E, E5, EF, EF5, EX, EX5, F, F5, I, L, L5, O, P, P5

Series A, E, E5, EF, EF5, EX, EX5, F, F5, I, L, L5, O, P, P5 and T5 Units March 31, This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the Fund. You can get a copy of the annual financial statements at your request, and at no cost, by calling 1-800-530-0204, by writing to us at 522 University Avenue, Suite 700, Toronto, ON M5G 1Y7, or by visiting our website at www.iaclarington.com or SEDAR at www.sedar.com. Securityholders may also contact us using one of these methods to request a copy of the investment fund's interim financial report, proxy voting policies and procedures, proxy voting disclosure record, or quarterly portfolio disclosure.

March 31, Management Discussion of Fund Performance The management discussion of fund performance for IA Clarington Focused Balanced Fund (the "Fund") represents management's view of the significant factors and developments affecting the Fund's performance and outlook for the 12-month period ended March 31,. IA Clarington Investments Inc. is the manager (the "Manager") of the Fund. Series EX and Series EX5 of the Fund are closed to new new investors. Investors who currently hold these series may purchase additional units. Investment Objective and Strategies The Fund's investment objective is to achieve capital appreciation and provide moderate income by investing primarily in a portfolio of Canadian equity and fixed income investments. The Fund's strategy is to invest primarily in a portfolio of Canadian equity and fixed income investments. The Fund may invest up to 49% of its assets in foreign securities. The Fund's Portfolio Manager is Industrial Alliance Investment Management Inc. ("IAIM" or the "Portfolio Manager"). Taylor Asset Management Inc. ("TAM" or the "Equity Sub-Advisor" or the "fund manager") and IA Clarington Investments Inc. ("IAC" or the "Bond Sub-Advisor") are the Portfolio Sub- Advisors of the Fund. TAM manages the equity portion of the Fund's portfolio and determines the allocation between equity and fixed income investments. IAC manages the fixed income portion of the Fund's portfolio. Risk The overall risk of investing in the Fund remains as described in the prospectus. The Fund is suitable for investors seeking the possibility for capital appreciation and income, with low to medium risk tolerance and planning to invest over the medium to long-term. Results of Operations The Fund's Net Assets decreased by 31.8% or $61 million during the period, from $192.1 million on March 31, to $131.1 million on March 31,. This change in Net Assets resulted from a decrease of $51.8 million due to net redemptions, a decrease of $3.3 million due to distributions and a decrease of $5.9 million due to investment operations, including market volatility, income and expense. The average Net Asset Value of the Fund decreased by 20.2% or $41.3 million in comparison to the prior period, from $204.1 million to $162.8 million. Average Net Asset Value influence revenue earned and expenses incurred by the Fund during the period. The Fund's broad-based benchmark, the S&P/TSX Composite, returned 1.7% for the same twelve-month period. The comparison to this broad-based index has been provided to help you understand the Fund's performance relative to the general performance of the Canadian equity market. The Fund's benchmark, which is composed of the S&P/TSX Composite (40%), the S&P 500 (35%) and the FTSE TMX Canada All Corporate Bond (25%), returned 4.8% for the same period. This comparison to Fund performance is more useful, because it more closely reflects the asset classes in which the Fund invests. The Fund s return calculation for all series includes fees and expenses, which are not applicable in generating a return for the benchmark. Despite an improving environment for resources and a strong economy, Canada s equity market was one of the worst performers in and the first quarter of. Business-friendly policies in the U.S., improved the profitability of U.S. companies. Meanwhile, the Canadian government s focus on social programs and the environment, and concerns about renegotiations of the North American Free Trade Agreement, did not help attract international investors. The U.S. equity market was strong for the period despite a decline in early. Fixed income securities accounted for just over one-third of the Fund s assets at the end of the period, with bonds underperforming equities. In the Fund s equity component, allocation to the consumer discretionary sector was the largest contributor to performance. Exposure to the materials and health care sectors also contributed to performance. Hedging a portion of the Fund s U.S.-dollar exposure also benefited. The move shielded the returns of some of the Fund s U.S.-dollar holdings from U.S. currency weakness. Top individual contributors to performance included holdings in Martinrea International Inc., Labrador Iron Ore Royalty Corp. and Genworth MI Canada Inc. While most automobile stocks were solid during the period, Martinrea significantly outperformed the sector after reporting strong third-quarter results. The company is being rewarded by investors for the good execution of strategy by its management. Labrador Iron Ore benefited from improving iron ore prices and strong demand for high-quality pellets, particularly from China. In addition, the company declared another special dividend in December. Genworth MI Canada Inc., one of Canadas s largest residential mortgage insurance, was a key contributor to performance. An improved outlook for insured mortgages based on softened concerns around restrictions on insured mortgages by the Office of the Superintendent of Financial Institutions (OSFI), created a positive environment for the stock. Within fixed income securities, the Fund s allocation to the consumer cyclical and diversified sectors contributed most to its performance. Top individual contributors included two bonds issued by Sherritt International Corp. (7.875%, 11/10/2025 and 7.5%, 24/09/2023), and Garda World Security Corp. (7.25%, 15/11/2021). Sherritt International benefited from improved nickel and metal prices, while Garda World reported stable business measurements. Series A units of the Fund returned -4.0% for the twelve-month period ending March 31,. The performance of the other series of the Fund is substantially similar, save for differences in fees and expense structure. Refer to the " Performance" section for performance information of each series. 1

