75%, Units outstanding at the beginning 4,568,794 2,246,568 Government of Canada, 5.00%, Units issued 1,710,972 5,302,968 Government of Canada, 4.00%, Units redeemed (1,537,988) (2,980,742) Government of Canada, 3.75%, Units outstanding at the end 4,741,778 4,568,794 Province of Ontario, 5.00%, Government of Canada, 3.50%, Government of Canada, 5.75%, Canada Housing Trust, 2.70%, Government of Canada, 4.00%, Canada Housing Trust, 2.75%, Government of Canada, 4.50%, Government of Canada, 4.25%, Government of Canada, 5.00%, Canada Housing Trust, 4.80%, Government of Canada, 2.50%, Government of Canada, 3.75%, Canada Housing Trust, 4.00%,

26 ASTRA BOND INDEX FUND Fair value of financial instruments The following table shows, as at December 31 the classification of financial instruments based on the fair value hierarchy described in note Investment funds 49, ,875 49, , Investment funds 47, ,100 47, ,100 During the fiscal years ended December 31, 2010 and 2009, there were no transfers of financial instruments between Levels 1 and 2. Nature and extent of risks arising from financial instruments The ASTRA Bond Index Fund is a segregated fund that invests exclusively in the underlying fund called BlackRock Canada Universe Bond Index Fund - Class D. The ASTRA Bond Index Fund is therefore defined as being a fund of funds. Consequently, please refer to notes 5 and 6 for details related to financial instrument risks. The underlying fund is managed by BlackRock Asset Management (previously Barclays Global Investors) and it replicates the performance of the DEX Universe Bond Index. 23

27 ASTRA CONSERVATIVE STRATEGY FUND FINANCIAL STATEMENTS NET ASSETS OPERATIONS As at December For the years ended December $ $ $ $ Assets Investment income Investments, at fair value 58,135 39,423 Interest - 1 Cash Distribution from the underlying fund 1,813 1,243 Receivables Management fee distribution received ,707 39,947 1,813 1,289 Expenses (note 4) Liabilities Management fees 1, Bank overdraft - - Administration Accounts payable 215-1, Net investment income (loss) Net Assets 58,492 39,947 Net realized gain (loss) on sale of investments 69 (352) Net asset value per unit Net realized gain distributed by the underlying fund Net unrealized gain (loss) on investments 1,907 2,810 INVESTMENT PORTFOLIO Average Fair As at December 31, 2010 cost value from operations 2,947 3,141 $ $ Investments (99.39%) from operations per unit MB Fixed Income Fund 646,594 units 36,442 36,826 Jarislowsky Fraser Canadian Equity Fund CHANGES IN NET ASSETS 224,902 units 7,101 7,586 For the years ended December MB Canadian Equity Growth Fund $ $ 90,948 units 6,643 7,867 Net assets - Beginning of year 39,947 25,430 McLean Budden American Equity Fund - Class C 98,692 units 3,080 3,024 Capital unit transactions Hexavest Europac Fund Proceeds from issue of units 25,904 18,437 3,006 units 2,925 2,832 Reinvestment of distributions Redemption of units (10,303) (7,059) of investments (99.39%) 56,191 58,135 16,558 11,905 Other net assets (0.61%) 357 Distributions to unitholders net assets (100%) 58,492 Net investment income (575) (529) Net realized gain (385) - (960) (529) from operations 2,947 3,141 Net assets - End of year 58,492 39,947 24

28 ASTRA CONSERVATIVE STRATEGY FUND DISTRIBUTIONS ($/unit) Net investment income Net realized gain MANAGEMENT EXPENSE RATIO % 2.47% CHANGES IN NUMBER OF UNITS Units outstanding at the beginning 3,890,642 2,693,079 Units issued 2,585,136 1,918,986 Units redeemed (988,731) (721,423) Units outstanding at the end 5,487,047 3,890,642 Fair value of financial instruments The following table shows, as at December 31 the classification of financial instruments based on the fair value hierarchy described in note Investment funds 58, ,135 58, ,135 The ASTRA Conservative Strategy Fund is a segregated fund that invests exclusively in underlying funds to respect the following asset allocation strategy: Bonds (65%) Underlying Fund MB Fixed Income Fund Canadian Equities (25%) Underlying Funds Jarislowsky Fraser Canadian Equity Fund MB Canadian Equity Growth Fund International Equities (10%) Underlying Funds McLean Budden American Equity Fund Class C Hexavest Europac Fund Manager McLean Budden Ltd. Manager Jarislowsky Fraser Ltd. McLean Budden Ltd. Manager TOP HOLDINGS OF UNDERLYING FUNDS Please refer to the page 40. McLean Budden Ltd. Hexavest Asset Management 2009 Investment funds 39, ,423 39, ,423 During the fiscal years ended December 31, 2010 and 2009, there were no transfers of financial instruments between Levels 1 and 2. Nature and extent of risks arising from financial instruments The ASTRA Conservative Strategy Fund is therefore defined as being a fund of funds. Consequently, please refer to notes 5 and 6 for details related to financial instrument risks. The underlying funds are managed by external managers. 25

