iprofile TM Fixed Income Pool

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1 Interim Financial Report FOR THE SIX-MONTH PERIOD ENDED SEPTEMBER 30, 2017 The accompanying interim financial statements have not been reviewed by the external auditors of the Pool. The external auditors will be auditing the annual financial statements of the Pool as at March 31, 2018, in accordance with Canadian generally accepted auditing standards. Copyright Investors Group Inc Trademarks, including Investors Group, are owned by IGM Financial Inc. and licensed to its subsidiary corporations.

2 INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017 STATEMENTS OF FINANCIAL POSITION at September 30, 2017 (unaudited) with comparative figures at March 31, 2017 (in $ 000 except per security amounts) Assets Current assets: Sep. 30 Mar Non-derivative investments 1,624,665 1,051,453 Cash and cash equivalents 32,319 40,338 Accrued interest receivable 10,179 6,486 Dividends receivable Accounts receivable for investments sold 6,051 3,793 Accounts receivable for securities issued - - Accounts receivable from the Manager - - Margin on derivative contracts - - Derivative assets Other assets 9 3 Non-current assets: 1,674,027 1,102,351 Taxes recoverable - - Other assets Total assets 1,674,027 1,102,351 Liabilities Current liabilities: Bank indebtedness - - Accounts payable for investments purchased 15,607 21,951 Accounts payable for securities redeemed - - Distributions payable - - Accrued expenses and miscellaneous payables Dividends payable on investments sold short - - Derivative liabilities 1, Taxes payable - - Other liabilities Total liabilities 17,614 22,923 Net assets attributable to securityholders 1,656,413 1,079,428 STATEMENTS OF COMPREHENSIVE INCOME for the six-month periods ended September 30 (unaudited) (in $ 000 except per security amounts) Income: Gains (losses) on derivative and non-derivative investments: a2017 b2016 Dividends Interest income 19,924 9,388 Net realized gain (loss) 1,176 2,493 Net unrealized gain (loss) (31,103) 14,129 Income (loss) from derivatives - - Income (loss) from short selling - - Other 2,586 1,192 Net gain (loss) on derivative and non-derivative investments (7,146) 27,304 Securities lending income Other - - Total income (7,104) 27,325 Expenses: Pool advisory fees 1, Administration fees 1, Audit fees 5 2 Custody fees 15 9 Registration fees and expenses Trustee fees Securityholder reporting Commissions and other portfolio transaction costs 25 5 Independent Review Committee costs 2 2 Other 3 7 Expenses before amounts absorbed by Manager 4,507 1,970 Expenses absorbed by Manager - - Net expenses 4,507 1,970 Increase (decrease) in net assets attributable to securityholders from operations before tax (11,611) 25,355 Foreign withholding taxes paid (recovered) Foreign income taxes paid (recovered) - - Income tax paid (recovered) - - Increase (decrease) in net assets attributable to securityholders from operations (11,621) 25,328 Net assets attributable to securityholders per security per series Sep. 30 Mar. 31 Sep. 30 Mar Series I ,617,232 1,051,764 Series Ti ,181 27,664 1,656,413 1,079,428 Increase (decrease) in net assets attributable to securityholders from operations per security per series a2017 b2016 a2017 b2016 Series I (0.06) 0.51 (11,395) 24,567 Series Ti (0.04) 0.44 (226) 761 (11,621) 25,328 See accompanying notes.

3 INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017 STATEMENTS OF CHANGES IN FINANCIAL POSITION for the six-month periods ended September 30 (unaudited) (in $ 000 except when stated) TOTAL SERIES I SERIES Ti a2017 b2016 a2017 b2016 a2017 b2016 Net assets attributable to securityholders, beginning of period 1,079, ,079 1,051, ,334 27,664 18,745 Increase (decrease) in net assets attributable to securityholders resulting from: Operations (11,621) 25,328 (11,395) 24,567 (226) 761 Distributions: Income (18,006) (8,757) (17,579) (8,504) (427) (253) Capital gains Return of capital (54) (10) - - (54) (10) Pool advisory fee rebates Total distributions (18,060) (8,767) (17,579) (8,504) (481) (263) Security transactions: Proceeds from sale of securities 693, , , ,642 16,168 2,170 Proceeds from securities issued on merger Reinvested from distributions 17,763 8,589 17,456 8, Payment on redemption of securities (104,478) (59,676) (100,227) (56,447) (4,251) (3,229) Total security transactions 606,666 88, ,442 89,589 12,224 (864) Increase (decrease) in assets attributable to securityholders 576, , , ,652 11,517 (366) Net assets attributable to securityholders, end of period 1,656, ,365 1,617, ,986 39,181 18,379 Increase (decrease) in securities outstanding (in thousands): Securities outstanding, beginning of period 89,181 45,243 2,763 1,845 Add (deduct): Securities sold 57,273 11,420 1, Securities issued on merger Reinvested from distributions 1, Securities redeemed (8,504) (4,693) (424) (314) Securities outstanding, end of period 139,441 52,666 3,983 1,759 See accompanying notes.

4 INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017 STATEMENTS OF CASH FLOWS for the six-month periods ended September 30 (unaudited) (in $ 000 except when stated) Cash flows from operating activities a2017 b2016 Increase (decrease) in net assets attributable to securityholders from operations (11,621) 25,328 Less non-cash impact of: Net realized (gain) loss (1,176) (2,493) Change in net unrealized (gain) loss 31,103 (14,129) Distributions received from Underlying Funds (5,819) (2,856) Adjustments for: Proceeds from sale and maturity of investments 263, ,194 Purchases of investments (869,166) (237,470) (Increase) decrease in accounts receivable and other assets (3,731) (253) Increase (decrease) in accounts payable and other liabilities Net cash provided by (used in) operating activities (596,649) (70,676) Cash flows from financing activities: Proceeds from securities issued 691, ,760 Proceeds from securities issued on merger - - Payments on redemption of securities (102,369) (59,622) Distributions paid net of reinvestments (297) (178) Net cash provided by (used in) financing activities 588,606 79,960 Increase (decrease) in cash and cash equivalents (8,043) 9,284 Cash and cash equivalents at beginning of period 40,338 8,349 Effect of exchange rate fluctuations on cash and cash equivalents Cash and cash equivalents, end of period 32,319 17,646 Cash 10,519 1,946 Cash equivalents 21,800 15,700 Bank indebtedness - - Supplementary disclosures on cash flow from operating activities: 32,319 17,646 Dividends received net of withholding taxes Interest received net of withholding taxes 16,221 9,272 Interest paid - - See accompanying notes.