March 31, Results of Operations (continued) The Fund s equity component detracted from performance as it underperformed the benchmark. An overweight allocation to Canadian equities versus U.S. equities, particularly in the energy sector, also detracted from performance. Value-style securities underperformed growth-oriented stocks, which detracted from performance as the Fund s strategy focuses on value. Individual detractors from performance included holdings in Element Fleet Management Corp. (EFN), Birchcliff Energy Ltd. and Finisar Corp. Following EFN s December split from Element Financial, EFN announced the loss of additional customers in February, while its management struggled through acquisition-related integration issues which caused its earnings estimates to be revised downward. Amid these challenges, EFN s management unsuccessfully attempted to maximize company value by divesting businesses. The company s operations began to stabilize late in the period as they searched for a new chief executive officer. Birchcliff Energy detracted from fund performance during the period. Birchcliff Energy, like many other Canadian energy producers, saw its stock price negatively impacted by volatile and declining natural gas prices. Finisar was affected by the delayed production of its 3D-sensing modules used in Apple Inc. s new iphone. The fund manager exited the position in January and the stock declined another 24% after the holding was sold. In the Fund s fixed income component, exposure to the telecommunication services sector detracted from performance, although this was partially offset by a reduction in its sector weighting. A higher-than-normal cash position also detracted from relative performance. The largest individual detractors were Windstream Corp. (7.5%, 01/04/2023), Frontier Communications Corp. (7.125%, 15/01/2023) and Westmoreland Coal Co. (8.75%, 01/01/2022). Windstream and Frontier Communications posted lower-than-expected financial results. Westmoreland Coal declined as it explores capital restructuring initiatives. A new equity position in Celgene Corp., an American biotechnology company with a strong pipeline of new drugs was introduced to the Fund. Celgene generates solid cash flow but its stock traded at a deep discount due to moderately disappointing third-quarter results on current drug inventory. The fund manager believed Celgene is an attractive acquisition candidate at these valuations. International Business Machines Corp. (IBM) shares were also added to the Fund during the period. The company is benefiting from the new mainframe cycle and increasing cloud computing business. Cloud computing revenue represents approximately 20% of IBM s business and should continue to grow, which should secure the company a top-three spot in the sector. An equity holding in Bank of Montreal was eliminated after significant share gains. Recent Developments The valuation gap between Canadian and U.S. equities has not been this large since the financial crisis in 2008-2009, and represents a significant investment opportunity. Canada typically fares well in the late stages of a strong global economic cycle. The U.S. economy is experiencing healthy growth with unemployment improving. Manufacturing is strong and pricing pressure is increasing on Canadian products, including steel, lumber, copper, nickel, iron ore, oil and coal. Commodity prices are firming, which should help the Canadian economy see some positive gains. The Fund has an overweight exposure to Canadian equities, with a focus on highly cyclical sectors and interest-rate-sensitive businesses that are best positioned to benefit from an economic expansion that could last another five or six years. Exposure to Canada s commodities has not benefited the Fund over the past couple of quarters, but the fund manager believes that will change in the future. Effective September 25,, Series FE and Series FE5 of the Fund were renamed to Series EF and Series EF5 respectively. Certain series of the Fund, as applicable, may make distributions which the Manager may change from time to time. If the aggregate amount of distributions in such series exceeds the portion of net income and net realized capital gains allocated to such series, the excess will constitute a return of capital. The Manager does not believe that the return of capital distributions made by such series of the Fund have a meaningful impact on the Fund s ability to implement its investment strategy or to fulfill its investment objective. Related Party Transactions The Portfolio Manager is affiliated with the Manager as they are both under common control of Industrial Alliance Insurance and Financial Services Inc. ("Industrial Alliance"). For the provision of management services, the Manager received management fees from the Fund, based on the average Net Asset Values of the respective series. The management fees paid are disclosed in the financial statements. The Manager paid the operating expenses of the Fund (the Operating Expenses ) in exchange for the payment by the Fund of a fixed rate administration fee (the Administration Fee ) to the Manager with respect to each series of the Fund, except for Series I and Series V, if applicable. The Manager pays the operating expenses of the Fund, other than Fund Costs, in exchange for the payment by the Fund of a fixed rate administration fee (the Administration Fee ) to the Manager with respect to each series of the Fund, except for Series I and Series V, if applicable. The expenses charged to the Fund in respect of the Administration Fee are disclosed in the Fund s financial statements. The Administration Fee is equal to a specified percentage of the net asset value of a series, calculated and paid in the same manner as the management fees for the Fund. The Fund s most recent simplified prospectus contains further details about the Administration Fee. In addition to the Administration Fee, each series of the Fund is responsible for its proportionate share of certain other operating expenses ( Fund Costs ). Further details about Fund Costs can be found in the Fund s most recent simplified prospectus. The Manager, at its sole discretion, may waive or absorb a portion of a series expenses. These waivers or absorptions may be terminated at any time without notice. During the 12-month period ended March 31,, the Fund did not pay brokerage commissions to Industrial Alliance Securities Inc., a subsidiary of Industrial Alliance. 2

