MD Family of Funds 2015 INTERIM FINANCIAL STATEMENTS

MD Family of Funds 2015 INTERIM FINANCIAL STATEMENTS

A Message Regarding Your Financial Statements Dear MD Family of Funds Investor: As part of our commitment to keeping you informed about your MD Fund investments, please find attached the 2015 interim financial statements. The interim financial statements are produced on a fund-by-fund basis, and your report only includes information on the funds you owned as of June 30, 2015. If you have any questions regarding these documents, please contact your MD advisor or the MD TradeCentre at 1 800 267-2332. We thank you for your continued investment in the MD Family of Funds. Interim Unaudited Financial Statements for the Six-Month Period Ended June 30, 2015 These Interim Unaudited Financial Statements do not contain the Interim Management Report of Fund Performance ( MRFP ) of the investment fund. If you have not received a copy of the Interim MRFP with this report, you may obtain a copy of the Interim MRFP at your request, and at no cost, by calling the toll-free number 1 800 267-2332, by writing to us at MD Financial Management Inc., 1870 Alta Vista Drive, Ottawa ON K1G 6R7, by visiting our website at md.cma.ca or by visiting the SEDAR website at sedar.com. Copies of the Annual Financial Statements or Annual MRFP may also be obtained, at no cost, using any of the methods outlined above. Securityholders may also contact us using one of these methods to request a copy of the investment fund s proxy voting policies and procedures, proxy voting disclosure record or quarterly portfolio disclosure. NOTICE OF NO AUDITOR REVIEW OF THE INTERIM FINANCIAL STATEMENTS MD Financial Management Inc, the Manager of the Fund, appoints independent auditors to audit the Fund s Annual Financial Statements. Under Canadian securities laws (National Instrument 81-106), if an auditor has not reviewed the Interim Financial Statements, this must be disclosed in an accompanying notice. The Fund s independent auditors have not performed a review of these Interim Financial Statements in accordance with standards established by the Canadian Institute of Chartered Accountants. MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies. For a detailed list of these companies, visit md.cma.ca. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. Standard performance data assumes reinvestment of distributions only and does not take into account sales, redemption, distribution or optional charges payable by any securityholder which would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing. You may obtain a copy of the prospectus before investing by calling your MD Advisor or the MD Trade Centre at 1 800 267-2332.

Schedule of Investment Portfolio as at June 30, 2015 (unaudited) (in $000 s except for number of shares) Number of Shares Average Cost ($) Fair Value ($) Number of Shares Average Cost ($) Fair Value ($) FOREIGN EQUITIES Cayman Islands (4.30%) Alibaba Group Holding Limited 23,314 2,503 2,393 Baidu.com, Inc. 17,967 4,164 4,462 Baozun Inc. Sponsored ADR 130,628 1,664 1,755 Tencent Holdings Limited 46,431 896 1,156 Vipshop Holdings Limited ADR 68,822 2,016 1,910 Total for Cayman Islands 11,243 11,676 China (2.61%) China Telecom Corporation Limited Cl. H 2,909,152 2,399 2,130 Great Wall Motor Company Limited Cl. H 401,590 3,269 2,456 Huatai Securities Co., Ltd. Cl. H 705,288 2,739 2,497 Total for China 8,407 7,083 Denmark (2.00%) Novo Nordisk A/S Cl. B 79,760 3,752 5,424 Total for Denmark 3,752 5,424 France (10.62%) Accor SA 88,923 5,015 5,601 AXA SA 124,150 3,911 3,909 Compagnie de Saint-Gobain 96,206 5,502 5,390 Ingenico SA 16,861 2,644 2,470 Suez Environnement Company SA 178,544 4,100 4,145 Total SA 63,153 4,372 3,829 Vinci SA 47,965 3,548 3,462 Total for France 29,092 28,806 Sumitomo Mitsui Trust Holdings, Inc. 924,221 5,183 5,293 Toyota Motor Corporation 93,384 7,461 7,826 Total for Japan 34,948 37,628 Jersey (1.19%) Delphi Automotive PLC 30,331 3,316 3,219 Total for Jersey 3,316 3,219 Mexico (0.71%) America Movil SAB de CV ADR Series L 72,258 1,861 1,921 Total for Mexico 1,861 1,921 Netherlands (7.68%) AerCap Holdings NV 49,243 2,910 2,813 ING Groep NV 473,411 7,940 9,755 NN Group NV 74,045 2,581 2,598 NXP Semiconductors NV 46,436 5,845 5,688 Total for Netherlands 19,276 20,854 South Korea (1.96%) Hyundai Motor Co., Ltd. 8,519 1,263 1,296 Korea Electric Power Corporation 78,474 3,781 4,019 Total for South Korea 5,044 5,315 Spain (3.19%) Amadeus IT Holding SA Series A 54,577 2,300 2,715 Banco Popular Espanol, SA 981,666 6,241 5,936 Total for Spain 8,541 8,651 Germany (4.90%) Daimler AG 33,301 3,858 3,783 Deutsche Boerse AG 31,217 3,192 3,225 Fresenius Medical Care AG & Co. KGaA 34,646 2,968 3,569 Linde AG 11,554 2,795 2,731 Total for Germany 12,813 13,308 Hong Kong (1.18%) China Mobile Limited 199,377 2,771 3,189 Total for Hong Kong 2,771 3,189 Ireland (2.95%) Allergan PLC 21,116 6,517 7,993 Total for Ireland 6,517 7,993 Italy (6.14%) Atlantia SPA 122,183 3,940 3,767 Intesa Sanpaolo SPA 1,679,216 7,586 7,598 Telecom Italia SPA 3,340,193 5,329 5,289 Total for Italy 16,855 16,654 Japan (13.86%) Japan Exchange Group, Inc. 95,095 3,530 3,862 Nippon Telegraph and Telephone Corporation 214,156 8,742 9,700 Shiseido Company, Limited 93,663 2,448 2,658 Sony Corporation 234,394 7,584 8,289 Percentages shown in brackets relate investments at fair value to net assets of the Fund. Sweden (1.24%) Electrolux AB Series B NPV 86,324 3,356 3,373 Total for Sweden 3,356 3,373 Switzerland (5.75%) Novartis AG 31,102 3,133 3,825 Roche Holding AG 10,814 3,548 3,781 UBS Group AG 302,451 7,271 8,005 Total for Switzerland 13,952 15,611 Taiwan (0.93%) Taiwan Semiconductor Manufacturing Company Limited ADR 88,787 2,542 2,515 Total for Taiwan 2,542 2,515 United Kingdom (16.05%) Aviva PLC 684,295 6,669 6,611 BG Group PLC 126,509 2,295 2,629 Compass Group PLC 146,899 2,704 3,034 ITV PLC 1,019,668 4,440 5,267 Liberty Global PLC Series C 99,569 4,610 6,289 London Stock Exchange Group PLC 78,995 3,722 3,673 National Grid PLC 305,677 5,034 4,900 Royal Dutch Shell PLC Cl. A ADR 57,455 4,320 4,086 Standard Chartered PLC 218,360 4,438 4,365 Vodafone Group PLC 59,593 2,596 2,710 Total for United Kingdom 40,828 43,564 1