5 INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017 SCHEDULE OF INVESTMENTS as at September 30, 2017 (unaudited) No. of Units, Fair Shares, or Cost Value Country Sector Par Value (CAD$ 000) (CAD$ 000) BONDS 407 International Inc. 3.43% MTN Canada Corporate 1,200,000 1,199 1, International Inc. 4.45% Callable 2041 Canada Corporate 3,150,000 3,583 3, International Inc. 3.60% Callable Canada Corporate 7,200,000 7,146 6,922 Aeroports de Montreal 3.92% Canada Corporate 2,000,000 2,290 2,168 Aeroports de Montreal 3.92% Series M Callable 2044 Canada Corporate 2,500,000 2,704 2,721 Agence Francaise de Developpement 2.00% EMTN France Corporate USD 500, Agence Francaise de Developpement 1.38% France Corporate USD 3,000,000 3,720 3,712 AGT Food and Ingredients Inc. 5.88% Callable 2018 Canada Corporate 500, AGT Ltd. 8.80% Callable Canada Corporate 511, Aimia Inc. 5.60% Callable MTN Canada Corporate 4,520,000 4,791 4,509 Algonquin Power & Utilities Corp. 4.65% Canada Corporate 1,475,000 1,586 1,576 Algonquin Power & Utilities Corp. 4.09% Callable Canada Corporate 3,900,000 3,922 3,998 Allied Properties REIT 3.75% Series A Canada Corporate 1,400,000 1,442 1,429 Allied Properties REIT 3.93% Series B Canada Corporate 850, Allied Properties REIT 3.64% Callable 2025 Canada Corporate 8,264,000 8,135 7,967 AltaLink LP 4.87% Canada Corporate 4,300,000 5,068 5,014 AltaLink LP 3.72% Callable MTN Canada Corporate 2,000,000 2,048 1,972 AT&T Inc. 3.83% United States Corporate 5,796,000 6,106 6,007 AT&T Inc. 4.85% United States Corporate 4,968,000 4,768 4,805 Bank Nederlandse Gemeenten NV 1.88% Netherlands Corporate USD 2,300,000 3,118 2,880 Bank of Montreal 1.88% DPNT Canada Corporate 500, Bank of Montreal 1.61% DPNT Canada Corporate 2,900,000 2,883 2,815 Bank of Montreal 2.27% DPNT Canada Corporate 1,300,000 1,300 1,289 Bank of Montreal 2.70% DPNT Canada Corporate 7,000,000 6,999 6,970 Bank of Montreal 3.12% MTN Canada Corporate 3,775,000 3,841 3,819 Bank of Montreal 3.32% Canada Corporate 4,050,000 4,130 4,118 Bank of Montreal F/R Callable 2022 Canada Corporate 6,950,000 6,950 6,803 The Bank of Nova Scotia 1.33% DPNT Canada Corporate 500, The Bank of Nova Scotia 2.29% Canada Corporate 7,000,000 6,890 6,795 The Bank of Nova Scotia 3.37% Callable 2020 Canada Corporate 2,300,000 2,351 2,343 Baytex Energy Corp. 6.63% Callable 2018 Canada Corporate 1,053, ,010 BC Telecom Inc. 9.65% Canada Corporate 599, Bell Canada 5.52% Canada Corporate 3,000,000 3,195 3,143 Bell Canada 2.70% Callable Canada Corporate 1,500,000 1,470 1,473 Bell Canada 3.60% Callable MTN Canada Corporate 3,300,000 3,290 3,310 Bell Canada 4.45% Callable Canada Corporate 5,700,000 5,730 5,606 BMW Canada Auto Trust 1.87% Canada Corporate 1,000,000 1, BNP Paribas SA 2.88% EMTN France Corporate EUR 250, BP Capital Markets PLC 2.99% EMTN United Kingdom Corporate EUR 250, Bruce Power LP 3.00% Callable 2024 Canada Corporate 572, Bruce Power LP 4.01% Callable 2029 Canada Corporate 5,300,000 5,401 5,383 Bundesrepublik Deutschland 2.50% Germany Foreign Governments EUR 500, Caisse d Amortissement de la Dette Sociale 3.38% France Corporate USD 1,100,000 1,560 1,453 Calfrac Well Services Ltd. 7.50% Callable Canada Corporate USD 425, Cameco Corp. 5.67% Series D Canada Corporate 1,100,000 1,177 1,149 Canada Housing Trust No % Canada Federal Government 1,740,000 1,749 1,745 Canada Housing Trust No % Canada Federal Government 17,000,000 17,118 17,144 Canada Housing Trust No % Canada Federal Government 28,000,000 27,665 26,674 Canadian Credit Card Trust II 1.99% Series B Canada Corporate 3,500,000 3,500 3,498 Canadian Credit Card Trust II 1.99% Series C Canada Corporate 500, Canadian Energy Services & Technology Corp. 7.38% Callable 2017 Canada Corporate 150, Canadian Imperial Bank of Commerce 1.90% DPNT Canada Corporate 1,800,000 1,801 1,777 Canadian Imperial Bank of Commerce 2.04% DPNT Canada Corporate 350, Canadian Imperial Bank of Commerce 3.00% Callable 2019 Canada Corporate 1,600,000 1,617 1,615 Canadian Imperial Bank of Commerce 3.42% Callable 2021 Canada Corporate 2,000,000 2,049 2,040 Canadian Natural Resources Ltd. 2.89% Callable MTN Canada Corporate 1,250,000 1,256 1,259 Canadian Natural Resources Ltd. 4.85% Callable MTN Canada Corporate 2,700,000 2,700 2,589 Canadian Real Estate Investment Trust 4.32% Canada Corporate 700, Canadian Real Estate Investment Trust 2.95% Callable 2022 Canada Corporate 2,600,000 2,600 2,543 Canadian Western Bank 2.79% DPNT Canada Corporate 800, Canadian Western Bank F/R Callable 2019 Canada Corporate 1,392,000 1,414 1,405 Capital Power Corp. 4.28% Callable 2024 Canada Corporate 5,350,000 5,350 5,394 Central 1 Credit Union F/R Callable Canada Corporate 3,200,000 3,202 3,181 Chartwell Retirement Residences 3.79% Callable 2023 Canada Corporate 4,400,000 4,400 4,355 CHIP Mortgage Trust 2.33% Canada Corporate 4,900,000 4,879 4,807 Choice Properties Real Estate Investment Trust 3.20% Canada Corporate 1,000,000 1,046 1,005 Choice Properties Real Estate Investment Trust 4.90% Callable 2023 Canada Corporate 2,225,000 2,476 2,416 CI Financial Corp. 2.65% Callable Canada Corporate 750, CI Financial Corp. 2.78% MTN Canada Corporate 300, CI Financial Corp. 3.90% Callable Canada Corporate 1,000,000 1,000 1,007 CIBC Capital Trust F/R Callable 2019 Canada Corporate 3,000,000 3,484 3,364 Citigroup Inc. 4.09% Series MPLE United States Corporate 5,385,000 5,487 5,515

