(a unit trust formed under the Laws of Ontario) CONSOLIDATED STATEMENTS OF NET ASSETS (in U.S. dollars) June 30, December 31, ASSETS Cash ba

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1 CONSOLIDATED INTERIM FINANCIAL STATEMENTS

2 (a unit trust formed under the Laws of Ontario) CONSOLIDATED STATEMENTS OF NET ASSETS (in U.S. dollars) June 30, December 31, ASSETS Cash balances at broker (note 7) $ 87,178,561 $ 55,770,538 Equity securities 279,130, ,450,199 Fixed income securities 134,825, ,553,491 Amounts receivable, including contracts awaiting settlement 2,250, ,042 Unrealized gains on open futures, forward and swap contracts (note 7) 19,826,607 8,959,713 Options contracts (note 7) 12,356,190 25,154,830 TOTAL ASSETS 535,568, ,573,813 LIABILITIES Due to broker - 51,150,577 Accounts payable, including contracts awaiting settlement 2,432,721 1,609,317 Redemptions payable 15, ,488 Reverse repurchase agreements (note 3) 120,552,313 93,200,021 Equity securities sold short 141,388, ,249,659 Unrealized losses on open futures, forward and swap contracts (note 7) 30,731,495 19,091,484 Options contracts written 53,760 - TOTAL LIABILITIES 295,175, ,446,546 NET ASSETS AND UNITHOLDERS' EQUITY $ 240,393,942 $ 284,127,267 NET ASSETS AND UNITHOLDERS' EQUITY ALLOCATED TO: Unitholders of Friedberg Global Macro Hedge Fund $ 240,390,355 $ 284,119,710 Non-controlling interest 3,587 7,557 $ 240,393,942 $ 284,127,267 NET ASSETS PER UNIT (note 5) Unitholders of Friedberg Global Macro Hedge Fund $ $ Non-controlling interest - - $ $ ON BEHALF OF THE MANAGER, TORONTO TRUST MANAGEMENT LTD. "Enrique Zauderer" Enrique Zauderer "Daniel Gordon" Daniel Gordon Director, Toronto Trust Management Ltd. Director, Toronto Trust Management Ltd.

3 CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX MONTHS ENDED (with comparative figures for the six months ended June 30, 2012) (in U.S. dollars) Net assets, beginning of the period $ 284,127,267 $ 243,148,554 Subscriptions during the period (note 5) - 69,283,365 Net operating loss for the period (4,638,246) (2,716,396) Net loss on investments for the period (35,057,951) (2,904,386) Redemptions during the period (note 5) (4,037,128) (4,601,317) Net assets, end of the period $ 240,393,942 $ 302,209,820

4 CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED (with comparative figures for the six months ended June 30, 2012) (in U.S. dollars) INCOME Dividends $ 1,411,923 $ 1,193,280 Interest 1,052, ,620 2,464,884 2,088,900 EXPENSES Management fees (note 7) 3,163,866 3,127,264 Dividends paid on securities sold short 2,613,193 1,223,349 Interest expense (note 3) 1,222, ,443 Audit fees 75, ,676 Office and sundry 13,760 8,131 Custodian fees 7,970 20,340 Filing fees 5,741 5,712 Legal fees ,381 7,103,130 4,805,296 NET OPERATING LOSS (4,638,246) (2,716,396) REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains on equity securities, fixed income securities and equity securities sold short 52,343,754 1,511,500 Change in net unrealized gains/losses on equity securities and equity securities sold short 9,963,889 27,983,009 Foreign currency translation gain 787,053 40,973 Change in net unrealized gains/losses on futures, forward and swap contracts (470,811) 12,883,773 Transaction costs (note 8) (1,310,922) (1,378,573) Change in net unrealized gains/losses on options contracts and option contracts written (13,365,539) 1,035,415 Change in net unrealized gains/losses on fixed income securities (18,907,386) 6,840,513 Realized losses on futures, forward and swap contracts (64,097,989) (51,820,996) NET LOSS ON INVESTMENTS (35,057,951) (2,904,386) NET DECREASE IN NET ASSETS FROM OPERATIONS AND INVESTMENTS $ (39,696,197) $ (5,620,782) NET DECREASE IN NET ASSETS FROM OPERATIONS AND INVESTMENTS ATTRIBUTABLE TO: Unitholders of Friedberg Global Macro Hedge Fund $ (39,692,227) $ (5,620,438) Non-controlling interest (3,970) (344) $ (39,696,197) $ (5,620,782) NET DECREASE IN NET ASSETS FROM OPERATIONS AND INVESTMENTS PER UNIT ATTRIBUTABLE TO: Unitholders of Friedberg Global Macro Hedge Fund $ (1.82) $ (0.26) Non-controlling interest - - $ (1.82) $ (0.26)