March 31, Financial Highlights The following tables show selected key financial information about the Fund and are intended to help you understand the Fund's financial performance for the periods indicated. The information in the following tables is based on prescribed regulations and as a result, is not expected to add down due to the increase (decrease) in net assets from operations being based on average units outstanding during the period and all other numbers being based on actual units outstanding at the relevant point in time. Footnotes for the tables are found at the end of the Financial Highlights section. Series A 5 Net Assets, beginning of period 12.97 10.87 12.61 13.11 10.82 Total revenue 0.51 0.51 0.54 0.45 0.56 Total expenses (excluding distributions) (0.30) (0.28) (0.28) (0.30) (0.36) Realized gains (losses) for the period (0.57) 0.65 (0.21) 0.32 (0.10) Unrealized gains (losses) for the period (0.11) 1.47 (1.58) (0.87) 2.34 Total increase (decrease) from operations 2 (0.47) 2.35 (1.53) (0.40) 2.44 (5) (6) (7) (4) (2) From dividends 4 (0.16) (0.18) (0.20) (0.10) (0.15) From capital gains - - - (0.64) - Total distributions 3 (0.21) (0.24) (0.27) (0.78) (0.17) Net Assets, end of period 12.24 12.97 10.87 12.61 13.11 Series E 5 Net Assets, beginning of period 10.59 8.88 10.29 10 - Total revenue 0.44 0.43 0.44 0.19 - Total expenses (excluding distributions) (0.23) (0.21) (0.21) (0.10) - Realized gains (losses) for the period (1.21) 0.59 (0.21) (0.28) - Unrealized gains (losses) for the period 0.38 1.11 (1.18) 0.54 - Total increase (decrease) from operations 2 (0.62) 1.92 (1.16) 0.35 - (4) (6) (6) (4) - From dividends 4 (0.13) (0.16) (0.17) (0.10) - From capital gains - - - (2) - Total distributions 3 (0.17) (0.22) (0.23) (0.16) - Net Assets, end of period 10 10.59 8.88 10.29 - Series E5 5 Net Assets, beginning of period 9.77 8.47 10.12 10 - Total revenue 0.39 0.43 0.43 0.17 - Total expenses (excluding distributions) (0.20) (0.20) (0.20) (0.10) - Realized gains (losses) for the period (0.47) 0.69 (0.25) (0.12) - Unrealized gains (losses) for the period (4) 0.71 (1.26) 0.26 - Total increase (decrease) from operations 2 (0.32) 1.63 (1.28) 0.21 - (4) (6) (6) (4) - From dividends 4 (0.15) (0.14) (0.17) (9) - From capital gains - - - (4) - Return of capital (0.32) (0.32) (0.29) (0.34) - Total distributions 3 (0.51) (0.52) (0.52) (0.51) - Net Assets, end of period 8.92 9.77 8.47 10.12 - Series EF 5 Net Assets, beginning of period 10.49 8.79 10 - - Total revenue 0.43 0.42 0.36 - - Total expenses (excluding distributions) (0.12) (0.11) (8) - - Realized gains (losses) for the period (0.81) 0.56 (0.20) - - Unrealized gains (losses) for the period 0.18 1.13 (1.04) - - Total increase (decrease) from operations 2 (0.32) 2.00 (0.96) - - (6) (7) (8) - - From dividends 4 (0.21) (0.23) (7) - - From capital gains - - - - - Total distributions 3 (0.27) (0.30) (0.15) - - Net Assets, end of period 9.91 10.49 8.79 - - Series EF5 5 Net Assets, beginning of period 12 8.58 10 - - Total revenue 0.42 0.40 0.32 - - Total expenses (excluding distributions) (0.10) (0.10) (7) - - Realized gains (losses) for the period (1.41) 0.56 8 - - Unrealized gains (losses) for the period 0.63 1.10 (1.33) - - Total increase (decrease) from operations 2 (0.46) 1.96 (1.00) - - (6) (8) (8) - - From dividends 4 (0.19) (0.23) (0.10) - - From capital gains - - - - - Return of capital (0.24) (0.20) (0.20) - - Total distributions 3 (0.49) (0.51) (0.38) - - Net Assets, end of period 9.25 12 8.58 - - 3