6 INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017 SCHEDULE OF INVESTMENTS (continued) as at September 30, 2017 (unaudited) No. of Units, Fair Shares, or Cost Value Country Sector Par Value (CAD$ 000) (CAD$ 000) BONDS (continued) City of Montreal 3.50% Canada Municipal Governments 10,000,000 10,511 10,516 City of Montreal 3.15% Canada Municipal Governments 3,500,000 3,492 3,335 City of Toronto 3.50% Canada Municipal Governments 4,300,000 4,634 4,513 City of Toronto 3.50% Canada Municipal Governments 6,400,000 6,532 6,451 CMLS Issuer Corp. 3.42% Series Class A2 Canada Corporate 2,550,000 2,540 2,498 CNH Capital Canada Receivables Trust 2.50% Series 17-1 Class B Canada Corporate 786, Cogeco Communications Inc. 4.93% Canada Corporate 100, Cominar Real Estate Investment Trust 4.16% Series 9 Canada Corporate 1,800,000 1,814 1,787 Cominar Real Estate Investment Trust 4.25% Canada Corporate 1,300,000 1,329 1,273 CPPIB Capital Inc. 1.10% Series C Canada Corporate 8,700,000 8,653 8,617 Crew Energy Inc. 6.50% Callable Canada Corporate 1,200,000 1,200 1,166 Crombie Real Estate Investment Trust 2.78% Canada Corporate 1,250,000 1,236 1,228 Crombie Real Estate Investment Trust 3.96% Canada Corporate 3,500,000 3,555 3,512 CT Real Estate Investment Trust 3.53% Series B Callable Canada Corporate 7,583,000 7,705 7,565 CT Real Estate Investment Trust 3.47% Series E Callable Canada Corporate 2,400,000 2,400 2,325 CU Inc. 3.81% Canada Corporate 9,235,000 9,375 9,231 CU Inc. 3.76% Callable 2046 Canada Corporate 3,140,000 3,227 3,101 Daimler Canada Finance Inc. 2.23% EMTN Germany Corporate 500, Durham District School Board 6.75% Canada Provincial Governments 1,750,000 2,127 1,917 The Empire Life Insurance Co. F/R Callable 2023 Canada Corporate 1,000,000 1,000 1,007 Enbridge Gas Distribution Inc. 2.50% Callable 2026 Canada Corporate 1,100,000 1,099 1,059 Enbridge Inc. 3.20% Callable 2027 Canada Corporate 2,200,000 2,199 2,097 Enbridge Inc. 4.57% Canada Corporate 6,300,000 6,502 6,073 Enbridge Inc. 5.37% Callable 2027 Canada Corporate 5,300,000 5,300 5,361 Enbridge Pipelines Inc. 4.55% Callable 2045 MTN Canada Corporate 2,393,000 2,542 2,490 Enbridge Pipelines Inc. 4.13% Callable MTN Canada Corporate 3,834,000 3,902 3,732 EnerCare Solutions Inc. 4.60% Callable Canada Corporate 7,000,000 7,400 7,285 EnerCare Solutions Inc. 3.99% Callable 2023 Canada Corporate 7,600,000 7,678 7,721 EPCOR Utilities Inc. 6.80% Callable Canada Corporate 550, Equitable Bank F/R DPNT Canada Corporate 1,000,000 1, European Investment Bank 1.00% Supranational Supranational USD 1,000,000 1,014 1,246 European Investment Bank 2.13% Reg S Supranational Supranational USD 1,000,000 1,336 1,258 First Capital Realty Inc. 4.79% Canada Corporate 2,980,000 3,278 3,212 First Capital Realty Inc. 3.60% Callable 2026 Canada Corporate 3,850,000 3,930 3,787 First Capital Realty Inc. 3.75% Callable 2027 Canada Corporate 7,000,000 7,000 6,865 First National Financial Corp. 4.01% Canada Mortgage Backed 2,150,000 2,146 2,140 FMS Wertmanagement 1.25% Germany Corporate USD 600, Ford Auto Securitization Trust 1.77% Canada Mortgage Backed 1,300,000 1,300 1,267 Ford Credit Canada Co. 3.14% United States Corporate 2,100,000 2,153 2,125 Ford Credit Canada Co. 3.35% United States Corporate 2,000,000 2,000 2,011 Ford Floorplan Auto Securitization Trust 2.20% Canada Corporate 1,400,000 1,400 1,395 FortisAlberta Inc. 4.27% MTN Canada Corporate 1,950,000 2,129 2,098 FortisBC Inc. 3.38% Callable 2044 MTN Canada Corporate 1,890,000 1,850 1,758 FortisBC Energy Inc. 3.78% Callable MTN Canada Corporate 1,585,000 1,614 1,580 France Government OAT 1.00% France Foreign Governments EUR 900,000 1,351 1,352 France Government OAT 3.25% France Foreign Governments EUR 2,450,000 4,750 4,812 General Motors Financial of Canada Ltd. 3.08% United States Corporate 2,100,000 2,135 2,118 Genworth MI Canada Inc. 4.24% Canada Corporate 4,788,000 5,026 4,801 Gibson Energy Inc. 5.38% Callable 2017 Canada Corporate 1,238,000 1,157 1,259 Gibson Energy Inc. 5.25% Callable 2020 Canada Corporate 900, Gibson Energy Inc. 5.25% Callable 2020 Canada Corporate 1,000,000 1,000 1,008 Glacier Credit Card Trust 3.07% Canada Corporate 2,600,000 2,611 2,609 Glacier Credit Card Trust 3.24% Canada Corporate 1,074,000 1,087 1,077 Glacier Credit Card Trust 3.30% Canada Corporate 6,300,000 6,303 6,108 The Goldman Sachs Group Inc. 3.55% United States Corporate 5,000,000 5,196 5,163 The Goldman Sachs Group Inc. 2.43% Callable United States Corporate 2,300,000 2,306 2,251 Government of Australia 4.25% Australia Foreign Governments AUD 5,150,000 5,650 5,621 Government of Canada 1.75% Canada Federal Government 3,125,000 3,181 3,138 Government of Canada 3.75% Canada Federal Government 6,063,000 6,549 6,286 Government of Canada 1.75% Canada Federal Government 11,420,000 11,636 11,470 Government of Canada 1.50% Canada Federal Government 600, Government of Canada 3.50% Canada Federal Government 6,300,000 6,896 6,617 Government of Canada 0.75% Canada Federal Government 9,000,000 8,913 8,788 Government of Canada 0.75% Canada Federal Government 9,575,000 9,547 9,301 Government of Canada 0.75% Canada Federal Government 5,250,000 5,057 5,072 Government of Canada 0.50% Canada Federal Government 13,500,000 13,121 12,808 Government of Canada 2.75% Canada Federal Government 1,500,000 1,630 1,569 Government of Canada 2.50% Canada Federal Government 1,100,000 1,182 1,141 Government of Canada 2.25% Canada Federal Government 7,184,000 7,659 7,317 Government of Canada 1.50% Canada Federal Government 7,100,000 6,974 6,790 Government of Canada 1.00% Canada Federal Government 2,000,000 1,815 1,809 Government of Canada 2.75% Canada Federal Government 4,430,000 4,833 4,698