5 INTERIM STATEMENT OF INVESTMENTS (in U.S. dollars unless otherwise noted) The following equity securities were owned at June 30, 2013: Fair value as Number Fair a % of of shares Country Description Cost value total 116,833,328 Ireland Bank of Ireland $ 16,201,856 $ 23,570, % 35,500 United States Celgene Corp. 4,615,430 4,142, % 1,570,001 United States D.R. Horton Inc. 26,490,326 33,409, % 61,800 United States Genuine Parts Co. 3,900,618 4,822, % 4,600 United States Google Inc. 2,428,209 4,047, % 24,700 United States General Dynamics Corp. 1,565,078 1,934, % 721,600 United States Hartford Financial Services Group Inc. 14,720,125 22,290, % 116,700 United States International Paper 3,712,027 5,169, % 726,000 United States Lennar Corp. 16,364,252 26,157, % 255,900 United States MDC Holdings Inc. 6,999,836 8,321, % 207,200 United States NCR Corp. 4,674,121 6,833, % 172,200 United States News Corp. 2,985,970 5,629, % 10,700 United States NVR Inc. 8,597,409 9,844, % 2,451,000 United States Pultegroup Inc. 23,847,282 46,470, % 15,500 United States Regeneron Pharmaceuticals Inc. 819,749 3,485, % 639,723 United States Rite Aid Corp. 1,598,603 1,816, % 1,462,901 United States Standard Pacific Corp. 11,773,125 12,156, % 55,400 United States The Walt Disney Company 2,645,074 3,500, % 90,100 United States Time Warner Inc. 3,504,710 5,210, % 802,200 United States Toll Brothers Inc. 18,316,926 26,151, % 691,700 United States USG Corp. 13,936,966 15,929, % 219,300 United States Utilities Select Sector Fund 8,221,454 8,234, % 181,717, ,560, % Total equity securities $ 197,919,146 $ 279,130, % Fixed income securities held at June 30, 2013 were comprised as follows: Fair Number/ Coupon Fair value as a Face value Currency rate Maturity Cost value % of total Bundes Deutschland 39,750,000 Euro 2.500% July 4, 2044 $ 53,952,284 $ 51,932, % U.S. Treasury Inflation-Protected (a) 7,500,000 United States dollars 3.875% April 15, ,317,649 15,258, % U.S. Treasury Inflation-Protected (b) 51,400,000 United States dollars 2.125% February 15, ,907,345 66,969, % Venezuala Government 750,000 United States dollars 5.750% February 26, , , % 76,803,432 82,893, % Total fixed income securities $ 130,755,716 $ 134,825, % (a) The U.S. Treasury Inflation-Protected Security earns interest at the rate of 3.875% per annum of the par value adjusted by changes in the CPI inflation index from April 15, 1999, the date of issuance. The principal amount upon maturity is equal to the par value amount adjusted by changes in the CPI inflation index from April 15, The adjusted par value was $10,609,725 at June 30, (b) The U.S. Treasury Inflation-Protected Security earns interest at the rate of 2.125% per annum of the par value adjusted by changes in the CPI inflation index from January 15, 2009, the date of issuance. The principal amount upon maturity is equal to the par value amount adjusted by changes in the CPI inflation index from January 15, The adjusted par value was $55,303,830 at June 30, 2013.

6 INTERIM STATEMENT OF INVESTMENTS (in U.S. dollars unless otherwise noted) The following long option contracts were open at June 30, 2013: Fair Shares/ Option value at Exercise contract Expiry premium June Contract Country Position price size date paid 30, 2013 Equity securities Baidu, Inc. Cayman Islands Put $ ,280 January 17, 2014 $ 1,790,785 $ 1,094,400 Deutsche Bank AG Germany Put January 17, Deutsche Bank AG Germany Put ,040 December 19, , ,501 Deutsche Bank AG Germany Put ,420 December 19, , ,619 Deutsche Bank AG Germany Put ,540 December 19, , ,132 Deutsche Bank AG Germany Put ,000 December 19, , ,045 1,317, ,817 Direxion Daily Emerging Markets Bear 3x United States Call ,904 January 4, ,824,999 3,426,720 Direxion Daily Emerging Markets Bear 3x United States Call January 4, ,060 30,420 Direxion Daily Emerging Markets Bear 3x United States Call January 4, , ,740 ishares MSCI Emerging Markets United States Put January 4, ,410 12,699 ishares MSCI Emerging Markets United States Put ,560 January 4, ,837,573 1,921,920 ishares MSCI Emerging Markets United States Put ,140 January 4, , ,240 ishares MSCI Emerging Markets United States Put ,600 January 4, ,224,000 1,278,000 ishares MSCI South Korea Index Fund United States Put January 4, , ,800 The Blackstone Group L.P. United States Call ,200 January 17, , ,400 The Blackstone Group L.P United States Call ,480 January 17, , ,240 Whirlpool Corp. United States Call January 17, , ,500-10,661,918 9,184,679 Total equity securities option contracts 13,770,580 11,118,896 Futures contracts US Treasury bond Call ,500,000 August 23, ,034,687 1,237,294 Total commodity futures option contracts 1,034,687 1,237,294 Total options contracts $ 14,805,267 $ 12,356,190

7 INTERIM STATEMENT OF INVESTMENTS (in U.S. dollars unless otherwise noted) Equity securities sold short at June 30, 2013: Fair value as Number Fair a % of of shares Country Description Cost value total 3,062,000 Australia Fortescue Metal Group Ltd. $ 9,586,007 $ 8,538, % 12,200 Australia National Australia Bank Ltd. 275, , % 23,500 Australia Westpac Banking Corporation 495, , % 10,357,084 9,490, % 117,000 Canada Bank of Montreal 6,022,000 6,791, % 123,266 Canada Bank of Nova Scotia 6,031,495 6,590, % 90,000 Canada Canadian Imperial Bank of Commerce 6,029,894 6,387, % 740,000 Canada Canadian Oil Sands Ltd. 14,248,293 13,718, % 305,000 Canada Encana Corp. 5,673,025 5,166, % 250,000 Canada MEG Energy Corp. 6,770,399 6,856, % 172,100 Canada National Bank of Canada 12,789,514 12,277, % 82,000 Canada Toronto-Dominion Bank 5,993,721 6,589, % 63,558,341 64,377, % 71,100 China PetroChina Company Ltd. 7,391,888 7,868, % 30,000 Hong Kong China National Offshore Oil Corporation Ltd. 4,954,084 5,022, % 1,789,304 Russia Gazprom 13,294,946 12,167, % 793,828 United States Banco Santander, S.A. 7,812,065 5,128, % 103,100 United States Domtar Corp. 6,952,958 6,854, % 282,600 United States EMC Corp. 6,922,593 6,677, % 44,400 United States International Business Machines Corp. 8,667,894 8,478, % 37,500 United States Ishares MSCI Brazil 2,737,447 1,644, % 98,300 United States Kohl's Corp. 4,158,631 4,966, % 119,500 United States Walter Energy Inc. 4,111,120 1,241, % 107,800 United States Yum! Brands Inc. 7,080,409 7,471, % 48,443,117 42,462, % $ 147,999,460 $ 141,388, % The following equity security options contracts written were open at June 30, 2013: Fair Option value at Exercise Expiry premium June Contract Country Position price Shares date paid 30, 2013 The Blackstone Group L.P United States Call $ ,480 January 17, 2015 $ 49,471 $ 53,760 The following futures, forward and swap contracts were open at June 30, 2013: Local Opening Unrealized Unrealized currency contract U.S. dollar Settlement gains to losses to Currency Position amount price amount date June 30, 2013 June 30, 2013 Currency forward contracts: Bulgarian lev Short 15,000,000 $ $ 9,981,733 September 12, 2013 $ 40,461 $ - Euro Long 7,623, ,925,520 September 12, (74,930) $ 19,907,253 Total unrealized gain (loss) on currency forward contracts 40,461 (74,930)