March 31, Financial Highlights (continued) Series EX 5 Net Assets, beginning of period 12.69 10.64 12.36 12.85 10.61 Total revenue 0.51 0.49 0.52 0.45 0.54 Total expenses (excluding distributions) (0.26) (0.24) (0.24) (0.25) (0.32) Realized gains (losses) for the period (0.71) 0.52 (0.21) 0.26 (0.11) Unrealized gains (losses) for the period (1) 1.68 (1.44) (0.75) 2.51 Total increase (decrease) from operations 2 (0.47) 2.45 (1.37) (0.29) 2.63 (6) (6) (8) (4) (3) From dividends 4 (0.20) (0.20) (0.23) (6) (0.17) From capital gains - - - (0.57) - Total distributions 3 (0.26) (0.26) (0.31) (0.67) (0.20) Net Assets, end of period 11.98 12.69 10.64 12.36 12.85 Series EX5 5 Net Assets, beginning of period 11.39 9.79 11.53 12.32 10.57 Total revenue 0.45 0.46 0.44 0.42 0.53 Total expenses (excluding distributions) (0.23) (0.22) (0.24) (0.25) (0.31) Realized gains (losses) for the period (0.63) 0.64 (2) 0.28 (6) Unrealized gains (losses) for the period (2) 1.22 (1.50) (0.69) 2.77 Total increase (decrease) from operations 2 (0.43) 2.10 (1.32) (0.24) 2.94 (5) (6) (9) (4) (3) From dividends 4 (0.16) - (0.23) (6) (0.20) From capital gains - - - (0.65) - Return of capital (0.30) (0.42) (0.17) (0.15) (0.41) Total distributions 3 (0.51) (0.48) (0.49) (0.90) (0.64) Net Assets, end of period 10.47 11.39 9.79 11.53 12.32 Series F 5 Net Assets, beginning of period 13.02 10.91 12.66 13.17 10.83 Total revenue 0.52 0.52 0.54 0.46 0.56 Total expenses (excluding distributions) (0.16) (0.15) (0.15) (0.16) (0.19) Realized gains (losses) for the period (0.63) 0.68 (0.20) 0.28 (0.10) Unrealized gains (losses) for the period (6) 1.41 (1.57) (0.84) 2.33 Total increase (decrease) from operations 2 (0.33) 2.46 (1.38) (0.26) 2.59 (9) (9) (0.10) (7) (4) From dividends 4 (0.30) (0.27) (0.31) (0.22) (0.26) From capital gains - - - (0.56) - Total distributions 3 (0.39) (0.36) (0.41) (0.85) (0.30) Net Assets, end of period 12.28 13.02 10.91 12.66 13.17 Series F5 5 Net Assets, beginning of period 11.88 10.11 11.86 12.56 10.64 Total revenue 0.46 0.48 0.50 0.44 0.54 Total expenses (excluding distributions) (0.14) (0.14) (0.14) (0.15) (0.18) Realized gains (losses) for the period (0.37) 0.61 (0.19) 0.24 (0.10) Unrealized gains (losses) for the period (0.23) 1.32 (1.74) (0.73) 2.16 Total increase (decrease) from operations 2 (0.28) 2.27 (1.57) (0.20) 2.42 (7) (9) (0.10) (7) (4) From dividends 4 (0.26) (0.25) (0.29) (0.21) (0.24) From capital gains - - - (0.47) - Return of capital (0.17) (0.18) (0.12) (0.22) (0.36) Total distributions 3 (0.50) (0.52) (0.51) (0.97) (0.64) Net Assets, end of period 11.04 11.88 10.11 11.86 12.56 Series I 5 Net Assets, beginning of period 13.03 10.93 12.67 13.17 10.75 Total revenue 0.41 0.51 0.55 0.46 0.55 Total expenses (excluding distributions) - - - - - Realized gains (losses) for the period 0.55 0.63 (0.23) 0.23 (0.13) Unrealized gains (losses) for the period (0.81) 1.54 (1.53) (0.76) 2.56 Total increase (decrease) from operations 2 0.15 2.68 (1.21) (7) 2.98 (0.12) (0.14) (0.14) (0.10) (8) From dividends 4 (0.15) (0.38) (0.41) (0.36) (0.31) From capital gains - - - (0.56) - Total distributions 3 (0.27) (0.52) (0.55) (1.02) (0.39) Net Assets, end of period 12.54 13.03 10.93 12.67 13.17 Series L 5 Net Assets, beginning of period 12.96 10.87 12.60 13.10 10.82 Total revenue 0.51 0.51 0.54 0.46 0.56 Total expenses (excluding distributions) (0.31) (0.29) (0.29) (0.31) (0.37) Realized gains (losses) for the period (0.60) 0.63 (0.22) 0.29 (0.11) Unrealized gains (losses) for the period (5) 1.50 (1.54) (0.84) 2.38 Total increase (decrease) from operations 2 (0.45) 2.35 (1.51) (0.40) 2.46 (5) (6) (6) (4) (2) From dividends 4 (0.14) (0.18) (0.19) (0.10) (0.15) From capital gains - - - (0.59) - Total distributions 3 (0.19) (0.24) (0.25) (0.73) (0.17) Net Assets, end of period 12.23 12.96 10.87 12.60 13.10 4