7 INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017 SCHEDULE OF INVESTMENTS (continued) as at September 30, 2017 (unaudited) No. of Units, Fair Shares, or Cost Value Country Sector Par Value (CAD$ 000) (CAD$ 000) BONDS (continued) Government of France 0.50% France Foreign Governments EUR 2,300,000 3,249 3,372 Government of France 1.50% France Foreign Governments EUR 2,400,000 3,482 3,703 Government of Japan 10 Year Bond 0.80% Series 327 Japan Foreign Governments JPY 410,000,000 5,456 4,755 Government of Japan 1.90% Japan Foreign Governments JPY 125,000,000 1,419 1,591 Government of Japan 10 Year Bond 0.30% Japan Foreign Governments JPY 900,000,000 10,894 10,230 Government of Japan 1.40% Japan Foreign Governments JPY 537,600,000 6,586 6,925 Government of Japan 2.00% Japan Foreign Governments JPY 428,000,000 5,872 5,961 Government of Japan 2.00% Japan Foreign Governments JPY 362,400,000 4,612 5,153 Government of Japan 30 Year Bond 1.40% Japan Foreign Governments JPY 727,400,000 10,526 9,238 Government of Netherlands 2.75% Netherlands Foreign Governments EUR 850,000 1,763 1,696 Government of Norway 2.00% Norway Foreign Governments NOK 2,500, Government of Spain 5.15% Spain Foreign Governments EUR 2,510,000 5,504 5,385 Government of Sweden 3.50% Sweden Foreign Governments SEK 3,200, Government of Sweden 1.00% Series 1059 Sweden Foreign Governments SEK 4,000, Granite REIT Holdings LP 3.87% Callable 2023 Canada Corporate 8,650,000 8,744 8,625 H&R Real Estate Investment Trust 3.37% Callable 2023 Canada Corporate 6,575,000 6,590 6,450 Home Trust Co. 3.40% DPNT Canada Corporate 9,310,000 9,479 9,178 Honda Canada Finance Inc. 1.82% Series 16-4 Canada Corporate 7,600,000 7,504 7,415 HSBC Bank Canada 2.17% Canada Corporate 2,000,000 2,000 1,964 HSBC Holdings PLC 3.20% United Kingdom Corporate 850, Hydro-Quebec 6.50% Canada Provincial Governments 4,000,000 5,960 5,689 Institutional Mortgage Securities Canada Inc. 4.33% Canada Mortgage Backed 3,562,000 3,605 3,565 Institutional Mortgage Securities Canada Inc. 3.63% Canada Mortgage Backed 1,100,000 1,091 1,075 Institutional Mortgage Securities Canada Inc. 2.94% Callable Canada Mortgage Backed 3,621,000 3,460 3,328 Institutional Mortgage Securities Canada Inc. 3.60% Series Class C Callable Canada Mortgage Backed 1,352,000 1,289 1,250 Institutional Mortgage Securities Canada Inc. 3.77% Series Class D Callable Canada Mortgage Backed 730, Inter Pipeline Ltd. 2.73% Callable 2024 Canada Corporate 1,500,000 1,500 1,458 Inter Pipeline Ltd. 3.17% Callable 2024 MTN Canada Corporate 3,000,000 3,011 2,958 Inter Pipeline Ltd. 3.48% Callable 2026 Canada Corporate 3,225,000 3,240 3,182 Iron Mountain Canada Operations ULC 5.38% Callable 2019 United States Corporate 600, Italy Buoni Poliennali Del Tesoro 0.45% Italy Foreign Governments EUR 10,650,000 15,467 15,769 Italy Buoni Poliennali Del Tesoro 4.75% Italy Foreign Governments EUR 6,011,000 10,989 10,695 Italy Buoni Poliennali Del Tesoro 2.20% Italy Foreign Governments EUR 5,300,000 7,952 7,888 Italy Buoni Poliennali Del Tesoro 2.70% Italy Foreign Governments EUR 2,000,000 2,698 2,641 Japan Finance ORG Municipal 1.38% Japan Foreign Governments USD 500, Government of Japan 10 Year Bond 0.10% Japan Foreign Governments JPY 1,140,000,000 13,759 12,726 JPMorgan Chase & Co. 3.19% United States Corporate 6,000,000 6,204 6,154 Kingdom of Belgium 0.80% Belgium Foreign Governments EUR 1,100,000 1,619 1,675 Kingdom of Sweden 2.50% Sweden Foreign Governments SEK 1,000, Kommunalbanken AS 1.13% Reg S Norway Corporate USD 900,000 1,181 1,121 Kommunalbanken AS 1.63% Reg S Norway Foreign Governments USD 1,300,000 1,744 1,618 KommuneKredit 1.13% Denmark Foreign Governments USD 4,945,000 6,095 6,163 Kreditanstalt fuer Wiederaufbau 1.88% Germany Foreign Governments USD 600, Kreditanstalt fuer Wiederaufbau 2.05% Germany Foreign Governments JPY 58,000, Kreditanstalt fuer Wiederaufbau 2.60% Germany Foreign Governments JPY 80,000, ,269 Laurentian Bank of Canada 2.50% DPNT Canada Corporate 2,500,000 2,474 2,498 Laurentian Bank of Canada 2.75% DPNT Canada Corporate 5,062,000 5,119 5,058 Laurentian Bank of Canada 3.00% Canada Corporate 1,100,000 1,098 1,097 Laurentian Bank of Canada F/R Callable 2022 Canada Corporate 4,100,000 4,100 4,113 Loblaw Companies Ltd. 6.50% Callable Canada Corporate 450, Manulife Bank of Canada 2.08% Canada Corporate 800, MCAP CMBS 3.20% Class C Series Canada Corporate 2,000,000 1,986 1,974 MCAP Commercial LP 3.96% Canada Corporate 12,619,000 12,609 12,529 MEG Energy Corp. 6.38% Callable A Canada Corporate USD 325, Mexican Bonos 8.00% Mexico Foreign Governments MXN 47,300,000 3,804 3,449 Morgan Stanley 3.00% Series MPLE United States Corporate 2,400,000 2,416 2,375 Morguard Corp. 4.33% Callable 2022 Canada Corporate 5,100,000 5,100 5,142 Municipal Finance Authority of British Columbia 2.50% Canada Municipal Governments 5,700,000 5,743 5,574 Municipal Finance Authority of British Columbia 4.95% Canada Municipal Governments 7,300,000 8,622 8,611 North West Redwater Partnership/NWR Financing Co. Ltd. 4.15% Canada Corporate 50, Ontario Power Generation Inc. 3.32% Callable 2027 Canada Corporate 5,000,000 5,000 5,043 OPB Finance Trust 1.88% Canada Provincial Governments 3,890,000 3,833 3,820 OPB Finance Trust 2.98% Canada Provincial Governments 3,500,000 3,507 3,493 Parkland Fuel Corp. 5.63% Callable 2020 Canada Corporate 800, Pembina Pipeline Corp. 3.77% Canada Corporate 1,590,000 1,670 1,643 Pembina Pipeline Corp. 3.54% Callable MTN Canada Corporate 4,950,000 5,030 4,957 Pembina Pipeline Corp. 3.71% Callable 2026 Canada Corporate 400, Pembina Pipeline Corp. 4.24% Callable 2027 MTN Canada Corporate 2,830,000 2,966 2,900 Pembina Pipeline Corp. 4.75% Canada Corporate 800, Pembina Pipeline Corp. 4.74% Callable 2046 MTN Canada Corporate 1,000,