Schedule of Investment Portfolio as at June 30, 2015 (unaudited) (in $000 s except for number of shares) Number of Shares Average Cost ($) Fair Value ($) United States (6.91%) ishares MSCI EAFE Index Fund 206,646 16,427 16,367 Kansas City Southern 21,011 2,821 2,390 Total for United States 19,248 18,757 Total for Foreign Equities (94.17%) 244,362 255,541 Total Investments (94.17%) $244,362 $255,541 Cash and Other Net Assets (5.83%) 15,819 Total Net Assets Attributable to Holders of Rdeemable Units (100.00%) $271,360 Schedule of Derivative Instruments (in $000 s) Contracts Due Fair Credit and Rate Pay Receive Date Value Counterparty Rating* Forward contracts 1 0.960 545 AUD 523 CAD 9/10/15 1 Toronto-Dominion Bank AA- 1 1.053 285 CAD 300 AUD 9/10/15 3 State Street Bank and Trust Co. AA- 1 1.054 5,977 CAD 6,300 AUD 9/10/15 60 Toronto-Dominion Bank AA- 1 5.517 181 CAD 1,000 DKK 7/22/15 5 State Street Bank and Trust Co. AA- 1 5.377 130 CAD 700 DKK 7/22/15 State Street Bank and Trust Co. AA- 1 5.407 1,367 CAD 7,390 DKK 7/22/15 13 Toronto-Dominion Bank AA- 1 0.743 2,919 CAD 2,170 EUR 7/7/15 101 State Street Bank and Trust Co. AA- 1 0.759 632 CAD 480 EUR 7/7/15 36 Royal Bank of Canada AA- 1 0.756 741 CAD 560 EUR 7/7/15 38 State Street Bank and Trust Co. AA- 1 0.739 501 CAD 370 EUR 7/7/15 14 Royal Bank of Canada AA- 1 0.742 964 CAD 715 EUR 7/7/15 31 Royal Bank of Canada AA- 1 0.740 1,702 CAD 1,260 EUR 7/7/15 52 State Street Bank and Trust Co. AA- 1 0.727 784 CAD 570 EUR 7/7/15 9 Bank of Montreal A+ 1 0.736 4,499 CAD 3,310 EUR 7/7/15 107 Royal Bank of Canada AA- 1 0.740 487 CAD 360 EUR 7/7/15 14 State Street Bank and Trust Co. AA- 1 0.735 565 CAD 415 EUR 7/7/15 13 State Street Bank and Trust Co. AA- 1 0.729 412 CAD 300 EUR 7/7/15 6 Royal Bank of Canada AA- 1 0.723 2,497 CAD 1,805 EUR 7/7/15 15 Royal Bank of Canada AA- 1 0.719 487 CAD 350 EUR 7/7/15 Royal Bank of Canada AA- 1 0.725 22,756 CAD 16,500 EUR 7/7/15 204 Toronto-Dominion Bank AA- 1 6.300 692 CAD 4,360 HKD 9/4/15 10 Royal Bank of Canada AA- 1 6.284 1,114 CAD 7,000 HKD 9/4/15 13 Toronto-Dominion Bank AA- 1 6.291 477 CAD 3,000 HKD 9/4/15 6 State Street Bank and Trust Co. AA- 1 6.328 360 CAD 2,280 HKD 9/4/15 7 State Street Bank and Trust Co. AA- 1 6.281 2,840 CAD 17,840 HKD 9/4/15 33 Toronto-Dominion Bank AA- 1 6.257 944 CAD 5,905 HKD 9/4/15 7 Bank of Montreal A+ 1 3.121 987 CAD 3,080 ILS 8/31/15 32 Bank of Montreal A+ 1 98.787 17,972 CAD 1,775,382 JPY 8/31/15 192 State Street Bank and Trust Co. AA- 1 99.596 1,177 CAD 117,266 JPY 8/31/15 22 State Street Bank and Trust Co. AA- 1 100.254 16,117 CAD 1,615,757 JPY 8/31/15 414 Toronto-Dominion Bank AA- 1 99.740 4,334 CAD 432,269 JPY 8/31/15 89 Bank of Montreal A+ 1 100.100 4,214 CAD 421,854 JPY 8/31/15 102 State Street Bank and Trust Co. AA- 1 6.449 4,195 CAD 27,053 NOK 7/22/15 97 Royal Bank of Canada AA- 1 6.343 1,525 CAD 9,670 NOK 7/22/15 10 Toronto-Dominion Bank AA- 1 6.337 1,338 CAD 8,480 NOK 7/22/15 7 Bank of Montreal A+ 1 3.010 1,392 CAD 4,190 PLN 7/7/15 1 Bank of Montreal A+ 1 3.038 109 CAD 330 PLN 7/7/15 1 State Street Bank and Trust Co. AA- 1 3.013 651 CAD 1,960 PLN 7/7/15 1 Toronto-Dominion Bank AA- 1 3.014 2,060 CAD 6,210 PLN 10/7/15 1 State Street Bank and Trust Co. AA- 1 0.526 1,331 CAD 700 GBP 8/26/15 42 Royal Bank of Canada AA- 1 0.524 1,449 CAD 760 GBP 8/26/15 42 Royal Bank of Canada AA- 1 0.522 2,106 CAD 1,100 GBP 8/26/15 52 Bank of Montreal A+ Contracts Due Fair Credit and Rate Pay Receive Date Value Counterparty Rating* 1 0.525 476 CAD 250 GBP 8/26/15 14 State Street Bank and Trust Co. AA- 1 0.524 248 CAD 130 GBP 8/26/15 7 Bank of Montreal A+ 1 0.525 600 CAD 315 GBP 8/26/15 18 Royal Bank of Canada AA- 1 0.524 2,833 CAD 1,485 GBP 8/26/15 81 Royal Bank of Canada AA- 1 0.525 666 CAD 350 GBP 8/26/15 20 Royal Bank of Canada AA- 1 0.524 401 CAD 210 GBP 8/26/15 11 State Street Bank and Trust Co. AA- 1 0.521 864 CAD 450 GBP 8/26/15 19 Royal Bank of Canada AA- 1 0.524 1,278 CAD 670 GBP 8/26/15 37 Royal Bank of Canada AA- 1 0.528 1,676 CAD 885 GBP 8/26/15 60 State Street Bank and Trust Co. AA- 1 0.515 14,935 CAD 7,690 GBP 8/26/15 155 Toronto-Dominion Bank AA- 1 0.514 1,341 CAD 690 GBP 8/26/15 13 Bank of Montreal A+ 1 0.512 390 CAD 200 GBP 8/26/15 2 Bank of Montreal A+ 1 1.091 1,514 CAD 1,651 SGD 9/18/15 15 State Street Bank and Trust Co. AA- 1 7.093 4,485 CAD 31,814 SEK 7/22/15 302 Royal Bank of Canada AA- 1 7.085 1,523 CAD 10,790 SEK 7/22/15 101 Royal Bank of Canada AA- 1 6.930 144 CAD 1,000 SEK 7/22/15 6 Royal Bank of Canada AA- 1 6.836 304 CAD 2,080 SEK 7/22/15 9 State Street Bank and Trust Co. AA- 1 6.824 147 CAD 1,000 SEK 7/22/15 4 State Street Bank and Trust Co. AA- 1 6.800 208 CAD 1,415 SEK 7/22/15 5 State Street Bank and Trust Co. AA- 1 6.681 2,515 CAD 16,800 SEK 7/22/15 13 Toronto-Dominion Bank AA- 1 6.648 1,254 CAD 8,340 SEK 7/22/15 1 Bank of Montreal A+ 1 0.757 442 CAD 335 CHF 8/31/15 6 State Street Bank and Trust Co. AA- 1 0.754 596 CAD 450 CHF 8/31/15 6 Bank of Montreal A+ 1 0.751 1,864 CAD 1,400 CHF 8/31/15 10 Royal Bank of Canada AA- 1 0.755 424 CAD 320 CHF 8/31/15 4 Royal Bank of Canada AA- 1 0.757 1,354 CAD 1,025 CHF 8/31/15 18 Toronto-Dominion Bank AA- 1 0.756 198 CAD 150 CHF 8/31/15 2 State Street Bank and Trust Co. AA- 1 0.754 265 CAD 200 CHF 8/31/15 2 Royal Bank of Canada AA- 1 0.751 399 CAD 300 CHF 8/31/15 2 State Street Bank and Trust Co. AA- 1 0.748 1,846 CAD 1,380 CHF 8/31/15 2 Royal Bank of Canada AA- 1 0.755 6,262 CAD 4,730 CHF 8/31/15 70 Toronto-Dominion Bank AA- 1 0.811 308 CAD 250 USD 9/11/15 4 State Street Bank and Trust Co. AA- 1 0.812 1,527 CAD 1,240 USD 9/11/15 21 State Street Bank and Trust Co. AA- 1 0.811 308 CAD 250 USD 9/11/15 4 State Street Bank and Trust Co. AA- 1 0.810 9,727 CAD 7,880 USD 9/11/15 112 Toronto-Dominion Bank AA- 1 0.808 14,365 CAD 11,610 USD 9/11/15 131 State Street Bank and Trust Co. AA- 1 0.807 998 CAD 805 USD 9/11/15 8 Bank of Montreal A+ 1 0.000 3,625,000 COP 1,440 USD 7/21/15 62 Bank of Montreal A+ 1 1.409 500 EUR 704 CAD 7/7/15 9 Royal Bank of Canada AA- 1 1.400 2,205 EUR 3,088 CAD 7/7/15 20 Royal Bank of Canada AA- 1 1.400 225 EUR 315 CAD 7/7/15 2 State Street Bank and Trust Co. AA- 1 1.399 14,684 EUR 20,539 CAD 10/7/15 56 Royal Bank of Canada AA- 1 0.161 87,408 HKD 14,092 CAD 9/4/15 15 Bank of Montreal A+ 1 0.016 61,980 INR 966 USD 9/2/15 5 Royal Bank of Canada AA- 1 0.016 50,880 INR 792 USD 9/2/15 3 Bank of Montreal A+ 1 0.000 11,496,230 IDR 851 USD 9/10/15 1 Bank of Montreal A+ 1 0.010 120,106 JPY 1,229 CAD 8/31/15 1 Toronto-Dominion Bank AA- 1 0.080 10,700 MXN 852 CAD 7/7/15 2 State Street Bank and Trust Co. AA- 1 0.080 5,680 MXN 452 CAD 7/7/15 State Street Bank and Trust Co. AA- 1 0.079 16,380 MXN 1,297 CAD 10/7/15 2 Royal Bank of Canada AA- 1 0.032 13,355 TWD 433 USD 9/3/15 Toronto-Dominion Bank AA- 1 0.160 8,850 NOK 1,420 CAD 7/22/15 16 State Street Bank and Trust Co. AA- 1 0.162 1,775 NOK 288 CAD 7/22/15 6 Toronto-Dominion Bank AA- 1 0.160 665 NOK 106 CAD 7/22/15 1 Bank of Montreal A+ 1 0.335 270 PLN 90 CAD 7/7/15 1 Toronto-Dominion Bank AA- 1 0.001 2,370,335 KRW 2,136 USD 8/31/15 18 State Street Bank and Trust Co. AA- 1 0.001 790,170 KRW 709 USD 8/31/15 2 Royal Bank of Canada AA- 1 0.001 1,773,280 KRW 1,593 USD 8/31/15 7 Royal Bank of Canada AA- 1 0.151 1,700 SEK 256 CAD 7/22/15 1 State Street Bank and Trust Co. AA- 1 0.151 9,310 SEK 1,408 CAD 7/22/15 7 Royal Bank of Canada AA- 1 0.151 1,430 SEK 215 CAD 7/22/15 Toronto-Dominion Bank AA- 1 1.343 250 CHF 336 CAD 8/31/15 1 Royal Bank of Canada AA- 1 64.950 456 USD 29,590 INR 9/2/15 4 Canadian Imperial Bank of Commerce A+ Percentages shown in brackets relate investments at fair value to net assets of the Fund. 2