8 INTERIM STATEMENT OF INVESTMENTS (in U.S. dollars unless otherwise noted) Local Opening Unrealized Unrealized currency contract U.S. dollar Settlement gains to losses to Currency Position amount price amount date June 30, 2013 June 30, 2013 Futures contracts: Bean meal Long 1,400 tons $ 523,600 December (10,010) Brazil real Short 10,000, ,451,000 August ,000 - Brazil real Short 9,000, ,979,800 September ,500 - Canola Long 120 tons ,320 November (3,943) Cotton Long 250,000 pounds ,025 December (11,800) Crude oil brent Long 370,000 barrels ,745,550 August (327,250) Crude oil brent Long 170,000 barrels ,267,750 September (315,350) Banco Santander, S.A. Short 1,490, ,218,862 September ,990 - FTSE 100 Short 339 GBP 10 x Index 6, ,931,474 September (195,039) Gold Short 113,200 ounces 1, ,405,800 August ,642,191 - Gold Long 113,200 ounces 1, ,654,840 December (17,415,820) Japanese government bond Short 7,200,000, ,386,570 September ,466 - Lean hogs Long 920,000 pounds ,140 August ,755 - Light sweet crude oil Short 467,000 barrels ,433,480 December ,049,055 - Light sweet crude oil Short 325,000 barrels ,645,500 December ,455 - Light crude oil Short 320,000 barrels ,993,600 June ,009,600 - Light crude oil Short 508,000 barrels ,885,360 December ,907,860 - Light crude oil Long 7,000 barrels ,325 August (3,405) LME aluminun Short 500 tons 1, ,110 September ,975 - Natural gas Long 20,000 mmbtu ,420 September (7,970) New Zealand dollar Short 4,500, ,467,700 September ,425 - Paladium Long 16,000 ounces ,547,200 September (1,400,555) S&P 500 E-mini Short US $50 x Index 1, ,880,000 September ,980 - SGX S&P nifty futures Short $10,448 5, ,880,496 July (2,804,608) Soybeans Long 100,000 bushels ,252,000 November (44,100) US treasury bonds Long $38,200, ,874,406 September (2,556,535) Volatility index Long 613, ,049,325 July (705,565) $ 790,282,653 (a) Total unrealized gain (loss) on commodity futures contracts 10,176,252 (25,801,950) (a) The total of contract amounts represents the absolute total of all contracts. Such amounts are not truly additive as they include opposite positions for different dates in the same underlying commodities. Unrealized Unrealized Annual Market Contract gains to losses to Position fees price size Maturity June 30, 2013 June 30, 2013 Swap contracts: Australia Bank Short 0.00% $ ,802 August 12, (994,072) Australia Bank Short 0.00% ,740 October 10, (635,576) Banco Bilbao Vizcaya Argentaria Long 0.25% ,300,000 September 20, (167,367) BNP Paribas Long 5.00% ,300,000 December 20, (914,840) BNP Paribas Long 5.00% ,700,000 March 20, (317,855) Brazil Financial Real Estate Short 0.00% ,593 August 9, ,956,759 - Chulent Swap Short 0.00% ,161 February 12, ,243,578 - Credit Agricole Long 5.00% ,300,000 December 20, (786,340) Credit Agricole Long 5.00% ,500,000 March 20, (541,671) Kingdom of Spain Long 1.00% ,000,000 February 20, ,342 - Kingdom of Spain Long 1.00% ,000,000 June 20, ,742 - Kingdom of Spain Long 1.00% ,500,000 December 20, ,440 - Kingdom of Spain Long 1.00% ,500,000 March 20, ,941 - Kingdom of Spain Long 1.00% ,000,000 June 20, ,209 - Portuguese Republic Long 1.00% ,000,000 March 20, ,663 - Portuguese Republic Long 1.00% ,500,000 June 20, ,403 - Société Générale Long 5.00% ,500,000 June 20, (235,698) Société Générale Long 5.00% ,500,000 June 20, (261,196) Venezuela Long 2.42% ,000,000 January 20, ,024,817 - Total unrealized gain (loss) on swap contracts 9,609,894 (4,854,615) Total unrealized gains (losses) on open futures, forward and swap contracts $ 19,826,607 $ (30,731,495)