March 31, Financial Highlights (continued) Series L5 5 Net Assets, beginning of period 11.15 9.62 11.45 12.29 10.57 Total revenue 0.44 0.45 0.49 0.43 0.53 Total expenses (excluding distributions) (0.26) (0.25) (0.25) (0.28) (0.35) Realized gains (losses) for the period (0.46) 0.60 (0.22) 0.23 (0.13) Unrealized gains (losses) for the period (0.14) 1.25 (1.44) (0.66) 2.30 Total increase (decrease) from operations 2 (0.42) 2.05 (1.42) (0.28) 2.36 (4) (6) (6) (3) (2) From dividends 4 (0.13) (0.16) (0.17) (0.10) (0.14) From capital gains - - - (0.50) - Return of capital (0.32) (0.29) (0.28) (0.36) (0.47) Total distributions 3 (0.49) (0.51) (0.51) (0.99) (0.63) Net Assets, end of period 10.21 11.15 9.62 11.45 12.29 Series O 5 Net Assets, beginning of period 12.83 10.76 12.48 13.00 10.74 Total revenue 0.52 0.52 0.54 0.45 0.53 Total expenses (excluding distributions) (3) (1) (1) (1) (1) Realized gains (losses) for the period (0.73) 0.71 (0.24) 0.28 (8) Unrealized gains (losses) for the period - 1.35 (1.49) (0.78) 2.34 Total increase (decrease) from operations 2 (0.24) 2.57 (1.20) (6) 2.78 (0.11) (0.13) (0.13) (0.10) (8) From dividends 4 (0.38) (0.37) (0.41) (0.35) (0.44) From capital gains - - - (0.64) - Total distributions 3 (0.49) (0.50) (0.54) (1.09) (0.52) Net Assets, end of period 12.11 12.83 10.76 12.48 13.00 Series P 5 Net Assets, beginning of period 10.51 8.80 10.19 10 - Total revenue 0.43 0.44 0.45 0.18 - Total expenses (excluding distributions) (3) (2) (2) (1) - Realized gains (losses) for the period (0.83) 0.68 (5) (0.37) - Unrealized gains (losses) for the period 0.32 0.89 (1.37) 1.17 - Total increase (decrease) from operations 2 (0.11) 1.99 (0.99) 0.97 - (9) (9) (9) (7) - From dividends 4 (0.28) (0.27) (0.29) (1) - From capital gains - - - - - Total distributions 3 (0.37) (0.36) (0.38) (8) - Net Assets, end of period 9.94 10.51 8.80 10.19 - Series P5 5 Net Assets, beginning of period 10.11 8.58 16 10 - Total revenue 0.40 0.41 0.44 0.21 - Total expenses (excluding distributions) (3) (3) (3) (1) - Realized gains (losses) for the period (0.57) 0.56 (0.19) (7) - Unrealized gains (losses) for the period - 1.08 (1.19) (0.43) - Total increase (decrease) from operations 2 (0.20) 2.02 (0.97) (0.30) - (9) (9) (9) (7) - From dividends 4 (0.29) (0.28) (0.30) (2) - From capital gains - - - (4) - Return of capital (0.12) (0.12) (0.11) (0.11) - Total distributions 3 (0.50) (0.49) (0.50) (0.24) - Net Assets, end of period 9.41 10.11 8.58 16 - Series T5 5 Net Assets, beginning of period 11.19 9.65 11.47 12.30 10.57 Total revenue 0.44 0.45 0.48 0.42 0.53 Total expenses (excluding distributions) (0.25) (0.24) (0.25) (0.27) (0.34) Realized gains (losses) for the period (0.45) 0.56 (0.18) 0.28 (0.10) Unrealized gains (losses) for the period (0.11) 1.30 (1.43) (0.79) 2.31 Total increase (decrease) from operations 2 (0.37) 2.07 (1.38) (0.36) 2.40 (4) (6) (7) (4) (2) From dividends 4 (0.14) (0.15) (0.19) (0.10) (0.15) From capital gains - - - (0.55) - Return of capital (0.32) (0.30) (0.26) (0.36) (0.46) Total distributions 3 (0.50) (0.51) (0.52) (1.05) (0.63) Net Assets, end of period 10.25 11.19 9.65 11.47 12.30 1 The per unit data is derived from the Fund's audited annual financial statements. For financial years beginning before April 1, the Fund's financial statements were prepared in accordance with Canadian generally accepted accounting principles ("GAAP"). For financial years beginning after April 1, the Fund's financial statements were prepared in accordance with International Financial Reporting Standards ("IFRS"). Under IFRS, the Net Assets per unit presented in the financial statements is the same as the Net Asset Value calculated for fund pricing purposes. 2 Net Assets and distributions are based on the actual number of units outstanding at the relevant time. The increase/decrease from operations is based on the weighted average number of units outstanding over the financial period. 3 Distributions were paid in cash or reinvested in additional units of the Fund, or both. 4 Dividends qualified for Canadian dividend tax credit, when applicable. 5 The period ended March 31, is a 15-month fiscal period. 5

March 31, Financial Highlights (continued) Series A Total NAV ($) (000's) 1 91,515 142,119 159,090 270,826 288,863 Number of units outstanding (000's) 1 7,479 10,961 14,641 21,483 22,020 Management expense ratio (%) 2, 3 2.37 2.37 2.37 2.37 2.39 2.37 2.37 2.37 2.37 2.40 Trading expense ratio (%) 5 7 0.10 0.13 0.14 0.15 NAV per unit ($) 1 12.24 12.97 10.87 12.61 13.12 Series E Total NAV ($) (000's) 1 5,581 2,649 1,956 2,536 - Number of units outstanding (000's) 1 558 250 220 246 - Management expense ratio (%) 2, 3 2.17 2.16 2.17 2.22-2.17 2.16 2.17 2.22 - Trading expense ratio (%) 5 7 0.10 0.13 0.14 - Portfolio turnover rate (%) 6 13.78 23.56 47.73 79.94 - NAV per unit ($) 1 10 10.59 8.88 10.29 - Series E5 Total NAV ($) (000's) 1 195 239 109 135 - Number of units outstanding (000's) 1 22 24 13 13 - Management expense ratio (%) 2, 3 2.09 2.11 2.20 2.30-2.09 2.11 2.20 2.30 - Trading expense ratio (%) 5 7 0.10 0.13 0.14 - Portfolio turnover rate (%) 6 13.78 23.56 47.73 79.94 - NAV per unit ($) 1 8.92 9.77 8.47 10.12 - Series EF Total NAV ($) (000's) 1 2,731 1,866 1,526 - - Number of units outstanding (000's) 1 275 178 173 - - Management expense ratio (%) 2, 3 1.12 1.12 1.13 - - 1.12 1.12 1.13 - - Trading expense ratio (%) 5 7 0.10 0.13 - - Portfolio turnover rate (%) 6 13.78 23.56 47.73 - - NAV per unit ($) 1 9.91 10.49 8.79 - - Series EF5 Total NAV ($) (000's) 1 548 137 91 - - Number of units outstanding (000's) 1 59 14 11 - - Management expense ratio (%) 2, 3 1.05 1.04 1.04 - - 1.05 1.04 1.04 - - Trading expense ratio (%) 5 7 0.10 0.13 - - Portfolio turnover rate (%) 6 13.78 23.56 47.73 - - NAV per unit ($) 1 9.25 12 8.58 - - Series EX Total NAV ($) (000's) 1 900 947 1,638 4,383 3,704 Number of units outstanding (000's) 1 75 75 154 354 288 Management expense ratio (%) 2, 3 2.06 2.07 2.05 2.03 2.11 2.06 2.07 2.05 2.03 2.11 Trading expense ratio (%) 5 7 0.10 0.13 0.14 0.15 NAV per unit ($) 1 11.98 12.69 10.64 12.36 12.86 Series EX5 Total NAV ($) (000's) 1 1 1 1 1,918 2,137 Number of units outstanding (000's) 1 0.1 0.1 0.1 166 173 Management expense ratio (%) 2, 3 2.14 2.04 2.11 2.07 2.11 2.14 2.04 2.11 2.07 2.11 Trading expense ratio (%) 5 7 0.10 0.13 0.14 0.15 NAV per unit ($) 1 10.47 11.39 9.79 11.53 12.33 Series F Total NAV ($) (000's) 1 15,073 20,287 18,909 35,025 31,502 Number of units outstanding (000's) 1 1,227 1,558 1,734 2,766 2,391 Management expense ratio (%) 2, 3 1.24 1.24 1.25 1.25 1.25 1.24 1.24 1.25 1.25 1.26 Trading expense ratio (%) 5 7 0.10 0.13 0.14 0.15 NAV per unit ($) 1 12.28 13.02 10.91 12.66 13.18 6