Schedule of Investment Portfolio as at June 30, 2015 (unaudited) (in $000 s except for number of shares) Contracts Due Fair Credit and Rate Pay Receive Date Value Counterparty Rating* 1 64.910 3,269 USD 212,175 INR 9/2/15 30 State Street Bank and Trust Co. AA- 1 64.755 347 USD 22,500 INR 9/2/15 2 Bank of Montreal A+ 1 13,754.000 3,508 USD 48,246,095 IDR 9/10/15 73 State Street Bank and Trust Co. AA- 1 30.850 19 USD 600 TWD 9/3/15 Royal Bank of Canada AA- 1 1,125.500 44 USD 50,000 KRW 8/31/15 Royal Bank of Canada AA- 1 1,117.400 49 USD 55,000 KRW 8/31/15 Bank of Montreal A+ 1 1,119.000 18 USD 20,000 KRW 8/31/15 Bank of Montreal A+ 1 1,118.700 49 USD 54,295 KRW 8/31/15 Canadian Imperial Bank of Commerce A+ 3,545 1 0.950 400 AUD 380 CAD 9/10/15 (4) Royal Bank of Canada AA- 1 0.949 300 AUD 285 CAD 9/10/15 (3) Toronto-Dominion Bank AA- 1 0.952 150 AUD 143 CAD 9/10/15 (1) State Street Bank and Trust Co. AA- 1 0.953 3,090 AUD 2,944 CAD 9/10/15 (17) State Street Bank and Trust Co. AA- 1 0.942 2,660 AUD 2,507 CAD 9/10/15 (42) State Street Bank and Trust Co. AA- 1 0.947 365 AUD 346 CAD 9/10/15 (4) Bank of Montreal A+ 1 1.042 12,366 CAD 12,886 AUD 9/10/15 (18) Royal Bank of Canada AA- 1 1.042 5,747 CAD 5,990 AUD 9/10/15 (7) Bank of Montreal A+ 1 0.717 20,487 CAD 14,684 EUR 7/7/15 (54) Royal Bank of Canada AA- 1 0.716 377 CAD 270 EUR 10/7/15 Toronto-Dominion Bank AA- 1 6.200 1,613 CAD 10,000 HKD 9/4/15 (3) Toronto-Dominion Bank AA- 1 3.021 1,013 CAD 3,060 ILS 8/31/15 (1) Bank of Montreal A+ 1 12.564 1,304 CAD 16,380 MXN 7/7/15 (2) Royal Bank of Canada AA- 1 1.063 249 CAD 265 NZD 7/15/15 (26) Canadian Imperial Bank of Commerce A+ 1 6.301 238 CAD 1,500 NOK 7/22/15 Royal Bank of Canada AA- 1 6.253 160 CAD 1,000 NOK 7/22/15 (1) State Street Bank and Trust Co. AA- 1 6.226 83 CAD 515 NOK 7/22/15 (1) State Street Bank and Trust Co. AA- 1 6.274 159 CAD 1,000 NOK 7/22/15 (1) State Street Bank and Trust Co. AA- 1 6.623 226 CAD 1,500 SEK 7/22/15 (1) State Street Bank and Trust Co. AA- 1 0.176 5,323 DKK 936 CAD 7/22/15 (57) Bank of Montreal A+ 1 0.182 1,230 DKK 224 CAD 7/22/15 (6) Bank of Montreal A+ 1 0.185 6,040 DKK 1,120 CAD 7/22/15 (8) State Street Bank and Trust Co. AA- 1 0.185 3,220 DKK 595 CAD 7/22/15 (6) State Street Bank and Trust Co. AA- 1 1.367 720 EUR 984 CAD 7/7/15 (18) Bank of Montreal A+ 1 1.371 1,365 EUR 1,872 CAD 7/7/15 (27) Bank of Montreal A+ 1 1.361 190 EUR 259 CAD 7/7/15 (6) State Street Bank and Trust Co. AA- 1 1.372 420 EUR 576 CAD 7/7/15 (8) Toronto-Dominion Bank AA- 1 1.356 550 EUR 746 CAD 7/7/15 (19) State Street Bank and Trust Co. AA- 1 1.336 150 EUR 200 CAD 7/7/15 (8) Bank of Montreal A+ 1 1.313 350 EUR 460 CAD 7/7/15 (28) State Street Bank and Trust Co. AA- 1 1.325 310 EUR 411 CAD 7/7/15 (21) State Street Bank and Trust Co. AA- 1 1.317 490 EUR 645 CAD 7/7/15 (37) State Street Bank and Trust Co. AA- 1 1.315 255 EUR 335 CAD 7/7/15 (20) Royal Bank of Canada AA- 1 1.321 185 EUR 244 CAD 7/7/15 (13) Royal Bank of Canada AA- 1 1.361 30 EUR 41 CAD 7/7/15 (1) State Street Bank and Trust Co. AA- 1 1.366 800 EUR 1,093 CAD 7/7/15 (21) Royal Bank of Canada AA- 1 1.370 2,660 EUR 3,645 CAD 7/7/15 (56) State Street Bank and Trust Co. AA- 1 1.360 1,940 EUR 2,639 CAD 7/7/15 (60) Toronto-Dominion Bank AA- 1 1.349 590 EUR 796 CAD 7/7/15 (25) Royal Bank of Canada AA- 1 1.360 1,640 EUR 2,230 CAD 7/7/15 (52) State Street Bank and Trust Co. AA- 1 1.365 250 EUR 341 CAD 7/7/15 (7) Royal Bank of Canada AA- 1 1.363 1,770 EUR 2,413 CAD 7/7/15 (50) State Street Bank and Trust Co. AA- 1 1.360 355 EUR 483 CAD 7/7/15 (11) State Street Bank and Trust Co. AA- 1 1.359 1,880 EUR 2,554 CAD 7/7/15 (62) Royal Bank of Canada AA- 1 1.353 109 EUR 148 CAD 7/7/15 (4) Bank of Montreal A+ 1 1.363 1,100 EUR 1,500 CAD 7/7/15 (31) Bank of Montreal A+ 1 1.390 700 EUR 973 CAD 7/7/15 (1) State Street Bank and Trust Co. AA- 1 1.388 330 EUR 458 CAD 7/7/15 (1) State Street Bank and Trust Co. AA- 1 1.385 390 EUR 540 CAD 7/7/15 (2) State Street Bank and Trust Co. AA- 1 1.388 5,760 EUR 7,995 CAD 7/7/15 (20) Bank of Montreal A+ 1 1.382 10,310 EUR 14,248 CAD 7/7/15 (98) State Street Bank and Trust Co. AA- 1 1.378 5,120 EUR 7,056 CAD 7/7/15 (68) State Street Bank and Trust Co. AA- 1 1.384 200 EUR 277 CAD 7/7/15 (2) Bank of Montreal A+ Contracts Due Fair Credit and Rate Pay Receive Date Value Counterparty Rating* 1 0.159 1,901 HKD 302 CAD 9/4/15 (5) Royal Bank of Canada AA- 1 0.160 30,060 HKD 4,806 CAD 9/4/15 (35) Bank of Montreal A+ 1 0.159 16,210 HKD 2,581 CAD 9/4/15 (29) State Street Bank and Trust Co. AA- 1 0.160 5,630 HKD 898 CAD 9/4/15 (8) State Street Bank and Trust Co. AA- 1 0.000 9,493,790 IDR 701 USD 9/10/15 (1) Toronto-Dominion Bank AA- 1 0.327 785 ILS 256 CAD 8/31/15 (3) State Street Bank and Trust Co. AA- 1 0.326 650 ILS 212 CAD 8/31/15 (3) State Street Bank and Trust Co. AA- 1 0.010 212,795 JPY 2,155 CAD 8/31/15 (23) Bank of Montreal A+ 1 0.010 129,093 JPY 1,304 CAD 8/31/15 (17) State Street Bank and Trust Co. AA- 1 0.010 96,000 JPY 967 CAD 8/31/15 (15) Royal Bank of Canada AA- 1 0.010 108,101 JPY 1,087 CAD 8/31/15 (20) Royal Bank of Canada AA- 1 0.010 61,827 JPY 614 CAD 8/31/15 (18) State Street Bank and Trust Co. AA- 1 0.010 70,479 JPY 707 CAD 8/31/15 (14) Royal Bank of Canada AA- 1 0.010 78,307 JPY 782 CAD 8/31/15 (19) Toronto-Dominion Bank AA- 1 0.010 2,007,000 JPY 20,066 CAD 8/31/15 (468) State Street Bank and Trust Co. AA- 1 0.010 35,550 JPY 360 CAD 8/31/15 (4) Bank of Montreal A+ 1 0.032 21,770 TWD 705 USD 9/3/15 (1) Toronto-Dominion Bank AA- 1 0.032 11,305 TWD 365 USD 9/3/15 (2) Canadian Imperial Bank of Commerce A+ 1 0.157 1,580 NOK 248 CAD 7/22/15 (3) State Street Bank and Trust Co. AA- 1 0.158 4,300 NOK 679 CAD 7/22/15 (3) State Street Bank and Trust Co. AA- 1 0.157 3,810 NOK 599 CAD 7/22/15 (5) State Street Bank and Trust Co. AA- 1 0.332 6,210 PLN 2,063 CAD 7/7/15 (1) State Street Bank and Trust Co. AA- 1 1.901 2,992 GBP 5,686 CAD 8/26/15 (185) State Street Bank and Trust Co. AA- 1 1.913 1,690 GBP 3,233 CAD 8/26/15 (83) State Street Bank and Trust Co. AA- 1 1.943 5,770 GBP 11,208 CAD 8/26/15 (114) State Street Bank and Trust Co. AA- 1 1.946 2,020 GBP 3,931 CAD 8/26/15 (33) State Street Bank and Trust Co. AA- 1 0.919 740 SGD 680 CAD 9/18/15 (5) Toronto-Dominion Bank AA- 1 0.146 1,000 SEK 146 CAD 7/22/15 (5) State Street Bank and Trust Co. AA- 1 0.147 3,640 SEK 536 CAD 7/22/15 (11) Toronto-Dominion Bank AA- 1 0.147 1,995 SEK 293 CAD 7/22/15 (7) Bank of Montreal A+ 1 0.146 4,500 SEK 659 CAD 7/22/15 (18) Royal Bank of Canada AA- 1 0.147 3,280 SEK 481 CAD 7/22/15 (13) Royal Bank of Canada AA- 1 0.149 1,000 SEK 149 CAD 7/22/15 (2) Royal Bank of Canada AA- 1 0.150 500 SEK 75 CAD 7/22/15 (1) Royal Bank of Canada AA- 1 0.149 3,590 SEK 533 CAD 7/22/15 (7) State Street Bank and Trust Co. AA- 1 0.150 8,490 SEK 1,272 CAD 7/22/15 (6) State Street Bank and Trust Co. AA- 1 0.149 6,770 SEK 1,006 CAD 7/22/15 (13) State Street Bank and Trust Co. AA- 1 1.314 310 CHF 407 CAD 8/31/15 (8) Bank of Montreal A+ 1 1.315 2,381 CHF 3,130 CAD 8/31/15 (57) Royal Bank of Canada AA- 1 1.331 300 CHF 399 CAD 8/31/15 (2) State Street Bank and Trust Co. AA- 1 1.321 1,990 CHF 2,628 CAD 8/31/15 (36) State Street Bank and Trust Co. AA- 1 1.326 2,090 CHF 2,770 CAD 8/31/15 (28) State Street Bank and Trust Co. AA- 1 1.243 3,559 USD 4,426 CAD 9/11/15 (18) Bank of Montreal A+ 1 1.234 490 USD 604 CAD 9/11/15 (7) State Street Bank and Trust Co. AA- 1 1.231 300 USD 369 CAD 9/11/15 (5) Royal Bank of Canada AA- 1 1.234 1,015 USD 1,252 CAD 9/11/15 (15) Toronto-Dominion Bank AA- 1 1.225 80 USD 98 CAD 9/11/15 (2) State Street Bank and Trust Co. AA- 1 1.230 270 USD 332 CAD 9/11/15 (5) Royal Bank of Canada AA- 1 1.240 1,260 USD 1,562 CAD 9/11/15 (11) Bank of Montreal A+ 1 1.235 17,440 USD 21,534 CAD 9/11/15 (242) State Street Bank and Trust Co. AA- 1 2,384.100 763 USD 1,819,025 COP 7/21/15 (81) State Street Bank and Trust Co. AA- 1 2,376.000 99 USD 235,000 COP 7/21/15 (11) State Street Bank and Trust Co. AA- 1 2,392.000 657 USD 1,570,975 COP 7/21/15 (67) Royal Bank of Canada AA- 1 64.242 2,042 USD 131,150 INR 9/2/15 (8) Bank of Montreal A+ 1 64.240 1,748 USD 112,300 INR 9/2/15 (7) Bank of Montreal A+ 1 13,468.000 2,009 USD 27,061,550 IDR 9/10/15 (11) Canadian Imperial Bank of Commerce A+ 1 13,521.000 1,546 USD 20,902,010 IDR 9/10/15 (1) State Street Bank and Trust Co. AA- 1 1,116.250 13 USD 15,000 KRW 8/31/15 Royal Bank of Canada AA- 1 1,107.100 18 USD 20,000 KRW 8/31/15 State Street Bank and Trust Co. AA- 1 1,105.620 36 USD 40,000 KRW 8/31/15 (1) Canadian Imperial Bank of Commerce A+ 1 1,113.900 45 USD 50,000 KRW 8/31/15 Bank of Montreal A+ (2,863) Total forward contracts 682 Percentages shown in brackets relate investments at fair value to net assets of the Fund. 3