9 STATEMENT OF INVESTMENTS (in U.S. dollars) Equity securities owned at December 31, 2012 were comprised as follows: Fair value as Number Fair a % of of shares Country Description Cost value total 116,833,328 Ireland Bank of Ireland $ 15,188,171 $ 17,419, % 1,240,000 United States D.R. Horton Inc. 17,675,272 24,502, % 814,800 United States Ebay Inc. 35,166,097 41,571, % 295,200 United States General Dynamics Corp. 18,599,389 20,448, % 61,800 United States Genuine Parts 3,900,618 3,927, % 40,100 United States Google Inc. 25,952,384 28,412, % 1,064,200 United States Hartford Financial Services Group Inc. 21,708,921 23,880, % 282,000 United States Home Depot Inc. 12,676,746 17,441, % 221,000 United States International Paper 7,029,703 8,804, % 726,000 United States Lennar Corp 16,364,252 28,067, % 255,900 United States MDC Holdings Inc. 6,999,836 9,404, % 277,400 United States NCR Corp. 6,257,727 7,068, % 222,300 United States News Corp. 3,854,710 5,833, % 1,500,000 United States Nokia Corp. 5,693,797 5,925, % 10,700 United States NVR Inc. 8,597,409 9,957, % 2,064,000 United States Pultegroup Inc. 15,062,175 37,482, % 34,100 United States Regeneron Pharmaceuticals Inc. 1,803,449 5,795, % 517,900 United States Standard Pacific Corp. 2,884,887 3,806, % 127,100 United States The Walt Disney Company 6,068,392 6,327, % 132,900 United States Time Warner Inc.. 5,169,544 6,356, % 802,200 United States Toll Brothers Inc. 18,316,926 25,919, % 691,700 United States USG Corp. 13,936,965 19,409, % 449,600 United States Wal-Mart Stores, Inc. 32,393,134 30,689, % 286,112, ,030, % Total equity securities $ 301,300,504 $ 388,450, % Fixed income securities held at December 31, 2012 were comprised as follows: Fair Number/ Coupon Fair value as a Face value Currency rate Maturity Cost value % of total U.S. Treasury Inflation-Protected (a) 51,400,000 United States dollars 2.125% February 15, 2040 $ 61,907,344 $ 80,555, % U.S. Treasury Inflation-Protected (b) 10,000,000 United States dollars 3.875% April 15, ,090,198 23,287, % Venezuela Government 750,000 United States dollars 5.750% February 26, , , % Total fixed income securities $ 81,575,980 $ 104,553, % (a) The U.S. Treasury Inflation-Protected Security earns interest at the rate of 2.125% per annum of the par value adjusted by changes in the CPI inflation index from February 26, 2010, the date of issuance. The principal amount upon maturity is equal to the par value amount adjusted by changes in the CPI inflation index from February 26, The adjusted par value was US$55,009,822 at December 31, (b) The U.S. Treasury Inflation-Protected Security earns interest at the rate of 3.875% per annum of the par value adjusted by changes in the CPI inflation index from April 15, 1999, the date of issuance. The principal amount upon maturity is equal to the par value amount adjusted by changes in the CPI inflation index from April 15, The adjusted par value was US$14,071,100 at December 31, 2012.

10 STATEMENT OF INVESTMENTS (in U.S. dollars) The following long option contracts were open at December 31, 2012: Fair Shares/ Option value at Exercise contract Expiry premium December Contract Country Position price size date paid 31, 2012 Equity securities Abbot Laboratories United States Call $ ,000 January 19, 2013 $ 2,133,980 $ 3,970,000 Abbot Laboratories United States Call January 19, , ,000 Apple Inc. United States Put January 19, ,149,768 9,715,160 Merck & Co Inc. United States Call ,100 January 19, ,088,377 3,363,500 Merck & Co Inc. United States Call January 19, , ,650 Pfizer Inc. United States Call ,600 January 19, ,989,896 5,628,000 Pfizer Inc. United States Call January 19, , ,900 Walmart Stores Inc. United States Call ,100 January 18, ,426, ,500 Total equity option contracts 13,677,031 24,952,710 Futures contracts US Treasury bond Call Fenruary 22, , ,120 Total options contracts $ 14,242,657 $ 25,154,830 Equity securities sold short at December 31, 2012 were comprised as follows: Fair value as Number Fair a % of of shares Country Description Cost value total 98,100 United States Abercrombie & Fitch Company $ 3,416,935 $ 4,706, % 766,181 United States Banco Santander, S.A. 7,812,065 6,267, % 227,700 United States EMC Corp. 5,652,174 5,765, % 289,700 United States General Motors Company 7,140,696 8,352, % 310,700 United States Intel Corp. 7,055,313 6,415, % 37,500 United States ishares MSCI Brazil 2,737,447 2,105, % 66,800 United States Mead Johnson Nutrition Company 4,111,714 4,403, % 377,000 United States Merck & Co. Inc. 15,445,340 15,441, % 53,800 United States Monster Beverage Corp. 2,892,492 2,850, % 68,200 United States Norfolk Southern Corp. 4,058,057 4,217, % 119,500 United States Walter Energy, Inc. 4,111,120 4,290, % 89,900 United States WellPoint Inc. 5,130,350 5,478, % 92,900 United States Yum! Brands, Inc. 6,102,397 6,171, % 75,666,100 76,466, % 466,191 Australia Lend Lease Group 4,158,098 4,498, % 179,000 Australia National Australia Bank Ltd. 4,039,448 4,653, % 192,193 Australia Westpac Banking Corp. 4,054,565 5,203, % 12,252,111 14,355, % 117,000 Canada Bank Of Montreal 6,022,000 7,172, % 123,000 Canada The Bank of Nova Scotia 6,016,797 7,118, % 90,000 Canada Canadian Imperial Bank of Commerce 6,029,894 7,254, % 93,900 Canada National Bank Of Canada 6,986,905 7,305, % 127,000 Canada Royal Bank of Canada 5,990,858 7,659, % 82,000 Canada Toronto-Dominion Bank 5,993,722 6,917, % 37,040,176 43,427, % $ 124,958,387 $ 134,249, %