8 INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017 SCHEDULE OF INVESTMENTS (continued) as at September 30, 2017 (unaudited) No. of Units, Fair Shares, or Cost Value Country Sector Par Value (CAD$ 000) (CAD$ 000) BONDS (continued) Penske Truck Leasing Canada Inc. 2.95% Canada Corporate 800, PepsiCo Inc. 3.13% Callable United States Corporate USD 330, PepsiCo Inc. 2.15% Callable 2024 United States Corporate 900, Poland Government Bond 2.50% Poland Foreign Governments PLN 26,000,000 8,539 8,363 Postmedia Network Inc. 8.25% Canada Corporate 22, Power Corp. of Canada 8.57% Canada Corporate 500, Province of Alberta 2.20% Canada Provincial Governments 7,500,000 7,312 7,179 Province of Alberta 3.05% Canada Provincial Governments 3,000,000 3,043 2,830 Province of British Columbia 6.35% Canada Provincial Governments 10,000,000 14,463 13,764 Province of Manitoba 4.65% Canada Provincial Governments 7,200,000 8,869 8,632 Province of Ontario 3.15% Canada Provincial Governments 13,200,000 14,128 13,765 Province of Ontario 2.85% Canada Provincial Governments 14,200,000 14,878 14,577 Province of Ontario 2.60% Canada Provincial Governments 9,100,000 9,231 9,084 Province of Ontario 2.60% Canada Provincial Governments 25,000,000 25,173 24,616 Province of Ontario 6.50% Canada Provincial Governments 16,800,000 23,245 22,570 Province of Ontario 5.85% Canada Provincial Governments 6,700,000 9,352 8,933 Province of Quebec 3.50% Canada Provincial Governments 3,900,000 4,260 4,137 Province of Quebec 9.38% Canada Provincial Governments 7,100,000 10,138 9,576 Province of Quebec 6.00% Canada Provincial Governments 11,400,000 15,313 14,885 Province of Quebec 6.25% Canada Provincial Governments 5,000,000 6,946 6,857 Province of Quebec 5.75% Canada Provincial Governments 7,500,000 10,315 10,217 PSP Capital Inc. 2.09% Series 9 Canada Federal Government 2,600,000 2,600 2,550 Quebecor Media Inc. 6.63% Canada Corporate 625, The Regional Municipality of Peel 4.25% Canada Municipal Governments 2,600,000 2,928 2,889 Regional Municipality of York 4.05% Canada Municipal Governments 8,837,000 9,666 9,584 Republic of South Africa 7.00% South Africa Foreign Governments ZAR 24,600,000 1,957 1,889 RioCan Real Estate Investment Trust 2.19% Canada Corporate 400, RioCan Real Estate Investment Trust 2.19% Canada Corporate 2,000,000 2,000 1,965 RioCan Real Estate Investment Trust 2.83% Canada Corporate 2,550,000 2,569 2,523 RioCan Real Estate Investment Trust 3.29% Series W Canada Corporate 1,850,000 1,896 1,841 Rogers Communications Inc. 5.34% Callable Canada Corporate 2,000,000 2,241 2,191 Rogers Communications Inc. 6.68% Canada Corporate 4,316,000 5,571 5,598 Royal Bank of Canada 2.89% DPNT Canada Corporate 1,500,000 1,547 1,517 Royal Bank of Canada 2.86% DPNT Canada Corporate 800, Royal Bank of Canada 2.03% DPNT Canada Corporate 6,700,000 6,706 6,646 Royal Bank of Canada 2.48% Callable 2020 Canada Corporate 4,850,000 4,832 4,831 Royal Bank of Canada 3.45% Callable 2021 Canada Corporate 6,300,000 6,493 6,426 Russel Metals Inc. 6.00% Callable 2017 Canada Corporate 1,491,000 1,504 1,545 Shaw Communications Inc. 5.50% Canada Corporate 3,185,000 3,562 3,470 Shaw Communications Inc. 3.80% Callable Canada Corporate 2,950,000 3,025 2,968 Shaw Communications Inc. 6.75% Canada Corporate 8,300,000 10,247 10,232 Singapore Government Bond 3.00% Singapore Foreign Governments SGD 750, Smart Real Estate Investment Trust 2.88% Canada Corporate 500, Smart Real Estate Investment Trust 3.73% Canada Corporate 350, Smart Real Estate Investment Trust 3.56% Canada Corporate 1,000,000 1, Smart Real Estate Investment Trust 3.44% Callable Canada Corporate 750, South Africa Government Bond 6.75% South Africa Foreign Governments ZAR 19,200,000 1,899 1,729 Spain Government Bond 2.75% Spain Foreign Governments EUR 3,400,000 5,390 5,646 Spain Government Bond 1.95% Spain Foreign Governments EUR 2,300,000 3,618 3,573 Superior Plus Corp. 6.00% Conv. Callable 2017 Canada Corporate 150, Superior Plus LP 6.50% Callable 2017 Canada Corporate 360, TD Capital Trust IV 9.52% Perpetual ) Callable 2019 Canada Corporate 11,126,000 13,447 12,388 TELUS Corp. 3.35% Callable MTN Canada Corporate 3,710,000 3,800 3,766 TELUS Corp. 4.85% Series SP Canada Corporate 5,150,000 5,329 5,273 TELUS Corp. 4.70% Callable 2047 Canada Corporate 600, Toronto Hydro Corp. 3.55% Callable 2045 Canada Corporate 2,450,000 2,397 2,334 The Toronto-Dominion Bank 2.17% DPNT Canada Corporate 500, The Toronto-Dominion Bank 1.99% Canada Corporate 5,900,000 5,900 5,799 The Toronto-Dominion Bank 2.69% Callable 2020 MTN Canada Corporate 2,570,000 2,580 2,574 The Toronto-Dominion Bank 2.98% Callable 2020 Canada Corporate 3,700,000 3,722 3,734 The Toronto-Dominion Bank F/R Callable 2024 Canada Corporate 7,000,000 7,000 6,927 The Toronto-Dominion Bank 4.86% Callable 2026 Canada Corporate 5,207,000 5,650 5,688 Toyota Credit Canada Inc. 1.75% Canada Corporate 250, TransAlta Corp. 7.30% Canada Corporate 100, TransCanada PipeLines Ltd. 3.69% Canada Corporate 1,245,000 1,326 1,309 TransCanada PipeLines Ltd. 3.39% Callable 2027 Canada Corporate 1,300,000 1,299 1,311 TransCanada PipeLines Ltd. 4.55% Canada Corporate 7,700,000 8,210 7,995 TransCanada Trust F/R Callable 2027 Canada Corporate 8,550,000 8,553 8,474 Transcontinental Inc. 3.90% Canada Corporate 400, Trilogy Energy Corp. 7.25% Callable Canada Corporate 345, Union Gas Ltd. 2.76% Callable MTN Canada Corporate 1,500,000 1,555 1,526 Union Gas Ltd. 5.20% Callable Canada Corporate 3,500,000 4,310 4,226 1 The issuer of this security is related to the Manager of the Fund.