March 31, Financial Highlights (continued) Series F5 Total NAV ($) (000's) 1 782 1,387 1,477 4,724 3,981 Number of units outstanding (000's) 1 71 117 146 398 317 Management expense ratio (%) 2, 3 1.22 1.22 1.21 1.22 1.23 1.22 1.22 1.21 1.22 1.23 Trading expense ratio (%) 5 7 0.10 0.13 0.14 0.15 NAV per unit ($) 1 11.04 11.88 10.11 11.86 12.57 Series I Total NAV ($) (000's) 1 16 725 956 1,082 867 Number of units outstanding (000's) 1 1 56 88 85 66 Management expense ratio (%) 2, 3 - - - - - - - - - - Trading expense ratio (%) 5 7 0.10 0.13 0.14 0.15 NAV per unit ($) 1 12.54 13.03 10.93 12.67 13.18 Series L Total NAV ($) (000's) 1 4,821 7,412 9,360 12,577 12,220 Number of units outstanding (000's) 1 394 572 861 998 932 Management expense ratio (%) 2, 3 2.44 2.44 2.44 2.44 2.45 2.44 2.44 2.44 2.44 2.45 Trading expense ratio (%) 5 7 0.10 0.13 0.14 0.15 NAV per unit ($) 1 12.23 12.96 10.87 12.60 13.11 Series O Total NAV ($) (000's) 1 2 2 1 1 1 Number of units outstanding (000's) 1 0.1 0.1 0.1 0.1 0.1 Management expense ratio (%) 2, 3 0.16 9 0.15 9 5 0.17 0.17 0.17 0.11 5 Trading expense ratio (%) 5 7 0.10 0.13 0.14 0.15 NAV per unit ($) 1 12.11 12.83 10.76 12.48 13.01 Series P Total NAV ($) (000's) 1 508 270 194 111 - Number of units outstanding (000's) 1 51 26 22 11 - Management expense ratio (%) 2, 3 0.25 0.25 0.25 0.26-0.25 0.25 0.25 0.26 - Trading expense ratio (%) 5 7 0.10 0.13 0.14 - Portfolio turnover rate (%) 6 13.78 23.56 47.73 79.94 - NAV per unit ($) 1 9.94 10.51 8.80 10.19 - Series P5 Total NAV ($) (000's) 1 1 1 1 1 - Number of units outstanding (000's) 1 0.1 0.1 0.1 0.1 - Management expense ratio (%) 2, 3 0.27 0.29 0.32 0.33-0.27 0.29 0.32 0.33 - Trading expense ratio (%) 5 7 0.10 0.13 0.14 - Portfolio turnover rate (%) 6 13.78 23.56 47.73 79.94 - NAV per unit ($) 1 9.41 10.11 8.58 16 - Series L5 Total NAV ($) (000's) 1 332 558 546 617 534 Number of units outstanding (000's) 1 33 50 57 54 43 Management expense ratio (%) 2, 3 2.40 2.40 2.39 2.40 2.42 2.40 2.40 2.39 2.40 2.42 Trading expense ratio (%) 5 7 0.10 0.13 0.14 0.15 NAV per unit ($) 1 10.21 11.15 9.62 11.45 12.30 7