11 STATEMENT OF INVESTMENTS (in U.S. dollars) The following futures, forward and swap contracts were open at December 31, 2012: Unrealized Unrealized Local Opening gains to losses to currency contract U.S. dollar Settlement December December Currency Position amount price amount date 31, , 2012 Currency forward contracts: Bulgarian lev Short 15,000,000 $ $ 10,115,997 March 12, 2013 $ - $ (203,428) Euro Long 7,623, ,064,647 March 12, ,467 - Indian rupee Short 150,000, ,716,983 January 29, ,937 - Norwegian krone Long 14,000, ,511,238 March 19, ,258 - $ 25,408,865 Total unrealized gain (loss) on currency forward contracts 188,662 (203,428) Futures contracts: Cattle Long 1,480,000 lbs $ 1,959,668 February (187) Copper Long 600,000 lbs ,188,680 March ,580 - Cotton Long 1,900,000 lbs ,432,600 March (17,345) Crude oil brent Long 348,000 barrels ,723,700 February ,570,920 - Crude oil brent Long 192,000 barrels ,127,680 March ,960 - FTSE 100 Short GBP 10 x Index 5, ,122,873 March ,867 - Gold Long 3,400 oz. 1, ,698,060 April (179,820) Lean hogs Long 1,280,000 lbs ,100,032 February (397) Light crude oil Short 320,000 barrels ,505,600 June ,417,600 - Light crude oil Short 508,000 barrels ,298,360 December (723,580) Light sweet crude oil Short 467,000 barrels ,684,420 December (1,225,235) Light sweet crude oil Short 325,000 barrels ,765,125 December (366,045) LME aluminum Short 500 tonnes 2, ,016,470 March ,900 - MSA Comp PRX Long ,600 March Nasdaq 100 Short $20 x Index 2, ,069,623 March (180,402) Nikkie 225 Long Yen500 x Index 9, ,132,319 March ,669,953 - S&P 500 Short $50 x Index 1, ,016,625 March (110,813) SGX S&P nifty futures Short 15,080 5, ,035,140 January (585,000) Silver Long 60,000 oz. 3, ,821,750 March (173,080) US treasury bonds Long $99,000, ,452,656 March (2,966,700) $ 665,170,981 Total unrealized gain (loss) on commodity futures contracts 7,548,230 (6,528,604) Swap contracts: Annual Market Contract Position fees price size Maturity Argentina Bank Long 0.00% ,300,000 September 20, (160,889) Australia Bank Short 0.00% ,802 August 12, (341,175) Australia Bank Long 0.00% ,740 October 10, (582,633) BNP Paribas Short 5.00% ,300,000 December 20, (1,017,644) BNP Paribas Short 5.00% ,700,000 March 20, (375,140) Brazil Financial Real Estate Short 0.00% ,766 August 19, (3,623,541) Chulent Swap Short 0.00% ,995 December 9, (3,686,333) Credit Agricole Short 5.00% ,300,000 December 20, (755,790) Credit Agricole Short 5.00% ,500,000 March 20, (502,350) French Bank Short 0.00% ,965 December 3, (1,313,957) Kingdom of Spain Long 1.00% ,000,000 March 20, ,714 - Kingdom of Spain Short 1.00% ,000,000 June 20, ,155 - Kingdom of Spain Short 1.00% ,500,000 December 20, ,005 - Kingdom of Spain Short 1.00% ,500,000 December 20, ,728 - Venezuela Short 2.42% ,000,000 January 20, ,219 - Total unrealized gain (loss) on swap contracts 1,222,821 (12,359,452) Total unrealized gains (losses) on open futures, forward and swap contracts $ 8,959,713 $ (19,091,484)

12 STATEMENT OF INVESTMENTS (in U.S. dollars unless otherwise noted) Summary of investments as a percentage of net assets: June 30, 2013 December 31, 2012 Percentage of Percentage of Amount Net assets Amount Net assets Fixed income securities $ 134,825, % $ 104,553, % Equity securities 279,130, % 388,450, % Equity securities sold short (141,388,941) (58.82)% (134,249,659) (47.25)% Net unrealized gain on swap contracts 9,609, % 1,222, % Net unrealized loss on swap contracts (4,854,615) (2.02)% (12,359,452) (4.35)% Option contracts on equity securities 11,118, % 24,952, % Option contract written on equity securities (53,760) (0.02)% - - % Total equity securities, equity securities sold short, option and swap contracts 153,562, % 268,016, % Net unrealized gains on open currency forward contracts 40, % 188, % Net unrealized losses on open currency forward contracts (74,930) (0.03)% (203,428) (0.07)% Total currency contracts (34,469) (0.01)% (14,766) - % Net unrealized gains on open commodity futures contracts 10,176, % 7,548, % Option contract on commodity futures and forward contracts 1,237, % 202, % Net unrealized losses on open commodity futures and forwards contracts (25,801,950) (10.73)% (6,528,604) (2.30)% Total commodity contracts (14,388,404) (5.99)% 1,221, % Total investments 273,965, % 373,777, % Other assets and liabilities, net (33,571,439) (13.97)% (89,649,823) (31.55)% Net assets $ 240,393, % $ 284,127, %

13 NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (amounts expressed in U.S. dollars) 1. BASIS OF PRESENTATION Pursuant to an agreement dated July 1, 2011, Friedberg Global Macro Hedge Fund ("FGMHF") transferred certain property (including cash, securities and positions in derivatives) to Friedberg Global Macro Hedge Fund Limited Partnership ("FGMHFLP") at their fair value on that date by way of a capital contribution by FGMHF to FGMHFLP. FGMHFLP is a variable interest entity of which FGMHF is the primary beneficiary. As a result, these consolidated statements represent the consolidated accounts of FGMHF and FGMHFLP (together the "Fund"). All balances and transactions between FGMHF and FGMHFLP have been eliminated. As FGMHF is the sole limited partner of FGMHFLP, the results of the operations of FGMHF and FGMHFLP are merged from the date of the transfer. The unitholders of FGMHF continue to hold unites of FGMHF. FGMHF was organized on September 5, 2006 and commenced trading operations on October 31, The Fund is an open-end mutual fund trust established under the laws of Ontario offering non-transferable, redeemable trust units ("Units"). The investment manager of the Fund is Friedberg Mercantile Group Ltd. ("FMGL"). The investment manager of the Fund LP is Friedberg Advisors LP ("Friedberg Advisors"). The administrative manager and trustee of the Fund is Toronto Trust Management Ltd. (the "Manager" or "TTML"), which is an affiliate of Friedberg Advisors and FMGL. The Fund is a multi-strategy fund whose investment objective is to seek significant total investment returns, consisting of a combination of interest income, currency gains and capital appreciation, by investing in the following four discrete groups of investments: (i) long positions in fixed income securities; (ii) long and short positions in equity securities; (iii) currency forwards and futures contracts and options; and (iv) commodity forwards and futures contracts and options thereon, and other over-the-counter traded derivaties instruments. The Fund's cash balances at brokers and certain investments are pledged as margin to its brokers. These interim financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles ("GAAP"). These accounting policies are consistent with those outlined in the Fund's annual consolidated financial statements. These consolidated interim financial statements do not include all disclosures normally provided in annual consolidated financial statements and should be read in conjunction with the Fund's consolidated financial statements for the year ended December 31, In management's opinion, the unaudited financial information includes all adjustments (consisting solely of normal recurring adjustments), necessary to present fairly such information. Interim results are not indicative of the results expected for the fiscal year.