9 INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017 SCHEDULE OF INVESTMENTS (continued) as at September 30, 2017 (unaudited) No. of Units, Fair Shares, or Cost Value Country Sector Par Value (CAD$ 000) (CAD$ 000) BONDS (continued) United Kingdom Treasury 1.75% United Kingdom Foreign Governments GBP 1,400,000 2,413 2,398 United Kingdom Treasury 2.00% United Kingdom Foreign Governments GBP 380, United Kingdom Treasury 4.00% United Kingdom Foreign Governments GBP 1,920,000 3,706 3,681 United Kingdom Treasury 2.25% United Kingdom Foreign Governments GBP 600,000 1,087 1,082 United Kingdom Treasury 4.25% United Kingdom Foreign Governments GBP 1,800,000 3,773 3,837 United Kingdom Treasury 4.50% United Kingdom Foreign Governments GBP 574,562 1,365 1,342 United Kingdom Treasury 3.25% United Kingdom Foreign Governments GBP 400, United Kingdom Treasury 3.50% United Kingdom Foreign Governments GBP 2,940,000 6,797 6,536 United Kingdom Treasury 4.25% United Kingdom Foreign Governments GBP 800,000 2,005 2,031 United States Treasury Note/Bond 0.63% United States Foreign Governments USD 2,350,000 3,035 2,931 United States Treasury 0.88% United States Foreign Governments USD 11,950,000 15,863 14,890 United States Treasury Note/Bond 1.13% United States Foreign Governments USD 6,000,000 7,507 7,481 United States Treasury Note/Bond 1.50% United States Foreign Governments USD 7,900,000 9,643 9,873 United States Treasury Note/Bond 1.38% United States Foreign Governments USD 11,600,000 15,282 14,476 United States Treasury Note/Bond 2.75% United States Foreign Governments USD 6,600,000 8,590 8,387 United States Treasury Note/Bond 1.50% United States Foreign Governments USD 6,150,000 8,199 7,675 United States Treasury Note/Bond 1.38% United States Foreign Governments USD 6,600,000 8,918 8,205 United States Treasury Note/Bond 1.38% United States Foreign Governments USD 2,600,000 3,362 3,223 United States Treasury Note/Bond 3.63% United States Foreign Governments USD 4,100,000 5,997 5,443 United States Treasury Note/Bond 2.00% United States Foreign Governments USD 5,300,000 7,227 6,668 United States Treasury Note/Bond 1.88% United States Foreign Governments USD 6,850,000 9,177 8,568 United States Treasury Note/Bond 1.75% United States Foreign Governments USD 6,700,000 8,835 8,316 United States Treasury Note/Bond 1.63% United States Foreign Governments USD 11,800,000 15,169 14,412 United States Treasury 2.50% United States Foreign Governments USD 4,000,000 5,435 5,107 United States Treasury 1.63% United States Foreign Governments USD 11,449,200 14,106 13,556 United States Treasury 2.38% United States Foreign Governments USD 2,580,000 3,194 3,234 United States Treasury 3.50% United States Foreign Governments USD 1,150,000 1,692 1,622 United States Treasury Note/Bond 4.25% United States Foreign Governments USD 3,250,000 4,792 5,077 United States Treasury Note/Bond 2.75% United States Foreign Governments USD 2,230,000 2,810 2,752 United States Treasury 3.00% United States Foreign Governments USD 4,550,000 6,252 5,846 United States Treasury Note/Bond 2.88% United States Foreign Governments USD 8,750,000 11,240 10,962 Veresen Inc. 3.43% MTN Canada Corporate 5,450,000 5,510 5,564 Videotron Ltee 5.63% Callable 2025 Canada Corporate 1,500,000 1,525 1,613 Wells Fargo & Co. 2.09% Series MPLE United States Corporate 1,200,000 1,176 1,171 Westcoast Energy Inc. 8.50% Callable Canada Corporate 1,100,000 1,347 1,162 Westcoast Energy Inc. 4.79% Canada Corporate 3,600,000 3,791 3,777 Western Energy Services Corp. 7.88% Callable 2018 Canada Corporate 150, WTH Car Rental ULC 2.97% Sinkable Canada Corporate 2,777,000 2,753 2,724 York Region District School Board 6.45% Canada Provincial Governments 715, ,336,631 1,308,514 MUTUAL FUNDS 2 IG Putnam U.S. High Yield Income Fund Series P n/a Mutual Funds 10,054, , ,894 2 Investors Mortgage and Short Term Income Fund Series P n/a Mutual Funds 2,367,798 25,650 25,329 2 Investors Real Property Fund Series P n/a Mutual Funds 13,317, , , , ,391 EQUITIES Cardinal Energy Ltd. Canada Energy 364,000 2,408 1,718 Crescent Point Energy Corp. Canada Energy 211,500 3,316 2,120 Journey Energy Inc. Canada Energy 63, Mirant Corp. Escrow Notes United States Utilities 50, Surge Energy Inc. Canada Energy 1,250,000 3,675 2,825 TORC Oil & Gas Ltd. Canada Energy 180,000 1,194 1,107 Veresen Inc. Canada Energy 122,000 1,570 2,284 Vermilion Energy Inc. Canada Energy 49,000 2,048 2,173 Whitecap Resources Inc. Canada Energy 350,000 3,655 3,395 Zargon Oil & Gas Ltd. Canada Energy 10, ,410 15,760 COMMISSIONS AND OTHER PORTFOLIO TRANSACTION COSTS (50) - TOTAL NON-DERIVATIVE INVESTMENTS 1,648,451 1,624,665 Net Assets (see asset composition): Total non-derivative investments 1,624,665 Cash and cash equivalents 32,319 Derivative assets (see schedule of derivative instruments) 742 Derivative liabilities (see schedule of derivative instruments) (1,141) Other net assets (liabilities) (172) 1,656,413 2 This Fund is managed by the Manager of the Fund.