29 ASTRA BALANCED STRATEGY FUND FINANCIAL STATEMENTS NET ASSETS OPERATIONS As at December For the years ended December $ $ $ $ Assets Investment income Investments, at fair value 199, ,611 Interest 1 6 Cash Distribution from the underlying fund 3,755 3,537 Receivables Management fee distribution received 1, , ,393 5,629 4,371 Expenses (note 4) Liabilities Management fees 4,270 3,243 Bank overdraft - - Administration Accounts payable 468-4,449 3, Net investment income (loss) 1, Net Assets 199, ,393 Net realized gain (loss) on sale of investments 1,065 (2,938) Net asset value per unit Net realized gain distributed by the underlying fund 1, Net unrealized gain (loss) on investments 8,829 17,322 INVESTMENT PORTFOLIO Average Fair from operations 12,728 16,009 As at December 31, 2010 cost value $ $ from operations per unit Investments (100.03%) ASTRA Fiera Sceptre Bond Fund 4,265,494 units 42,837 43,200 CHANGES IN NET ASSETS ASTRA AlphaFixe Bond Fund For the years ended December ,302,674 units 42,908 43,364 $ $ Jarislowsky Fraser Canadian Equity Fund Net assets - Beginning of year 161, ,544 1,069,103 units 30,812 36,063 Greystone Canadian Equity Fund Capital unit transactions 1,443,783 units 35,264 36,637 Proceeds from issue of units 59,354 54,991 McLean Budden American Equity Fund - Class C Reinvestment of distributions 3, ,167 units 13,214 12,321 Redemption of units (34,387) (32,151) ASTRA Carnegie International Equity Fund 28,865 23,831 1,444,671 units 12,213 11,882 Distributions to unitholders Hexavest World Fund Net investment income (1,180) (991) 16,289 units 16,271 15,673 Net realized gain (2,719) - (3,899) (991) of investments (100.03%) 193, ,140 Other net assets (-0.03%) (53) from operations 12,728 16,009 net assets (100%) 199,087 Net assets - End of year 199, ,393 26

30 ASTRA BALANCED STRATEGY FUND DISTRIBUTIONS ($/unit) Net investment income Net realized gain MANAGEMENT EXPENSE RATIO % 2.52% The ASTRA Balanced Strategy Fund is a segregated fund that invests exclusively in underlying funds to respect the following asset allocation strategy: Bonds (45%) Underlying Funds ASTRA Fiera Sceptre Bond Fund (page 40) ASTRA AlphaFixe Bond Fund (page 40) Manager Fiera Sceptre AlphaFixe Capital CHANGES IN NUMBER OF UNITS Units outstanding at the beginning 17,071,923 14,425,949 Units issued 6,535,648 6,312,687 Units redeemed (3,545,767) (3,666,713) Units outstanding at the end 20,061,804 17,071,923 Fair value of financial instruments The following table shows, as at December 31 the classification of financial instruments based on the fair value hierarchy described in note 2. Canadian Equities (35%) Underlying Funds Jarislowsky Fraser Canadian Equity Fund (page 40) Greystone Canadian Equity Fund (page 40) International Equities (20%) Underlying Funds McLean Budden American Equity Fund Class C (page 40) ASTRA Carnegie International Equity Fund (page 113) Hexavest World Fund (page 40) Manager Jarislowsky Fraser Ltd. Greystone Managed Investments Manager McLean Budden Ltd. Carnegie Asset Management Hexavest Asset Management 2010 Investment funds 199, , , ,140 TOP HOLDINGS OF UNDERLYING FUNDS Please refer to the page number references provided in the table above Investment funds 160, , , ,611 During the fiscal years ended December 31, 2010 and 2009, there were no transfers of financial instruments between Levels 1 and 2. Nature and extent of risks arising from financial instruments The ASTRA Balanced Strategy Fund is therefore defined as being a fund of funds. Consequently, please refer to notes 5 and 6 for details related to financial instrument risks. The underlying funds are managed by external managers. 27

31 ASTRA GROWTH STRATEGY FUND FINANCIAL STATEMENTS NET ASSETS OPERATIONS As at December For the years ended December $ $ $ $ Assets Investment income Investments, at fair value 54,256 43,219 Interest - 2 Cash Distribution from the underlying fund Receivables Management fee distribution received ,329 43,445 1,386 1,060 Expenses (note 4) Liabilities Management fees 1, Bank overdraft - - Administration Accounts payable 82-1, Net investment income (loss) Net Assets 54,247 43,445 Net realized gain (loss) on sale of investments 244 (629) Net asset value per unit Net realized gain distributed by the underlying fund Net unrealized gain (loss) on investments 2,856 5,329 INVESTMENT PORTFOLIO Average Fair from operations 3,716 5,021 As at December 31, 2010 cost value $ $ from operations per unit Investments (100.02%) ASTRA Fiera Sceptre Bond Fund 767,162 units 7,710 7,770 CHANGES IN NET ASSETS ASTRA AlphaFixe Bond Fund For the years ended December ,887 units 7,721 7,800 $ $ Jarislowsky Fraser Canadian Equity Fund Net assets - Beginning of year 43,445 28, ,051 units 11,926 12,516 Greystone Canadian Equity Fund Capital unit transactions 501,241 units 11,413 12,719 Proceeds from issue of units 14,318 17,802 McLean Budden American Equity Fund - Class C Reinvestment of distributions ,712 units 4,391 4,158 Redemption of units (7,232) (8,254) ASTRA Carnegie International Equity Fund 7,946 9, ,219 units 4,057 4,007 Distributions to unitholders Hexavest World Fund Net investment income (160) (162) 5,494 units 5,489 5,286 Net realized gain (700) - (860) (162) of investments (100.02%) 52,707 54,256 Other net assets (-0.02%) (9) from operations 3,716 5,021 net assets (100%) 54,247 Net assets - End of year 54,247 43,445 28