March 31, Financial Highlights (continued) Series T5 Total NAV ($) (000's) 1 8,112 13,451 15,870 29,923 28,492 Number of units outstanding (000's) 1 791 1,202 1,645 2,608 2,315 Management expense ratio (%) 2, 3 2.32 2.33 2.33 2.33 2.36 2.32 2.33 2.33 2.33 2.37 Trading expense ratio (%) 5 7 0.10 0.13 0.14 0.15 NAV per unit ($) 1 10.25 11.19 9.65 11.47 12.31 1 This information is provided as at each period shown. 2 Management expense ratios are based on total expenses (excluding distributions, commissions, withholding taxes and other portfolio transaction costs) and a proportion of underlying fund expenses (mutual funds & ETFs), where applicable, of each series for the stated period and are expressed as an annualized percentage of each series' daily average NAV during the period. 3 The annual Management Fees and Fixed Administration Fees net of waivers, if any, excluding HST, for the Fund were 2.14% for Series A, 1.99% for Series E, 1.99% for Series E5, 0.99% for Series EF, 0.99% for Series EF5, 1.89% for Series EX, 1.89% for Series EX5, 1.12% for Series F, 1.09% for Series F5, 0% for Series I, 2.16% for Series L, 2.13% for Series L5, 0.15% for Series O, 0.24% for Series P, 0.24% for Series P5 and 2.10% for Series T5. 4 At its sole discretion, the Manager may have waived management fees or absorbed expenses of the Fund. 5 The trading expense ratio represents total commissions incurred directly or indirectly by way of an underlying fund, as applicable, and other portfolio transaction costs expressed as an annualized percentage of the Fund's daily average NAV during the period. 6 The Fund's portfolio turnover rate indicates how actively the fund managers of the Fund's Equity and Fixed Income Portfolios manage their portfolio investments. A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once in the course of the period. The higher a Fund's portfolio turnover rate in a period, the greater the trading costs payable by the Fund in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship or correlation between a high turnover rate and the performance of a Fund. The value of any trades to realign the Fund's portfolio after a fund merger, if any, is excluded from the portfolio turnover rate. Management Fees Management fees paid by the Fund per series are based on applying the annual management fee rate per series to the daily average NAV of each series and are recorded on an accrual basis. The following is a breakdown of major services received by the Fund in consideration of the management fees for the period, as a percentage of the management fee: Management Fees (%) Series Trailer commissions Other Series A FE 53 47 LL First 26 74 LL After 53 47 DSC First 7 years 26 74 DSC After 7 years 53 47 Series E, E5, EX and EX5 FE 61 39 Series EF, EF5, F and - 100 F5 Series I - - Series L and L5 ASC First year - 100 ASC Year 2 and 3 26 74 ASC After 53 47 Series O - - Series P and P5 - - Series T5 FE 53 47 LL First 26 74 LL After 53 47 DSC First 7 years 26 74 DSC After 7 years 53 47 FE - front end; LL - low load; DSC - deferred sales charge; ASC - advisor service charge Other - includes general administration, investment advice and profit. Performance The performance information shown (based on NAV) assumes that all distributions made by the Fund in the periods shown were reinvested in additional units of the Fund. The performance information does not take into account sales, redemption, distribution or other optional charges, or income taxes payable by any investor that would have reduced returns or performance. How the Fund has performed in the past does not necessarily indicate how it will perform in the future. 8

March 31, Performance (continued) Series EF Year-by-Year Returns The bar charts show the Fund's performance for each of the periods indicated. The charts show, in percentage terms, how an investment made on the first day of each period would have increased or decreased by the last day of the period presented. 3 2 1 23.1 Series A 3 2 22.9 21.6-1 -2-10.5 ** -2.8 1-1 8.8-2.8-11.8-4.0 Series EF5 3 2 23.2-2 Series E 3 2 Dec. 2012 * 21.8 1-1 -2-10.5 ** -2.7 1-1 3.4-11.6-3.8 Series EX 3 2 23.3 22.0-2 Series E5 3 2 ** 21.9 1-1 -2 8.8-2.4 Dec. 2012 * -11.5-3.7 1-1 3.4-11.6-3.8 Series EX5 3 2 23.3 22.0-2 ** 1-1 8.8-2.5-10.9-3.8-2 Dec. 2012 * 9

March 31, Performance (continued) Series L Series F 3 2 24.7 23.0 3 2 1 8.8 22.8 21.5 1-1 -2 9.5-1.7 Dec. 2012 * -10.7-2.9-1 -2 Series L5-2.8 Dec. 2012 * -11.8-4.1 Series F5 3 2 24.7 23.0 3 2 1 8.8 22.9 21.6 1-1 -2 9.5-1.6 Dec. 2012 * -10.7-2.9-1 -2 Series O -2.8 Dec. 2012 * -11.8-4.0 Series I 3 26.4 24.3 3 2 26.6 24.5 2 1 10.3 1 10.4-0.6-1.9-0.4-1.7-1 -9.8-1 -2 Dec. 2012 * -9.6-2 Series P Dec. 2012 * 3 24.2 2 1 2.8-2.0-1 -9.9-2 ** 10

March 31, Performance (continued) Series P5 3 2 1 24.2 Annual Compound Returns, Series E Oct.27/14 Series E 2.0 1.2 (3.8) 4.8 4.1 1.7 Benchmark 8.5 6.4 4.8-1 -2 Series T5 3 2 1-1 -2 8.8 23.0 2.8 Dec. 2012 * * Return shown is for the partial period ended December 31. ** Return shown is for the partial period ended March 31. Return shown is for the 15-month period ended March 31,. Annual Compound Returns -9.9 ** -2.7-11.7 21.6-2.0-4.0 The tables show the annual compound returns for the Fund compared to the S&P/TSX Composite (the " ") and the benchmark index (the "Benchmark ") which consists of the S&P/TSX Composite (40%), the S&P 500 (35%) and the FTSE TMX Canada Corporate Bond (25%) for the periods ended March 31,. Annual Compound Returns, Series A Series A 5.2 2.8 1.0 (4.0) Benchmark 11.1 10.3 6.4 4.8 Annual Compound Returns, Series E5 Oct.27/14 Series E5 2.0 1.2 (3.8) 4.8 4.1 1.7 Benchmark 8.5 6.4 4.8 Annual Compound Returns, Series EF Jun.29/15 Series EF 2.5 (2.8) 5.2 1.7 Benchmark 7.8 4.8 Annual Compound Returns, Series EF5 Jun.29/15 Series EF5 2.6 (2.7) 5.2 1.7 Benchmark 7.8 4.8 Annual Compound Returns, Series EX Series EX 5.4 3.1 1.3 (3.7) Benchmark 11.1 10.3 6.4 4.8 Annual Compound Returns, Series EX5 Series EX5 5.5 3.2 1.5 (3.8) Benchmark 11.1 10.3 6.4 4.8 11