10 INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, 2017 Schedule of Asset Composition as at September 30, 2017 (unaudited) PORTFOLIO ALLOCATION % of net assets Bonds 79.0 Mutual Funds 18.1 Equities 1.0 Cash and cash equivalents 2.0 Other net assets (liabilities) (0.1) Total BONDS SECTOR ALLOCATION Corporate 34.2 Foreign Governments 21.2 Provincial Governments 11.3 Federal Government 8.2 Municipal Governments 3.1 Other as at March 31, 2017 PORTFOLIO ALLOCATION % of net assets Bonds 78.2 Mutual Funds 18.2 Equities 1.0 Cash and cash equivalents 3.7 Other net assets (liabilities) (1.1) Total BONDS SECTOR ALLOCATION Corporate 32.7 Foreign Governments 22.0 Provincial Governments 11.4 Federal Government 8.4 Municipal Governments 2.8 Other Schedule of Derivative Instruments as at September 30, 2017 (unaudited) Schedule of Forward Currency Contracts Currency to Contract Currency to Current Unrealized Unrealized Counterparty Settlement be received costs be delivered fair value gains losses credit rating date (000) (CAD$ 000) (000) (CAD$ 000) (CAD$ 000) (CAD$ 000) AA CAD USD (7) AA ,000 CZK 1, USD 1, AA ,200 CZK USD AA ,000 CZK 2,312 1,852 USD 2, AA ,000 CZK 1, USD 1, AA ,910 EUR 5,804 4,650 USD 5,768 - (36) AA ,140 EUR 6,242 5,001 USD 6,114 - (128) AA ,100 EUR 3,099 2,483 USD 3, AA ,015 EUR 4,510 3,614 USD 4,452 - (58) AA ,450 EUR 3,635 2,913 USD 3,618 - (17) AA EUR USD (5) AA ,140 EUR 23,772 19,047 USD 23, AA GBP USD AA GBP USD AA ,000 JPY 10,307 8,258 USD 9,993 - (314) AA ,200 NOK 6,201 4,968 USD 6,146 - (55) AA ,340 SEK 8,850 7,091 USD 8,794 - (56) AA ,668 USD 5,826 5,838 AUD 5, AA ,664 USD 5, ,200 CZK 5, AA ,840 USD 2,296 1,700 EUR 2,507 - (211) AA USD 1, EUR 1,121 - (55) AA USD EUR (35) AA ,076 USD 1, EUR 1,344 - (1) AA ,167 USD 1, EUR 1,462 - (5) AA ,760 USD 2,196 1,490 EUR 2,200 - (4) AA ,785 USD 2,228 1,355 GBP 2,268 - (40) AA USD GBP (16) AA USD ,650 JPY AA USD ,200 JPY AA ,127 USD 2, ,000 JPY 2,665 - (10) AA ,128 USD 5,152 75,200 MXN 5, AA USD 378 1,100 PLN AA ,601 USD 4,494 28,670 SEK 4, AA USD SGD (2) AA ,000 ZAR USD (20) AA ,500 ZAR 3,234 2,592 USD 3,168 - (66) 742 (1,141) TOTAL DERIVATIVE ASSETS 742 TOTAL DERIVATIVE LIABILITIES (1,141)

11 NOTES TO THE INTERIM FINANCIAL STATEMENTS SEPTEMBER 30, ORGANIZATION OF THE POOL, FISCAL PERIODS AND GENERAL INFORMATION (a) Organization of the Pool The Pool is organized as an open-ended mutual fund trust established under the laws of Manitoba and governed by a Declaration of Trust. The address of the Pool s registered office is 447 Portage Avenue, Winnipeg, Manitoba, Canada. The Pool is authorized to issue an unlimited number of securities of multiple series. If issued, Series P securities are only available for purchase by other Investors Group Funds or other qualified investors. All series generally share in the operations of the Pool on a pro rata basis except for items that can be specifically attributed to one or more series. Distributions for each series may vary, partly due to the differences in expenses between the series. (b) Financial periods The Statements of Financial Position are presented as at September 30, 2017 and March 31, The Statements of Comprehensive Income, Statements of Changes in Financial Position and Statements of Cash Flows are for the six-month periods ended September 30, 2017 and The Schedule of Investments is presented as at September 30, Where a Pool or series of a Pool was established during either period, the information for the Pool or series is provided from inception date. (c) General information I.G. Investment Management, Ltd. is the Administrative Manager (or Manager), Portfolio Advisor and Trustee of the Pool. The Pool is distributed by Investors Group Financial Services Inc. and Investors Group Securities Inc. (collectively, the Distributors). These companies are, indirectly, wholly owned subsidiaries of IGM Financial Inc. IGM Financial Inc. is a subsidiary of Power Financial Corp. and Power Corporation of Canada. Companies related to Power Financial Corporation are therefore considered affiliates of the Trustee, the Manager and the Distributors. The Pool may invest in certain securities within the Power Group of Companies, subject to certain governance criteria, and these holdings, as at the end of the period, have been identified on the Schedule of Investments for the Pool. Any transactions during the periods were executed through market intermediaries and under prevailing market terms and conditions. 2. BASIS OF PREPARATION AND PRESENTATION These unaudited interim financial statements (financial statements) have been prepared in accordance with International Financial Reporting Standards (IFRS), including International Accounting Standard 34 Interim Financial Reporting (IAS 34), as issued by the International Accounting Standards Board (IASB). These financial statements were prepared using the same accounting policies, critical judgments and estimates as applied in the Pool s most recent audited annual financial statements for the year ended March 31, A summary of the Pool s significant accounting policies under IFRS is presented in Note 3. These financial statements are presented in Canadian dollars, which is the Pool s functional currency, and rounded to the nearest thousand unless otherwise indicated. These financial statements are prepared on a going concern basis using the historical cost basis, except for financial assets and liabilities that have been measured at fair value. These financial statements were authorized for issue by the Manager on November 9, Standards issued but not yet effective for the current accounting year are described in Note SIGNIFICANT ACCOUNTING POLICIES (a) Financial instruments Investments include financial assets and liabilities such as debt and equity securities, openended investment funds and derivatives. The Pool classifies and measures financial instruments in accordance with IFRS 9 Financial Instruments (IFRS 9). Upon initial recognition, financial instruments are classified as fair value through profit or loss (FVTPL). All financial assets and liabilities are recognized in the Statement of Financial Position when the Pool becomes a party to the contractual requirements of the instrument. Financial instruments are derecognized when the right to receive cash flows from the instrument has expired or the Pool has transferred substantially all risks and rewards of ownership. As such, investment purchase and sale transactions are recorded as of the trade date. Financial instruments are subsequently measured as FVTPL with changes in fair value recognized in the Statement of Comprehensive Income. The cost of investments (cost) is based on the weighted average cost of investments and excludes commissions