Schedule of Investment Portfolio as at June 30, 2015 (unaudited) (in $000 s except for number of shares) Contracts Due Fair Credit and Rate Pay Receive Date Value Counterparty Rating* Spot Contracts 1 99.320 1,085 CAD 107,785 JPY 7/2/15 16 Brown Brothers Harriman & Co A+ 1 98.457 730 CAD 71,838 JPY 7/3/15 4 Brown Brothers Harriman & Co A+ 20 1 0.801 1,940 CAD 1,554 USD 7/6/15 (2) Brown Brothers Harriman & Co A+ 1 1.376 1,329 EUR 1,830 CAD 7/2/15 (20) Brown Brothers Harriman & Co A+ 1 1.387 112 EUR 156 CAD 7/2/15 (1) Brown Brothers Harriman & Co A+ 1 0.161 179 HKD 29 CAD 7/2/15 State Street Bank and Trust Co. AA- 1 0.160 7,569 HKD 1,213 CAD 7/3/15 (5) Brown Brothers Harriman & Co A+ 1 1.232 275 USD 339 CAD 7/2/15 (4) Brown Brothers Harriman & Co A+ (32) Total spot contracts (12) Total forward and spot contracts $670 Futures Contracts Unrealized Counter Credit Notional Gain (Loss) party Rating* Description Amount CAD $ Goldman Sachs USD A MSCI EAFE E-Mini Index Futures 2,517 (67) Net unrealized gain (loss) futures contracts $(67) Total for Schedule of Derivative Instruments $603 * Source: Standard & Poor s Credit Rating Agency Percentages shown in brackets relate investments at fair value to net assets of the Fund. 4