14 FINANCIAL INSTRUMENTS The Fund's assets and liabilities classified in accordance with CICA Handbook Section 3855 are as follows: June 30, December 31, ASSETS Held for trading (i) $ 533,318,138 $ 582,888,771 Loans and receivable (ii) 2,250, ,042 Total assets 535,568, ,573,813 LIABILITIES Held for trading (i) 172,174, ,491,720 Other financial liabilities at amortized cost (iii) 123,000,851 94,954,826 Total liabilities 295,175, ,446,546 Net assets $ 240,393,942 $ 284,127,267 (i) (ii) (iii) Financial instruments classified as held for trading included cash balances at broker, equity securities, fixed income securities, open futures, forward and swap contracts, options contracts, equity securities sold short, and options contracts written. Financial instruments classified as loans and receivable include amounts receivable, inclusive of contracts awaiting settlement. Financial instruments classified as other financial liabilities at amortized cost include accounts payable, inclusive of contracts awaiting settlement, reverse repurchase agreement and redemptions payable. All of the components of the Fund's net assets are considered to be financial instruments. The fair value of these financial instruments approximates their carrying value. Fair Value Hierarchy of Financial Instruments - The Fund has categorized its financial instruments that are carried at fair value, based on the priority of the inputs to the valuation techniques used to measure fair value, into a three level fair value hierarchy as follows: Level 1: Fair value is based on unadjusted quoted prices for identical assets or liabilities in an active market. The types of assets and liabilities classified as Level 1 generally include cash balances at broker, equity securities, fixed income securities, futures contracts and equity securities sold short. Level 2: Fair value is based on quoted prices for similar assets or liabilities in active markets, valuation that is based on significant observable inputs, or inputs that are derived principally from or corroborated with observable market data through correlation or other means. The types of assets and liabilities classified as Level 2 include credit default swaps, forward contracts, option contracts and option contracts written. Level 3: Fair value is based on valuation techniques that require one or more significant inputs that are not based on observable market inputs. These unobservable inputs reflect the Fund's assumptions about the assumptions market participants would use in pricing the asset or liability. Currently, the Fund has no assets or liabilities that would be included in level 3.

15 - 3 - The following table presents the Fund's financial instruments that are carried at fair value by Section 3862 level, as at June 30, 2013: Level 1 Level 2 Total ASSETS Cash balances at broker $ 87,178,561 $ - $ 87,178,561 Equity securities 279,130, ,130,939 Fixed income securities 134,825, ,825,841 Credit default swaps - 9,609,894 9,609,894 Forward contracts - 40,461 40,461 Futures contracts 10,176,252-10,176,252 Options contracts - 12,356,190 12,356,190 $ 511,311,593 $ 22,006,545 $ 533,318,138 LIABILITIES Equity securities sold short $ 141,388,941 $ - $ 141,388,941 Credit default swaps - 4,854,615 4,854,615 Forward contracts - 74,930 74,930 Futures contracts 25,801,950-25,801,950 Option contracts written - 53,760 53,760 $ 167,190,891 $ 4,983,305 $ 172,174,196 The following table presents the Fund's financial instruments that are carried at fair value by Section 3862 level, as at December 31, 2012: Level 1 Level 2 Total ASSETS Cash balances at broker $ 55,770,538 $ - $ 55,770,538 Equity securities 388,450, ,450,199 Fixed income securities 104,553, ,553,491 Credit default swaps - 1,222,821 1,222,821 Forward contracts - 188, ,662 Futures contracts 7,548,230-7,548,230 Options contracts - 25,154,830 25,154,830 $ 556,322,458 $ 26,566,313 $ 582,888,771 LIABILITIES Due to broker $ 51,150,577 - $ 51,150,577 Equity securities sold short 134,249,659 $ - 134,249,659 Credit default swaps - 12,359,452 12,359,452 Forward contracts - 203, ,428 Futures contracts 6,528,604-6,528,604 $ 191,928,840 $ 12,562,880 $ 204,491,720

16 - 4 - Risk Management The Manager manages risk by employing professional and experienced portfolio advisors, by daily monitoring of the Fund's positions and market events, and by diversifying the investment portfolio within the constraints of the investment objective. To assist in managing risk, the Manager also maintains a governance structure that oversees the Fund's investment activities and monitors compliance with the Fund's stated investment strategy and securities regulations. The Fund's investment activities expose it to various types of risk that are associated with the financial instruments and markets in which it invests. The statement of investments presents the securities held by the Fund as at June 30, 2013 and December 31, 2012, and groups the securities by asset type, sector and/or market segment. Significant risks that are relevant to the Fund are discussed below. Total assets and liabilities presented in the tables below are not intended to match total assets and liabilities disclosed in the statement of net assets, due to differences in presentation of derivative instruments. Certain risks, such as currency and interest rate risk may be correlated. Such correlation is not taken into account in these financial statements. (a) Market price risk - Market price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices whether those changes are cause by factors specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market. The table below summarizes the Fund's overall market exposure: Fair value % of net assets Equity securities (i) $ 279,130, % Fixed income securities 134,825, % Futures contracts (total notional contract value) 790,282, % Forward contracts (total notional contract value) 19,907, % Option contracts (total notional contract value) (ii) 127,891, % Swap contracts (total notional contract value) 273,510, % Total $ 1,625,548, % (i) The greater of the absolute value of either the equity securities and the equity securities sold short. (ii) The greater of the absolute value of either the option contracts and the option contracts written. Price sensitivity As at June 30, 2013 had the prices of the investments held in the Fund increased or decreased by 5%, with all other variables held constant, net assets would have increased or decreased, by approximately $29,815,000 and $34,548,000 respectively. In practice, the actual trading result may differ from this analysis and the difference may be material. (b) Currency risk - Currency risk is the risk that the value of a financial instrument will fluctuate as a result of changes in foreign currency exchange rates, which can be caused by market, political and/or other factors which may be subject to intervention by sovereign governments. The Fund holds assets denominated in currencies other than its measurement currency. The Fund is therefore exposed to currency risk, as the value of the securities denominated in other currencies fluctuates due to change in exchange rates.