March 31, Performance (continued) Annual Compound Returns, Series F Series F 6.4 4.0 2.1 (2.9) Benchmark 11.1 10.3 6.4 4.8 Annual Compound Returns, Series F5 Series F5 6.4 4.0 2.1 (2.9) Benchmark 11.1 10.3 6.4 4.8 Annual Compound Returns, Series I Series I 7.7 5.2 3.4 (1.7) Benchmark 11.1 10.3 6.4 4.8 Annual Compound Returns, Series L Series L 5.1 2.7 0.9 (4.1) Benchmark 11.1 10.3 6.4 4.8 Annual Compound Returns, Series L5 Series L5 5.1 2.7 1.0 (4.0) Benchmark 11.1 10.3 6.4 4.8 Annual Compound Returns, Series P Nov.3/14 Series P 3.6 3.1 (2.0) 4.7 4.1 1.7 Benchmark 8.1 6.4 4.8 Annual Compound Returns, Series P5 Nov.3/14 Series P5 3.6 3.1 (2.0) 4.7 4.1 1.7 Benchmark 8.1 6.4 4.8 Annual Compound Returns, Series T5 Series T5 5.2 2.8 1.0 (4.0) Benchmark 11.1 10.3 6.4 4.8 The S&P/TSX Composite is the premier indicator of market activity for Canadian equity markets, with 95% coverage of Canadian-based, TSX-listed companies. The index includes common stock and income trust units and is designed to offer the representation of a broad benchmark index while maintaining the liquidity characteristics of narrower indices. The S&P 500 includes 500 leading companies in leading industries of the U.S. economy and is widely regarded as the best single gauge of the U.S. equities market. Although the S&P 500 focuses on the large cap segment of the market, its coverage includes approximately 80% of the market. The FTSE TMX Canada Corporate Bond is based on the Corporate sector of the FTSE TMX Canada Universe Bond. The Corporate sector is further divided into sub-sectors based on major industry groups: Financial, Communication, Industrial, Energy, Infrastructure, Real estate, and Securitization. A discussion of the performance of the Fund as compared to the Benchmark is found in the "Results of Operations" section of this report. Annual Compound Returns, Series O Series O 7.6 5.1 3.2 (1.9) Benchmark 11.1 10.3 6.4 4.8 12

March 31, Summary of Investment Portfolio As at March 31, The summary of investment portfolio shown, as a percentage of total NAV, may change due to ongoing portfolio transactions of the Fund and a quarterly update is available on the Manager's website. If the Fund invested in one or more mutual funds, the sector allocation chart shows the Fund's proportionate allocation of the reference funds' investments and where applicable, the Fund's direct investments. Sector Allocation % Canadian High Yield Corporate Bonds 19.36 Financials 19.25 Energy 13.23 Consumer Discretionary 11.13 Materials 9.86 U.S. High Yield Corporate Bonds 7.85 Health Care 5.06 Cash and Other Net Assets 3.72 Foreign High Yield Corporate Bonds 2.86 Canadian Investment Grade Corporate Bonds 2.33 Information Technology 2.16 Telecommunication Services 0.99 Convertible Bonds 0.72 Industrials 0.57 Short-Term Investments 0.34 Utilities 0.32 Foreign Investment Grade Corporate Bonds 0.25 100 The top positions held by the Fund (up to 25) as shown as a percentage of the total NAV: Top Holdings % IA Clarington Strategic Corporate Bond Fund, Series I 38.13 OceanaGold Corp. 5.39 Labrador Iron Ore Royalty Corp. 4.47 Paramount Resources Ltd. 4.35 Martinrea International Inc. 4.22 EnerCare Inc. 3.72 Genworth MI Canada Inc. 3.52 Assured Guaranty Ltd. 3.49 Allstate Corp. 3.34 Birchcliff Energy Ltd. 3.27 Whirlpool Corp. 3.19 Crown Capital Partners Inc. 3.13 The Toronto-Dominion Bank 2.95 Element Financial Corp. 2.82 EnCana Corp. 2.71 Laboratory Corporation of America Holdings 2.61 Celgene Corp. 2.45 International Business Machines Corp. 2.16 TransCanada Corp. 2.10 Cash and Other Net Assets 0.99 Rogers Communications Inc., Class B 0.99 You can obtain the prospectus and other information on the investment funds in which the Fund invests, if any, at www.sedar.com (for Canadian investment funds) and www.sec.gov/edgar (for U.S. investment funds). Forward-Looking Statements This management report of fund performance may contain forward-looking statements which reflect the current expectations of the Manager (or, where indicated, the Portfolio Manager or Portfolio Sub-Advisor or fund manager) regarding the Fund s future growth, results of operations, performance and business prospects and opportunities. These statements reflect the current beliefs of the person to which the statements are attributed with respect to future events and are based on information currently available to that person. Forward looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Fund s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. These factors could include, among other things, general economic, political and market factors, including interest and foreign exchange rates, business competition, changes in government regulations or in tax laws. Please refer to the prospectus for a discussion of some specific risks that are associated with mutual funds. Although the forward-looking statements contained in this report are based upon what management currently believes to be reasonable assumptions, the Manager cannot assure current or prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. 13

Administrative Office: 522 University Avenue, Suite 700 Toronto, Ontario M5G 1Y7 1 800 530-0204 Head Office: 1080 Grande Allée West PO Box 1907, Station Terminus Québec City, Québec G1K 7M3 email: funds@iaclarington.com www.iaclarington.com 091231-01