and other portfolio transaction costs, which are separately reported in the Statement of Comprehensive Income. Realized gains and losses on disposition, including foreign exchange gains or losses on such investments, are determined based on the cost of investments. Gains and losses arising from changes in the fair value of the investments are included in the Statement of Comprehensive Income for the period in which they arise. Gains and losses realized on certain derivatives, including interest rate and currency swaps, and futures are reported as Income (loss) from derivatives within the Statement of Comprehensive Income. The Pool accounts for its holdings in unlisted open-ended investment funds at FVTPL. The Pool has concluded that unlisted open-ended investment funds in which it invests do not meet the definition of structured entities. The Pool s investment in unlisted open-ended funds, if any, is presented in the Schedule of Investments at fair value which represents the Pool s maximum exposure on these investments. (b) Fair value measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Pool s valuation policies are as follows: (i) Equity securities, fixed-income securities and other investment funds Fair value for securities listed on a public securities exchange or traded on an over-thecounter market is determined as the last traded market price or close price recorded by the security exchange on which the security is principally traded, where the close price falls within the bid-ask spread of the security. In situations where the last traded market price is not within the bid-ask spread, the Manager selects the point within the bid-ask spread that is most representative of fair value. Fair value of fixed-income securities includes consideration of the creditworthiness of the issuer. Investments in securities of another investment fund are valued at the net asset value per security calculated in accordance with the offering documents of such investment fund or as reported by that fund s manager. Unlisted or non-exchange traded securities, or securities for which a last traded market price is unavailable or securities for which market quotations are, in the Manager s opinion, inaccurate, unreliable or not reflective of all available material information, are valued at their estimated fair value, determined by using appropriate and accepted industry valuation techniques including valuation models. The estimated fair value of a security determined using valuation models requires the use of inputs and assumptions based on observable market data including volatility and other applicable rates or prices. In limited circumstances, the estimated fair value of a security may be determined using valuation techniques that are not supported by observable market data. (ii) Futures and swaps contracts Futures and swaps contracts are valued at the gain or loss that would be realized upon closure of the contract. The values for such contracts fluctuate and are best determined at the settlement price established each day by the board of trade or exchange on which the contracts are traded. Margin accounts represent margin deposits held with brokers in respect of open futures and swaps contracts. Any change in the variation margin requirement is settled daily. Margin paid or deposited in respect of futures contracts or swaps is reflected as a receivable at fair value in the Statement of Financial Position. (iii) Forward contracts Forward contracts, including forward currency contracts, are valued at the gain or loss that would arise as a result of closing the position at the reporting date. (iv) Options contracts Premiums received from writing options are included in the Statement of Financial Position as a liability and subsequently adjusted daily to fair value. (c) Cash and cash equivalents Cash and cash equivalents includes cash on deposit with banks and short term investments that are readily convertible to cash, are subject to an insignificant risk of changes in value, and are used by the Pool in the management of short-term commitments. Cash and cash equivalents are reported at fair value which closely approximates their amortized cost due to their nature of being highly liquid and having short terms to maturity. Bank overdraft positions are presented as bank indebtedness in current liabilities in the Statement of Financial Position. (d) Currency All amounts are expressed in Canadian dollars. Foreign currency amounts have been expressed in Canadian dollars on the following bases: (i) Fair value of investments and other assets and liabilities at the rate of exchange at the end of the period. (ii) Income, expenses, purchases and sales of investments at the rate of exchange on the dates of such transactions. (e) Income recognition (f) Interest income from interest bearing investments is recognized using the effective interest method. Dividends are accrued as of the ex-dividend date. Dividend income and distributions from open-ended investment funds are recognized when the Pool s right to receive payment is established which is typically on the ex-dividend or distribution date. Distributions received from income trusts and open-ended investment funds are included in interest income, dividend income or capital gains, as appropriate, based on the best information available to the Manager. Due to the nature of these investments, actual allocations could vary from this information. Securities lending and repurchase transactions The Pool may be permitted to enter into securities lending, repurchase and reverse repurchase transactions as set out in the Pool s Simplified Prospectus. These transactions involve the temporary exchange of securities for collateral with a commitment to deliver the same securities on a future date. Income is earned from these transactions in the form of fees paid by the counterparty and, in certain circumstances, interest paid on cash or securities held as collateral. Income earned from these transactions is recognized on the accrual basis and included in the Statement of Comprehensive Income. Securities lending transactions are administered by The Bank of New York Mellon (the Securities Lending Agent). All the counterparties have a sufficient, approved credit rating and the value of cash or securities held as collateral must be at least 102% of the fair value of the securities loaned, sold or purchased. The value of securities loaned and collateral received from securities lending as of the end of the periods, if applicable, is disclosed in Note 13. Collateral received is comprised of debt obligations of the Government of Canada and other countries, Canadian provincial and municipal governments, and financial institutions.