17 - 5 - The table below summarizes the Fund's exposure to currency risk (in U.S. dollars): Open futures, forwards Fixed Equity and swap income % of Currency Cash securities (i) contracts (ii) Options securities Total net assets Australian dollar $ (10,025,326) $ (9,490,535) $ (47,523,621) - $ - $ (67,039,482) (27.89)% British pound 1,235,471 - (31,931,474) - - (30,696,003) (12.77)% Bulgarian lev - - (9,981,733) - - (9,981,733) (4.15)% Canadian dollar 18,322,167 (64,377,383) (46,055,216) (19.16)% Euro 404,294 23,570, , ,298 51,932,620 77,453, % Japanese Yen (309,729) - (103,386,570) - - (103,696,299) (43.14)% Total $ 9,626,877 $ (50,297,028) $(192,116,740) $ 839,298 $ 51,932,620 $(180,014,973) (74.89)% (i) (ii) Net of short positions. These contracts are presented at their full value, whereas on the statement of net assets they are stated at their fair value. Currency Sensitivity As at June 30, 2013, had the United States dollar strengthened or weakened by 1% in relation to all currencies, with all other variables remaining constant, net increase or decrease in net assets from operations and investments for the year would have increased or decreased by $1,800,150. This analysis only addresses the impact on the financial instruments with respect to currency movement, and excludes any other economic or geo-political implications of such currency fluctuation. In practice, the actual trading result may differ from this analysis and the difference may be material. (c) Interest rate risk - The Fund is exposed to significant interest rate risk as it invests in fixed income securities. Generally, debt securities will increase in value when interest rates decline and decrease in value when interest rates rise. How sensitive the Fund is to changes in prevailing interest rates depends on other factors like credit rating of the issuers and the term of maturity of the Fund's investments. The lower the credit rating of the issuers and the longer the term to maturity, the more sensitive the Fund is to changes in prevailing interest rates, thus the higher the interest rate risk. Interest Rate Sensitivity As at June 30, 2013, had the prevailing interest rate increased or decreased by 0.25%, with all other variables held constant, net assets would have increased or decreased, by approximately $303,662. In practice, the actual results may differ and the difference may be material. (d) Credit risk - The Fund is exposed to credit risk arising from its transactions with its counterparties, related to securities purchases, sales and positions held by the counterparties on the Fund's behalf. Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. Financial assets which potentially expose the Fund to credit risk consist principally of investments in fixed income securities, due from brokers and derivatives. Until the fixed income securities are sold or mature, the Fund is exposed to credit risk relating to whether the bond issuer will meet its obligations when they come due. Credit risk is managed by dealing only with counterparties the Fund believes to be creditworthy, setting transaction limits with specific counterparties and by daily monitoring of credit exposure.

18 - 6 - Credit default swap contracts involve an arrangement between the Fund and the counterparty, in which the Fund pays periodic premiums and the counterparty agrees to make a payment to compensate the Fund for losses upon the occurrence of a specified credit event. The fair value of open swaps reported in the statement of net assets may differ from that which would be realized in the event of the Fund terminating its position in the contract. Risks may arise as a result of the failure of the counterparty to the swap contract to comply with the terms of the swap contract. The loss incurred by the failure of the counterparty is generally limited to the aggregate of the unrealized gain on the swap contracts in an unrealized position as well as any collateral posted with the counterparty. Therefore, the Fund considers the creditworthiness of the counterparty to a swap contract in evaluating potential credit risk. Additionally, risks may arise from unanticipated movements in the fair value of the underlying securities and the lack of market liquidity to unwind the positions at the current fair values. (e) Liquidity risk - The Fund is exposed to weekly cash redemptions of redeemable Units. Therefore, the Fund invests the majority of its assets in investments that are traded in the active market and can be readily disposed. In addition, the Fund retains sufficient cash and cash equivalent positions to maintain liquidity. Certain derivative contracts may not trade in an organized market and may be illiquid. The Fund's investments are considered readily realizable and highly liquid, therefore the Fund's liquidity risk is considered minimal. 3. REVERSE REPURCHASE AGREEMENTS The Fund entered into reverse repurchase agreement to finance the acquisition of investments with JP Morgan Clearing Corporation. Reverse repurchase agreements are treated as collateralized financing transactions and are carried at their contractual amounts. Interest expense in relation to various reverse repurchase agreements entered into during the period was $106,003 ($99,872 for the six months ended June 30, 2012) and is recorded as separate line item in the statements of operations. The following outlines the reverse repurchase agreements in place at June 30, Transaction Date Expiry Date Cash Received Portfolio Bought Par Fair Value June 17, 2013 July 16, 2013 $ 52,478,246 Bundes Deutschland 2.5%, July 4, ,750,000 Euro $ 51,932,620 June 17, 2013 July 16, ,601,103 US TIPS 2.125% February 15, 2040 $ 46,500,000 60,585,231 June 17, 2013 July 16, ,614,154 US TIPS 3.875% April 15, ,500,000 15,258,940 Total reverse repurchase agreements 129,693,503 $ 54,000,000 75,844,171 Accrued interest 3,329 Margin call (9,144,519) $ 127,776,791 Total reverse repurchase agreements $ 120,552,313 The following outlines the reverse repurchase agreements in place at December 31, Transaction Date Expiry Date Cash Received Portfolio Bought Par Fair Value December 21, 2012 January 8, 2013 $ 72,200,368 US TIPS 2.125% February 15, 2040 $ 46,500,000 $ 72,875,640 December 21, 2012 January 8, ,965,686 US TIPS 3.625% April 15, ,000,000 23,287,671 Total reverse repurchase agreements 95,166,054 $ 56,500,000 $ 96,163,311 Accrued interest (268) Margin call (1,965,765) Total reverse repurchase agreements $ 93,200,021