Financial Statements Statement of Financial Position (unaudited ) (in $000 s except for units outstanding and per unit amounts) June 30, 2015 December 31, 2014 Assets Current assets Investments $ 255,541 $ 168,874 Cash 16,354 9,098 Dividends receivable 945 329 Unrealized gain on derivatives 2,137 1,169 Net margin due from broker on future contracts 180 68 Receivable for investment transactions 4,085 34 Receivable for securities lending transactions 1 1 Subscriptions receivable 16 215 279,259 179,788 Liabilities Current liabilities Payable for investment transactions 6,342 1,273 Redemptions payable 23 183 Unrealized loss on derivatives 1,534 1,592 7,899 3,048 Net assets attributable to holders of redeemable units $ 271,360 $ 176,740 Net assets attributable to holders of redeemable units per Series Series A $ 113,810 $ 107,580 Series I $ 157,492 $ 69,113 Series T $ 58 $ 47 Number of redeemable units outstanding (see Supplementary Schedules) Series A 11,876,758 12,679,151 Series I 16,184,378 8,079,471 Series T 5,466 4,831 Net assets attributable to holders of redeemable units per unit, per Series Series A $ 9.58 $ 8.48 Series I $ 9.73 $ 8.55 Series T $ 10.70 $ 9.69 Statement of Comprehensive Income (unaudited ) (in $000 s except for per unit amounts) Six months ended June 30, 2015 June 30, 2014 Income Net gain (loss) on investments Dividends $ 2,719 $ 2,139 Interest for distribution purposes 26 21 Net realized gain (loss) on sale of investments 25,421 11,812 Change in unrealized appreciation (depreciation) of investments (1,713) (13,615) Net gain (loss) on investments 26,453 357 Net gain (loss) on derivatives Net realized gain (loss) on derivative instruments (2,275) 1,961 Change in unrealized (appreciation) depreciation of derivative instruments 1,026 (806) Net gain (loss) on derivatives (1,249) 1,155 Other income Foreign exchange gain (loss) on cash 253 (3) Early redemption fee 1 Securities lending (see Supplementary Schedules) 37 29 Total other income 290 27 Total income (loss) 25,494 1,539 Expenses Management fees (Note 4) 1,043 1,130 Administration fees 127 137 Withholding tax on foreign income 263 225 Transaction costs 604 147 Total expenses 2,037 1,639 Increase (decrease) in net assets attributable to holders of redeemable units $ 23,457 $ (100) Increase (decrease) in net assets attributable to holders of redeemable units per Series Series A $ 14,214 $ (286) Series I $ 9,238 $ 185 Series T $ 5 $ 1 Increase (decrease) in net assets attributable to holders of redeemable units per unit, per Series Series A $ 1.16 $ (0.02) Series I $ 1.20 $ 0.11 Series T $ 1.12 $ (0.06) 5