19 INCOME TAXES Net income, excluding capital gains, is distributed quarterly. Net cumulative realized capital gains of the Fund, net of any net capital loss carryovers available, are distributed at least annually to ensure that the Fund pays no income tax, capital gains tax, or minimal alternative minimum tax. Distributions are reinvested into the Fund unless the Unitholder designates otherwise. Taxable income of the Fund which is distributed to Unitholders is not taxable to the Fund, but is taxable income to Unitholders (see note 6). 5. UNITHOLDERS' EQUITY (a) Units of Unitholder interest - Units are being offered on a continuous basis at current net asset value ("NAV") per Unit of the Fund. NAV is determined on the first business day of each week and the last business day of every month (each a "Valuation Date"). The following details the changes in the number of Units outstanding for the six months ended June 30, 2013 and 2012 and for the year ended December 31, 2012: 6 months Year 6 months ended ended ended June December June 30, , , 2012 Number of Units issued, beginning of the period 21,957,362 17,339,044 17,339,044 Units subscribed during the period - 5,208,443 5,208,443 Units redeemed during the period (304,062) (590,125) (371,011) Number of Units outstanding, end of the period 21,653,300 21,957,362 22,176,476 Weighted average number of Units outstanding for the period 21,759,249 22,013,810 21,960,123 (b) Distributions - Distributions are made to generally result in no income tax being payable by the Fund. During the six months end June 30, 2013 and June 30, 2012 the Fund made no distributions to Unitholders. (c) Redemptions - Unitholders may redeem some or all of their Units at any Valuation Date by written request to the Manager, at net asset value per Unit less 0.375%. The 0.375% is retained by the Fund. 6. INCENTIVE FEE DISTRIBUTION As investment manager of the FGMHFLP, Friedberg Advisors receives an incentive fee distribution from the Fund LP, calculated and payable quarterly, equal to 20% of net new profits, in any year that such new profits represent a return on net assets that exceeds the current yield on the two-year U.S. Government treasury notes. During the period ended June 30, 2013, there were no incentive fee distributions to Friedberg Advisors ($nil for the six months ended June 30, 2012).

20 RELATED PARTY TRANSACTIONS (a) Transaction costs - FMGL serves as the Fund's primary broker. For the period, the Fund incurred $780,374 ($696,256 for the six months ended June 30, 2012) in transaction costs on option, futures and forward contracts with FMGL. Transaction costs are charged to net income and are calculated at FMGL's lowest brokerage rates. FMGL does not charge the Fund brokerage fees in respect of fixed income security transactions. (b) Management fees - As manager, TTML is entitled to receive management fees, calculated and payable monthly, at the annual rate of one percent of the net asset value of Fund LP and the Fund together plus Harmonized Sales Tax ("H.S.T"), based on the net asset value on the last business day of the month. Management fees paid to TTML in the period were $3,163,866 ($3,127,264 for the six months ended June 30, 2012). An amount of $398,435 was included in accounts payable at June 30, 2013 ($453,550 as at December 31, 2012). (c) Cash balances and securities held at broker - Cash balances at broker is cash deposited with FMGL. The following details the cash and investments which FMGL held on behalf of the Fund as at June 30, 2013: June 30, December 31, Assets Cash balances at broker $ 62,679,695 $ 42,742,531 Unrealized gains on open futures, forward and swap contracts 10,216,712 7,736,027 Option contracts 2,076, ,120 $ 74,972,998 $ 50,680,678 Liabilities Unrealized losses on open futures, forward and swap contracts $ 25,876,880 $ 6,731,205 (d) Subscriptions and redemptions - Directors of FMGL (including their immediate families) redeemed 47,467 Units (51,678 for the six months ended June 30, 2012) of the Fund in the amount of $624,778 during the period ($611,793 for the six months ended June 30, 2012) and subscribed for no Units (2,745,031 for the six months ended June 30, 2012) of the Fund in the amount of $nil ($36,742,660 for the six months ended June 30, 2012). Related party subscriptions and redemptions are processed at NAV on a Valuation Date when the transaction occurs.

21 CAPITAL MANAGEMENT Management considers the Fund's capital to consist of issued Units and the net assets attributable to participating Unitholders. The Investment Manager manages the capital of the Fund in accordance with the Fund's investment objectives, policies and restrictions, as outlined in the Fund's prospectus, while maintaining sufficient liquidity to meet participating Unitholder redemptions. The Fund does not have any externally imposed capital requirements. 9. RECONCILIATION OF NET ASSET VALUE In accordance with the relief granted by the Canadian Securities Administrators, a reconciliation between the currently calculated purchases and redemption price (the "Transactional NAV") and the net asset value calculated in accordance with Section 3855 (the "GAAP NAV") of the Fund has been made. The reconciliation of the Fund's Transactional NAV and the GAAP NAV is presented in the following table: June 30, December 31, Transactional NAV $ 239,018,867 $ 282,865,872 Section 3855 adjustment 1,375,075 1,261,395 GAAP NAV $ 240,393,942 $ 284,127,267 Transactional NAV per unit $ $ GAAP NAV per unit $ $ 12.94