Financial Statements Statement of Changes in Net Assets Attributable to Holders of Redeemable Units ( Net assets ) ( unaudited ) (in $000 s) Six months ended June 30, 2015 June 30, 2014 SERIES A Net assets beginning of period $ 107,580 $ 132,264 Add (deduct) changes during the period: Operations Increase (decrease) in net assets attributable to holders of redeemable units 14,214 (286) Redeemable unit transactions Proceeds from issue of redeemable units 4,934 5,778 Cash paid for redemption of redeemable units (12,915) (18,826) Units issued on reinvestment of distributions 345 (7,636) (13,048) Distributions From net investment income (348) Net assets end of period $ 113,810 $ 118,930 SERIES I Net assets beginning of period $ 69,113 $ 22,914 Add (deduct) changes during the period: Operations Increase (decrease) in net assets attributable to holders of redeemable units 9,238 185 Redeemable unit transactions Proceeds from issue of redeemable units 98,210 849 Cash paid for redemption of redeemable units (19,069) (18,120) Units issued on reinvestment of distributions 660 201 79,801 (17,070) Distributions From net investment income (660) (201) Six months ended June 30, 2015 June 30, 2014 SERIES T Net assets beginning of period $ 47 $ 70 Add (deduct) changes during the period: Operations Increase (decrease) in net assets attributable to holders of redeemable units 5 1 Redeemable unit transactions Proceeds from issue of redeemable units 12 8 Cash paid for redemption of redeemable units (5) (14) 7 (6) Distributions Return of capital (1) (2) Net assets end of period $ 58 $ 63 TOTAL FUND Net assets beginning of period $ 176,740 $ 155,248 Add (deduct) changes during the period: Operations Increase (decrease) in net assets attributable to holders of redeemable units 23,457 (100) Redeemable unit transactions Proceeds from issue of redeemable units 103,156 6,635 Cash paid for redemption of redeemable units (31,989) (36,960) Units issued on reinvestment of distributions 1,005 201 72,172 (30,124) Distributions From net investment income (1,008) (201) Return of capital (1) (2) (1,009) (203) Net assets end of period $ 271,360 $ 124,821 Net assets end of period $ 157,492 $ 5,828 6

Financial Statements Statement of Cash Flows (unaudited) (in $000 s) Six months ended June 30, 2015 June 30, 2014 Cash flows from (used in) operating activities Increase (decrease) in net assets attributable to holders of redeemable units $ 23,457 $ (100) Adjustments for: Proceeds from sale of investments 178,605 78,264 Purchase of investments (240,546) (52,755) Unrealized foreign exchange (gain) loss on cash (32) 17 Net realized (gain) loss on sale of investments (25,421) (11,812) Change in unrealized (appreciation) depreciation of investments 1,713 13,615 Change in unrealized (appreciation) depreciation of derivative instruments (1,026) 806 Net change in non-cash working capital (728) (384) Net cash from (used in) operating activities (63,978) 27,651 Cash flows from (used in) financing activities Proceeds from issue of redeemable units 103,355 6,630 Distributions to holders of redeemable units, net of reinvested distribution (4) (2) Cash paid for redemption of redeemable units (32,149) (36,931) Net cash from (used in) financing activities 71,202 (30,303) Unrealized foreign exchange gain (loss) on cash 32 (17) Net increase (decrease) in cash during the period 7,256 (2,669) Cash, beginning of period 9,098 8,988 Cash, end of period $ 16,354 $ 6,319 Interest received 26 21 Dividends received, net of withholding taxes 1,840 1,530 7

Financial Statements Supplementary Schedules (unaudited) Redeemable Unit Transactions For the periods ended June 30 2015 2014 SERIES A Outstanding, beginning of period 12,679,151 15,438,343 Issued 553,293 674,014 Redeemed (1,355,686) (2,193,189) Outstanding, end of period 11,876,758 13,919,168 SERIES I Outstanding, beginning of period 8,079,471 2,608,368 Issued 10,049,418 120,366 Redeemed (1,944,511) (2,046,561) Outstanding, end of period 16,184,378 682,173 SERIES T Outstanding, beginning of period 4,831 6,803 Issued 1,137 808 Redeemed (502) (1,291) Outstanding, end of period 5,466 6,320 Soft Dollar Commissions The term soft dollar is used to describe a widely accepted business practice by which the investment advisors receive various benefits from the broker through the course of a normal business relationship. Such benefits may be in the form of research or other materials that aid in the investment process, thus contributing to the long-term realization of returns for the unitholders. The soft dollar portion of the commissions paid to dealers for executing portfolio transactions is not ascertainable for the first six months of 2015 and 2014. Securities on Loan (in $000 s) June 30, 2015 December 31, 2014 Fair value of securities loaned $ $ Fair value of collateral (non-cash) $ $ State Street Bank and Trust Co is entitled to receive payments out of the gross amount generated from the securities lending transactions of the Fund and bears all operational costs directly related to securities lending as well as the cost of borrower default indemnification. The table below sets out a reconciliation of the gross amount generated from the securities lending transactions of the Fund to the revenue from securities lending disclosed under securities lending income in the Fund s statements of comprehensive income as at June 30, 2015 and June 30, 2014. June 30, 2015 June 30, 2014 Gross amount generated from the securities lending transactions $ 42 $ 34 Amounts paid to State Street Bank and Trust Co $ (5) $ (5) Net securities lending income as reported in the Statement of Comprehensive Income $ 37 $ 29 Fees As at June 30 2015 2014 Maximum annualized management fee Series A 1.60% 1.65% Series I Series T 1.60% 1.65% Annual fixed administration fee rate Series A 0.20% 0.20% Series I Series T 0.20% 0.20% Amounts Subject to Master Netting Arrangements (in $000 s) In the normal course of business, the Fund enters into various enforceable master netting arrangements with its derivative counterparties. The following tables present the Fund s financial assets and liabilities subject to enforceable master netting arrangements. The tables are presented by financial instrument type. Financial assets Gross asset Gross liabilities offset Net amounts presented Financial instruments eligible for offset Jun. 30, 2015 Derivative assets $3,565 $1,428 $2,137 $463 $1,674 Dec. 31, 2014 Derivative assets $1,641 $472 $1,169 $970 $199 Financial liabilities Gross liability Gross assets offset Net amounts presented Financial instruments eligible for offset Jun. 30, 2015 Derivative liabilities $2,962 $1,428 $1,534 $463 $1,071 Dec. 31, 2014 Derivative liabilities $2,064 $472 $1,592 $970 $622 Net Net 8

Financial Statements Supplementary Schedules (unaudited) Tax Loss Carry Forwards As at June 30 (in $000 s) 2015 Net capital loss carried forward $ 27,085 Non-capital losses expiring: 2015 $ 2016 in 2017 and thereafter Total $ The Fund qualifies as a mutual fund trust under the provisions of the Income Tax Act (Canada) and, accordingly, is subject to tax on its income for the year, including net realized capital gains which is not paid or payable to its unitholders as at the end of the year. It is the intention of management that all annual net investment income and sufficient net realized taxable capital gains will be distributed to unitholders annually by December 31, such that there are no Canadian income taxes payable by the Fund. As a result, the Fund does not record income taxes. Since the Fund does not record income taxes, no benefit has been recorded by the Fund in its financial statements in respect of its unused losses as at June 30, 2015. The Fund has accumulated net realized capital losses of $27,085 available for utilization against net realized capital gains. Capital losses have no expiry. Non-capital losses realized in 2005 can be carried forward for up to ten years. Non-capital losses realized in 2006 and after can be carried forward for up to twenty years. 9

Financial Instruments Risks (unaudited) (in $000 s) Financial Instruments MD International Growth Fund (the Fund ) invests in a diversified portfolio of global equity securities as well as forward and futures contracts, as shown in the Schedule of Investment Portfolio. The Fund invests excess cash in high grade short-term notes with maturities of less than 1 year. These investments expose the Fund to risks associated with financial instruments. The Fund s exposure and sensitivity to these risks are presented below. A description of the risks and how the Fund manages these risks is discussed in Note 7 of the Notes to the Financial Statements. Credit Risk The Fund s credit risk is concentrated in investments in short-term debt and derivative instruments. The Fund s maximum exposure to credit risk from short-term debt is the carrying value as presented on the Schedule of Portfolio Investments and the cash as shown on the Statement of Financial Position. The Fund s maximum exposure to credit risk from derivative instruments is the unrealized gain as presented in the Schedule of Derivative Instruments. All forward contracts are with counterparties with credit ratings of A+ to AA-. As at June 30, 2015 and December 31, 2014, the Fund does not have investments in debt instruments and therefore, does not have exposure to credit risk. Currency Risk Exposures to foreign currencies as at June 30, 2015 and December 31, 2014 are presented in the table below. Short-term investments, which are monetary in nature, are included in the Investments at Fair Value column. Currency Cash and Other Net Assets Attributable to Holders of Investments Redeemable at Units Fair Value Derivative Exposure Net Currency Exposure Percentage of Net Assets Attributable to Holders of Redeemable Units June 30, 2015 U.S. Dollar 1,209 66,511 (8,989) 58,731 21.64% European Euro 2,199 79,771 (22,113) 59,857 22.06% Australian Dollar 17,216 17,216 6.34% British Pound 140 30,479 6,698 37,317 13.75% Danish Krone 7 5,424 (1,255) 4,176 1.54% Hong Kong Dollar 1,273 11,429 (15,874) (3,172) (1.17%) Indian Rupee 7,650 7,650 2.82% Indonesian Rupiah 6,943 6,943 2.56% Israeli Shekel 1,557 1,557 0.57% Japanese Yen (1,835) 37,628 16,601 52,394 19.31% Mexican Peso (1,295) (1,295) (0.48%) New Taiwan Dollar (1,855) (1,855) (0.68%) New Zealand Dollar 224 224 0.08% Norwegian Krone 4,480 4,480 1.65% Polish Zloty 2,061 2,061 0.76% Singapore Dollar 843 843 0.31% South Korean Won 5,315 (5,174) 141 0.05% Swedish Krona 3,373 4,143 7,516 2.77% Swiss Franc 187 15,611 3,975 19,773 7.29% Total 3,180 255,541 15,836 274,557 101.17% Currency Cash and Other Net Assets Attributable to Holders of Investments Redeemable at Units Fair Value Derivative Exposure Net Currency Exposure Percentage of Net Assets Attributable to Holders of Redeemable Units December 31, 2014 U.S. Dollar 1,342 40,303 (11,958) 29,687 16.80% European Euro 78 37,273 33 37,384 21.15% Australian Dollar 10,155 10,155 5.75% Brazilian Real 1,253 (2,876) (1,623) (0.92%) British Pound (1,087) 31,950 3,142 34,005 19.24% Danish Krone 3,771 (1,339) 2,432 1.38% Hong Kong Dollar 16,773 (14,312) 2,461 1.39% Indian Rupee (882) (882) (0.50%) Indonesian Rupiah 2,621 2,621 1.48% Israeli Shekel 948 948 0.54% Japanese Yen 3 15,849 14,624 30,476 17.24% Malaysian Ringgit 2,144 2,144 1.21% New Turkish Lira 2,667 2,667 1.51% New Zealand Dollar 303 303 0.17% Norwegian Krone 2,394 2,394 1.35% Singapore Dollar 2,598 2,598 1.47% South Korean Won 1,463 (1,470) (7) Swedish Krona 3,502 1,573 5,075 2.87% Swiss Franc 217 16,737 (1,446) 15,508 8.77% Total 553 168,874 8,919 178,346 100.90% As at June 30, 2015, if the Canadian Dollar had strengthened against all other currencies by 10%, the Net Assets Attributable to Holders of Redeemable Units of the Fund could have decreased by approximately $27,456, or 10.12% of Net Assets Attributable to Holders of Redeemable Units (December 31, 2014 $17,835, or 10.09%). Conversely, had the Canadian Dollar weakened against all other currencies by 10%, the Net Assets Attributable to Holders of Redeemable Units of the Fund could have increased by approximately $27,456, or 10.12% of Net Assets Attributable to Holders of Redeemable Units (December 31, 2014 $17,835, or 10.09%). These sensitivities are estimates. Actual results may vary and the variance may be material. Interest Rate Risk The majority of the Fund s financial assets are non-interest bearing. The maturity dates of the interest bearing assets held by the Fund are less than 1 year. Therefore, the Fund s exposure to interest rate risk is not significant. Liquidity Risk The Fund s financial liabilities are all due within one year. Redeemable units are redeemable on demand at the holder s option; however, the Fund does not expect the contractual maturity will be representative of the actual cash outflows, as holders of these instruments typically retain them for a longer period. 10

Financial Instruments Risks (unaudited) (in $000 s) Other Price Risk As at June 30, 2015, 94.2% (December 31, 2014 95.5%) of the Fund s Net Assets Attributable to Holders of Redeemable Units were invested in equity financial instruments traded in active markets. If prices of securities traded on these markets decrease by 10%, with all other factors remaining constant, Net Assets Attributable to Holders of Redeemable Units could fall by approximately $25,554 (December 31, 2014 $16,887). Conversely, if prices increase by 10%, Net Assets Attributable to Holders of Redeemable Units could rise by approximately $25,554 (December 31, 2014 $16,887). These sensitivities are estimates. Actual results may vary and the variance may be significant. Concentration Risk Concentration risk arises as a result of the concentration of exposures within the same category. The following table summarizes the Fund s concentration risk as a percentage of total investments: Market Segment June 30, 2015 December 31, 2014 Foreign Equities Brazil 1.76% Cayman Islands 4.57% 3.02% China 2.77% Denmark 2.12% 2.23% France 11.27% 10.16% Germany 5.21% 1.14% Hong Kong 1.25% 8.40% India 2.78% Ireland 3.13% 3.11% Italy 6.52% 1.02% Japan 14.72% 9.39% Jersey 1.26% 1.93% Luxembourg 1.02% Mexico 0.75% Netherlands 8.16% 7.63% Panama 1.42% South Korea 2.08% 0.87% Spain 3.39% 3.50% Sweden 1.32% 2.07% Switzerland 6.11% 9.91% Taiwan 0.98% United Kingdom 17.05% 19.40% United States 7.34% 9.24% Total 100.00% 100.00% Fair Value Hierarchy The following is a summary of the Fund s use of quoted market prices (Level 1), internal models using observable market information as inputs (Level 2), and internal models without observable market information (Level 3) in the valuation of the Fund s securities. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Total* June 30, 2015 Foreign Equities $ 255,541 $ $ 255,541 Unrealized gain on derivatives 2,137 2,137 Unrealized loss on derivatives (67) (1,467) (1,534) Total $ 255,474 $ 670 $ 256,144 December 31, 2014 Foreign Equities $ 43,789 $ 125,085 $ 168,874 Unrealized gain on derivatives 24 1,145 1,169 Unrealized loss on derivatives (1,592) (1,592) Total $ 43,813 $ 124,638 $ 168,451 *The Fund does not hold any Level 3 investments. For the period from January 1, 2015 to June 30, 2015, equity investments of approximately $53,782 were transferred from Level 2 to Level 1. For the period from January 1, 2014 to December 31, 2014, equity investments of approximately $50,944 were transferred from Level 1 to Level 2. 11

Notes to Financial Statements For the periods ended June 30, 2015 and 2014 1. Name and formation of the Funds ESTABLISHMENT OF THE FUNDS The MD Family of Mutual Funds (individually a Fund and collectively the Funds ) are unincorporated mutual fund trusts formed under the laws of the Province of Ontario pursuant to the Declarations of Trust, and the creation dates areas follows: Series A Units Series I Units Series T Units Private Trust Series MD Balanced Fund September 9, 1992 October 25, 2010 MD Bond Fund April 6, 1988 October 30, 2009 MD Short-Term Bond Fund September 19, 1995 October 30, 2009 MD Dividend Income Fund September 9, 1992 October 30, 2009 October 25, 2010 MD Equity Fund March 1, 1966 October 30, 2009 October 25, 2010 MD Dividend Growth Fund January 4, 2007 October 30, 2009 October 25, 2010 MD International Growth Fund August 9, 2000 October 30, 2009 October 25, 2010 MD International Value Fund January 5, 2004 October 30, 2009 October 25, 2010 MD Money Fund July 12,1983 MD Select Fund October 29, 1993 October 30, 2009 October 25, 2010 MD American Growth Fund September 9, 1992 October 30, 2009 October 25, 2010 MD American Value Fund August 9, 2000 October 30, 2009 October 25, 2010 MD Strategic Yield Fund January 30, 2014 January 30, 2014 MD Strategic Opportunities Fund January 30, 2014 January 30, 2014 MD Precision Conservative Portfolio January 5, 2010 MD Precision Balanced Income Portfolio May 10, 2012 MD Precision Moderate Balanced Portfolio January 5, 2010 MD Precision Moderate Growth Portfolio May 10, 2012 MD Precision Balanced Growth Portfolio January 5, 2010 MD Precision Maximum Growth Portfolio January 5, 2010 MDPIM Canadian Equity Pool June 16, 1999 October 25, 2010 August 9, 2000 MDPIM US Equity Pool August 6, 1999 October 25, 2010 August 9, 2000 MD Growth Investments Limited is a mutual fund corporation incorporated under the laws of Ontario pursuant to the Letters Patent and the Series creation dates are as follows: Series A Series I MD Growth Investments Limited July 18, 1969 October 30, 2009 MD Financial Management Inc. ( the Manager ) is the Manager of the Funds. Prior to June 2, 2010, MD Private Trust was the Manager and Trustee for the MDPIM Canadian Equity Pool and the MDPIM US Equity Pool. The address of the Funds registered office is 1870 Alta Vista Drive, Ottawa, Ontario, Canada, K1G 6R7. Throughout these Notes to the Financial Statements, the shares of MD Growth Investments Limited have been referred to as units to simplify the presentation. These financial statements were authorized for issue by the Manager on August 7, 2015. 1

Notes to Financial Statements For the periods ended June 30, 2015 and 2014 SERIES OF UNITS The MDPIM Canadian Equity Pool and MDPIM US Equity Pool Funds offer Private Trust Series and Series T units which may be purchased by either MD Private Investment Counsel (an operating division of MD Physician Services Inc.) or MD Private Trust Company clients who have appointed MD Private Investment Counsel to provide discretionary portfolio management services and advice to them or MD Private Trust Company to provide trust services. Series A units are closed to new subscribers. Investors holding Series A units of these Funds are allowed to hold their units, as well as subscribe for additional Series A units of the Funds. Each of the MD Funds other than MDPIM Canadian Equity Pool and MDPIM US Equity Pool offer Series A units which are available to all MD Management Ltd. clients who are qualified eligible investors. Series I units were established to support the MD Precision Conservative Portfolio, the MD Precision Moderate Balanced Portfolio, the MD Precision Balanced Growth Portfolio, the MD Precision Maximum Growth Portfolio, the MD Precision Balanced Income Portfolio and the MD Precision Moderate Growth Portfolio. These units are only available to the six Funds listed above, and are not charged management fees. Series T units were established in order to support a new tax-efficient investment solution for clients. The series T units generate steady tax-efficient cash flow that does not increase taxable income or impact certain benefits such as Old Age Security. 2. Basis of presentation and adoption of IFRS These financial statements have been prepared in compliance with International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB). 3. Significant accounting policies CASH Cash is comprised of cash on and demand deposits with financial institutions. They are recorded at cost which represents fair value. FUNCTIONAL AND PRESENTATION CURRENCY The financial statements are presented in Canadian dollars, which is the Funds functional currency. Cash, investments and other assets and liabilities denominated in foreign currencies are translated into Canadian Dollars at the rate of exchange prevailing on each valuation date. Transactions during the year in currencies other than Canadian Dollars are translated into Canadian Dollars at the rate of exchange prevailing on the trade date of the transaction. The difference in the foreign exchange rate between trade date and settlement date of a transaction is recognized in income on the Statement of Comprehensive Income. Foreign exchange gains and losses relating to cash are presented as Gain (Loss) on foreign exchange and those relating to other financial assets and liabilities are presented within net gains or losses on sale of investments or derivatives. All financial information is presented in Canadian dollars and has been rounded to the nearest thousand, unless otherwise stated. FINANCIAL INSTRUMENTS The Funds recognize financial instruments at fair value upon initial recognition. The Funds investments in debt, short-term investments, equity securities and derivatives are classified as financial assets or financial liabilities at fair value through profit or loss (FVTPL). This category has two sub-categories: financial assets and financial liabilities held for trading and those designated at FVTPL at inception. A financial asset or financial liability is classified as held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing in the near term or if on initial recognition is part of a portfolio of identifiable financial investments that are managed together and for which there is evidence of a recent actual pattern of short-term profit taking. The Funds derivatives are also categorized as held for trading. The Funds do not classify any derivatives as hedges in a hedging relationship. Financial assets and financial liabilities designated at FVTPL at inception are financial instruments that are not classified as held for trading but are managed, and their performance is evaluated on a fair value basis in accordance with the Funds investment strategy. All of the Funds investments in debt, short-term investments and equity securities have been designated as FVTPL at inception and are presented on the Statement of Financial Position as Investments. Cash is measured at fair value upon recognition and subsequently at amortized cost. Regular way purchases and sales of financial assets are recognized at their trade date. Transaction costs related to investments and derivatives are expensed as incurred in the Statement of Comprehensive Income. Subsequent to initial recognition, all financial assets and liabilities at FVTPL are measured at fair value. Gains and losses arising from changes in the fair value are presented in the Statement of Comprehensive Income within Change in unrealized appreciation (depreciation) of investments for financial assets and liabilities designated at FVTPL and within Change in unrealized appreciation (depreciation) of derivatives for derivatives in the periods in which they arise. The interest for distribution purposes shown on the Statement of Comprehensive Income represents the coupon interest received by the Funds accounted for on an accrual basis. Dividend income and distributions to unitholders are recorded on the ex-dividend date. Distributions from underlying funds out of interest, foreign income and related withholding taxes, Canadian dividends and net realized capital gains are recognized when declared. Realized gains or losses from investment transactions and the unrealized appreciation or depreciation of investments are computed on an average cost basis, which exclude brokerage commissions and other trading expenses. Brokerage commissions and other trading expenses are charged to income as incurred. Other financial assets and liabilities, such as accrued interest and dividends receivable, accounts receivable for investment transactions, subscriptions receivable, amounts receivable for securities lending transactions, distributions payable, accounts payable for investment transactions and redemptions payable are recognized initially at fair value, net of transaction costs, and subsequently stated at amortized cost using the effective interest rate method. Under this method, financial assets and liabilities reflect the amount required to be received or paid, discounted, when appropriate, at the contracts effective interest rate. The Funds accounting policies for measuring the fair value of their investments and derivatives are identical to those used in measuring the net asset value (NAV) for transactions with unitholders. The Funds obligation for net assets attributable to holders of redeemable units is presented at the redemption amount. 2